# EDGAR Filing Document

**Accession Number:** 0001769624
**File Stem:** 0001213900-26-016753
**Filing Date:** 2026-2
**Character Count:** 246244
**Document Hash:** 1e1851ad246089eef37e2ee8d98e6221
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-016753.hdr.sgml**: 20260217

**ACCESSION NUMBER**: 0001213900-26-016753

**CONFORMED SUBMISSION TYPE**: 10-Q/A

**PUBLIC DOCUMENT COUNT**: 93

**CONFORMED PERIOD OF REPORT**: 20250331

**FILED AS OF DATE**: 20260217

**DATE AS OF CHANGE**: 20260217

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Triller Group Inc.
- **CENTRAL INDEX KEY:** 0001769624
- **STANDARD INDUSTRIAL CLASSIFICATION:** INVESTMENT ADVICE [6282]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38909
- **FILM NUMBER:** 26635931

**BUSINESS ADDRESS:**
- **STREET 1:** 7119 WEST SUNSET BOULEVARD
- **STREET 2:** SUITE 782
- **CITY:** LOS ANGELES
- **STATE:** CA
- **ZIP:** 90046
- **BUSINESS PHONE:** 310-893-5090

**MAIL ADDRESS:**
- **STREET 1:** 7119 WEST SUNSET BOULEVARD
- **STREET 2:** SUITE 782
- **CITY:** LOS ANGELES
- **STATE:** CA
- **ZIP:** 90046

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AGBA Group Holding Ltd.
- **DATE OF NAME CHANGE:** 20221115

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AGBA Acquisition Ltd
- **DATE OF NAME CHANGE:** 20190304

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

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Amendment No. 1 to**

**FORM 10-Q**

(Mark One)

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

**For the quarterly period ended March 31, 2025**

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

**For the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**Commission File No. 001-38909**

---

| |
|:---|
| **Triller Group Inc.** |
| (Exact name of registrant as specified in its charter) |

---

---

| | |
|:---|:---|
| **Delaware** | **33-1473901** |
| (State or other jurisdiction of<br> incorporation or organization) | (I.R.S. Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| **7119 West Sunset Boulevard, Suite 782**<br> **Los Angeles, CA** | **90046** |
| (Address of Principal Executive Offices) | (Zip Code) |

---

---

| |
|:---|
| **(310) 893-5090** |
| (Registrant's telephone number, including area code) |

---

  <br> (Former name, former address and former fiscal year, if changed since last report)

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 ☒

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 Stocks, $0.001 par value | ILLR | NASDAQ Capital Market |
| Warrants, each warrant exercisable for one-quarter of one share of Common Stock for $23.00 per full share | ILLRW | NASDAQ Capital Market |

---

As of January 27, 2026, there were 197,266,991 shares of common stock issued and outstanding.

**EXPLANATORY NOTE**

Triller Group, Inc. ("ILLR" or the "Company") is filing this Amendment No. 1 on Form 10-Q/A ("Amended 10-Q") which supersedes and replaces in its entirety the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on January 26, 2026 ("Original Filing").

This Amended 10-Q is being filed to correct certain errors and to address omissions identified in the financial statements and related disclosures contained in the Original Filing

Except as described above, no other changes have been made to the Form 10-Q as originally filed on January 26, 2026. This Amendment does not reflect events occurring after the date of the original filing and does not modify or update any other disclosures contained therein.

**Triller Group Inc.** 

**Quarterly Report on Form 10-Q**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| **[PART I – FINANCIAL INFORMATION](#a_001)** | **[PART I – FINANCIAL INFORMATION](#a_001)** |  |
| Item 1. | [Financial Statements](#a_002) | 1 |
|  | [Unaudited Condensed Consolidated Balance Sheets](#a_003) | 1 |
|  | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss](#a_004) | 2 |
|  | [Unaudited Condensed Consolidated Statements of Changes in Stockholders' Deficit](#a_005) | 3 |
|  | [Unaudited Condensed Consolidated Statements of Cash Flows](#a_006) | 5 |
|  | [Notes to Unaudited Condensed Consolidated Financial Statements](#a_007) | 6 |
| Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_008) | 49 |
| Item 3. | [Quantitative and Qualitative Disclosures about Market Risk](#a_009) | 61 |
| Item 4. | [Control and Procedures](#a_010) | 61 |
| **[PART II – OTHER INFORMATION](#a_011)** | **[PART II – OTHER INFORMATION](#a_011)** |  |
| Item 1. | [Legal Proceedings](#a_012) | 62 |
| Item 1A. | [Risk Factors](#a_013) | 65 |
| Item 2. | [Unregistered Sales of Equity Securities and Use of Proceeds](#a_014) | 66 |
| Item 3. | [Defaults Upon Senior Securities](#a_015) | 66 |
| Item 4. | [Mine Safety Disclosures](#a_016) | 66 |
| Item 5. | [Other Information](#a_017) | 66 |
| Item 6. | [Exhibits](#a_018) | 66 |
| **[SIGNATURES](#a_019)** | **[SIGNATURES](#a_019)** | 67 |

---

i

**PART I – FINANCIAL INFORMATION**

**ITEM 1. FINANCIAL STATEMENTS**

**TRILLER GROUP INC. AND ITS SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS**

**(Currency expressed in thousands of United States Dollars, except for number of shares)**

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31,<br> 2025** | **December 31, 2024** |
|  | **(Unaudited)** | **(Audited)** |
| **ASSETS** | | |
| Current assets: |  |  |
| Cash and cash equivalents | $2130 | $3065 |
| Restricted cash | 12793 | 14196 |
| Accounts receivable, net | 1131 | 2873 |
| Loans and notes receivables, net | 111 | 92 |
| Deposit, prepayments, and other receivables, net | 1652 | 1860 |
| Assets held for sale | 469 | 2003 |
| Total current assets | 18286 | 24089 |
| Non-current assets: |  |  |
| Loans receivables, net | 1013 | 1034 |
| Property and equipment, net |  |  |
| Long-term investments, net | 25624 | 24930 |
| Long-term investments, net, related party | 525 | 525 |
| Total non-current assets | 27162 | 26489 |
| **TOTAL ASSETS** | $45448 | $50578 |
| **LIABILITIES AND STOCKHOLDERS' DEFICIT** |  |  |
| Current liabilities: |  |  |
| Accounts payable and other current liabilities | $154926 | $149901 |
| Other current liabilities, related parties | 1821 | 1251 |
| Escrow liabilities | 12793 | 14196 |
| Borrowings | 11639 | 12707 |
| Borrowings, related parties | 41422 | 29181 |
| Convertible debts, net | 33967 | 32552 |
| Convertible debts, related party | 53106 | 53106 |
| Income tax payable | 26 |  |
| Warrant liabilities | 977 | 977 |
| Operating lease liabilities, current | 1888 | 1867 |
| Total current liabilities | 312565 | 295738 |
| Non-current liabilities: |  |  |
| Operating lease liabilities, non-current | 324 | 807 |
| Total non-current liabilities | 324 | 807 |
| **TOTAL LIABILITIES** | 312889 | 296545 |
| Commitments and contingencies (Note 16) |  |  |
| Stockholders' deficit: |  |  |
| Preferred stock, $0.001 par value, 100,000,000 shares authorized |  |  |
| Series A-1 preferred stock, $0.001 par value, 50,000,000 shares authorized, 11,801,804 and 11,801,804 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively | 12 | 12 |
| Series B preferred stock, $0.001 par value, 50,000,000 shares authorized, 30,851 and 30,851 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively | —<br> \* |  |
| Common stock, $0.001 par value; 150,000,000,000 shares authorized, 153,265,343 and 138,143,817 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively | 153 | 138 |
| Series A-1 preferred stock to be issued |  | 12 |
| Common stock to be issued | 15 | 15 |
| Common stock held in escrow | 22 | 24 |
| Additional paid-in capital | 989533 | 958017 |
| Accumulated other comprehensive loss | (487) | (548) |
| Accumulated deficit | (1256689) | (1203637) |
| Total stockholders' deficit | (267441) | (245967) |
| **TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT** | $45448 | $50578 |

---

\* Less than $1,000

See accompanying notes to unaudited condensed consolidated financial statements.

**TRILLER GROUP INC. AND ITS SUBSIDIARIES**

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

**(Currency expressed in thousands of United States Dollars, except for number of shares)**

---

| | | |
|:---|:---|:---|
|  | **Three months ended<br> March 31,** | **Three months ended<br> March 31,** |
|  | **2025** | **2024** |
| **Revenues** |  |  |
| Loan interest income | $18 | $41 |
| Commissions | 4416 | 6723 |
| Recurring asset management service fees | 347 | 650 |
| Recurring asset management service fees, related parties |  | 242 |
| Total revenues | 4781 | 7656 |
| Operating expenses: |  |  |
| Commission expense | (2521) | (4446) |
| Sales and marketing expense |  | (483) |
| Research and development expense | (1702) | (458) |
| Personal and benefit expense | (34964) | (6059) |
| Legal and professional fee | (5838) | (625) |
| Legal and professional fee, related party |  | (250) |
| Office and operating fee, related party | (1178) | (1118) |
| Provision for allowance for expected credit losses | (47) | (991) |
| Other general and administrative expenses | (2733) | (880) |
| Total operating expenses | (48983) | (15310) |
| **Loss from operations** | (44202) | (7654) |
| Other income (expense) |  |  |
| Interest income | 167 | 12 |
| Interest expense | (4803) | (207) |
| Foreign exchange gain (loss), net | 1145 | (227) |
| Bad debts written-off | (5441) |  |
| Investment loss, net |  | (37) |
| Sundry income | 106 | 91 |
| Total other expenses, net | (8826) | (368) |
| **Loss before income tax expense** | (53028) | (8022) |
| Income tax expense | (24) | (38) |
| **Net loss** | (53052) | (8060) |
| Comprehensive loss |  |  |
| Net loss | $(53052) | $(8060) |
| Other comprehensive loss |  |  |
| Foreign currency translation adjustment | 61 | 191 |
| **Comprehensive loss** | $(52991) | $(7869) |
| Weighted average number of common stock outstanding<sup>#</sup> |  |  |
| - Basic and diluted | 165497103 | 33942768 |
| Net loss per share<sup>#</sup> |  |  |
| - Basic and diluted | $(0.32) | $(0.24) |

---

# Giving retroactive effect to the forward stock split and reverse stock split occurred in 2024. (see Note 13)

See accompanying notes to unaudited condensed consolidated financial statements.

**TRILLER GROUP INC. AND ITS SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES**

**IN STOCKHOLDERS' DEFICIT\***

**(Currency expressed in thousands of United States Dollars, except for number of shares)**

---

| | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the three months ended March 31, 2025** | **For the three months ended March 31, 2025** | **For the three months ended March 31, 2025** | **For the three months ended March 31, 2025** | **For the three months ended March 31, 2025** | **For the three months ended March 31, 2025** | **For the three months ended March 31, 2025** | **For the three months ended March 31, 2025** | **For the three months ended March 31, 2025** | **For the three months ended March 31, 2025** | **For the three months ended March 31, 2025** | **For the three months ended March 31, 2025** | **For the three months ended March 31, 2025** | **For the three months ended March 31, 2025** | **For the three months ended March 31, 2025** | **For the three months ended March 31, 2025** | **For the three months ended March 31, 2025** |
|  | | **Series A-1<br> preferred<br> stock** | **Series A-1<br> preferred<br> stock** | **Series B<br> preferred <br> stock** | **Series B<br> preferred <br> stock** | **Common <br> stock** | **Common <br> stock** | **Series A-1 <br> preferred<br> stock<br> to be issued** | **Series A-1 <br> preferred<br> stock<br> to be issued** | **Common <br> stock to be<br> issued** | **Common <br> stock to be<br> issued** | **Common stock held in escrow** | **Common stock held in escrow** | | | | |
|  | <br>**Note** | **No. of<br> share** | **Amount** | **No. of<br> share** | **Amount** | **No. of<br> share<sup>#</sup>** | **Amount** | **No. of<br> share** | **Amount** | **No. of<br> share<sup>#</sup>** | **Amount** | **No. of<br> share** | **Amount** |<br>**Additional<br> paid-in<br> capital** | **Accumulated**<br>**other<br> comprehensive<br> loss** |<br>**Accumulated<br> deficit** |<br>**Total<br> **stockholders'<br> deficit** |
| Balance as of January 1, 2025 |  | 11801804 | $12 | 30851 | $—<br> \* | 138143817 | $138 | 11801804 | $12 | 15022711 | $15 | 24022431 | $24 | $958017 | $(548) | $(1203637) | $(245967) |
| Settlement of payables with common stock held in escrow | (14)(a)(i), (e) |  |  |  |  | 2043962 | 2 |  |  |  |  | (2043962) | (2) |  |  |  |  |
| Issuance of common stock for repayment of borrowings, related party | (14)(a)(ii) |  |  |  |  | 155000 |  |  |  |  |  |  |  | 554 |  |  | 554 |
| Stock-based compensation to consultants | (14)(a)(iii) |  |  |  |  | 348745 |  |  |  |  |  |  |  | 2087 |  |  | 2087 |
| Stock-based compensation to directors, officers, and employees | (14)(a)(iv) & (v) |  |  |  |  | 766487 | 1 |  |  |  |  |  |  | 28875 |  |  | 28876 |
| Settlement of Series A-1 preferred stock to be issued in related to merger transaction | (14)(a)(vi), (c) |  |  |  |  | 11807332 | 12 | (11801804) | (12) |  |  |  |  |  |  |  |  |
| Foreign currency translation adjustment |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 61 |  | 61 |
| Net loss for the period |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (53052) | (53052) |
| Balance as March 31, 2025 |  | 11801804 | $12 | 30851 | $—<br> \* | 153265343 | $153 |  | $— | 15022711 | $15 | 21978469 | $22 | $989533 | $(487) | $(1256689) | $(267441) |

---

\* Less than $1,000

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the three months ended March 31, 2024** | **For the three months ended March 31, 2024** | **For the three months ended March 31, 2024** | **For the three months ended March 31, 2024** | **For the three months ended March 31, 2024** | **For the three months ended March 31, 2024** | **For the three months ended March 31, 2024** | **For the three months ended March 31, 2024** |
|  | **Common stock** | **Common stock** | **Common stock to be issued** | **Common stock to be issued** | | | | |
|  | **No. of <br> shares<sup>#</sup>** | **Amount** | **No. of <br> Shares<sup>#</sup>** | **Amount** |<br>**Additional<br> paid-in <br> capital** | **Accumulated**<br>**other<br> comprehensive<br> loss** |<br>**Accumulated<br> deficit** |<br>**Total<br> stockholders'<br> equity** |
| Balance as of January 1, 2024 | 33240990 | $33 | 2350080 | $2 | $74142 | $(473) | $(65601) | $8103 |
| Issuance of common stocks to management team | 210829 |  | (210829) |  |  |  |  |  |
| Issuance of common stock to settle finder fee | 484125 | 1 |  |  | 402 |  |  | 403 |
| Stock-based compensation | 2078772 | 2 | 436148 |  | 2105 |  |  | 2107 |
| Foreign currency translation adjustment |  |  |  |  |  | 191 |  | 191 |
| Net loss for the period |  |  |  |  |  |  | (8060) | (8060) |
| Balance as of March 31, 2024 | 36014716 | $36 | 2575399 | $2 | $76649 | $(282) | $(73661) | $2744 |

---

# Giving retroactive effect to the forward stock split and reverse stock split occurred in 2024 (see Note 13).

See accompanying notes to unaudited condensed consolidated financial statements.

**TRILLER GROUP INC. AND ITS SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Currency expressed in thousands of United States Dollars, except for number of shares)**

---

| | | |
|:---|:---|:---|
|  | **For the three months ended<br> March 31,** | **For the three months ended<br> March 31,** |
|  | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| Net loss | $(53052) | $(8060) |
| Adjustments to reconcile net loss to net cash used in operating activities |  |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | 28750 | 1748 |
| &nbsp;&nbsp;&nbsp;Marketing expenses | 513 |  |
| &nbsp;&nbsp;&nbsp;Lease expense |  | 642 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization |  | 23 |
| &nbsp;&nbsp;&nbsp;Interest income | (167) | (11) |
| &nbsp;&nbsp;&nbsp;Interest expense on borrowings | 4803 | 207 |
| &nbsp;&nbsp;&nbsp;Foreign exchange (gain) loss, net | (1145) | 227 |
| &nbsp;&nbsp;&nbsp;Bad debts written-off | 5441 |  |
| &nbsp;&nbsp;&nbsp;Investment loss, net |  | 37 |
| &nbsp;&nbsp;&nbsp;Allowance for expected credit losses | 47 | 991 |
| &nbsp;&nbsp;&nbsp;Gain on disposal of property and equipment | (68) | (15) |
| Change in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable | (1520) | 1180 |
| &nbsp;&nbsp;&nbsp;Loans receivable | (1330) | (17) |
| &nbsp;&nbsp;&nbsp;Deposits, prepayments, and other receivables | (183) | (245) |
| &nbsp;&nbsp;&nbsp;Accounts payable and other current liabilities | 3003 | (1661) |
| &nbsp;&nbsp;&nbsp;Other current liabilities, related parties | 570 |  |
| &nbsp;&nbsp;&nbsp;Escrow liabilities | (1404) | (1228) |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | (462) | (485) |
| &nbsp;&nbsp;&nbsp;Income tax payable | 26 | (190) |
| Net cash used in operating activities | (16178) | (6857) |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of long-term investments |  | 2152 |
| &nbsp;&nbsp;&nbsp;Proceeds from disposal of assets held for sale | 1527 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from disposal of property and equipment |  | 15 |
| Net cash provided by investing activities | 1527 | 2167 |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from borrowings, related parties | 11728 |  |
| &nbsp;&nbsp;&nbsp;Advances from the stockholder |  | 3501 |
| Net cash provided by financing activities | 11728 | 3501 |
| Effect on exchange rate change on cash, cash equivalents and restricted cash | 585 | 239 |
| **Net change in cash, cash equivalent and restricted cash** | (2338) | (950) |
| **Beginning of period** | 17261 | 18678 |
| **End of period** | $14923 | $17728 |
| **Supplemental cash flow information:** |  |  |
| Cash paid for income taxes | $— | $227 |
| Cash received from interest | $— | $1 |
| Cash paid for interest | $— | $65 |
| **Supplemental disclosure of non-cash investing and financing activities:** |  |  |
| Issuance of common stocks to settle payables | $— | $403 |

---

See accompanying notes to unaudited condensed consolidated financial statements.

**TRILLER GROUP INC. AND ITS SUBSIDIARIES**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024**

**(Currency expressed in thousands of United States Dollars, except for number of shares)**

**NOTE 1 — DESCRIPTION OF BUSINESS** 

Triller Group Inc. ("ILLR", "Triller", or the "Company") was formed in the State of Delaware on October 15, 2024, to domicile the Company's legal jurisdiction from British Virgin Islands to the State of Delaware. ILLR and its subsidiaries are hereinafter referred to as the "Company".

The Company currently operates a global, artificial intelligence ("AI") powered technology platform ("Technology Platform") that serves a broad constituency of creators and brands around the world. "Creators" include influencers, artists, athletes and public figures that utilize Triller's Technology Platform to create and publish content. "Brands" are companies, products or product lines which are active on Triller's Technology Platform and utilize or have utilized one or more of Triller's products or services offered through Triller's Technology Platform, or companies, products or product lines whose associated data Triller tracks, report on and make available to Triller's clients as part of one or more of Triller's product offerings.

Also, the Company remains the operation of a wealth and health platform which offers a wide range of financial service and products, covering life insurance, pensions, property-casualty insurance, stock brokerage, mutual funds and lending businesses in Hong Kong.

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

These accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying unaudited condensed consolidated financial statements and notes.

● Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Company are presented in United State dollars ("US$" or "$") and have been prepared in accordance with accounting principles generally accepted in the United States of America("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Regulation S-X of the Securities Exchange Commission. Certain information and footnote disclosures normally included in consolidated financial statements have been omitted pursuant to such rules and regulations. The consolidated balance sheet as of December 31, 2024 derived from the audited consolidated financial statements at that date, but does not include all the information and footnotes required by U.S. GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as filed on January 26, 2026.

The unaudited condensed consolidated financial statements as of March 31, 2025 and for the three months ended March 31, 2025, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company's financial condition, results of operations and cash flows. The results of operations for the three months ended March 31, 2025 are not necessarily indicative of the results to be expected for any other interim period or for the entire year.

● Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements include the unaudited financial statements of the Company and its subsidiaries. A subsidiary is an entity (including a structured entity), directly or indirectly, controlled by the Company. The unaudited condensed consolidated financial statements of the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies. All intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation.

● Use of Estimates and Assumptions

The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company's unaudited condensed consolidated financial statements include the useful lives of property and equipment, impairment of long-lived assets, allowance for expected credit losses, stock-based compensation, fair value measurement of convertible debts, warrant liabilities, provision for contingent liabilities, revenue recognition, income tax provision, deferred taxes and uncertain tax position.

The inputs into the management's judgments and estimates consider the geopolitical tension, inflationary and high interest rate environment and other macroeconomic factors on the Company's critical and significant accounting estimates. Actual results could differ from these estimates.

● Foreign Currency Translation and Transaction

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the condensed consolidated statements of operations and comprehensive loss.

The reporting currency of the Company is US$ and the accompanying unaudited condensed consolidated financial statements have been expressed in US$. In addition, some of the Company's subsidiaries are operating in Hong Kong, which maintain their books and record in their local currency, Hong Kong dollars ("HK$"), which is a functional currency as being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with Accounting Standards Codification ("ASC") Topic 830-30, *Translation of Financial Statement*, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive loss within the condensed consolidated statements of changes in stockholders' (deficit) equity.

Translation of amounts from HK$ into US$ has been made at the following exchange rates for the three months ended March 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **March 31,** | **March 31,** |
|  | **2025** | **2024** |
| Period-end HK$:US$ exchange rate | 0.1285 | 0.1278 |
| Period average HK$:US$ exchange rate | 0.1285 | 0.1279 |

---

● Segment Reporting

ASC Topic 280, *Segment Reporting*, establishes standards for reporting information about operating segments on a basis consistent with the Company's internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company's business segments.

