# EDGAR Filing Document

**Accession Number:** 0001947861
**File Stem:** 0001213900-26-044157
**Filing Date:** 2026-4
**Character Count:** 468328
**Document Hash:** e6f9e091730f01cd0270261df3478486
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-044157.hdr.sgml**: 20260415

**ACCESSION NUMBER**: 0001213900-26-044157

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 129

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260415

**DATE AS OF CHANGE**: 20260415

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Nature's Miracle Holding Inc.
- **CENTRAL INDEX KEY:** 0001947861
- **STANDARD INDUSTRIAL CLASSIFICATION:** FARM MACHINERY & EQUIPMENT [3523]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41977
- **FILM NUMBER:** 26864972

**BUSINESS ADDRESS:**
- **STREET 1:** 858 NORTH CENTRAL AVENUE
- **CITY:** UPLAND
- **STATE:** CA
- **ZIP:** 91786
- **BUSINESS PHONE:** 888-420-3694

**MAIL ADDRESS:**
- **STREET 1:** 858 NORTH CENTRAL AVENUE
- **CITY:** UPLAND
- **STATE:** CA
- **ZIP:** 91786

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** LBBB Merger Corp.
- **DATE OF NAME CHANGE:** 20220922

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

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-K**

☒ **ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the fiscal year ended: December 31, 2025**

**OR**

☐ **TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT**

**For the transition period from _____________ to ____________**

**Commission file number 001-41977**

**NATURE'S MIRACLE HOLDING INC.**

(Exact name of small business issuer as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **88-3986430** |
| (State or other jurisdiction<br> of incorporation) | (IRS Employer<br> Identification No.) |

---

**3281 E. Guasti Rd. Suite 175**

**Ontario, CA 91761**

(Address of principal executive offices) (Zip Code)

**(909)218-4601**

(Registrant's telephone number, including area code)

**N/A**

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

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

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, par value $0.0001 per share | NMHI | OTC Markets Group, Inc. |
| Warrants to purchase Common Stock, at an exercise price of $11.50 per share | NMHIW | OTC Markets Group, Inc. |

---

Indicate by check mark if registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

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 and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant include in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

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

The aggregate market value of the voting and non-voting shares of the Company's common stock held by non-affiliates as of June 30, 2025 based on the last sale of the Company's common stock, was approximately $518,559.

As of April 14, 2026, the Registrant had 348,849,178 shares of common stock, $0.0001 par value, issued and outstanding.

**DOCUMENTS INCORPORATED BY REFERENCE**

None.

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| [CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS](#a_001) | [CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS](#a_001) | ii |
| [PART I](#a_002) | [PART I](#a_002) |  |
| Item 1. | [Business](#a_003) | 1 |
| Item 1A. | [Risk Factors](#a_004) | 17 |
| Item 1B. | [Unresolved Staff Comments](#a_005) | 32 |
| Item 1C. | [Cybersecurity](#a_006) | 32 |
| Item 2. | [Properties](#a_007) | 33 |
| Item 3. | [Legal Proceedings](#a_008) | 33 |
| Item 4. | [Mine Safety Disclosures](#a_009) | 33 |
| [PART II](#a_010) | [PART II](#a_010) |  |
| Item 5. | [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#a_011) | 34 |
| Item 6. | [\[Reserved\]](#a_012) | 35 |
| Item 7. | [Management's Discussion and Analysis of Financial Condition and Results of Operation](#a_013) | 36 |
| Item 7A. | [Quantitative and Qualitative Disclosures about Market Risk](#a_014) | 45 |
| Item 8. | [Financial Statements and Supplementary Data](#a_015) | 46 |
| Item 9. | [Changes In and Disagreements With Accountants on Accounting and Financial Disclosure](#a_016) | 46 |
| Item 9A. | [Controls and Procedures](#a_017) | 46 |
| Item 9B. | [Other Information](#a_019) | 47 |
| Item 9C. | [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#a_020) | 47 |
| [PART III](#a_021) | [PART III](#a_021) |  |
| Item 10. | [Directors, Executive Officers and Corporate Governance](#a_022) | 48 |
| Item 11. | [Executive Compensation](#a_023) | 53 |
| Item 12. | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#a_024) | 58 |
| Item 13. | [Certain Relationships and Related Transactions, and Director Independence](#a_025) | 60 |
| Item 14. | [Principal Accountant Fees and Services](#a_026) | 61 |
| [PART IV](#a_027) | [PART IV](#a_027) |  |
| Item 15. | [Exhibit and Financial Statement Schedules](#a_028) | 62 |
| Item 16. | [Form 10-K Summary](#a_029) | 64 |
| [SIGNATURES](#a_030) | [SIGNATURES](#a_030) | 65 |

---

Unless the context otherwise requires, references to "the Company," "we," "us" and "our" refer to Nature's Miracle Holding Inc. and its subsidiaries or for short "Nature's Miracle".

i

**CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS**

This Annual Report contains statements that are forward-looking and as such are not historical facts. This includes, without limitation, statements regarding the financial position, business strategy and the plans and objectives of management for future operations. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this Annual Report, words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "strive," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. When we discuss our strategies or plans, we are making projections, forecasts or forward-looking statements. Such statements are based on the beliefs of, as well as assumptions made by and information currently available to, our management.

Forward-looking statements in this Annual Report may include, for example, statements about:

● our ability to recognize the anticipated benefits of the Business Combination;

● the projected financial information, anticipated growth rate and market opportunities of the Company;

● our ability to uplist our shares of common stock on The Nasdaq Global Market and warrants on The Nasdaq Capital Market or on the New York Stock Exchange;

● our ability to develop and sell our product offerings and services;

● manage risks associated with seasonal trends and the cyclical nature of the agriculture industry;

● the potential liquidity and trading of our securities;

● our ability to acquire and protect intellectual property;

● manage risks associated with our dependence on a small number of outside contract manufacturers;

● our ability to respond to fluctuations in foreign currency exchange rates and political unrest and regulatory changes in international markets into which we expand or otherwise operate in;

● our ability to enhance future operating and financial results;

● our ability to meet future liquidity requirements, which may require us to raise financing in the future;

● our ability to retain or recruit, or changes required in, our officers, key employees or directors;

● our ability to implement and maintain effective internal controls; and

ii

● factors relating to our business, operations and financial performance, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o our ability to raise capital via loans, convertible loans
and/or equity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o our ability to comply with laws and regulations applicable
to our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o market conditions and global and economic factors beyond our
control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o our ability to compete in the highly-competitive and evolving
agricultural industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o our ability to continue to develop new products and innovations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o our ability to enter into, successfully maintain and manage
relationships with partners and distributors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o our ability to acquire or make investments in other businesses,
patents, technologies, products or services to grow the business, and realize the anticipated benefits therefrom.

We caution you that the foregoing list may not contain all of the forward-looking statements made in this Annual Report. These forward-looking statements are only predictions based on our current expectations and projections about future events and are subject to a number of risks, uncertainties and assumptions, including those described in the section entitled "*Risk Factors*" and elsewhere in this Annual Report. It is not possible for the management of the Company to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this Annual Report may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements in this Annual Report.

The forward-looking statements included in this Annual Report are made only as of the date hereof. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. We do not undertake any obligation to update publicly any forward-looking statements for any reason after the date of this Annual Report to conform these statements to actual results or to changes in expectations, except as required by law. You should read this Annual Report and the documents that have been filed as exhibits hereto with the understanding that the actual future results, levels of activity, performance, events and circumstances of the Company may be materially different from what is expected.

iii

**PART I**

**Item 1. Business.**

**Business Overview**

We are a growing agriculture technology company providing Controlled Environment Agriculture ("CEA") hardware products to growers in the CEA industry setting in North America. We provide hardware to design, build and operate various indoor growing settings, including greenhouse and indoor growing spaces. Through our two wholly-owned subsidiaries, Visiontech Group Inc. ("Visiontech") and Hydroman, Inc. ("Hydroman"), we provide grow lights, grow media products and dehumidifiers to indoor growers in North America. We also arrange energy rebate solutions combined with the supply of LED lights that qualify for energy-saving rebates provided by large Utility companies throughout the U.S. We have also developed fully automated container-sized units that function as indoor vertical farms were five containers can equal the output of 10 acres of farmland. For over 10 years, the Company's subsidiaries have built industry-recognized brands and developed a robust customer base in the U.S. and Canada. We design, mid-to high end LED and Dehumidifier products, arrange manufacturing overseas and ship to our distribution warehouse in Upland, California. Grow media is packaged under our private label and imported in bulk from Europe, India and other places. Our products are consistently tested for quality and to meet specifications required by regulatory agencies. We primarily serve the North American market and in the fiscal year ended December 31, 2025 generated revenues of approximately $[●] million and incurred a gross loss of approximately $[●] million as compared to revenues of approximately $9.3 million and a gross loss of $2.8 million in the fiscal year ended December 31, 2024.

CEA refers to an indoor, technology-based approach to cultivating crops under optimal growing conditions. It includes the vertical farming sector and the indoor cultivation of an ever-increasing range of specialty crops for a range of applications from food to health. Vertical farming refers to the use of an artificial light environment instead of sunlight to ensure the healthy and effective growth of plants. Vertical farming was increasingly popular during the COVID-19 pandemic as supply chain disruptions and labor shortages fed fears over global food security. As a result, it has also become a demand driver for hydroponic products, which are used in the farming of plants using soilless growing media and often artificial lighting in a controlled indoor or greenhouse environment.

Through CEA, growers can be more efficient with physical space, water and resources, while enjoying year-round and more rapid growth cycles as well as more predictable and abundant grow yields, when compared to other traditional growing methods.

In September 2025 the Company entered into a real estate investment by acquiring the commercial building commonly known as PNC Bank Tower in downtown Toledo, Ohio. As a result, we will show rent income on our books starting October 1, 2025. The real estate is held via Zak Properties LLC, a 100%-owned subsidiary of NMHI. In the acquisition, NMHI agreed to assume $2.650 million in loans and signed a new secured note for $3 million due to the former owners of Zak Properties. The building is about 60% leased with major tenants such as PNC Bank, the Federal courts and offices and many law firms. The latest appraisal value based on refinancing in January 2026, was $17 million.

***Acceleration of CEA Indoor Farming Adoption***

The commercial agriculture industry is increasingly adopting more advanced agricultural technologies to improve productivity and operations. The benefits of CEA indoor farming include:

● greater product safety, quality and consistency;

● more reliable, climate-agnostic year-round crop supply from multiple, faster harvests per year as opposed to a single, large harvest with outdoor cultivation;

● lower risk of crop loss from pests (and subsequently lower need for pesticides) and plant disease;

● lower required water and pesticide use compared to conventional farming, offering incremental benefits in the form of reduced chemical runoff and lower labor requirements; and

● potentially lower operating expenses from resource-saving technologies such as high-efficiency LED lights, precision nutrient and water systems and automation.

The implementation of CEA indoor farming continues to increase globally, driven by these factors and growth in fruit and vegetable cultivation, consumer horticulture and the continued adoption of vertical cultivation.

***Increased Focus on Environmental, Social and Governance ("ESG") Issues***

 ****

We believe that the growth and change in our end markets are driven in part by various ESG trends aimed at conserving resources and improving the transparency and security of our food supply chain. Overall, indoor farming has superior performance characteristics in terms of selected key ESG performance criteria compared to traditional agriculture:

 ****

● <u>More efficient land usage</u>. Indoor farming can increase crop yields per square foot and reduce the amount of land needed to grow crops. Certain types of greenhouses can yield 20 times the yield per acre than conventional farming, according to the U.S. Department of Agriculture.

● <u>More efficient freshwater usage</u>. Indoor farming allows water to be managed and recycled within a closed-loop system and therefore generally requires less water than traditional outdoor farming. In some cases, indoor farming can grow plants using ten times less water than soil farming, according to the U.S. National Park Service.

● <u>Decreased use of fertilizer and pesticides</u>. In indoor farming, there is less demand for pesticide application, and growers can use fewer pesticides and apply pesticides more precisely than in traditional outdoor farming.

 ****

● <u>Reduced carbon emissions</u>. Indoor farming brings large-scale farming operations closer to the end user, shortening the transport distance for ready-to-use crops.

● <u>Reduced food waste</u>. Indoor farming brings food production closer to the end user and makes the time between production and consumption shorter, the product spoilage, damage and waste are reduced.

● <u>Chemical runoff prevention</u>. Due to the closed-loop nature of indoor farming systems, it significantly reduces the risk of chemical runoff, which is often more difficult to control in traditional outdoor farming.

● <u>Supports organic farming</u>. Indoor farming is ideal for organic farming, and consumer demand for organic farming is increasing.

 **

**Our Core Competitive Strengths**

 

***Our Products***

We are a provider of equipment for the CEA industry in North America. Our suppliers are grow light original equipment manufacturers in Asia, Europe, and North America. To reduce lead time and save logistic time and cost, we may establish a manufacturing and assembling facility in North America for grow lights in the future. Our goal is to provide our consumers with fully integrated end-to-end turnkey solutions for cultivation facilities with an emphasis on cost and efficiency.

We offer both innovative, branded products supported by a registered trademark, "eFinity," and distribute third-party products. Our product offerings span grow lights and growing media. The following is a list of some of our market-leading products across key greenhouse products.

&nbsp;&nbsp;&nbsp;&nbsp;**(i)** **Lighting Products** 

 ****

&nbsp;&nbsp;&nbsp;&nbsp;***a)***  ***LED Fixtures*** 

Our LED fixtures products are full-spectrum LED and are suitable for full-term plant growth indoor and greenhouse cultivation, from the vegetative stage to the higher-light-requiring bloom and finishing stages all year round.

The explanation of the measurements we use are as follows:

 ****

***PPF and μmol/s***

Photosynthetic Photon Flux ("PPF") density measures the amount of micromoles of photons striking a square meter per second ("μmol/s").

Full daylight sun at noon in the summer is around 2,000 μmol/s. What the plants actually need for growing, however, is likely to be much less than that.

 ****

***μmol/J***

The industry standard for measuring grow light efficiency is micromole per joule ("μmol/J"). It means that for every joule of electrical energy (joule = watt \* second) a certain number of photon micromoles are produced.

Highly efficient LED grow lights range from 1.5 μmol/j and up, and the number is constantly improving. For high pressure sodium ("HPS") lights, the numbers are around 1.7 μmol/j.

---

| | | | |
|:---|:---|:---|:---|
| **Product Name** | **Description of Product** | **Key Features** | **Market** |
| eFinity SUPERSTAR S-840W INDOOR LED<br>![](ea028425201_img1.jpg)<br>![](ea028425201_img2.jpg) | High light output/low heat generation and ideal spectrum for effective growth throughout the year | ● Full Spectrum LED light fixture for all stages<br> ● PPF 2520 μmol/s<br> ● Efficacy 3.0 μmol/J<br> ● Dimmability from 0 to 100%<br> ● Controllable<br> ● Certified with Electrical Testing Laboratories ("ETL"), and DLC Qualified Products Lists ("DLC") listed<br> ● 5-year warranty on ballast<br> ● 50,000 hour warranty on LEDs | North America |

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| | | | |
|:---|:---|:---|:---|
| **Product Name** | **Description of Product** | **Key Features** | **Market** |
| eFinity 2100 PRO 780W 1:1 DIRECT REPLACEMENT GREENHOUSE/INDOOR LED<br>![](ea028425201_img1.jpg)<br>![](ea028425201_img3.jpg) | Deep Penetrating 1:1 LED Fixture for Replacing 1000W HPS Lights and Fitting Seamlessly in Existing HPS Layouts for Greenhouses or Indoor Cultivation | ● Full Spectrum LED light fixture for all stages<br> ● PPF 2128 umol/s<br> ● Efficacy 2.8 μmol/J<br> ● Dimmability from 0 to 100%<br> ● Controllable<br> ● Samsung and Osram LED chips<br> ● Certified with ETL, DLC listed<br> ● 5-year warranty on ballast<br> ● 50,000 hour warranty on LEDs | North America |
| eFinity SUPERSTAR GenIII 660W W/ FAR-RED & UVA BOOSTER TO 720W INDOOR LED<br>![](ea028425201_img1.jpg)<br>![](ea028425201_img4.jpg) | Versatile Adjustable and High PPF & Efficacy Heavy-Duty Full Spectrum 8-bar Indoor LED Grow Light Fixture with both Far Red and UVA Booster for All Stages | ● Full Spectrum LED light fixture for all stages<br> ● PPF 2088 μmol/s<br> ● Efficacy 2.9 μmol/J<br> ● Certified with the ETL/DLC mark and IP66 rating<br> ● Plug and play installation, high PPF with less heat to help grow better<br> ● Designed for commercial growers, full cycle spectra for rapid growth and complete plant development | North America |

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| | | | |
|:---|:---|:---|:---|
| **Product Name** | **Description of Product** | **Key Features** | **Market** |
| XT 780 TOPLIGHTING<br>![](ea028425201_img5.jpg) | ● Compact Design<br> ● Maximizes Sunlight Use<br> ● Energy saving, high efficiency, low maintenance cost<br> ● Light also available with dimmable control<br> ● Hanger design and fast connect plug for easy installation<br> ● 1:1 Replacement HPS | PPF: μmol/s 2496<br> Power consumption: W 780<br> Dimensions: μmol/J 3.2<br> Efficiency: mm L740\*W330\*H105<br> Weight: kg 15.5<br> Input voltage: VAC 277-480<br> Power factor: >0.9<br> Rated Average Lifetime: hrs L90>50000H<br> Ingress protection rating: IP66<br> Approval marks: DLC, Underwriter Laboratories ("UL")/CSA<br> Accessories: Hanger<br> Lighting angle: 120°<br> Warranty: 5yr | North America |
| XI 150 INTERLIGHT<br>![](ea028425201_img6.jpg) | ● Aluminum material to dissipate heat<br> ● Patented rotating design with 270 degree manual turn angle IP66<br> ● Energy saving, high efficiency, low maintenance cost<br> ● Red and blue light can be controlled separately<br> ● Hanger design and fast connect plug for easy installation<br> ● Top light and inter light dual purpose<br> ● The number of serial connections can be customized | PPF: μmol/s 450<br> Power consumption: W 150<br> Efficiency: μmol/J 3.0<br> Dimensions: mm L2418\*W130\*H116<br> Weight: kg 5.45<br> Input voltage: VAC 300-400<br> Power factor: >0.9<br> Rated Average Lifetime: hrs L90>50000H<br> Ingress protection rating: IP66<br> Approval marks: DLC, UL/CSA<br> Accessories: Hanger/Wirerope<br> Lighting angle: Max.270°<br> Warranty: 5yr | North America |

---

&nbsp;&nbsp;&nbsp;&nbsp;***b)***  ***HPS and CMH Fixtures*** 

Our HPS and Ceramic Metal Halide ("CMH") fixtures function as agricultural artificial lighting and are suitable for flower stages indoor and greenhouse cultivation.

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| | | | |
|:---|:---|:---|:---|
| **Product Name** | **Description of Product** | **Key Features** | **Market** |
| eFinity BLACK SERIES 1000W DE HPS CLOSED REFLECTOR<br>![](ea028425201_img1.jpg)<br>![](ea028425201_img7.jpg) | The Industry's Defacto Standard HPS Light Fixture for Virtually Every Major Brand | ● Dimmable<br> ● Controllable<br> ● 96% reflection rate w/ replaceable reflector<br> ● Includes 1 efinity high frequency 400V DE bulb which produces 10% to 25% more output than traditional HPS bulbs and is the only DE bulb w/built-in Igniter<br> ● efinity DE bulb warranty: 10,000 hours<br> ● Completely sealed housing w/ RJ11 plug<br> ● 9ft German Wieland power connection | North America |
| eFinity BLACK SERIES 315W CMH<br>![](ea028425201_img1.jpg)<br>![](ea028425201_img8.jpg) | The Industry's Highest Efficiency/Lowest Frequency, Daisy-Chainable, Controllable, <br> and Dimmable CMH Grow Light Fixture | ● Daisy chain up 8 units<br> ● Runs GreenPower CDM-T 315W Lamps<br> ● No acoustic resonance<br> ● Low Frequency, High Efficiency electronic ballast<br> ● Lower harmonic distortion<br> ● High output and improved spectrum<br> ● Driver efficiency at full power: 95-96% | North America |

---

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| | | | |
|:---|:---|:---|:---|
| **Product Name** | **Description of Product** | **Key Features** | **Market** |
| XT 1000<br>![](ea028425201_img9.jpg) | ● Compact aluminum housing<br> ● Reflector Design (Alanod Germany) with Miro Silver Design<br> ● Wieland Connector - Easy Plug and Play<br> ● Voltage available - 277V, 347V, 400V and 480V | ● Lamp output: μmol/s 2180<br> ● Power consumption: W 1040<br> ● Dimensions: mm L232\*W189\*602<br> ● Weight: kg 4.38<br> ● Input voltage: VAC 277-400<br> ● Power factor: >0.99<br> ● Rated Average Lifetime: hrs Lamp:10000H<br> ● Ingress protection rating: IP65<br> ● Approval marks: UL/CSA,ETL<br> ● Accessories: Hanger<br> ● Lighting angle: 120°<br> ● Warranty: 3yr - Fixtures; 10,000 Hrs Bulbs<br>| North America |
| XTD 1000<br>![](ea028425201_img10.jpg) | ● Compact aluminum housing<br> ● Reflector Design (Alanod Germany) with Miro Silver Design<br> ● Reflector is easy to remove<br> ● Wieland Connector - Easy Plug and Play<br> ● Voltage available - 277V, 347V, 400V and 480V | ● Lamp output: μmol/s 2180<br> ● Power consumption: W 1040<br> ● Dimensions: mm L255\*W275.5\*H582<br> ● Weight: kg 4.3<br> ● Input voltage: VAC 277-400<br> ● Power factor: >0.99<br> ● Rated Average Lifetime: hrs Lamp:10000H<br> ● Ingress protection rating: IP65<br> ● Approval marks: UL/CSA,ETL<br> ● Accessories: Hanger<br> ● Lighting angle: 120°<br> ● Warranty: 3yr - Fixtures; 10,000 Hrs Bulbs | North America |

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 ****

&nbsp;&nbsp;&nbsp;&nbsp;***c)***  ***Electronic Ballasts and Control Box*** 

 ****

The purpose of a lighting ballast is to regulate both the line voltage and the current supplied to a light bulb during its several phases of operation. A control box provides the ability to automate control of both the level and the cycle of your lighting fixtures according to the users' specific needs, while greatly reducing energy consumption.

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| | | | |
|:---|:---|:---|:---|
| **Product Name** | **Description of Product** | **Key Features** | **Market** |
| eFinity MASTER CONTROLLER LED, HPS, & CMH<br>![](ea028425201_img1.jpg)<br>![](ea028425201_img11.jpg) | Two Channel Master Controller with Capacity for up to 75 efinity Fixtures per Channel | ● KEY FEATURES<br> ● Auto-dim at set temperature.<br> ● Auto-shutdown at set temperature.<br> ● Sunrise/sunset period.<br> ● Easy and safe installation.<br> ● Protected against short-circuits.<br> ● Double temperature safety features.<br> ● Suitable for all efinity/Megaphoton HPS/CMH/LED fixtures with controller ports.<br> ● Maximum Number of lighting fixtures: 150 units. | North America |

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(i) **Grow Media Products** 

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Cultiwool is our main supplier for grow media products. Cultiwool has many years of experience developing rockwool products in the Netherlands and is preferred by some of the largest industrial propagators in the world. We believe that the quality of their newest rockwool cubes is currently the best on the market. Our rockwool cubes feature Cultiwool's unique Plant COMFORT fibre structure with the following characteristics: Cultiwool Blocks have an optimum air/water ratio for healthy root growth and allow for great continued rooting thanks to the extremely even distribution of water and electrical conductivity. These blocks have an excellent water absorption and (re)saturation rate and feature the exclusive Plant Comfort fibre structure which has a lower density of resistance during rooting with no loss of firmness. All blocks except the 3x3x3 also have the Optiplus feature, which is a unique design on the underside of the block allowing for excess water to drain away easily.

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| | | | |
|:---|:---|:---|:---|
| **Product Name** | **Description of Product** | **Key Features** | **Market** |
| Cultiwool 6" X 6" X 6"<br>![](ea028425201_img12.jpg) | Block Stonewool Cubes with Optidrain, with one hole, Hydroponics Grow Media | ● Superb air to water ratio<br> ● A fibre structure that holds water longer<br> ● Less resistance for the roots to grow in, resulting in stronger roots<br> ● Encourages faster initial rooting<br> ● Guaranteed firmness | North America |

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| | | | |
|:---|:---|:---|:---|
| **Product Name** | **Description of Product** | **Key Features** | **Market** |
| CULTIWOOL SLAB 6" X 36" X 3"<br>![](ea028425201_img13.jpg) | X-fibre slabs are unique for their optimum water distribution and excellent EC-control not only within one slab but also between slabs. This creates a root environment with outstanding control and with far better and much more even growth and root distribution. Slabs are 36" long and are available in several different widths.<br>| ● Superb air to water ratio<br> ● A fibre structure that holds water longer<br> ● Less resistance for the roots to grow in, resulting in stronger roots<br> ● Encourages faster initial rooting | North America |
| Dutch Plantin 5 GALLON GROW BAG<br>![](ea028425201_img14.jpg) | OUR GROW BAGS:<br> ● are 100% organic<br> ● have low sodium and chloride levels thanks to our innovative production process<br> ● are stable, so they can be used for many years, even for different crops<br> ● maintain a high air percentage throughout the entire cultivation period<br> ● have excellent moisture-retaining properties<br> ● make bad soil quality and soil diseases a thing of the past<br> ● need a lot less fertilizer than soil<br> ● are easy to irrigate<br> ● allow you to save considerable amounts of fresh water, which is becoming scarcer all over the world<br> ● last but not least, they contribute to a better world | ● Premium. Coco mat made of a layer of coco chips covered with coco pith<br> ● Optima. Mixture of coco pith and coco chips<br> ● Classic. 100% coco pith | North America |

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***Experienced Management Team with Proven Track Record***

Our management team possesses significant public market experience with a strong track record.

*Tie "James" Li* is our founder, Chairman and Chief Executive Officer. He founded Nature's Miracle, Inc. in 2022 and has served as the Company's Chairman and Chief Executive Officer since. From February 2015 to 2022, he was the Founder and Chairman of Early Bird Investment, a private equity firm focused on agriculture, mobile gaming and clean energy. From 2006 to 2015, he was the co-founder, CFO, President and CEO of China Hydroelectric Corporation ("CHC") which was the largest small hydroelectric company listed on NYSE. He launched China Hydroelectric Corporation in 2006 with three other co-founders and built the company into a NYSE listed company with a market capitalization of over a billion. In 2015, he led the effort to privatize and sell CHC to a public listed utility company. Mr. Li started his career with Citigroup in the investment banking unit in New York City in 1998. He has also worked at Sumitomo Mitsui Banking Corporation, HypoVereinsbank and Standard & Poor's. Mr. Li graduated from Columbia University Graduate School of Business in New York with an MBA in 1998. He completed his Bachelor of Science degree in accounting from Brooklyn College. He also attended Beijing University undergraduate program in History. He is a Chartered Financial Analyst and a Certified Public Accountant.

 

*George Yutuc*, our Chief Financial Officer. George has been with the Company since 2023. From 2021 to 2023 he consulted with major private equity firms and a top strategy firm in the field of packaging, single use restaurant supplies, manufacturing in California and evaluating industry targets. From 2019 to 2021 he was CFO of Karat Packaging, a manufacturer and distributor of paper and plastic cups, "to go" boxes and related supplies. The company went from a privately-held $175 million company to a $300 million revenue Nasdaq-listed company during this time. Between 2001 and 2018 he served as CFO or controller in fast-growth companies including EbrokerCenter, Jet Aerospace, ScribeRight and Casestack. From 1996 to 2001, he held key positions as an audit manager, senior manager and director of corporate finance at the CPA firm Deloitte & Touche. George earned his Bachelor of Arts degree and MBA from the University of California, Los Angeles. He has served as a part-time adjunct instructor in Business Acquisitions and Finance at his alma mater from 2005 to 2020.

 

*Jinlong "Frank" Du* is our President. For over 20 years, Frank has been an authority in the field of greenhouse infrastructure and has led and executed over 300 large-scale smart greenhouse projects in various countries. He is an expert in the field of LED lighting technology. He was previously Chief Executive Officer of Megaphoton Inc., a major manufacturer and exporter of horticultural lighting equipment and integrated greenhouse systems. He obtained hisPh.D. in Electrics and Electrical Engineering from Nanyang Technological University in Singapore.

 

***Logistics Network Throughout North America***

Our two wholly owned subsidiaries, Visiontech and Hydroman, are global suppliers of CEA equipment. Through these two subsidiaries, we currently operate a warehouse in California and occasionally direct ship to a customer.

Our other subsidiary Zak Properties LLC is not in the distribution business but its centralized location in Toledo Ohio can be used as corporate offices in the near future. We currently office out of Ontario, California which is approximately 8 miles from our warehouse in Upland, California.

**Our Growth and Productivity Strategies**

Through the following strategies, we aim to capitalize on the growth of the market we operate in.

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***Capitalizing on Rapidly Growing Markets***

Our customers benefit from the macroeconomic factors driving the growth of indoor and greenhouse agriculture, including the expanded adoption of indoor and greenhouse agriculture by commercial growers and consumers. As the world's population grows and urbanizes, indoor and greenhouse agriculture is increasingly being used to meet the demand for food crops. We expect to capitalize on this favorable growth trends by continuing to expand our operations in North America.

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***Expanding our Branded Product Offering***

We currently offer innovative, branded products supported by one registered trademark, "eFinity." We are expanding the breadth of our product range by continuously developing our own brands. Our branded products provided over 75% of our total revenue in the fiscal year 2021. Our core competency in new product innovation lies in grow lights, and we are strengthening research and development in other product categories to expand the value of our brand portfolio and further improve profit margins.

**Sales**

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***Volumes of Sales and Revenues***

Our revenues in the years 2025 and 2024 were primarily generated from the sales of our CEA products, through two of our subsidiaries, Hydroman and Visiontech. These products include LED fixtures, DE HPS fixtures, electronic ballast, and greenhouse hardware.

Starting October 2025, we start earning rent income via our real estate subsidiary Zak Properties LLC. Such rent income is expected to be more recurring than the CEA business. On an annual basis, we estimate about $1.8 to $2.0 million in gross rents for 2026. ****

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***Customers***

Through our subsidiaries, we primarily sell CEA products directly to wholesale CEA distributors who, in turn, supply-sell the products to other wholesalers and retailers across the U.S. and Canada. Below is the revenue generated from our top 5 customers and the percentages compared to our total consolidated revenues, during the years ended December 31, 2025, and 2024, respectively:

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| | | | |
|:---|:---|:---|:---|
| **Nature's Miracle Top 5 Customers for December 31, 2025 and 2024** | **Nature's Miracle Top 5 Customers for December 31, 2025 and 2024** | **Nature's Miracle Top 5 Customers for December 31, 2025 and 2024** | **Nature's Miracle Top 5 Customers for December 31, 2025 and 2024** |
|  | **Sales** | **Percentage** | **Total <br> Revenue** |
| **<u>For 2025</u>** | | | |
| Elevated Equipment Supply | $561361 | 32.22% |  |
| RapidGrow LED Technologies | $156224 | 8.97% |  |
| Fly Hye LLC – Cherry | $120114 | 6.89% |  |
| Iluminar Lighting | $73926 | 4.24% |  |
| Healing Touch, LLC | $69411 | 3.98% |  |
| **Top 5 Total for 2025** | $**981036** | **56.30%** | $**1742360** |
| **<u>For 2024</u>** |  |  |  |
| Iluminar Lighting | $1593926 | 17.21% |  |
| Elevated Equipment Supply | $1136580 | 12.27% |  |
| What Rebates | $1112487 | 12.01% |  |
| Cannabis Experts | $509390 | 5.50% |  |
| Boston Cannabis Co. | $383441 | 4.14% |  |
| **Top 5 Total for 2024** | $**4735824** | **51.13%** | $**9261583** |

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We have a diverse customer base that includes wholesalers and retailers. We make a significant amount of our sales to a relatively small number of customers. These customers represent an essential part of the distribution chain of our products.

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***Lighting***

We have 30 different product offerings within our lighting product line.

Our leading products in this product line are the eFinity lighting products, which are also our branded products. We believe our eFinity lighting products outperform the competition in terms of efficiency and quality and therefore provide superior reliability and lighting uniformity compared to our competitors. The LED lighting product lines have what we believe is a higher performance level at a lower cost than current leading lighting products from our competitors.

***Growing Media***

We have two different product offerings within our growing media product lines.

Our leading products in this product line is the Cultiwool product line. Each one of our growing media products enables the agricultural products on which they are used to maximize crop quality and yields.

**Suppliers and Manufacturers**

Currently, both our branded products and distributed products are obtained from our suppliers.

Our branded products are sourced from four different suppliers. Quality control is a critical priority for our team charged with ensuring the supply of the products from our suppliers. We seek to ensure the highest level of quality control for our products through routine factory visits, spot testing, and continually, ongoing supplier due diligence.

Our distributed products are sourced from over twelve different suppliers. We are constantly tracking current and future market trends and reviewing offerings of new suppliers.

Below is a list of our top 5 suppliers and the percentages compared to our total purchases, during the years ended December 31, 2025 and 2024, respectively:

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| | | | |
|:---|:---|:---|:---|
| **Nature's Miracle Top 5 Suppliers for December 31, 2025 and 2024** | **Nature's Miracle Top 5 Suppliers for December 31, 2025 and 2024** | **Nature's Miracle Top 5 Suppliers for December 31, 2025 and 2024** | **Nature's Miracle Top 5 Suppliers for December 31, 2025 and 2024** |
|  | **Purchase<br> Amount** | **Percentage** | **Total <br> Purchase** |
| **<u>For 2025</u>** | | | |
| Ushio America INC | $74820 | 51.50% |  |
| ILUMINAR Lighting (V.) | $58031 | 39.94% |  |
| HangZhou HanGuang Illumination Co., Ltd. | $6900 | 4.75% |  |
| Guang Dong YuaDon Electric Co., LTD. | $2777 | 1.91% |  |
| Solislike-TECH CO., LTD. | $2675 | 1.84% |  |
| **Top 5 Total for 2025** | $**145203** | **99.94%** | $**145292** |
| **<u>For 2024</u>** |  |  |  |
| American Agricultural Innovation Technology Inc. | $3946814 | 53.07% |  |
| Sustainable Pathways Distribution LLC | $1656721 | 22.28% |  |
| Ushio America INC | $494682 | 6.65% |  |
| Tianjin Textile Group Import and Export Inc. | $358019 | 4.81% |  |
| ILUMINAR Lighting (V.) | $307182 | 4.13% |  |
| **Top 5 Total for 2024** | $**6763418** | **90.94%** | $**7436567** |

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Notwithstanding the foregoing, we usually place orders with our suppliers on an as-needed basis, without entering into long-term supply agreements. Therefore, we cannot assure that we will be able to maintain relationships or establish additional relationships with our suppliers as necessary to support the growth and profitability of our business on economically viable terms. A significant interruption in our supply chains caused by any of the above factors could result in increased costs or delivery delays and decrease our net sales and profitability. If we cannot obtain and maintain a supply source for our products, our business will be materially and adversely affected.

**Large Established Distribution Infrastructure**

We currently have one warehouse in the U.S. and may establish a supply agreement with a U.S.-based manufacturing facility in North America in the future.

All of our products sourced from our suppliers are either transported to our customers directly or to our warehouses first by free on board ("FOB") shipping. Products shipped from our warehouses to our customers are transported mainly by third party carriers on an as-needed basis. As such, we are subject to damages that may occur to these goods when they are in transit to customers or our warehouses. Should substantial damage incur while goods are in transit, we could experience a significant loss of revenue, inventory and incur significant out of pocket expenses associated with destruction of the damaged goods which could cause a significant loss from operations and reduction in cash flow. We have not obtained insurance coverage for goods, either the ones that are shipped direct import to our customers whose shipping terms are FOB shipping point, or the ones in transit to our warehouses.

**Competition**

The industries we operate in are highly competitive and fragmented. We have many competitors of varying sizes, including national wholesale distributors and manufacturers of indoor gardening supplies, as well as smaller regional competitors operating in many of the areas where we compete. Some of our competitors and potential competitors may have greater capital resources, facilities, and product line diversity.

Competitive factors in our industry include product quality, brand awareness, consumer loyalty, product variety, product performance, value, reputation, price, and advertising. We believe that we are currently able to compete effectively on each of these factors.

**Government Regulation**

Although there are no national government regulations related to the sale of hydroponic equipment, some products included in our growing media lines are subject to certain registration requirements of certain U.S. state regulators and federal regulations. We have obtained or are exempt from the necessary licenses to sell products in our growing media product lines.

Our grow media product line includes organic soils that contain ingredients that require companies that supply us with these products to register the products with certain regulatory agencies. In some jurisdictions, the use and disposal of these products are regulated by various agencies. A decision by a regulatory agency to substantially restrict the use of such products may adversely affect companies that supply us with such regulated products, thereby limiting our ability to sell those products.

Laws and regulations related to the environment, health, and safety impact us in many ways because of the ingredients used in the products included in our growing media products lines. In the U.S., products containing pesticides generally must be registered with the EPA and similar state agencies before they can be sold or used. The failure of one of our partners to obtain or cancel any such registrations, or to withdraw such pesticides from the market, could adversely affect our business, the severity of which will depend on the products involved, whether other products can be substituted, and whether our competitors are similarly affected. The pesticides in our growing media products are either licensed or exempt from such licenses by the EPA, which may be assessed by the EPA as part of its ongoing exposure risk assessment. The EPA may decide that the pesticides in our growing media products will be restricted or not re-registered for use in the U.S. We cannot predict the outcome of any future assessments, if any, by the EPA or the severity of the impact on our business.

In addition, the use of certain pesticide products is regulated by various international, federal, state, provincial, and local environmental and public health agencies. Although we strive to comply with such laws and regulations and have processes in place designed to achieve compliance, we may be unable to prevent violations of these or other laws and regulations from occurring. Even if we are able to comply with all such laws and regulations and obtain all necessary registrations and licenses, the pesticides or other products we apply or use, or the manner in which we apply or use them, could be alleged to cause injury to the environment, to people or to animals, or such products could be banned in certain circumstances.

**Intellectual Property**

We currently own one registered trademark, "eFinity," which was first used and in commerce on February 1, 2015 and registered with the United Stated Patent and Trademark Office under the personal name of our former President, Zhiyi (Jonathan) Zhang, on January 30, 2018, Serial. No. 87-362,113, subject to a renewal and a filing of declaration of use between every 9th and 10th-year period calculated from the registration date. The mark consists of standard characters without claim to any particular font style, size or color. The trademark is classified as CLASS 9: fluorescent lamp ballasts; lighting ballasts; electrical power distribution and switch management equipment, namely, power distribution panels, electric switches, and electrical controllers. The trademark was assigned to Visiontech, our wholly owned subsidiary, by Zhiyi (Jonathan) Zhang, pursuant to the Intellectual Property Asset Purchase and Assignment Agreement between Visiontech and Zhiyi (Jonathan) Zhang dated September 8, 2022.

**Research and Development**

We currently do not have any research and development centers yet. However, we plan to invest in research and development to improve our products, manufacturing processes, packaging, and delivery systems in the future.

**Human Capital Resources**

As of December 31, 2025, we had a total of 11 employees, all of whom are full-time. None of our employees are subject to collective bargaining agreements, and we have had no labor-related work stoppages. We strive to foster an innovative and team-oriented culture and view our human capital resources and initiatives as an ongoing priority.