The Company uses the management approach to determine reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker ("CODM") for making decisions, allocating resources and assessing performance. The Company's CODM has been identified as the Chief Executive Officer ("CEO"), who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. Based on management's assessment, the Company determined that it has three reportable segments, which are Social Media, Sports streaming and Financial Services during the three months ended March 31, 2025.

● Cash and Cash Equivalents

Cash and cash equivalents consist primarily of cash in readily available checking and saving accounts. They consist of highly liquid investments that are readily convertible to cash and that mature within three months or less from the date of purchase. The carrying amounts approximate fair value due to the short maturities of these instruments. The Company maintains most of its bank accounts in the United States of America and Hong Kong. Hong Kong is not protected by Federal Deposit Insurance Corporation ("FDIC") insurance. However, management does not believe there is a significant risk of loss.

● Restricted Cash

Restricted cash consists of funds held in escrow accounts reflecting the restricted cash and cash equivalents maintained in certain bank accounts that are held for the exclusive interest of the Company's customers. The Company currently acts as a custodian to manage the assets and investment portfolio on behalf of its customers under the terms of certain contractual agreements, which the Company does not have the right to use for any purposes, other than managing the portfolio.

The Company restricts the use of the assets underlying the funds held in escrow to meet with regulatory or contractual requirements and classifies the assets as current based on their purpose and availability to fulfill its direct obligation under current liabilities.

● Accounts Receivable, net

Accounts receivable, net are recorded at the invoiced amount less any allowance for expected credit losses to reserve for potentially uncollectible receivables, which do not bear interest, which are due within contractual payment terms.

The Company's payment terms of accounts receivable vary by the types of services offered. The normal settlement terms of accounts receivable from insurance companies in the provision of brokerage agency services and customers for advertising services, are within 30 days up on the execution of the insurance policies and advertising campaigns. Credit terms with the products providers of investment, unit and mutual funds and asset portfolio are mainly 90 days or a credit period mutually agreed between the contracting parties.

For certain services and customers, the Company requires payment before services are delivered to the customers. Changes in the allowance for expected credit losses are recorded in general and administrative expense in the condensed consolidated statement of operations and comprehensive loss. To determine the amount of the allowance, the Company estimates all expected credits losses based on historical experience, current conditions and reasonable and supportable forecasts.

The Company seeks to maintain strict control over its outstanding receivables to minimize credit risk. Overdue balances are reviewed regularly by senior management. Management reviews its receivables on a regular basis to determine if the allowance for expected credit losses is adequate and provides allowance when necessary.

The Company does not hold any collateral or other credit enhancements over its accounts receivable balances.

● Loans and Notes Receivable, net

Loans receivable, net are related to residential mortgage loans that are carried at unpaid principal balances, less the allowance for expected credit losses on loans receivable and charge-offs.

Loans are placed on nonaccrual status when they are past due 180 days or more as to contractual obligations or when other circumstances indicate that collection is not probable. When a loan is placed on nonaccrual status, any interest accrued but not received is reversed against interest income. Payments received on a nonaccrual loan are either applied to protective advances, the outstanding principal balance or recorded as interest income, depending on an assessment of the ability to collect the loan. A nonaccrual loan may be restored to accrual status when principal and interest payments have been brought current and the loan has performed in accordance with its contractual terms for a reasonable period (generally six months).

If the Company determines that a loan is impaired, the Company next determines the amount of the impairment. The amount of impairment on collateral dependent loans is charged off within the given fiscal quarter. Generally the amount of the loan and negative escrow in excess of the appraised value less estimated selling costs, for the fair value of collateral valuation method, is charged off. For all other loans, impairment is measured as described below in "Allowance for Expected Credit Losses on Financial Instruments".

● Allowance for Expected Credit Losses

In accordance with ASC Topic 326, *"Credit Losses – Measurement of Credit Losses on Financial Instruments"* ("ASC Topic 326"), the Company utilizes the current expected credit losses ("CECL") model to determine an allowance that reflects its best estimate of the lifetime expected credit losses on accounts receivable, loans receivable, notes receivable, and deposits, prepayments and others receivable which is recorded as a liability to offset the receivables. The CECL model is prepared after considering historical experience, current conditions, and reasonable and supportable economic forecasts to estimate lifetime expected credit losses. Accounts receivable, loans and notes receivable, and deposits, prepayments, and others receivable are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded as a reduction of bad debt expense.

For the three months ended March 31, 2025 and 2024, the provision for allowance for expected credit losses on accounts receivable, loans receivable, notes receivable, deposits and other receivables were approximately $0.05 million and $1.0 million, respectively.

● Asset Held For Sale

The Company classifies long-lived assets as held for sale in the period in which the criteria are met, in accordance with ASC 360, Property and Equipment. The Company ceases depreciation on long-lived assets (or disposal groups) classified as held for sale and measures them at the lower of carrying value or estimated fair value less cost to sell.

As of March 31, 2025, the carrying value of a premise was approximately $0.5 million and recorded as assets held for sale in the consolidated balance sheets. This asset was subsequently sold in August 2025.

● Long-Term Investments, net

The Company invests in equity securities with readily determinable fair values and equity securities that do not have readily determinable fair values.

Equity securities with readily determinable fair values are carried at fair value with any unrealized gains or losses reported in earnings.

Equity securities that do not have readily determinable fair values mainly consist of investments in privately-held companies. They are stated at cost less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer.

At each reporting period, the Company makes a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired.

● Property and Equipment, net

Property and equipment, net are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values, if any:

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| | |
|:---|:---|
|  | **Expected useful life** |
| Building | Shorter of 50 years or lease term |
| Leasehold improvement | 3 years |
| Furniture, fixtures and equipment | 3 to 5 years |
| Computer equipment | 3 years |
| Motor vehicles | 3 years |

---

Expenditures for repairs and maintenance are expensed as incurred. When assets have been retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations.

Property and equipment are reviewed for impairment whenever facts and circumstances indicate that the carrying value may not be recoverable. When required, impairment losses on assets to be held and used are recognized based on the fair value of the asset. The fair value is determined based on estimates of future cash flows, market value of similar assets, if available, or independent appraisals, if required. If the carrying amount of the long- lived asset is not recoverable from its undiscounted cash flows, an impairment loss is recognized for the difference between the carrying amount and fair value of the asset. When fair values are not available, the Company estimates fair value using the expected future cash flows discounted at a rate commensurate with the risk associated with the recovery of the assets.

● Impairment of Long-Lived Assets

In accordance with the provisions of ASC Topic360, Impairment or Disposal of Long-Lived Assets, all long-lived assets such as property and equipment owned and held by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of an asset to its estimated future undiscounted cashflows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets. No impairment losses were recognized for the three months ended March 31, 2025 and 2024.

● Convertible Debts, net

The Company accounts for certain convertible debts, net in accordance with ASC Topic 470-20, "*Debt with Conversion and Other Options*" ("ASC 470-20"), whereby the convertible instrument is initially accounted for as a single unit of account, unless it contains a derivative that must be bifurcated from the host contract in accordance with ASC Topic 815-15, "*Derivatives and Hedging – Embedded Derivatives*" or the substantial premium model in ASC 470-20 applies. Where the substantial premium model applies, the premium is recorded in additional paid -in capital. The resulting debt discount is amortized over the period during which the convertible debts is expected to be outstanding as additional non-cash interest expenses.

Certain of the Company's convertible debts are accounted for under the fair value option election in ASC 825 due to difference in its features. Under the fair value option election, the financial instrument is initially measured at its issue-date estimated fair value and subsequently remeasured at estimated fair value on a recurring basis at each reporting period date. The estimated fair value adjustment is presented within other income (expense) in the condensed consolidated statements of operations and comprehensive loss. The Company classifies its convertible debts that are being valued under the fair value option election as Level 3 due to the lack of relevant observable market data over fair value inputs, such as the probability weighting of the various scenarios that can impact settlement of the arrangement.

● Warrants

The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant's specific terms and applicable authoritative guidance in ASC Topic 480, *Distinguishing Liabilities from Equity* ("ASC 480") and ASC Topic 815, *Derivatives and Hedging* ("ASC 815"). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company's own common stock and whether the warrant holders could potentially require "net cash settlement" in a circumstance outside of the Company's control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

*<u>Equity-classified</u>*

For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of equity at the time of issuance. Warrants classified as equity instruments are initially recognized at fair value and are not subsequently remeasured. The Company accounts for its (i) Public Warrants and (ii) Replacement Warrants of Triller Group Warrants as equity.

*<u>Liability-classified</u>*

For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded as liabilities at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the condensed consolidated statements of operations and comprehensive loss. The Company accounts for its (i) SPAC Private Warrants, (ii) Common Warrants, and (iii) Warrants – Class A of Triller Group warrants as liabilities.

Warrants classified as liabilities are recorded at fair value and are remeasured at each reporting date until settlement. Changes in fair value is recognized as a component of change in fair value of warrant liability in the condensed consolidated statements of operations and comprehensive loss. Transaction costs allocated to warrants that are presented as a liability are immediately expensed in the condensed consolidated statements of operations and comprehensive loss.

● Revenue Recognition

The Company receives most of its non-interest income from contracts with customers, which are accounted for in accordance with Accounting Standards Update ("ASU") No. 2014-09, *Revenue from Contracts with Customers (Topic 606)* ("ASC Topic 606").

ASC Topic 606 provided the following overview of how revenue is recognized from the Company's contracts with customers: The Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

Step 1: Identify the contract(s) with a customer.

Step 2: Identify the performance obligations in the contract.

Step 3: Determine the transaction price – The transaction price is the amount of consideration in a contract to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer.

Step 4: Allocate the transaction price to the performance obligations in the contract – Any entity typically allocates the transaction price to each performance obligation on the basis of the relative standalone selling prices of each distinct good or service promised in the contract.

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation – An entity recognizes revenue when (or as) it satisfies a performance obligation by transferring a promised good or service to a customer (which is when the customer obtains control of that good or service). The amount of revenue recognized is the amount allocated to the satisfied performance obligation. A performance obligation may be satisfied at a point in time (typically for promises to transfer goods to a customer) or over time (typically for promises to transfer service to a customer).

Certain portion of the Company's income is derived from contracts with customers, and as such, the revenue recognized depicts the transfer of promised goods or services to its customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company considers the terms of the contract and all relevant facts and circumstances when applying this guidance. The Company's revenue recognition policies are in compliance with ASC Topic 606, as follows:

*(a)* *Social Media and Sports Streaming* 

&nbsp;&nbsp;&nbsp;&nbsp;**(i)** **Advertising Revenue:** The Company's technology platform provides brands a variety of advertising
 services including AI-powered conversations and the augmentation and execution of advertising
 campaigns. Advertising revenue is generated from advertisements, either displayed on a device-specific
 application, browser or as part of an event. Brand sponsorship revenue is generally recognized
 as advertisements are viewed, if on a device-specific application or browser or when events
 occur with participation of the sponsor. Revenue from brand sponsorship agreements for which
 consideration is a fixed fee is allocated evenly to each event in a series of events over
 the applicable contractual service period as the advertisements are displayed, which is typically
 over a period of less than one year.

&nbsp;&nbsp;&nbsp;&nbsp;**(ii)** **Subscription Fees:** The Company's technology platform provides streaming services that acquires
 content licensing from various sport and entertainment franchises to provide a content rich
 environment for both subscription based and pay-per-view consumption both across a variety
 of platforms including mobile phones, tablets, PCs, streaming devices, set-top-boxes and
 connected TVs. Subscriptions for streaming services are through third party streaming service
 providers, examples include All Elite Wrestling ("AEW") in the case of Triller
 TV. Revenue from streaming subscriptions is recognized ratably over the life of a subscription.

&nbsp;&nbsp;&nbsp;&nbsp;**(iii)** **Pay-per-view Fees:** Unlike subscription fees, the Company's technology platform, via its streaming
 service provides pay-per-view services for premium content and events. Revenue from streaming
 pay-per-view events is recognized at the time the event airs.

&nbsp;&nbsp;&nbsp;&nbsp;**(iv)** **SaaS Fees:** The Company's technology platform provides data, analytics and other marketing
 services to brands and advertising agencies with access to a data base of profiled Brands
 and Creators and their associated audiences, giving them the ability to enlist Creators to
 develop and share captivating stories to market their products and services. SaaS platform
 provides customers a detailed dashboard to measure all creator driven marketing campaigns
 as well as a marketplace allowing e-commerce brands to automate the process of on-boarding
 creators with per-transaction incentives for enabling e-commerce transactions. Revenue from
 SaaS platform subscriptions is recognized ratably over the life of a subscription.

In arrangements where another party is involved in providing specified services to a customer, such as a distributor of the Company's content for subscription and pay-per-view programming, the Company evaluates whether the Company is the principal or agent in the arrangement. In this evaluation, the Company considers if the Company obtains control of the specified goods or services before they are transferred to the customer, as well as other indicators such as the party primarily responsible for fulfillment and discretion in establishing price. For revenue arrangements where the Company is not the principal, the Company recognizes revenue on a net basis. The Company has revenue-share arrangements where the Company is the principal, such as serving as the provider of content for subscription and pay-per-view programming. Costs associated with revenue-share arrangements are recognized as part of expenses. The Company determined that it was the principal for all subscription and pay-per-view arrangements and no revenue was recognized on an agent net basis for the period presented.

The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within operating expense for social media and streaming platform in the condensed consolidated statements of operations and comprehensive loss.

*(b)* *Financial Services* 

&nbsp;&nbsp;&nbsp;&nbsp;**(i)** **Commissions:** The Company earns commissions from the sale of investment products to customers, who are
 insurance companies and fund houses. The Company enters into commission agreements with customers
 which specify the key terms and conditions of the arrangement. Commissions are separately
 negotiated for each transaction and generally do not include rights of return, credits or
 discounts, rebates, price protection or other similar privileges, and typically paid on or
 shortly after the transaction is completed. Upon the purchase of an investment product by
 customer, the Company earns a commission from customers, calculated as a fixed percentage
 of the investment products acquired by its customers. The Company defines the "purchase
 of an investment product" for its revenue recognition purpose as the time when the
 customers referred by the Company has entered into a subscription contract with the relevant
 product provider and, if required, the customer has transferred a deposit to an escrow account
 designated by the Company to complete the purchase of the investment products. After the
 contract is established, there are no significant judgments made when determining the commission
 price. Therefore, commissions are recorded at point in time when the investment product is
 purchased.

---

| |
|:---|
| The Company also facilitates the arrangement between insurance providers and individuals or businesses by providing insurance placement services to the insured and is compensated in the form of commission from the respective insurance providers. The Company primarily facilitates the placement of life, general and MPF insurance products. The Company determines that insurance providers are the customers. |
| The Company primarily earns commission income arising from the facilitation of the placement of an effective insurance policy, which is recognized at a point in time when the performance obligation has been satisfied upon execution of the insurance policy as the Company has no future or ongoing obligation with respect to such policies. The commission fee rate, which is paid by the insurance providers, based on the terms specified in the service contract which are agreed between the Company and insurance providers for each insurance product being facilitated through the Company. The commission earned is equal to a percentage of the premium paid to the insurance provider. Commission from renewed policies is variable consideration and is recognized in subsequent periods when the uncertainty around variable consideration is subsequently resolved (e.g., when customer renews the policy). |
| In accordance with ASC Topic 606, *Revenue Recognition: Principal Agent Considerations*, the Company evaluates the terms in the agreements with its channels and independent contractors to determine whether or not the Company acts as the principal or as an agent in the arrangement with each party respectively. The determination of whether to record the revenue in a gross or net basis depends upon whether the Company has control over the services prior to transferring it. Control is demonstrated by the Company which is primarily responsible for fulfilling the provision of placement services through the Company's licensed insurance brokers to provide agency services. The commissions from insurance providers are recorded on a gross basis and commission paid to independent contractors or channel costs are recorded as commission expense in the condensed consolidated statements of operations and comprehensive loss. |

---

The Company also offers the sale solicitation of real estate property to the final customers and is compensated in the form of commissions from the corresponding property developers pursuant to the service contracts. Commission income is recognized at a point of time upon the sale contracts of real estate property is signed and executed.

&nbsp;&nbsp;&nbsp;&nbsp;**(ii)** **Recurring Asset Management Service Fees:** The Company provides asset management services to investment
 funds or investment product providers in exchange for recurring asset management service
 fees. Recurring asset management service fees are determined based on the types of investment
 products the Company distributes and are calculated as a fixed percentage of the fair value
 of the total investment of the investment products, calculated daily. These customer contracts
 require the Company to provide investment management services, which represents a performance
 obligation that the Company satisfies over time. After the contract is established, there
 are no significant judgments made when determining the transaction price. As the Company
 provides these services throughout the contract term, for the method of calculating recurring
 asset management service fees, revenue is calculated on a daily basis over the contract term,
 quarterly billed and recognized. Recurring service agreements do not include rights of return,
 credits or discounts, rebates, price protection, performance component or other similar privileges
 and the circumstances under which the fixed percentage fees, before determined, could be
 not subject to clawback. Payment of recurring asset management service fees are normally
 on a regular basis (typically monthly or quarterly).

&nbsp;&nbsp;&nbsp;&nbsp;**(iii)** **Loan Interest Income:** The Company offers money lending services from loan origination in form
 of mortgage and personal loans. Interest income is recognized monthly in accordance with
 their contractual terms and recorded as interest income in the condensed consolidated statement
 of operations. The Company does not charge prepayment penalties from its customers. Interest
 income on mortgage and personal loans is recognized as it accrued using the effective interest
 method. Accrual of interest income on mortgage loans is suspended at the earlier of the time
 at which collection of an account becomes doubtful or the account becomes 180 days delinquent.

*<u>Disaggregation of Revenue</u>*

The Company has disaggregated its revenue from contracts with customers into categories based on the nature of the revenue. The following table presents the revenue streams disaggregated by nature and geographic location:

---

| | | |
|:---|:---|:---|
|  | **For the three months ended <br> March 31,** | **For the three months ended <br> March 31,** |
|  | **2025** | **2024** |
| *At a point in time* |  |  |
| Commissions | $4416 | $6723 |
| Total revenue from the transfer of goods and services at a point in time | 4416 | 6723 |
| *Over time* |  |  |
| Advertising revenue |  |  |
| Saas fees |  |  |
| Subscription fees |  |  |
| Recurring asset management service fees | 347 | 892 |
| Loans interest income | 18 | 41 |
| Total revenue from the transfer of goods and services over time | 365 | 933 |
| Total revenue | $4781 | $7656 |

---

---

| | | |
|:---|:---|:---|
| | **For the three months ended<br> March 31,** | **For the three months ended<br> March 31,** |
| <br>**By geography:** | **2025** | **2024** |
| Hong Kong | $4781 | $7656 |
| United States |  |  |
| Others |  |  |
| Total | $4781 | $7656 |

---

● Comprehensive Loss

ASC Topic 220, *Comprehensive Income*, establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive (loss) income as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive (loss) income, as presented in the accompanying condensed consolidated statements of changes in stockholders' (deficit) equity, consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive (loss) income is not included in the computation of income tax expense or benefit.

● Income Taxes

Income taxes are determined in accordance with the provisions of ASC Topic 740, *Income Taxes* ("ASC Topic 740"). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

ASC Topic 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC Topic 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.

For the three months ended March 31, 2025 and 2024, the Company did not have any interest and penalties associated with tax positions. As of March 31, 2025, the Company did not have any significant unrecognized uncertain tax positions.

The Company is subject to tax in local and foreign jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by the relevant tax authorities.

● Stock-Based Compensation

The Company accounts for stock-based compensation in accordance with the fair value recognition provision of ASC Topic 718, *Stock Compensation*. The Company grants share awards, including common stock and restricted share units, to eligible participants. Stock-based compensation expense for share awards is measured at fair value on the grant date. The fair value of restricted stock with either solely a service requirement or with the combination of service and performance requirements is based on the closing fair market value of the common stock on the date of grant. Stock-based compensation expense is recognized over the requisite service period for time-vesting awards and, for awards with a performance condition, over the requisite service period if the performance condition is probable of achievement. For awards with graded vesting that are subject only to a service condition, the expense is recognized on a straight-line basis over the service period for the entire award.

● Net Loss Per Share

In accordance with ASC 260, *Earnings Per Share*, basic net earnings (loss) per share is computed by dividing net income (loss) attributable to ordinary stockholders by the weighted average number of unrestricted common stock outstanding during the period using the two-class method. Under the two-class method, net income (loss) is allocated between common stock and other participating securities based on dividends declared (or accumulated) and participating rights in undistributed earnings as if all the earnings for the reporting period had been distributed. The Company's holdback shares are participating securities because they are entitled to non-forfeitable dividends.

Basic loss per common stock is computed by dividing net loss by the weighted-average number of common stock outstanding during the period. Diluted loss per share is computed by dividing net loss by the sum of the weighted average number of common stock outstanding and of potential dilutive securities (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common stock that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted loss per share.

● Leases

Under ASU 2016-02, *Leases* (Topic 842) ("Topic 842"), leases are categorized as operating or financing lease at inception. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Lease terms include options to renew or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company has recognized right of use ("ROU") assets and corresponding lease liabilities on the Company's condensed consolidated balance sheets for its operating lease agreements with contractual terms greater than 12 months. Lease liabilities are based on the present value of remaining lease payments over the lease term. As the discount rate implied in the Company's leases is not readily determinable, the present value is calculated using the Company's incremental borrowing rate, which is estimated to approximate the interest rate on a collateralized basis with similar terms.

Some of the Company's lease agreements contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. The Company has elected the practical expedient to combine fixed payments for non-lease components with lease payments and account for them together as a single lease component which increases the amount of ROU assets and lease liabilities.

Leases with a term of twelve months or less upon the commencement date are considered short-term leases, are not included on the condensed consolidated balance sheets and are expensed on a straight-line basis over the lease term.

● Related Parties

The Company follows the ASC Topic 850-10, *Related Party* for the identification of related parties and disclosure of related party transactions.

Pursuant to section 850-10-20, the related parties include: a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which statements of operations are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which statements of operations are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

● Commitments and Contingencies

The Company follows the ASC Topic 450-20, *Contingencies,* to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company's financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company's financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company's business, financial position, and results of operations or cash flows.