Our human capital resources objectives include, as applicable, identifying, recruiting, retaining, incentivizing and integrating our existing and new employees, advisors and consultants. The principal purposes of our equity and cash incentive plans are to attract, retain and reward personnel through the granting of stock-based and cash-based compensation awards, in order to increase stockholder value and the success of our Company by motivating such individuals to perform to the best of their abilities and achieve our objectives. Our employees in Zak Properties LLC, in Toledo, Ohio have not participated in our stock-incentive program.

**Seasonality**

We experience limited seasonality due to the year-round utilization of indoor farming supplies and products.

**Facilities**

We have over 36,599 square feet of warehouses under leases in strategic locations, including one warehouse in the U.S. Our headquarters is located in California. We may establish a manufacturing facility or do a supply agreement with a U.S.-based manufacturer in the future.

Our corporate offices are on the ground floor of the MGR Towers building in Ontario, California. Although we own office space in Toledo, Ohio, we do not use such space for our CEA operations. Only a small suite is dedicated in that Toledo building for our building managers and maintenance staff.

We believe that our existing facilities are adequate for our needs at this time, although we do plan to open new distribution centers in the future to meet anticipated demand resulting from overall market growth.

**Insurance**

Our insurance policies currently include policies that cover business owners liability, workers compensation and employers liability, commercial general liability, and commercial property and business personal property risks, protecting us against certain risks of loss consistent with the exposures associated with the nature and scope of our operations. Our policies are generally subject to certain deductibles, limits and policy terms and conditions.

**Legal Proceedings**

From time to time, we may become involved in various lawsuits and legal proceedings, which arise, in the ordinary course of business. Except as set forth below or in note 18 to the financial statements included in this annual report, we are currently not party to any material legal proceedings.

On August 1, 2025, the Company and Wave Advance, Inc. ("Factor L") entered into a Settlement Agreement and Mutual Release that requires payments from August 5 to October 27, 2025, for an aggregate amount of $201,170. The original loan referred to in this Settlement Agreement was a Standard Merchant Cash Advance Settlement Agreement dated February 2, 2025. There are remedies and other protective language for Factor L in the event of non-performance.

On August 6, 2025, the Company entered into a Standstill Agreement with MaximCash Solutions LLC ("MaximCash"). A complaint was previously filed on July 8, 2025 by MaximCash against the Company in the Third Judicial Court of Utah pertaining to the loan agreement dated December 30, 2024 (the "MaximCash Loan"), as a result of a failure to make the required repayment pursuant to the MaximCash Loan agreement. The claimed amount was $230,738 plus daily interest and attorney fees. On August 7, 2025, the Company wired $61,720 to MaximCash as partial payment. On December 17, 2025, the Company entered into a loan payoff Agreement and Settlement for $40,000 as complete payment for all loans, interest and any claims.

**Corporate History and Background**

Nature's Miracle Holding Inc. was initially incorporated in the Cayman Islands on February 19, 2021 under the name Lakeshore Acquisition II Corp. ("Lakeshore"). The Company was formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more target businesses. On March 11, 2022, Lakeshore consummated an initial public offering ("IPO"), after which its securities began trading on The Nasdaq Global Market.

*Business Combination*

 

On September 9, 2022, Lakeshore, LBBB Merger Sub Inc., a Delaware corporation and wholly-owned subsidiary of the Company, as defined below (the "Merger Sub"), Nature's Miracle, Inc., a Delaware corporation ("Nature's Miracle"), Tie (James) Li, as the representative of the stockholders of Nature's Miracle and RedOne Investment Limited, a British Virgin Islands company, Lakeshore's sponsor (the "Sponsor"), acting as the representative of the stockholders of Lakeshore, entered into a Merger Agreement (as amended on June 7, 2023 by Amendment No. 1 and on December 8, 2023 by Amendment No. 2, the "Merger Agreement"), pursuant to which, among other transactions, on March 11, 2024 (the "Closing Date"), Lakeshore merged with and into LBBB Merger Corp. (the "Company"), a Delaware corporation formed for the sole purpose of reincorporating Lakeshore into the State of Delaware (the "Reincorporation"), with the Company surviving, and immediately after the Reincorporation, the Merger Sub merged with and into Nature's Miracle, with Nature's Miracle surviving the Merger as a wholly-owned subsidiary of the Company (the "Merger" and, together with the other transactions described in the Merger Agreement, the "Business Combination"). In connection with the consummation of the Business Combination (the "Closing"), the Company changed its name to "Nature's Miracle Holding Inc." (sometimes referred to herein as "New Nature's Miracle").

On February 15, 2024, Lakeshore held a special meeting of its stockholders (the "Special Meeting") in connection with the Business Combination. At the Special Meeting, the Lakeshore stockholders voted to approve the Business Combination with Nature's Miracle and the other related proposals.

Pursuant to the Merger Agreement, at the effective time of the Business Combination, each share of Nature's Miracle common stock issued and outstanding immediately prior to the effective time was canceled and automatically converted into the right to receive the applicable pro rata portion of shares of the Company common stock, the aggregate value of which was equal to: (a) $230,000,000 minus (b) the estimated Closing Net Indebtedness (as defined in the Merger Agreement). A total of 3% of the Merger Consideration was placed in escrow for post-closing adjustments (if any) to the Merger Consideration, in accordance with the terms of the Merger Agreement following the Closing. Immediately after giving effect to the Business Combination, there were 26,306,764 issued and outstanding shares of New Nature's Miracle's common stock.

In connection with the Business Combination, the Company changed its name to "Nature's Miracle Holding Inc."

Immediately following the Closing, New Nature's Miracle's board of directors consisted of five (5) individuals, with four (4) of those individuals being appointed by the former board of directors of Nature's Miracle, and the remaining individual was appointed by the Sponsor.

New Nature's Miracle common stock commenced trading on The Nasdaq Global Market under the symbol "NMHI" and its warrants started trading under the ticker symbol "NMHIW" on The Nasdaq Capital Market (the "Capital Market") on March 11, 2024.

On January 13, 2025, we received notice from The Nasdaq Stock Market LLC ("Nasdaq") indicating that the Nasdaq Hearings Panel (the "Panel") determined to delist the Company's securities from Nasdaq based upon the Company's non-compliance with Listing Rule 5550(b)(1), Nasdaq's minimum shareholders' equity rule. As a result of the Panel's decision, trading in the Company's securities was suspended by Nasdaq, effective at the open of trading on Wednesday, January 15, 2025.

Following suspension of trading on Nasdaq, the Company's common stock is trading on the OTC Markets Group, Inc.- Pink Market ("OTC") under its existing symbol, "NMHI."

**Available Information**

Our website address is *www.Nature-Miracle.com*. Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, any amendments to those reports, proxy and registration statements filed or furnished with the SEC, are available free of charge through our website. We make these materials available through our website as soon as reasonably practicable after we electronically file such materials with, or furnish such materials to, the SEC. The reports filed with the SEC by our executive officers and directors pursuant to Section 16 under the Exchange Act are also made available, free of charge on our website, as soon as reasonably practicable after copies of those filings are provided to us by those persons. These materials can be accessed through the "Investors" section of our website. The information contained in, or that can be accessed through, our website is not part of this Annual Report.

**Implications of Being a Smaller Reporting Company**

We are a "smaller reporting company," meaning that the market value of our stock held by non-affiliates is less than $700 million as of our most recently completed second fiscal quarter and our annual revenue was less than $100 million during our most recently completed fiscal year. We may continue to be a smaller reporting company if either (i) the market value of our stock held by non-affiliates is less than $250 million or (ii) our annual revenue was less than $100 million during the most recently completed fiscal year and the market value of our stock held by non-affiliates is less than $700 million as of our most recently completed second fiscal quarter. As a smaller reporting company, we are permitted and intend to rely on exemptions from certain disclosure requirements that are applicable to other public companies that are not smaller reporting companies.

**Implications of Being an Emerging Growth Company**

We are an "emerging growth company" as defined in Section 2(a) of the Securities Act of 1933, as amended (the "Securities Act"), as modified by the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). As an emerging growth company, we may benefit from specified reduced disclosure and other requirements that are otherwise applicable generally to public companies. These provisions include:

● presentation of only two years of audited financial statements and only two years of related management's discussion and analysis of financial condition and results of operations;

● reduced disclosure about our executive compensation arrangements;

● no non-binding stockholder advisory votes on executive compensation or golden parachute arrangements;

● exemption from any requirement of the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis); and

● exemption from the auditor attestation requirement in the assessment of our internal control over financial reporting.

We may benefit from these exemptions until such time that we are no longer an emerging growth company as defined under the Securities Exchange Act of 1934, as amended (the "Exchange Act").

**Item 1A. Risk Factors.**

***We have incurred substantial operating losses since 2022 and there is substantial doubt about our ability to continue as a going concern.***

We have experienced recurring losses from operations and negative cash flows from operating activities since 2022. For the fiscal years ended December 31, 2024 and December 31, 2025 we incurred substantial losses as shown in the financial statement section. Our actual revenue for the year ended December 31, 2024 and 2025 was approximately $9.3 million and $[●] million, respectively. Such volume and relatively low gross profit margins are not enough to support high administrative costs relating to our going public and expenses as a public company. We raised equity capital twice in 2024 but utilized most proceeds towards repayment of debt incurred in the going-public merger, higher corporate costs and paying interest and principal on short-term loans. We also raised money in 2025 by issuing convertible debt and convertible Preferred Equity. Due to the negative cash flow, our financial position is under pressure, and may potentially continue to have, an ongoing need to raise additional cash from outside sources to fund our expansion plan and related operations. Successful transition to attaining profitable operations is dependent upon achieving a level of revenues adequate to support our cost structure. In connection with our assessment of going concern considerations in accordance with Financial Accounting Standard Board's Accounting Standards Update ("ASU") 2014-15, "Disclosures of Uncertainties about an Entity's Ability to Continue as a Going Concern," management has determined that these conditions raise substantial doubt about our ability to continue as a going concern within one year after the date that these consolidated financial statements are issued. If we are unable to realize our assets within the normal operating cycle of a twelve (12) month period, we may have to consider supplementing our available sources of funds through the following sources:

● financial support from our related parties and shareholders;

● other available sources of financing from banks and other financial institutions; and

● equity financing through capital market.

We can make no assurances that required financings will be available for the amounts needed, or on terms commercially acceptable to us, if at all. If one or all of these events does not occur or subsequent capital raises are insufficient to bridge financial and liquidity shortfall, there would likely be a material adverse effect on us and would materially adversely affect our ability to continue as a going concern.

● the substantial shortfall in revenue may lead to severe liquidity constraints, impacting our ability to fund operations and meet financial obligations;

● reduction in revenue may necessitate pay cuts in key areas (e.g., research and development), marketing and staffing, potentially hindering our growth and competitive position;

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● missing revenue projections by a large margin may diminish investor confidence, potentially leading to a decline in stock price and making it more difficult to obtain financings in the future; and

● significant deviations from projected revenue may trigger increased scrutiny from regulatory bodies, necessitating more stringent reporting and compliance efforts.

These risks may threaten our operational viability and could materially adversely affect our business, financial condition and results of operations.  ****

***Our competitors and potential competitors may develop products and technologies that are more effective or commercially attractive than our products, and we may not successfully develop new products or improve existing products or maintain our effectiveness in reaching consumers through rapidly evolving communication vehicles.***

Our products compete against national and regional products and private label products produced by various suppliers, many of which are established companies that provide products that perform functions similar to our products. Our competitors may develop or market products that are more effective or commercially attractive than our current or future products. Some of our competitors have substantially greater financial, operational, marketing and technical resources than we do. Moreover, some of these competitors may offer a broader array of products and sell their products at prices lower than ours, and may have greater name recognition. Due to this competition, there is no assurance that we will not encounter difficulties in generating or increasing revenues and capturing market share. In addition, increased competition may lead to reduced prices and/or margins for products we sell. We may not have the financial resources, relationships with key suppliers, technical expertise or marketing, distribution or support capabilities to compete successfully in the future.

Our future success depends, in part, upon our ability to improve our existing products and to develop, manufacture and market new products to meet evolving consumer needs. We cannot be certain that we will be successful in developing, manufacturing and marketing new products or product innovations which satisfy consumer needs or achieve market acceptance, or that we will develop, manufacture and market new products or product innovations in a timely manner. If we fail to successfully develop, manufacture and market new products or product innovations, or if we fail to reach existing and potential consumers, our ability to maintain or grow our market share may be adversely affected, which in turn could materially adversely affect our business, financial condition and results of operations. In addition, the development and introduction of new and products and product innovations require substantial research, development and marketing expenditures, which we may be unable to recoup if such new products or innovations do not achieve market acceptance.

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***Negative economic conditions, specifically in the United States and Canada, could adversely affect our business.***

Uncertain global economic conditions could adversely affect our business. Negative global economic trends, particularly in the United States and Canada, such as decreased consumer and business spending, high unemployment levels, reduced rates of home ownership and housing starts, high foreclosure rates and declining consumer and business confidence, pose challenges to our business and could result in declining revenues, profitability and cash flow. Although we continue to devote significant resources to support our marketing, unfavorable economic conditions may negatively affect consumer demand for our products. Our most price-sensitive customers may trade down to lower priced products during challenging economic times or if current economic conditions worsen, while other customers may reduce discretionary spending during periods of economic uncertainty, which could reduce sales volumes of our products in favor of our competitors' products or result in a shift in our product mix from higher margin to lower margin products.

***Our international operations make us susceptible to the costs and risks associated with operating internationally.***

We source 100% of our products from suppliers. Our top suppliers include entities in Europe, Asia and North America. We may establish an additional manufacturing facility in North America in the future. Accordingly, we are subject to risks associated with operating in foreign countries, including:

● fluctuations in currency exchange rates;

● additional costs of compliance with local regulations;

● in certain countries, historically higher rates of inflation than in the United States;

● changes in the economic conditions or consumer preferences or demand for our products in these markets;

● restrictive actions by multi-national governing bodies, foreign governments or subdivisions thereof;

● changes in U.S. and foreign laws regarding trade and investment;

● less robust protection of our intellectual property and proprietary rights under foreign laws; and

● difficulty in obtaining distribution and support for our products.

In addition, our operations outside the United States are subject to the risk of new and different legal and regulatory requirements in local jurisdictions, potential difficulties in staffing and managing local operations and potentially adverse tax consequences. The costs associated with operating our continuing international business could adversely affect our results of operations, financial condition and cash flows in the future.

***As a public reporting company, we are subject to rules and regulations established from time to time by the SEC and Public Company Accounting Oversight Board regarding our internal control over financial reporting. If we fail to establish and maintain effective internal control over financial reporting and disclosure controls and procedures, we may not be able to accurately report our financial results or report them in a timely manner, which could adversely affect our business.***

We are a public reporting company subject to the rules and regulations established from time to time by the SEC and the Public Company Accounting Oversight Board. These rules and regulations require, among other things, that we establish and periodically evaluate procedures with respect to our internal control over financial reporting. Reporting obligations as a public company are likely to place a considerable strain on our financial and management systems, processes, and controls, as well as on our personnel.

As a public company, we are required to document and test our internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley Act") so that our management can certify as to the effectiveness of our internal control over financial reporting by the time our second annual report is filed with the SEC and thereafter, which requires us to document and make significant changes to our internal control over financial reporting. As a public company, we are subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as well as rules adopted, and to be adopted, by the SEC and Nasdaq, and other applicable securities rules and regulations, which impose various requirements on public companies, including the establishment and maintenance of effective disclosure and financial controls and changes in corporate governance practices. Our management and other personnel need to devote a substantial amount of time to these public company requirements. Moreover, we expect these rules and regulations to substantially increase our legal and financial compliance costs and to make some activities more time-consuming and costly. We may need to hire additional legal, accounting and financial staff with appropriate public company experience and technical accounting knowledge and maintain an internal audit function.

Likewise, as a public company, we may lose our status as an "emerging growth company," as defined in the JOBS Act, and become subject to the SEC's internal control over financial reporting management and auditor attestation requirements in the year in which we are deemed to be a large accelerated filer, which would occur once we are subject to Exchange Act reporting requirements for 12 months, have filed at least one SEC annual report and the market value of our common equity held by non-affiliates equals or exceeds $700 million as of the end of the prior fiscal year's second fiscal quarter. If we become subject to the SEC's internal control reporting and attestation requirements, we might not be able to complete our evaluation, testing and any required remediation in a timely fashion. In addition, our current controls and any new controls that we develop may become inadequate because of poor design and changes in our business, including increased complexity resulting from any international expansion. Any failure to implement and maintain effective internal controls over financial reporting could adversely affect the results of assessments by our independent registered public accounting firm and their attestation reports.

We are continuing to develop and refine our disclosure controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we will file with the SEC is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and that information required to be disclosed in reports under the Exchange Act is accumulated and communicated to our principal executive and financial officers. We are also continuing to improve our internal control over financial reporting, which includes hiring additional accounting and financial personnel to implement such processes and controls. We expect to incur costs related to implementing an internal audit and compliance function in the upcoming years to further improve our internal control environment.

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***Our limited operating history in the CEA industry makes it difficult to accurately forecast our future operating results and evaluate our business prospects.***

The CEA industry in North America is rapidly evolving due to the constant development of technology and the variety of consumer demand. Our future performance may be more susceptible to certain risks than a company with a longer operating history. Many of the factors discussed below could adversely affect our business and prospects and future performance, including:

● our ability to maintain, expand and further develop our relationships with indoor growing customers to meet their increasing demand;

● our ability to develop and introduce new CEA products;

● the continued growth and development of the CEA industry;

● our ability to keep up with the technological developments or new business models of the rapidly evolving CEA industry;

● our ability to attract and retain qualified and skilled employees;

● our ability to effectively manage our growth; and

● our ability to compete effectively with our competitors in the CEA industry.

We may not be successful in addressing the risks and uncertainties listed above, among others, which may materially and adversely affect our business, results of operations, financial condition, and future prospects.

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***Our marketing activities may not be successful.***

We plan to invest substantial resources in advertising, consumer promotions and other marketing activities to maintain, extend and expand our customer base. There can be no assurance that our marketing strategies will be effective or that the amount we plan to invest in advertising activities will result in a corresponding increase in sales of our products. If our marketing initiatives are not successful, we will have incurred significant expenses without the benefit of higher revenues.

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***We typically do not enter into long term contracts with our customers and all the orders are placed on an as-needed base, and any failure to keep the recurring customers or develop new customers could result in a material adverse impact on our financial performance and business prospects.***

During the fiscal years 2025 and 2024, we derived a significant percentage of our total revenue from a few customers. Our five largest customers in the fiscal years 2025 and 2024 accounted for 56.30% and 51.13% of our total revenue, respectively. Elevated Equipment Supply had been our top customer during fiscal year 2025, accounting for 32.22% and 12.27% of our revenue during the fiscal years 2025 and 2024, respectively. Iluminar Lighting supply had been our top customer during fiscal year 2024, accounting for 4.24% and 17.21% of our revenue during the fiscal years 2025 and 2024, respectively.

Although we do have recurring customers among our top customers, typically we do not enter into long-term contracts with our customers and all the orders are placed on an as-needed base. Any failure in keeping the recurring customers or developing new customers may have a material adverse impact on our results of operations.

There are a number of factors, including our performance, that could cause the loss of, or decrease in the volume of customers and business from a customer. We cannot assure you that we will continue to maintain the business cooperation with our current customers at the same level, or at all. The loss of customers and business from one or more of the significant customers, could materially and adversely affect our revenue and profit. Furthermore, if any significant customer terminates its relationship with us, we cannot assure you that we will be able to secure an alternative arrangement with a comparable customer in a timely manner, or at all.

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***In order to increase our sales and marketing infrastructure, we will need to grow the size of our organization and carefully manage our expanding operations to achieve sustainable growth, and we may experience difficulties in managing this growth.***

As we continue to work to expand our business, we will need to expand the size of our employee base for managerial, operational, sales, marketing, financial and other resources. Future growth would impose significant added responsibilities on members of management, including the need to identify, recruit, maintain, motivate and integrate additional employees. In addition, our management may have to divert a disproportionate amount of its attention away from our day-to-day activities and devote a substantial amount of time to managing these growth activities. Our future financial performance and our ability to continue to grow our operation and compete in the hydroponics industry effectively will depend, in part, on our ability to effectively manage any future growth.

To achieve increased revenue levels, market our products internationally, complete research and develop future products, we believe that we will be required to periodically expand our operations, particularly in the areas of sales and marketing, research and development, manufacturing, and quality assurance. As we expand our operations in these areas, management will face new and increased responsibilities. To accommodate any growth and compete effectively, we must continue to upgrade and improve our information systems, procedures and controls across our business, as well as expand, train, motivate and manage our work force. Our future success will depend significantly on the ability of our current and future management to operate effectively. Our personnel, systems, procedures and controls may not be adequate to support our future operations. If we are unable to effectively manage our expected growth, this could have a material adverse effect on our business, financial condition and results of operations.

***Our estimates of the CEA products market opportunity and forecasts of the market growth may prove to be inaccurate, and even if the market in which we compete achieves the forecasted growth, our business could fail to grow at similar rates, if at all.***

Market opportunity estimates and growth forecasts, including indoor growing and CEA products markets, are subject to significant uncertainty and are based on assumptions and estimates that may not prove to be accurate. The variables that go into the calculation of our market opportunity are subject to change over time, and there is no guarantee that any particular number or percentage of customers covered by these market opportunity estimates will purchase our products at all or generate any particular level of revenue for us. Any expansion in our market depends on a number of factors, including the cost and perceived value associated with our products and those of our competitors. Even if the market in which we compete meets the size estimates and growth forecasts, our business could fail to grow at the rate we anticipate, if at all. Our growth is subject to many factors, including success in implementing its business strategy, which is subject to many risks and uncertainties. Accordingly, the forecasts of market growth, should not be taken as indicative of our future revenue or growth prospects.

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***We occupy our warehouse and officers under long-term leases, and we may be unable to renew our leases at the end of their terms.***

Our warehouse and corporate offices are leased for periods ranging from three to five years, with options to renew for specified periods of time. We believe that our future leases will likely also be long-term and have similar renewal options. If we close or stop fully utilizing a warehouse, we will most likely remain obligated to perform under the applicable lease, which would include, among other things, making the base rent payments, and paying insurance, taxes and other expenses on the leased property for the remainder of the lease term. As of December 31, 2025, our future minimum aggregate rental commitments warehouse leases is approximately $0.5 million. Our inability to terminate a lease when we stop fully utilizing a warehouse or exit a market can have a significant adverse impact on our financial condition, operating results and cash flows.

In addition, at the end of the lease term and any renewal period for a warehouse, we may be unable to renew the lease without substantial additional cost, if at all. If we are unable to renew our warehouse leases, we may close or relocate a warehouse, which could subject us to construction and other costs and risks, which in turn could have a material adverse effect on our business and operating results. Further, we may not be able to secure a replacement warehouse in a location that is as commercially viable, including access to rail service. Having to close a warehouse, even briefly to relocate, could reduce the sales that such warehouse would have contributed to our revenues.

***Unanticipated changes in our tax provisions, the adoption of new tax legislation or exposure to additional tax liabilities could affect our profitability and cash flows.***

We are subject to income and other taxes in the United States federal jurisdiction, various local and state jurisdictions, and one foreign jurisdiction. Our effective tax rate in the future could be adversely affected by changes to our operating structure, changes in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets (such as net operating losses and tax credits) and liabilities, changes in tax laws and the discovery of new information in the course of our tax return preparation process. In particular, the carrying value of deferred tax assets, which are predominantly related to our operations in the United States, is dependent on our ability to generate future taxable income of the appropriate character in the relevant jurisdiction.

From time to time, tax proposals are introduced or considered by the U.S. Congress or the legislative bodies in local, state and foreign jurisdictions that could also affect our tax rate, the carrying value of our deferred tax assets, or our tax liabilities. Our tax liabilities are also affected by the amounts we charge for inventory, services, licenses and funding. We are subject to ongoing tax audits in various jurisdictions. In connection with these audits (or future audits), tax authorities may disagree with our determinations and assess additional taxes. We regularly assess the likely outcomes of our audits in order to determine the appropriateness of our tax provision. As a result, the ultimate resolution of our tax audits, changes in tax laws or tax rates, and the ability to utilize our deferred tax assets could materially affect our tax provision, net income and cash flows in future periods.

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***We may require additional financing to achieve our business goals, and a failure to obtain this necessary capital when needed on acceptable terms, or at all, may force us to delay, limit, reduce or terminate our operations and future growth.***

The CEA products manufacturing and sales business is extremely capital-intensive and we expect to expend significant resources to complete the build-out of our facilities, if any, scale our production capacity, and develop new products. These expenditures are expected to include costs of constructing and commissioning new facilities, costs associated with marketing, working capital, costs of attracting and retaining a skilled local labor force, and costs associated with research and development in support of future commercial opportunities. As of the date of this annual report, we have not committed any capital towards establishing a manufacturing facility, and we do not have any current plans to build one although we may establish a manufacturing facility in the future.

We expect that our existing cash and credit available under our loan agreements will be sufficient to fund our planned operating expenses, capital expenditure requirements through at least the next 12 months. However, our operating plan may change because of factors currently unknown, and we may need to seek additional funds sooner than planned, through debt financings or other sources, such as strategic collaborations. Such financings may result in dilution to stockholders, imposition of debt covenants and repayment obligations, or other restrictions that may adversely affect our business. In addition, we may seek additional capital due to favorable market conditions or strategic considerations even if we believe that we have sufficient funds for current or future operating plans. There can be no assurance that financing will be available to us on favorable terms, or at all. The inability to obtain financing when needed may make it more difficult for us to operate its business or implement our growth plans.

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We currently have one warehouse in California as a distribution center. We may do a supply agreement with a U.S.-based manufacturer in the near future in which case, we can fulfill customer orders directly from such supplier.

Adverse changes or developments affecting our distributing center could impair our ability to deliver our products across the North American market. Any shutdown or period of reduced production, which may be caused by regulatory noncompliance or other issues, as well as other factors beyond our control, such as severe weather conditions, natural disaster, fire, power interruption, work stoppage, disease outbreaks or pandemics, equipment failure or delay in supply delivery, would significantly disrupt our ability to deliver our products, meet our contractual obligations, and operate our business in a timely manner.

Our ability to accurately forecast future results of operations is limited and subject to a number of uncertainties, including our ability to plan for and model future growth. In future periods, our revenue growth could slow or decline for a number of reasons, including slowing demand for our products, increasing competition, a decrease in the growth of the overall market, or our failure, for any reason, to take advantage of growth opportunities. In addition, operating equipment for CEA products manufacturing and assembling are costly to replace or repair, and our equipment supply chains may be disrupted in connection with pandemics, trade wars or other factors, assuming that we will establish a manufacturing facility in the near future. If any material amount of our machinery were damaged, we would be unable to predict when, if at all, it could replace or repair such machinery or find co-manufacturers with suitable alterative machinery, which could adversely affect our business, financial condition and operating results. If our assumptions regarding these risks and uncertainties and future revenue growth are incorrect or change, or if we do not address these risks successfully, our operating and financial results could differ materially from our expectations, and our business could suffer.

***If product liability lawsuits are brought against us, we may incur substantial liabilities.***

Although there have not been any product liability lawsuits brought against us as of the date of this annual report, we face a potential risk of product liability as a result of any of the products that we offer for sale. For example, we may be sued if any product we sell allegedly causes injury or is found to be otherwise unsuitable during product testing, manufacturing, marketing or sale. Any such product liability claims may include allegations of defects in manufacturing, defects in design, a failure to warn of dangers inherent in the product, negligence, strict liability and a breach of warranties. Claims could also be asserted under state consumer protection acts. If we cannot successfully defend ourselves against product liability claims, we may incur substantial liabilities. Even successful defense would require significant financial and management resources. Regardless of the merits or eventual outcome, liability claims may result in: (i) decreased demand for products that we may offer for sale; (ii) injury to our reputation; (iii) costs to defend the related litigation; (iv) a diversion of management's time and our resources; (v) substantial monetary awards to trial participants or patients; (vi) product recalls, withdrawals or labeling, marketing or promotional restrictions; and (vii) a decline in our stock price. Our inability to obtain and retain sufficient product liability insurance at an acceptable cost to protect against potential product liability claims could prevent or inhibit the commercialization of products we develop. We do not maintain any product liability insurance. Even if we obtain product liability insurance in the future, we may have to pay amounts awarded by a court or negotiated in a settlement that exceed our coverage limitations or that are not covered by our insurance, and we may not have, or be able to obtain, sufficient capital to pay such amounts.

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***Our top suppliers are principally located in regions that are subject to earthquakes and other natural and man-made disasters.***

Our top suppliers are located in regions susceptible to natural and man-made disasters, such as the United States and southern China, which have experienced either severe flooding, earthquakes, wildfires, extreme weather conditions or power loss. If there is a major earthquake or any other disaster in a region where one of our top suppliers is located, the ability of the supplier to respond to our request of products could be severely and negatively influenced. Additionally, the disasters could adversely impact the transportation condition in the region, and our ability to transport products from the supplier to our warehouses in the U.S. could be compromised, which could result in our customers experiencing a significant delay in receiving their CEA products and a decrease in our service levels for a period of time. Any such business interruption could materially and adversely affect our business, financial condition, and results of operations.

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***Our reliance on a limited base of suppliers for our products may result in disruptions to our business and adversely affect our financial results.***

During the fiscal years 2025 and 2024, the total dollar volume of the transactions between our five largest suppliers and us accounted for 99.99% and 90.94% of our total dollar volume of the transactions between all our suppliers and us, respectively.

Although we continue to expand our suppliers base, we continue to rely on a limited number of suppliers for our products. If we are unable to maintain supplier arrangements and relationships, if we are unable to contract with suppliers at the quantity and quality levels needed for our business, or if any of our key suppliers becomes insolvent or experience other financial distress, we could experience disruptions in production, which could have a material adverse effect on our financial condition, results of operations and cash flows.

***A significant interruption in the operation of our suppliers' facilities could impact our capacity to produce products and service our customers, which could adversely affect revenues and earnings.***

Operations at our suppliers' facilities are subject to disruption for a variety of reasons, including fire, flooding or other natural disasters, disease outbreaks or pandemics, acts of war, terrorism, government shut-downs and work stoppages. A significant interruption in the operation of our suppliers' facilities, especially for those products manufactured at a limited number of facilities, could significantly impact our capacity to sell products and service our customers in a timely manner, which could have a material adverse effect on our customer relationships, revenues, earnings and financial position.

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***If our suppliers are unable to source raw materials in sufficient quantities, on a timely basis, and at acceptable costs, our ability to sell our products may be harmed.***

The manufacture of some of our products is complex and requires precise high-quality manufacturing that is difficult to achieve. We may experience difficulties in manufacturing our products on a timely basis and in sufficient quantities.

These difficulties have primarily related to difficulties associated with ramping up production of newly introduced products and may result in increased delivery lead-times and increased costs of manufacturing these products. Our failure to achieve and maintain the required high manufacturing standards could result in further delays or failures in product testing or delivery, cost overruns, product recalls or withdrawals, increased warranty costs or other problems that could harm our business and prospects.

In determining the required quantities of our products and the manufacturing schedule, we must make significant judgments and estimates based on historical experience, inventory levels, current market trends and other related factors. Because of the inherent nature of estimates, there could be significant differences between our estimates and the actual amounts of products we require, which could harm our business and results of operations.

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***Disruptions in availability or increases in the prices of raw materials sourced by suppliers could adversely affect our results of operations.***

We source many of our products from suppliers outside of the United States. The general availability and price of raw materials of those products can be affected by numerous forces beyond our control, including political instability, trade restrictions and other government regulations, duties and tariffs, price controls, changes in currency exchange rates and weather.

A significant disruption in the availability of raw materials sourced by our suppliers for any of our key products could cause increases in the price of products we source from our suppliers, which could adversely affect our ability to manage our cost structure. Market conditions may limit our ability to raise selling prices to offset increases in our product sourcing costs. We may not be able to locate or utilize alternative inputs for certain products in time. For certain inputs, new sources of products may have to be qualified under regulatory standards, which can require additional investment and delay bringing a product to market.

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***Arbitration proceedings, legal proceedings, investigations and other claims or disputes are costly to defend and, if determined adversely to us, could require us to pay fines or damages, undertake remedial measures, or prevent us from taking certain actions, any of which could adversely affect our business.***

In the course of our business, we are, and in the future may be, a party to arbitration proceedings, legal proceedings, investigations and other claims or disputes, which have related and may relate to subjects including commercial transactions, intellectual property, securities, employee relations or compliance with applicable laws and regulations.

We face a significant risk due to ongoing litigation that has the potential to result in future financial obligations, adversely impacting our business and profitability. The outcome of the present legal proceedings may lead to financial liabilities, such as settlements or damages, posing a material threat to our financial condition and cash flow. Moreover, adverse litigation outcomes may harm our reputation, affecting customer trust and investor confidence, thereby influencing market share and brand value. While we are actively managing and addressing the litigation, uncertainties persist, emphasizing the importance of transparency in communication with stakeholders and the implementation of effective risk mitigation strategies.

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***We may not be able to adequately obtain, maintain, protect or enforce our intellectual property and other proprietary rights that are material to our business.***

Our ability to compete effectively depends in part on our rights to our registered trademark "eFinity." We have not sought to register every one of our trademarks either in the United States or in every country in which such mark is used. Furthermore, because of the differences in foreign trademark laws, we may not receive the same protection in other countries as we would in the United States with respect to the registered trademark we hold. If we are unable to obtain, maintain, protect and enforce our intellectual property on our trademark, we could suffer a material adverse effect on our business, financial condition and results of operations.

The steps we take to obtain, maintain, protect and enforce our intellectual property right may be inadequate and despite our efforts to protect the right, unauthorized third parties, including our competitors, may use our trademark without our permission. In addition, we cannot guarantee that we have entered into confidentiality agreements with each party that has or may have had access to our know-how and trade secrets. Moreover, our contractual arrangements may be breached or otherwise not effectively prevent disclosure of, or control access to, our intellectual property and confidential information or provide an adequate remedy in the event of an unauthorized disclosure. If we are unable to obtain, maintain, protect or enforce our intellectual property right, we could suffer a material adverse effect on our business, financial condition and results of operations.

Litigation may be necessary to enforce our trademark and protect ourselves against claims by third parties that our products or services infringe, misappropriate or otherwise violate their intellectual property rights or proprietary rights. Any litigation or claims brought by us could result in substantial costs and diversion of our resources and may not be successful, even when our rights have been infringed, misappropriated or otherwise violated. Our efforts to enforce our intellectual property right may be met with defenses, counterclaims and countersuits attacking the validity and enforceability of our intellectual property right, and if such defenses, counterclaims or countersuits are successful, we could lose valuable intellectual property right. Additionally, the mechanisms for enforcement of intellectual property right in foreign jurisdictions may be inadequate.

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***We may be subject to claims that our employees have wrongfully used or disclosed alleged trade secrets of their former employers.***

Although we try to ensure that our employees do not use the intellectual property and proprietary rights, including proprietary information or know-how, of others in their work for us, we may be subject to claims that we or these employees have used or disclosed intellectual property or proprietary rights, including trade secrets or other proprietary information, of any such employee's former employer. We are not aware of any threatened or pending claims related to these matters or concerning agreements with our employees, but in the future litigation may be necessary to defend against such claims. If we fail in defending any such claims, in addition to paying monetary damages, we may lose valuable intellectual property or proprietary rights or personnel. Even if we are successful in defending against such claims, litigation could result in substantial costs and be a distraction to management.

***Intellectual property disputes could cause us to spend substantial resources and distract our personnel from their normal responsibilities.***

Even if resolved in our favor, litigation or other legal proceedings relating to intellectual property claims may cause us to incur significant expenses, and could distract our personnel from their normal responsibilities. In addition, there could be public announcements of the results of hearings, motions or other interim proceedings or developments, and if securities analysts or investors perceive these results to be negative, it could have a substantial adverse effect on the value of our common stock. Such litigation or proceedings could substantially increase our operating losses and reduce the resources available for development activities or any future sales, marketing or distribution activities. We may not have sufficient financial or other resources to adequately conduct such litigation or proceedings. Some of our competitors may be able to sustain the costs of such litigation or proceedings more effectively than we can because of their greater financial resources. Uncertainties resulting from the initiation and continuation of patent and other intellectual property litigation or other proceedings could have a material adverse effect on our ability to compete in the marketplace.

***If our owned trademark is not adequately protected, then we may not be able to build name recognition in our markets of interest and our business may be adversely affected.***

We regard our owned trademark "eFinity," as having significant value and as an important factor in the success of our business. Our trademark may be challenged, infringed, circumvented, declared generic or determined to be infringing on or dilutive of other marks. Additionally, at times, competitors may adopt trademarks, trade names or service marks similar to the one we own, thereby impeding our ability to build brand identity and possibly leading to market confusion. In addition, there could be potential trademark, trade name or service mark infringement claims brought against us. Over the long term, if we are unable to establish name recognition based on our trademark, we may not be able to compete effectively and our business may be adversely affected. Our efforts to enforce or protect our intellectual property and proprietary rights related to our trademark may be ineffective and could result in substantial costs and diversion of resources and could adversely affect our business, financial condition, results of operations and prospects.

**Risks Related to Government and Regulation**

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***Certain state and other regulations pertaining to the use of certain ingredients in growing media could adversely impact us by restricting our ability to sell such products.***

One of our product lines is growing media products. This product line includes certain products, such as organic soils that contain ingredients that require the companies that provide us with these products to register the product with certain regulators. The use and disposal of these products in some jurisdictions are subject to regulation by various agencies. A decision by a regulatory agency to significantly restrict the use of such products that have traditionally been used in the cultivation of our products could have an adverse impact on those companies providing us with such regulated products, and as a result, limit our ability to sell these products.

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***Compliance with, or violation of, environmental, health and safety laws and regulations, including laws pertaining to the use of pesticides, which are commonly used in grow media products, could result in significant costs that adversely impact our reputation, businesses, financial position, results of operations and cash flows.***

International, federal, state, provincial and local laws and regulations relating to environmental, health and safety matters affect us in several ways in light of the ingredients that are used in products included in our growing media product line. In the United States, products containing pesticides generally must be registered with the Environmental Protection Agency (the "EPA"), and similar state agencies before they can be sold or applied. Pesticides are commonly used in grow media products. The failure by one of our partners to obtain or the cancellation of any such registration, or the withdrawal from the marketplace of such pesticides, could have an adverse effect on our businesses, the severity of which would depend on the products involved, whether other products could be substituted and whether our competitors were similarly affected. The pesticides we use are either granted a license by the EPA or exempt from such a license and may be evaluated by the EPA as part of its ongoing exposure risk assessment. The EPA may decide that a pesticide we distribute will be limited or will not be re-registered for use in the United States. We cannot predict the outcome or the severity of the effect on our business of any future evaluations, if any, conducted by the EPA.

In addition, the use of certain pesticide products is regulated by various international, federal, state, provincial and local environmental and public health agencies. Although we strive to comply with such laws and regulations and have processes in place designed to achieve compliance, we may be unable to prevent violations of these or other laws and regulations from occurring. Even if we are able to comply with all such laws and regulations and obtain all necessary registrations and licenses, the pesticides or other products we apply or use, or the manner in which we apply or use them, could be alleged to cause injury to the environment, to people or to animals, or such products could be banned in certain circumstances. The costs of compliance, noncompliance, investigation, remediation, combating reputational harm or defending civil or criminal proceedings, products liability, personal injury or other lawsuits could have a material adverse impact on our reputation, businesses, financial position, results of operations and cash flows.

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***Failure to comply with the United States Foreign Corrupt Practices Act could subject us to penalties and other adverse consequences.***

As a Delaware corporation, we are subject to the United States Foreign Corrupt Practices Act, which generally prohibits United States companies from engaging in bribery or other prohibited payments to foreign officials for the purpose of obtaining or retaining business. Some foreign companies, including some that may compete with us, may not be subject to these prohibitions. Corruption, extortion, bribery, pay-offs, theft and other fraudulent practices may occur from time-to-time in countries in which we conduct our business. However, our employees or other agents may engage in conduct for which we might be held responsible. If our employees or other agents are found to have engaged in such practices, we could suffer severe penalties and other consequences that may have a material adverse effect on our business, financial condition and results of operations.

**General Risk Factors**

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***We may acquire other greenhouses or other indoor farming manufacturing operations, which may divert our management's attention and result in additional dilution to our stockholders. We may be unable to integrate acquired businesses and technologies successfully or achieve the expected benefits of such acquisitions.***

We may evaluate and consider potential strategic transactions, including acquisitions of greenhouses or other indoor farming manufacturing operations, and other assets in the future.

Any acquisition or business relationship may result in unforeseen operating difficulties and expenditures. In particular, we may encounter difficulties assimilating or integrating the business strategy, sales plans, technologies, products, distribution channels, personnel, or operations of the acquired companies, particularly if the key personnel of the acquired company choose not to work for us, their facilities are not easily adapted to work with our technology, or we have difficulty retaining the customers of any acquired business due to changes in ownership, management, customers' experience with the acquired company prior to acquisition, or otherwise. Acquisitions may also disrupt our business, divert our resources, and require significant management attention that would otherwise be available for development of our existing business. Moreover, the anticipated benefits of any acquisition or business relationship may not be realized or we may be exposed to unknown risks or liabilities.

Negotiating these transactions can be time-consuming, difficult, and expensive, and our ability to complete these transactions may often be subject to approvals that are beyond our control. Consequently, these transactions, even if announced, may not be completed. For one or more of these transactions, we may:

● use cash that we may need in the future to operate our business;

● encounter difficulties retaining key employees of the acquired company or integrating diverse facility operations or business cultures;

● incur large charges or substantial liabilities;

● incur additional debt on terms unfavorable to us or that we are unable to repay;

● divert our resources to understand and comply with new jurisdictions if such acquired company is in a new country; and/or; and

● become subject to adverse tax consequences, substantial depreciation, or deferred compensation charges.

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***Our success depends on employing a skilled local labor force, and failure to attract and retain qualified employees could negatively impact our business, results of operations and financial condition.***

Our operations require significant labor, and even if we are able to identify, hire and train our labor force, there is no guarantee that we will be able to retain these employees. Any shortage of labor or lack of regular availability could restrict our ability to operate our facilities profitably, or at all.

In addition, our success and future growth depend largely upon the continued services of our executive officers as well as other key team members. These executives and key team members have been primarily responsible for determining the strategic direction of the business and executing our growth strategy and are integral to our brand, culture and reputation with suppliers and customers in the industry. From time to time, there may be changes in our executive management team or other key team members resulting from the hiring or departure of these personnel. The loss of one or more of executive officers or key team members, or the failure by the executive team and key team members to effectively work together and lead the company, could harm our business. Our earlier growth stage may result in less management depth with less established succession planning than may be found in later-stage companies.

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***Litigation may adversely affect our business, financial condition and results of operations.***

From time to time in the normal course of our business operations, we may become subject to litigation that may result in liability material to our financial statements as a whole or may negatively affect our operating results if changes to our business operation are required. The cost to defend such litigation may be significant and may require a diversion of our resources. There also may be adverse publicity associated with litigation that could negatively affect customer perception of our business, regardless of whether the allegations are valid or whether we are ultimately found liable. As a result, litigation may adversely affect our business, financial condition and results of operations.

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***Damage to our reputation or our brand could negatively impact our business, financial condition and results of operations.***

We must grow the value of our brand to be successful. We intend to develop a reputation based on the high quality of our products, services and trained personnel, as well as on our particular culture and the experience of our customers with our recommended CEA products solutions. If we do not make investments in areas such as marketing and advertising, as well as personnel training, the value of our brand may not increase or may be diminished. Any incident, real or perceived, regardless of merit or outcome, that adversely affects our brand, such as, but not limited to, accidents from use of our products, or allegations or perceptions of non-compliance or failure to comply with ethical and operational standards, could significantly reduce the value of our brand, expose us to negative publicity, and damage our overall business and reputation.

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***Members of our Board will have other business interests and obligations to other entities.***

None of our independent directors will be required to manage our business as their sole and exclusive function and they may have other business interests and may engage in other activities in addition to those relating to us, provided that such activities do not compete with the business of our Company or otherwise breach their agreements with us. We are dependent on our directors and executive officers to successfully operate our Company, and their other business interests and activities could divert time and attention from operating our business.

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***Our actual operating results may differ significantly from our guidance.***

From time to time, we provide forward looking estimates regarding its future performance that represent our management's estimates as of a point in time. These forward-looking statements are based on projections prepared by our management. These projections are not prepared with a view toward compliance with published guidelines of the American Institute of Certified Public Accountants, and neither our independent registered public accountants nor any other independent expert or outside party compiles or examines the projections and, accordingly, no such person expresses any opinion or any other form of assurance on our projections.

Projections are based upon a number of assumptions and estimates that, while presented with numerical specificity, are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control and are based upon specific assumptions with respect to future business decisions and conditions, some of which will change. The principal reason that we provide forward-looking information is to provide a basis for our management to discuss its business outlook with stockholders. Forward-looking statements are necessarily speculative in nature, and it can be expected that some or all of the assumptions of our forward-looking statements will not materialize or will vary significantly from actual results. Accordingly, our forward-looking statements are only an estimate of what management believes is realizable as of the date of release. Actual results will vary from our forward-looking statements and the variations may be material. In light of the foregoing, investors are urged not to rely upon, or otherwise consider, our guidance in making investment decisions.

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***We qualify as an "emerging growth company" within the meaning of the Securities Act, and if we take advantage of certain exemptions from disclosure requirements available to emerging growth companies, it could make our securities less attractive to investors and may make it more difficult to compare our performance to the performance of other public companies.***

We qualify as an "emerging growth company" as defined in Section 2(a)(19) of the Securities Act, as modified by the JOBS Act. As such, we are eligible for and intend to take advantage of certain exemptions from various reporting requirements applicable to other public companies that are not emerging growth companies for as long as we continue to be an emerging growth company, including (i) the exemption from the auditor attestation requirements with respect to internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act, (ii) the exemptions from say-on-pay, say-on-frequency and say-on-golden parachute voting requirements and (iii) reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements.

We will remain an emerging growth company until the earliest of (i) the last day of the fiscal year in which the market value of the shares of our common stock that are held by non-affiliates exceeds $700 million as of December 31 of that fiscal year, (ii) the last day of the fiscal year in which we have total annual gross revenue of $1.235 billion or more during such fiscal year (as indexed for inflation), (iii) the date on which we have issued more than $1 billion in non-convertible debt in the prior three-year period or (iv) the last day of the fiscal year following the fifth anniversary of the date of the first sale of common stock in Lakeshore's initial public offering of units, consummated on March 11, 2022. In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the exemption from complying with new or revised accounting standards provided in Section 7(a)(2)(B) of the Securities Act as long as it is an emerging growth company. An emerging growth company can therefore delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected not to opt out of such extended transition period and, therefore, we may not be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies. Investors may find our securities less attractive because we will rely on these exemptions, which may result in a less active trading market for our securities.

**Risks Related to and Ownership of our Common Stock**

***The Warrants may have an adverse effect on the market price of our common stock and make it more difficult to effect a business combination.***

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We have issued Warrants and Pre-Funded Warrants to purchase shares of common stock. To the extent we issue shares of common stock to effect a future business combination, the potential for the issuance of a substantial number of additional shares upon exercise of the Warrants or Pre-Funded Warrants could make us a less attractive acquisition vehicle in the eyes of a target business. Such warrants, when exercised, will increase the number of issued and outstanding shares of common stock and reduce the value of the shares issued to complete the business combination. Accordingly, the Pre-Funded Warrants and Warrants may make it more difficult to effectuate a business combination or increase the cost of acquiring a target business. Additionally, the sale, or even the possibility of a sale, of the shares of common stock underlying the Pre-Funded Warrants and Warrants could have an adverse effect on the market price for our securities or on our ability to obtain future financing. If and to the extent the Pre-Funded Warrants and Warrants are exercised, you may experience dilution to your holdings.

***The Warrants and Pre-Funded Warrants are speculative in nature.***

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Except as otherwise set forth in the Pre-Funded Warrants and Warrants, the Pre-Funded Warrants and Warrants do not confer any rights of common stock ownership on their holders, such as voting rights, but rather merely represent the right to acquire shares of our common stock at a fixed price for a limited period of time. Specifically, commencing upon Warrant Stockholder Approval, holders of the Series A Warrants may exercise their right to acquire the common stock and pay an exercise price of $0.1118 per share, subject to adjustment, from time to time, until the 5 year anniversary from the date of the Warrant Stockholder Approval, after which date any unexercised Series A Warrants will expire and have no further value, and holders of the Pre-Funded Warrants may exercise their right to acquire the common stock and pay an exercise price of $0.0001 per share, subject to adjustment, from time to time, until all of the Pre-Funded Warrants have been exercised; and commencing upon Warrant Stockholder Approval, holders of Series B Warrants may exercise their right to acquire the common stock and pay an exercise price of $0.0001 per share, subject to adjustment, from time to time, until the 2 year anniversary from the date of Warrant Stockholder Approval, after which date any unexercised Series B Warrants will expire and have no further value.

***The Warrants may not be exercised until we receive the Warrant Stockholder Approval.***

Under Nasdaq listing rules, the Warrants may not be exercised unless and until we obtain the Warrant Stockholder Approval. While we intend to promptly seek stockholder approval, there is no guarantee that the Warrant Stockholder Approval will ever be obtained. If we are unable to obtain the Warrant Stockholder Approval, the Warrants will have substantially less value. In addition, we will incur substantial cost, and management will devote substantial time and attention, in attempting to obtain the Warrant Stockholder Approval.

***Since the Pre-Funded Warrants and Warrants are executory contracts, they may have no value in a bankruptcy or reorganization proceeding.***

In the event a bankruptcy or reorganization proceeding is commenced by or against us, a bankruptcy court may hold that any unexercised Warrants or Pre-Funded Warrants are executory contracts that are subject to rejection by us with the approval of the bankruptcy court. As a result, holders of the Warrants and Pre-Funded Warrants may, even if we have sufficient funds, not be entitled to receive any consideration for their Warrants or Pre-Funded Warrants or may receive an amount less than they would be entitled to if they had exercised their Warrants or Pre-Funded Warrants prior to the commencement of any such bankruptcy or reorganization proceeding.

***Stockholders may experience future dilution as a result of this and future equity offerings.***

In order to raise additional capital, we may in the future offer additional shares of our common stock or other securities convertible into or exchangeable for our common stock. Investors purchasing our shares or other securities in the future could have rights superior to existing common stockholders, and the price per share at which we sell additional shares of our common stock or other securities convertible into or exchangeable for our common stock in future transactions may be higher or lower than the current price per share.

***Our stock price may fluctuate significantly.***

The market price of our common stock may fluctuate widely, depending on many factors, some of which may be beyond our control, including:

● actual or anticipated fluctuations in our results of operations due to factors related to our business;

● success or failure of our business strategies;

● competition and industry capacity;

● changes in interest rates and other factors that affect earnings and cash flow;

● our level of indebtedness, our ability to make payments on or service our indebtedness and our ability to obtain financing as needed;

● our ability to retain and recruit qualified personnel;

● our quarterly or annual earnings, or those of other companies in our industry;

● announcements by us or our competitors of significant acquisitions or dispositions;

● changes in accounting standards, policies, guidance, interpretations or principles;

● the failure of securities analysts to cover, or positively cover, our common stock;

● changes in earnings estimates by securities analysts or our ability to meet those estimates;

● the operating and stock price performance of other comparable companies;

● investor perception of the Company and our industry;

● overall market fluctuations unrelated to our operating performance;

● results from any material litigation or government investigation;

● changes in laws and regulations (including tax laws and regulations) affecting our business;

● changes in capital gains taxes and taxes on dividends affecting stockholders; and

● general economic conditions and other external factors.

Low trading volume for our common stock, which may occur if an active trading market does not develop, among other reasons, would amplify the effect of the above factors on stock price volatility.

Should the market price of our shares drop significantly, stockholders may institute securities class action lawsuits against us. A lawsuit against us could cause us to incur substantial costs and could divert the time and attention of our management and other resources.

***If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline.***

The trading market for our common stock will depend in part on the research and reports that securities or industry analysts publish about us or our business. Several analysts may cover our stock. If one or more of those analysts downgrade our stock or publish inaccurate or unfavorable research about our business, our stock price would likely decline. If one or more of these analysts cease coverage of our Company or fail to publish reports on us regularly, demand for our stock could decrease, which might cause our stock price and trading volume to decline.

***Our Stock is Trading on the OTC- Pink Market***

On January 15, 2025, our common stock and our warrants started trading on the OTC under its existing symbol, "NMHI" and "NMHIW" respectively.

Since our common stock is trading on the OTC, it could negatively affect us by: (i) reducing the liquidity and market price of our common stock; (ii) reducing the number of investors willing to hold or acquire our common stock, which could negatively impact our ability to raise equity financing; (iii) limiting our ability to use certain registration statements to offer and sell freely tradable securities, thereby limiting our ability to access the public capital markets; and (iv) impairing our ability to provide equity incentives to our employees.

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***If there is no viable public market for our common stock, you may be unable to sell your shares at or above your purchase price.***

Although our common stock is listed on OTC, an active trading market for our shares may not be. You may be unable to sell your shares quickly or at the market price if trading in shares of our common stock is not active. Further, an inactive market may also impair our ability to raise capital by selling shares of our common stock and may impair our ability to enter into strategic partnerships or acquire companies or products by using our shares of common stock as consideration.

***We may be subject to securities litigation, which is expensive and could divert our management's attention.***

The market price of our securities may be volatile, and in the past companies that have experienced volatility in the market price of their securities have been subject to securities class action litigation. We may be the target of this type of litigation in the future. Securities litigation against us could result in substantial costs and divert our management's attention from other business concerns.

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***You should consult your own independent tax advisor regarding any tax matters arising with respect to the securities offered in connection with this offering.***

Participation in this offering could result in various tax-related consequences for investors. All prospective purchasers of the resold securities are advised to consult their own independent tax advisors regarding the U.S. federal, state, local and non-U.S. tax consequences relevant to the purchase, ownership and disposition of the resold securities in their particular situations.

**IN ADDITION TO THE ABOVE RISKS, BUSINESSES ARE OFTEN SUBJECT TO RISKS NOT FORESEEN OR FULLY APPRECIATED BY MANAGEMENT. IN REVIEWING THIS FILING, POTENTIAL INVESTORS SHOULD KEEP IN MIND THAT OTHER POSSIBLE RISKS MAY ADVERSELY IMPACT THE COMPANY'S BUSINESS OPERATIONS AND THE VALUE OF THE COMPANY'S SECURITIES.**

**Item 1B. Unresolved Staff Comments.**

None.

**Item 1C. Cybersecurity.**

We acknowledge the increasing importance of cybersecurity in today's digital and interconnected world. Cybersecurity threats pose significant risks to the integrity of our systems and data, potentially impacting our business operations, financial condition and reputation.

As a smaller reporting company, we currently do not have formalized cybersecurity measures, a dedicated cybersecurity team or specific protocols in place to manage cybersecurity risks. Our approach to cybersecurity is in the developmental stage, and we have not yet conducted comprehensive risk assessments, established an incident response plan or engaged with external cybersecurity consultants for assessments or services.

Given our current stage of cybersecurity development, we have not experienced any significant cybersecurity incidents to date. However, we recognize that the absence of a formalized cybersecurity framework may leave us vulnerable to cyberattacks, data breaches and other cybersecurity incidents. Such events could potentially lead to unauthorized access to, or disclosure of, sensitive information, disrupt our business operations, result in regulatory fines or litigation costs and negatively impact our reputation among customers and partners.

Risk Management and Strategy

We are in the process of evaluating our cybersecurity needs and developing appropriate measures to enhance our cybersecurity posture. This includes considering the engagement of external cybersecurity experts to advise on best practices, conducting vulnerability assessments and developing an incident response strategy. Our goal is to establish a cybersecurity framework that is commensurate with our size, complexity and the nature of our operations, thereby reducing our exposure to cybersecurity risks.

In addition, the Board will oversee any cybersecurity risk management framework and a dedicated committee of the Board, or an officer appointed by the Board will review and approve any cybersecurity policies, strategies and risk management practices.

Despite our efforts to improve our cybersecurity measures, there can be no assurance that our initiatives will fully mitigate the risks posed by cyber threats. The landscape of cybersecurity risks is constantly evolving, and we will continue to assess and update our cybersecurity measures in response to emerging threats.

**Item 2. Properties.**

We have over 36,599 square feet of warehouse space under lease in Upland California. Our U.S. corporate headquarters is in Ontario, California.

We believe that our existing facilities are adequate for our needs at this time, although we do plan to open new distribution centers in the future to meet anticipated demand resulting from overall market growth.

We recently acquired an office building in downtown Toledo commonly known as PNC Bank Tower. We lease the building to the Federal Courts, PNC Bank, law firms and other commercial office space users. We allocate a small space for our four employees in Ohio, who primarily work in maintenance and leasing management.

**Item 3. Legal Proceedings.**

From time to time, we may become involved in various lawsuits and legal proceedings, which arise, in the ordinary course of business. Except as set forth below or in note 18 to the financial statements included in this annual report, we are currently not party to any material legal proceedings.

On July 16, 2025, Funders App LLC dba Tenthly, a lender to the Company ("Factor K") filed a complaint in Court in Monroe County, New York referring to an outstanding balance of $100,588 after payments of $46,551 on its loan agreement with the Company, dated February 11, 2025. The total claimed amount is $129,463 plus interest from June 30, 2025 and attorney fees. On July 22, 2025, Factor K and the Company entered into a Stipulation of Settlement Agreement pursuant to which each party agreed to a settlement amount and remittance schedule that commenced July 23, 2025. In the event of default on payments, Factor K may file a default judgment for the sum of $129,463.45 less remittances pursuant to the Stipulation of Settlement Agreement.

On July 31, 2025, Webfunder LLC ("Factor I") filed a Settlement Agreement for Stay of Prosecution in the Seventeenth Judicial Court in Broward County, Florida, pursuant to which both parties agreed to a new payment schedule from August 5, 2025 to December 9, 2025 for a total amount of $186,572. The original loan referred to in this Settlement Agreement for Stay of Prosecution was a standard merchant cash advance settlement agreement dated December 12, 2024 (Refer to Note 18 for detail). There are remedies and other protective language for Factor I in the event of non-performance.

On August 1, 2025, the Company and Wave Advance, Inc. ("Factor L") entered into a Settlement Agreement and Mutual Release that requires payments from August 5 to October 27, 2025, for an aggregate amount of $201,170. The original loan referred to in this Settlement Agreement was a Standard Merchant Cash Advance Settlement Agreement dated February 2, 2025 (Refer to Note 18 or detail). There are remedies and other protective language for Factor L in the event of non-performance.

On August 6, 2025, the Company entered into a Standstill Agreement with MaximCash Solutions LLC ("MaximCash"). A complaint was previously filed on July 8, 2025 by MaximCash against the Company in the Third Judicial Court of Utah pertaining to the loan agreement dated December 30, 2024 (the "MaximCash Loan"), as a result of a failure to make the required repayment pursuant to the MaximCash Loan agreement. The claimed amount was $230,738 plus daily interest and attorney fees. On August 7, 2025, the Company wired $61,720 to MaximCash as partial payment. On December 17, 2025, the Company entered into a loan payoff Agreement and Settlement of a prior complaint with this Lender. The Company and MaximCash settled for $40,000 as complete payment for all loans, interest and any claims.

**Item 4. Mine Safety Disclosures.**

Not applicable.

**PART II**

**Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.**

**Market Information**

The Company's common stock commenced trading on The Nasdaq Global Market under the symbol "NMHI" on March 11, 2024, and the Company's warrants commenced trading on the Nasdaq Capital Market under the symbol "NMHIW" on March 11, 2024. On January 13, 2025, we received notice from The Nasdaq Stock Market LLC indicating that the Nasdaq Hearings Panel (the "Panel") determined to delist the Company's securities from Nasdaq based upon the Company's non-compliance with Listing Rule 5550(b)(1), Nasdaq's minimum shareholders' equity rule. As a result of the Panel's decision, trading in the Company's securities was suspended by Nasdaq, effective at the open of trading on Wednesday, January 15, 2025.

On January 15, 2025, our shares of common stock and warrants began trading on OTC under the symbol "NMHI" and "NMHIW" respectively. On Marh 17, 2026 the Company was informed by OTC Markets that it is in violation of minimum trading price of .01 for 30 consecutive days. The Company has 90 days to cure. The Company has started the process to enact a reverse stock split in order to increase the per share trading price.

**Holders**

There are [●] holders of the Company's common stock as of [●], 2026.

**Dividend Policy** 

The Company has not paid any cash dividends on shares of its common stock to date. The payment of any cash dividends in the future will be within the discretion of the Board. The payment of cash dividends in the future will be contingent upon the Company's revenues and earnings, if any, capital requirements, and general financial condition. It is the present intention of Board to retain all earnings, if any, for use in business operations, and accordingly, the Board does not anticipate declaring any dividends in the foreseeable future.

**Recent Sales of Unregistered Equity Securities**

***Series B to F Convertible Preferred Issuances***

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On April 8, 2025, Big Lake Capital LLC invested $678,290 in the form of a convertible note. The exercise price is 0.198 and has been exercised. Shares issued are 3,425,706. The control person of Big Lake Capital LLC is Tie Li.

On September 18, 2025, Big Lake Capital LLC sold its interest in Zak Properties to the Company and was issued $5,000,000 of Series B Convertible Preferred and $9,500,000 Series C Convertible Preferred, The Series C has been fully converted to 80,508,475 common shares.

On September 18, 2025 the Company signed a $3,000,000 Convertible note due to Big Lake Capital LLC as part of the sale of Zak Properties LLC. The conversion price is to be determined.

On September 19, 2025, YK Capital Management, LLC invested $700,000 and was issued Series D Convertible Preferred Shares. The conversion price is to be determined. Ting Chen Kao, a foreign-based investor, is the control party at YK Capital Management.

On October 30 and 31, 2025 Huanfu Cui invested $200,000 and $250,000, respectively. He added $50,000 on March 19, 2026 and was issued Series F Preferred Shares amounting to $500,000.

***Convertible Loans***

On May 7, 2025 the Company secured a $140,250 convertible note with 1800Diagonal Lending LLC. The conversion option is subject to a six-month holding period as per Rule 144 of the SEC with a conversion price at a discount of the prior 20 trading days.

On July 30, 2025, the Company secured a $90,200 convertible loan with 1800Diagonal Lending LLC. The conversion option is subject to six-month holding period as per Rule 144 of the SEC with a conversion price calculated at a discount of prior 20 trading days.

On August 15, 2025, the Company secured a $90,200 convertible loan with 1800Diagonal Lending LLC. The conversion option is subject to six-month holding period as per Rule 144 of the SEC with a conversion price at a discount of the prior 20 trading days.

On July 30, 2025, the Company secured a $230,000 convertible loan with Labrys Fund II LLP. The conversion option is subject to six-month holding period as per Rule 144 of the SEC with a conversion price at a discount of the prior 15 trading days.

On August 5, 2025, the Company secured $172,500 convertible loan with FirstFire Global. The conversion option is subject to six-month holding period as per Rule 144 of the SEC with a conversion price at a discount of the prior 10 trading days.

On August 4, 2025, the Company secured a $82,500 convertible loan with Lambda Venture Partners. The conversion option is subject to six-month holding period as per Rule 144 of the SEC with a conversion price at a discount of the prior 10 trading days.

On October 1, 2025 the Company secured a $112,800 convertible note with 1800Diagonal Lending LLC. The conversion option is subject to a six-month holding period as per Rule 144 of the SEC with a conversion price at a discount of the prior 20 trading days.

On September 18, 2025 the Company secured a $130,000 convertible note with CFI Capital LLC. The conversion option is subject to a six-month holding period as per Rule 144 of the SEC with a conversion price at a discount of the prior 15 trading days.

On October 16, 2025, the Company secured a $37,500 convertible loan with AES Capital Management. The conversion option is subject to six-month holding period as per Rule 144 of the SEC with a conversion price at a discount of the prior 10 trading days.

On August 4, 2025, the Company secured a $82,500 convertible loan with Lambda Venture Partners.. The conversion option is subject to six-month holding period as per Rule 144 of the SEC with a conversion price at a discount of the prior 10 trading days.

On December 10, 2025 the Company secured a $126,360 convertible loan with 1800Diagonal Lending LLC. The conversion option is subject to six-month holding period as per Rule 144 of the SEC with a conversion price at a discount of the prior 20 trading days.

On December 10, 2025 the Company secured a $58,500 convertible loan with Boot Capital LLC. The conversion option is subject to a six-month holding period as per Rule 144 of the SEC with a conversion price at a discount of the prior 20 trading days.

On December 26, 2025, the Company secured a $55,555 convertible loan with Quick Capital LLC. The conversion option is subject to six-month holding period as per Rule 144 of the SEC with a conversion price at a discount of the prior 15 trading days.

***Note with Warrants***

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On August 15, 2025 the Company secured a $100,000 note with Actus Fund. The lender was granted 500,000 in warrants at a price of $0.20.

**Purchases of Equity Securities by the Issuer and Affiliated Purchasers**

None.

**2024 Equity Incentive Plan**

On September 1, 2022, the Board of Directors of Lakeshore adopted and approved the Nature's Miracle, Inc. 2024 Equity Incentive Plan (the "2024 Plan"). On February 15, 2024, the shareholders of Lakeshore approved the adoption of the 2024 Plan. The 2024 Plan provides for the grant of incentive stock options, non-qualified stock option, stock appreciation rights, restricted stock, restricted stock units and other stock or equity-related cash-based awards. Directors, officers and other employees of the Company and its subsidiaries, as well as others performing consulting or advisory services for the Company, will be eligible for grants under the 2024 Plan.

**<u>EQUITY PLAN INFORMATION</u>**

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| | | | |
|:---|:---|:---|:---|
| **Plan Category:** | **Number of<br> securities to be<br> issued upon<br> exercise of<br> outstanding<br> options,<br> warrants and<br> rights:** | **Weighted<br> average<br> exercise<br> price of <br> outstanding<br> options,<br> warrants and<br> rights:** | **Number of<br> securities<br> remaining<br> available for<br> future<br> issuance:** |
| *<u>2024 Equity Incentive Plan:</u>* |  |  |  |
| Equity compensation plans approved by security holders |  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | [2,630,677] |
| Equity compensation plans not approved by security holders |  | - | - |
| **Total** |  | $**-** | [2,630,677] |

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**Item 6. [Reserved]**

None.

**Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation.**

 

*The following Management's Discussion and Analysis should be read in conjunction with our financial statements and the related notes thereto included elsewhere herein. The Management's Discussion and Analysis ("MD&A") contains forward-looking statements that involve risks and uncertainties, such as statements of our plans, objectives, expectations and intentions. Any statements that are not statements of historical fact are forward-looking statements. When used, the words "believe," "plan," "intend," "anticipate," "target," "estimate," "expect," and the like, and/or future-tense or conditional constructions ("will," "may," "could," "should," etc.), or similar expressions, identify certain of these forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements in this form. Our actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors.*

 

*Historical results may not indicate future performance. Our forward-looking statements reflect our current views about future events, are based on assumptions and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those contemplated by these statements. We undertake no obligation to publicly update or revise any forward-looking statements, including any changes that might result from any facts, events, or circumstances after the date hereof that may bear upon forward-looking statements. Furthermore, we cannot guarantee future results, events, levels of activity, performance, or achievements. Unless otherwise indicated or the context otherwise requires, references in this section to "we," "us," "our," and other similar terms refer to Nature's Miracle Holding Inc. and its consolidated subsidiaries and VIE.*

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***Overview***

We are a growing agriculture technology company providing products to indoor growers in a CEA (Controlled Environment Agriculture) setting in North America. Our main products are commercial grade LED lights and related equipment designed for indoor growers. For over 10 years, the Company has utilized manufacturing relationships in China to provide quality and cost-efficient products in this space. In the 4<sup>th</sup> quarter 2024, we renamed a subsidiary to Hydroman Electric Inc. for the purpose of entering electric vehicle ("EV") market as we aim to distribute EV medium sized trucks to customers in Latin America and also develop indoor growing systems within these EV trucks. In 2024, the Company also started investments in Future Tech Inc., a Bitcoin mining and data center business.

We focus on the greenhouse and cultivation industry and aim at providing integrated greenhouse solutions, including grow lights, dehumidifiers, coco and grow media for vertical farming and multiple growing system. These systems enable year-round cultivation of crops, avoids harsh environments with very cold or hot climate. Many states focused on farming are limited to grow crops are certain months such as Spring to Fall only, and or are too far from production states too have fresh produce year-round. There are cost advantages also as vertical farming systems produces a much higher yield per acre of land. In most cases, water consumption is much lower, up to 90%. Many indoor growers can locate closer to large population centers which can significantly reduce cost of trucking, and lead time whilst reducing carbon emissions as well.

We operate mainly through two subsidiaries in California, Visiontech and Hydroman. Visiontech is known for the brand "eFinity" and provides high-efficiency and high-quality grow lights, grow media, fixtures and other related equipment; Hydroman supplies commercial greenhouse developers and owners with professional lighting technology and equipment. On November 11, 2024, Hydroman, Inc. changed its name to Hydroman Electric Corporation and will focus on business of electric vehicles distribution.

In its first expansion plan, the Company has added additional products to our offering. These include organic and non-organic fertilizers, organic plant growth additives, and dehumidifiers. We have diverse suppliers including from countries such as India, Holland and Turkey. Additional equipment is being considered as well. These are value add components that will help growers increase yield, but more importantly reduce failures and dramatically improve growing environments such. The new products are a natural complement to its our base of LED grow lights.

The Company also seeks to enter the joint ventures in other industry verticals to utilize excess space available for vertical farming.

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***Trends and Expectations***

The following factors have been important to our business, and we expect them to impact our results of operations and financial condition in future periods:

 

*Product and Brand Development*

We plan to increase investments in product and brand development. We actively evaluate and pursue acquisitions of product brand names and improvements on existing products. We continue to work with our suppliers in improving lighting products to be both of the highest quality and simultaneously cost effective for the customer. The Company invests in trips abroad to source and partner with manufacturing companies. We expect to develop additional manufacturing relationships and suppliers in Europe in the near future.

The Company is also developing proprietary "all in one" automated and robotic indoor growing systems that are under design and testing phases.

The Company utilizes its vast network in the industry and recent publicity in listing on Nasdaq in acquiring leads for potential partnerships in sourcing, research and development of new product and business acquisitions. 

 

*Regulatory Environment*

The importation of LED lighting and distribution of such equipment in the United States and Canada does not require strict government disclosures and technical inspections. The Company obtains local business permits to store in our main warehouses, obtain licenses to resell, and follows guidelines on packaging. Certain utility companies in the U.S. have programs that award rebates to heavy usage customers, some of which are in the indoor farming business. These customers are required to install LED lights with a minimum 50,000 hours life. There is also a performance requirement set by DesignLights Consortium, a non-profit energy improvement agency.

 

*Sourcing*

The Company has long-term relationships with suppliers in Asia. Our top three suppliers of LED equipment are American Agricultural Innovation Technology Inc., Solislike-Tech Co., Ltd., Dongguan ZSC Lighting Co., Ltd. Each supplier provides us net 30 to net 90-day terms. The Company has also been approached by established lighting companies based in Japan and Germany. On grow feed, fertilizers and nutrients, our potential suppliers are based in Europe and some in Asia. Our grow container product was jointly developed and manufactured by a company based in Shenzhen, China.

On April 24, 2023, we entered into a strategic cooperation agreement with Sinoinnovo Technology (Guangdong) Co., Ltd. ("Sinoinnovo"), a company incorporated under the laws of China, pursuant to which Nature's Miracle will source from Sinoinnovo its grow light systems for distribution in the U.S. and Europe. Both companies will also cooperate jointly to set up advanced manufacturing capabilities in China and the U.S.

On October 28, 2025 we entered into a licensing agreement with Datavault AI (Nasdaq: DVLT), a leader in patented data tokenization and monetization. This agreement calls for Nature's Miracle to license Datavault AI's Carbon Credit Tokenization System.

 

*Asset acquisition of Zak Properties, LLC*

On September 18, 2025, the Company entered into a Membership Interest Purchase Agreement (the "Purchase Agreement") with Big Lake Capital LLC ("Big Lake"), pursuant to which, the Company agreed to purchase from Big Lake all of the membership interests of Zak Properties, LLC, an Ohio limited liability company ("Zak Properties"), which in turn owns certain real property located in the State of Ohio, commonly known as 405 Madison Ave. with equity and debt financing. The Company's Chief Executive Officer and Chairman, Tie (James) Li, is the sole member of Zak Properties prior to the sale. As such we recorded the acquisition of the property at cost. Nature's Miracle issued 5,000 Series B and 9,500 Series C Preferred Shares to Big Lake and also signed a new note of $3 million.

We acquired Zak Properties in order to strengthen our balance sheet, generate rental income to provide us a steadier stream of cashflow, and to have the ability to obtain real estate loans to augment our capital needs. 

**RESULTS OF OPERATIONS**

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***For the Years ended December 31, 2025 and 2024***

The following table presents certain combined statement of operations information and presentation of that data as a percentage of change from year to year.

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended<br> December 31, 2025** | **Year Ended<br> December 31, 2024** | **Variance** |
| Revenue | $1742360 | 9261583 | (81.2)% |
| Cost of revenue | $2193398 | 12066778 | (81.8)% |
| Gross loss | $(451038) | (2805195) | (83.9)% |
| Selling, general and administrative expenses | $4883132 | 7134120 | (31.6)% |
| Provision for credit losses | $1818151 | 408569 | 345.0% |
| Loss from operations | $(7152321) | (10347884) | (30.9)% |
| Total other expenses, net | $(4832733) | (3300356) | 46.4% |
| Loss before income taxes | $(11985054) | (13648240) | (12.2)% |
| Income tax expense | $1700 | 5100 | (66.7)% |
| Net loss | $(11986754) | (13653340) | (12.2)% |
| Gross loss % of revenues | (25.9)% | (30.3)% |  |
| Net loss % of revenues | (688.0)% | (147.4)% |  |

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***Revenue***

Revenue for the year ended December 31, 2025 decreased by 81.2% to $1,742,360 as compared to $9,261,583, for the year ended December 31, 2024. Revenue declined due to cash constraints that restricted inventory purchases; as we were mainly selling our inventory on hand. The Company is seeking additional financing in fourth quarter to replenish inventory, and management expects the revenue situation to improve once inventory levels are restored.

For the years ended December 31, 2025 and 2024, we had 70 and 128 customers, respectively. Average revenue per customer for the years ended December 31, 2025 and 2024 were $24,891 and $78,000, respectively. Our revenue from top 5 customers for the year ended December 31, 2025 was $981,036 compared to $4,735,824 for the year ended December 31, 2024, representing a decrease of 79.3%. The lower average sale and decreased revenue from top 5 customer are reflective the impact of limited inventory availability.

***Costs of Revenue***

Costs of revenue for the year ended December 31, 2025 decreased 81.8% to $2,193,398 as compared to $12,066,778 for the year ended December 31, 2024. Cost of revenue decreased primarily due to the decrease in revenue, which was in turn primarily driven by lower sales volume of our products due to limited inventory availability. We also have written off $544,469 of inventory for the year ended December 31, 2025 as the existing inventory was obsolete.

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***Gross Loss***

Gross loss was $451,038 for the year ended December 31, 2025 and $2,805,195 for the year ended December 31, 2024, respectively. The gross loss for the year ended December 31, 2025 decreased to (25.9)% from (30.3)% for the year ended December 31, 2024. The decrease in gross loss was primarily due to less inventory write off in 2025 of approximately $0.5 million compared to approximately $2.3 million in 2024.

***Operating expenses***

Operating expenses for the year ended December 31, 2025 decreased 11.2% to $6,701,283 as compared to $7,542,689 for the year ended December 31, 2024. The decrease was mainly due to following reasons:

 

*Selling, General and Administrative Expenses*

Selling, general and administrative expenses for the year ended December 31, 2025 decreased 31.6% to $4,883,132 as compared to $7,134,120 for the year ended December 31, 2024. The decrease was mainly due to decreased Company's stock compensation expenses of $1,074,396 as a result of completion of vesting periods of certain employees; decrease in professional fees of $399,315, mainly related to lower spending on public relations and SEC filing activities; and a decrease in payroll expenses of $731,511 resulting from a reduced headcount.

 

*Provision for credit losses*

Provision for credit losses for the year ended December 31, 2025 increased 345.0% to $1,818,151 as compared to $408,569 for the year ended December 31, 2024. The increase was primarily due to higher estimated credit risk associated with outstanding receivables during the period and the full write-off of the balance due from Iluminar, a related party, as collection was determined to be doubtful.

***Other Expenses***

Other expenses primarily consist of net interest expense, other finance expense related to our loans and net rental income. Other expenses for the year ended December 31, 2025 was $4,832,733 as compared to other expense of $3,300,356 for the year ended December 31, 2024. The increase was mainly due to the increase in loss on impairment of investment of 1,000,000 due to full write-off of cost method investment of Iluminar, a related party, as recoverability of the investment appears doubtful; the increase of rental expense of $711,665 due to maintenance and repairs; the increase in debt issuance cost of $690,412 due to costs incurred in connection with the issuance of new debt during the period, offset by the decrease in non-cash finance expense of $800,000; the decrease in gain on loan extinguishment of $75,600.

Interest expense for the year ended of December 31, 2025 and 2024 were $3,375,272 and $2,301,600, respectively; increased as a result of multiple convertible notes and high interest loans in 2025. The convertible notes and convertible notes – related party borrowing increased was approximately $1,777,289 and $987,639, respectively. As of December 31, 2025 and 2024, the short-term loan balances were approximately $4,192,646 and $2,668,604, respectively. For the year ended December 31, 2024, 66.0% of the loans were from third-party lenders with interest rates ranging from 8.0% to 12.0%, while the remaining loans were receivables factoring loans with significantly higher interest rates ranging from 66.4% to 100.0%. In contrast, for the year ended December 31, 2025, 36.0% of the loans were from third-party lenders at 8.0% to 22.6%, with the remainder consisting of receivables factoring loans bearing interest rates between 84.0% and 97.0%. The increase in higher-rate factoring loans in the current year and the increase in overall loan balances contributed to the rise in interest expense.

Non-cash finance expense for the year ended December 31, 2025 and 2024 were $200,000 and $1,000,000, respectively. This decrease is primarily due to the expensing of 3,334 shares of common stock issued under a Letter Agreement dated November 15, 2023, in connection with the merger. These shares, valued at approximately $1.0 million, were issued to Tie (James) Li and Zhiyi Zhang for their guarantees related to the repayment of the Newtek Loan, which had a principal amount of $3,700,000. The value of the shares was expensed as non-cash finance expenses upon the completion of the merger in 2024.