● Fair Value Measurement

The Company follows the guidance of the ASC Topic 820-10, *Fair Value Measurements and Disclosures* ("ASC Topic 820-10"), with respect to financial assets and liabilities that are measured at fair value. ASC Topic 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

● *Level 1*: Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets;

● *Level 2*: Inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques (e.g. Black-Scholes Option-Pricing model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs; and

● *Level 3*: Inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models.

The carrying value of the Company's financial instruments: cash and cash equivalents, restricted cash, accounts receivable, loans receivable, deposits, prepayments and other receivables, accounts payable and accrued liabilities, escrow liabilities, borrowings, and amounts due to the holding company approximate at their fair values because of the short-term nature of these financial instruments.

Management believes, based on the current market prices or interest rates for similar debt instruments, the fair value of loans receivable approximates the carrying amount. The Company accounts for loans receivable at cost, subject to expected credit losses assessment.

The Company measures warrant liabilities, certain convertible debts for which the fair value option has been elected at fair value on a recurring basis.

The following table presents information about the Company's financial assets and liabilities that were measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value.

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Description** | **As of <br> March 31,**<br>**2025** | **Quoted<br> prices in<br> active<br> markets**<br>**(Level 1)** | **Significant other<br> observable<br> inputs**<br>**(Level 2)** | **Significant other<br> unobservable<br> inputs**<br>**(Level 3)** |
| Assets: |  |  |  |  |
| Marketable equity securities | $1 | $1 | $&nbsp;&nbsp;&nbsp;&nbsp; — | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Liabilities: |  |  |  |  |
| Warrant liabilities | $977 | $— | $&nbsp;&nbsp;&nbsp;&nbsp;— | $977 |
| Convertible debts for which the fair value option has been elected (a) | 53106 |  |  | 53106 |
| Total | $54083 | $&nbsp;&nbsp;&nbsp;&nbsp; — | $— | $54083 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Description** | **As of <br> December 31,**<br>**2024** | **Quoted<br> prices in<br> active<br> markets**<br>**(Level 1)** | **Significant<br> other<br> observable <br> inputs**<br>**(Level 2)** | **Significant<br> other<br> unobservable <br> inputs**<br>**(Level 3)** |
| Assets: |  |  |  |  |
| Marketable equity securities | $1 | $1 | $— | $— |
| Liabilities: |  |  |  |  |
| Warrant liabilities | $977 | $— | $— | $977 |
| Convertible debts for which the fair value option has been elected (a) | 53106 |  |  | 53106 |
| Total | $54083 | $— | $— | $54083 |

---

Note:

&nbsp;&nbsp;&nbsp;&nbsp;*(a)* Certain
 of the Company's convertible debts are accounted for under the fair value option election
 in ASC 825. Under the fair value option election, the financial instrument is initially measured
 at its issue-date estimated fair value and subsequently remeasured at estimated fair value
 on a recurring basis at each reporting period date. The estimated fair value adjustment is
 presented within other income (expense) in the condensed consolidated statements of operations
 and comprehensive loss. The Company classifies its convertible debts that are being valued
 under the fair value option election as Level 3 due to the lack of relevant observable market
 data over fair value inputs, such as the probability weighting of the various scenarios that
 can impact settlement of the arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The estimated fair value of the convertible debts as of March 31, 2025 was computed using the models and assumptions shown below. There was no change in fair value of convertible debts for the three months ended March 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The significant inputs in the valuation models as of March 31, 2025, are as follows:

---

| | | |
|:---|:---|:---|
| **Inputs** | **Convertible<br> debts A** | **Convertible<br> debts B** |
| Valuation method | Binomial Tree Model | Binomial Tree Model |
| Conversion price | $8.36 | $12.00 |
| Fair value of conversion units | 11.06 | 15.15 |
| Expected term (years) | 1.16 | 0.04 |
| Volatility | 198.02% | 112.77% |
| Discount rate | 15.00% | 15.00% |
| Risk free rate | 4.29% | 4.24% |

---

● Recently Issued Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standard Board ("FASB") or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.

In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires incremental disclosures about specific expense categories, including but not limited to, purchases of inventory, employee compensation, depreciation, amortization and selling expenses. The amendments are effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted and the amendments may be applied either prospectively or retrospectively. Management is currently evaluating this ASU to determine its impact on the Company's disclosures.

In January 2025, the FASB issued ASU 2025-01 Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40). The FASB issued ASU 2024-03 on November 4, 2024. ASU 2024-03 states that the amendments are effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Following the issuance of ASU 2024-03, the FASB was asked to clarify the initial effective date for entities that do not have an annual reporting period that ends on December 31 (referred to as non-calendar year-end entities). Because of how the effective date guidance was written, a non-calendar year-end entity may have concluded that it would be required to initially adopt the disclosure requirements in ASU 2024-03 in an interim reporting period, rather than in an annual reporting period. The FASB's intent in the basis for conclusions of ASU 2024-03 is clear that all public business entities should initially adopt the disclosure requirements in the first annual reporting period beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Management is currently evaluating this ASU to determine its impact on the Company's disclosures.

In July 2025, the FASB issued 2025-05 to improve the measurement of credit losses for accounts receivable and contract assets. The guidance provides a practical expedient for all entities to assume that current conditions as of the balance sheet date remain unchanged for the remaining life of the assets. The update aims to reduce the cost and complexity of estimating credit losses while maintaining decision-useful information for financial statement users. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025. Management is currently evaluating the impact that the adoption of this update may have on its 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 update provides amendments to clarify and modernize the accounting for costs incurred to develop or acquire internal-use software. The amendments address the capitalization of implementation costs by utilizing a principles-based approach and consolidates website development guidance under Subtopic 350-40. The amendments can be applied prospectively, modified prospectively, or retrospectively and are effective for annual and interim periods beginning after December 15, 2027. Early adoption is permitted. Management is currently evaluating this ASU to determine its impact on the Company's disclosures.

In September 2025, the FASB issued ASU No. 2025-07, *Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract*. This update introduces a scope exception to derivative accounting for certain contracts with underlyings tied to operations or activities specific to one of the parties. Additionally, the update clarifies that share-based noncash consideration received from a customer should be accounted for under Topic 606 until the right to receive or retain the consideration becomes unconditional. The amendments can be applied prospectively or modified retrospectively and are effective for annual and interim periods beginning after December 15, 2026. The Company expects to early adopt the provisions related to Topic 815 on a prospective basis and does not expect a significant impact to the Company's condensed consolidated financial statements. The provisions related to Topic 606 are not applicable.

In December 2025, the FASB issued ASU No. 2025-11, *Interim Reporting (Topic 270): Narrow-Scope Improvements*. This update clarifies the applicability, form and content, and interim disclosure requirements in ASC Topic 270 and enhances navigability of the interim reporting guidance. The amendments are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, for public business entities and after December 15, 2028, for entities other than public business entities. Early adoption is permitted. Management is currently evaluating this ASU to determine its impact on the Company's disclosures.

In December 2025, the FASB issued ASU 2025-12, "*Codification Improvements*," which updates the FASB Accounting Standards Codification to clarify, correct errors, and improve the overall usability of GAAP. The improvements consist of narrow-scope amendments, technical corrections, clarification of existing guidance, and updates to clarify the appropriate scope and application of certain disclosure requirements. ASU 2025-12 is effective for annual and interim periods beginning after December 15, 2026. Early adoption is permitted. Management is currently evaluating this ASU to determine its impact on the Company's disclosures.

Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have a material impact on the condensed consolidated balance sheets, statements of operations and comprehensive loss and cash flows.

**NOTE 3 — LIQUIDITY AND GOING CONCERN** 

The accompanying unaudited condensed consolidated financial statements were prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. They do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

For the three months ended March 31, 2025, the Company reported net loss of approximately $53.1 million and net cash outflows from operating activities of approximately $16.2 million. As of March 31, 2025, the Company had a working capital deficit of approximately $294.3 million and a stockholders' deficit of approximately $267.4 million.

On December 26, 2025, the Company received a determination letter from the Panel confirming the suspension trading on the Nasdaq Stock Market effective at the opening of the market on December 30, 2025 and delisting of the Company's securities.

As of the date of issuance of these unaudited condensed consolidated financial statements, the Company has not repaid certain short-term loans, TFI Note, exchangeable note and convertible promissory note all of which are past due and considered in default.

The Company has determined that the prevailing conditions and ongoing liquidity risks encountered by the Company raise substantial doubt about the ability to continue as a going concern for at least one year following the date these unaudited condensed consolidated financial statements are issued. The ability to continue as a going concern is dependent on the Company's ability to successfully implement its current operating plan and fund-raising plan. The Company believes that it will be able to grow its revenue base and control expenditures. In parallel, the Company will monitor its capital structure and operating plans and search for potential funding alternatives in order to finance the development activities and operating expenses. The Company is continuing its plan to further grow and expand operations and seek sources of capital to meet the contractual obligations, settle its liabilities and repay convertible debts and borrowings.

However, the Company cannot predict the exact amount or timing of the alternatives or guarantee those alternatives will be favorable to its stockholders. Any failure to obtain financing when required will have a material adverse impact on the Company's business, operation and financial result. These conditions and the uncertainty regarding the Company's ability to successfully implement its plans raise substantial doubt about the its ability to continue as a going concern.

**NOTE 4 — SEGMENT INFORMATION**

By assessing the qualitative and quantitative criteria established by ASC Topic 280, *"Segment Reporting"*, management has determined that the Company has four reportable segments, which include the Company's social media, sports streaming, sports content, and financial services segments. The Company's reportable segments reflect how the Company's operations are managed, how the Company's Chief Executive Officer, who is the Chief Operating Decision Maker ("CODM"), allocates resources and evaluates performance, and how the Company's internal financial reporting is structured.

For the three months ended March 31, 2025 and 2024, the Company's reportable segments comprised of the following:

---

| | |
|:---|:---|
| 1. Social media | The Social media segment consists of the Company's operations related to its social media platform and related services for content creation and distribution |
| 2. Sports streaming | The online streaming segment consists of the Company's operations related to its online streaming service. |
| 3. Financial services | The Financial services segment consists of revenues and costs incurred from the sale of investment products, offer asset management services and money lending services. |

---

The Company's reportable segments are strategic business units that offer different products and services. They are managed separately because each business unit requires different technology and marketing strategies.

The following tables present the summary information by segment for the three months ended March 31, 2025 and 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three months ended March 31, 2025** | **Three months ended March 31, 2025** | **Three months ended March 31, 2025** | **Three months ended March 31, 2025** | **Three months ended March 31, 2025** | **Three months ended March 31, 2025** |
|  | **Social media** | **Sports<br> streaming** | **Financial<br> services** | **Corporate** | **Elimination** | **Consolidated** |
| Revenue |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans interest income |  |  | 18 |  |  | 18 |
| &nbsp;&nbsp;&nbsp;Commission |  |  | 4416 |  |  | 4416 |
| &nbsp;&nbsp;&nbsp;Recurring asset management service fees |  |  | 347 |  |  | 347 |
| &nbsp;&nbsp;&nbsp;Advertising revenue |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;SaaS fees |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Subscription fees and paid-per-view fees |  |  |  |  |  |  |
| Total revenue |  |  | 4781 |  |  | 4781 |
| Operating expenses |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commission expense |  |  | (2521) |  |  | (2521) |
| &nbsp;&nbsp;&nbsp;Research and development expense | (1189) | (187) | (45) | (281) |  | (1702) |
| &nbsp;&nbsp;&nbsp;Personal and benefit expense | (3889) | (621) | (75) | (30379) |  | (34964) |
| &nbsp;&nbsp;&nbsp;Legal and professional fee |  |  |  | (5838) |  | (5838) |
| &nbsp;&nbsp;&nbsp;Office and operating fee, related party |  |  |  | (1178) |  | (1178) |
| &nbsp;&nbsp;&nbsp;Provision for allowance for expected credit losses |  |  | (47) |  |  | (47) |
| &nbsp;&nbsp;&nbsp;Other general and administrative expenses | (4400) | 109 | (1689) | 3247 |  | (2733) |
| Total operating expenses | (9478) | (699) | (4377) | (34429) |  | (48983) |
| Other income (expense) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 165 |  | 2 |  |  | 167 |
| &nbsp;&nbsp;&nbsp;Interest expense | (2418) | (356) | (161) | (1868) |  | (4803) |
| &nbsp;&nbsp;&nbsp;Foreign exchange gain, net |  |  | 1145 |  |  | 1145 |
| &nbsp;&nbsp;&nbsp;Bad debts written-off | (5441) |  |  |  |  | (5441) |
| &nbsp;&nbsp;&nbsp;Sundry income |  |  | 106 |  |  | 106 |
| Total other income (expense), net | (7694) | (356) | 1092 | (1868) |  | (8826) |
| Income tax expense |  |  | (24) |  |  | (24) |
| Net income (loss) | (17172) | (1055) | 1472 | (36297) |  | (53052) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended March 31, 2024** | **Three months ended March 31, 2024** | **Three months ended March 31, 2024** | **Three months ended March 31, 2024** |
|  | **Financial services** | **Corporate** | **Elimination** | **Consolidated** |
| Revenue |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commission | 6723 |  |  | 6723 |
| &nbsp;&nbsp;&nbsp;Asset management service fees | 892 |  |  | 892 |
| &nbsp;&nbsp;&nbsp;Loans interest income | 41 |  |  | 41 |
| Total revenue | 7656 |  |  | 7656 |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commission expense | (4446) |  |  | (4446) |
| &nbsp;&nbsp;&nbsp;Sales and marketing expenses | (483) |  |  | (483) |
| &nbsp;&nbsp;&nbsp;Research and development expenses | (458) |  |  | (458) |
| &nbsp;&nbsp;&nbsp;Personal and benefit expenses | (1848) | (4211) |  | (6059) |
| &nbsp;&nbsp;&nbsp;Legal and professional fee | (625) |  |  | (625) |
| &nbsp;&nbsp;&nbsp;Legal and professional fee, related party |  | (250) |  | (250) |
| &nbsp;&nbsp;&nbsp;Office and operating fee, related party | (573) | (545) |  | (1118) |
| &nbsp;&nbsp;&nbsp;Provision for allowance for expected credit losses | (836) | (155) |  | (991) |
| &nbsp;&nbsp;&nbsp;Other general and administrative expenses | (486) | (394) |  | (880) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | (9755) | (5555) |  | (15310) |
| Other income (expense) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 12 |  |  | 12 |
| &nbsp;&nbsp;&nbsp;Interest expense | (56) | (151) |  | (207) |
| &nbsp;&nbsp;&nbsp;Investment loss, net |  | (37) |  | (37) |
| &nbsp;&nbsp;&nbsp;Others |  | (136) |  | (136) |
| Total other expense, net | (44) | (324) |  | (368) |
| &nbsp;&nbsp;&nbsp;Income tax expense | (38) |  |  | (38) |
| Net loss | (2181) | (5879) |  | (8060) |

---

The following tables present a summary of the Company's assets by reportable segment as of March 31, 2025 and December 31, 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **As of March 31, 2025** | **As of March 31, 2025** | **As of March 31, 2025** | **As of March 31, 2025** | **As of March 31, 2025** | **As of March 31, 2025** |
|  | **Social<br> media** | **Sports<br> streaming** | **Financial<br> services** | **Corporate** | **Elimination** | **Consolidated** |
| Long-term investments, net |  |  | 26149 |  |  | 26149 |
| Other assets | 67 | 593 | 15275 | 3364 |  | 19299 |
| Total assets | 67 | 593 | 41424 | 3364 |  | 45448 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Social<br> media** | **Sports<br> streaming** | **Financial<br> services** | **Corporate** | **Elimination** | **Consolidated** |
| Long-term investments, net |  |  | 25455 |  |  | 25455 |
| Other assets | 7506 | 5614 | 18121 | 37514 | (43632) | 25123 |
| Total assets | 7506 | 5614 | 43576 | 37514 | (43632) | 50578 |

---

The Company's major customers and operations are based in Hong Kong and the United States.

**NOTE 5 — RESTRICTED CASH**

As of March 31, 2025 and December 31, 2024, the Company has approximately $12.8 million and $14.2 million fund held in escrow, respectively. Fund held in escrow primarily comprised of escrow funds held in bank accounts on behalf of the Company's customers. The Company is currently acted as a custodian to manage the assets and investment portfolio on behalf of its customers under the terms of certain contractual agreements, which the Company does not have the right to use for any purposes, other than managing the portfolio. Upon receiving escrow funds, the Company records a corresponding escrow liability.

**NOTE 6 — ACCOUNTS RECEIVABLE, NET**

Accounts receivable, net consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31,<br> 2025** | **December 31, <br> 2024** |
| Accounts receivable | $2358 | $3388 |
| Accounts receivable – related parties |  | 1100 |
| Less: allowance for expected credit losses | (1227) | (1615) |
| Accounts receivable, net | $1131 | $2873 |

---

The Company generally conducts its business with creditworthy third parties. The Company determines, on a quarterly basis, the probable losses and an allowance for expected credit losses determined in accordance with the CECL model, based on historical losses, current economic conditions, forecasted future economic and market considerations, and in some cases, evaluating specific customer accounts for risk of loss. Accounts receivable are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. In addition, receivable balances are monitored on an ongoing basis and its exposure to credit loss is not significant.

For the three months ended March 31, 2025 and 2024, the Company has assessed the probable loss and made a provision for allowance for expected credit losses of $0.0 and $0.2 million on accounts receivable, respectively.

For the three months ended March 31, 2025 and 2024, the Company has written-off $3.3 million and $0.0 long outstanding accounts receivable as they became uncollectible.

**NOTE 7 — LOANS AND NOTES RECEIVABLE, NET**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Loans Receivables, net

The Company's loans receivable, net was as follows:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31,<br> 2025** | **December 31, <br> 2024** |
| Residential mortgage loans | $1133 | $1164 |
| Less: allowance for expected credit losses | (9) | (38) |
| Loans receivable, net | $1124 | $1126 |
| Classifying as: |  |  |
| Current portion | $111 | $92 |
| Non-current portion | 1013 | 1034 |
| Loans receivable, net | $1124 | $1126 |

---

The interest rates on loans issued ranged between 10.00% and 10.50% (2024: 9.00% to 10.50%) per annum for the three months ended March 31, 2025 and 2024. Mortgage loans are secured by collateral in the pledge of the underlying residential properties owned by the borrowers. As of March 31, 2025, the net carrying amount of the loans receivable was approximately $1.1 million which included an interest receivable of approximately $0.06 million.

Mortgage loans are made to either business or individual customers in Hong Kong for a period of 1 to 25 years, which are fully collateralized and closely monitored for counterparty creditworthiness, with such collateral having a fair value in excess of the carrying amount of the loans as of March 31, 2025 and December 31, 2024.

Estimated allowance for expected credit losses is determined on quarterly basis, in accordance with the CECL model, for general credit risk of the overall portfolio, which is relied on an assessment of specific evidence indicating doubtful collection, historical loss experience, loan balance aging and prevailing economic conditions. If there is an unexpected deterioration of a customer's financial condition or an unexpected change in economic conditions, including macroeconomic events, the Company will assess the need to adjust the allowance for expected credit losses. Any such resulting adjustments would affect earnings in the period that adjustments are made.

For the three months ended March 31, 2025 and 2024, the Company has assessed the probable loss and there was no additional allowance for expected credit losses on loans receivable.

For the three months ended March 31, 2025 and 2024, the Company has written-off $1.5 million and $0.0 loans receivables, respectively due to uncollectible as assessed by the management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notes Receivables, net

On February 24, 2023, the Company entered into a subscription agreement and a convertible loan note instrument (collectively the "Agreements") with Investment A. Pursuant to the Agreements, the Company agrees to subscribe an aggregate amount of approximately $1.7 million notes, in batches, which are payable on or before January 31, 2024 and bears a fixed interest rate of 8% per annum. The Company sold all its convertible loan notes on Investment A to an independent third party on April 30, 2024 for a consideration of approximately $0.4 million.

In accordance with ASC Topic 326, the Company accounts for its allowance for expected credit losses on notes receivable using the CECL model. Periodic changes to the allowance for expected credit losses are recognized in the unaudited condensed consolidated statements of operations and comprehensive loss. For the three months ended March 31, 2025 and 2024, the Company has evaluated the probable losses on the notes receivable and made an allowance for expected credit losses of $0.0 and $0.2 million, respectively.

**NOTE 8 — PROPERTY AND EQUIPMENT, NET**

Property and equipment, net consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31,<br> 2025** | **December 31, <br> 2024** |
| As cost: |  |  |
| Building | $— | $— |
| Furniture, fixtures and equipment | 40 | 40 |
| Computer equipment | 243 | 243 |
| Motor vehicles |  |  |
|  | 283 | 283 |
| Less: accumulated depreciation and impairment | (283) | (283) |
| Property and equipment, net | $— | $— |

---

**NOTE 9 — LONG-TERM INVESTMENTS, NET**

Long-term investments, net consisted of the following:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** | **As of** | **As of** | **As of** |
|  | **Ownership<br> interest** |  | **March 31,<br> 2025** | **Ownership<br> interest** |  | **December 31, <br> 2024** |
| Marketable equity securities: |  |  |  |  |  |  |
| Investment C | 0.00 | %\* | 1 | 0.00 | %\* | 1 |
| Non-marketable equity securities: |  |  |  |  |  |  |
| Investment A | 8.37 | % | 5694 | 8.37 | % | 5479 |
| Investment B | 3.63 | % | 255 | 3.63 | % | 255 |
| Investment D | 4.49 | % | 17100 | 4.49 | % | 16621 |
| Investment E, related party | 4.00 | % | 525 | 4.00 | % | 525 |
| Investment G | 56.93 | % |  | 56.93 | % |  |
| Investment H | 3.76 | % | 2574 | 3.76 | % | 2574 |
| Net carrying value |  |  | $26149 |  |  | $25455 |

---

\* Less than 0.001%

 

*Investments in Marketable Equity Securities*

Investments in equity securities, such as, marketable securities, are accounted for at its current market value with the changes in fair value recognized in net gain (loss). Investment C was listed and publicly traded on Nasdaq Stock Exchange.

*Investments in Non-Marketable Equity Securities*

Investments in non-marketable equity securities consist of investments in limited liability companies in which the Company's interests are deemed minor and long-term, strategic investments in companies that are in various stages of development. These investments do not have readily determinable fair values and, therefore, are reported at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer.

Management assesses each of these investments on an individual basis, subject to a periodic impairment review and considers qualitative and quantitative factors including the investee's financial condition, the business outlook for its products and technology, its projected results and cash flow, financing transactions subsequent to the acquisition of the investment, the likelihood of obtaining subsequent rounds of financing and cash usage. The Company is not required to determine the fair value of these investments unless impairment indicators existed. When an impairment exists, the investment will be written down to its fair value by recording the corresponding charge as a component of other income (expense), net. Fair value is estimated using the best information available, which may include cash flow projections or other available market data.

The following table presents the movement of non-marketable equity securities as of March 31, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31,<br> 2025** | **December 31, <br> 2024** |
| Balance at beginning of period/year | $25455 | $25725 |
| Additions |  | 18457 |
| Disposal |  | (2152) |
| Adjustments: |  |  |
| Downward adjustments |  | (15971) |
| Foreign exchange adjustment | 694 | (604) |
| Balance at end of period/year | $26149 | $25455 |

---

Cumulative unrealized gains and losses, included in the carrying value of the Company's non-marketable equity securities:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31,<br> 2025** | **December 31, <br> 2024** |
| Downward adjustments (including impairment) | $(53318) | $(53318) |
| Upward adjustments | 6209 | 6209 |
| Total | $(47109) | $(47109) |

---

Investment loss, net is recorded as other expense in the Company's condensed consolidated statements of operations and comprehensive loss and consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **For the three months ended<br> March 31,** | **For the three months ended<br> March 31,** |
|  | **2025** | **2024** |
| Non-marketable equity securities: |  |  |
| Unrealized losses (including impairment) – Investment B | $— | $(37) |
| Investment loss, net | $— | $(37) |

---

**NOTE 10 — BORROWINGS**

The borrowings consisted of the followings:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31,<br> 2025** | **December 31, <br> 2024** |
| Mortgage borrowings (a) | $— | $868 |
| Short-term loans (b) | 11442 | 11642 |
| Short-term loans, related parties (c) | 41422 | 29181 |
| Factoring loan (d) | 197 | 197 |
| Total | $53061 | $41888 |

---

Notes:

(a) Mortgage Borrowings

In February 2023, the Company obtained a mortgage loan of approximately $1.8 million (equivalent to HK$14.0 million) from a finance company in Hong Kong, which bears an average interest rate at 13.75% per annum and becomes repayable in February 2024. The loan was pledged by a fixed charge on an office premise owned by the Company.

In July 2024, the Company partially settled approximately $0.8 million, including approximately $0.02 million interest expense (equivalent to principal and interest of approximately HK$6.0 million and HK$0.15 million, respectively). The remaining principal and accrued interest are settled in January and June 2025.

On October 31, 2024, the Company entered into a preliminary sales and purchase agreement with an independent third party to sell the office premises with a cash consideration of approximately $1.6 million. The transaction is completed in February and June 2025.

As of March 31, 2025 and December 31, 2024, the carrying value of the loan is nil and $0.9 million, respectively.

(b) Short-term Loans

In connection with the merger transaction completed on October 15, 2024, the Company assumed the liabilities of Triller Corp, which includes the short-term notes assumed at an aggregate principal amount of $9.5 million issued to various lenders (collectively, the "Short-term Loans"). The Short-term loans mature at various dates within the next twelve months and are included as current liabilities in the accompanying condensed consolidated balance sheets. The Company incurred approximately $0.02 million in interest expense and made aggregate payments of approximately $0.2 million toward the various short-term loans during the three months ended March 31, 2025.

On November 27, 2024, the Company also obtained a short-term loan of approximately $0.6 million from an independent third party in Hong Kong with a fixed interest rate of 6% per annum, repayable on December 31, 2024. The loan is unsecured and the fixed interest rate will increase to 15% per annum if there is any default on repayment.

As of March 31, 2025 and December 31, 2024, the aggregate outstanding principal and accrued interest was approximately $11.4 million and $14.5 million, respectively.

As of the date of issuance of these unaudited condensed consolidated financial statements, the Company has not repaid the amount due and considered default of settlement.

(c) Short-term Loans, Related
 Parties

In September 2023, the Company obtained short-term loans of approximately $5.0 million from Giant Wisdom Ventures Limited, a company controlled by major stockholder of the Company, which bears interest at a fixed rate of 12% per annum, repayable in October 2023. The borrowing is secured by a lien on the partial equity interest in Investment D owned by the Company.

In connection with the merger transaction completed on October 15, 2024, the Company assumed the liabilities of Triller Corp, which includes the borrowing entered with De Silva 2000 Living Trust for a principal of approximately $0.2 million with a fixed interest rate of 1.85% per annum.

In October 2024, the Company entered a loan facility agreement with one of its stockholders, TAG Holding Limited for borrowings up to $30.0 million. The loan is unsecured, repayable on demand and bears interest at a fixed rate of 6% per annum.

On October 16, 2024, Triller Corp. entered into a short-term loan agreement with Giant Wisdom Ventures Limited for a principal of approximately $5.0 million with a fixed interest rate of 18% per annum. The loan is guaranteed by Triller Group and is collateralized by 5,000,000 shares of BKFC common stock. Both principal and accrued interest are due on January 16, 2025. In the event of a default, the interest rate increases to 21% per annum. As of March 31, 2025 and December 31, 2024, the aggregate outstanding principal and accrued interest was approximately $5.2 million.

In November and December 2024, the Company obtained aggregate short-term loans of approximately $0.5 million from the Company's Chief Operating Officer ("COO") with a fixed interest rate of 6% per annum, repayable on December 31, 2024. The loans are unsecured and the fixed interest rate will increase to 15% per annum if there is any default on repayment. During three months ended March 31, 2025, the Company issued 155,000 shares of common stock to the COO for the full repayment of this short-term loans (see Note 14(a)(ii)).

On March 21, 2025, the Company entered into short-term loan agreements with Giant Wisdom Ventures Limited for aggregate principal of $13.5 million with a fixed interest rate of 8% per annum and repayable in June and July 2025. The loans are guaranteed by Triller Hold Co LLC and secured by a pledge of 1,400,000 shares of common stock of BKFC owned by the Company.

As of March 31, 2025 and December 31, 2024, the aggregate outstanding loan balances was approximately $41.4 million and $29.2 million, respectively.

(d) Factoring loan

In connection with the Merger Transaction, the Company assumed the liabilities of Triller Corp.'s subsidiary, Flipps Media Inc. ("Flipps"), which included certain sale of future receipts agreements (the "Agreements") entered with certain third-party financing companies in October 2024. Pursuant to the Agreements, Flipps sold its future receipts of approximately $0.6 million for a principal amount of approximately $0.4 million. Flipps recorded a debt discount of approximately $0.03 million for the loan origination fees. The debt discount was amortized over the term of the loans with a range of four to twelve-month periods. The agreed weekly payment was approximately $0.03 million.

As of March 31, 2025 and December 31, 2024, the outstanding principal balance, net of debt discount, was approximately $0.2 million and $0.2 million, respectively.

**NOTE 11 — CONVERTIBLE DEBTS, NET**

*(i)* *TFI Note* 

In connection with the Merger Transaction, the Company assumed the liabilities of Triller Corp, which includes convertible notes issued to Total Formation Inc. ("TFI"), stockholder of the Company, with a total principal balance of approximately $35.3 million and fair value of approximately $46.3 million (the "TFI Note") as of the Acquisition Date. The TFI Note bears 15% annual interest and payable on demand by TFI at any time on or after August 1, 2024. The Company may prepay any amount owed under the note in whole or in part at any time without penalty or premium, plus unpaid accrued interest as of the date of such repayment. In the event that the Company fails to pay any amount due under this note when due or if the Company commences any case, proceeding, or other action relating to bankruptcy, insolvency, or reorganization, these events will constitute an event of default. An event of default will result in TFI having the option, by written notice to the Company, to declare the entire principal amount, together with all accrued but unpaid interest, payable immediately. If any amount payable under this TFI Note is not paid when due, such overdue amount shall bear interest at the default rate of 16% from the date of such non-payment until such amount is paid in full.

As of March 31, 2025 and December 31, 2024, the TFI Note was reported at a fair value of approximately $46.3 million and $46.3 million, respectively, which is included in convertible debts under current liabilities in the condensed consolidated balance sheets. For the three months ended March 31, 2025, there was no change in fair value of convertible debts in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss.

As of the date of issuance of these unaudited condensed consolidated financial statements, the Company has not repaid the amount due and considered default of settlement.

*(ii)* *Exchangeable Note* 

On October 16, 2024, the Company issued an exchangeable note of approximately $5.4 million to Giant Wisdom Ventures Limited which bears interest at a fixed rate of 15% per annum and mature on January 16, 2025. The note is secured by a pledge of 5,000,000 shares of common stock of BKFC owned by the Company.

As of March 31, 2025 and December 31, 2024, the fair value of the note is approximately $6.8 million and $6.8 million, respectively. As of the date of issuance of these unaudited condensed consolidated financial statements, the Company has not repaid the amount due and considered default of settlement.

*(iii)* *Convertible Promissory Note - Yorkville* 

On April 25, 2024, the Company entered into an amended and restated standby equity purchase agreement (the "First A&R SEPA") with YA II PN, LTD, a Cayman Islands exempt limited partnership ("Yorkville"), and Triller Corp.

In connection with the A&R SEPA, Yorkville agreed to an advance to the Triller Corp in the form of convertible promissory notes in a principal amount up to approximately $8.51 million (the "First Pre-Paid Advance"). The First Pre-Paid Advance amounted to 94.0% of the principal amount to be drawn down. Interest shall accrue on the outstanding balance at an annual rate of 5%, subject to an increase to 18% upon an event of default as described in the agreement. The maturity date is 12 months after its issuance date.

On June 28, 2024, the Company, Triller Corp and Yorkville entered into the Second A&R SEPA to modify the First A&R SEPA dated April 25, 2024. Pursuant to the Second A&R SEPA, Yorkville provides to the Company financing in the principal amount of $25 million (the "Second Pre-Paid Advance") in the form of an additional convertible promissory note, subject to the same terms in interest charge and maturity under the First Pre-Paid Advance. The Second Pre-Paid Advance amounted to 94.0% of the principal amount to be drawn down.

Yorkville may convert the First Pre-Paid Advance and Second Pre-Paid Advance into the common shares at any time after the Merger at a fixed conversion price equal to (i) the principal amount and interests, divided by (ii) the determination of the lower of (a) 100% of the volume weighted average price ("VWAP") during the ten trading days preceding the closing date of the Merger (the "Fixed Price"), or (b) 92.5% of the lowest daily VWAP during the 10 consecutive trading days immediately preceding the conversion date or other date of determination (the "Variable Price"), provided that the Variable Price shall not be lower than the Floor Price. The "Floor Price", solely with respect to the Variable Price, shall be equal to (i) a price equal to 40% of the average of the VWAPs during the ten (10) trading days immediately preceding the closing date of the Merger, and (ii) from and after the date of effectiveness of the initial registration statement, 40% of the VWAP of the trading day immediately prior to the date of effectiveness of the initial registration statement, if such price is lower than the price in part (i) of this sentence.

On July 2, 2024, the Company received approximately $23.35 million, net of approximately $0.15 million legal and professional fee as direct issuance costs incurred in arranging the Second A&R SEPA, from Yorkville.

As of March 31, 2025 and December 31, 2024, the Company issued convertible promissory notes in an aggregate of approximately $33.97 million and $32.55 million to Yorkville, respectively.

*Common Warrants to Yorkville*

Also, pursuant to the First A&R SEPA and Second A&R SEPA, the Company issued a warrant (the "Common Warrant") to Yorkville to purchase up to a number of shares of common stock of the Company equal to 25% of the principal amount of the aggregated pre-paid advances divided by a price equal to the Fixed Price, each such Common Warrant with an exercise price equal to the Fixed Price. On June 28, 2024, the Company issued 1,431,561 common warrants to Yorkville at a fixed exercise price of $5.85 per share (see Note 12).

The Company analyzed the conversion feature of the agreement for derivative accounting consideration under ASC 815 and determined that the embedded conversion features should be classified as a derivative because the exercise price of these convertible notes are subject to a variable conversion rate. The Company has determined that the conversion feature is not considered to be solely indexed to the Company's own shares and is therefore not afforded equity treatment.

The Company recorded amortization of debt discount and direct issuance costs and accrued interest of convertible promissory notes payable in interest expense in the unaudited condensed consolidated statements of operations and comprehensive loss of approximately $1.4 million and nil for the three months ended March 31, 2025 and 2024, respectively.

On November 26, 2024, Yorkville initiated litigation against Triller, Triller Corp., Triller Hold Co LLC, and Convoy Global Holdings Limited ("Defendants") by filing a motion for summary judgment in lieu of a complaint pursuant to NY CPLR 3213 (the "Motion"), seeking a judgment finding Defendants liable for all amounts allegedly owed under the convertible promissory note, including interest, plus costs, legal fees, and expenses incurred by Yorkville. As of the date of issuance of these unaudited condensed consolidated financial statements, the Company has not repaid the amount due and considered default of settlement.

**NOTE 12 — WARRANTS** 

In connection with the merger transaction completed on October 15, 2024, the exercise prices for, and the shares underlying, all previously outstanding public warrants ("AGBA Public Warrants"), Class A warrants ("AGBA Class A Warrants"), and common warrants ("AGBA Common Warrants") (collectively, "AGBA Warrants") issued by AGBA were adjusted in accordance with the terms of such warrant instruments to reflect the previously announced and implemented 1.9365-to-1 Forward Split and 1-for-4 Reverse Split. An equitable adjustment with a combined ratio of 0.5:1 applied to the number of AGBA Ordinary Shares issuable on the exercise of each AGBA Warrants and the warrant price. Upon the closing, all warrants issued by AGBA and Triller Corp. were assigned to and assumed by Triller Group ("Triller Group Warrants"). Accordingly, as of the close of business acquisition on October 15, 2024, each AGBA Public Warrant and each AGBA SPAC Private Warrant became one Triller Group Warrant which entitles the holder thereof to purchase 0.25 shares of Triller Group Common Stock at an adjusted exercise price of $23.00 per whole share (provided, however, warrants are not exercisable for fractional shares, only whole shares; thereby a warrant holder would need to hold four warrants to yield one share). Each AGBA Class A Warrant and each AGBA Common Warrant became one Triller Group Warrant which entitles the holder thereof to purchase 0.5 shares of Triller Group Common Stock at an adjusted exercise price of two times of the original exercise price per whole share (provided, however, warrants are not exercisable for fractional shares, only whole shares; thereby a warrant holder would need to hold two warrants to yield one share). AGBA Public Warrants started trading on a post-adjustment basis as Triller Group Warrants on October 16, 2024 under the new ticker symbol "ILLRW". All the warrants and their exercise prices are retroactively restated in effect to the forward stock split and reverse stock split (see Note 14).

The Company has issued different classes of warrants, as follows:

*<u>Equity Classified Warrants</u>*

(a) Public Warrants

Each public warrant entitles the holder thereof to purchase one-quarter (1/4) of one share of common stock at a price of $23.00 per full share, subject to adjustment as discussed herein. Pursuant to the warrant agreement, a warrant holder may exercise its warrants only for a whole number of shares. This means that only an even number of warrants may be exercised at any given time by a warrant holder.

Once the warrants become exercisable, the Company may call the outstanding warrants (including any outstanding warrants issued upon exercise of the unit purchase option issued to Maxim Group LLC) for redemption:

● in whole and not in part;

● at a price of $0.01 per warrant;

● upon a minimum of 30 days' prior written notice of redemption,

● if, and only if, the last sales price of the common stock equals or exceeds $16.50 per share for any 20 trading days within a 30 trading day period ending three business days before the Company send the notice of redemption, and

● if, and only if, there is a current registration statement in effect with respect to the common stock underlying such warrants at the time of redemption and for the entire 30-day trading period referred to above and continuing each day thereafter until the date of redemption.

If the Company calls the warrants for redemption as described above, the management of the Company will have the option to require all holders that wish to exercise warrants to do so on a "cashless basis." In such event, each holder would pay the exercise price by surrendering the whole warrants for that number of common stock equal to the quotient obtained by dividing (x) the product of the number of common stock underlying the warrants, multiplied by the difference between the exercise price of the warrants and the "fair market value" (defined below) by (y) the fair market value. The "fair market value" shall mean the average reported last sale price of the common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of warrants. Whether the Company will exercise its option to require all holders to exercise their warrants on a "cashless basis" will depend on a variety of factors including the price of its common stock at the time the warrants are called for redemption, the Company's cash needs at such time and concerns regarding dilutive share issuances.

The public warrants qualify for the derivative scope exception under ASC 815 and are therefore presented as a component of stockholders' deficit on the unaudited condensed consolidated balance sheets without subsequent fair value re-measurement.

As of March 31, 2025 and December 31, 2024, there were 4,600,000 and 4,600,000 public warrants of Triller Group Warrants outstanding.

(b) Replacement Warrants

On October 15, 2024, pursuant to the Merger Agreement, the Company issued 49,697,115 Triller Group Replacement Warrants to replace Triller Corp. warrants. Each replacement warrant entitles the holder thereof to purchase one share of common stock at a price of $3.1946 per full share, subject to adjustment as discussed herein.

The replacement warrants may be exercised in full or in part during the exercise period from the issue date to 2028. The holders will have the option to exercise warrants on a "cashless exercise." In such event, each holder would pay the exercise price by surrendering the whole warrants for that number of shares equal to the quotient obtained by dividing (x) the product of the number of shares underlying the warrants, multiplied by the difference between the exercise price of the warrants and the "fair market value" (defined below) by (y) the fair market value. The "fair market value" shall mean the volume average reported last sale price of the shares for the 10 trading days prior to the exercise date.

As of March 31, 2025 and December 31, 2024, there were 49,697,115 and 49,697,115 replacement warrants of Replacement Warrants outstanding, respectively.

*<u>Liability Classified Warrants</u>*

(a) Warrant - Class A

On May 2, 2024, the Company issued 3,557,932 shares of common stock and the associated warrants to purchase up to 734,920 shares of common stock at a purchase price of $1.40 per share under the private placement, to an institutional investor, a director, officers and employees of the Company. The subscribers in private placement will receive one Warrant – Class A for every five shares of common stock subscribed. Each Warrant – Class A entitles the holder to purchase 0.5 share of common stock at an exercise price of $2.00 per share and shall be exercised with more than $500,000 per tranche. The warrants will be exercisable six months after the issuance date for a period of five years after the exercise date.

As of March 31, 2025 and December 31, 2024, there were 1,460,840 and 1,469,840 Warrants - Class A of Triller Group Warrants outstanding, respectively, with aggregate value of approximately $1.0 million and $1.0 million, respectively.

(b) Common Warrants

On June 28, 2024, the Company issued 1,431,561 common warrants to Yorkville, in connection with the Second A&R SEPA (see Note 10). Each common warrant entitles the holder to purchase 1 share of common stock with an exercise price of $5.85 per share.

As of March 31, 2025 and December 31, 2024, there were 1,431,561 and 1,431,561 common warrants of Triller Group Warrants outstanding, respectively.

The Company has accounted for and presented Warrant – Class A and Common Warrants as liabilities on the condensed consolidated balance sheets, in accordance with ASC 480. The fair value of the warrant liabilities is valued by an independent valuer using a Binominal pricing model. The warrant liabilities were classified as Level 3 due to the use of unobservable inputs.

The key inputs into the Binominal pricing model were as follows at their measurement dates:

---

| | | |
|:---|:---|:---|
|  | **As of March 31, 2025** | **As of March 31, 2025** |
|  | **Common<br> Warrants** | **Warrants – <br> Class A** |
| Input |  |  |
| Share price | $2.38 | $2.38 |
| Risk-free interest rate | 4.38% | 4.37% |
| Volatility | 52.67% | 52.71% |
| Exercise price | $5.85 | $2.00 |
| Warrant remaining life (years) | 4.49 | 4.84 |

---

**NOTE 13 — OPERATING LEASES**

The Company has entered into a commercial operating lease with an independent third party for the use of an office in Hong Kong. The lease has an original term exceeding 1 year, but not more than 3 years with an option to renew a further term of 3 years. The operating leases are included in "Right-of-use asset, net" on the condensed consolidated balance sheets and represents the Company's right to use the underlying assets during the lease term. The Company's obligation to make lease payments are included in "Operating lease liabilities" on the condensed consolidated balance sheets.

Supplemental balance sheet information related to the operating lease was as follows:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31,<br> 2025** | **December 31, 2024** |
| Operating lease: |  |  |
| Right-of-use asset | $12626 | $12626 |
| Less: accumulated amortization and impairment | (12626) | (12626) |
| Right-of-use asset, net | $— | $— |
| Lease liabilities: |  |  |
| Current lease liabilities | $1888 | $1867 |
| Non-current lease liabilities | 324 | 807 |
| Total lease liabilities | $2212 | $2674 |

---

Operating lease expense for the three months ended March 31, 2025 and 2024 was approximately $0.5 million and $0.6 million, respectively.

Other supplemental information about the Company's operating lease as of March 31, 2025 and December 31, 2024 are as follow:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31,<br> 2025** | **December 31, 2024** |
| Weighted average discount rate | 5.25% | 5.25% |
| Weighted average remaining lease term (years) | 1.17 | 1.42 |

---

Maturities of operating lease liabilities as of March 31, 2025 were as follows:

---

| | |
|:---|:---|
| **For the year ending March 31,** | **Operating lease** |
| 2026 | $1949 |
| 2027 | 325 |
| Total minimum lease payments | 2274 |
| Less: imputed interest | (62) |
| Total operating lease liabilities | $2212 |

---

**NOTE 14 — STOCKHOLDERS' DEFICIT**

(a) Common Stock

The Company has 150,000,000,000 authorized shares of common stock, with a par value of $0.001 per share.

On October 1, 2024, the Company effected a 1.9365-to-1 forward stock split (the "Forward Split"), resulting in an increase in the total number of authorized common stocks from 1,500,000,000 to 2,904,753,145, an increase in the outstanding ordinary shares from 97,736,035 shares to 189,265,804 shares and a reduction of par value from $0.001 to $0.000516395 per share.