Loss on impairment of investment for the year ended of December 31, 2025 was $1000,000, due to full write-off of cost method investment in Iluminar and for the year ended December 31, 2024 was nil.

Other expense for the year ended of December 31, 2025 was $353,484, primarily consisting of rental expense of approximately $250,000 from Zak Properties in 2025 compared with, other income for the year ended of December 31, 2024 was $9,661, respectively.

***Income Tax Expense***

Our income tax expense was amounted to $1,700 and $5,100 for the years ended December 31, 2025 and 2024, respectively.

The effective tax rate for the years ended December 31, 2025 and 2024 were 0.0% and 0.0%. The effective tax rate differs from the federal and state statutory tax rate of 21.0% primarily due to the valuation allowance on the deferred tax assets from our operating losses.

***Net Loss***

Net loss for the year ended December 31, 2025 was $11,986,754 as compared to net loss of $13,653,340 for the year ended December 31, 2024, representing a decrease of $1,666,586. The decrease was primarily due to an decrease of gross loss and a decrease in selling, general and administrative expenses.

**LIQUIDITY AND CAPITAL RESOURCES**

***Sources of Liquidity***

In assessing liquidity, we monitor and analyze cash on-hand and operating expenditure commitments. Our liquidity needs are to meet working capital requirements and operating expense obligations. To date, we financed our operations primarily through debt financing from financial institution and related parties. As of December 31, 2025, we had $97,694 in cash which primarily consists of bank deposits, which are unrestricted as to withdrawal and use. Our working capital deficit was $22,299,535 as of December 31, 2025.

Subsequent to December 31, 2025, We obtained approximately $0.3 million in proceeds from convertible notes and promissory notes for liquidity. See Note 20 for further details.

We have experienced recurring losses from operations and negative cash flows from operating activities since 2022. For the years ended December 31, 2025 and 2024, we incurred substantial losses as shown in the financial statement section. Our actual revenue for the years ended December 31, 2025 and 2024 was approximately $1.7 million and $9.3 million, respectively. Such volume and relatively low gross profit margins are not enough to support high administrative costs relating to our going public and expenses as a public company. We have raised equity capital twice in 2024 but utilized most proceeds towards repayment of debt incurred in the going-public merger, higher corporate costs and paying interest and principal on short-term loans. Due to the negative cash flow, our financial position is under pressure, and may potentially continue to have, an ongoing need to raise additional cash from outside sources to fund our expansion plan and related operations. Successful transition to attaining profitable operations is dependent upon achieving a level of revenues adequate to support our cost structure. In connection with our assessment of going concern considerations in accordance with Financial Accounting Standard Board's Accounting Standards Update ("ASU") 2014-15, "Disclosures of Uncertainties about an Entity's Ability to Continue as a Going Concern," management has determined that these conditions raise substantial doubt about our ability to continue as a going concern within one year after the date that these consolidated financial statements are issued. If we are unable to realize our assets within the normal operating cycle of a twelve (12) month period, we may have to consider supplementing our available sources of funds through the following sources:

● financial support from our related parties and shareholders;

● other available sources of financing from banks and other financial institutions;

● equity financing through capital market

We have a $20 million equity financing program ("ELOC") with GHS Investment and this was declared effective by SEC. The Company can draw on this facility for its working capital needs and others.

We have access to investors who are providing convertible note financing for public companies and we have been utilizing the convertible note for part of our financing needs.

Our shareholder also offers support for the Company. Big Lake Capital, LLC, a related party controlled by Tie Li (our Chairman and CEO) entered into a $2 million Convertible Promissory Note on April 11, 2025 with the initial tranche of $600,000. We have borrowed $813,600 and converted $652,800 for the year ended December 31, 2025 under this note, with $1,186,400 of credit still available.

We can make no assurances that required financings will be available for the amounts needed, or on terms commercially acceptable to us, if at all. If one or all of these events does not occur or subsequent capital raises are insufficient to bridge financial and liquidity shortfall, there would likely be a material adverse effect on us and would materially adversely affect our ability to continue as a going concern.

The consolidated financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include any adjustments that might result from the outcome of this uncertainty.

Cash Flows

The following tables set forth our selected consolidated cash flow data for the periods indicated:

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| | | |
|:---|:---|:---|
|  | **For the Years Ended<br> December 31,** | **For the Years Ended<br> December 31,** |
|  | **2025** | **2024** |
|  | **US$** | **US$** |
| Net cash used in operating activities | (3985013) | (5934771) |
| Net cash used in investing activities | (863359) | (40000) |
| Net cash provided by financing activities | 4525659 | 6173048 |
| Effect of exchange rate changes | 276 | 94 |
| Net change in cash | (322437) | 198371 |
| Cash and cash equivalents, at the beginning of year | 420131 | 221760 |
| Cash and cash equivalents, at the end of year | 97694 | 420131 |

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*Operating Activities*

Net cash used in operating activities was approximately $4.0 million for the year ended December 31, 2025, which was mainly due to our net loss of approximately $12.0 million with non-cash items, including depreciation expense, provision for credit losses, amortization of debt issuance cost, stock compensation expense, non cash finance expense, loss on impairment of investment and amortization of operating right-of-use asset of approximately $5.3 million. Our cash outflow is mainly due to decrease in accounts payable of approximately $0.8 million due to decrease in our purchase from vendor. Our cash outflow is offset by cash inflow of approximately $1.2 million of inventory due to sold more on hand inventory, increase from other payable and accrued liabilities of approximately $1.1 million mainly consists of accrued professional fees and accrued interest on short term loans, long term loans and convertible notes. Additionally, approximately $0.8 million decreased in accounts receivable as our sales decreased.

Net cash used in operating activities was approximately $6.0 million for the year ended December 31, 2024, which was mainly due to our net loss of approximately $13.7 million with non cash expenses of $1.0 million, stock compensation expenses of $1.4 million, inventory impairment loss of approximately $2.3 million, and other non cash item, including depreciation expense, provision for credit losses, amortization of operating right-of-use asset, amortization of debt issuance cost, and loss on loan extinguishment of approximately $1.1 million. Our cash outflow is also increased from increase in accounts receivable of approximately $1.7 million due to increased revenue. Our cash outflow is offset by cash inflow of approximately $2.6 million due to increase from accounts payable as we increased our purchase from vendors and approximately $1.0 million decreased in inventory as we used more on hand inventory.

*Investing Activities*

For the year ended December 31, 2025, net cash used in investing activities amount to approximately $0.9 million which was primarily for deposit from investment of Future Tech of approximately $0.7 million and deposit from licensing fee of Datavault AI of $0.2 million.

For the year ended December 31, 2024, net cash used in investing activities amount to $40,000 which was primarily for loan to Lakeshore of $40,000 prior to the Merger.

*Financing Activities*

Net cash provided by financing activities was approximately $4.5 million for the year ended December 31, 2025. The increase in net cash provided was primarily a result of proceeds from capital contribution in advance of approximately $1.4 million, net proceeds from exercise of warrants of approximately $0.9 million, net proceeds from short-term loan from third parties of approximately $2.0 million, net proceeds from convertible notes borrowing of approximately $2.3 million offset by repayments on short-term loan from third parties of approximately $1.2 million, repayments on convertible notes of approximately $0.8 million, repayments on short-term loan from related parties of approximately $0.2 million.

Net cash provided by financing activities was approximately $6.2 million for the year ended December 31, 2024. The increase in net cash provided was primarily a result of net proceeds from short-term loan from third parties of approximately $5.0 million, shares and warrants issued through public offerings of approximately $3.3 million, and convertible notes borrowing of approximately $1.2 million, offset by payments of deferred offering costs of approximately $0.3 million, repayments on long term loans of approximately $0.3 million, repayments on short-term loan from third parties of approximately $2.9 million and repayments on convertible notes of approximately $0.3 million.

*Non-cash transactions*

Non-cash transactions primarily consisted of asset acquisition via preferred stock issuance of approximately $9.4 million and asset acquisition via convertible note issuance of $3.0 million pursuant to the asset acquisition of Zak Properties, LLC, with preferred stock and a convertible note issued as consideration for the membership interests.

**OFF-BALANCE SHEET ARRANGEMENTS**

We do not have any off-balance sheet arrangements (as that term is defined in Item 303 of Regulation S-K) that are reasonably likely to have a current or future material effect on our financial condition, revenue or expenses, results of operations, liquidity, capital expenditures or capital resources.

**CRITICAL ACCOUNTING POLICIES AND ESTIMATES**

We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States, or GAAP and pursuant to the rules and regulations of the Securities Exchange Commission ("SEC"). The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In some cases, changes in the accounting estimates are reasonably likely to occur from period to period. Accordingly, actual results could differ materially from our estimates. To the extent that there are material differences between these estimates and actual results, our financial condition and results of operations will be affected. We base our estimates on experience and other assumptions that we believe are reasonable under the circumstances, and we evaluate these estimates on an ongoing basis. We refer to accounting estimates of this type as critical accounting policies, which we discuss further below. While our significant accounting policies are more fully described in Note 3 to our consolidated financial statements, we believe that the following accounting policies are critical to the process of making significant judgments and estimates in the preparation of our consolidated financial statements.

<u>Revenue recognition</u>

We follow Accounting Standards Codification ("ASC") 606 Revenue Recognition and recognizes revenue from product sales revenues, net of promotional discounts and return allowances, when the following revenue recognition criteria are met: a contract has been identified, separate performance obligations are identified, the transaction price is determined, the transaction price is allocated to separate performance obligations and revenue is recognized upon satisfying each performance obligation.

We are a growing agriculture technology company providing CEA hardware products to growers in the controlled environment agriculture industry setting in North America. Majority of our products were grow lights and related products for the indoor growing settings. Starting from first quarter of 2024, we also provide indoor grow containers to our customers.

Our contracts with customers where the amounts charged per product is fixed and determinable, the specific terms of the contracts were agreed on by us including payment terms which are typically 30 to 60 days for existing customers and prepaid for most new customers. In certain contracts involving sales to customers that entered into rebate programs who can get rebates with utility companies with utility companies for using LED lighting, payment term ranges from 60 to 120 days.

Our performance obligation is to deliver the products to customers. For indoor grow container products, we also involved in customization of the products to suit customer's specific needs. The provision of customization and configuration to meet certain technical specification per US market and delivery of product is considered one performance obligation as the services provided are not distinct within the context of the contract whereas the customers can only obtain benefit when the services and products are provided together. At times, we may charge customers shipping and handling for delivery of products, control of goods does not transfer to the customer before shipment, therefore shipping is not a promised service to us and is not considered a separate performance obligation. Any fee charged for shipping would be included in the transaction price for the good.

Transaction prices are mostly fixed. In some contracts, when determining the transaction price, we adjust consideration for the effects of the time value of money if the timing of payments provides us with a significant benefit of financing. We does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customers and the transfer of the promised goods or services to the licensees will be one year or less. For customers that entered into rebate programs with utility companies, transaction price may depend on level of energy saving the products achieved. We estimated the amount of consideration using either the expected value of the most likely amount depending on which method we expects to better predict the amount of consideration to which it will receive with a constraint applied such that a significant reversal of revenue is not probable.

We transfer the risk of loss or damage upon shipment, therefore, revenue from product sales is recognized at a point in time when control of product transfer to customer and we have no further obligation to provide services related to such product evidenced by customer signing acceptances upon receipt of goods. Return allowances, which reduce product revenue by our best estimate of expected product returns, are estimated using historical experience.

We evaluate the criteria of ASC 606 — Revenue Recognition Principal-Agent Considerations in determining whether it is appropriate to record the gross amount of product sales and related costs, or the net amount earned as commissions. We ship the products according to shipping terms on the purchase order or sales order. Once delivery is complete, we then send an invoice to the customer according to the quantity and price of shipment.

We evaluate the indicators of control in accordance with ASU 2016-08: 1) We are the most visible entity to customers and assumes fulfilment risk and risks related to the acceptability of products, including addressing customer inquiries directly and handling of product returns or refunds directly if any. For grow light products, we have our own brand for marketing. For indoor grow containers products, we are also involved in the design and technical specification of the products to meet requirement in the US market. 2) We assume inventory risk either through storing the products in our own warehouses; or for drop shipments directly from vendors, we take the title from vendors through inspection and acceptance and are responsible for product damage during shipment period prior to acceptance of our customers and are also responsible for product return if the customer is not satisfied with the products. 3) We determine the resale price of the products. 4) We are the party that direct the use of the inventory and can prevent the vendor from transferring the product to a customer or to redirect the products to a different customer, after evaluating the above scenario, we consider ourselves the principal of these arrangements and records revenue on a gross basis.

Payments received prior to the delivery of goods to customers or picked up by the customers are recorded as contract liabilities.

We periodically provide incentive offers to our customers to encourage purchases. Such offers include current discount offers, such as percentage discounts off current purchases and other similar offers.

Current discount offers, when accepted by our customers, are treated as a reduction to the transaction price of the related transaction.

Sales discounts are recorded in the period in which the related sale is recognized. Sales return allowances are recorded upon recognizing the related sales.

<u>Accounts receivable, net</u>

Starting from January 1, 2023, the Company adopted ASU No.2016-13 "Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASC Topic 326"). The Company used a modified retrospective approach, and the adoption does not have an impact on our consolidated financial statements. During the ordinary course of business, the Company extends unsecured credit to its customers. Accounts receivable are stated at the amount the Company expects to collect from customers. An allowance for expected credit loss is recorded in the period in which loss is determined to be probable based on lifetime expected losses considering historical, current, and forecasted conditions. Amounts deem uncollectible are written off against the allowance after all collection efforts have ceased.

<u>Inventory</u>

Inventory consists of finished goods ready for sale and is stated at the lower of cost and net realizable value. We value our inventory using the weighted average costing method. We include a part of cost of goods sold any freight incurred to ship the product from our vendors to warehouses. Outbound freight costs related to shipping costs to customers are considered period costs and reflected in cost of revenue. We regularly review inventory and consider forecasts of future demand, market conditions and product obsolescence.

If the estimated realizable value of the inventory is less than cost, we make provisions in order to reduce our carrying value to our estimated market value. We also review inventory for slow moving and obsolescence and records allowance for obsolescence.

Long-lived assets impairment

The Company reviews the impairment of its long-lived assets on an annual basis and whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be fully recoverable. These events or changes in circumstances may include but are not limited to, a significant deterioration of operating results, a change in the regulatory environment, changes in business plans, or adverse changes in anticipated future cash flows. If an impairment indicator is present, the Company evaluates the recoverability by a comparison of the carrying amount of the assets to future undiscounted net cash flows expected to result from the use and eventual disposition of the assets. If the assets are determined to be impaired, the impairment recognized is the excess of the carrying amount over the fair value of the assets. Fair value is generally determined by the discounted cash flow method. The discount rate used in any estimate of discounted cash flows is the rate commensurate with a similar investment of similar risk. As of December 31, 2025 and 2024, we determined there was no impairment as we estimated disposal value of our assets (mainly two buildings) exceed carrying value.

<u>Recently issued accounting pronouncements</u>

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 ("ASU 2024-03"), which requires the disaggregation of certain expenses in the notes of the financials, to provide enhanced transparency into the expense captions presented on the face of the income statement. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027 and may be applied either prospectively or retrospectively. The Company is currently evaluating the impact that ASU 2024-03 will have on its related disclosures.

<u>Recently adopted accounting pronouncements</u>

In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments' significant expenses and certain other segment items on an interim and annual basis if they are regularly provided to the chief operating decision maker ("CODM"). This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company adopted ASU 2023-07 on January 1, 2024

In December 2023, the FASB issued Accounting Standards Update No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. The Company adopted ASU 2023-09 on January 1, 2025

In November 2024, the FASB issued ASU 2024-04, Debt–Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversion of Convertible Debt Instruments ("ASU 2024–04"), which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. ASU 2024-04 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted for all entities that have adopted the amendments in Update 2020-06, which includes the Company. Adoption can be on a prospective or retrospective basis. The Company adopted ASU 2024-04 effective January 1, 2025 on a prospective basis.

Except as mentioned above, we do not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on our unaudited condensed consolidated balance sheets, statements of income and comprehensive income and statements of cash flows.

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**Item 7A. Quantitative and Qualitative Disclosures about Market Risk.**

**Foreign Exchange Risk**

The Company does not currently have exposure to the foreign exchange risk arising from foreign currency exposures, primarily in relation to the US dollar.

**Interest Rate Risk**

Interest rate risk is the risk that changes in market interest rates affect our revenues or the fair value of our financial instruments. Our exposure to the risk of changes in market interest rates arises primarily from short-term investments and long-term borrowings. Each of the Company borrowings are subject to fixed interest rates (see Indebtedness above). The Company has no variable rate instruments, and all instruments are subject to fixed interest rates.

**Credit Risk**

Credit risk is the risk of financial loss to us if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from our receivables from customers. The carrying amounts of financial assets and contract assets represent the maximum credit exposure. We believe we are not exposed to significant credit risk concentration, whether through exposure to individual customers, specific industry sectors and/or regions.

**Liquidity Risk**

We manage liquidity risk by monitoring cash balances on hand, working capital, and operating cash flows. When operating cash flows are not sufficient to fund the company's operations, the Company will need to raise additional financing. The Company intends to raise such capital through additional equity and debt raises. See "*Liquidity and Capital Resources*."

**Item 8. Financial Statements and Supplementary Data.**

The information required by this item is included in Item 15(A) of this Annual Report on Form 10-K.

**Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.**

None

**Item 9A. Controls and Procedures.**

The Company maintains a system of 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")), which is designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act, including this Report, is recorded, processed, summarized and reported on a timely basis. These disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed by the Company under the Exchange Act is accumulated and communicated to the Company's management on a timely basis to allow decisions regarding required disclosure.

The Company's management, including the Company's principal executive officer ("CEO") and principal financial officer ("CFO") conducted an evaluation of the effectiveness of the Company's disclosure controls and procedures as of the end of the period covered by this Report and, based on that evaluation, the CEO and CFO concluded that the Company's disclosure controls and procedures were not effective as of December 31, 2025 due to material weakness described below.

**Item 9A. Internal Control Over Financial Reporting**

Our management, including our principal executive officer and principal financial officer, is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. GAAP. Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2025, based on the Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) (2013 Framework). Based on this evaluation under the 2013 Framework, our principal executive officer and principal financial officer have concluded that our internal control over financial reporting was not effective December 31, 2025 due to the following material weaknesses:

&nbsp;&nbsp;&nbsp;&nbsp;(i) a lack of effective risk assessment process;

(ii) a lack of effective overall control environment; the Company's Quickbooks software is adequate to record transactions but not effective to produce advanced reports and monitoring trends for management to control the business environment; with a large number of inventory purchases, shipments and sales, recordation of purchasing or credit granting approvals, signatures at pick up, signatures at delivery and inventory costing is not ideal compared to ERP systems more common to middle market companies.

&nbsp;&nbsp;&nbsp;&nbsp;(iii) a lack of controls over monitoring; have not implemented a proposed Acumatica ERP system

(iv) a lack of human resources within finance and accounting functions leading to lack of segregation of duties; human resources policies such as signing of employee agreements and verification of pay are not consistently implemented; the company does not conduct regular employee reviews nor brief them regularly about going public issues

(v) a lack of information technology control design and operating effectiveness; there is no technology or system manager in-house. The Company relies on outside consultants in the areas of email, cloud storage, laptop or desktop trouble shooting and software issues.

(vi) a lack of controls or ineffectively designed controls impacting financial reporting; the Company lacks procedures to ensure accuracy of financial statement balances such as no reconciliation of balances with vendors and customers before closing the books.

(vii) an inadequate control over proper revenue recognition and purchase cutoff;

(viii) a lack of controls over income tax.

(ix) A lack of adequate procedures in area of mergers and acquisitions.
In the recent acquisition of Zak properties, the Company acquired the interest in Zak Properties LLC from Big Lake Capital LLC. There
was little or no due diligence on the existence of loans outstanding against the property. There was no budget for legal assistance in
the transaction. The Company and the board relied on the representation of the owners of Zak Properties LLC that it had complete and legal
ownership of the target LLC. In the case of a direct asset purchase where NMHI acquires the asset from Zak, it is more likely that liens
would have been exposed in the transaction vis a vis a purchase of LLC interest. In the financial statements ended September 30, 2025
the opening balance sheet was provided by the target company but did not contain a $1.650 million loan from JJ Astor. This loan was originally
funded in April 2025, borrower was Zak Properties. We were later informed that this loan was refinanced via a $5 million loan that funded
in late January 2026.

(x) On bank statements, the accounting manager and
CFO does not have the ability to log in and look at banking information without a security token or password provided real time to the
CEO or Division President in the case of Nature's Miracle Holding Inc., Nature's Miracle Holding, Visiontech Group Inc., Hydroman
Inc and the newly acquired Zak Properties LLC which can be accessed by both the local manager in Ohio and by Tie Li, our CEO. As such
there can be delays in booking entries into Quickbooks as well as catching anomalies or peculiar transactions.

(xi) At the end of each quarter except for fiscal year end December 31,
the Company compiles and consolidates its financials with the assistance of outside CPA consultants. This mitigates to some extent the
incorrect booking of accounting entries and provides excellent input into complex transactions that internal staff cannot address. They
are limited to visible transactions on the bank statement and to clearly documented transactions. On the filing of our quarterly 10-Q,
our auditors only issue a Reviewed Statement on the financial statements, does not vet numbers contained or missing in such statements
with extensive procedures similar to an audit or where an unqualified opinion is required.

Following the identification of the material weaknesses and control deficiencies, we plan to continue to take remedial measures including (i) hiring more qualified accounting personnel with relevant U.S. GAAP and SEC reporting experience and qualifications to strengthen the financial reporting function and to set up a financial and system control framework; (ii) implementing regular and continuous U.S. GAAP accounting and financial reporting training programs for our accounting and financial reporting personnel; (iii) engaging an external consulting firm to assist us with assessment of Sarbanes-Oxley compliance requirements and improvement of overall internal control; and (iv) appointing independent directors, establishing an audit committee, and strengthening corporate governance.

There were no changes in the Company's internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended December 31, 2025 that have materially affected or that are reasonably likely to materially affect the Company's internal control over financial reporting.

**Item 9B. Other Information.**

None.

**Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.** 

Not applicable.

**NATURE'S MIRACLE HOLDING INC.**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| [**Report of Independent Registered Public Accounting Firm**](#f_001) | F-2 |
| [Consolidated Balance Sheets as of December 31, 2025 and 2024](#f_002) | F-3 |
| [Consolidated Statements of Operations and Other Comprehensive Loss for the Years ended December 31, 2025 and 2024](#f_003) | F-4 |
| [Consolidated Statements of Changes in Stockholders' Deficit for the Years ended December 31, 2025 and 2024](#f_004) | F-5 |
| [Consolidated Statements of Cash Flows for the Years ended December 31, 2025 and 2024](#f_005) | F-6 |
| [Notes to Consolidated Financial Statements](#f_006) | F-7 |

---

![](ea028425201_img16.jpg)

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To:

The Board of Directors and Stockholders of

Nature's Miracle Holding Inc. (formerly LBBB Merger Corp.), its subsidiaries, and variable interest entities.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Nature's Miracle Holding Inc.(formerly LBBB Merger Corp.), its subsidiaries, and variable interest entities (collectively, the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of operations and comprehensive loss, changes in stockholders' deficit, and cash flows for each of the years in the two-year period ended December 31, 2025, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Substantial Doubt about the Company's Ability to Continue as a Going Concern** 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has experienced recurring losses from operations, negative cash flows from operating activities and has a working capital deficit as of December 31, 2025, which raise substantial doubt about its ability to continue as a going concern. Management's plans to address these matters are described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion** 

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.

![](ea028425201_img15.jpg)

WWC, P.C.

Certified Public Accountants

PCAOB ID: 1171

We have served as the Company's auditor since May 16, 2023.

San Mateo, CA

April 15, 2026

![](ea028425201_img17.jpg)

**NATURE'S MIRACLE HOLDING INC., SUBSIDIARIES AND VIE**

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **As of<br> December 31,**<br>**2025** | **As of<br> December 31,**<br>**2024** |
| ASSETS |  |  |
| CURRENT ASSETS |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $97694 | $420131 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 153043 | 1829044 |
| &nbsp;&nbsp;&nbsp;Accounts receivable - related party, net | - | 976449 |
| &nbsp;&nbsp;&nbsp;Inventories, net | - | 1778583 |
| &nbsp;&nbsp;&nbsp;Prepayments and other current assets | 100027 | 151431 |
| &nbsp;&nbsp;&nbsp;Prepayments - related parties | - | 10000 |
| &nbsp;&nbsp;&nbsp;Loan receivable – related party | 605000 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Assets | 955764 | 5165638 |
| NON-CURRENT ASSETS |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | 951000 | 428633 |
| &nbsp;&nbsp;&nbsp;Right-of-use assets, net | 133889 | 470716 |
| &nbsp;&nbsp;&nbsp;Cost method investment | - | 1000000 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 18370033 | 4246832 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | $20410686 | $11311819 |
| LIABILITIES AND STOCKHOLDERS' DEFICIT |  |  |
| CURRENT LIABILITIES |  |  |
| &nbsp;&nbsp;&nbsp;Short-term loans | $4192646 | $2668604 |
| &nbsp;&nbsp;&nbsp;Short-term loans - related parties | 194000 | 280755 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debts | 466331 | 301076 |
| &nbsp;&nbsp;&nbsp;Convertible notes | 1712875 | 987639 |
| &nbsp;&nbsp;&nbsp;Convertible notes - related party | 64414 | - |
| &nbsp;&nbsp;&nbsp;Accounts payable | 9684893 | 10389978 |
| &nbsp;&nbsp;&nbsp;Accounts payable - related parties | 366437 | 308407 |
| &nbsp;&nbsp;&nbsp;Other payables and accrued liabilities | 5178395 | 3467637 |
| &nbsp;&nbsp;&nbsp;Other payables - related parties | 514891 | 367709 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities - current | 101327 | 262380 |
| &nbsp;&nbsp;&nbsp;Commitment shares to be issued | 171160 | - |
| &nbsp;&nbsp;&nbsp;Tax accrual | 471731 | 501374 |
| &nbsp;&nbsp;&nbsp;Deferred income - Contract liabilities | 49731 | 144790 |
| &nbsp;&nbsp;&nbsp;Deferred income - Contract liabilities - related party | 86468 | 86468 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Liabilities | 23255299 | 19766817 |
| NON-CURRENT LIABILITIES |  |  |
| &nbsp;&nbsp;&nbsp;Long-term debts, net of current portion | 5402186 | 5678550 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities, net of current portion | 35684 | 205602 |
| &nbsp;&nbsp;&nbsp;Long-term convertible notes - related party | 3000000 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Non-Current Liabilities | 8437870 | 5884152 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | 31693169 | 25650969 |
| COMMITMENTS AND CONTINGENCIES |  |  |
| &nbsp;&nbsp;&nbsp;Redeemable convertible preferred stock ($0.0001 par value, 754 and nil issued and outstanding at December 31, 2025 and 2024, respectively), at redemption value | 1458233 | - |
| SHAREHOLDERS' DEFICIT |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock ($0.0001 par value, 1,000,000 shares authorized, 5,000 and nil shares issued and outstanding; at December 31, 2025 and 2024, respectively) | - | - |
| &nbsp;&nbsp;&nbsp;Common stock ($0.0001 par value,1,000,000,000 shares authorized,112,852,596 and 2,445,364 shares issued and outstanding at December 31, 2025 and 2024, respectively)\* | 11287 | 246 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 24049579 | 10396274 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (36800876) | (24734689) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (706) | (981) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Stockholders' Deficit | (12740716) | (14339150) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities and Stockholders' Deficit | $20410686 | $11311819 |

---

\* On December 4, 2025, the Company increased its authorized common stock from 100,000,000 shares to 1,000,000,000 shares.

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

**NATURE'S MIRACLE HOLDING INC., SUBSIDIARIES AND VIE**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

---

| | | |
|:---|:---|:---|
|  | **For the <br> Year Ended**<br>**December 31,**<br>**2025** | **For the <br> Year Ended**<br>**December 31,**<br>**2024** |
| REVENUE (including related party revenue of $76,038 and $1,593,926 for the years ended December 31, 2025 and 2024) | $1742360 | $9261583 |
| COST OF REVENUE | 2193398 | 12066778 |
| GROSS LOSS | (451038) | (2805195) |
| OPERATING EXPENSES: |  |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 4883132 | 7134120 |
| &nbsp;&nbsp;&nbsp;Provision for credit losses | 1818151 | 408569 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 6701283 | 7542689 |
| LOSS FROM OPERATIONS | (7152321) | (10347884) |
| OTHER INCOME (EXPENSE) |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (3375272) | (2301600) |
| &nbsp;&nbsp;&nbsp;Non cash finance expense | (200000) | (1000000) |
| &nbsp;&nbsp;&nbsp;Gain (loss) on loan extinguishment | 67183 | (8417) |
| &nbsp;&nbsp;&nbsp;Change in fair value of commitment shares to be issued | 28840 | - |
| &nbsp;&nbsp;&nbsp;Loss on impairment of investment | (1000000) | - |
| &nbsp;&nbsp;&nbsp;Other (expense) income | (353484) | 9661 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (4832733) | (3300356) |
| LOSS BEFORE INCOME TAXES | (11985054) | (13648240) |
| PROVISION FOR INCOME TAXES | 1700 | 5100 |
| NET LOSS | $(11986754) | $(13653340) |
| OTHER COMPREHENSIVE LOSS |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustment | 275 | 94 |
| COMPREHENSIVE LOSS | $(11986479) | $(13653246) |
| WEIGHTED AVERAGE NUMBER OF COMMON STOCK |  |  |
| &nbsp;&nbsp;&nbsp;Basic and diluted | 14926994 | 1149320 |
| LOSS PER SHARE |  |  |
| &nbsp;&nbsp;&nbsp;Basic and diluted | $(0.81) | $(11.88) |

---

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

**NATURE'S MIRACLE HOLDING INC., SUBSIDIARIES AND VIE**

**CONSOLIDATED STATEMENTS OF CHANGE IN STOCKHOLDERS' DEFICIT**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred stock** | **Preferred stock** | **Common stock** | **Common stock** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional <br> paid in**<br>**capital** | **Accumulated**<br>**Deficit** | **Accumulated <br> other<br> comprehensive**<br>**loss** | <br>**Total** |
| BALANCE, December 31, 2023 | - | $- | 742416 | $74 | $1528926 | $(8247862) | $(1075) | $(6719937) |
| &nbsp;&nbsp;&nbsp;Issuance of shares upon the reverse recapitalization |  | - | 134476 | 13 | - | (2833487) | - | (2833474) |
| &nbsp;&nbsp;&nbsp;Additional shares issued in connection with reverse recapitalization |  | - | 5114 | 1 | (1) | - | - | - |
| &nbsp;&nbsp;&nbsp;Stock compensation expense |  | - | 101091 | 10 | 1413448 | - | - | 1413458 |
| &nbsp;&nbsp;&nbsp;Shares to be issued for stock compensation |  | - | (82757) | (8) | 8 | - | - | - |
| &nbsp;&nbsp;&nbsp;Shares and warrants issued through private placement |  | - | 6000 | 1 | 58089 | - | - | 58090 |
| &nbsp;&nbsp;&nbsp;Shares and warrants issued through July public offering |  | - | 166667 | 17 | 1003983 | - | - | 1004000 |
| &nbsp;&nbsp;&nbsp;Forgiveness of related party's debt |  | - |  | - | 2135573 | - | - | 2135573 |
| &nbsp;&nbsp;&nbsp;Shares and warrants issued through November public offering |  | - | 837788 | 84 | 2304869 | - | - | 2304953 |
| &nbsp;&nbsp;&nbsp;Shares issued through warrants exercises |  | - | 477659 | 48 | 261495 | - | - | 261543 |
| &nbsp;&nbsp;&nbsp;Shares issued through November Pre-funded warrants exercises |  | - | 56667 | 6 | 189884 | - | - | 189890 |
| &nbsp;&nbsp;&nbsp;Shares issued through debt-to-equity conversion |  | - | 568182 | 57 | 1499943 | - | - | 1500000 |
| &nbsp;&nbsp;&nbsp;Shares to be issued for debt-to-equity conversion |  | - | (568182) | (57) | 57 | - | - | - |
| &nbsp;&nbsp;&nbsp;Additional round up shares issued due to 1-for-30 reverse stock split |  | - | 243 | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustments |  | - |  | - | - | - | 94 | 94 |
| &nbsp;&nbsp;&nbsp;Net loss | - | - | - | - | - | (13653340) | - | (13653340) |
| BALANCE, December 31, 2024 | - | $- | 2445364 | $246 | $10396274 | $(24734689) | $(981) | $(14339150) |
| &nbsp;&nbsp;&nbsp;Preferred stock issued for asset acquisition | 14500 | 1 |  | - | 9415633 | - | - | 9415634 |
| &nbsp;&nbsp;&nbsp;Stock compensation expense |  | - | 1525590 | 153 | 341309 | - | - | 341462 |
| &nbsp;&nbsp;&nbsp;Shares to be issued for stock compensation |  | - | (1000834) | (100) | 100 | - | - | - |
| &nbsp;&nbsp;&nbsp;Shares issued through warrants exercises |  | - | 1839023 | 184 | 865239 | - | - | 865423 |
| &nbsp;&nbsp;&nbsp;Shares issued through debt-to-equity conversion |  | - | 13841623 | 1384 | 1715746 | - | - | 1717130 |
| &nbsp;&nbsp;&nbsp;Shares issued through convertible notes conversion |  | - | 11028705 | 1103 | 1021344 | - | - | 1022447 |
| &nbsp;&nbsp;&nbsp;Shares issued through preferred shares conversion | (9500) | (1) | 81198475 | 8120 | 47081 | - | - | 55200 |
| &nbsp;&nbsp;&nbsp;Shares issued under equity line of credit |  | - | 1774650 | 177 | 170042 | - | - | 170219 |
| &nbsp;&nbsp;&nbsp;Shares issued for purchase of convertible note |  | - | 200000 | 20 | 76811 | - | - | 76831 |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustments |  | - |  | - | - | - | 275 | 275 |
| &nbsp;&nbsp;&nbsp;Cumulative dividend for Series A, D and F preferred stock |  | - |  | - | - | (79433) | - | (79433) |
| &nbsp;&nbsp;&nbsp;Net loss | - | - | - | - | - | (11986754) | - | (11986754) |
| BALANCE, December 31, 2025 | 5000 | $- | 112852596 | $11287 | $24049579 | $(36800876) | $(706) | $(12740716) |

---

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

**NATURE'S MIRACLE HOLDING INC., SUBSIDIARIES AND VIE**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | **For the <br> Year Ended**<br>**December 31**<br>**2025** | **For the <br> Year Ended**<br>**December 31**<br>**2024** |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(11986754) | $(13653340) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation expense | 303351 | 159439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses | 1818151 | 408569 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of operating right-of-use asset | 446198 | 376361 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance cost | 811560 | 121149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on loan extinguishment | (67183) | 8417 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on impairment of investment | 1000000 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of property and equipment | (20685) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock compensation expenses | 341462 | 1413458 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non cash finance expense | 200000 | 1000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of commitment shares to be issued | (28840) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory impairment loss | 544469 | 2315209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 834298 | (1672144) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 1234114 | 952291 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepayments and other current assets | 304289 | (11697) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepayments - related parties | 10000 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Security deposit | 398633 | (381000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (797968) | 2609342 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other payables and accrued liabilities | 1100626 | 437872 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest payable - related parties | 134310 | 101571 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (440342) | (393362) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax accrual | (29643) | 160746 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income - Contract liabilities | (95059) | 112348 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (3985013) | (5934771) |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Loan to Lakeshore | - | (40000) |
| &nbsp;&nbsp;&nbsp;Deposit from investment of Future Tech | (721000) | - |
| &nbsp;&nbsp;&nbsp;Deposit from licensing fee of Datavault AI | (200000) | - |
| &nbsp;&nbsp;&nbsp;Proceeds from disposal of property and equipment | 25959 | - |
| &nbsp;&nbsp;&nbsp;Proceeds from asset acquisition | 31682 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (863359) | (40000) |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from the reverse recapitalization | - | 1120177 |
| &nbsp;&nbsp;&nbsp;Payments of transaction costs incurred by Lakeshore | - | (1044980) |
| &nbsp;&nbsp;&nbsp;Repayments of promissory note - related party of Lakeshore | - | (75000) |
| &nbsp;&nbsp;&nbsp;Capital contribution in advance | 1374000 | - |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of warrants | 865423 | 451433 |
| &nbsp;&nbsp;&nbsp;Shares and warrants issued through public offering | - | 3308953 |
| &nbsp;&nbsp;&nbsp;Payments of deferred offering costs | - | (266925) |
| &nbsp;&nbsp;&nbsp;Proceeds from shares issued under equity line of credit | 170219 | - |
| &nbsp;&nbsp;&nbsp;Long-term loan borrowing | 97163 | - |
| &nbsp;&nbsp;&nbsp;Repayments on long-term loan | (202257) | (269119) |
| &nbsp;&nbsp;&nbsp;Short-term loan borrowing from third parties | 1987008 | 4915984 |
| &nbsp;&nbsp;&nbsp;Repayments on short-term loan from third parties | (1160380) | (2850239) |
| &nbsp;&nbsp;&nbsp;Short-term loan borrowing from related parties | 134000 | - |
| &nbsp;&nbsp;&nbsp;Repayments on short-term loan from related parties | (220755) | (50000) |
| &nbsp;&nbsp;&nbsp;Convertible notes borrowing | 2271241 | 1197500 |
| &nbsp;&nbsp;&nbsp;Repayments on convertible notes | (802875) | (272920) |
| &nbsp;&nbsp;&nbsp;Borrowings from other payables - related parties | 59145 | 38184 |
| &nbsp;&nbsp;&nbsp;Payments on other payables - related parties | (46273) | (30000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 4525659 | 6173048 |
| EFFECT OF FOREIGN EXCHANGE ON CASH | 276 | 94 |
| CHANGES IN CASH AND CASH EQUIVALENTS | (322437) | 198371 |
| CASH AND CASH EQUIVALENTS, beginning of year | 420131 | 221760 |
| CASH AND CASH EQUIVALENTS, end of year | $97694 | $420131 |
| SUPPLEMENTAL CASH FLOW INFORMATION: |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for income tax | $1700 | $3315 |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $391744 | $1276757 |
| SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS: |  |  |
| &nbsp;&nbsp;&nbsp;Right of use assets acquired under new operating leases | $124372 | $398788 |
| &nbsp;&nbsp;&nbsp;Reduction of right-of-use asset and operating lease liabilities based on modification | $- | $54800 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit acquired upon the reverse recapitalization | $- | $1732630 |
| &nbsp;&nbsp;&nbsp;Deferred offering cost converted to APIC upon the reverse recapitalization | $- | $1100857 |
| &nbsp;&nbsp;&nbsp;Conversion of convertible notes into shares | $1022447 | $- |
| &nbsp;&nbsp;&nbsp;Debt-to-equity conversion | $1717130 | $1500000 |
| &nbsp;&nbsp;&nbsp;Forgiveness of related party's debt | $- | $2135573 |
| &nbsp;&nbsp;&nbsp;Asset acquisition via preferred stock issuance | $9415634 | $- |
| &nbsp;&nbsp;&nbsp;Asset acquisition via convertible note issuance | $3000000 | $- |

---

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

**Nature's Miracle Holding Inc., Subsidiaries and VIE Notes to Consolidated Financial Statements**

**Note 1 — Nature of business and organization**

Nature's Miracle Holding Inc., which until March 11, 2024 was known as LBBB Merger Corp. (the "Company", "Nature's Miracle") is a company incorporated on August 1, 2022 under Delaware law as a wholly owned subsidiary of the Lakeshore Acquisition II Corp., a Cayman Islands exempted company ("Lakeshore").