Further, on October 15, 2024, immediately prior to the completion of the redomiciliation and merger transaction, the Company effected a 1-for-4 reverse stock split (the "Reverse Split"), resulting in the proportional adjustments to the par value of the ordinary shares, the authorized number of ordinary shares, and the number of outstanding ordinary shares. Proportional adjustments were also made to all outstanding stock options, warrants, and common warrants in accordance with their respective terms. The Reverse Split did not change the par value of the Company's common stock or the authorized number of shares. All fractional shares were rounded up to the nearest whole share with respect to outstanding shares of common stock.

All share and warrant numbers and per share amounts are retroactively presented in this Form 10-Q to reflect the impact of the Forward Split and the Reverse Split as if they had taken effect on January 1, 2024.

During the three months ended March 31, 2025, the Company issued 15,121,526 shares of common stock as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 2,043,962 shares of common stock for settlement of claims that relate to the affairs of Triller Corp. prior to the closing date of the merger transaction on October 15, 2024 with common stock held in escrow.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 155,000 shares of common stock to an officer of the Company for the repayment of short-term loans (see Note 10(c)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) 348,745 shares of common stock to certain consultants to compensate their services rendered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) 206,127 shares of common stock to a director, officers and employees of the Company to compensate for the contributions of their services and performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) 560,360 shares of common stock to the directors and officers for the settlement of the accrued salaries and salaries during the period

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) 11,807,332 shares of common stock to settle 11,801,804 shares of Series A-1 preferred stock to be issued in related to the merger transaction completed on October 15, 2024.

There were 153,265,343 and 138,143,817 shares of common stock issued and outstanding, as of March 31, 2025 and December 31, 2024, respectively.

To the date of the accompanying unaudited condensed consolidated financial statements issued, there were 197,266,991 shares of common stock issued and outstanding. The subsequent issuance of common stocks is listed from (i) to (vii) in Note 18.

For the three months ended March 31, 2025 and 2024, the Company recorded approximately $28.8 million and $1.7 million stock-based compensation expense, respectively which is included in the personal and benefit expense and legal and professional fee in the condensed consolidated statements of operations and comprehensive loss.

(b) Preferred Stock

The Company has authorized a total of 100,000,000 shares of preferred stock with a par value of $0.001 per share. Of this amount the Company has authorized 50,000,000 shares and 50,000,000 shares to two classes of preferred stock, Series A-1 Preferred Stock and Series B Preferred Stock, respectively.

A description of each class of preferred stock is listed below:

*<u>Series A-1 Preferred Stock</u>*

The Company designated up to 11,803,398 shares as Series A-1 Preferred Stock, with a par value of $0.001 per share. Each share of Series A-1 Preferred Stock shall be convertible, at the option of the holder thereof, at any time and from time to time, and without the payment of additional consideration by the holder thereof, into such number of fully paid and non-assessable shares of common stock.

In connection with the Merger Transaction, the Company issued 11,801,804 shares of Series A-1 Preferred Stock to the holders of Triller Corp preferred stock and 11,801,804 shares of Series A-1 Preferred Stock to be issued to Giant Wisdom Ventures Limited.

There were 11,801,804 and 11,801,804 shares of Series A-1 Preferred Stock issued and outstanding as of March 31, 2025 and December 31, 2024, respectively.

*<u>Series B Preferred Stock</u>*

The Company designated up to 35,000 shares of Series B Preferred Stock, with a par value of $0.001 per share. Each share of Series B Preferred Stock shall be entitled to 10,000 votes for each share of Series B Preferred Stock held by such holder.

There were 30,851 and 30,851 shares of Series B Preferred Stock issued and outstanding as of March 31, 2025 and December 31, 2024, respectively.

(c) Preferred Stock To Be Issued

During the three months ended March 31, 2025, the Company issued 11,807,332 shares of common stocks to settle 11,801,804 shares of Series A-1 preferred stock to be issued in connection with the merger transaction.

As of March 31, 2025 and December 31, 2024, there was nil and 11,801,804 shares of Series A-1 preferred stock to be issued.

(d) Common Stock To Be Issued

The Company has committed to issue common stocks as compensation for services:

(i) 9,682,500 common stocks to a consultant under a consulting agreement.

(ii) 5,340,211 common stocks to directors, officers and employees under equity incentive plans for their service and performance

There were 15,022,711 and 15,022,711 shares of common stock to be issued, as of March 31, 2025 and December 31, 2024, respectively.

(e) Common Stock Held In Escrow

There were 24,206,246 shares of common stock deposited into an escrow account in the name of the Company, acting as escrow agent, in connection with the merger transaction completed on October 15, 2024.

During the three months ended March 31, 2025 and 2024, 2,043,962 and nil shares common stock held in escrow, respectively are transferred out to settle claims that relate to the affairs of Triller Corp. prior to the closing date of the merger transaction with common stock held in escrow.

There were 21,978,469 and 24,022,431 shares of common stock held in escrow issued and outstanding as of March 31, 2025 and 2024, respectively.

(f) 2023 Share Award Scheme
 (the "Scheme")

Pursuant to the Share Award Scheme, the Company filed S-8 registration statement to register up to 5,652,352 shares of common stock on February 24, 2023.

The fair value of the common stock granted during the period is measured based on the closing price of the Company's common stocks as reported by Nasdaq Exchange on the date of grant. For those vested immediately on the date of grant, the fair value is recognized as stock-based compensation expense in the condensed consolidated statements of operations and comprehensive loss.

(g) Restricted Share Units
 ("RSUs")

In December 2022, the Company approved and granted 2,420,625 shares of common stock as RSUs to employees and consultants as additional compensation under the Scheme. These RSUs typically will be vested over one to four years period from 2023 to 2026.

In January 2025, the Company approved and granted 3,363,000 shares of common stock as RSUs to employees as additional compensation under the Scheme. These RSUs typically will be vested over two years period from 2025 to 2027.

For the RSUs, the fair value is recognized over the period based on the derived service period (usually the vesting period), on a straight-line basis. The valuations assume no dividends will be paid. The Company has assumed 10% forfeitures.

As of March 31, 2025 and December 31, 2024, 3,415,383 and 388,683 shares of common stock are available to issue under this plan, respectively.

During the three months ended March 31, 2025 and 2024, the Company recorded approximately $0.5 million and $0.3 million stock-based compensation expense, respectively which is included in the personnel and benefit expenses in the condensed consolidated statements of operations and comprehensive loss.

As of March 31, 2025 and December 31, 2024, total unrecognized compensation remaining to be recognized in future periods for RSUs totaled approximately $3.7 million and $0.5 million, respectively. They are expected to be recognized over the weighted average period ranging from 1.07 to 1.22 years.

A summary of the activities for the Company's RSUs as of March 31, 2025 and December 31, 2024 is as follow:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of** | **As of** | **As of** | **As of** |
|  | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|  | **Number of<br> RSUs** | **Weighted<br> Average<br> Grant Price** | **Number of RSUs** | **Weighted<br> Average<br> Grant Price** |
| Outstanding, beginning of period/year | 388683 | $2.47 | 634072 | $2.47 |
| Granted | 3363000 | $1.03 |  | $— |
| Vested | (336300) | $1.03 | (95525) | $2.47 |
| Forfeited |  | $— | (149864) | $2.47 |
| Outstanding, end of period/year | 3415383 | $1.09 | 388683 | $2.47 |

---

(i) 2024 Equity Incentive Plan

Pursuant to the 2024 Equity Incentive Plan (the "2024 Plan"), the Company filed S-8 registration statement to register 7,746,000 and 30,998,400 shares of common stock on August 29, 2024 and November 27, 2024, respectively.

The fair value of the common stock granted during the period is measured based on the closing price of the Company's common stock as reported by Nasdaq Exchange on the date of grant. For those vested immediately on the date of grant, the fair value is recognized as stock-based compensation expense in the condensed consolidated statements of operations and comprehensive loss.

As of March 31, 2025 and December 31, 2024, 23,910,611 and 24,508,411 shares of common stock are available to issue under this plan.

**NOTE 15 — INCOME TAX EXPENSE**

The provision for income tax expense consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **For the three months ended<br> March 31,** | **For the three months ended<br> March 31,** |
|  | **2025** | **2024** |
| U.S. | $— | $— |
| Other than U.S. | 24 | 38 |
| Income tax expense | $24 | $38 |

---

---

| | | |
|:---|:---|:---|
|  | **For the three months ended<br> March 31,** | **For the three months ended<br> March 31,** |
|  | **2025** | **2024** |
| Current tax | $24 | $38 |
| Deferred tax |  |  |
| Income tax expense | $24 | $38 |

---

The Company's subsidiaries mainly operate in Hong Kong and the U.S. that are subject to taxes in the jurisdictions in which they operate, as follows:

*United States of America* 

The Company is formed in the State of Delaware, the Company is subject to the federal income tax rate of 21%.

*British Virgin Islands*

The Company's subsidiaries are incorporated in the British Virgin Islands and is not subject to taxation. In addition, upon payments of dividends by these entities to their stockholders, no British Virgin Islands withholding tax will be imposed.

*Hong Kong*

The Company's subsidiaries operating in Hong Kong are subject to the Hong Kong Profits Tax at the income tax rates ranging from 8.25% to 16.5% on the assessable income arising in Hong Kong during its tax year.

The following table sets forth the significant components of the deferred tax assets of the Company as of March 31, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31,<br> 2025** | **December 31, <br> 2024** |
| Deferred tax assets, net: |  |  |
| Net operating loss carryforwards | $13093 | $10446 |
| Less: valuation allowance | (13093) | (10446) |
| Deferred tax assets, net: | $— | $— |

---

As of March 31, 2025, the operations incurred approximately $81.4 million of cumulative net operating losses, which can be carried forward to offset future taxable income. Net operating loss can be carried forward indefinitely but cannot be carried back to prior years. There are no group relief provisions for losses or transfers of assets under Hong Kong tax regime. Each company within a corporate group is taxed as a separate entity. The Company has provided for a full valuation allowance against the deferred tax assets on the expected future tax benefits from the net operating loss carryforwards as the management believes that it is more likely that not all of these assets will be realized in the future. The valuation allowance is reviewed annually.

<u>Uncertain tax positions</u>

The Company evaluates the uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of March 31, 2025 and December 31, 2024, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur any interest and penalties related to potential underpaid income tax expenses for the three months ended March 31, 2025 and 2024 and also did not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from March 31, 2025.

**NOTE 16 — RELATED PARTY BALANCES AND TRANSACTIONS**

The table below sets forth major related parties of the Company and their relationships with the Company.

---

| | |
|:---|:---|
| **Name** | **Relationship with the Company** |
| JFA Capital | Investment private funds controlled by the holding company of the Company |
| NSD Capital | Investment private funds controlled by the holding company of the Company |
| TAG Holdings Limited | Stockholder of the Company |
| TAG Financial Holdings Limited | Company controlled by common stockholder of the Company |
| Convoy Financial Services Limited | Company controlled by common stockholder of the Company |
| Convoy Global Holdings Limited | Company controlled by common stockholder of the Company |
| Giant Wisdom Ventures Limited | Company controlled by major stockholder of the Company |
| Atlas Merchant Capital LLC | Company controlled by the former chairman of the Company |
| Wong Suet Fai Almond | Chief Operating Officer of the Company |
| De Silva Trust | Company controlled by director of subsidiaries of the Company |
| HCMPS Healthcare Holdings Limited | Company with common director of the Company |
| Total Formation Inc. | Stockholder of the Company |

---

In support of the Company's efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attain adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by the stockholder. Amounts represent advances or amounts paid in satisfaction of liabilities.

**(i)** **Related party balances** 

Related party balances consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **March 31,<br> 2025** | **December 31, <br> 2024** |
| **Balance with related parties:** | | |
| Other current liabilities (a) | $1821 | $1251 |
| Borrowings (b) | $41422 | $29181 |
| Long-term investment – Investment E (c) | $525 | $525 |
| Convertible debts (d) | $53106 | $53106 |

---

(a) Other current liabilities
 due to related parties represented the interest payable accrued on the short-term borrowings from four related parties.

(b) Borrowings
 consisted of short-term loans obtained from the Company's senior management, major stockholder of ultimate holding company,
 a company controlled by director of subsidiaries and a stockholder. The amounts were secured, interest-bearing and repayable on demand
 (see Note 10(c)).

(c) The Company purchased 4% equity interest in Investment E from a related party in May 2021, based on historical cost. The Company has a common director with Investment E.

(d) TFI Note obtained from the Company's major stockholder of ultimate holding company. The amount was secured, interest-bearing, and repayable on demand. The Company issued an exchangeable note of approximately $5.4
million to Giant Wisdom Ventures Limited which bears interest at a fixed rate of 15% per annum and mature on January 16, 2025. The note
is secured by a pledge of 5,000,000 shares of common stock of BKFC owned by the Company. (see Note 11).

**(ii)** **Transactions with related parties** 

In the ordinary course of business, during the three months ended March 31, 2025 and 2024, the Company involved with transactions, either at cost or current market prices and on the normal commercial terms among related parties. The following table provides the transactions with these parties for the periods as presented (for the portion of such period that they were considered related):

---

| | | |
|:---|:---|:---|
|  | **For the three months ended <br> March 31,** | **For the three months ended <br> March 31,** |
|  | **2025** | **2024** |
| Asset management service income (e) | $— | $242 |
| Office rental and operating fees (f) | $1178 | $1118 |
| Legal and professional fees (g) | $— | $250 |
| Interest expense (h) | $635 | $150 |

---

(e) Under the management
 agreements, the Company shall provide management service to the portfolio assets held by two individual close-ended investment private
 funds in the Cayman Islands, which is controlled by the shareholder, for a compensation of asset management service fee income at
 the predetermined rate based on the respective portfolio of asset values invested by the final customers.

(f) Pursuant to the service
 agreement, the Company agreed to pay the office and administrative expenses to the holding company for the use of office premises,
 including, among other things, building management fees, government rates and rent, office rent, and lease-related interest and depreciation
 that were actually incurred by the holding company.

(g) On September 19, 2023, the Company entered into an advisory services agreement with a related company, which owned by the Chairman of the Company, for a monthly fee of approximately $0.8 million. The service will be terminated by either party upon 90 days prior written notice.

(h) The interest expense
 incurred for borrowings from four related parties.

Apart from the transactions and balances detailed above and elsewhere in these accompanying unaudited condensed consolidated financial statements, the Company has no other significant or material related party transactions during the periods presented.

**NOTE 17 — COMMITMENTS AND CONTINGENCIES**

*(a) Contractual Commitments*

*Sale and Purchase Agreement with Sony Life Singapore*

Pursuant to the agreement dated April 5, 2023, entered with Sony Life Singapore Pte. Ltd. ("SLS"), an independent third party, the Company is committed to purchase 100% equity interest in Sony Life Financial Advisers Pte. Ltd. for a cash consideration of SGD 2.5 million (equivalent to approximately $1.88 million). On December 28, 2023, the Company and SLS entered into a second supplementary agreement to extend the closing date of the transaction from December 31, 2023 to March 31, 2024. On March 29, 2024, the Company and SLS entered into a third supplementary agreement to extend the closing date of the transaction from March 31, 2024 to May 9, 2024. Pursuant to the third supplementary agreement, the Company paid SGD 0.25 million (equivalent to approximately $0.19 million) to SLS as the partial payment to cash consideration on April 12, 2024. On May 9, 2024, the Company and SLS entered into a fourth supplementary agreement to extend the closing date of the transaction from May 9, 2024 to May 20, 2024. On June 18, 2024, the Company and SLS entered into a fifth supplementary agreement to extend the closing date of the transaction from May 20, 2024 to July 31, 2024. Pursuant to the fifth supplementary agreement, the Company paid an aggregate of SGD 0.15 million (equivalent to approximately $0.11 million) as the extension fee and indemnification fee in July 2024. On October 3, 2024 and January 30, 2025, the Company and SLS entered into the sixth and seventh supplementary agreements, respectively to extend the closing date of the transaction to February 28, 2025.

Subsequently on March 14, 2025, SLS issued a termination notice to terminate the agreement due to the Company's failure to complete the transaction. On April 21, 2025, the Company and SLS entered into a settlement agreement under which the Company is obligated to pay SLS a settlement amount of SGD 1.85 million (equivalent to approximately $1.4 million) on or before August 31, 2025. In addition, SLS has claimed further damages of SGD 0.1 million (equivalent to approximately $0.07 million) arising from the Company's breach of its obligations under the agreement. Both the settlement amount and the additional damages claim bear interest at a rate of 5.33% per annum, accruing from March 5, 2025, until the date of full payment.

*(b) Legal Matters and Other Contingencies*

From time to time, the Company is party to various claims and legal proceedings incident to the operation of its business. For example, the Company is currently involved in proceedings brought by music companies relating to the payment of royalties for music used on its platform, employment and related matters, consumer class actions and suits alleging, among other things, violations of state consumer protection or privacy laws, and contractual disputes over representations and warranties and post-closing obligations associated with business acquisitions.

In addition, third parties have from time to time claimed, and others may claim in the future, that the Company has infringed their intellectual property rights. The Company is subject to intellectual property disputes, including patent infringement claims, and management expects that it will continue to be subject to intellectual property infringement claims as its services expand in scope and complexity. The Company is not presently involved in any patent infringement and other intellectual property-related lawsuits. The Company may also become more vulnerable to third-party claims as laws such as the Digital Millennium Copyright Act are interpreted by the courts, and the Company becomes subject to laws in jurisdictions where the underlying laws with respect to the potential liability of online intermediaries are either unclear or less favorable. Management believes that additional lawsuits alleging that the Company has violated patent, copyright or trademark laws may be filed against it. Intellectual property claims, whether meritorious or not, are time consuming and often costly to resolve, could require expensive changes in the Company's methods of doing business or the goods it sells, or could require the Company to enter into costly royalty or licensing agreements.

The Company is also subject to consumer claims or lawsuits relating to alleged violations of consumer protection or privacy rights and statutes, some of which could involve potentially substantial claims for damages, including statutory or punitive damages. Consumer and privacy-related claims or lawsuits, whether meritorious or not, could be time consuming, result in costly litigation, damage awards, fines and penalties, injunctive relief or increased costs of doing business through adverse judgment or settlement, or require the Company to change its business practices, sometimes in expensive ways.

The Company is also subject to, or in the future may become subject to, a variety of regulatory inquiries, audits, and investigations across the jurisdictions where it conducts business, including, for example, inquiries related to consumer protection, employment matters and/or hiring practices, marketing practices, tax, unclaimed property and privacy rules and regulations. Any regulatory actions against the Company, whether meritorious or not, could be time consuming, result in costly litigation, damage awards, fines and penalties, injunctive relief or increased costs of doing business through adverse judgment or settlement, require the Company to change its business practices in expensive ways, require significant amounts of management time, result in the diversion of significant operational resources, materially damage its brand or reputation, or otherwise harm its business.

Legal expenses related to defense, negotiations, settlements, rulings and advice of outside legal counsel are expensed as incurred.

The Company establishes an accrued liability for loss contingencies related to legal and regulatory matters when the loss is both probable and reasonably estimable. Those accruals represent management's best estimate of probable losses and, in such cases, there may be an exposure to loss in excess of the amounts accrued. For certain of the matters described above, there are inherent and significant uncertainties based on, among other factors, the stage of the proceedings, developments in the applicable facts of law, or the lack of a specific damage claim.

The Company's accrued liabilities for loss contingencies related to legal and regulatory matters may change in the future as a result of new developments, including, but not limited to, the occurrence of new legal matters, changes in the law or regulatory environment, adverse or favorable rulings, newly discovered facts relevant to the matter, or changes in the strategy for the matter. Regardless of the outcome, litigation and other regulatory matters can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors.

The following describes material legal proceedings in which the Company is involved as of March 31, 2025:

*(i)* *Action Case: CACV 1116/2025 (on appeal from HCA702/2018)* 

On March 27, 2018, the writ of summons was issued against the Company and seven related companies of the former shareholder (the "Defendants") by the Plaintiff. This action alleged the infringement of certain registered trademarks currently registered under the Plaintiff. On February 23, 2023, the Court granted leave for this action be set down for trial of 13 days, and the trial will commence on November 25, 2024. On October 31, 2025, the Court granted judgement in favor of the Plaintiff. On November 28, 2025, the Defendants lodged and served the Notice of Appeal (CACV 1116/2025) to the Court of Appeal. Legal counsel of the Company will continue to handle in this matter. At this stage in the proceedings, it is unable to determine the probability of the outcome of the appeal or the range of reasonably possible loss as the Court is in the process of quantifying the amount of damages.

*(ii)* *Action Case: HCA765/2019* 

On April 30, 2019, the writ of summons was issued against the Company's subsidiary, three related companies and the former directors, stockholders and financial consultant by the Plaintiff. This action alleged the deceit and misrepresentation from an inducement of the fund subscription and claimed for compensatory damage of approximately $2.6 million. On April 18, 2024, the court made an order that the plaintiff shall set the case down for trial on or before July 6, 2024 for a 7 days trial before a judge and there shall be a pre-trial review before the trial judge on a date 12 weeks before the trial. The plaintiff and the defendants agreed on a time extension until August 8, 2024 to set the case down for trial. On August 9, 2024, the Court made an order that the case be adjourned to January 14, 2025 for another case management conference. On February 17, 2025, the Company filed an amended defence to the court and the next case management conference is fixed to be heard on January 6, 2026. The case is on-going and parties have yet to attempt mediation. Legal counsel of the Company will continue to handle this matter. At this stage in the proceedings, it is unable to determine the probability of the outcome of the matter or the range of reasonably possible loss, if any.

*(iii)* *Action Case: HCA2097 and 2098/2020* 

On December 15, 2020, the writs of summons were issued against the Company and the former consultant by the Plaintiff. This action alleged the misrepresentation and conspiracy causing the loss from the investment in corporate bond and claimed for compensatory damage of approximately $1.7 million. The Company previously made approximately $0.8 million as contingency loss for the year ended December 31, 2021. Parties participated in a mediation held on March 25, 2022 and negotiated for settlement through without prejudice correspondence, no settlement was reached. The pre-trial review is fixed to be heard on January 29, 2026 and the 6-days trial is fixed to be heard from May 14 to 21, 2026. The case is on-going and legal counsel of the Company will continue to handle this matter. As of March 31, 2025, the Company accrued a legal provision of approximately $0.8 million as a liability in the condensed consolidated balance sheets.

*(iv)* *Sony Music Entertainment* 

 

In connection with the Merger Transaction, the Company assumed the liabilities of Triller Corp, including the legal contingency accrual stemming from the litigation with Sony Music Entertainment ("Sony") alleging claims for breach of contract, copyright infringement, contributory copyright infringement, and vicarious copyright infringement. The court entered judgement pursuant to stipulation in the amount of approximately $3.6 million requiring Triller Corp to make monthly payments through May 21, 2025. Triller Corp defaulted on the payments and judgement was entered against Triller Corp on August 27, 2024 for the full amount due. As of March 31, 2025, approximately $3.6 million is included as a liability in the condensed consolidated balance sheets.

 

*(v)* *Sony Music Publishing Europe Limited ("SOLAR")* 

In connection with the Merger Transaction, the Company assumed the liabilities of Triller Corp, including the legal contingency accrual stemming from the complaint filed by SOLAR in the London, United Kingdom Circuit Common Court alleging claims of songwriter/producer music publishing rights infringement. A default judgement for £3.8 million was ruled in SOLAR's favor and SOLAR filed an action in the Superior Court of California for the County of Los Angeles for recognition of this foreign country money judgment in the amount of approximately $4.4 million. As of March 31, 2025, this amount is included as a liability in the condensed consolidated balance sheets.

*(vi)* *Music Licensing* 

Triller Corp has outstanding contractual obligations to various record labels, music publishers and performing rights organizations (collectively, "Rightsholders") who have licensed to Triller Corp the right to use sound recordings and musical compositions in connection with the operation of the Triller app and other aspects of the Company's business. As of March 31, 2025, the Company has recorded liabilities in the amount of approximately $30.0 million for unpaid amounts owed under its music licenses. Triller Corp is also involved in various legal proceedings and has received threats of litigation from Rightsholders. Triller Corp believes it may be or become liable to Rightsholders for additional amounts such as interest, penalty fees, attorneys' fees, copyright infringement damages and other amounts, but is currently unable to estimate the probability of loss associated with these actions or the range or reasonably possible losses, if any, or the impact such losses may have on the Company's results of operations, financial condition or cash flows.

*(vii)* *Fox Plaza Lease* 

In connection with the Merger Transaction, the Company assumed the liabilities of Triller Corp, including the legal contingency accrual stemming from the ongoing litigation with Fox Plaza, LLC due to an alleged breach of a commercial office lease agreement as a result of an alleged failure to pay rents under the agreement. The plaintiff seeks damages in excess of approximately $3.5 million, plus attorney's fees, costs of suit, and additional damages to be proven at trial. Triller Corp intends to vigorously defend itself in this matter. The Company has accrued approximately $1.8 million as a liability pertaining to this claim on the condensed consolidated balance sheets. It is reasonably possible that the potential loss may exceed the accrued liability amount.

*(viii)* *Concentrix Daksh* 

In connection with the Merger Transaction, the Company assumed the liabilities of Triller Corp, including the legal contingency accrual stemming from the arbitration with Concentrix Daksh Services India Private Ltd. ("Concentrix"). Concentrix alleges wrongful early termination of a services agreement and seeks damages of approximately $2.0 million in lost profits, plus interest and fees. The Company has accrued approximately $2.0 million as a liability pertaining to this matter. While the Company intends to defend the claim vigorously, management believes the recorded amount represents the probable loss as of March 31, 2025.

*(ix)* *Epic Sports & Entertainment* 

In connection with the Merger Transaction, the Company assumed the liabilities of Triller Hold Co LLC and Triller Fight Club LLC related to litigation with Epic Sports & Entertainment, Inc. ("Epic") for alleged breach of a settlement agreement. Epic initially claimed damages of approximately $1.8 million, and recent settlement discussions indicate a potential settlement range of approximately $0.6 to $2.0 million. As of March 31, 2025, the Company accrued a legal provision of approximately $1.9 million as a liability in the condensed consolidated balance sheets.

*(x)* *Samsung Arbitration Award* 

In connection with the Merger Transaction, the Company assumed the liabilities of Triller Corp, including the legal contingency accrual stemming from the arbitration with Samsung Electronics Co., Ltd due to a breach of a commercial agreement and failure to pay the amounts owed under the contract. The U.S. District Court for the Central District of California confirmed the award and entered a judgment of approximately $2.6 million in May 2024, accruing interest at $368.43 per day, at a rate of 5.17% per annum until repaid. A writ of execution was issued on August 2, 2024, and a Judgment Debtor Examination is scheduled for February 24, 2025. The Company provided financial records in December 2024 in response to a subpoena. As of March 31, 2025, the Company accrued approximately $3.0 million as a liability in the condensed consolidated balance sheets.

*(xi)* *Prem Parameswaren* 

In connection with the Merger Transaction, the Company assumed potential liabilities related to claims asserted by Prem Parameswaran, the former Chief Executive Officer of Triller Corp for alleged unpaid compensation. To avoid litigation, the parties reached an agreement in principle for a settlement consisting of $500,000 in cash and 625,000 stock units, subject to approval by AGBA Group Holding Limited. As of March 31, 2025, the Company has accrued approximately $2.4 million as a liability pertaining to this matter, representing the probable settlement amount.

*(xii)* *Triller Legacy, LLC Settlement Agreement* 

On July 26, 2024, Triller Hold Co, LLC and Triller Acquisition, LLC entered into a settlement agreement with Triller Legacy, LLC ("Legacy"), original sellers of Triller Corp, regarding the 2019 acquisition of Triller Corp from Legacy. The Company agreed to issue 3.89 million shares of Series A common stock to Legacy. Legacy intends to sell 1.75 million shares for a minimum return of approximately $7.0 million by the end of March 31, 2025. The Company must compensate Legacy for any shortfall of share sales below $7.0 million. The Company has the option to purchase up to 1.75 million shares from Legacy at $4.00 per share through December 31, 2024 and $4.75 per share through March 31, 2025. The Company can also opt to pay Legacy $7.0 million. The Company has included the estimated guaranteed payment liability in its accounts payable and legal contingencies.

*(xiii)* *Bobby Sarnevesht* 

The Company is subject to claims asserted by Bobby Sarnevesht for alleged breach of a merger agreement and related contracts. The Company disputes the claims and the matter remains unresolved. As of March 31, 2025, the Company has accrued approximately $3.0 million as a liability pertaining to this dispute, which represents management's best estimate of the probable loss.

*(xiv)* *YA II PN, LTD. v. Triller Group Inc.; Triller Corp.; Triller Hold Co LLC; Convoy Global Holdings Limited, Index No. 659314/2024 in the New York Supreme Court, Commercial Division* 

On November 26, 2024, Yorkville ("Plaintiff") initiated litigation against the Company, Triller Corp., Triller Hold Co LLC, and Convoy Global Holdings Limited ("Defendants") by filing a motion for summary judgment in lieu of a complaint pursuant to NY CPLR 3213 (the "Motion"), seeking a judgment finding Defendants liable for all amounts allegedly owed under the convertible promissory note (the "Note"), dated June 28, 2024, including interest, plus costs, legal fees, and expenses incurred by Yorkville in enforcing the Note's terms. On February 24, 2025, Defendants filed their opposition to the Motion, arguing that the Motion should be denied because Plaintiff's reliance on CPLR 3213 was improper and because, even if Plaintiff's reliance on CPLR 3213 were proper, triable disputes of fact preclude summary judgment in Plaintiff's favor. On March 7, 2025, Plaintiff filed a reply in support of the Motion. On May 19, 2025, Yorkville's initial motion for summary judgment in lieu of complaint, seeking immediate payment, was denied by the Supreme Court of the State of New York, New York County. The court determined that Yorkville's right to payment depended on a detailed analysis of obligations under multiple intertwined documents, including the Yorkville Convertible Promissory Note, Second A&R SEPA, Registration Rights Agreement, and Pledge Agreements, thus converting the case to a plenary action. Yorkville filed a notice of appeal on May 28, 2025 and a new motion for summary judgment on July 1, 2025, asserting the Yorkville Convertible Promissory Note's maturity date of June 28, 2025 (the "Maturity Date").

On June 20, 2025, the Company transferred 3,000,000 shares of common stock of BKFC, previously pledged by Triller Hold Co LLC as collateral pursuant to the Amended and Restated Pledge Agreement, dated June 28, 2024, between Triller Hold Co LLC and Yorkville, as partial repayment. The case does not have a trial date set. Defendants intend to litigate the case until a resolution is reached.

On December 3, 2025, the Plaintiff filed responses and objections (the "Responses and Objections") to the Defendants' first set of interrogatories dated November 3, 2025 to the Supreme Court of the State of New York County of New York (Index no.: 659314/2024). Pursuant to the Responses and Objections, the Plaintiff stated its claims and contentions with respect to its damage resulting from the event of default that occurred under the Note when the Defendants failed to pay all amounts due by the Maturity Date. The total amount owed under the Note, including interest, plus costs, legal fees, and expenses incurred by Yorkville less the value of BKFC's shares is approximately $38.1 million. Yorkville further stated that it continues to accrue additional damages with each passing day that the obligations under the Note and guaranties remain unpaid. The case is on-going and legal counsel of the Company will continue to handle this matter. At this stage in the proceedings, it is unable to determine the probability of the outcome of the matter or the range of reasonable possible loss, if any.

*(xv)* *13080 Advisors LLC v. Triller Group, Inc., Jams Reference No. 5220008039 (Los Angeles County, California)* 

On December 18, 2024, 13080 Advisors LLC ("Claimant") submitted a Notice of Arbitration and Demand for Arbitration ("13080 Arbitration Demand") to JAMS to assert that Triller and TAG Holdings Limited (collectively as "Respondents") have breached their alleged duties to Claimant under the following alleged agreements: (1) a partially executed document entitled "Grant Agreement for S-8 Registered Shares" dated March 14, 2024, and (2) a partially executed document entitled "Consulting Services Agreement" also dated March 14, 2024. The 13080 Arbitration Demand asserts four purported claims for relief: breach of contract, negligent misrepresentation, specific performance and declaratory relief. On February 18, 2025, Respondents submitted to JAMS a motion to dismiss all the claims for relief asserted in the 13080 Arbitration Demand along with a motion to strike Claimant's requests for punitive damages. This motion remains pending and no arbitrator has been appointed. The case is on-going and legal counsel of the Company will continue to handle this matter. At this stage in the proceedings, it is unable to determine the probability of the outcome of the matter or the range of reasonable possible loss, if any.

*(xvi)* *Robert E. Diamond Jr.et al. v. Triller Group, Inc., Case No. 25-cv-00129 (PAE) (S.D.N.Y.)* 

On January 7, 2025, Robert E. Diamond Jr ("Diamond"), the former chairman of Triller's board of directors and Atlas Merchant Capital LLC (collectively as "Plaintiffs"), an advisory services company under Diamond's control filed a lawsuit in federal district court in Manhattan, New York to allege that Triller has failed to pay over or grant to Plaintiffs certain cash amounts and equity awards to which Plaintiffs were entitled pursuant to various agreements between Plaintiffs and Triller. Plaintiffs claim that they are entitled to over $5.0 million in cash compensation and over 6.0 million shares of Triller's common stock. On February 28, 2025, Triller filed a partial motion to dismiss the scope of Plaintiffs' claims. This motion is now pending before the court. The case is on-going and legal counsel of the Company will continue to handle this matter. At this stage in the proceedings, it is unable to determine the probability of the outcome of the matter or the range of reasonable possible loss, if any.

**NOTE 18 — SUBSEQUENT EVENTS**

In accordance with ASC Topic 855, "*Subsequent Events*", which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before the unaudited condensed consolidated financial statements are issued, the Company has evaluated all events or transactions that occurred after March 31, 2025, up to the date that the unaudited condensed consolidated financial statements were available to be issued.

(i) In April 2025, the Company issued an aggregate of 603,839 shares of common stock to the directors and officers of the Company under the Share Award Scheme, whose shares were vested in 2023.

(ii) In April 2025, the Company issued an aggregate of 823,642 shares of common stock to the employees of the Company to compensate for the contributions of their services and performance, at a price range from $1.072 to $2.532 per share.

(iii) In April 2025, the Company issued an aggregate 304,478 shares of common stock to the employees of Triller Corp. under the share award scheme of Triller Corp. <br>In April 2025, the Company issued 3,227,500 shares of common stock to 13080 Advisors LLC for the first installment.

(iv) On April 11, 2025, the Company entered into a Convertible Note Purchase Agreement ("NPA") with an independent third party pursuant to which the Company (i) issues a convertible note in the principal amount of approximately $10.0 million (the "Note"), (ii) issues a warrant to purchase 10,000,000 shares of the Company's common stock at an exercise price of $1.00 per share (the "Warrant"), (iii) executes and delivers a registration rights agreement, and (iv) executes and delivers a termination agreement to terminate a securities purchase agreement dated January 24, 2025. The Note matures in two years after its date of issuance with an interest rate of U.S. Prime Rate plus 2% per annum payable at maturity. The Note will be convertible into the Company's common stock at a 20% discount to the 5-day daily dollar volume weighted average price of the common stock of the Company. The Warrant will be exercisable in a year after the Company's next qualified equity financing with a term of five years.

(v) On April 17, 2025, the
 Company received a written notice (the "Notice") from Nasdaq, notifying that the Company failed to comply with Nasdaq
 Listing Rule 5250(c)(1) as the Company failed to timely file its Annual Report on Form 10-K for the year ended December 31, 2024.
 The Notice had no immediate effect but, before June 16, 2025, the Company was required to submit a plan to Nasdaq to regain compliance
 with the Nasdaq Listing Rule. If Nasdaq accepts the Company's plan, Nasdaq will grant the Company up to 180 calendar days from
 the filing due date to regain compliance. Otherwise, after the date, subject to other requirements and conditions, the Company may
 proceed to delisting procedures. On August 19, 2025, Nasdaq accepted the Company's plan to regain the compliance by October
 13, 2025.

(vi) On May 20, 2025, the
 Company received a written notice (the "Notice") from Nasdaq, notifying that the Company failed to comply with Nasdaq
 Listing Rule 5250(c)(1) as the Company failed to timely file its quarterly report on Form 10-Q for the period ended March 31, 2025.
 The Notice had no immediate effect but, before June 16, 2025, the Company was required to submit a plan to Nasdaq to regain compliance
 with the Nasdaq Listing Rule. If Nasdaq accepts the Company's plan, Nasdaq will grant the Company up to 180 calendar days from
 the filing due date to regain compliance. Otherwise, after the date, subject to other requirements and conditions, the Company may
 proceed to delisting procedures. On August 19, 2025, Nasdaq accepted the Company's plan to regain the compliance by October
 13, 2025.

(vii) On June 20, 2025, Yorkville effected a foreclosure under the Amended and Restated Pledge Agreement, dated June 28, 2024, between Triller Hold Co LLC and Yorkville (the "Triller Pledge Agreement"). This action was undertaken by Yorkville following its allegations of various events of default by the Company under the terms of the Yorkville Convertible Promissory Note, dated June 28, 2024, and other related transaction documents, including the Second A&R SEPA. Yorkville had previously sought to accelerate payment of all amounts due under the Yorkville Convertible Promissory Note. Although the Company has not received a formal notice of foreclosure from Yorkville, the Company became aware through a transfer agent statement that 3,000,000 shares of common stock of BKFC, previously pledged by Triller Hold Co LLC as collateral, were transferred to Yorkville on June 20, 2025. These 3,000,000 shares represented a 17.2% ownership interest in BKFC as specifically pledged to Yorkville. As a direct result of this transfer, the Company's beneficial ownership in BKFC declined from 56.93% to 38.91% of BKFC's outstanding common shares. Following this change in ownership, the majority stockholders of BKFC approved amendments to BKFC's certificate of incorporation and its Stockholders Agreement, which included the removal of the Company's board designation rights. These amendments became effective on July 1, 2025. Consequently, the Company no longer holds a majority stake in BKFC and has lost its contractual rights to appoint directors to the BKFC board. As a result of losing control over BKFC, BKFC will be deconsolidated from the Company's unaudited condensed consolidated financial statements as of July 1, 2025, the effective date of the amended and restated Stockholders Agreement. The Company is currently evaluating the accounting and reporting implications of this deconsolidation, which may include potential impairment charges, recognition of a gain or loss on deconsolidation, and any required restatement of prior period comparative information.

(viii) On June 30, 2025, the Company received a written notice (the "Notice") from Nasdaq, notifying that the Company had publicly traded under $1.00 per share for a period of 30 consecutive trading days or more, which failed to comply with Nasdaq Listing Rule 5550(a)(2) and Nasdaq Listing Rule 5810(c)(3)(A). The Notice had no immediate effect but, before December 29, 2025, the Company was required to regain compliance by trading at least $1.00 per share for a minimum of 10 consecutive trading days. Otherwise, after the date, subject to other requirements and conditions, the Company may proceed to delisting procedures. As of the date of the unaudited condensed consolidated financial statements, the Company is still consecutively trading under $1.00, directors of the Company are investigating actions, where appropriate, to regain the compliance, by December 29, 2025.

(ix) On October 14, 2025, the Company received
 a delisting determination letter (the "Determination Letter") from Nasdaq indicating that, unless the Company timely
 requests a hearing before the Nasdaq Hearings Panel (the "Panel"), the Company's common stock would be subject
 to suspension and delisting from the Nasdaq Capital Market at the opening of business on October 23, 2025 due to the Company's
 non-compliance with Nasdaq's filing requirements set forth in Listing Rule 5250(c)(1) (the "Listing Rule")
 for its failure to timely file its Form 10-K for the year ended December 31, 2024, and its Forms 10-Q for the periods ended March
 31, 2025 and June 30, 2025, respectively. The Company has requested to appeal the delisting determination and will attend the
 hearing to demonstrate its ability to regain and sustain long-term compliance. On November 17, 2025, the Company received
 an additional delisting determination letter (the "Additional Determination Letter") from Nasdaq indicating that since
 it failed to timely file its Form 10-Q for the period ended September 30, 2025, this serves as an additional basis for delisting. Following a hearing held on November 25,
 2025, the Panel has granted the Company an exception period subject to the Company satisfying the following conditions:

● File 2024 Form 10-K and delinquent Forms 10-Q for the quarters ended March 31, June 30, and September 30, 2025 on or before December 24, 2025;

● Regain compliance with the $1.00 minimum bid-price requirement on or before February 27, 2026; and

● File its 2025 Form 10-K on or before March 31, 2026.

(x) On December 26, 2025,
 the Company received a determination letter from the Panel confirming the suspension trading on the Nasdaq Stock Market effective
 at the opening of the market on December 30, 2025 and delisting of the Company's securities. This decision stems from the Company
 not having been able to file two periodic reports by a deadline of December 24, 2025 set by the Panel.

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

References in this report (the "Quarterly Report") to "we," "us", "the Group" or the "Company" refer to Triller Group Inc. References to our "management" or our "management team" refer to our officers and directors. The following discussion and analysis of the Company's financial condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto contained elsewhere in this Quarterly Report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

**Special Note Regarding Forward-Looking Statements**

This Quarterly Report includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. All statements, other than statements of historical fact included in this Form 10-Q including, without limitation, statements in this "Management's Discussion and Analysis of Financial Condition and Results of Operations" regarding the Company's financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements. Words such as "expect," "believe," "anticipate," "intend," "estimate," "seek" and variations and similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to future events or future performance, but reflect management's current beliefs, based on information currently available. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors section included in our 2023 Annual Report filed with the U.S. Securities and Exchange Commission (the "SEC"). The Company's securities filings can be accessed on the EDGAR section of the SEC's website at www.sec.gov. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

**Overview**

Triller Group Inc. is formed in the State of Delaware, on October 15, 2024, which was established to domicile its legal jurisdiction from British Virgin Islands to the State of Delaware.

*Nasdaq Listing Extension*

We received a delisting determination letter on October 14, 2025 and an additional delisting determination letter on November 17, 2025 from the Listing Qualifications Staff (the "Staff") of the Nasdaq Stock Market LLC ("Nasdaq"), due to the our non-compliance with Nasdaq's filing requirements set forth in Listing Rule 5250(c)(1) (the "Listing Rule") for its failure to timely file the Form 10-K for the year ended December 31, 2024, and the Forms 10-Q for the periods ended March 31, 2025, June 30, 2025 and September 30, 2025, respectively.

We requested a hearing before the Nasdaq Hearings Panel (the "Panel") on October 21, 2025, and the hearing was held on November 25, 2025. On December 3, 2025, we received a decision letter from the Staff of Nasdaq, indicating that based on the information presented at the hearing, the Panel has determined to grant us an exception period to continue its listing on Nasdaq subject to the conditions that: (1) on or before December 24, 2025, we shall demonstrate compliance with the Listing Rule; (2) on or before February 27, 2026, we shall demonstrate compliance with the $1.00 per share minimum bid price requirement; and (3) on or before March 31, 2026, we shall file the Form 10-K for the year ended December 31, 2025. It is a requirement during the exception period that we provide prompt notification of any significant events that occur during this time that may affect our compliance with Nasdaq requirements.

**Business overview**

We are a global, artificial intelligence ("**AI**") powered technology platform ("**Technology Platform**") that serves a broad constituency of Creators and Brands around the world. "**Creators**" include influencers, artists, athletes, other individuals and public figures that utilize or have utilized our Technology Platform to create and publish content. Numerous famous Creators use our Technology Platform, including influencers like Charli D'Amelio and Bryce Hall and music artists like The Weeknd. "Brands" are companies, products or product lines which are active on our Technology Platform and utilize or have utilized one or more of our products or services offered through our Technology Platform ("**Direct Brands**"), or companies, products or product lines whose associated data we track, report on and make available to our clients as part of one or more of our product offerings ("**Tracked Brands**," and collectively with Direct Brands, "**Brands**"). Brands that have utilized or continue to utilize our platform include McDonalds, Pepsi, Walmart, L'Oréal, Puma, Charmin and Major League Baseball.