On March 11, 2024, Lakeshore merged with and into the Company for the sole purpose of reincorporating Lakeshore into the State of Delaware ("Reincorporation"). Immediately after the Reincorporation, the Company consummated the merger contemplated by the Merger Agreement between the Company and Nature's Miracle, Inc., a Delaware corporation ("NMI"), resulting in the stockholders of NMI becoming 84.7% stockholders of the Company and the Company becoming the 100% stockholder of NMI. ("the Merger").

Pursuant to the Merger Agreement, at the effective time of the Merger, each share of NMI common stock issued and outstanding immediately prior to the effective time was canceled and automatically converted into the right to receive the applicable pro rata portion of shares of the Company common stock, the aggregate value of which was equal to: (a) $230,000,000 minus (b) the estimated Closing Net Indebtedness (as defined in the Merger Agreement) (the "Merger Consideration").

The Merger is considered as a reverse recapitalization in accordance with Accounting Standards Codification ("ASC") 805-40. Under this method of accounting, Lakeshore will be treated as the "acquired" company for financial reporting purposes. This determination is primarily based on NMI's stockholders comprise 84.7% of the voting power of the Company, directors appointed by NMI constituting three of the five members of the Company's board of directors, NMI's operations prior to the Merger comprising the only ongoing operations of the Company, and NMI's senior management comprising all of the senior management of the Company.

Accordingly, for accounting purposes, the financial statements of the Company will represent a continuation of the financial statements of NMI with the Merger treated as the equivalent of NMI issuing stock for the net assets of Lakeshore, accompanied by a recapitalization. The net assets of Lakeshore will be stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Merger will be presented as those of NMI in financial statements of the Company. The consolidation of the Company and its subsidiaries have been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements in accordance with ASC 805-50-45-5.

The Company is a growing agriculture technology company focusing on the greenhouse and cultivation industry and providing products to indoor growers in a CEA (Controlled Environment Agriculture) setting in North America.

Reorganization under NMI

NMI is a holding company incorporated on March 31, 2022 in Delaware. NMI has no substantial operations other than holding all the outstanding share capital of its subsidiaries. NMI, its subsidiaries and variable interest entity ("VIE").

On June 1, 2022, NMI entered into the Share Exchange Agreements with the stockholders of Visiontech Group, Inc. ("Visiontech", a California Company), resulting in the stockholders of Visiontech becoming 56.3% stockholders of NMI and NMI becoming the 100% stockholder of Visiontech.

The transaction was accounted as a reverse recapitalization in accordance with ASC 805. The process of identifying the accounting acquirer began with a consideration of the guidance in ASC 810-10 related to determining the existence of a controlling financial interest. The general rule provided by ASC 810-10 is that the party that holds directly or indirectly greater than 50% of the voting shares has a controlling financial interest. As such, NMI is treated as the "acquired" company for financial reporting purposes. This determination was primarily based on the stockholders of Visiontech to have a majority of the voting power of the post-combination company, Zhiyi (Jonathan) Zhang, former president of Visiontech, became the President of NMI, the relative size of Visiontech compared to NMI. Accordingly, for accounting purposes and the combination was treated as the equivalent of Visiontech issuing shares for the net assets of NMI, accompanied by a recapitalization. The net assets of NMI are stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the business combination would be those of Visiontech.

On June 1, 2022, NMI also entered into the Share Exchange Agreements with the stockholders of Hydroman, Inc. ("Hydroman", a California Company) to acquire 100% of Hydroman by issuing 6,844,000 shares of NMI's common stock to the stockholders of Hydroman. The transaction was accounted for as a business combination according with ASC 805 where NMI (post combination with Visiontech) is both the legal and accounting acquirer. On November 11, 2024, Hydroman, Inc. changed its name to Hydroman Electric Corporation and will focus on business of electric vehicles distribution.

On July 28, 2022, Nature's Miracle (California), Inc., ("NMCA"), a California corporation wholly owned by NMI was incorporated. NMCA focuses on greenhouse development services and started providing container grow sales in first quarter of 2024.

On August 18, 2022, NMI acquired 100% interest of Photon Technology (Canada) Ltd, a Canadian company ("Photon") for a total consideration of CAD $62,571 that was equivalent to $45,500. The purchase was accounted for as an asset purchase. Wei Yang, stockholder of NMI, was the sole stockholder of Photon prior to the acquisition. Upon completion of the acquisition, NMI has 100% of the equity interest of Photon, and Photon became a wholly-owned subsidiary of NMI. Photon will focus on manufacturing greenhouse and cultivation- related products. There was no material operation as of December 31, 2025.

On August 27, 2021, Visiontech and Upland 858 LLC ("Upland"), who share common stockholders with Visiontech, entered into a promissory note agreement. Upland is a special purchase entity set up to purchase and hold a warehouse located in California. Upland promised to pay to Visiontech the sum of $1,574,079, together with simple interest thereon at the rate of 4.9% per annum. All sums of principal and unpaid interest thereon shall be due and payable in full to Visiontech on August 28, 2026. On January 10, 2022, Upland entered into a $3,000,000 commercial loan at a fixed rate of 3.79% with Bank of the West. With the funding from Visiontech and the bank, Upland purchased a warehouse located in California at the price of $4,395,230. On February 1, 2022, Upland leased the warehouse to Visiontech through a single lease agreement. As such, Visiontech is exposed to the variability of the building owned by Upland and Upland is a VIE of Visiontech. Visiontech is the primary beneficiary of Upland since Visiontech has a controlling financial interest in Upland and it has both (1) the power to direct the activities of a VIE that most significantly impact the VIE's economic performance (power) and (2) the obligation to absorb losses of the VIE that potentially could be significant to the VIE or the right to receive benefits from the VIE that potentially could be significant to the VIE.

On August 27, 2022, Upland entered into an assignment and assumption of unsecured promissory note with Zhiyi (Jonathan) Zhang, Vartor Vahe Doudakian and Yang Wei (collectively "Assignees"). Upland transferred to Assignees all of its right, title, duties, liabilities and obligation under the promissory note signed by and among Visiontech and Upland on August 27, 2021 in the original principal amount of $1,574,079. Visiontech also provided the consent to surrender its right to collect from Upland. As the stockholders are de facto agents of Visiontech, Visiontech and its de facto agents continue to bear the risk of losses or the rights to receive benefits from Upland. As such, in accordance with ASC 810, Upland is considered variable interest entity("VIE") of Visiontech and the financial statements of Upland was consolidated from the date of control and variable interest existed. See Note 4 for details.

On May 10, 2024, NM Data, Inc. ("NM Data"), a Nevada corporation wholly owned by the Company was incorporated. NM Data aimed at entering the data center and Bitcoin mining business.

On October 18, 2024, NM Rebate, Inc. ("NM Rebate"), a California corporation wholly owned by the Company was incorporated. NM Rebate focus on energy rebate solutions combined with the supply of LED lights that qualify for energy-saving rebates provided by large utility companies throughout the U.S.

On November 18, 2024, the Company filed a certificate of amendment to its amended and restated certificate of incorporation to effect a one-for-thirty (1-for-30) reverse split (the "Reverse Split"). The Reverse Split became effective on November 21, 2024. As a result of the Reverse Split, every 30 shares of the Company's issued and outstanding common stock were automatically converted into one share of common stock, with no change to the par value per share. All share and per share data has been retroactively restated to reflect the current capital structure and the Reverse Split of the Company.

On September 18, 2025, the Company entered into a Membership Interest Purchase Agreement (the "Purchase Agreement") with Big Lake Capital LLC ("Big Lake"), pursuant to which, the Company agreed to purchase from Big Lake all of the membership interests of Zak Properties, LLC, an Ohio limited liability company ("Zak Properties"), which in turn owns certain real property located in the State of Ohio, commonly known as 405 Madison Ave. The Company's Chief Executive Officer and Chairman, Tie (James) Li, is the sole member of Zak Properties prior to the sale. For details see related party transaction in Note 6 – Asset acquisition under common control.

**Note 2 — Going concern**

In assessing liquidity, the Company monitors and analyzes cash on-hand and operating expenditure commitments. The Company's liquidity needs are to meet working capital requirements and operating expense obligations. To date, the Company financed its operations primarily through cash flows from operations, debt financing from financial institution and related parties. As of December 31, 2025 and 2024, the Company had approximately $0.1 million and $0.4 million in cash which primarily consists of bank deposits, which are unrestricted as to withdrawal and use. The Company's working capital deficit was approximately $22.3 million and $14.6 million as of December 31, 2025 and 2024. The Company's accumulated deficit and negative operating cash flow for the year December 31, 2025 amounted to $36,800,876 and $3,985,013, respectively.

Subsequent to December 31, 2025, the Company obtained approximately $0.3 million in proceeds from convertible notes and promissory notes for liquidity. See Note 20 for further details.

The Company has experienced recurring losses from operations and negative cash flows from operating activities since 2022. In addition, the Company had, and may potentially continue to have, an ongoing need to raise additional cash from outside sources to fund its expansion plan and related operations. Successful transition to attaining profitable operations is dependent upon achieving a level of revenues adequate to support the Company's cost structure. In connection with the Company's assessment of going concern considerations in accordance with Financial Accounting Standard Board's Accounting Standards Update ("ASU") 2014-15, "Disclosures of Uncertainties about an Entity's Ability to Continue as a Going Concern," management has determined that these conditions raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that these consolidated financial statements are issued.

If the Company is unable to realize its assets within the normal operating cycle of a twelve (12) month period, the Company may have to consider supplementing its available sources of funds through the following sources:

● financial support from the Company's related parties and stockholders;

● other available sources of financing from banks and other financial institutions;

● equity financing through capital market.

The Company has a $20 million equity financing program ("ELOC") with GHS Investment and this was declared effective by SEC. The Company can draw on this facility for its working capital needs and others. The Company received $170,219 for the year ended December 31, 2025 under this facility, with approximately $19.8 million of credit still available.

The Company has access to investors who are providing convertible notes financing for public companies and the Company has been utilizing the convertible notes for part of its financing needs.

The shareholder of the Company also offers support for the Company. Big Lake Capital, LLC, a related party controlled by Tie Li (our Chairman and CEO) entered into a $2 million Convertible Promissory Note on April 11, 2025 with the initial tranche of $600,000. The Company has borrowed $813,600 and converted $652,800 for the year ended December 31, 2025 under this note, with $1,186,400 of credit still available.

The Company can make no assurances that required financings will be available for the amounts needed, or on terms commercially acceptable to the Company, if at all. If one or all of these events does not occur or subsequent capital raises are insufficient to bridge financial and liquidity shortfall, there would likely be a material adverse effect on the Company and would materially adversely affect its ability to continue as a going concern.

The consolidated financial statements have been prepared assuming that the Company will continue as a going concern and, accordingly, do not include any adjustments that might result from the outcome of this uncertainty.

**Note 3 — Basis of presentation and summary of significant accounting policies**

<u>Basis of presentation</u>

The accompanying financial statements have been prepared in accordance with the generally accepted accounting principles in the United States of America ("U.S. GAAP") and pursuant to the rules and regulations of the Securities Exchange Commission ("SEC"). The Company's fiscal year end date is December 31.

<u>Principles of consolidation</u>

The consolidated financial statements include the financial statements of the Company and its subsidiaries, which include its wholly owned subsidiaries and VIE over which the Company exercises control and, when applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary. All transactions and balances among the Company and its subsidiaries and VIE have been eliminated upon consolidation.

<u>Use of estimates and assumptions</u>

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities reported and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates.

<u>Cash and cash equivalents</u>

Cash and cash equivalents consist of amounts held as cash on hand and bank deposits.

From time to time, the Company may maintain bank balances in interest bearing accounts in excess of the $250,000 currently insured by the Federal Deposit Insurance Corporation for interest bearing accounts (there is currently no insurance limit for deposits in noninterest bearing accounts). The Company has not experienced any losses with respect to cash. Management believes our Company is not exposed to any significant credit risk with respect to its cash. The amount in excess of the FDIC insurance was $0 as of December 31, 2025.

<u>Prepayments and other current assets</u>

Prepaid expenses and other current assets primarily include prepaid expenses paid to product providers, and other deposits. Management regularly reviews the aging of such balances and changes in payment and realization trends and records allowances when management believes collection or realization of amounts due are at risk. Accounts considered uncollectable are written off against allowances after exhaustive efforts at collection are made. As of December 31, 2025 and 2024, no allowance for doubtful account was recorded.

<u>Accounts receivable, net</u>

Starting from January 1, 2023, the Company adopted ASU No.2016-13 "Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASC Topic 326"). The Company used a modified retrospective approach, and the adoption does not have an impact on our consolidated financial statements. During the ordinary course of business, the Company extends unsecured credit to its customers. Accounts receivable are stated at the amount the Company expects to collect from customers. An allowance for expected credit loss is recorded in the period in which loss is determined to be probable based on lifetime expected losses considering historical, current, and forecasted conditions. Amounts deemed uncollectible are written off against the allowance after all collection efforts have ceased.

<u>Inventory</u>

Inventory consists of finished goods ready for sale and is stated at the lower of cost and net realizable value. The Company values its inventory using the weighted average costing method. The Company's policy is to include as a part of cost of goods sold any freight incurred to ship the product from its vendors to warehouses. Outbound freight costs related to shipping costs to customers are considered periodic costs and are reflected in cost of revenue. The Company regularly reviews inventory and considers forecasts of future demand, market conditions and product obsolescence.

If the estimated realizable value of the inventory is less than cost, the Company makes provisions in order to reduce its carrying value to its estimated market value. The Company also reviews inventory for slow moving inventory and obsolescence and records impairment for obsolescence. During the years ended December 31, 2025 and 2024, the Company recorded inventory impairment losses of $544,469 and $2,315,209, respectively.

<u>Cost method investment</u>

The Company accounts for investments with less than 20% of the voting shares and does not have the ability to exercise significant influence over operating and financial policies of the investee using the cost method. The Company records cost method investment at the historical cost in its consolidated financial statements and subsequently records any dividends received from the net accumulated earrings of the investee as income. Dividends received in excess of earnings are considered a return of investment and are recorded as reduction in the cost of the investments.

Cost method investment is evaluated for impairment when facts or circumstances indicate that the fair value of the long-term investments is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near-term prospects of the investments; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. For the years ended December 31, 2025 and 2024, the Company recorded $1,000,000 and nil of impairment charges for its investments.

<u>Deposits</u>

Deposits consist of security deposits for vendors and deposits for acquisition. To maintain a stable supply for goods and build a long-term relationship, the Company may pay certain amount of funds to its vendors as security deposits which are recorded as non-current assets on the balance sheet depending on its return date. On November 22, 2024, NM Data entered into an investment agreement to acquire 51% of Future Tech Incorporated ("Future Tech"), an Ohio-based company, for the development and construction of a 50MW high density data center and a vertical farming facility in Stryker, Ohio. The closing of the acquisition of Future Tech is subject to Future Tech's executing an electricity sales and purchase agreement with a certain supplier set forth in the agreement and Future Tech entering into a ten-year lease option to purchase indoor space as set forth in the agreement. As of December 31, 2025, the deposit for acquisition of Future Tech was $721,000. The Company also made a deposit with Datavault AI for licensing fee of $200,000 for certain intellectual properties related to business in the field of tokenization of assets using cryptocurrencies.

<u>Property and equipment</u>

Property and equipment are stated at historical cost. Depreciation is provided over the estimated useful life of each class of depreciable assets and is computed using the straight-line method over the useful lives of the assets are as follows:

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| | |
|:---|:---|
|  | **Useful Life** |
| Machinery and equipment | 5 years |
| Computer and peripherals | 3 years |
| Trucks and automobiles | 5 years |
| Building improvements | 39 years |
| Buildings | 39 years |

---

The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statements of operations. Expenditures for maintenance and repairs are expensed as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized.

<u>Long-lived assets impairment</u>

The Company reviews the impairment of its long-lived assets on an annual basis and whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be fully recoverable. These events or changes in circumstances may include but are not limited to, a significant deterioration of operating results, a change in the regulatory environment, changes in business plans, or adverse changes in anticipated future cash flows. If an impairment indicator is present, the Company evaluates the recoverability by a comparison of the carrying amount of the assets to future undiscounted net cash flows expected to result from the use and eventual disposition of the assets. If the assets are determined to be impaired, the impairment recognized is the excess of the carrying amount over the fair value of the assets. Fair value is generally determined by the discounted cash flow method. The discount rate used in any estimate of discounted cash flows is the rate commensurate with a similar investment of similar risk. As of December 31, 2025 and 2024, there was no impairment of long-lived assets.

<u>Fair value measurement</u>

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

ASC Topic 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. ASC Topic 820 specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows:

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

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

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

When available, the Company uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Company measures fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates.

<u>Fair values of financial instruments</u>

Financial instruments include cash and cash equivalents, accounts receivable, prepayments, loan receivable, and other current assets, other payable and accrued liabilities, accounts payable — related parties, short term loans and taxes payable. The Company considers the carrying amount of short-term financial instruments to approximate their fair values because of the short period of time between the origination of such instruments and their expected realization. The Company's long-term debts are measured at amortized cost, no fair value option is elected.

<u>Revenue recognition</u>

The Company follows Accounting Standards Codification ("ASC") 606 Revenue Recognition and recognizes revenue from product sales revenues, net of promotional discounts and return allowances, when the following revenue recognition criteria are met: a contract has been identified, separate performance obligations are identified, the transaction price is determined, the transaction price is allocated to separate performance obligations and revenue is recognized upon satisfying each performance obligation.

The Company is a growing agriculture technology company providing CEA hardware products to growers in the controlled environment agriculture industry setting in North America. Majority of the Company's products were grow lights and related products for the indoor growing settings. The Company also provides indoor grow containers to its customers.

The Company's contracts with customers where the amounts charged per product is fixed and determinable, the specific terms of the contracts were agreed on by the Company including payment terms which are typically 30 to 60 days for existing customers and prepaid for most new customers. In certain contracts involving sales to customers that entered into rebate programs who can get rebates with utility companies for using LED lighting, payment term ranges from 60 to 120 days.

The Company's performance obligation is to deliver the products to customers. For indoor grow container products, the Company also involved in customization of the products to suit customer's specific needs. The provision of customization and configuration to meet certain technical specification per US market and delivery of product is considered one performance obligation as the services provided are not distinct within the context of the contract whereas the customers can only obtain benefit when the services and products are provided together. At times, the Company may charge customers shipping and handling for delivery of products, control of goods does not transfer to the customer before shipment, therefore shipping is not a promised service to the Company and is not considered a separate performance obligation. Any fee charged for shipping would be included in the transaction price for the good.

Transaction prices are mostly fixed. In some contracts, when determining the transaction price, the Company adjusts consideration for the effects of the time value of money if the timing of payments provides the Company with a significant benefit of financing. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customers and the transfer of the promised goods or services to the licensees will be one year or less. For customers that entered into rebate programs with utility companies, transaction price may depend on level of energy saving the products achieved. The Company estimated the amount of consideration using the expected value of the most likely amount depending on which method the Company expects to better predict the amount of consideration to which it will receive with a constraint applied such that a significant reversal of revenue is not probable.

The Company transfers the risk of loss or damage upon shipment, therefore, revenue from product sales is recognized at a point in time when control of product transfer to customer and the Company has no further obligation to provide services related to such product evidenced by customer signing acceptances upon receipt of goods. Return allowances, which reduce product revenue by the Company's best estimate of expected product returns, are estimated using historical experience.

The Company evaluates the criteria of ASC 606 — Revenue Recognition Principal-Agent Considerations in determining whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as commissions. The Company ships the products according to shipping terms on the purchase order or sales order. Once delivery is complete, the Company then sends an invoice to the customer according to the quantity and price of shipment.

The Company evaluates the indicators of control in accordance with ASU 2016-08: 1) the Company is the most visible entity to customers and assumes fulfilment risk and risks related to the acceptability of products, including addressing customer inquiries directly and handling of product returns or refunds directly if any. For grow light products, the Company has its own brand for marketing. For indoor grow containers products, the Company is also involved in the design and technical specification of the products to meet requirement in the US market. 2) The Company assumes inventory risk either through storing the products in its own warehouses; or for drop shipments directly from vendors, the Company takes the title from vendors through inspection and acceptance and is responsible for product damage during shipment period prior to acceptance of its customers and is also responsible for product return if the customer is not satisfied with the products. 3) The Company determines the resale price of the products. 4) The Company is the party that directs the use of the inventory and can prevent the vendor from transferring the product to a customer or to redirect the products to a different customer, after evaluating the above scenario, the Company considers itself the principal of these arrangements and records revenue on a gross basis.

The Company's disaggregate revenue stream by products are summarized below:

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| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **December 31,<br> 2025** | **December 31,<br> 2024** |
| Grow light | $1382020 | $8910308 |
| Indoor grow containers | - | 143781 |
| Grow Media and others | 360340 | 207494 |
| Total | $1742360 | $9261583 |

---

Prepayments received from customers prior to the delivery of goods to customers or picked up by the customers are recorded as contract liability under the account Deferred income — contract liabilities.

Movements of deferred income — contract liabilities (including related party) consisted of the following as of the date indicated:

---

| | | |
|:---|:---|:---|
|  | **As of <br> December 31, 2025** | **As of <br> December 31, 2024** |
| Beginning balance | $231258 | $118909 |
| Prepayments from customers | 212751 | 1054171 |
| Recognized as revenues | (307810) | (941822) |
| Ending balance | $136199 | $231258 |

---

The Company periodically provides incentive offers to its customers to encourage purchases. Such offers include current discount offers, such as percentage discounts off current purchases and other similar offers. Current discount offers, when accepted by the Company's customers, are treated as a reduction to the transaction price of the related transaction.

Sales discounts are recorded in the period in which the related sales are recognized. Sales return allowances are recorded and estimated based on historical returns which were generally immaterial to the Company.

Estimated warranty is immaterial because suppliers provide a warranty period of 1-5 years for all products, varying depending on the product type. After customers provide their purchase invoices and serial numbers for the return products, the factories will issue the replacement products. Additionally, the factories will also bear the corresponding shipping costs, making the company's warranty expenses negligible.

<u>Cost of revenue</u>

Cost of revenue mainly consists of costs for purchases of products and related storage, warehouse rent, outbound freight, delivery fees and payroll related expenses.

<u>Segment reporting</u>

The Company follows ASC 280, Segment Reporting. The Company's chief operating decision maker, the Chief Executive Officer, reviews the results of operations when making decisions about allocating resources and assessing the performance of the Company as a whole and hence, the Company has only one reportable segment. The Company does not distinguish between markets or segments for the purpose of internal reporting. The Company's long-lived assets are all located in California, United States, and substantially all the Company's revenues are derived from within the USA. Therefore, no geographical segments are presented.

<u>Leases</u>

The Company follows ASC 842 — Leases ("ASC 842"), which requires lessees to record right-of-use ("ROU") assets and related lease obligations on the balance sheet, as well as disclose key information regarding leasing arrangements.

ROU assets represent our right to use an underlying asset for the lease terms and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

&nbsp;&nbsp;&nbsp;&nbsp;

<u>Income taxes</u>

The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their perspective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded, when necessary, to reduce deferred tax assets to the amount expected to be realized.

As a result of the implementation of certain provisions of ASC 740, Income Taxes ("ASC 740"), which clarifies the accounting and disclosure for uncertainty in tax position, as defined, ASC 740 seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to accounting for income taxes. The Company follows the provisions of ASC 740 and has analyzed filing positions in each of the federal and state jurisdictions where the Company is required to file income tax returns, as well as open tax years in such jurisdictions. The Company has identified the U.S. federal jurisdiction, and the states of Delaware, as its "major" tax jurisdictions.

The Company believes that our income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to its financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. The Company's policy for recording interest and penalties associated with income-based tax audits is to record such items as a component of income taxes.

<u>Stock-based compensation</u>

The Company accounts for stock-based compensation awards to employees in accordance with FASB ASC Topic 718, "Compensation – Stock Compensation", which requires that stock-based payment transactions with employees be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period.

The Company accounts for stock-based compensation awards to non-employees in accordance with FASB ASC Topic 718 amended by ASU 2018-07. Under FASB ASC Topic 718, stock compensation granted to non-employees has been determined as the fair value of the consideration received or the fair value of equity instrument issued, whichever is more reliably measured and is recognized as an expense as the goods or services are received.

<u>Warrants</u>

The Company evaluates the public and private warrants as either equity-classified or liability-classified instruments based on an assessment of the warrants' specific terms and applicable authoritative guidance in Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 480, Distinguishing Liabilities from Equity ("ASC 480") and ASC 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 ordinary shares, among other conditions for equity classification. Pursuant to such evaluation, both public and private warrants are classified in shareholders' equity.

For issued warrants that meet all of the criteria for equity classification and issued with debt instruments, the proceeds from the sale of the debt instruments are allocated to the two elements based on the relative fair values of the debt instrument without the warrants and of the warrants themselves at time of issuance. The portion of the proceeds so allocated to the warrants is accounted for as paid-in capital. The remainder of the proceeds is allocated to the debt instrument portion of the transaction at a discount and amortized over the term of the debt instrument using the effective interest rate method.

<u>Convertible notes</u>

Upon adoption of ASU 2020-06 on January 1, 2021, the elimination of the beneficial conversion feature ("BCF") and cash conversion models in ASC 470-20 that requires separate accounting for embedded conversion features in convertible instruments results in the convertible debt instruments being recorded as a single liability (i.e., there is no separation of the conversion feature, and all proceeds are allocated to the convertible debt instruments as a single unit of account). Unless conversion features are derivatives that must be bifurcated from the host contracts in accordance with ASC 815-15 or, in the case of convertible debt, if the instruments are issued with a substantial premium, in the latter case, ASC 470-20-25-13 requires the substantial premium to be attributable to the conversion feature and recorded in additional paid-in capital (APIC).

<u>Redeemable convertible preferred stock</u>

The Company accounts for its preferred shares in accordance with the guidance in ASC Topic 480, "Distinguishing Liabilities from Equity" (ASC 480). For preferred shares subject to mandatory redemption (if any) will be classified as a liability instrument and will be measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that features redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company's control) will be classified as temporary equity. At all other times, ordinary shares will be classified as shareholders' equity. In accordance with ASC 480-10-S99, the Company classifies the Series A, D, and F preferred shares outside of permanent equity as the shares are subject to possible redemption after 120 days of closing. The Company recorded the Series A, D, and F preferred shares as temporary equity with accrued dividend included in redemption value.

<u>Commitments and Contingencies</u>

In the ordinary course of business, the Company is subject to certain contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss has occurred, and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments including historical and specific facts and circumstances of each matter.

<u>Related party transactions</u>

A related party is generally defined as (i) any person and or their immediate family hold 10% or more of the company's securities (i) the Company's management and or their immediate family, (i) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company, A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Related parties may be individuals or corporate entities. 'Transactions involving related parties cannot be presumed to be caried out on an arm's - length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated.

<u>Loss per share</u>

Basic loss per share is computed by dividing net loss attributable to holders of common stock by the weighted average number of common stock outstanding during the year. Diluted loss per share presents the dilutive effect on a per share basis of the potential common stock (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.

For the years ended December 31, 2025 and 2024, diluted EPS equals basic EPS because the Company incurred a net loss.

<u>Recently issued accounting pronouncements</u>

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 ("ASU 2024-03"), which requires the disaggregation of certain expenses in the notes of the financials, to provide enhanced transparency into the expense captions presented on the face of the income statement. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027 and may be applied either prospectively or retrospectively. The Company is currently evaluating the impact that ASU 2024-03 will have on its related disclosures.

<u>Recently adopted accounting pronouncements</u>

In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments' significant expenses and certain other segment items on an interim and annual basis if they are regularly provided to the chief operating decision maker ("CODM"). This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company adopted ASU 2023-07 on January 1, 2024.

In December 2023, the FASB issued Accounting Standards Update No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. The Company adopted ASU 2023-09 on January 1, 2025.

In November 2024, the FASB issued ASU 2024-04, Debt–Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversion of Convertible Debt Instruments ("ASU 2024–04"), which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. ASU 2024-04 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted for all entities that have adopted the amendments in Update 2020-06, which includes the Company. Adoption can be on a prospective or retrospective basis. The Company adopted ASU 2024-04 effective January 1, 2025 on a prospective basis.

In July 2025, the FASB issued ASU 2025-05 Financial Instruments – Credit Losses (Subtopic 326) ("ASU 2025-05"), simplifies the Current Expected Credit Loss (CECL) model for receivables and contract assets by offering a practical expedient to use current conditions for forecasts and an accounting policy election to consider post-balance sheet collections, allowing for early adoption for financial statements not yet issued. The guidance is effective for annual reporting periods beginning after December 15, 2025, but early adoption is permitted. The Company adopted the ASU 2025-05 on January 1, 2025.

Except as mentioned above, the Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company's consolidated balance sheets, statements of income and comprehensive income and statements of cash flows.

**Note 4 — Variable interest entity**

The Company does not have direct ownership in Upland but has been actively involved in their operations and has the power to direct the activities and significantly impact Upland's economic performance. The Company also bears the risk of losses from Upland. As such, in accordance with ASC 810, Upland is considered variable interest entity ("VIE") of the Company and the financial statements of Upland was consolidated from the date of control and variable interest existed.

Based on the loan agreement between its creditor and Upland 858 LLC, the loan is a non-recourse debt secured by the assets owned by Upland 858 LLC only and guaranteed by the stockholders of Upland 858 LLC only. Upland 858 LLC's creditor will have no-recourse to Visiontech which is considered to be the primary beneficiary of the VIE structure but not the legal owner of Upland 858 LLC:

Accordingly, the accounts of Upland were consolidated in the accompanying financial statements as VIE of Visiontech from January 2022 when Upland acquired the warehouse in California.

The carrying amount of the assets and liabilities are as follows:

---

| | |
|:---|:---|
|  | **As of<br> December 31,<br> 2025** |
| Cash | $6155 |
| Property and equipment, net | 4047226 |
| Total assets | $4053381 |
| Current portion of long-term debt | $86928 |
| Long-term debt, net of current portion | 2608062 |
| Accrued expenses | 8103 |
| Intercompany payable to Visiontech | 1289757 |
| Total liabilities | $3992850 |

---

The operating results of VIE included in the consolidated statements of operations are as follows for the period indicated:

---

| | |
|:---|:---|
|  | **For the <br> year ended <br> December 31, <br> 2025** |
| Revenue<sup>\*</sup> | $332842 |
| Selling, general and administrative | 136082 |
| Interest expense | 98116 |
| Income tax | 1700 |
| Net income | $96944 |

---

\* Upland generated its revenue from leasing the warehouse to Visiontech. Revenue of Upland was fully eliminated on the consolidated statements of operations.

**Note 5 — Reverse recapitalization** 

On March 11, 2024, Lakeshore merged with and into the Company for the sole purpose of reincorporating Lakeshore into the State of Delaware. Immediately after the Reincorporation, the Company consummated the merger between the Company and NMI, resulting in the stockholders of NMI becoming 84.7% stockholders of the Company and the Company becoming the 100% stockholder of Nature's Miracle. Lakeshore was treated as the "acquired" company for financial reporting purposes. Accordingly, the financial statements of the Company represent the continuation of the financial statements of NMI, with the Merger reflected as the equivalent of NMI issuing ordinary shares for the net assets of Lakeshore, accompanied by a recapitalization. The net assets of Lakeshore were recognized as of the closing date at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Merger are those of NMI. The shares and corresponding capital amounts and all per share data related to NMI outstanding shares prior to the reverse recapitalization have been retroactively adjusted.

The following table presents the number of the Company's common stock issued and outstanding immediately following the reverse recapitalization:

---

| | |
|:---|:---|
|  | **Common<br> Stock** |
| Lakeshore's shares outstanding prior to reverse recapitalization | 74717 |
| Shares issued to private rights | 1172 |
| Conversion of the Lakeshore's public shares and rights | 26337 |
| Shares issued to service providers | 26718 |
| Shares issued for commitment fee | 5114 |
| Bonus shares issued to investors | 5533 |
| Conversion of NMI's shares into the Company's ordinary shares | 742416 |
| Total shares outstanding | 882006 |

---

In connection with the reverse recapitalization, the Company has assumed 120,858 warrants outstanding, which consisted of 115,000 public warrants and 5,858 private warrants. Both of the public warrants and private warrants met the criteria for equity classification. (see Note 15 Equity for details)

In connection with the reverse recapitalization, the Company raised approximately $1.1 million of proceeds, presented as cash flows from financing activities, which included the contribution of approximately $15.1 million of funds held in Lakeshore's trust account, net of approximately $13.9 million paid to redeem 41,552 public shares of Lakeshore's ordinary shares, approximately $1.0 million in transaction costs incurred by Lakeshore, and repayments of a promissory note in the amount of $75,000 issued to Lakeshore's related party. NMI incurred approximately $1.2 million of transaction costs, which consisted of direct incremental legal and accounting fees in connection with the Merger. The net effect of the above with the net liabilities assumed from Lakeshore of approximately $1.6 million was recorded to the Company's retained deficit of $2,833,474.

The following table reconcile the elements of the reverse recapitalization to the consolidated statements of cash flows and the changes in shareholders' equity (deficit):

---

| | |
|:---|:---|
|  | **As of<br> March 11,<br> 2024** |
| Funds held in Lakeshore's trust account | $15067702 |
| Funds held in Lakeshore's operating cash account | 198 |
| Less: amount paid to redeem public shares of Lakeshore's ordinary shares | (13947723) |
| Proceeds from the reverse recapitalization | 1120177 |
| Less: payments of transaction costs incurred by Lakeshore | (1044980) |
| Less: repayments of promissory note – related party of Lakeshore' | (75000) |
| Less: notes assumed from Lakeshore | (555000) |
| Less: liability assumed from Lakeshore | (1547814) |
| Less: transaction costs paid by NMI | (1230857) |
| Add: receivable assumed from Lakeshore | 500000 |
| Net liabilities assumed from issuance of common stock upon the Merger, balance classified to retained deficit | $(2833474) |

---

**Note 6 — Asset acquisition under common control**

On September 18, 2025, the Company entered into a Membership Interest Purchase Agreement with Big Lake, pursuant to which, the Company agreed to purchase from Big Lake all of the membership interests of Zak Properties, which in turn owns certain real property located in the State of Ohio, commonly known as 405 Madison Ave. The Company's Chief Executive Officer and Chairman, Tie (James) Li, is the sole member of Zak Properties prior to the sale. The purchase price for Zak Properties is $17,500,000, and will be paid by the Company as follows: (i) the Company shall issue 5,000 shares of Series B Preferred Stock (valued at $5,000,000) of the Company which (a) can be converted into Common Stock, par value $0.0001 per share, of the Company at $0.1180 per share and (b) have certain voting rights equal to twenty (20) votes per one (1) share of Series B Preferred Stock; (ii) the Company shall issue 9,500 shares of Series C Preferred Stock (valued at $9,500,000) of the Company which are convertible into shares of Common Stock at $0.1180 per share; and (iii) the Company shall issue a convertible promissory note (the "Note") in the principal amount of $3,000,000 in favor of Big Lake with a term of two years from the date of issuance and interest in the amount of 10% per annum. The Purchase Agreement includes customary representations, warranties and covenants by the Company and customary closing conditions. The acquisition closed on September 18, 2025.

Since Big Lake, Zak Properties and the Company are under common control of Mr. Li and the asset acquired is concentrated in a single identifiable asset which is a building, the acquisition is accounted for as asset acquisition under common control where the assets are transferred at the cost basis on September 18, 2025. The excess of consideration paid over the carrying value was recorded as a reduction in the Company's additional paid in capital.

Fair value of consideration transferred:

---

| | |
|:---|:---|
| Series B and C preferred stock | $14440000 |
| Issuance cost of preferred stock | 60000 |
| Convertible promissory note | 3000000 |
| Total | $17500000 |

---

Carrying value of assets and liabilities transferred:

---

| | |
|:---|:---|
|  | **As of<br> September 18, 2025** |
| Current assets | $671682 |
| Property and equipment, net | 13334938 |
| Total assets | 14006620 |
| Total liabilities | (1530986) |
| Net assets | $12475634 |

---

Equity in the Company as a result of the asset acquisition increased as follows:

---

| | |
|:---|:---|
|  | **As of**<br> **September 18,<br> 2025** |
| Net assets acquired | $12475634 |
| Less: debt incurred | (3000000) |
| Less: cost associated with issuance of Series B and C preferred stock | (60000) |
| Increase in equity | $9415634 |

---

**Note 7 — Accounts receivable, net**

Accounts receivable, net consisted of the following as of the date indicated:

---

| | | |
|:---|:---|:---|
|  | **As of<br> December 31,<br> 2025** | **As of<br> December 31,<br> 2024** |
| Accounts receivable | $2271781 | $2744118 |
| Less: allowance for credit losses | (2118738) | (915074) |
| Subtotal accounts receivable, net | 153043 | 1829044 |
| Accounts receivable - related party | 730998 | 1092960 |
| Less: allowance for credit losses – related party | (730998) | (116511) |
| Subtotal accounts receivable – related party, net | - | 976449 |
| Total accounts receivable, net | $153043 | $2805493 |

---

Provision for credit losses were $1,818,151 and $408,569 for the years ended December 31, 2025 and 2024, respectively.

Movement of allowance:

Movement of allowance for expected credit losses (including related party) consisted of the following as of the date indicated:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | **December 31,<br> 2024** |
| Beginning balance | $1031585 | $669974 |
| Addition | 1818151 | 408569 |
| Write-off | - | (46958) |
| Ending balance | $2849736 | $1031585 |

---

**Note 8 — Cost method investment**

Cost method investment consists of the following:

---

| | | |
|:---|:---|:---|
|  | **As of<br> December 31,<br> 2025** | **As of<br> December 31,<br> 2024** |
| 10% Investment of Iluminar | $&nbsp;&nbsp;&nbsp;&nbsp; - | $1000000 |
| Total | $- | $1000000 |

---

On April 11, 2023, one of the Company's customers, Iluminar Lighting LLC ("Iluminar") entered into Debt Conversion Agreement with the Company pursuant to which it will convert $1,000,000 of accounts receivable to 1,033,333 shares of Iluminar which is 10% of Iluminar's outstanding shares. The shares were issued to the Company on March 31, 2023. The Company determined that the recoverability of the investment appears doubtful. The Company deemed the loss in investment value other than a temporary decline and thus recorded $1.0 million impairment loss. As of December 31, 2025 and 2024, the Company recorded impairment of $1,000,000 and nil respectively.

**Note 9 — Property and equipment, net**

Property and equipment, net consists of the following:

---

| | | |
|:---|:---|:---|
|  | **As of<br> December 31,<br> 2025** | **As of<br> December 31,<br> 2024** |
| Trucks & Automobiles | $326252 | $285099 |
| Machinery & Equipment | 8287 | 67847 |
| Warehouse Equipment | 29984 | - |
| Computers & Peripherals | 2783 | - |
| Building | 12930503 | 3465230 |
| Building improvements | 7157418 | - |
| Land | 1150000 | 930000 |
| Subtotal | 21605227 | 4748176 |
| Less: accumulated depreciation | (3235194) | (501344) |
| Total | $18370033 | $4246832 |

---

Depreciation expense for the years ended December 31, 2025 and 2024 amounted to $303,351 and $159,439, respectively. For the years ended on December 31, 2025 and 2024, the company recognized a gain of $20,685 and $0, respectively, in relation to the disposal of equipment at its carrying value.

**Note 10 — Loans payable**

<u>Short-term loans:</u>

---

| | | |
|:---|:---|:---|
|  | **As of <br> December 31,<br> 2025** | **As of<br> December 31,<br> 2024** |
| Factor H <sup>(1)</sup> | $640816 | $685172 |
| Factor I <sup>(2)</sup> | - | 207921 |
| Factor J <sup>(3)</sup> | 38255 | 28838 |
| Factor K <sup>(4)</sup> | - | 66404 |
| Factor L <sup>(5)</sup> | 129170 | - |
| Jie Zhang <sup>(6)</sup> | 70000 | 100000 |
| Peng Zhang <sup>(7)</sup> | - | 560000 |
| RedOne Investment Limited ("RedOne") <sup>(8)</sup> | 230000 | 230000 |
| Agile Capital Funding, LLC <sup>(9)</sup> | 359344 | 480798 |
| ClassicPlan Premium Financing, Inc. <sup>(10)</sup> | - | 9471 |
| Maximcash Solutions LLC <sup>(11)</sup> | - | 300000 |
| J.J. Astor & Co.<sup>(12)</sup> | 1581212 | - |
| Yan Li<sup>(13)</sup> | 991348 | - |
| Other loans | 152500 | - |
| Total short-term loans | $4192646 | $2668604 |

---

Short-term loans consist of account receivable factoring agreements, subordinated business loan and third parties loans as of December 31, 2025 and 2024.

(1) On October 23, 2023, the Merchants
entered into a standard merchant cash advance agreement with Factor H. The Company sold $768,500 of its accounts receivable balances
on a recourse basis for credit approved accounts. The net purchase price of $503,500 was remitted to the Company, after the deduction
of the total fees of $26,500. The Company agreed to pay a weekly installment of $22,814.84 for 32 weeks with a final extra payment of
$38,500. The effective interest rate of this agreement was 85.36%. For the year ended December 31, 2024, the Company paid $409,443 principal
of the loan.

On May 2, 2024, the Merchants entered into another standard merchant cash advance agreement with Factor H. The Company sold $1,240,150 of its accounts receivable balances on a recourse basis for credit approved accounts. The net purchase price of $807,500 was remitted to the Company, after the deduction of the total fees of $42,500. The Company agreed to pay a weekly installment of $41,000 for 31 weeks. The effective interest rate of this agreement was 93.05%. The Company used this loan to pay off $175,314 previous loan with Factor H that dated on October 23, 2023. For the year ended December 31, 2024, the Company paid $807,500 principal of the loan.

On November 18, 2024, the Merchants entered into another standard merchant cash advance agreement with Factor H. The Company sold $1,167,200 of its accounts receivable balances on a recourse basis for credit approved accounts. The net purchase price of $752,000 was remitted to the Company, after the deduction of the total fees of $48,000. The Company agreed to pay a weekly installment of $32,000 for 37 weeks. The effective interest rate of this agreement was 94.98%. The Company used this loan to pay off $566,150 previous loan with Factor H that dated on May 2, 2024. For the years ended December 31, 2025 and 2024, the Company paid $44,356 and $66,828 principal of the loan.

(2) On August 29, 2024, the Merchants entered into a standard merchant cash advance agreement with Factor I. The Company sold $213,000 of its accounts receivable balances on a recourse basis for credit approved accounts. The net purchase price of $142,500 was remitted to the Company, after the deduction of the total fees of $7,500. The Company agreed to pay a weekly installment of $8,192 for 26 weeks. The effective interest rate of this agreement was 84.22%. For the year ended December 31, 2024, the Company paid $142,500 principal of the loan.

On December 12, 2024, the Merchants entered into another standard merchant cash advance agreement with Factor I. The Company sold $319,500 of its accounts receivable balances on a recourse basis for credit approved accounts. The net purchase price of $213,750 was remitted to the Company, after the deduction of the total fees of $11,250. The Company agreed to pay a weekly installment of $13,313 for 24 weeks. The effective interest rate of this agreement was 84.03%. The Company used this loan to pay off $90,116 previous loan with Factor H that dated on August 29, 2024. For the years ended December 31, 2025 and 2024, the Company paid $79,287 and $5,829 principal of the loan.

On July 31, 2025, Factor I filed a settlement agreement for Stay of Prosecution in the Seventeenth Judicial Court in Broward County, Florida, pursuant to which both parties agreed to pay a weekly installment of $10,000 for 18 weeks commencing on August 5, 2025 through December 2, 2025, followed by a final installment of $6,572 on December 9, 2025. The Company used this settlement agreement to pay off a $163,063 previous loan with Factor I dated on December 12, 2024, resulting in a $1,937 loss on debt settlement. For the year ended December 31, 2025, the Company paid $165,000 principal of the loan. The loan was paid off in October 2025.

(3) On September 27, 2024, the Merchants entered into a standard merchant cash advance agreement with Factor J. The Company sold $72,500 of its accounts receivable balances on a recourse basis for credit approved accounts. The net purchase price of $47,470 was remitted to the Company, after the deduction of the total fees of $2,530. The Company agreed to pay a weekly installment of $3,021 for 24 weeks. The effective interest rate of this agreement was 88.98%. For the years ended December 31 2025 and 2024, the Company paid $28,838 and $18,632 principal of the loan.

On February 11, 2025, the Merchants entered into another standard merchant cash advance agreement with Factor J. The Company sold $94,250 of its accounts receivable balances on a recourse basis for credit approved accounts. The net purchase price $61,070 was remitted to the company, after the deduction of the total fees $3,930. The Company agreed to pay a weekly installment of $6,732 for 14 weeks. The effective interest rate of this agreement was 89.54%. The Company used this loan to pay off $18,125 previous loan with Factor J that dated on February 10, 2025. For the year ended December 31, 2025, the Company paid $22,815 principal of the loan.

(4) On September 30, 2024, the Merchants entered into a standard merchant cash advance agreement with Factor K. The Company sold $181,250 of its accounts receivable balances on a recourse basis for credit approved accounts. The net purchase price of $115,955 was remitted to the Company, after the deduction of the total fees of $9,045. The Company agreed to pay a weekly installment of $7,552 for 24 weeks. The effective interest rate of this agreement was 94.36%. For the year ended December 31, 2024, the Company paid $49,551 principal of the loan.

On February 11, 2025, the Merchants entered into another standard merchant cash advance agreement with Factor K. The company sold $147,000 of its accounts receivable balances on a recourse basis for credit approved accounts. The net purchase of $92,605 was remitted to the company, after the deduction of the total fees $7,395. The Company agreed to pay a weekly installment of $10,500 for 14 weeks. The effective interest rate of this agreement was 96.04%. The Company use this loan to pay off $37,760 previous loan with Factor K that dated on September 30, 2024. For the year ended December 31, 2025, the Company paid $23,785 principal of the loan.

On July 16, 2025, Factor K filed a complaint in Court in Monroe County, New York referring to an outstanding balance of $100,588 after payments of $46,551 on its loan agreement with the Company, dated February 11, 2025. The total claimed amount is $129,463 plus interest from June 30, 2025 and attorney fees. On July 22, 2025, Factor K and the Company entered into a Stipulation of Settlement Agreement pursuant to which each party agreed to a settlement amount and remittance schedule that commencing on July 23, 2025 through November 11, 2025. The Company used this settlement agreement to pay off a $95,500 previous loan with Factor K dated on December 12, 2024, resulting in a $48,300 loss on debt settlement. For the year ended December 31, 2025, the Company paid $143,800 principal of the loan. The loan was paid off in October 2025.

(5) On February 7, 2025, the Merchants entered into a standard merchant cash advance agreement with Wave advance Inc (the "Factor L"). The Company sold $183,750 of its accounts receivable balances on a recourse basis for credit approved accounts. The net purchase price of $107,500 was remitted to the Company, after the deduction of the total fees of $8,750. The Company agreed to pay a weekly installment of $13,125 for 14 weeks. The effective interest rate of this agreement was 113.58%. For the year ended December 31, 2025, the Company paid $116,250 principal of the loan.

On February 25, 2025, the Merchant entered into another standard merchant cash advance agreement with Factor L. The Company sold $280,770 of its accounts receivable balance on a recourse basis for credit approved accounts. The net purchase price $177,630 was remitted to the company, after the deduction of the total fees of $13,370. The Company agreed to pay a weekly installment of $17,550 for 16 weeks. The effective interest rate of this agreement was 95.63%. The Company use this loan to pay off $157,500 previous loan with Factor L that dated on February 7, 2025 resulting in $20,000 of gain on debt settlement. For the year ended December 31, 2025, the Company paid $39,067 principal of the loan.

On August 1, 2025, the Company and Factor L signed a settlement agreement that required payments from August 5 to October 27, 2025, for an aggregate amount of $201,170. The Company agreed to pay a weekly installment of $18,000 for 11 weeks from August 5, 2025 to October 20, 2025, followed by a final installment of $3,170 on October 27, 2025. The Company use this settlement agreement to pay off a $198,670 previous loan with Factor I dated on February 25, 2025, resulting in a $2,500 loss on debt settlement. For the year ended December 31, 2025, the Company paid $72,000 principal of the loan.

These receivable purchase agreements were accounted for as secured borrowing under ASC 860 since there is no legal, actual, effective transfer of the receivables to the Factors. Rather, the Factors only have generally claim against the receivable pools not a particular receivable. As of December 31, 2025 and 2024, outstanding balance amounted to $808,241 and $988,336, respectively.

(6) On October 30, 2023, NMI entered into a loan agreement with an independent third party pursuant to which the Company borrowed a principal amount of $100,000 with an annual interest rate of 12% for a term of one year. The loan was originally extended to April 15, 2025, subsequently extended to July 16, 2025, then extended to November 16, 2025. On January 30, 2026, the third party entered into another agreement under which both parties agreed that a final payment of $20,000 would be made, and the remaining balance and accrued interest would be converted into the Company's stock. The final payment of $20,000 was made on January 30, 2026. The loan balance as of December 31, 2025 and 2024 was $70,000 and $100,000, respectively.

(7) On March 7, 2024, the Company's subsidiary Nature's Miracles entered into a loan agreement with Peng Zhang, a 2.5% shareholder of the Company. The amount of the loan is $1,405,000 with 10% interest and is due on March 7, 2025. For the year ended December 31, 2024, Nature's Miracles made a payment of $500,000 toward the loan. On November 19, 2024, the Company entered into a debt-to-equity conversion agreement, under which Peng Zhang agreed to convert the $345,000 of loan balance into 130,682 shares of the Company's common stock at a conversion price of $2.64 per share. On July 24, 2025, the Company entered into another debt-to-equity conversion agreement, under which Peng Zhang agreed to convert the remaining $560,000 of loan balance into 4,291,188 shares of the Company's common stock at a conversion price of $0.13 per share. The conversion occurred in December 2025. As of December 31, 2025 and 2024, the loan balance was $0 and $560,000.

(8) On February 10, March 28, June 5, June 27, September 22, December 22, 2023 and February 20, 2024, Lakeshore entered into seven promissory notes with RedOne to which Lakeshore borrowed an aggregate principal amount of $380,000 with zero interest rate. On July 11, 2023, Lakeshore entered into a loan agreement with Deyin Chen (Bill) to which Lakeshore borrowed a principal amount of $125,000 with an annual interest rate of 8%. This loan was extended to March 11, 2024 with interest waived pursuant to a Side Letter to the loan agreements dated December 8, 2023. A payment of $75,000 was made upon close of the Merger on March 11, 2024 and the loan balance of $50,000 owed to Deyin Chen (Bill) was assigned to RedOne and the Company assumed the outstanding balance. The loan bears interest of 8% per annum. $50,000 was paid on July 29, 2024 and $150,000 was paid on November 11, 2024.

The balance of $230,000, originally due by December 11, 2024, was revised to be paid in two equal installments: the first installment of $115,000 no later than March 31, 2025, and the second installment of $115,000 no later than June 30, 2025. Both installments were extended to July 15, 2025, subsequently extended to September 10, 2025, and then extended to April 16, 2026.

(9) On June 6, 2024, the Merchants entered into a subordinated business loan and security agreement with Agile Capital Funding, LLC and Agile Lending, LLC for the principal amount of $288,750, including the administrative agent fee of $13,750. The Company agreed to pay a weekly installment of $15,056 for 28 weeks. The effective interest rate of this agreement was 90.22%. The collateral consists of the Company's right, title and interest in and to including the Company's financial assets, goods, accounts, equipment, inventory, contract rights or rights to payment of money. The Company received the net proceeds on June 7, 2024. For the year ended December 31, 2024, the Company paid $275,000 principal of the loan.

On September 25, 2024, the Merchants entered into another subordinated business loan and security agreement with Agile Capital Funding, LLC and Agile Lending, LLC for the principal amount of $315,000, including the administrative agent fee of $15,000. The Company agreed to pay a weekly installment of $16,425 for 28 weeks. The effective interest rate of this agreement was 90.22%. The Company used this loan to pay off $195,806 previous loan with Agile Capital Funding, LLC and Agile Lending, LLC that dated on June 6, 2024. For the year ended December 31, 2024, the Company paid $300,000 principal of the loan.

On November 21, 2024, the Merchants entered into another subordinated business loan and security agreement with Agile Capital Funding, LLC and Agile Lending, LLC for the principal amount of $575,000, including the administrative agent fee of $28,750. The Company agreed to pay a weekly installment of $29,982 for 28 weeks. The effective interest rate of this agreement was 90.80%. The Company used this loan to pay off $331,388 previous loan with Agile Capital Funding, LLC and Agile Lending, LLC dated on September 25, 2024. For the years ended December 31, 2025 and 2024, the Company paid $121,453 and $65,452 principal of the loan.

(10) On December 1, 2024, Visiontech and ClassicPlan Premium Financing, Inc., entered into a premium financing agreement with a total gross policy premium and related fees of $15,465 and financed $10,559 of it. Visiontech needs to pay a monthly installment of $1,286 for nine months with the last installment due on August 1, 2025. The effective interest rate of this loan was 22.57%. During the years ended December 31, 2025 and 2024, the Company paid $9,471 and $1,088 principal of the loan. The loan was paid off in August 2025.

(11) On December 30, 2024, the Merchants entered into a business loan and security agreement (the "Agreement") with Maximcash Solutions LLC (the "Maxim"). Under the Agreement, the Maxim loaned $311,000 to the Company, which includes an $11,000 origination fee deducted at the time of funding. This loan carries an interest rate of 51.64% and an annual percentage rate of 59.40%. The loan matures on January 14, 2026. The Company will repay the Loan in 26 biweekly payments of $15,430, with a total repayment amount of $401,190 over a 12-month term. The loan is secured by all present and after-acquired property of the Company. As security to the loan, the Company shall issue 311,000 shares of its common stock to Maximin in the event of a loan default. For the year ended December 31, 2025, the Company paid $215,752 principal of the loan. On July 8, 2025, Maxim filed a complaint against the Company in the Third Judicial Court of Utah pertaining to the loan agreement dated December 30, 2024 as a result of a failure to make the required repayment pursuant to the loan agreement. On August 6, 2025, the Company entered into a Standstill Agreement with Maxim, which expired on October 6, 2025 to further negotiate the term of the loan. On August 7, the Company wired an interest payment of $61,720 to Maxim as agreed in the Standstill Agreement. On December 16, 2025, pursuant to a post-judgment payment arrangement, Maxim agreed to accept a total settlement amount of $40,000 in cash and to retain the 311,000 shares previously received as collateral. The shares were valued at approximately $24,880 based on a fair value of $0.08 per share. The $40,000 lump sum payment was paid on December 17, 2025, and resulted in a gain on debt settlement of $79,920.

(12) On April 11, 2025, Zak Properties entered into a loan agreement with J.J. Astor & Co. ("JJ Astor"). Under the agreement, JJ Astor loaned $1,650,000 to Zak Properties, which included a $66,000 origination fee, a $99,000 debt broker fee, a $15,000 legal fee, and additional closing, title, and recording charges. The loan has a contractual maturity date of September 26, 2025. At closing, $480,000 of interest was withheld as an interest holdback and applied to the weekly payment structure. The effective interest rate was 43.39%. In January 2026, Zak Properties paid off the outstanding loan balance along with an additional $236,000 of interest. For the year ended December 31, 2025, Zak Properties made no principal payments on the loan.

(13) On October 8, 2025, Zak Properties entered into a loan agreement with Yan Li. Under the agreement, Yan Li loaned $1,000,000 to Zak Properties. The interest rate was 18.00% per annum and the maturity date was April 8, 2026. In January 2026, Zak Properties paid off the outstanding loan balance along with an additional $46,200 of interest. For the year ended December 31, 2025, Zak Properties made no principal payments on the loan.

Interest expense for short term loans amounted to $1,581,843 and $1,375,069 for the years ended December 31, 2025 and 2024, respectively.

Short-term loans — related parties: refer to Note 12 Related Party transactions.

<u>Long-term debts:</u>

Long-term debts consist of four auto loans, one building loan, and one secured business loan as of December 31, 2025 and 2024.

The outstanding amount of the auto loans were $113,668 and $80,238 as of December 31, 2025 and 2024, respectively. On February 27, 2021, the Company purchased a vehicle for $68,802 and financed $55,202 of the purchase price through an auto loan. The loan requires monthly installment payment of $1,014 with the last installment due on February 28, 2026. The Company subsequently sold the auto and paid off the loan on September 18, 2025. On June 8, 2021, the Company purchased the second vehicle for $86,114 and financed $73,814 of the purchase price through auto loan. The loan requires monthly installment payment of $1,172 with the last installment due on June 23, 2027. On September 28, 2022, the Company purchased the third vehicle for $62,230 and financed $56,440 of the purchase price through auto loan. The loan requires a monthly installment payment of $1,107 with the last installment due on September 28, 2027. On July 20, 2024, the Company purchased the fourth vehicle for $113,263 and financed $97,163 of the purchase price through auto loan. The loan requires a monthly installment payment of $2,403 with the last installment due on August 3, 2028. During the years ended December 31, 2025 and 2024, the Company made total payments of $57,718 and $34,382 towards the auto loans, respectively.

Minimum required principal payments towards the Company's auto loans as of December 31, 2025 are as follows:

---

| | |
|:---|:---|
| **Twelve months ended December 31,** | **Repayment** |
| 2026 | $52960 |
| 2027 | 42544 |
| 2028 | 18165 |
| Total | $113669 |

---

The outstanding amount of the building loan was $2,694,990 and $2,771,645 as of December 31, 2025 and 2024, respectively. On January 10, 2022, the Company purchased one building and land for $4,395,230 and financed $3,000,000 of the purchase price through Bank of the West. The loan requires monthly installment payments of $15,165 with the last installment due on January 10, 2032. During the years ended December 31, 2025 and 2024, the Company made total payments of $76,655 and $80,952 towards the loan, respectively.

Minimum required principal payments towards the Company's building loan as of December 31, 2025 are as follows:

---

| | |
|:---|:---|
| **Twelve months ended December 31,** | **Repayment** |
| 2026 | $86927 |
| 2027 | 90100 |
| 2028 | 93135 |
| Thereafter | 2424828 |
| Total | $2694990 |

---

The outstanding amount of the secured business loan was $3,059,858 and $3,127,742 as of December 31, 2025 and 2024, respectively. On June 14, 2023, the Company's subsidiaries Visiontech and Hydroman entered into a secured business loan agreement with Newtek Business Services Holdco 6, Inc. for a principal sum of up to $3,700,000 with a maturity date of July 1, 2033. The loan is secured by the Company's building and guaranteed by the Company's major stockholders. During the years ended of December 31, 2025 and 2024, the Company made total payments of $67,883 and $153,784 towards the loan, respectively.

Minimum required principal payments towards the Company's secured business loan as of December 31, 2025 are as follows:

---

| | |
|:---|:---|
| **Twelve months ended December 31,** | **Repayment** |
| 2026 | $326444 |
| 2027 | 251099 |
| 2028 | 295681 |
| 2029 | 348179 |
| Thereafter | 1838455 |
| Total | $3059858 |

---

Interest expenses for long term loans amounted to $817,939 and $633,089 for the years ended December 31, 2025 and 2024, respectively.

**Note 11 — Convertible notes**

The Company entered into a series of convertible note agreements with investors as described below. The Company also determined that the embedded conversions in the notes meets the scope exception to be considered indexed to a reporting's own stock based on the two-step approach in accordance with ASC 815-40-15 and does not require to be separately accounted for as a derivative. As a result, the Company classified all the convertible notes as a debt instrument in its entirely.

On July 3, 2024, the Company entered into four convertible note agreements total of $410,000 from four investors. Each note bears 12% interest per annum and matures in 6 months. The Company shall repay the principal and accumulated interest after six months. If the investors choose to convert, the number of shares will be calculated by dividing the principal plus accumulated interest by $13.26. On November 19, 2024, the Company entered into four debt-to-equity conversion agreements, under which four investors agreed to convert a total of $410,000 into 155,303 shares of the Company's common stock at a conversion price of $2.64 per share. However, the Company failed to complete the registration of the converted shares within 45 calendar days as require by the conversion agreements, the investors has elected to decline the conversion and has elected to reinstate the original debt liability in accordance with the original agreement and extended the maturity date to June and September 2025, with two maturing in each month, subsequently extended to July 11, 2026. The balance of these Notes are $410,000 and $410,000 as of December 31, 2025 and 2024.

On July 17, 2024, the Company entered into a securities purchase agreement with a certain investor pursuant to which the Company sold, in a private placement, a $180,000 convertible note with an original issue discount of $27,500, and a warrant to purchase up to 7,250 shares of common stock at an exercise price of $26.10 per share. The interest on the note was 12% per annum and the maturity date of the note was 12 months from July 17, 2024. The note can be converted into a fixed price of $12.00 per share. As consideration for entering into the securities purchase agreement, the Company issued a total of 6,000 shares to the investor on July 19, 2024. The warrant was exercisable on July 17, 2024 until five years from July 17, 2024. Approximately $58,090 from the convertible note proceeds was allocated to issuance of ordinary shares and warrants based on relative fair value. On July 30, 2024, the note was terminated as a result of the Company's full payment of the note's principal and accrued interest in the total amount of $212,400. As a result, all obligations under the note have been satisfied, and the note is no longer outstanding.

On August 13, 2024, the Company entered a securities purchase agreement with 1800 Diagonal Lending LLC ("Diagonal"), in connection with the issuance of a promissory note in the aggregate principal amount of $181,700, including an original issue discount of $23,700, closing expenses of $8,000 deducted from funding amount. The maturity date was June 15, 2025 and the interest rate of the note was 12% per annum. The initial funding was scheduled to be paid in 10 equal monthly installments of $20,350. Only upon an occurrence of an event of default under the note, the holder may convert the outstanding unpaid principal amount of the note into shares of common stock of the Company at a discount of 25% of the market price. As of December 31, 2025 and 2024, the balance of this note was $0 and $92,045.

On September 18, 2024, the Company entered into another securities purchase agreement with Diagonal pursuant to which the Company sold to the Diagonal a convertible promissory note in the aggregate principal amount of $107,880 with an original issue discount of $14,880. The note bears a one-time interest charge of 13% and maturity date was July 15, 2025. Accrued, unpaid interest and outstanding principal, subject to adjustment, is required to be paid in five payments, with the first payment of $60,952 due on March 15, 2025, and the remaining four payments of $15,238 due on the fifteenth day of each month thereafter. Only upon an occurrence of an event of default under the note, the holder may convert the outstanding unpaid principal amount of the note into shares of common stock of the Company at a discount of 25% of the market price. On May 5, May 9, and June 4, 2025, an aggregate of $22,160, $22,160 and $5,894 of convertible note principal and accrued interest were converted into 295,466, 295,466 and 148,090 shares of common stock, respectively. As of December 31, 2025 and 2024, the balance of this note was $0 and $85,000.

On October 14, 2024, the Company issued and sold to Diagonal a promissory note in the principal amount of $101,200 (reflecting a purchase price of $88,000 and an original issue discount of $13,200). The note bears a one-time interest charge of 14% of the principal amount. Accrued, unpaid interest and outstanding principal will be due in ten payments, each in the amount of $11,537. The first payment will be due November 15, 2024 with nine subsequent payments due on the 15th of each month thereafter. Only upon occurrence of an event of default under the note, the note will be convertible into common stock at a conversion price equal to 75% multiplied by the lowest trading price for the common stock during the ten trading days prior to the conversion date. On June 5, June 10, and June 12, 2025, an aggregate of $13,890, $13,590 and $11,630 of convertible note principal and accrued interest were converted into 324,912, 348,461 and 298,215 shares of common stock, respectively. As of December 31, 2025 and 2024, the balance of this note was $0 and $65,182.

On November 18, 2024, the Company signed one convertible note agreement of $90,000 from one investor. The note bears 12% interest per annum and matures in 6 months. The Company shall repay the principal and accumulated interest after six months. If the investors choose to convert, the number of shares will be calculated by dividing the principal plus accumulated interest by $29.31. On November 19, 2024, the Company entered into a debt-to-equity conversion agreement, under which the investor agreed to convert the $90,000 into 34,091 shares of the Company's common stock at a conversion price of $2.64 per share. However, the Company failed to complete the registration of the converted shares within 45 calendar days as required by the conversion agreements, the investors has elected to decline the conversion and has elected to reinstate the original debt liability in accordance with the original agreement and extended the maturity date to September 2025, then subsequently extended to July 11, 2026. As of December 31, 2025 and 2024, the balance of this note was $90,000 and $90,000.

On December 17, 2024, the Company entered into a securities purchase agreement with a certain investor pursuant for a $180,000 convertible note with an original issue discount of $20,000. The note bears an annual rate of 12% and the maturity date of this note shall be December 17, 2025. The note can be converted into a fixed price of $2.50 per share. Net proceeds to the Company amounted to $150,000 (after deducting the fee paid to escrow agent of $10,000). The Company has also agreed to issue 118,000 shares of common stock for commitment fee, and a warrant to purchase up to 138,462 shares of common stock. As of December 31, 2024, the balance of this note was $164,483 and the shares and warrants were not issued. On January 21, 2025, the Company and investor mutually rescinded the above note and released the Company from all of its obligations. The Company returned the $160,000 to the investor on January 15, 2025. The Company recognized the difference between the debt's reacquisition price of $160,000 and net carrying amount of $180,000 and recognized $0 and $20,000 as a gain for the year ended December 31, 2025.

On December 12, 2024, the Company entered into a convertible promissory note with Diagonal in the principal amount of $101,200 (reflecting a purchase price of $88,000 and an original issue discount of $13,200). The note bears 14% interest per annum and maturity date is December 15, 2025. Only upon an occurrence of an event of default under the note, the holder may convert the outstanding unpaid principal amount of the note into shares of common stock of the Company at a discount of 25% of the market price. On June 20, 2025, an aggregate of $14,850 of convertible note principal and accrued interest were converted into 380,769 shares of common stock. In July 2025, an aggregate of $109,587 of convertible note principal and accrued interest were converted into 3,867,938 shares of common stock. As of December 31, 2025 and 2024, the balance of this note was $0 and $80,929.

On March 26, 2025, the Company signed a convertible note with Black Ice Advisors, LLC, face value of the note is $111,111, interest at 10%. The maturity date of this note was on March 26, 2026. Principal and accrued interest can be converted into shares of common stock of the Company at a 35% discount to lowest trading price with a 20 day look back. The note can be prepaid within 6 months at 120% of principal and accrued interest. The net funds provided was $95,000 after deducting legal fees. As of December 31, 2025, the principal and accrued interest of the note were paid off.

On May 7, 2025, the Company entered into another securities purchase agreement with Diagonal pursuant to which the Company sold to the Diagonal a convertible promissory note in the aggregate principal amount of $140,250 with an original issue discount of $12,750 and closing expenses of $7,500 deducted from funding amount. The note bears an annual interest charge of 14% and maturity date was February 28, 2026. Only upon an occurrence of an event of default under the note, the holder may convert the outstanding unpaid principal amount of the note into shares of common stock of the Company at a discount of 35% of the market price. As of December 31, 2025, the balance of this note was $0.

On June 10, 2025, the Company entered into another securities purchase agreement with Diagonal pursuant to which the Company sold to the Diagonal a convertible promissory note in the aggregate principal amount of $126,260 with an original issue discount of $19,260 and closing expenses of $7,000 deducted from funding amount. The note bears an annual interest charge of 12% and maturity date was August 15, 2026. Only upon an occurrence of an event of default under the note, the holder may convert the outstanding unpaid principal amount of the note into shares of common stock of the Company at a discount of 35% of the market price. As of December 31, 2025, the principal and accrued interest of the note were paid off.

During the third and fourth quarters of 2025, the Company entered into another five securities purchase agreements with Diagonal pursuant to which the Company issued the following convertible promissory notes to the Diagonal: i) principal amount of $97,350 issued on July 23, 2025 with an original issue discount of $14,850 and closing expenses of $7,500 deducted from funding amount, which bears an annual interest charge of 12% and matures on April 30, 2026. Only upon an occurrence of an event of default under the note, the holder may convert the outstanding unpaid principal amount of the note into shares of common stock of the Company at a discount of 39% of the market price. As of December 31, 2025, the principal and accrued interest of the note were paid off; ii) principal amount of $90,200 issued on July 30, 2025 with an original issue discount of $8,200 and closing expenses of $7,000 deducted from funding amount, which bears an annual interest charge of 14% and matures on May 30, 2026. Only upon an occurrence of an event of default under the note, the holder may convert the outstanding unpaid principal amount of the note into shares of common stock of the Company at a discount of 39% of the market price. As of December 31, 2025, the balance of this note was $82,700; iii) principal amount of $155,610 issued on September 19, 2025 with an original issue discount of $22,610 and closing expenses of $8,000 deducted from funding amount, which bears an annual interest charge of 13% and matures on July 30, 2026. Only upon an occurrence of an event of default under the note, the holder may convert the outstanding unpaid principal amount of the note into shares of common stock of the Company at a discount of 35% of the market price. As of December 31, 2025, the balance of this note was $135,041; iv) principal amount of $112,800 issued on October 1, 2025 with an original issue discount of $18,800 and closing expenses of $9,000 deducted from funding amount. The note bears an annual interest charge of 15% and maturity date of June 30, 2026. Only upon an occurrence of an event of default under the note, the holder may convert the outstanding unpaid principal amount of the note into shares of common stock of the Company at a discount of 39% of the market price. As of December 31, 2025, the balance of this note was $56,701; v) principal amount of $126,360 issued on December 10, 2025 with an original issue discount of $18,360 and closing expenses of $8,000 deducted from funding amount. The note bears an annual interest charge of 13% and maturity date of September 15, 2026. Only upon an occurrence of an event of default under the note, the holder may convert the outstanding unpaid principal amount of the note into shares of common stock of the Company at a discount of 35% of the market price. As of December 31, 2025, the balance of this note was $101,984.

During the third quarter of 2025, the Company entered into the following two convertible promissory notes with CFI Capital LLC: i) principal amount of $120,000 issued on July 10, 2025 with an original issue discount of $12,000 and closing expenses of $4,000 deducted from funding amount. The note bears 6% interest per annum and matures on July 10, 2026, and ii) principal amount of $130,000 issued on September 18, 2025 with an original issue discount of $13,000 and closing expenses of $4,000 deducted from funding amount. The note bears 6% interest per annum and matures on September 18, 2026. Principal and accrued interest can be converted into shares of common stock of the Company at a 40% discount to lowest trading price with a 15 day look back at any time after the sixth monthly anniversary of these two convertible notes. The notes can be prepaid within 6 months at 105% of principal and accrued interest. As of December 31, 2025, the aggregate balance of the two convertible promissory notes was $111,627 and $117,844.

On July 30, 2025, the Company entered into a securities purchase agreement with Labrys Fund II, L.P., pursuant to which the Company sold to Labrys Fund II, L.P. a convertible promissory note in the aggregate principal amount of $230,000 with an original issue discount of $30,000 and closing expenses of $4,250 deducted from funding amount. The note bears an annual interest charge of 14% and matures on July 30, 2026. Only upon an occurrence of an event of default under the note, the holder may convert the outstanding unpaid principal amount of the note into shares of common stock of the Company at a discount of 25% of the market price. As of December 31, 2025, the balance of this note was $187,097.

On August 5, 2025, the Company entered into a securities purchase agreement with FirstFire Global Opportunities Fund LLC, pursuant to which the Company sold a convertible promissory note in the aggregate principal amount of $172,500 with an original issue discount of $22,500 and closing expenses of $6,000 deducted from funding amount. The note bears an annual interest charge of 10% and matures on August 5, 2026. As consideration for entering into the securities purchase agreement, the Company issued a total of 200,000 shares to the investor on August 5, 2025. Principal and accrued interest can be converted into shares of common stock of the Company at a 25% discount to lowest trading price with a 10 day look back at any time on or following the issue date of the convertible note. As of December 31, 2025, the balance of this note was $137,622.

On August 4, 2025, the Company entered into a securities purchase agreement with AES Capital Management LLC, pursuant to which the Company sold a convertible promissory note in the aggregate principal amount of $37,500 with an original issue discount of $3,750 and closing expenses of $3,000 deducted from funding amount. The note bears an annual interest charge of 8% and matures on August 4, 2026. Principal and accrued interest can be converted into shares of common stock of the Company at a 40% discount to lowest trading price with a 15 day look back at any time after the sixth monthly anniversary of the convertible note. As of December 31, 2025, the balance of this note was $33,505.

On August 4, 2025, the Company entered into a securities purchase agreement with Lambda Venture Partners LLC, pursuant to which the Company sold a convertible promissory note in the aggregate principal amount of $82,500 with an original issue discount of $7,250 and closing expenses of $3,000 deducted from funding amount. The note bears an annual interest charge of 8% and matures on August 4, 2026. Principal and accrued interest can be converted into shares of common stock of the Company at a 35% discount to the average of the three lowest trading prices with a 10 day look back at any time on or following the issue date of the convertible note. As of December 31, 2025, the balance of this note was $76,286.

On August 15, 2025, the Company entered into a securities purchase agreement with Actus Fund LLC, pursuant to which the Company sold a convertible promissory note in the aggregate principal amount of $100,000 with closing expenses of $9,000 deducted from funding amount and a warrant to purchase up to 500,000 shares of common stock at an exercise price of $0.20 per share. The note bears an annual interest charge of 12% and matures on August 15, 2026. The warrant was exercisable from August 15, 2025 through August 15, 2030. Approximately $46,664 from the convertible note proceeds was allocated to the issuance of warrants based on relative fair value. Principal and accrued interest can be converted into shares of common stock of the Company at a 30% discount to the volume-weighted average price of a 5 day look back at any time on or following the issue date of the convertible note. As of December 31, 2025, the balance of this note was $65,381.

On October 16, 2025, the Company entered into a securities purchase agreement with AES Capital Management LLC, pursuant to which the Company sold a convertible promissory note in the aggregate principal amount of $37,500 with an original issue discount of $3,750 and closing expenses of $1,500 deducted from funding amount. The note bears an annual interest charge of 8% and matures on October 16, 2026. Principal and accrued interest can be converted into shares of common stock of the Company at a 40% discount to lowest trading price with a 15 day look back at any time after the sixth monthly anniversary of the convertible note. As of December 31, 2025, the balance of this note was $33,343.

On December 10, 2025, the Company entered into a securities purchase agreement with Boot Capital LLC, pursuant to which the Company sold a convertible promissory note in the aggregate principal amount of $58,500 with an original issue discount of $8,500 deducted from funding amount. The note bears an annual interest charge of 13% and matures on September 15, 2026. Principal and accrued interest can be converted into shares of common stock of the Company at a 35% discount to lowest trading price with a 10 day look back at any time after the sixth monthly anniversary of the convertible note. As of December 31, 2025, the balance of this note was $52,050.

On December 26, 2025, the Company entered into a securities purchase agreement with Quick Capital, LLC, pursuant to which the Company sold a convertible promissory note in the aggregate principal amount of $55,556 with an original issue discount of $5,556 and closing expenses of $4,500 deducted from funding amount. The note bears an annual interest charge of 12% and matures nine months from the issuance date. The principal and accrued interest are convertible into shares of the Company's common stock at a conversion price equal to a 30% discount to the lowest trading price during the 20 trading days preceding the conversion date. The funding was received in January 2026. As of December 31, 2025, there was no outstanding balance under the note.

On December 29, 2025, the Company entered into a securities purchase agreement with AES Capital Management LLC, pursuant to which the Company sold a convertible promissory note in the aggregate principal amount of $37,500 with an original issue discount of $3,750 and closing expenses of $1,500 deducted from funding amount. The note bears an annual interest charge of 8% and matures on December 29, 2026. Principal and accrued interest can be converted into shares of common stock of the Company at a 40% discount to lowest trading price with a 15 day look back at any time after the sixth monthly anniversary of the convertible note. The funding was received in January 2026. As of December 31, 2025, the balance of this note was $0.

Interest expense in connection with the convertible notes for the year ended December 31, 2025 and 2024 amounted to $628,497 and $196,373.

**Note 12 — Related party transactions**

<u>Purchases and accounts payable – related parties:</u>

On April 11, 2023, one of the Company's customers and vendors, Iluminar Lighting LLC ("Iluminar") entered into Debt Conversion Agreement with the Company pursuant to which it will convert $1,000,000 of accounts receivable to 1,033,333 shares of Iluminar which is 10% of Iluminar's outstanding shares. For the years ended December 31, 2025 and 2024, the purchases made from Iluminar were $58,030 and $56,671, respectively. As of December 31, 2025 and 2024, the accounts payable amount due to Iluminar was $366,437 and $308,407, respectively.

<u>Revenue and accounts receivable - related party:</u>

During the years ended December 31, 2025 and 2024, the sales revenue from Iluminar was $76,038 and $1,593,926, respectively. As of December 31, 2025 and 2024, the account receivable, net from Iluminar was nil and $976,449, respectively.

<u>Prepayments - related party:</u>

As of December 31, 2025 and 2024, the prepayments from Jonathan was nil and $10,000, respectively.

<u>Loan receivable – related party:</u>

As of December 31, 2025 and 2024, loan receivable from Big Lake amounted to $605,000 and nil, respectively. The receivable relates to a promissory note dated April 11, 2025, issued to Big Lake, which bears interest at 0% per annum and matures on June 30, 2026. The promissory note includes a debt-forgiveness provision whereby the outstanding principal may be forgiven if the borrower invests an amount equal to or greater than the loan proceeds into the Company. If such condition is met, the borrower will have no further repayment obligation under the note.

<u>Deferred income – contract liabilities - related party:</u>

As of December 31, 2025 and 2024, the deferred income - contract liabilities from Iluminar was $86,468 and $86,468, respectively.

<u>Other payables — related parties</u>

In 2022, Nature's Miracle Inc. (Cayman) ("NMCayman"), former stockholders of NMI, currently under common control of Mr. Tie (James) Li, the Company's CEO, paid a total amount of $345,000 of legal and audit fees for the Company. As of December 31, 2025 and 2024, the outstanding amount due to NMCayman was $170,000 and $170,000, respectively.

In 2021, Yang Wei, former shareholder of the Visiontech and current shareholder of the Company, paid a total amount of $23,813 of normal business operating fee for the Company. As of December 31, 2025 and 2024, the outstanding amount due to Yang Wei was $20,813 and $23,813, respectively.

In 2022, Zhiyi (Jonathan) Zhang, paid a total amount of $27,944 of normal business operating fee for the Company. On May 19, 2023, September 4, 2023, and July 1, 2024, Zhiyi (Jonathan) Zhang paid another $1,000, $557, $8,184 for normal business operating expenses, respectively. Furthermore, in 2024, Mr. Zhang contributed an additional $10,936 toward Company expenses. On October 11, 2023, the Company paid off $28,501 of the balance. In 2025, the Company paid another $3,000 of the balance. As of December 31, 2025 and 2024, the outstanding amount due to Zhiyi (Jonathan) Zhang was $26,533 and $20,120.