We help both Creators and Brands build relationships with their audiences to create awareness, drive content consumption, generate commerce and build culture. Our Triller app is a short-form video app similar to TikTok, Instagram Reels, YouTube shorts and other video apps that allow users to access both user generated and professionally generated content from Creators around the world. Since our inception through September 30, 2023, we have raised more than $420 million in capital and established more than 327 million Consumer Accounts on the Triller app and a total of 436 million Consumer Accounts on our Technology Platform. "Consumer Accounts" are included when consumers create accounts on a Triller brand or owned property and also when we employ our Technology Platform to create accounts on behalf of our Brands and Creators. We define Consumer Accounts as the total number of individual Consumer Accounts recorded in databases across the Triller app and TrillerTV (whether they are active or inactive on our Technology Platform) at or around the time of measurement, that we track and that are able to benefit from the services and features offered through our Technology Platform during the reported period. Users that simply accessed or viewed our content or partner content on our platform or any other social media platform are not included in the total number of Consumer Accounts above. Consumer Accounts that were created prior to acquisition by us are not included in the total number of Consumer Accounts above. Recently, we elected to take a proactive approach to the way in which we report our Consumer Accounts, which we believe is uncommon in our industry. While we believe that many social media companies include a significant number of "bot" accounts or "duplicate" accounts in their user metrics, we undertook a robust process to purge as many duplicate and bot accounts as practicable with our resources and in doing so we purged in excess of 200 million Consumer Accounts from our total user accounts metric.

Alongside the Triller app, Triller has dramatically expanded its portfolio of offerings through organic growth and strategic acquisitions becoming a diversified Technology Platform for the creation, distribution, measurement and monetization of digital, live and virtual content. It also produces content under its own and third-party Brands, including trendsetting music, sports, lifestyle, fashion and entertainment media that creates cultural moments, attracts users to Triller's offerings and drives social interaction that serves as a cultural wellspring across digital society.

We operate within the global digital content marketplace, which is estimated to reach $577.4 billion in 2023 according to Statistica's August 2023 report on worldwide digital media, and we focus our efforts on the $250 billion creator economy, as forecasted in a recent Goldman Sachs report on the creator economy. Goldman Sachs Research estimated the creator economy could reach $480 billion by 2027 in its April 2023 report titled "The creator economy could approach half-a-trillion dollars by 2027." Our revenue was $4.8 million and $7.7 million in the three months ended March 31, 2025 and 2024. We have incurred net losses in each year since our inception, including $53.1 million and $8.1 million for the three months ended March 31, 2025 and 2024, respectively.

Through our subsidiaries in Hong Kong, we are also a leading wealth management and healthcare institution based in Hong Kong servicing over 400,000 individual and corporate customers. We offer the broadest set of financial services and healthcare products in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) through a tech-led ecosystem, enabling clients to unlock the choices that best suit their needs.

In addition to operating our Technology Platform, we currently operate in four market-leading businesses: our Platform Business, Distribution Business, Healthcare Business, and Fintech Business (collectively as "Financial Services Business") and offer unique product and service offerings:

B2B: tech-enabled broker management platform for advisors ("**Platform Business**"); and

B2C: market leading portfolio of wealth and health products ("**Distribution Business**").

We also have a market leadership in our healthcare business through our 4% stake in and a strategic partnership with HCMPS. It is one of the most reputed healthcare brands in Hong Kong. It has a network of over 700 healthcare service providers.

Finally, we are an established operator and successful investor in the FinTech industry. We have carefully built out investment positions in FinTech, WealthTech and HealthTech businesses, applying lessons learned from our own distribution, platform and healthcare businesses.

Our largest distribution channel is the FA Business, operating under the brand name Focus. With its large salesforce of financial advisors, "Focus" provides a wide range of financial products and independent advisory services to individual and corporate customers, primarily in connection with life insurance products. Our FA Business has been the clear market leader in the insurance brokerage industry in Hong Kong for decades, building up a large and highly productive salesforce. As of March 31, 2025, there were around 474 financial advisors at "Focus", organized into 9 sales teams. Each team is led by a "tree head", responsible for managing the financial advisors within their teams.

In addition to the FA Business, we continued to expand our distribution footprint with the establishment and expansion of a number of additional distribution channels, collectively known as our Alternative Distribution Business. These distribution channels are targeted at specific customer segments and/or capturing specific distribution opportunities.

We have continued to make significant investments into developing and expanding our financial advisors salesforce, broadening and deepening the product range, as well as upgrading the supporting infrastructure. Our infrastructure not only supports the financial consultants in engaging with their customers, it also provides extensive operational support in relation to the processing of transactions, associated payment flows, as well as after-sales services. Building our infrastructure required substantial investments into technological, operational and financial systems, as well as the development of comprehensive operational and support teams (operations support, customer services, payments, etc.). Since many of the financial products offered to our customers are regulated, on top of the various operational requirements, we have built significant internal capabilities in the areas of risk and internal control, as well as legal and compliance to ensure an appropriate level of regulatory compliance and supervision.

As a result of our efforts to expand our distribution capabilities and improve our supporting infrastructure, we have successfully developed these inter-related strategic assets:

● Vast customer base in Hong Kong and growing customer base in Mainland China.

● State-of-the-art supporting infrastructure.

● Relationships with and access to a broad range of leading global financial product providers.

● Deep market knowledge and understanding.

● Highly productive and well-trained salesforce.

We will continue to capitalize on these core strategic assets and match them with the emerging opportunities in our three core industries (life insurance, wealth management and healthcare).

We will continue to widen our distribution footprint and actively explore further opportunities to develop partnerships and generate customer leads on the ground in Mainland China, as well as refining our abilities to service our customer base. We expect sales volumes to return to the levels previously recorded, prior to the pandemic period, especially with the re-opening of the Mainland border and the ongoing integration of Hong Kong into the Greater Bay area.

**Results of Operations**

 

*Comparison of the Three Months Ended March 31, 2025 and 2024:*

The following tables set forth our results of operations by segments presented in U.S. dollars (in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Three Months ended March 31, 2025** | **For the Three Months ended March 31, 2025** | **For the Three Months ended March 31, 2025** | **For the Three Months ended March 31, 2025** | **For the Three Months ended March 31, 2025** | **For the Three Months ended March 31, 2025** |
|  | **Social<br> media** | **Sports streaming** | **Financial services** | **Corporate** | **Elimination** | **Consolidated** |
| Revenue |  |  |  |  |  |  |
| Loans interest income |  |  | 18 |  |  | 18 |
| Commission |  |  | 4416 |  |  | 4416 |
| Recurring asset management service fees |  |  | 347 |  |  | 347 |
| Advertising revenue |  |  |  |  |  |  |
| SaaS fees |  |  |  |  |  |  |
| Subscription fees and paid-per-view fees |  |  |  |  |  |  |
| Total revenue |  |  | 4781 |  |  | 4781 |
| Operating expenses |  |  |  |  |  |  |
| Commission expense |  |  | (2521) |  |  | (2521) |
| Research and development expense | (1189) | (187) | (45) | (281) |  | (1702) |
| Personnel and benefit expense | (3889) | (621) | (75) | (30379) |  | (34964) |
| Legal and professional fee |  |  |  | (5838) |  | (5838) |
| Office and operating fee, related party |  |  |  | (1178) |  | (1178) |
| Provision for allowance for expected credit losses |  |  | (47) |  |  | (47) |
| Other general and administrative expenses | (4400) | 109 | (1689) | 3247 |  | (2733) |
| Total operating expenses | (9478) | (699) | (4377) | (34429) |  | (48983) |
| Other income (expense) |  |  |  |  |  |  |
| Interest income | 165 |  | 2 |  |  | 167 |
| Interest expense | (2418) | (356) | (161) | (1868) |  | (4803) |
| Foreign exchange gain, net |  |  | 1145 |  |  | 1145 |
| Bad debts written-off | (5441) |  |  |  |  | (5441) |
| Sundry income |  |  | 106 |  |  | 106 |
| Total other income (expense), net | (7694) | (356) | 1092 | (1868) |  | (8826) |
| Income tax expense |  |  | (24) |  |  | (24) |
| Net income (loss) | (17172) | (1055) | 1472 | (36297) |  | (53052) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months ended March 31, 2024** | **Three Months ended March 31, 2024** | **Three Months ended March 31, 2024** | **Three Months ended March 31, 2024** |
|  | **Financial<br> services** | **Corporate** | **Elimination** | **Consolidated** |
| Revenue |  |  |  |  |
| Commission | $6723 |  |  | $6723 |
| Asset management service fees | 892 |  |  | 892 |
| Loans interest income | 41 |  |  | 41 |
| Total revenue | 7656 |  |  | 7656 |
| Operating expenses |  |  |  |  |
| Commission expense | (4446) |  |  | (4446) |
| Sales and marketing expense | (483) |  |  | (483) |
| Research and development expense | (458) |  |  | (458) |
| Personnel and benefit expense | (1848) | (4211) |  | (6059) |
| Legal and professional fee | (625) |  |  | (625) |
| Legal and professional fee, related party |  | (250) |  | (250) |
| Office and operating fee, related party | (573) | (545) |  | (1118) |
| Provision for allowance for expected credit losses | (836) | (155) |  | (991) |
| General and administrative | (486) | (394) |  | (880) |
| Total operating expenses | (9755) | (5555) |  | (15310) |
| Other income (expense), net |  |  |  |  |
| Interest income | 12 |  |  | 12 |
| Interest expense | (56) | (151) |  | (207) |
| Investment loss, net |  | (37) |  | (37) |
| Others |  | (136) |  | (136) |
| Total other expense, net | (44) | (324) |  | (368) |
| Income tax expense | (38) |  |  | (38) |
| Net loss | $(2181) | (5879) |  | (8060) |

---

***Revenues***

The following table summarizes the major operating revenues for the three months ended March 31, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended<br> March 31,** | **Three months ended<br> March 31,** | | |
|  | **2025** | **2024** | ***Variance*** | ***Variance*** |
|  | **(US$ in thousands)** | **(US$ in thousands)** | *$* | *%* |
| **Business segment** |  |  |  |  |
| Social media | $— | $— |  |  |
| Sports streaming |  |  |  |  |
| Financial services | 4781 | 7656 |  | *(37.55)* |
| TOTAL | $4781 | $7656 |  | *(37.55)* |

---

*Social media and Sports streaming*

Since October 2024, we completed the merger transaction pursuant to the merger agreement, through which we acquired all of the equity interests of Triller Corp. Following the acquisition, Triller Corp.'s operations have been consolidated into our operations, consisting of two major business segments: social media and sports streaming.

Social media business segment mainly comprises of revenues from the provision of advertising services and SaaS services. The technology platform integrated from Triller Corp. provides brands a variety of advertising services including AI-powered conversations and the augmentation and execution of advertising campaigns. In additions, the SaaS platform provides our customers a detailed dashboard to measure all creator driven marketing campaigns as well as a marketplace allowing e-commerce brands to automate the process of on-boarding creators with per-transaction incentives for enabling e-commerce transactions. Revenue from the SaaS platform subscriptions is recognized ratably over the life of a subscription.

Sports streaming business segment mainly comprises of revenues from subscriptions for streaming services and pay-per-view ("PPV") services for premium content and events. The technology platform provides streaming services that acquires content licensing from various sport and entertainment franchises to provide a content rich environment for both subscription based and pay-per-view consumption both across a variety of platforms including mobile phones, tablets, PCs, streaming devices, set-top-boxes and connected TVs. Revenue from streaming subscriptions is recognized ratably over the life of a subscription and revenue from streaming pay-per-view events is recognized at the time the event airs.

No income from social media and sports streaming business segments are generated during the three months ended March 31, 2025 and 2024. The Company generated minimal operations in these two segments during the three months ended March 31, 2025.

*Financial services*

Financial services business segment mainly comprises of commission income, recurring assets management service income, and interest income. Income from financial services decreased by $2.9 million or 37.55% from $7.7 million for the three months ended March 31, 2024 to $4.8 million for the three months ended March 31, 2025. The decrease in revenue is primarily attributed to the economic recession and outward migration in Hong Kong.

 ****

***Operating Expenses***

***Commission expense***

 ****

The commission expense related to financial services decreased by $1.9 million, or 43.30% from $4.4 million for the three months ended March 31, 2024 to $2.5 million for the three months ended March 31, 2025. As a result of the decrease in revenue associated with the financial services, commission expense decreased correspondingly.

 ****

*Sales and Marketing Expense*

Sales and marketing expense decreased by $0.5 million or 100% from $0.5 million for the three months ended March 31, 2024 to nil for the three months ended March 31, 2025. The decrease was mainly attributed to lower spending associated with "AGBA" corporate branding.

 

 

*Research and Development Expense*

 

Research and development expense increased by $1.2 million, or 271.62% from $0.5 million for the three months ended March 31, 2024 to $1.7 million for the three months ended March 31, 2024. The increase was primarily due to the additional expense incurred by Triller Corp. and its subsidiaries, which was acquired on October 15, 2024.

*Personnel and benefit expenses*

Personnel and benefit expenses primarily consist of personnel-related costs and benefits and stock-based compensation costs for our administrative, legal, human resources, information technology, corporate development, finance and accounting employees and executives.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended<br> March 31,** | **Three months ended<br> March 31,** | | |
|  | **2025** | **2024** | ***Variance*** | ***Variance*** |
|  | **(US$ in thousands)** | **(US$ in thousands)** | $*%* | *%* |
| Personnel and benefit | $7789 | $4526 |  | *72.09* |
| Stock-based compensation | 27175 | 1533 |  | *1672.67* |
| TOTAL | $34964 | $6059 |  | *477.06* |

---

Personnel and benefit cost increased by $3.3 million, or 72.09% from $4.5 million for the three months ended March 31, 2024 to $7.8 million for the three months ended March 31, 2025. The increase was primarily attributable to the additional headcount from the acquisition of Triller Corp. which was completed on October 15, 2024.

Stock-based compensation for executive directors and employees increased by $25.6 million for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. The increase was primarily due to the settlement of accrued salaries to certain executive directors and employees of the Company and the amortization of the fair value of restricted share units. The fair value of the restricted share units is recognized over the period based on the derived service period (usually the vesting period), on a straight-line basis.

 ****

***Legal and professional fee***

Legal and professional fees mainly consisted of certain professional consulting services in legal, audit, accounting and taxation, and others.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended<br> March 31,** | **Three months ended<br> March 31,** | | |
|  | **2025** | **2024** | ***Variance*** | ***Variance*** |
|  | **(US$ in thousands)** | **(US$ in thousands)** | $*%* | *%* |
| Legal and professional fee | $4262 | $660 |  | *545.76* |
| Stock-based compensation | 1576 | 215 |  | *633.02* |
| TOTAL | $5838 | $875 |  | *567.20* |

---

Legal and professional fees increased by $3.6 million, or 545.76%, from $0.7 million for three months ended March 31, 2024, to $4.3 million for three months ended March 31, 2025. The increase was primarily attributable to the additional legal and professional fees incurred by Triller Corp. and its subsidiaries, which was acquired on October 15, 2024.

Consulting fees under stock-based compensation increased by $1.4 million or 633.02% for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. The increase was mainly attributable to the increase in corporate strategic consultancy and business marketing service rendered by certain third party consultants.

***Provision for allowance for expected credit losses***

In accordance with Accounting Standards Codification ("ASC") Topic 326 *"Credit Losses – Measurement of Credit Losses on Financial Instruments"* (ASC Topic326), the Company utilizes the current expected credit losses ("CECL") model to determine an allowance that reflects its best estimate of the expected credit losses on accounts receivable, loans receivable, notes receivable, and deposits, prepayments and others receivable which is recorded as a liability to offset the receivables. For the three months ended March 31, 2025 and 2024, the aggregated provision for allowance for expected credit losses on accounts receivable, loans receivable, notes receivable, and other receivables was $0.05 million and $1.0 million, respectively.

 

 ****

***Other general and administrative expenses***

Other general and administrative expenses of social media and sports streaming segments primarily consist of professional service fees, business process outsourcing costs, music licensing, and insurance premiums.

Other general and administrative expenses of financial services and corporate segments primarily consist of rent and facilities expenses allocated based upon total direct costs, depreciation and amortization expenses, and other corporate expenses that are not allocated to the above expense categories.

The aggregate other general and administrative expenses increased by $1.9 million, or 210.57% from $0.9 million for the three months ended March 31, 2024 to $2.7 million for the three months ended March 31, 2025. The increase was primarily attributable to the additional expenses incurred by Triller Corp. and its subsidiaries, which was acquired on October 15, 2024.

***Other Income (Expense), net***

Other income (expense), net consist of interest income, foreign exchange gain, net, sundry income and offset by interest expense, bad debts written-off, written-off of accounts payable and other current liabilities, and investment loss, net.

For the three months ended March 31, 2025 and 2024, the aggregate other expense, net increased by $8.5 million or 2,298.37%. The increase was mainly attributable to the increase in interest expense of $4.6 million, and bad debts written-off of $5.4 million, offset by the increase in foreign exchange gain, net of $1.1 million.

***Net Loss***

Net loss increased by $45.0 million, or 558.23% for the three months ended March 31, 2025, as compared to March 31, 2024. The increase was primarily due to the sale decline and increase in operating expenses of $33.7 million and increase in other expense, net of $8.5 million.

**Liquidity and Capital Resources**

 ****

***Sources of Liquidity***

We have a history of operating losses and negative operating cash flows. For the three months ended March 31, 2025, we reported a net loss of $53.1 million and reported a negative operating cash flow of $16.2 million. As of March 31, 2025, our cash balance was $2.1 million for working capital use. Our management estimates that currently available cash will not be able to provide sufficient funds to meet the planned obligations for the next 12 months.

Our ability to continue as a going concern is dependent on our ability to successfully implement our plans. Our management believes that it will be able to continue to grow our revenue base and control expenditures. In parallel, we continually monitor our capital structure and operating plans and evaluates various potential funding alternatives that may be needed in order to finance our business development activities, general and administrative expenses, and growth strategy. These alternatives include external borrowings, raising funds through public equity, or tapping debt markets. Although there is no assurance that, if needed, we will be able to pursue these fundraising initiatives and have access to the capital markets going forward. The consolidated financial statements attached to this Form 10-K do not include any adjustments that might result from the outcome of these uncertainties.

***Future Liquidity***

On a recurring basis, the primary future cash needs of the Company will be focused on operating activities, working capital, capital expenditures, investment, regulatory and compliance costs. The ability of the Company to fund these needs will depend, in part, on its ability to generate or raise cash in the future, which is subject to general economic, financial, competitive, regulatory, and other factors that are beyond its control.

The ability to fund our operating needs will depend on its future ability to continue to generate positive cash flow from operations and raise capital in the capital markets. Our management believe that we will meet known or reasonably likely future cash requirements through the combination of cash flows from operating activities, available cash balances, and external borrowings and fund raising. Our management expects that the primary cash requirements in 2025 will be to fund capital expenditures for the repayment of debts and obligation and the businesses operations.

If our sources of liquidity need to be augmented, additional cash requirements would likely need to be financed through the issuance of debt or equity securities; however, there can be no assurances that we will be able to obtain additional debt or equity financing on acceptable terms, or at all, in the future.

We expect that operating losses could continue into the foreseeable future as we continue to invest in growing our businesses. Based upon our current operating plans, our management believes that cash and equivalents will not be able to provide sufficient funds to its operations for at least the next 12 months from the date of its consolidated financial statements provided with this Form 10-K. However, these forecasts involve risks and uncertainties, and actual results could vary materially. Our management has based this estimate on assumptions that may prove to be wrong, and we could deplete our capital resources sooner than we expect. See "*Liquidity and Going Concern*" below.

Our future capital requirements may vary materially from those currently planned and will depend on many factors, including our rate of revenues growth, the timing and extent of spending on sales and marketing, the expansion of sales and marketing activities, the timing of new product introductions, market acceptance of our brand, and overall economic conditions. We may also seek additional capital to fund our operations, including through the sale of equity or debt financing. To the extent that we raise additional capital through the future sale of equity, the ownership interest of our stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our existing stockholders. The incurrence of debt financing would result in debt service obligations and the instruments governing such debt could provide for operating and financing covenants that would restrict our operations.

**Cash Flows**

As of March 31, 2025, we had cash and cash equivalents totaling $2.1 million, and $12.8 million in restricted cash.

As of December 31, 2024, we had cash and cash equivalents totaling $3.1 million, and $14.2 million in restricted cash.

*<u>Comparison of the three months ended March 31, 2025 and 2024</u>*

The following table summarizes our cash flows for the periods presented:

---

| | | |
|:---|:---|:---|
|  | **Three months ended <br> March 31,** | **Three months ended <br> March 31,** |
|  | **2025** | **2024** |
|  | **(US$ in thousands)** | **(US$ in thousands)** |
| Net cash used in operating activities | $(16178) | $(6857) |
| Net cash provided by investing activities | 1527 | 2167 |
| Net cash provided by financing activities | 11728 | 3501 |
| Effect on exchange rate change on cash and cash equivalents | 585 | 239 |
| **Net change in cash, cash equivalents and restricted cash** | (2338) | (950) |
| Cash, cash equivalents and restricted cash, at the beginning | 17261 | 18678 |
| **Cash, cash equivalents and restricted cash, at the end** | $14923 | $17728 |
| **Representing as:** |  |  |
| Cash and cash equivalents | 2130 | 2139 |
| Restricted cash – fund held in escrow | 12793 | 15589 |
|  | $14923 | $17728 |

---

***Working Capital Deficit***

The working capital deficit as of March 31, 2025 and December 31, 2024 was amounted to approximately $294.3 million and $271.6 million, respectively, an increase of $22.7 million or 8.36%. The increase was mainly attributable to the increase in current liabilities related to the acquisition of Triller Corp. and its subsidiaries, which completed on October 15, 2024.

***Cash Flows from Operating Activities***

Net cash used in operating activities was $16.2 million and $6.9 million for the three months ended March 31, 2025 and 2024, respectively.

Net cash used in operating activities for the three months ended March 31, 2025 was primarily the result of the net loss of $53.1 million, decrease in escrow liabilities of $1.4 million, decrease in operating lease liabilities of $0.5 million, increase in accounts receivable of $1.5 million, increase in loans receivable of $1.3 million, and increase in deposits, prepayments, and other receivables of $0.2 million. These amounts were partially offset by the increase in accounts payable and other current liabilities of $3.0 million, increase in other current liabilities, related parties of $0.6 million, and non-cash adjustments consisting of stock-based compensation expense of $28.8 million, interest income on loans receivable of $0.2 million, interest expense on borrowings of $4.8 million, net foreign exchange gain of $1.1 million, and bad debts written-off of $5.4 million.