In September 2024, James Li paid a total amount of $30,000 of normal business operating fee for the NMCA and NMCA paid it back to James in November 2024. In 2025, James Li paid $6,300 of normal business operating fee for NMCA and NMCA paid it back in 2025, as of December 31, 2025, the outstanding amount due to James Li was nil.

For the year ended December 31, 2025, Nature's Miracle Holding Inc. has an outstanding amount due to Mr. Tie (James) Li and Zhiyi (Jonathan) Zhang for $25,100 and $25,000 of board fees.

For the year ended December 31, 2025, NMI has an outstanding amount due to Mr. Tie (James) Li for $9,360 of operating expenses.

As of December 31, 2025 and 2024, accrued interest expense from related parties, were $125,207 and $103,776, respectively, which were included in other payable - related parties on the Company's balance sheets. (see Short-term loans — related parties for detail).

<u>Short-term loans — related parties</u>

---

| | | |
|:---|:---|:---|
|  | **As of <br> December 31,<br> 2025** | **As of<br> December 31,<br> 2024** |
| Zhiyi Zhang <sup>(1)</sup> | $60000 | $60000 |
| Tie Li <sup>(2)</sup> | 85000 | 185000 |
| NMCayman <sup>(3)</sup> | - | 35755 |
| Big Lake<sup>(4)</sup> | 49000 | - |
| Total short-term loans – related parties | $194000 | $280755 |

---

(1) On November 29, 2022, Visiontech signed a loan with Zhiyi (Jonathan)
Zhang, one of the stockholders of the Company, for the principal amount of $100,000 with 8% interest rate. This loan is originally required
to be paid in full before May 29, 2023, the Company initially extended it to November 15, 2023, further extended to February 15,
2024, subsequently further extended to August 15, 2024, April 15, 2025 and October 16, 2025 and finally extended to December 1, 2025.
During the year ended December 31, 2023, the Company paid $40,000 to Zhiyi Zhang. The loan balance as of December 31, 2025 and 2024 was
$60,000 and $60,000. As of December 31, 2025 and 2024, the accrued interest of this loan was $17,053 and $12,079, respectively. As of
the submission date, this loan has not been extended. Mr. Zhang recently resigned as President and Director and has not finalized a repayment
plan with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;(2) In December 2022, the Company signed two loans with Tie (James) Li, the Company's CEO, for the total principal amount of $610,000 with 8% interest rate. This loan is originally required to be paid in full before June 1, 2023, the Company initially extended it to November 15, 2023. The Company made $500,000 payments towards the loan on June 16, 2023 and paid $50,000 on July 29, 2024. The $110,000 loan was further extended to February 15, 2024, subsequently extended to August 15, 2024 and April 15, 2025, and finally extended to October 16, 2025. The loan balance as of December 31, 2025 and 2024 was $0 and $60,000, respectively. The accrued interest of this loan as of December 31, 2025 and 2024 was $1,012 and $547, respectively.

On July 11, 2023, Lakeshore signed one loan with Tie (James) Li for a principal amount of $125,000 with 8% interest rate. This loan was required to be paid in full before November 11, 2023. On December 8, 2023, Lakeshore entered into a side letter to this loan agreement to extend the repayment to March 11, 2024 and agree to waive any and all interest and penalties that may have accrued commencing on November 11, 2023. This loan was subsequently extended to September 15, 2024 and April 15, 2025, and finally extended to October 16, 2025. The loan balance as of December 31, 2025 and 2024 was $0 and $125,000, respectively. As of December 31, 2025 and 2024, accrued interest of this loan was $3,512 and $2,521.

In December 18, 2025, the Company signed one loan with Tie (James) Li for the principal amount of $70,000 with 5% interest rate. This loan is required to be paid in full before May 16, 2026. The loan balance as of December 31, 2025 was $70,000. The accrued interest of this loan as of December 31, 2025 was $134.

In December 30, 2025, the Company signed one loan with Tie (James) Li for the total principal amount of $15,000 with 5% interest rate. This loan is required to be paid in full before April 1, 2026, and then extended to May 16, 2026. The loan balance as of December 31, 2025 was $15,000. The accrued interest of this loan as of December 31, 2025 was $0.

(3) On January 17, 2023, the Company and NMCayman entered into a loan agreement for the principal amount of $318,270 with 8% interest rate. This loan is originally required to be paid in full before July 17, 2023, the Company initially extended it to November 15, 2023, further extended to February 15, 2024, subsequently extended to August 15, 2024, and finally extended to April 15, 2025. On November 19, 2024, the Company entered into a debt-to-equity conversion agreement with NMCayman, under which $299,714 balance of this debt and $277,786 balance of another debt (see below) will be converted into 218,750 shares of common stock for James at a conversion price of $2.64 per share. On July 31, 2025, the Company paid off remaining balance. As of December 31, 2025 and 2024, the loan balance was $0 and $18,556, respectively. As of December 31, 2025 and 2024, accrued interest of this loan was $47,042 and $46,180, respectively.

On January 17, 2023, the Company and NMCayman entered into a loan agreement for the principal amount of $294,985 with 8% interest rate. This loan is originally required to be paid in full before July 17, 2023, the Company initially extended it to November 15, 2023, further extended to February 15, 2024, subsequently extended to August 15, 2024, and finally extended to April 15, 2025. On November 19, 2024, the Company entered into a debt-to-equity conversion agreement with NMCayman, under which $277,786 balance of this debt and $299,714 balance of another debt will be converted into 218,750 shares of common stock for James at a conversion price of $2.64 per share. On July 31, 2025, the Company paid off remaining balance. As of December 31, 2025 and 2024, the loan balance was $0 and $17,199, respectively. As of December 31, 2025 and 2024, the accrued interest of this loan was $43,249 and $42,449, respectively.

(4) In December 22, 2025, the Company signed a loan agreement with Big Lake Capital, LLC for a total principal amount of $49,000 with a 10% interest rate. The loan is unsecured and accrues interest from December 22, 2025. The Company is required to repay the loan in full by June 22, 2026. All payments are applied first to accrued interest and then to principal. In the event of default, the outstanding principal and accrued interest may be accelerated and become immediately due at the lender's option. Additionally, the loan includes a debt forgiveness provision, whereby the loan may be forgiven in full if the Company invests an amount equal to or greater than the loan proceeds into the Company. The loan balance as of December 31, 2025 was $49,000, and the accrued interest as of December 31, 2025 was 121.

Interest expense for short-term loans - related parties amounted to $8,173 and $61,597 during the years ended December 31, 2025 and 2024, respectively.

<u>Convertible notes — related party</u>

On April 11, 2025, the Company signed a convertible promissory note agreement with Big Lake. Big Lake is a related party controlled by Tie "James" Li, Chairman and CEO of the Company. The agreement calls for up to $2,000,000 in financing with an initial tranche of $600,000. The amount funded can be converted into shares of the Company at a conversion price equal to 110% of the end of the trading date. The rate of interest is 10% and the note matures in one year. As consideration for entering into the convertible promissory note agreement, the Company issued warrants to purchase up to 10,101,010 shares of common stock at an exercise price the same as conversion price of $0.198 - the price equal to 110% of the reported closing price of the Company's Common Stock on the closing date of the Initial Tranche, if the Company draws down the full amount of the note. As of December 31, 2025, the balance of this note was $64,414 and the balance of accrued interest was $39,662.

In connection with the acquisition of Zak Properties as stated in Note 6 – Asset acquisition under common control, the Company issued a convertible promissory note in the aggregate principal amount of $3,000,000 as consideration of the acquisition of Zak Properties. The note bears an annual interest charge of 10% with a maturity date of September 18, 2027. Principal and accrued interest can be converted into shares of common stock of the Company at a 20% discount to lowest trading prices with a 20 day look back at any time on or following the issue date of the convertible note. As of December 31, 2025, the balance of this note was $3.0 million and the balance of accrued interest was $86,301.

Interest expense for convertible notes - related party amounted to $313,305 and nil during the years ended December 31, 2025 and 2024, respectively.

**Note 13 — Income taxes**

The provision for income taxes for the years ended December 31, 2025 and 2024 consisted of the following:

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| | | |
|:---|:---|:---|
|  | **December 31, <br> 2025** | **December 31,<br> 2024** |
| Income Tax Expense |  |  |
| &nbsp;&nbsp;&nbsp;Current federal tax expense |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State | 1700 | 5100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign | - | - |
| &nbsp;&nbsp;&nbsp;Deferred tax |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign | - | - |
| &nbsp;&nbsp;&nbsp;Total | $1700 | $5100 |

---

The components of loss before income taxes attributable to domestic and foreign operations for the years ended December 31, 2025 and 2024 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2025** | **December 31,<br> 2024** |
| Loss before income taxes |  |  |
| Current federal tax expense |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Domestic income | $11985054 | $13648240 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign income | - | - |
| &nbsp;&nbsp;&nbsp;Total loss before taxes | $11985054 | $13648240 |

---

The Company is subject to U.S. federal income tax as well as income tax of state tax jurisdictions. The following is a reconciliation of income tax expenses at the effective rate to income tax at the calculated statutory rates:

---

| | |
|:---|:---|
|  | **For the Year Ended<br> December 31, 2025** |
|  | **%** |
| Provision for income taxes at U.S. federal statutory rate | 21.00% |
| State and local income taxes, net of federal benefit<sup>(1)</sup> | 6.47 |
| Change in valuation allowance) | (27.37) |
| Tax effect of non- deductible expenditure) | (0.11) |
| &nbsp;&nbsp;&nbsp;Total tax provision and effective tax rate) | (0.01)% |

---

---

| | |
|:---|:---|
|  | **For the Year Ended<br> December 31, 2024** |
|  | **%** |
| Provision for income taxes at U.S. federal statutory rate | 21.00% |
| State and local income taxes, net of federal benefit<sup>(1)</sup> | 6.90 |
| Change in valuation allowance) | (27.83) |
| Tax effect of non- deductible expenditure) | (0.11) |
| &nbsp;&nbsp;&nbsp;Total tax provision and effective tax rate) | (0.04)% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) State taxes in California, Ohio and Delaware made up the majority (greater
than 50%) of the tax effect in this category.

As of December 31, 2025 and 2024 the income tax payable was $299,020 and $297,991, respectively, and the net deferred tax asset was $0 and $0, respectively.

The supplemental schedule of cash paid for interest and income taxes consists of following:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2025** | **December 31,<br> 2024** |
| Cash paid during the period of income taxes, net of refunds |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and local | 1700 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign | - | - |
| &nbsp;&nbsp;&nbsp;Total cash paid during the period for income taxes | $1700 | $— |
| Cash paid during the period for income taxes (prior to ASU 2023-09) | $— | $5100 |

---

The significant components that comprised the Company's net deferred taxes are as follows:

---

| | | |
|:---|:---|:---|
|  | **As of <br> December 31, <br> 2025** | **As of <br> December 31, <br> 2024** |
| Deferred tax assets/(liabilities) |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment | (70758) | (70758) |
| &nbsp;&nbsp;&nbsp;Right-of-use assets | 65189 | 66063 |
| &nbsp;&nbsp;&nbsp;Allowance for credit loss | 950674 | 441890 |
| &nbsp;&nbsp;&nbsp;Inventory impairment | 1046087 | 1003122 |
| &nbsp;&nbsp;&nbsp;Cost method investment impairment | 279836 | - |
| &nbsp;&nbsp;&nbsp;Net operating loss – federal | 6527196 | 4237504 |
| &nbsp;&nbsp;&nbsp;Less: valuation allowance | (8798224) | (5677821) |
| Total deferred tax assets/(liabilities) | - | - |

---

The Company's cumulative net operating loss ("NOL") of approximately $26.0 million as of December 31, 2025 was mainly from NOL of Nature's Miracle, Visiontech and Nature's Miracle Holding Inc.. The Company evaluated the recoverable amounts of deferred tax assets and provided a valuation allowance to the extent that future taxable profits will be available against which the net operating loss and temporary difference can be utilized. The Company considers both positive and negative factors when assessing the future realization of the deferred tax assets and applied weigh to the relative impact of the evidence to the extent it could be objectively verified.

**Note 14 — Series A, D, and F preferred shares subject to possible redemption**

On May 7, 2025, the Company entered into a Securities Purchase Agreement (the "SPA") where the Company sold to GHS Investments, LLC, a Nevada limited liability company (the "Investor") 250 shares of Series A Preferred Stock, $0.0001 par value per share (the "Series A Shares") at a purchase price of $1,000 per Series A Share for an aggregate purchase price of $250,000. The Series A Shares have a face value of $1,200 per share and are convertible into shares of Common Stock (the "Conversion Shares") at a conversion price of $0.112 in accordance with the certificate of designations to be filed with the State of Delaware. The Series A Shares carry cumulative dividends of twelve percent (12%) per annum, payable quarterly. On the earlier of the (1) 120th calendar day following the Closing and (2) the date the Common Stock is listed on a national exchange (the "<u>Corporation Redemption Payment Date</u>"), the Corporation shall have the obligation to redeem the preferred stock for an amount equal to 100% of the outstanding stated value of the preferred stock, plus any accrued but unpaid dividends, plus all other amounts due to the Holder.

On September 19, 2025, the Company entered into a Securities Purchase Agreement (the "Purchase Agreement") with Y. K. Capital Management, Inc. (the "Series D Investor"), whereby the Series D Investor agreed to purchase 2,000 shares of Series D preferred stock, $0.0001 par value per share (the "Series D Shares"), at a purchase price of $1,000 per Series D Share. On the initial closing, the Series D Investor purchased five hundred (500) Series D Shares for a purchase price of $500,000. The second closing will be for the purchase of five hundred (500) Series D Shares for the aggregate purchase price of $500,000 before October 30, 2025 and the third and final closing will be for the purchase of one thousand (1,000) Series D Shares for the aggregate purchase price of $1,000,000 prior to the Company's application for uplisting to the NYSE or Nasdaq.

The Series D Shares have a stated value of $1,000 per share (the "Stated Value") and shall bear dividends at the rate of 8% per annum, for so long as the Series D Shares have not been redeemed or converted. The Series D Shares are convertible into shares of Common Stock of the Company at a conversion price of $0.1180 (the "Conversion Price") as set forth in in the Certificate of Designations, to be filed with the State of Delaware (the "Certificate of Designations"). The Series D Investor shall not convert into Common Stock any amount of Series D Shares which would render the holder having more than 4.99% of the total outstanding shares of common stock of the Company. On the earlier of the (1) 120th calendar day following the Closing and (2) the date the Common Stock is listed on a national exchange (the "<u>Corporation Redemption Payment Date</u>"), the Corporation shall have the obligation to redeem the Preferred Stock for an amount equal to 100% of the outstanding Stated Value of the Preferred Stock, plus any accrued but unpaid dividends, plus all other amounts due to the Holder.

On October 10, 2025, the Company entered into another Securities Purchase Agreement (the second SPA) with the Investor, whereby the Investor agreed to purchase 50 shares of the Company's existing Series A Shares, in consideration of the Series A Investor's consent for the Company to enter into previously disclosed transactions including: (A) creating the Series B Convertible Preferred Stock, Series C Convertible Preferred Stock and Series D Convertible Preferred Stock, (B) issuing 5,000 shares of the Series B Stock (which contain 20-1 super voting rights), 9,500 shares of the Series C Stock in a transaction pursuant to which the Company will acquire certain assets owned by James Li, the Company's Chief Executive Officer, and (C) issuing a convertible promissory note in favor of an affiliate of James Li in the aggregate principal amount of $3,000,000.

The Series A Shares have a stated value of $1,200 per share, and bear dividends at the rate of 12% per annum, for so long as the Series A Shares have not been redeemed or converted. The Series A Shares are convertible into shares of Common Stock of the Company at a conversion price of $0.112.

On October 29, 2025, the Company entered into a Securities Purchase Agreement with a third party ("Series F Investor"), whereby the Series D Investor agreed to purchase 500 shares of Series F preferred stock, $0.0001 par value per share (the "Series F Shares"), at a purchase price of $1,000 per Series F Share. On the initial closing, the Series F Investor purchased five hundred (500) Series F Shares for a purchase price of $500,000. As of December 31, 2025, the Company had received $450,000 of the purchase proceeds; however, no Series F Shares had been issued as of that date, and the amount received is presented as redeemable convertible stock on the consolidated balance sheets.

The Series F Shares have a stated value of $1,000 per share, and bear dividends at the rate of 8% per annum, for so long as the Series F Shares have not been redeemed or converted. The Series F Shares are convertible into shares of Common Stock of the Company at a conversion price of $0.2813.

The Company accounts for its Series A, D, and F preferred shares in accordance with the guidance in ASC Topic 480, "Distinguishing Liabilities from Equity" (ASC 480). Series A, D, and F preferred shares subject to mandatory redemption (if any) will be classified as a liability instrument and will be measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that features redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company's control) will be classified as temporary equity. At all other times, ordinary shares will be classified as shareholders' equity. In accordance with ASC 480-10-S99, the Company classifies the Series A, D, and F preferred shares outside of permanent equity as the shares are subject to possible redemption after 120 days of closing. The Company recorded the Series A, D, and F preferred shares as temporary equity with accrued dividend included in redemption value.

As of December 31, 2025, the Series A, D, and F preferred shares subject to possible redemption reflected in the consolidated balance sheets are reconciled in the following table:

---

| | |
|:---|:---|
| Beginning as of January 1, 2025 | $- |
| Series A preferred shares | 278800 |
| Series D preferred shares | 700000 |
| Series F preferred shares | 450000 |
| Shares issuance cost | (12000) |
| Cumulative dividend | 41433 |
| Balance as of December 31, 2025 | $1458233 |

---

On October 28, 2025, the Investor converted 46 Series A preferred shares into 690,000 shares of common stock at a conversion price of $0.08 per share.

**Note 15 — Equity**

<u>Reverse recapitalization</u>

The total number of shares which the Company shall have the authority to issue is one thousand and one million (1,001,000,000) shares of two classes of capital stock to be designated respectively preferred stock ("Preferred Stock") and common stock ("Common Stock"). The total number of shares of Common Stock the Company shall have authority to issue is 1,000,000,000 shares, par value $0.0001 per share. The total number of shares of Preferred Stock the Company shall have authority to issue is 1,000,000 shares, par value $0.0001 per share. The Preferred Stock authorized by this Certificate of Incorporation may be issued in series. As a result of the Merger as described in note 1, all share and per share data has been retroactively restated to reflect the current capital structure of the Company.

Shares issued in connection with the Company's Merger on March 11, 2024:

---

| | |
|:---|:---|
|  | **Common<br> Stock** |
| Lakeshore's shares outstanding prior to reverse recapitalization | 74717 |
| Shares issued to private rights | 1172 |
| Conversion of the Lakeshore's public shares and rights | 26337 |
| Shares issued to service providers | 26717 |
| Shares issued for commitment fee | 5114 |
| Bonus shares issued to in connection with Lakeshore loans \* | 2200 |
| Bonus shares issued to in connection with NMI loans \* | 3333 |
| Conversion of NMI's shares into the Company's ordinary shares | 742416 |
| Total shares outstanding | 882006 |

---

\* In connection with the Merger, the Company, Lakeshore and NMI further entered into a Letter Agreement on November 15, 2023, a total of 4,168 shares of the Company's common stock will be issued upon closing of the Merger in connection with certain transactions relating to the Merger: (i) 1,667 shares to Tie (James) Li and 1,667 shares to Zhiyi (Jonathan) Zhang (or 3,334 shares in the aggregate) in connection with their guarantees of the repayment of the Newtek Loan, which was loaned to a subsidiary of NMI with the principal amount of $3,700,000; (ii) 417 shares to Tie (James) Li and 417 shares to Deyin (Bill) Chen (or 834 shares in the aggregate) in connection with their loans to Lakeshore, each with the principal amount of $125,000 under separate but similar loan agreements); At the Close of Merger, additional shares of 533 and 833 were issued to Tie (James) Li and Prosperity Spring International Investment Management in connection with their loans to Lakeshore.

The shares were valued $300 per share, of which $1.0 million (3,334 shares awarded pertaining to loan guarantee for the Newtek loan) was expensed as finance expense in the Company consolidated statements of operations during the year ended December 31, 2024. $660,000 was expensed in Lakeshore's statements of operations and carried over as retained deficit after the Merger. The shares in connection with the loans have been issued during the close of the Merger.

\* On April 10, 2023, Lakeshore entered into a standby equity purchase agreement (as amended by amendment No. 1 to the agreement dated June 12, 2023 and amendment No. 2 to the agreement dated December 11, 2023, the "SEPA") with YA II PN, Ltd. ("Yorkville"). Pursuant to the SEPA, Lakeshore has the right, but not the obligation, to sell to Yorkville up to $60,000,000 of shares of common stock at Lakeshore's request any time during the commitment period commencing on the sixth (6th) trading day following the date of closing of the reverse recapitalization and terminating on the earliest of (i) the first day of the month following the 36-month anniversary of the effective date and (ii) the date on which Yorkville will have made payment of any advances requested pursuant to the SEPA for the shares of common stock equal to the commitment amount of $60,000,000.

The Company has paid YA Global II SPV, LLC, a subsidiary of Yorkville, a structuring fee in the amount of $25,000. In addition, no later than ten trading days following the closing of the reverse recapitalization, Lakeshore agreed to pay a commitment fee in an amount equal to $300,000 by the issuance to Yorkville of such number of shares of common stock that is equal to the commitment fee divided by the lower of (i) the average VWAP for the seven consecutive trading days immediately after the close of the reverse recapitalization and (ii) $10.00 per share. The 5,114 shares at $58.66 per share had been issued on November 22, 2024.

<u>Reverse Split</u>

On November 18, 2024, the Company filed a certificate of amendment to its amended and restated certificate of incorporation to effect a one-for-thirty (1-for-30) reverse split (the "Reverse Split"). The Reverse Split became effective on November 21, 2024. As a result of the Reverse Split, every 30 shares of the Company's issued and outstanding common stock were automatically converted into one share of common stock, with no change to the par value per share. All share and per share data has been retroactively restated to reflect the Reverse Split of the Company.

<u>Stock compensation</u>

In connection with the Merger, the Company adopted the Equity Incentive Plan (the "2024 Incentive Plan").

The 2024 Incentive Plan will provide for grants of stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock or equity-related cash-based awards. Directors, officers and other employees of the Company and its subsidiaries, as well as others performing consulting or advisory services for the Company, will be eligible for grants under the 2024 Incentive Plan.

The 2024 Incentive Plan provides for the future issuance of shares of the Company's Common Stock, representing 10% of the number of shares of the Company's Common Stock outstanding following the Business Combination (after giving effect to the Redemption). The 2024 Incentive Plan also provides for an annual increase on January 1 for each of the first ten (10) calendar years during the term of the 2024 Incentive Plan by the lesser of (a) Five percent (5%) of all classes of the Company's common stock outstanding on each December 31 immediately prior to the date of increase or (b) such number of Shares determined by the Board.

Pursuant to board resolution dated August 23, 2023, the Company is to grant a one-time award of 333 shares of common stock of the company to Charles Hausman, a Director of the Company; a one-time award of 1,667 shares of the company to Tie "James" Li and a one-time award of 1,667 shares of the company to Zhiyi Zhang, both executives of the Company. The above awards are vested immediately upon consummation of the business combination with Lakeshore.

Pursuant to board resolution dated September 20, 2023, the Company approved a stock grant to Mr. Darin Carpenter, Chief Operating Officer of the Company, pursuant to which Mr. Carpenter will be issued 3,334 shares of the Company's common stock over a two-year service period upon consummation of the business combination Lakeshore.

On August 1, 2024, the Company and Darin Carpenter entered into the mutual termination of employment agreement and intent to transition to project-based work (the "Agreement"), in which it was agreed that Mr. Carpenter shall resign from his position as Chief Operating Officer of the Company effective as of July 31, 2024. Pursuant to the Agreement, the Company and Mr. Carpenter agreed that Mr. Carpenter will provide services as a consultant to the Company on a per project basis as needed. In addition, the Company agreed to fully vest 3,334 shares of common stock that was issuable to Mr. Carpenter pursuant to the Employment Agreement dated as of September 17, 2023, by and between the Company and Mr. Carpenter. The Company also agreed to pay Mr. Carpenter the equivalent of two months of salary.

Shares award to Mr. Hausman and Mr. Carpenter per Letter Agreement stated above has a fair value of $1.1 million and were expensed as compensation expenses according to vesting terms.

Pursuant to board resolution dated March 24, 2024, certain key employees were approved for stock incentives including George Yutuc (Chief Financial Officer), Kirk Collins (Director of Sales), and Amber Wang (Controller). Each can receive shares that vest over time of 3,334, 1,667 and 1,667 shares, respectively. Each of these employees have signed an employment agreement that reflects such shares and unique vesting schedules. The fair value of the shares to be issued was approximately $178,000 at $26.70 per share.

On April 2, 2024, the Company entered into an investor relations consulting agreement with MZHCI LLC ("MZHCI") pursuant to which MZHCI will provide investor relations services to the company and the agreement has a term of six months. The Company will pay $14,000 cash per month and to issue MZHCI 5,000 shares of restricted common stock, 2,500 shares will be vested immediately upon signing the agreement and 2,500 shares will vest on October 1, 2024. The fair value of the shares was approximately $143,000 at $28.50 per share. The 5,000 shares were issued on May 7, 2024.

Pursuant to board resolution dated October 25, 2024, the Company approved the issuance of 13,334 restricted shares of common stock, par value $0.0001 per share to Alta Waterford LLC for service provided related to digital advertising and social media platform. The shares shall be issued pursuant to the 2024 Incentive Plan. The fair value of the shares was approximately $58,000 at $4.37 per share. The shares were issued on November 21, 2024.

Pursuant to board resolution dated November 18, 2024, the Company approved the issuance of 75,757 restricted shares of common stock, par value $0.0001 per share to PX SPAC Capital Inc. for one- year service to be provided related to business consulting and advisory. The shares shall be issued pursuant to the 2024 Incentive Plan. The fair value of the shares granted was approximately $200,000 at $2.64 per share. Stock compensation expenses for the year ended December 31, 2025 amounted to $176,437.

On July 22, 2025, the Company entered into a two-month consulting agreement with Root Ventures LLC. In exchange for curation services to be provided under the agreement, the Company issued 439,833 restricted shares of common stock (valued at approximately $22,519 based on a fair value of $0.0512 per share) on July 25, 2025, as consideration for the services.

On October 29, 2025, the Company entered into a consulting agreement with Huanfu Cui (the "Consultant"), pursuant to which the Consultant agreed to provide financing advisory services, including presenting tailored financing options, reviewing deal-related documents, and coordinating with lenders to facilitate financing transactions. As compensation, the Company agreed to issue the Consultant 1,000,000 shares of restricted common stock, which vested in full upon execution of the agreement. The fair value of the shares granted was approximately $425,000 at $0.425 per share. Stock compensation expenses for the year ended December 31, 2025 amounted to $73,356.

For the years ended December 31, 2025 and 2024, the Company recorded stock compensation expenses of $341,462 and $1,413,458. Those stock compensation expenses are included in the Company's operating expenses.

<u>Common stock issued with private placement</u>

On July 19, 2024, the Company issued a total of 6,000 shares to the investor pursuant to a securities purchase agreement (See Note 11 on Convertible notes for detail). The fair value of the shares was approximately $81,000 at $13.5 per share.

<u>Public Offering</u>

On July 29, 2024, the Company closed an underwriting public offering for the sale of 166,667 units at a public offering price of $7.2 per unit, with each unit consisting of: (i) one share of common stock and (ii) one warrant to purchase one share of common stock, for aggregate net proceeds of $1.0 million after deducting underwriting discounts and other offering expenses. Pursuant to the terms of an underwriting agreement dated as of the offering date, the Company agreed to grant EF Hutton LLC, the underwriter, 25,000 warrants, representing 15% of the warrants sold as part of the units in this offering.

On November 7, 2024, the Company entered into an underwriting agreement with D. Boral Capital LLC as the underwriter, relating to a firm commitment underwritten public offering of (i) 837,788 units at a public offering price of $3.354 per Unit, with each Unit consisting of one share of common stock, par value $0.0001 per share, of the Company, one Series A warrant to purchase one share of common stock at an exercise price of $3.354 per share and one Series B warrant to purchase such number of shares of common stock as determined on the reset date, at an exercise price of $0.003 per shares, and (ii) 56,667 pre-funded units (the "Pre-Funded Units") at a public offering price of $3.351 per Pre-Funded Unit, with each Pre-Funded Unit consisting of one pre-funded warrant (the "Pre-Funded Warrants") exercisable for one share of common stock at an exercise price of $0.003 per share, one Series A Warrant and one Series B Warrant. The Pre-Funded Warrants was exercised on November 12, 2024. Net proceed to the Company amounted to approximately $2.5 million.

On May 7, 2025, the Company entered into the equity financing agreement (or the "EPFA"), with GHS Investments, LLC, a Nevada limited liability company (the "Investor"), in connection with an equity line of credit ("ELOC") for up to $20,000,000 (the "Commitment Amount"), pursuant to the EPFA. On July 25, 2025, the Company entered into the (the "Amended EPFA") with the "investor, which amends and supersedes the previously disclosed Equity Financing Agreement ("EPFA"), dated as of May 6, 2025, by and between the Company and the Investor, in connection with an equity line of credit ("ELOC") for up to $20,000,000 (the "Commitment Amount"), for a period of 24 months from the effective date of the registration statement (the "Registration Statement") registering the shares of Common Stock relating to the EPFA (the "Term"), or July 15, 2027. During the Term, the Company has the right, but not the obligation, from time to time at its sole discretion, to direct Investor, by delivery of an irrevocable written notice ("Purchase Notice") to purchase shares of the Company's Common Stock (each a "Purchase"). The maximum dollar amount of each Purchase will not exceed two hundred percent (200%) of the average daily trading dollar volume for the Common Stock during the ten (10) consecutive trading days preceding the Purchase Notice. Prior to the Amended EPFA, no Purchase would be made in an amount equaling less than ten thousand dollars ($10,000) or greater than five hundred thousand dollars ($500,000). The parties entered into the Amended EPFA solely to increase such Purchase amount from $500,000 to $2,000,000. The Company also agrees to issue one percent (1%) of the total Commitment Amount at a fixed price equaling ninety-five (95%) of the VWAP for the trading day preceding the execution of Agreements as an equity incentive ("Commitment Shares"). The Company accounted for the Commitment Shares as finance expense to obtain the ELOC. The Company has not issued the shares as of December 31, 2025. The change in fair value of the shares to be issued on July 25, 2025 to December 31, 2025 is recorded in the Company's consolidated statements of operations and comprehensive loss. Fair value is determined using the quoted market price of the Company's shares which is a level 1 input.

For the year ended December 31, 2025, the Company sold 1,774,650 share of its common stock, net proceeds to the Company amounted to $170,219.

<u>Preferred shares</u>

In connection with the acquisition of Zak Properties as stated in Note 6– Asset acquisition under common control, the purchase price for Zak Properties is $17,500,000, and paid by the Company as follows:

&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company shall issue 5,000 shares
of Series B Preferred Stock (valued at $5,000,000) of the Company which (a) can be converted into Common Stock, par value $0.0001 per
share, at $0.1180 per share and (b) have certain voting rights equal to twenty (20) votes per one (1) share of Series
B Preferred Stock;

&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Company shall issue 9,500 shares
of Series C Preferred Stock (valued at $9,500,000) of the Company which (a) convertible into shares of Common Stock at $0.1180 per
share, and (b) same voting right as common stock.

The Company issued 5,000 Series B and 9,500 Series C shares in October 2025.

On December 9, 2025, Big Lake converted 9,500 Series C shares into 80,508,475 shares of the Company's common stock at $0.1180 per share.

<u>Shares issued through debt-to-equity conversion</u>

Refer to Note 10 — Loans payable and Note 12 — Related party transactions for detail.

On July 24, 2025, the Company entered into separate debt-to-equity conversion agreements with Tie Li, George Yutuc, and Jonathan Zhang pursuant to which each individual agreed to convert certain accrued and unpaid wages and salaries into shares of the Company's common stock at a conversion price of $0.1305 per share, or the closing market price on the date of the agreement. Specifically, Tie Li agreed to convert $673,476 of unpaid salary into 5,160,739 shares; George Yutuc agreed to convert $52,083 into 399,106 shares; and Jonathan Zhang agreed to convert accrued $406,691 into 3,111,408 shares. The share issuances pursuant to these agreements were completed on December 7, 2025.

<u>Shares issued through convertible notes conversion</u>

Refer to Note 11 — Convertible notes for detail.

<u>Warrants:</u>

*<u>Warrants issued prior to reverse recapitalization</u>*

In connection with the reverse recapitalization, the Company has assumed 120,858 warrants outstanding, which consisted of 115,000 public warrants and 5,858 private warrants. Both of the public warrants and private warrant met the criteria for equity classification.

Each whole warrant entitles the holder to purchase one ordinary share at a price of $345 per share, subject to adjustment as described below, commencing 30 days after the completion of its initial business combination, and expiring five years from after the completion of an initial business combination. No fractional warrant will be issued and only whole warrants will trade.

The Company may redeem the warrants at a price of $0.3 per warrant upon 30 days' notice, only in the event that the last sale price of the ordinary shares is at least $540 (as adjusted for share sub-divisions, share dividends, reorganizations and recapitalizations) per share for any 20 trading days within a 30-trading day period ending on the third day prior to the date on which notice of redemption is given. If the Company redeems the warrants as described above, management will have the option to require all holders that wish to exercise warrants to do so on a "cashless basis."

*<u>Warrant issued with July convertible notes</u>*

On July 17, 2024, the Company issued a total of 7,250 warrants in connection with a securities purchase agreement, granting the option to purchase up to 7,250 shares of common stock at an exercise price of $26.10 per share. The warrant is exercisable on July 17, 2024 until five years from July 17, 2024. The fair value of the warrants was approximately $4,600 at $0.60 per warrant.

The issuance of the warrants described above were deemed exempt from registration under Section 4(a)(2) of the Securities Act or Regulation D promulgated thereunder in that the issuance of securities were made to an accredited investor and did not involve a public offering. The recipient of such securities represented its intention to acquire the securities for investment purposes only and not with a view to or for sale in connection with any distribution thereof.

The total number of these warrant shares is subject to adjustments for stock splits, recapitalizations and reorganizations. If the Company issues or sells any shares of common stock or other securities for a price per share, exercise price, or conversion price, as the case may be, that is less than the current exercise price of the warrant, subject to exceptions, the exercise price of the warrant will be adjusted to match the price per share, exercise price, or conversion price, in the issuance, as applicable.

*<u>Series A Warrants issued in July Public offering</u>*

On July 29, 2024, the Company issued a total 191,667 Series A warrant, each entitling the holder to purchase one share of common stock at a public offering price of $7.2 per unit.

The Series A warrant is immediately exercisable on the date of issuance at an exercise price of $7.2 per share and expires five years from the closing date of the offering (See above Public Offering for detail).

The Series A warrants are exercisable at any time after their original issuance up to the date that is five years after their original issuance. The Series A warrants will be exercisable, at the option of each holder, in whole or in part by delivering to us a duly executed exercise notice accompanied by payment in full in immediately available funds for the number of shares of Common Stock subscribed for upon such exercise (except in the case of a cashless exercise as discussed below). If a registration statement registering the issuance of the shares of Common Stock underlying the Series A warrants under the Securities Act is not effective or available, the holder may, in its sole discretion, elect to exercise the Series A warrants through a cashless exercise, in which case the holder would receive upon such exercise the net number of shares of Common Stock determined according to the formula set forth in the Series A warrants.

The exercise price per whole share of Common Stock issuable upon exercise of Series A warrants is $7.2 per share. The exercise price and number of shares of Common Stock issuable upon exercise will adjust in the event of certain stock dividends and distributions, stock splits, stock combinations, reclassifications, dilutive issuances or similar events. In addition, with respect to Series A warrants, subject to certain exemptions outlined in the Series A warrants, if we sell, enter into an agreement to sell, or grant any option to purchase, or sell, enter into an agreement to sell, or grant any right to reprice, or otherwise dispose of or issue (or announce any offer, sale, grant or any option to purchase or other disposition) any shares of Common Stock, at an effective price per share less than the exercise price of the Series A warrants then in effect, the exercise price of the Series A warrants shall be reduced to equal the effective price per share in such dilutive issuance, provided, however, in no event shall the exercise price of the Series A warrants be less than $1.5.

In November 2024, a total of 46,800 Series A warrants were exercised to subscribe for common stocks for a total consideration of approximately $0.3 million.

*<u>Warrants and Pre-Funded Warrants issued in November Public offering</u>*

On November 12, 2024, the Company issued a total 894,454 Series A warrants, including 56,667 Series A warrants from Pre-Funded Unit, 894,454 Series B warrants, including 56,667 Series B warrants from Pre-Funded Unit, and 56,667 Pre-Funded warrants.

The Series A Warrants was exercisable commencing upon warrant stockholder approval ("Warrant Stockholder Approval", see define below), have an exercise price of $3.354 per share (subject to certain anti-dilution and share combination event protections) and have a term of 5 years from the date of the Warrant Stockholder Approval.

The Series B Warrants were exercisable commencing upon Warrant Stockholder Approval, will have an exercise price of $0.003 per share and will have a term of 2 years from the date of Warrant Stockholder Approval.

The purchase price of each Pre-Funded Unit is $3.351, and the exercise price of each Pre-Funded Warrant included in the Pre-Funded Unit is $0.003 per share. The Pre-Funded Warrants will be immediately exercisable and may be exercised at any time until all of the Pre-Funded Warrants are exercised in full. This offering also relates to the shares of common stock issuable upon exercise of any Pre-Funded Warrants and Warrants sold in this offering. (See above Public Offering for detail).

The exercise price and number of shares of common stock issuable under the Series A Warrants are subject to adjustment and the number of shares of common stock issuable under the Series B Warrants will be determined following the 10th trading day after the date of Warrant Stockholder Approval (the "Reset Date"), and to be determined pursuant to 80% of the lowest daily average trading price of the common stock during the reset period ("Reset Period"), the period commencing on the first (1<sup>st</sup>) Trading Day after the date of Stockholder Approval and ending on the tenth (10<sup>th</sup>) trading day after the date of stockholder approval, subject to a minimum price of $0.6708 per share, such that the maximum number of shares of common stock underlying the Series A Warrants would be an aggregate of approximately 4,472,272 (determined by dividing the offering amount of $3,000,000 by the minimum exercise price of $0.6708) and the maximum number of shares of common stock underlying the Series B Warrants would be an aggregate of approximately 3,577,818 (determined by subtracting the 837,788 Units and 56,667 Pre-Funded Units offered from 4,472,272).

*Warrant Stockholder Approval.* Under Nasdaq listing rules, the Warrants may not be exercised unless and until the Company obtain the approval of its stockholders. While the Company intends to promptly seek stockholder approval, there is no guarantee that the Warrant Stockholder Approval will ever be obtained. If the Company is unable to obtain the Warrant Stockholder Approval, the Warrants may not be exercised and will have substantially less value. In addition, the Company will incur substantial cost, and management will devote substantial time and attention, in attempting to obtain the Warrant Stockholder Approval.