Net cash used in operating activities for the three months ended March 31, 2024 was primarily the result of the net loss of $8.1 million, an increase in deposits, prepayments, and others receivable of $0.2 million, decrease in accounts payable and other current liabilities of $1.7 million, decrease in escrow liabilities of $1.2 million, decrease in lease liabilities of $0.5 million, and decrease in income tax payable of $0.2 million. These amounts were partially offset by the decrease in accounts receivable of $1.2 million, and non-cash adjustments consisting of stock-based compensation expense of $1.7 million, lease expense of $0.6 million, depreciation and amortization of $0.02 million, interest income on notes receivable of $0.01 million, interest expense on borrowings of $0.2 million, net foreign exchange loss of $0.2 million, net investment loss of US$0.04 million, and allowance for expected credit losses of $1.0 million.

***Cash Flows from Investing Activities***

Net cash provided by investing activities for the three months ended March 31, 2025 of $1.5 million was primarily due to proceeds from the disposal of assets held for sale.

Net cash provided by investing activities for the three months ended March 31, 2024 of $2.2 million was primarily due to proceeds from sale of long-term investments and proceeds from disposal of property and equipment.

***Cash Flows from Financing Activities***

Net cash provided by financing activities for the three months ended March 31, 2025 of $11.7 million was primarily due to proceeds from borrowings advanced by a related party.

Net cash provided by financing activities for the three months ended March 31, 2024 of $3.5 million was primarily due to advances from the stockholder.

***Liquidity and Going Concern***

Our unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. The management of the Company estimates that currently available cash will not be able to provide sufficient funds to meet the Company's planned obligations for the next 12 months from the date that these unaudited condensed consolidated financial statements were made available to be issued.

For the three months ended March 31, 2025, we reported a net loss of approximately $53.1 million. With a significant decrease in our revenues, described in the paragraph below, we had an accumulated deficit of approximately $1,256.7 million as of March 31, 2025.

However, coupled with the economic recession in Hong Kong, we reported a sales decline with total revenue of approximately $4.8 million for the three months ended March 31, 2025, resulting with an operating loss of approximately $44.2 million. These circumstances give rise to substantial doubt that we will continue as a going concern and these unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Our ability to continue as a going concern is dependent on the management's ability to successfully implement its plans. Our management team believes that we will be able to continue to grow our revenue base and control our expenditures. In parallel, our management team will continually monitor our capital structure and operating plans and search for potential funding alternatives in order to finance our business development activities and operating expenses. These alternatives may include borrowings, raising funds through public equity or debt markets. However, we cannot predict the exact amount or timing of the alternatives, or guarantee those alternatives will be favorable to our stockholders. Any failure to obtain financing when required will have a material adverse impact on our business, operation and financial result.

With these funding initiatives, our management believes that we would be able to strengthen our financial position, improve our liquidity, and enhance our ability to navigate the challenging market conditions.

***Capital Commitments***

Details of capital commitments are disclosed in Note 17 in the accompanying unaudited condensed consolidated financial statements.

**Off-Balance Sheet Arrangements**

We are not party to any off-balance sheet transactions. We have no guarantees or obligations other than those which arise out of normal business operations.

We have not engaged in any off-balance sheet financial arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, net revenue or expenses, results of operations, liquidity, capital expenditures, or capital resources.

**Critical Accounting Policies, Judgements and Estimates**

The preparation of financial statements in conformity with GAAP requires us to make judgments, estimates, and assumptions in the preparation of our unaudited condensed consolidated financial statements. Actual results could differ from those estimates. There have been no material changes to our critical accounting policies and estimates as reported in our 2024 Annual Report on Form 10-K.

**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

As a "smaller reporting company" as defined by Item 10 of Regulation S-K, we are not required to provide information required by this Item.

**ITEM 4. CONTROLS AND PROCEDURES**

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

*Evaluation of Disclosure Controls and Procedures*

Our management, with the participation and supervision of our Chief Executive Officer and our Chief Financial Officer, have evaluated our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this Quarterly Report on Form 10-Q, our disclosure controls and procedures are not effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC 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.

*Changes in Internal Control Over Financial Reporting*

During the most recently completed fiscal quarter, there has been no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

*Limitations on Effectiveness of Controls and Procedures*

The effectiveness of any system of internal control over financial reporting, including ours, is subject to inherent limitations, including the exercise of judgment in designing, implementing, operating, and evaluating the controls and procedures, and the inability to eliminate misconduct completely. Accordingly, any system of internal control over financial reporting, including ours, no matter how well designed and operated, can only provide reasonable, not absolute assurances. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. We intend to continue to monitor and upgrade our internal controls as necessary or appropriate for our business, but there can be no assurance that such improvements will be sufficient to provide us with effective internal control over financial reporting.

**PART II – OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS.**

As of March 31, 2025, the Company involved with various legal proceedings:

*(i)* *Action Case: CACV 1116/2025 (on appeal from HCA702/2018)* 

On March 27, 2018, the writ of summons was issued against the Company and seven related companies of the former shareholder (the "Defendants") by the Plaintiff. This action alleged the infringement of certain registered trademarks currently registered under the Plaintiff. On February 23, 2023, the Court granted leave for this action be set down for trial of 13 days, and the trial will commence on November 25, 2024. On October 31, 2025, the Court granted judgement in favor of the Plaintiff. On November 28, 2025, the Defendants lodged and served the Notice of Appeal (CACV 1116/2025) to the Court of Appeal. Legal counsel of the Company will continue to handle in this matter. At this stage in the proceedings, it is unable to determine the probability of the outcome of the appeal or the range of reasonably possible loss as the Court is in the process of quantifying the amount of damages.

*(ii)* *Action Case: HCA765/2019* 

On April 30, 2019, the writ of summons was issued against the Company's subsidiary, three related companies and the former directors, stockholders and financial consultant by the Plaintiff. This action alleged the deceit and misrepresentation from an inducement of the fund subscription and claimed for compensatory damage of approximately $2.6 million. On April 18, 2024, the court made an order that the plaintiff shall set the case down for trial on or before July 6, 2024 for a 7 days trial before a judge and there shall be a pre-trial review before the trial judge on a date 12 weeks before the trial. The plaintiff and the defendants agreed on a time extension until August 8, 2024 to set the case down for trial. On August 9, 2024, the Court made an order that the case be adjourned to January 14, 2025 for another case management conference. On February 17, 2025, the Company filed an amended defence to the court and the next case management conference is fixed to be heard on January 6, 2026. The case is on-going and parties have yet to attempt mediation. Legal counsel of the Company will continue to handle this matter. At this stage in the proceedings, it is unable to determine the probability of the outcome of the matter or the range of reasonably possible loss, if any.

*(iii)* *Action Case: HCA2097 and 2098/2020* 

On December 15, 2020, the writs of summons were issued against the Company and the former consultant by the Plaintiff. This action alleged the misrepresentation and conspiracy causing the loss from the investment in corporate bond and claimed for compensatory damage of approximately $1.7 million. The Company previously made approximately $0.8 million as contingency loss for the year ended December 31, 2021. Parties participated in a mediation held on March 25, 2022 and negotiated for settlement through without prejudice correspondence, no settlement was reached. The pre-trial review is fixed to be heard on January 29, 2026 and the 6-days trial is fixed to be heard from May 14 to 21, 2026. The case is on-going and legal counsel of the Company will continue to handle this matter. As of March 31, 2025, the Company accrued a legal provision of approximately $0.8 million as a liability in the condensed consolidated balance sheets.

*(iv)* *Sony Music Entertainment* 

 

In connection with the Merger Transaction, the Company assumed the liabilities of Triller Corp, including the legal contingency accrual stemming from the litigation with Sony Music Entertainment ("Sony") alleging claims for breach of contract, copyright infringement, contributory copyright infringement, and vicarious copyright infringement. The court entered judgement pursuant to stipulation in the amount of approximately $3.6 million requiring Triller Corp to make monthly payments through May 21, 2025. Triller Corp defaulted on the payments and judgement was entered against Triller Corp on August 27, 2024 for the full amount due. As of March 31, 2025, approximately $3.6 million is included as a liability in the condensed consolidated balance sheets.

 

*(v)* *Sony Music Publishing Europe Limited ("SOLAR")* 

In connection with the Merger Transaction, the Company assumed the liabilities of Triller Corp, including the legal contingency accrual stemming from the complaint filed by SOLAR in the London, United Kingdom Circuit Common Court alleging claims of songwriter/producer music publishing rights infringement. A default judgement for £3.8 million was ruled in SOLAR's favor and SOLAR filed an action in the Superior Court of California for the County of Los Angeles for recognition of this foreign country money judgment in the amount of approximately $4.4 million. As of March 31, 2025, this amount is included as a liability in the condensed consolidated balance sheets.

*(vi)* *Music Licensing* 

Triller Corp has outstanding contractual obligations to various record labels, music publishers and performing rights organizations (collectively, "Rightsholders") who have licensed to Triller Corp the right to use sound recordings and musical compositions in connection with the operation of the Triller app and other aspects of the Company's business. As of March 31, 2025, the Company has recorded liabilities in the amount of approximately $30.0 million for unpaid amounts owed under its music licenses. Triller Corp is also involved in various legal proceedings and has received threats of litigation from Rightsholders. Triller Corp believes it may be or become liable to Rightsholders for additional amounts such as interest, penalty fees, attorneys' fees, copyright infringement damages and other amounts, but is currently unable to estimate the probability of loss associated with these actions or the range or reasonably possible losses, if any, or the impact such losses may have on the Company's results of operations, financial condition or cash flows.

*(vii)* *Fox Plaza Lease* 

In connection with the Merger Transaction, the Company assumed the liabilities of Triller Corp, including the legal contingency accrual stemming from the ongoing litigation with Fox Plaza, LLC due to an alleged breach of a commercial office lease agreement as a result of an alleged failure to pay rents under the agreement. The plaintiff seeks damages in excess of approximately $3.5 million, plus attorney's fees, costs of suit, and additional damages to be proven at trial. Triller Corp intends to vigorously defend itself in this matter. The Company has accrued approximately $1.8 million as a liability pertaining to this claim on the condensed consolidated balance sheets. It is reasonably possible that the potential loss may exceed the accrued liability amount.

*(viii)* *Concentrix Daksh* 

In connection with the Merger Transaction, the Company assumed the liabilities of Triller Corp, including the legal contingency accrual stemming from the arbitration with Concentrix Daksh Services India Private Ltd. ("Concentrix"). Concentrix alleges wrongful early termination of a services agreement and seeks damages of approximately $2.0 million in lost profits, plus interest and fees. The Company has accrued approximately $2.0 million as a liability pertaining to this matter. While the Company intends to defend the claim vigorously, management believes the recorded amount represents the probable loss as of March 31, 2025.

*(ix)* *Epic Sports & Entertainment* 

In connection with the Merger Transaction, the Company assumed the liabilities of Triller Hold Co LLC and Triller Fight Club LLC related to litigation with Epic Sports & Entertainment, Inc. ("Epic") for alleged breach of a settlement agreement. Epic initially claimed damages of approximately $1.8 million, and recent settlement discussions indicate a potential settlement range of approximately $0.6 to $2.0 million. As of March 31, 2025, the Company accrued a legal provision of approximately $1.9 million as a liability in the condensed consolidated balance sheets.

*(x)* *Samsung Arbitration Award* 

In connection with the Merger Transaction, the Company assumed the liabilities of Triller Corp, including the legal contingency accrual stemming from the arbitration with Samsung Electronics Co., Ltd due to a breach of a commercial agreement and failure to pay the amounts owed under the contract. The U.S. District Court for the Central District of California confirmed the award and entered a judgment of approximately $2.6 million in May 2024, accruing interest at $368.43 per day, at a rate of 5.17% per annum until repaid. A writ of execution was issued on August 2, 2024, and a Judgment Debtor Examination is scheduled for February 24, 2025. The Company provided financial records in December 2024 in response to a subpoena. As of March 31, 2025, the Company accrued approximately $3.0 million as a liability in the condensed consolidated balance sheets.

*(xi)* *Prem Parameswaren* 

In connection with the Merger Transaction, the Company assumed potential liabilities related to claims asserted by Prem Parameswaran, the former Chief Executive Officer of Triller Corp for alleged unpaid compensation. To avoid litigation, the parties reached an agreement in principle for a settlement consisting of $500,000 in cash and 625,000 stock units, subject to approval by AGBA Group Holding Limited. As of March 31, 2025, the Company has accrued approximately $2.4 million as a liability pertaining to this matter, representing the probable settlement amount.

*(xii)* *Triller Legacy, LLC Settlement Agreement* 

On July 26, 2024, Triller Hold Co, LLC and Triller Acquisition, LLC entered into a settlement agreement with Triller Legacy, LLC ("Legacy"), original sellers of Triller Corp, regarding the 2019 acquisition of Triller Corp from Legacy. The Company agreed to issue 3.89 million shares of Series A common stock to Legacy. Legacy intends to sell 1.75 million shares for a minimum return of approximately $7.0 million by the end of March 31, 2025. The Company must compensate Legacy for any shortfall of share sales below $7.0 million. The Company has the option to purchase up to 1.75 million shares from Legacy at $4.00 per share through December 31, 2024 and $4.75 per share through March 31, 2025. The Company can also opt to pay Legacy $7.0 million. The Company has included the estimated guaranteed payment liability in its accounts payable and legal contingencies.

*(xiii)* *Bobby Sarnevesht* 

The Company is subject to claims asserted by Bobby Sarnevesht for alleged breach of a merger agreement and related contracts. The Company disputes the claims and the matter remains unresolved. As of March 31, 2025, the Company has accrued approximately $3.0 million as a liability pertaining to this dispute, which represents management's best estimate of the probable loss.

*(xiv)* *YA II PN, LTD. v. Triller Group Inc.; Triller Corp.; Triller Hold Co LLC; Convoy Global Holdings Limited, Index No. 659314/2024 in the New York Supreme Court, Commercial Division* 

On November 26, 2024, Yorkville ("Plaintiff") initiated litigation against the Company, Triller Corp., Triller Hold Co LLC, and Convoy Global Holdings Limited ("Defendants") by filing a motion for summary judgment in lieu of a complaint pursuant to NY CPLR 3213 (the "Motion"), seeking a judgment finding Defendants liable for all amounts allegedly owed under the convertible promissory note (the "Note"), dated June 28, 2024, including interest, plus costs, legal fees, and expenses incurred by Yorkville in enforcing the Note's terms. On February 24, 2025, Defendants filed their opposition to the Motion, arguing that the Motion should be denied because Plaintiff's reliance on CPLR 3213 was improper and because, even if Plaintiff's reliance on CPLR 3213 were proper, triable disputes of fact preclude summary judgment in Plaintiff's favor. On March 7, 2025, Plaintiff filed a reply in support of the Motion. On May 19, 2025, Yorkville's initial motion for summary judgment in lieu of complaint, seeking immediate payment, was denied by the Supreme Court of the State of New York, New York County. The court determined that Yorkville's right to payment depended on a detailed analysis of obligations under multiple intertwined documents, including the Yorkville Convertible Promissory Note, Second A&R SEPA, Registration Rights Agreement, and Pledge Agreements, thus converting the case to a plenary action. Yorkville filed a notice of appeal on May 28, 2025 and a new motion for summary judgment on July 1, 2025, asserting the Yorkville Convertible Promissory Note's maturity date of June 28, 2025 (the "Maturity Date").

On June 20, 2025, the Company transferred 3,000,000 shares of common stock of BKFC, previously pledged by Triller Hold Co LLC as collateral pursuant to the Amended and Restated Pledge Agreement, dated June 28, 2024, between Triller Hold Co LLC and Yorkville, as partial repayment. The case does not have a trial date set. Defendants intend to litigate the case until a resolution is reached.

On December 3, 2025, the Plaintiff filed responses and objections (the "Responses and Objections") to the Defendants' first set of interrogatories dated November 3, 2025 to the Supreme Court of the State of New York County of New York (Index no.: 659314/2024). Pursuant to the Responses and Objections, the Plaintiff stated its claims and contentions with respect to its damage resulting from the event of default that occurred under the Note when the Defendants failed to pay all amounts due by the Maturity Date. The total amount owed under the Note, including interest, plus costs, legal fees, and expenses incurred by Yorkville less the value of BKFC's shares is approximately $38.1 million. Yorkville further stated that it continues to accrue additional damages with each passing day that the obligations under the Note and guaranties remain unpaid. The case is on-going and legal counsel of the Company will continue to handle this matter. At this stage in the proceedings, it is unable to determine the probability of the outcome of the matter or the range of reasonable possible loss, if any.

*(xv)* *13080 Advisors LLC v. Triller Group, Inc., Jams Reference No. 5220008039 (Los Angeles County, California)* 

On December 18, 2024, 13080 Advisors LLC ("Claimant") submitted a Notice of Arbitration and Demand for Arbitration ("13080 Arbitration Demand") to JAMS to assert that Triller and TAG Holdings Limited (collectively as "Respondents") have breached their alleged duties to Claimant under the following alleged agreements: (1) a partially executed document entitled "Grant Agreement for S-8 Registered Shares" dated March 14, 2024, and (2) a partially executed document entitled "Consulting Services Agreement" also dated March 14, 2024. The 13080 Arbitration Demand asserts four purported claims for relief: breach of contract, negligent misrepresentation, specific performance and declaratory relief. On February 18, 2025, Respondents submitted to JAMS a motion to dismiss all the claims for relief asserted in the 13080 Arbitration Demand along with a motion to strike Claimant's requests for punitive damages. This motion remains pending and no arbitrator has been appointed. The case is on-going and legal counsel of the Company will continue to handle this matter. At this stage in the proceedings, it is unable to determine the probability of the outcome of the matter or the range of reasonable possible loss, if any.

*Robert E. Diamond Jr.et al. v. Triller Group, Inc., Case No. 25-cv-00129 (PAE) (S.D.N.Y.)*

On January 7, 2025, Robert E. Diamond Jr ("Diamond"), the former chairman of Triller's board of directors and Atlas Merchant Capital LLC (collectively as "Plaintiffs"), an advisory services company under Diamond's control filed a lawsuit in federal district court in Manhattan, New York to allege that Triller has failed to pay over or grant to Plaintiffs certain cash amounts and equity awards to which Plaintiffs were entitled pursuant to various agreements between Plaintiffs and Triller. Plaintiffs claim that they are entitled to over $5.0 million in cash compensation and over 6.0 million shares of Triller's common stock. On February 28, 2025, Triller filed a partial motion to dismiss the scope of Plaintiffs' claims. This motion is now pending before the court. The case is on-going and legal counsel of the Company will continue to handle this matter. At this stage in the proceedings, it is unable to determine the probability of the outcome of the matter or the range of reasonable possible loss, if any.

**ITEM 1A. RISK FACTORS.**

As smaller reporting company we are not required to make disclosures under this Item.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES.**

None.

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES.**

As of the date of this filing, the Company had defaulted on approximately $70.8 million of principal amount of outstanding debts. The total arrearage as of the date of this filing was approximately $76.4 million, which includes both principal and interest.

**ITEM 4. MINE SAFETY DISCLOSURES.**

Not applicable.

**ITEM 5. OTHER INFORMATION.**

None.

**ITEM 6. EXHIBITS.**

The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q.

---

| | |
|:---|:---|
| **No.** | **Description of Exhibit** |
| 31.1\* | [Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ea027439501ex31-1_triller.htm) |
| 31.2\* | [Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ea027439501ex31-2_triller.htm) |
| 32\* | [Certification of Principal Executive Officer and Principal Financial and Accounting Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ea027439501ex32_triller.htm) |
| 101.INS\* | Inline XBRL Instance Document |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB\* | Inline XBRL Taxonomy Extension Labels Linkbase Document |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104\* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

---

\* Filed herewith. <br> \*\* Furnished.

**SIGNATURES**

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

---

| | | |
|:---|:---|:---|
|  | **Triller Group Inc.** | **Triller Group Inc.** |
| Date: February 17, 2026 | By: | /s/ Ng Wing Fai |
|  | Name: | Ng Wing Fai |
|  | Title: | Chief Executive Officer and Director |
|  |  | (Principal Executive Officer) |
| Date: February 17, 2026 | By: | /s/ Shu Pei Huang, Desmond |
|  | Name: | Shu Pei Huang, Desmond |
|  | Title: | Acting Chief Financial Officer |
|  |  | (Principal Financial and Accounting<br> Officer) |

---

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER**

**PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Ng Wing Fai, certify that:

1. I
 have reviewed this amendment No. 1 to the quarterly report on Form 10-Q of Triller Group 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 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;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;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;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;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 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;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;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: February 17, 2026 | By: | /s/ Ng Wing Fai |
|  | Name: | Ng Wing Fai |
|  | Title: | Chief Executive Officer and Director |
|  |  | (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER**

**PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Shu Pei Huang, Desmond, certify that:

1. I
 have reviewed this amendment No. 1 to the quarterly report on Form 10-Q of Triller Group 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 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;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;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;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;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 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;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;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: February 17, 2026 | By: | /s/ Shu Pei Huang, Desmond |
|  | Name: | Shu Pei Huang, Desmond |
|  | Title: | Acting Chief Financial Officer |
|  |  | (Principal Financial Officer) |

---

## Ex-32

**Exhibit 32**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the amendment No. 1 to the Quarterly Report of Triller Group Inc. (the "Company") on Form 10-Q for the quarter ended March 31, 2025 as filed with the Securities and Exchange Commission (the "Report"), each of the undersigned, in the capacities and on the dates indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. 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 operation of the Company.

Date: February 17, 2026

---

| |
|:---|
| /s/ Ng Wing Fai |
| Ng Wing Fai |
| Chief Executive Officer and Director |
| (Principal executive officer) |

---

Date: February 17, 2026

---

| |
|:---|
| /s/ Shu Pei Huang, Desmond |
| Shu Pei Huang, Desmond |
| Acting Chief Financial Officer |
| (Principal financial and accounting officer) |

---