*<u>Warrants issued with convertible note – related party</u>*

In connection with the convertible note issued to Big Lake, the Company has issued to the note holder and an investor of the holder, warrants to purchase up to 10,101,010 shares of common stock at an exercise price of $0.198 pursuant to the warrant agreement dated April 11, 2025, if the Company draws down the full amount of the note. The warrants can be exercised in whole or in part, via cash or cashless exercise, until April 11, 2027, unless extended with holder's consent. The warrants were valued at a fair value of $1,516,325 at $0.150 per share.

*<u>Warrants issued with August 2025 convertible note</u>*

In connection with the convertible note issued to Auctus Fund, LLC on August 15, 2025, the Company granted the note holder warrants to purchase 500,000 shares of common stock at an initial exercise price of $0.20 per share, adjustable under certain conditions, with an exercise period of five years. The warrants were valued at a fair value of $87,492 at $0.175 per share.

In December 2024, a total of 430,859 Series B warrants were exercised to subscribe for common stocks for a total consideration of approximately $43.

On January 13, 2025, the exercise price for the Series A warrant has been reset to $0.6708. Total issuance number for Series A warrants and Series B warrants had been adjusted to 4,472,270 and 3,577,817.

In January 2025, a total of 1,289,916 Series A warrants and 549,107 Series B warrants were exercised for 1,839,023 shares of common stocks for a total consideration of $865,423.

The summary of warrants activity is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Warrants <br> Outstanding** | **Common Stock<br> Issuable** | **Weighted <br> Average <br> Exercise <br> Price** | **Average <br> Remaining <br> Contractual <br> Life <br> (in years)** |
|  | | | **US$** | |
| December 31, 2024 | 1631025 | 1631025 | $28.21 | 3.94 |
| Adjustment | 5806389 | 5806389 | $0.39 | 2.72 |
| Granted | 500000 | 500000 | $0.20 | 4.62 |
| Forfeited | - | - | $- |  |
| Exercised | (1839023) | (1839023) | $0.47 |  |
| December 31, 2025 | 6098391 | 6098391 | $11.42 | 3.93 |

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**Note 16 — Concentration of risk**

<u>Credit risk</u>

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable.

As of December 31, 2025 and 2024, $90,786 and $414,938, respectively, were deposited with various major financial institutions in the United States. The amount in excess of the FDIC insurance was nil as of December 31, 2025 and 2024.

Accounts receivable is typically unsecured and derived from revenue earned from customers, thereby exposing the Company to credit risk. The risk is mitigated by the Company's assessment of its customers' creditworthiness and its ongoing monitoring of outstanding balances. The Company maintains reserves for estimated credit losses, and such losses have generally been within expectations.

<u>Customer and vendor concentration risk</u>

During the years ended December 31, 2025 and 2024, the major customers of the Company are as below. Iluminar is a related party of the Company since April 11, 2023, as disclosed in Note 12— Related party transactions.

---

| | | |
|:---|:---|:---|
|  | **For the <br> year ended<br> December 31, <br> 2025** | **As of <br> December 31, <br> 2025** |
|  | **Percentage of <br> Revenue** | **Percentage of <br> Accounts <br> Receivable** |
| Customer C | 32% | 28% |
| RapidGrow LED Technologies | <10% | 23% |
| SAC Projects, Inc. | <10% | 18% |
| Concentrated Services LLC | <10% | 13% |
| House of Clones, Inc. | <10% | 11% |

---

---

| | | |
|:---|:---|:---|
|  | **For the <br> year ended<br> December 31, <br> 2024** | **As of <br> December 31, <br> 2024** |
|  | **Percentage of <br> Revenue** | **Percentage of <br> Accounts <br> Receivable** |
| Customer A | 12% | 31% |
| Customer C | 12% | <10% |
| Iluminar | 17% | 35% |

---

During the years ended December 31, 2025 and 2024, the major vendors of the Company are as below. Both Megaphoton, Ilumionar and Uninet Global Inc. are related parties of the Company (Megaphoton is no longer a related party of the Company after April 2023), as disclosed in Note 12— Related party transactions, and all purchases from Uninet Global Inc. are products originally manufactured by Megaphoton Inc.

---

| | | |
|:---|:---|:---|
|  | **For the<br> year ended <br> December 31, <br> 2025** | **As of<br> December 31, <br> 2025** |
|  | **Percentage of<br> Purchases** | **Percentage of<br> Accounts<br> Payable** |
| Vendor A | <10% | 10% |
| Vendor C | <10% | 14% |
| Vendor D | 51% | <10% |
| Iluminar | 40% | <10% |
| Megaphoton Inc. | <10% | 53% |

---

---

| | | |
|:---|:---|:---|
|  | **For the<br> year ended <br> December 31, <br> 2024** | **As of <br> December 31, <br> 2024** |
|  | **Percentage of<br> Purchases** | **Percentage of<br> Accounts<br> Payable** |
| Vendor A | 53% | 20% |
| Vendor C | 22% | 13% |
| Iluminar | <10% | <10% |
| Megaphoton Inc. | <10% | 49% |

---

**Note 17 — Lease**

The Company follows ASC 842 Leases. The Company has entered into lease agreements for vehicle, office and warehouse space in California, Pennsylvania and Texas. $133,889 and $470,716 of operating lease right-of-use assets and $137,011 and $467,982 of operating lease liabilities were reflected on the December 31, 2025 and 2024 financial statements, respectively.

On May 28, 2023, Visiontech entered into a lease agreement for a vehicle. The leasing term began on May 28, 2023 and will terminate on April 28, 2025 with a first installment of $15,000 and then continuously monthly payment of $1,550.

On April 11, 2024, the Company entered into a lease agreement for an office located in California. The lease term was from May 1, 2024 to April 30, 2027. The lease payments are $8,528 per month for the period commencing May 1, 2024 and ending April 30, 2025, $8,784 per month for the period commencing May 1, 2025 and ending April 30, 2026, $9,047 per month for the period commencing May 1, 2026 and ending April 30, 2027.

As of December 31, 2025 and 2024, the weighted-average remaining operating lease term of its existing leases is approximately 1.33 and 2.04 years, respectively. As of December 31, 2025 and 2024, the average discount rate of its existing leases is approximately 6.76% and 7.14%, respectively.

---

| | | |
|:---|:---|:---|
| **Lease cost** | **December 31, <br> 2025** | **December 31, <br> 2024** |
| Operating lease cost (included in Cost of Revenue and Other Expense in the Company's Statement of Operations) | $249223 | $409453 |
| <u>Other information</u> |  |  |
| Cash paid for amounts included in the measurement of lease liabilities | 102049 | 426454 |
| Weighted average remaining term in years | 1.33 | 2.04 |
| Average discount rate – operating leases | 6.76% | 7.14% |

---

The supplemental balance sheet information related to leases for the period is as follows:

---

| | | |
|:---|:---|:---|
|  | **As of<br> December 31,<br> 2025** | **As of<br> December 31,<br> 2024** |
| Operating leases |  |  |
| **Right of use asset** | 133889 | 470716 |
| **Lease Liability – current portion** | 101327 | 262380 |
| **Lease Liability – net of current portion** | 35684 | 205602 |
| Total operating lease liabilities | $137011 | $467982 |

---

Maturities of the Company's lease liabilities are as follows:

---

| | |
|:---|:---|
| **Twelve months ended December 31,** | **Operating <br> Lease** |
| 2026 | $107511 |
| 2027 | 36188 |
| Thereafter | - |
| Less: Imputed interest/present value discount | (6688) |
| Present value of lease liabilities | $137011 |

---

**Note 18 — Commitments and Contingencies**

The Company may, from time to time, be involved in legal matters arising in the ordinary course of its business. While the Company is not presently subject to any material legal proceedings, there can be no assurance that such matters will not arise in the future or that any such matters in which the Company is involved, or which may arise in the ordinary course of the Company's business, will not at some point proceed to litigation or that such litigation will not have a material adverse effect on the business, financial condition or results of operations of the Company.

On August 22, 2023, two separate lawsuits were filed against NMI and two of its wholly-owned subsidiaries: Visiontech Group Inc., a California corporation, and Hydroman Inc., a California corporation (collectively referred to as the "Defendants") by Megaphoton. Megaphoton, a manufacturer and producer of artificial lighting equipment for use in agriculture and industrial applications, filed the lawsuits against the Defendants in Los Angeles Superior Court, asserting that the Defendants have breached a contract/guarantee agreement by failing to pay a total of $6,857,167, as per the terms of these agreements. NMI believes that there is no merit in the complaint and has filed a counter-suit against Megaphoton in Orange County Court, California, seeking affirmative relief on September 22, 2023. On March 5, 2024, Megaphoton filed requests to dismiss the cases against Hydroman and Visiontech in the Superior Court of Los Angeles. Subsequently, in 2026, Megaphoton and the Company agreed to a Mutual Release Agreement dated February 2, 2026 removing all claims, lawsuits and other disputed amounts.

On March 1, 2024 NMI was notified of a complaint in San Bernardino Superior Court by Vien Le, its former CFO, who was employed approximately 2 months. The lawsuit claims wrongful discharge, untimely payment of wages and other related items. The Company has retained counsel and believes it will successfully defend against this lawsuit.

On October 22, 2024, Growterra, LLC ("Growterra") filed a complaint against the Company and the Company's chief executive officer in the Court of Common Pleas, Hamilton County, Ohio, alleging that it purchased lighting products from the Company, under which the Company would provide Growterra software, IP, and design documentation related to hydroponic containers and identify Growterra as an additional insured on the Company's product liability insurance. Growterra alleges the Company failed to perform these obligations. Growterra is alleging breach of contract, fraud, and misappropriation of trade secrets as well as related causes of action. On March 27, 2026 the above-mentioned Court has denied Growterra's motion for summary judgement. The Court has also denied the Company's counterclaim for breach of contract without the opportunity to conduct discovery. The trial is rescheduled for November 9 to 12, 2026.

On October 30, 2024, Visiontech filed a cross-complaint against Beverly Hills View, Inc. ("BHV") in Los Angeles Superior Court. This action responded to an initial lawsuit filed by BHV on August 29, 2024, in which BHV claimed that the lighting products received were unsuitable for its cannabis growing operation and claiming damages of $2,500,000. The case is set for trial in November 2026.

In January 2026, the Company signed Jinlong Du to an employment agreement as President that calls for the issuance of 15 million shares of the Company's stock. As of the date of this submission, the shares have not been issued to Mr. Du.

On March 30, 2026 858 Upland LLC, the owner of the warehouse and offices leased by Visiontech Group Inc. (100% subsidiary of the Company), gave a notice to pay past due rent or to vacate the premises. The Company holds inventory in that warehouse and is seeking an extension of the lease or time to relocate the inventory. In turn, on March 31, 2026, the Company gave notice to 858 Upland LLC that it is accelerating the collection of its $1.57 million loan provided to Visiontech in August 2021.

On January 29, 2026, the Company filed with the State of Delaware, a certificate of amendment stating a reverse stock split with ratio of 1:20. Such reverse stock split is still pending and have not been effected by the Company's transfer agent.

<u>Nasdaq Stock Market Delisting, Move to OTCQB</u>

After receiving various notification letters from Nasdaq for non-compliance on certain continued listing requirements since April 2024, the Company was delisted by Nasdaq on January 15, 2025. The Company commenced trading immediately on OTC Markets Group as an OTCQB stock. OTCQB stocks are required to maintain a minimum trade price of $0.01. Other requirements include a minimum of 50 shareholders, audited financial statements and undergo annual verification.

On March 17, 2026, OTC Markets notified the Company via email that its stock has traded below $0.01 for more than 30 consecutive days. The Company has been granted a cure period of 90 days or by June 15<sup>th</sup>, 2026.

**Note 19 — Segment Information**

The Company conducts business as a single operating segment for indoor agriculture technology that provides products to indoor growers which is based upon the Company's organizational and management structure, as well as information used by the Chief Executive Officer ("CODM") to allocate resources and other factors. The accounting policies of the segment are the same as those described in Note 3.

The key measure of segment profitability that the CODM uses to allocate resources and assess performance is segment profit or loss, as reported on the statements of operations. The following table presents the significant revenue and expense categories of the Company's single operating segment:

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
| Revenues | $1742360 | $9261583 |
| Less: |  |  |
| Cost of revenues | 2193398 | 12066778 |
| Operating expenses: |  |  |
| Salary and benefits expenses | 1152382 | 1883893 |
| Professional fees | 1718323 | 2320041 |
| Stock-based compensation | 339063 | 1413458 |
| Other selling, general and administrative | 1673364 | 1516728 |
| Provision for credit losses | 1818151 | 408569 |
| Other expenses (income): |  |  |
| Interest expense, net | 3375272 | 2301600 |
| Non cash finance expense | 200000 | 1000000 |
| (Gain) loss on loan extinguishment | (67183) | 8417 |
| Income taxes | 1700 | 5100 |
| Other segment expense (income) | 1324644 | (9661) |
| Net loss | $(11986754) | $(13653340) |

---

**Note 20 — Subsequent events** 

On January 29, 2026, Zak Properties entered into a promissory note agreement with American Savings Life Insurance Company (the "Lender"), pursuant to which Zak Properties issued a promissory note in the principal amount of $5,000,000. The note bears interest at an annual rate of 8.50% and requires monthly payments of $35,416.67 commencing on March 1, 2026. The note matures on February 1, 2028, at which time the remaining unpaid principal and accrued interest are due, resulting in a balloon payment. Proceeds from the loan were primarily used to repay existing indebtedness, including the JJ Astor loan of $1,886,000, and the Yan Li loan of $1,046,200 (refer to Note 10 – Loans Payable). In connection with the financing, the Company incurred loan origination and related fees, including a $50,000 origination fee, $5,500 underwriting fee, $50,000 mortgage broker fee, and other closing costs, which are recorded as debt issuance costs and amortized over the term of the loan.

On February 2, 2026, the Company entered into a Settlement and Mutual Release Agreement with Megaphoton, Inc. to resolve previously disclosed litigation pending in the United States District Court for the Central District of California. Pursuant to the agreement, the Company agreed, among other things, to (i) issue 15,000,000 unregistered shares of its common stock and register such shares on a Form S-1 no later than July 31, 2026, (ii) appoint Megaphoton's chief executive officer to the Company's board of directors and as President under an employment agreement, (iii) pay $300,000 on or before June 30, 2026, (iv) use best efforts to uplist its common stock within 180 days or issue an additional 15,000,000 shares if such uplisting is not approved, and (v) comply with certain share issuance restrictions. The agreement includes mutual releases of claims without admission of liability.

On February 23, 2026, the Company entered into a note purchase agreement with Lambda Venture Partners, LLC, pursuant to which the Company issued a convertible promissory note in the principal amount of $27,500 for a funded amount of $25,000, reflecting an original issue discount of $2,500. The note bears an annual interest charge of 10% and matures one year after the issue date. Principal and accrued interest can be converted into shares of common stock of the Company at a 39% discount of the lowest trading prices for the proceeding 10 trading days prior to conversion.

The Company has restated its condensed consolidated financial statements as of and for the three and nine months ended September 30, 2025, to appropriately include the recording of certain short-term loan and related party receivable. The original financial statements were included in the Company's Quarterly Report on Form 10-Q filed with the SEC on November 14, 2025, and the restated financial statements were filed in the Company's Amendment No.1 on Form 10-Q/A filed with the SEC on April 14, 2026.

**PART III**

**Item 10. Directors, Executive Officers and Corporate Governance.**

**Executive Officers and Directors**

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Tie (James) Li | 58 | Chairman, Chief Executive Officer, and Director |
| George Yutuc | 61 | Chief Financial Officer, Chief Operating Officer |
| Jinlong (Frank) Du | 50 | President and Director (Effective January 2026) |
| Charles Jourdan Hausman | 55 | Independent Director |
| H. David Sherman | 78 | Independent Director |
| Jon M. Montgomery | 77 | Independent Director |

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**Background of Directors and Executive Officers**

***Tie (James) Li*** serves as Chairman, Chief Executive Officer and Director of the Company. He founded Nature's Miracle, Inc. in 2022 and has served as the Company's Chairman and CEO since. From February 2015 to 2022, he was the Founder and Chairman of Early Bird Investment, a private equity firm focused on agriculture, mobile gaming and clean energy. From 2006 to 2015, he was the co-founder, CFO, President and CEO of China Hydroelectric Corporation ("CHC") which was the largest small hydroelectric company listed on NYSE. He launched China Hydroelectric Corporation in 2006 with three other co-founders and built the company into a NYSE listed company with a market capitalization of over a billion. In 2015, he led the effort to privatize and sell CHC to a public listed utility company. Mr. Li started his career with Citigroup in the investment banking unit in New York City in 1998. He has also worked at Sumitomo Mitsui Banking Corporation, HypoVereinsbank and Standard & Poor's. Mr. Li graduated from Columbia University Graduate School of Business in New York with an MBA in 1998. He completed his Bachelor of Science degree in accounting from Brooklyn College. He also attended Beijing University undergraduate program in History. He is a Chartered Financial Analyst and a Certified Public Accountant. Mr. Li is qualified to serve on the Board because of his extensive executive experience.

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***George Yutuc*** serves as Chief Financial Officer and Chief Operating Officer of the Company. George has been with the Company since 2023. From 2021 to 2023 he consulted with major private equity firms and a top strategy firm in the field of packaging, single use restaurant supplies, manufacturing in California and evaluating industry targets. From 2019 to 2021 he was CFO of Karat Packaging, a manufacturer and distributor of paper and plastic cups, "to go" boxes and related supplies. The Company went from a privately-held $175 million company to a $300 million revenue Nasdaq-listed company during this time. Between 2001 and 2018 he served as CFO or controller in fast-growth companies including EbrokerCenter, Jet Aerospace, ScribeRight and Casestack. Prior to 2001, he held key positions as an audit manager, senior manager and director of corporate finance at CPA firm Deloitte & Touche from 1996 to 2001. George earned his Bachelor of Arts degree and MBA from the University of California, Los Angeles. He has served as a part-time adjunct instructor in Business Acquisitions and Finance at his alma mater from 2005 to 2020.

***Jinlong "Frank" Du*** is our President and a Director of the Company. Frank has been an authority in the field of greenhouse infrastructure and has led and executed over 300 large-scale smart greenhouse projects in various countries. He is an expert in the field of LED lighting technology. He was previously Chief Executive Officer of Megaphoton Inc., a major manufacturer and exporter of horticultural lighting equipment and integrated greenhouse systems. He obtained hisPh.D. in Electrics and Electrical Engineering from Nanyang Technological University in Singapore.

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***Charles Jourdan Hausman*** serves as Director of the Company. Mr. Hausman has served as the Chief Executive Officer of K. Mizra, LLC (the "K.Mizra"), which he founded in 2019, from 2019 to the present. Since its founding, K. Mizra has focused on acquiring high-value, high-quality patents with a global reach. Prior to forming K. Mizra, Mr. Hausman specialized in IP enforcement and monetization at a number of companies. Beginning at the Recording Industry Association of America, Mr. Hausman was Deputy Director at the Motion Picture Association of America (MPAA) where he further expanded the intellectual property rights of movie studios. Following the MPAA, Mr. Hausman worked at Philips Intellectual Property and Standards Group. Following his time at Philips, Mr. Hausman worked as a worldwide program manager for a pool licensing consortium known as One-Red. Following One-Red, Mr. Hausman worked for a Non-Practicing Entity known as Sisvel Group. At Sisvel Group, Mr. Hausman served as President of US operations. Mr. Hausman oversaw the administration of multiple litigations and licensing programs while at Sisvel Group. Mr. Hausman graduated with a Bachelor of Science in Management from Tulane University, A.B. Freeman School of Business and a Juris Doctor from Southwestern University School of Law. He is admitted to California Bar Association in 1996. Mr. Hausman's history of managing, as well as his extensive IP enforcement knowledge, qualify him to serve on the board of the Company.

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***H. David Sherman, MBA, DBA, CPA*** serves as Director of the Company. He has been one of Lakeshore's independent directors since March 2022. He has also been serving as a member of the board of directors of Lakeshore Acquisition I Corp. (Nasdaq: LAAA) from June 2021 to December 6, 2022, the date on which LAAA consummated its initial business combination with ProSomnus Inc.(Nasdaq: OSA). Since 1985, Dr. Sherman has been a professor at Northeastern University, specializing in, among other areas, financial and management accounting, global financial statement analysis and contemporary accounting issues. Since January 2014, Professor Sherman has served as Trustee and Chair of the Finance Committee for the American Academy of Dramatic Arts, the oldest English language acting school in the world. Since July 2010, he has also served as a Board member and Treasurer for D-Tree International, a non-profit organization that develops and supports electronic clinical protocols to enable health care workers worldwide to deliver high quality care. Since September 2019, Dr. Sherman has served as an independent board member for Newborn Acquisition Corp. (NASDAQ:NBAC). Dr. Sherman previously served on the board and as audit committee chair for Dunxin Financial Holdings Ltd. (AMEX:DXF), a financial service company, Kingold Jewelry Inc. (NASDAQ: KGJI), a designer and manufacturer of gold jewelry related products, China HGS Real Estate Inc. (NASDAQ: HGSH), a real estate company, Agfeed Corporation, a manufacturing company of agricultural products, and China Growth Alliance, Ltd., a business acquisition company formed to acquire an operating business in China. Dr. Sherman was previously on the faculty of the Sloan School of Management at Massachusetts Institute of Technology (MIT) and also, among other academic appointments, held an adjunct professorship at Tufts Medical School and was a visiting professor at Harvard Business School (2015). From 2004 to 2005, Dr. Sherman was an Academic Fellow at the Securities and Exchange Commission in the Division of Corporate Finance's Office of Chief Accountant. Dr. Sherman is a Certified Public Accountant and previously practiced with Coopers & Lybrand. Dr. Sherman's research has been published in management and academic journals including Harvard Business Review, Sloan Management Review, Accounting Review and European Journal of Operations Research. Mr. Sherman's academic credentials and significant corporate governance and accounting experience qualify him to serve on the board of the Company.

***Jon M. Montgomery*** serves as Director of the Company. He has been one of Lakeshore's independent directors since March 2022. Mr. Montgomery is managing director at Meredith Financial Group Inc., a financial management and advisory firm located in New York City. He has served as an independent director of Nuvve Holding Corp. (NVVE.NASDAQ) since March 19, 2021. From 2010 to 2014, he was managing partner at project finance advisory firm AGlobal Partners LLC where he assisted in arranging long-term, limited-recourse financing for private investments in renewable energy, telecommunications, mining & metals, PPPs, and other infrastructure projects in emerging and other international markets. He also advised clients on foreign direct investments, including those utilizing development finance institutions, export credit agencies, and political risk insurers. In addition, Mr. Montgomery has more than 25 years of marketing consulting and market research experience, informing and guiding clients' branding, communications, segmentation and innovation challenges across a range of industries, particularly in the information technology, telecommunications, financial services, CPG, pharmaceutical, and retail sectors. He is experienced in applying model-based quantitative analysis, particularly choice-based modeling, to solving competitive problems. Previously, from 1996 to 2010, Mr. Montgomery co-founded Hudson Group Inc. in New York, a research-based marketing consultancy. He also held prior positions as executive vice president at Marketing Strategy & Planning Inc./Synovate, and vice president at Hase Schannen Research Associates Inc. Mr. Montgomery holds a M.B.A. from Northeastern University and a B.A. from the University of California, Berkeley. Since 2000 he has been Adjunct Faculty in Marketing at the University of Georgia. Mr. Montgomery is well-qualified to serve as a member of the Company board due to his investment banking, structuring and strategic expertise, his contacts in emerging and other international markets and his extensive experience in marketing and market research.

**Family Relationships**

There are no familial relationships among the Company's directors and executive officers.

**Board Composition**

The Company's business and affairs are organized under the direction of the Board. The Board consists of five members. Tie (James) Li serves as Chairman of the Board. The primary responsibilities of the board of directors are to provide oversight, strategic guidance, counseling, and direction to the Company's management. The Board meets on a regular basis and additionally as required.

In accordance with the Company's amended and restated certificate of incorporation, the Board is divided into three classes, Class I, Class II and Class III, with members of each class serving staggered three-year terms. The Company has assigned directors to the following classes:

● Class I consists of Charles Jourdan Hausman

● Class II consists of H. David Sherman and

● Class III consists of Tie (James) Li and Jon M. Montgomery

At each annual meeting of stockholders to be held after the initial classification, the successors to directors whose terms then expire will be elected to serve from the time of election and qualification until the third annual meeting following their election and until their successors are duly elected and qualified. This classification of the board of directors of the Company may have the effect of delaying or preventing changes in the Company's control or management.

**Director Independence**

The Board has consulted, and will consult, with its counsel to ensure that the Board's determinations are consistent with those rules and all relevant securities and other laws and regulations regarding the independence of directors. Although we are listed in the OTC, we are trying to comply with the Nasdaq listing standards. The Nasdaq listing standards generally define an "independent director" as a person, other than an executive officer of a company or any other individual having a relationship which, in the opinion of the issuer's board of directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.

The Board determined that H. David Sherman, Charles Jourdan Hausman and Jon M. Montgomery qualify as independent directors as defined under the listing rules of the Nasdaq, and the Board consists of a majority of independent directors, as defined under the rules of the SEC and Nasdaq Listing Rules relating to director independence requirements. In addition, the Company is subject to the rules of the SEC and Nasdaq relating to the membership, qualifications, and operations of the audit committee, the compensation committee, and the nominating and corporate governance committee, as discussed below.

**Board Oversight of Risk**

One of the key functions of the Board is informed oversight of its risk management process. The Board does not anticipate having a standing risk management committee, but rather anticipates administering this oversight function directly through the Board as a whole, as well as through various standing committees of the Board that address risks inherent in their respective areas of oversight. In particular, the Board is responsible for monitoring and assessing strategic risk exposure and the Company's audit committee has the responsibility to consider and discuss the Company's major financial risk exposures and the steps its management will take to monitor and control such exposures, including guidelines and policies to govern the process by which risk assessment and management is undertaken. The audit committee also monitors compliance with legal and regulatory requirements. The Company's compensation committee also assesses and monitors whether the Company's compensation plans, policies and programs comply with applicable legal and regulatory requirements.

**Board Committees**

The Company established an audit committee, a compensation committee and a nominating and corporate governance committee. The Board adopted a written charter for each of these committees, which complies with the applicable requirements of current Nasdaq Listing Rules. Copies of the charters for each committee are available on the investor relations portion of Nature's Miracle's website. The composition and function of each committee comply with all applicable requirements of the Sarbanes-Oxley Act and all applicable SEC rules and regulations.

**Audit Committee**

The Company's audit committee consists of David Sherman, Charles Hausman and Jon Montgomery, with Mr. Sherman serving as the chair of the committee. The Board determined that each member of the audit committee qualifies as an independent direct or under the independence requirements of the Sarbanes-Oxley Act of 2002, as amended, Rule 10A-3 under the Exchange Act, and the applicable Nasdaq listing requirements and that Mr. Sherman qualifies as an "audit committee financial expert," as defined in Item 407(d)(5) of Regulation S-K, and which member or members possess financial sophistication, as defined under the rules of Nasdaq.

The audit committee assists the Board in monitoring the integrity of the Company's financial statements, its compliance with legal and regulatory requirements, and the independence and performance of its internal and external auditors. The audit committee's principal functions include:

● reviewing the Company's annual audited financial statements with management and Nature's Miracle's independent auditor, including major issues regarding accounting principles, auditing practices and financial reporting that could significantly affect financial statements;

● reviewing quarterly financial statements with management and the independent auditor, including the results of the independent auditor's reviews of the quarterly financial statements;

● recommending to the Board the appointment of, and continued evaluation of the performance of, independent auditors;

● approving the fees to be paid to the independent auditor for audit services and approving the retention of independent auditors for non-audit services and all fees for such services;

● reviewing periodic reports from the independent auditor regarding the auditor's independence, including discussion of such reports with the auditor;

● reviewing the adequacy of the overall control environment, including internal financial controls and disclosure controls and procedures; and

● reviewing with our management and legal counsel legal matters that may have a material impact on financial statements or compliance policies and any material reports or inquiries received from regulators or governmental agencies.

**Compensation Committee**

The Company's compensation committee consists of Charles Hausman, Jon Montgomery and David Sherman, with Mr. Hausman serving as chair of the committee. The Board determined that each member of the compensation committee is "independent" as defined under the applicable Nasdaq requirements and SEC rules and regulations. The compensation committee will meet from time to time to consider matters for which approval by the committee is desirable or is required by law.

The compensation committee is responsible for establishing the compensation of senior management, including salaries, bonuses, termination arrangements, and other executive officer benefits as well as director compensation. The compensation committee also administers the Company's equity incentive plans. The compensation committee may also, in its sole discretion, retain or obtain the advice of a compensation consultant, legal counsel or other adviser and will be directly responsible for the appointment, compensation and oversight of the work of any such adviser. However, before engaging or receiving advice from a compensation consultant, external legal counsel or any other adviser, the compensation committee will consider the independence of each such adviser, including the factors required by the Nasdaq and the SEC.

**Nominating and Corporate Governance Committee**

The Company's nominating and corporate governance committee consists of Jon Montgomery, Charles Hausman and David Sherman, with Mr. Montgomery serving as chair of the committee. The Board determined that each member of the nominating and corporate governance committee is "independent" as defined under the applicable Nasdaq requirements and SEC rules and regulations. The nominating and corporate governance committee will meet from time to time to consider matters for which approval by the committee is desirable or is required by law.

The nominating and corporate governance committee is responsible for overseeing the selection of persons to be nominated to serve on the Company's board of directors. The nominating and corporate governance committee also is responsible for developing a set of corporate governance policies and principles and recommending to the Company's board of directors any changes to such policies and principles.

**Code of Ethics**

The Company has adopted a new code of ethics that applies to all of its directors, officers and employees. A copy of the Company's code of ethics is available on its website. The Company also intends to disclose future amendments to, or waivers of, its code of ethics, as and to the extent required by SEC regulations, on its website.

**Compensation Committee Interlocks and Insider Participation**

None of the members of the compensation committee was at any time one of Nature's Miracle's officers or employees. None of Nature's Miracle's executive officers currently serves, or has served during the last completed fiscal year, on the compensation committee or board of directors of any other entity that has one or more executive officers that will serve as a member of the Board or compensation committee.

**Shareholder and Interested Party Communications**

Stockholders and interested parties may communicate with the Board, any committee chairperson or the non-management directors as a group by writing to the Board or committee chairperson in care of Nature's Miracle Holding Inc., 3281 E. Guasti Road, Suite 175, Ontario, CA 91761. Each communication will be forwarded, depending on the subject matter, to the Board, the appropriate committee chairperson or all non-management directors.

**Limitations of Liability and Indemnification of Directors and Officers**

The Delaware General Corporation Law authorizes corporations to limit or eliminate, subject to certain conditions, the personal liability of directors to corporations and their stockholders for monetary damages for breach of their fiduciary duties. The Company's amended and restated certificate of incorporation limits the liability of our directors to the fullest extent permitted by Delaware law.

The Company has purchased director and officer liability insurance to cover liabilities its directors and officers may incur in connection with their services to the combined company, including matters arising under the Securities Act. The Company's amended and restated certificate of incorporation and bylaws also provides that the Company will indemnify its directors and officers to the fullest extent permitted by Delaware law. The Company's amended and restated by-laws further provides that the Company will indemnify any other person whom it has the power to indemnify under Delaware law. In addition, the Company has entered into customary indemnification agreements with each of our officers and directors.

**Item 11. Executive Compensation** 

**Nature's Miracle Named Executive Officer and Director Compensation**

This section discusses material components of the compensation programs for Nature's Miracle's executive officers who are named in the "Summary Compensation Table" below. In 2025, Nature's Miracle's "named executive officers" and their positions were as follows:

● Zhiyi (Jonathan) Zhang, former President of Nature's Miracle;

● Ti "James" Li, current Chairman and CEO of Nature's Miracle;

● George Yutuc, current Chief Financial Officer of Nature's Miracle; and

● Varto Levon Doudakian, current VP of Nature's Miracle.

Note that Mr. Zhang and Mr. Doudakian left or resigned from the Company at the end of 2025. Mr. Jinlong Du was hire in January 2026 as President.

This discussion may contain forward-looking statements that are based on Nature's Miracle's current plans, considerations, expectations, and determinations regarding future compensation programs.

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***Summary Compensation Table***

The following table contains information pertaining to the compensation of Nature's Miracle's named executives for the year ended December 31, 2025.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Position** | **Year** | **Annual<br> Salary Rate<br> ($)** | **W2 Wages<br> Paid <br> ($)** | **Accrued Wages<br> (note C)<br> Converted<br> to Stock<br> ($)** | **Total <br> ($)** |
| Ti "James" Li | 2025 | $300000 | 50000 | 673476 | $723476 |
| &nbsp;&nbsp;&nbsp;*Chairman and CEO* |  |  |  |  |  |
| Zhiyi "Jonathan" Zhang | 2025 | $250000 | 98000 | 406691 | $504691 |
| &nbsp;&nbsp;&nbsp;*President and Director* |  |  |  |  |  |
| George Yutuc | 2025 | $250000 | 135416 | 52083 | $187499 |
| &nbsp;&nbsp;&nbsp;*Chief Financial Officer, Chief Operating Officer* |  |  |  |  |  |
| Varto Levon Doudakian | 2025 | $175000 | 20000 |  | $175000 |
| &nbsp;&nbsp;&nbsp;*Vice President* |  |  |  |  |  |
| Ti "James" Li | 2024 | $300000 (A) | 50000 |  | $50000 |
| &nbsp;&nbsp;&nbsp;*Chairman and CEO* |  |  |  |  |  |
| Zhiyi "Jonathan" Zhang | 2024 | $250000 (A) | 112000 |  | $112000 |
| &nbsp;&nbsp;&nbsp;*President* |  |  |  |  |  |
| George Yutuc | 2024 | $250000 | 225321 |  | $225321 |
| &nbsp;&nbsp;&nbsp;*Chief Financial Officer, Chief Operating Officer* |  |  |  |  |  |
| Varto Levon Doudakian | 2024 | $175000 | 72916 |  | $72916 |
| &nbsp;&nbsp;&nbsp;*Vice President* |  |  |  |  |  |

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(A) Only partially paid. See "Salaries" discussion section next page. As board members, also entitled to $25,000 per year of board fees.

(B) Annual rate. Left July 31, 2024. Partial year only

Note C: Accrued or unpaid wages converted by the Officers are thru July 23, 2025. The figure for Tie Li and Zhiyi Zhang includes prior years unpaid. The trading price at signing date was $0.1305 and was used to calculate the following shares issued: 5,160,739 for Mr. Li; 3,111,408 for Mr. Zhang; 399,106 for Mr. Yutuc. Mr. Yutuc was also issued 1,667 shares in February 2025 which represents 50,000 pre-reverse split shares that vested on his first year work anniversary pursuant to his employment agreement.

Not shown on the table and newly hired in 2026 is Jinlong Du, president, who has an annual salary rate of $300,000.

Mr. Varton Doudakian, VP, only served through 2025 and is no longer with the Company.

***Narrative to Executive Compensation Table***

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***Salaries***

Nature's Miracle's named executives receive a base salary to compensate them for services rendered to Nature's Miracle. The base salary payable to each named executive provides a fixed compensation component commensurate with the executive's skill, experience, role and responsibilities. For 2025, the base salaries for Mr. Li, Mr. Zhang, Mr. Yutuc and Mr. Doudakian were $300,000, $250,000, $250,000 and $175,000, respectively. Actual payments to Mr. Li and Mr. Zhang were $50,000 and $112,000. The rest was accrued in accrued liabilities. Actual payments to Mr. Yutuc amounted to $135,416 in 2025.

Not shown in the table above is Daphne Huang who served as interim Chief Financial Officer from November to December 2024. She was paid approximately 2 months based on an annual salary rate of $250,000.

Two members of the management team, Mr. Li and Mr. Zhang, were also members of the board of directors as of December 31, 2025. The annual pay to board members is $25,000 but not paid out for 2025 to Mr. Li and Mr. Zhang; the total of $50,000 has been accrued in liabilities. The other 3 independent board members were paid $25,000 each in 2025.

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***Employee Benefits***

All of Nature's Miracle's eligible employees, including named executives, may participate in its health and benefits plans, including:

● Medical, dental and vision benefits;

● Flexible spending accounts;

● Life insurance;

● Short and long-term disability insurance.

The Company has provided stock compensation built into certain employee agreements. Such benefits have been provided to Darin Carpenter (former COO), Yali "Amber" Wang (former controller and long-time employee), George Yutuc (CFO and COO), Kirk Colins (Director of Sales). These employees were provided a vesting of 2 years, 1 year, 2 years and 2 years, respectively for them to earn their shares. Mr. Carpenter's mutual separation agreement allowed for him to vest immediately on 100,013 shares (pre-reverse stock split).

The Company has leased two vehicles that were utilized by two employees in connection with their work duties in 2025. A car, is used by Eric Wang, manager of operations and a truck is utilized by Mr. Doudakian, VP of sales. The Company stopped paying these leases and lease payments were assumed by these individuals. In addition, the Company leases two other cars at the corporate level used by Tie Li in connection with our Employee Benefits plan that provides monthly car allowance in lieu of submitting mileage, Uber or taxi expenses.

Nature's Miracle believes the aforementioned benefits are necessary and appropriate to providing a competitive compensation package to eligible employees, including named executives.

 ****

***Employment Agreements***

Nature's Miracle has entered into employment agreements with Tie (James) Li, the CEO, George Yutuc, the CFO and COO, Darin Carpenter, the former COO, and Zhiyi (Jonathan) Zhang, our former President and Director. Mr. Carpenter's employment was mutually terminated on July 31, 2024 and is no longer in force. Mr. Zhang resigned as President, effective December 31, 2025, and his related employment agreement is no longer in force.

The executives' employment agreements provide for "at will" employment until terminated by the executive or the Company. The employment agreements may be terminated: by the Company upon death or disability, or with or without cause; by the executive with or without good reason; or terminated by mutual agreement. The Company may, at any time, without notice or remuneration, terminate the employment for cause; executive may terminate the employment with a 1-month prior written notice or a 1-month salary in lieu of notice, or by approval of the board. Mr. Li, Mr. Zhang, and Mr. Yutuc, are entitled to receive an annual base salary of $300,000, $250,000, and $250,000 respectively.

In addition, a total of 260,000 shares of common stock were issued at the closing of the Business Combination in connection with Nature's Miracle's employment agreements, based on a Letter Agreement entered into by certain parties on November 15, 2023. These 260,000 shares include 10,000 shares issued to Charles Jourdan Hausman, and 100,000 shares issued to Darin Carpenter, 100,000 to George Yutuc, 50,000 to Collins Kirk Arvin as Director of Sales. Shares allocated to Mr. Carpenter, Mr. Arvin and Mr. Yutuc vested subject to a two-year employment period. These shares are pre-reverse stock split. The Company effected a 30 to 1 reverse stock split in November 2024.

***Director Compensation***

After the merger on March 11, 2024 the Company paid independent directors quarterly at an annual rate of $25,000 for fiscal years 2024 and 2025.

**2024 Incentive Plan**

 ****

***Summary***

 

Shares Available for Issuance. The 2024 Incentive Plan provides for the future issuance of shares of common stock, representing 10% of the number of shares of common stock outstanding following the Business Combination. The 2024 Incentive Plan also provides for an annual increase on January 1 for each of the first ten (10) calendar years during the term of the 2024 Incentive Plan by the lesser of (a) five percent (5%) of all classes of the common stock outstanding on each December 31 immediately prior to the date of increase or (b) such number of shares determined by the Board. Generally, shares of Nature's Miracle reserved for awards under the 2024 Incentive Plan that lapse or are forfeited will be added back to the share reserve available for future awards. To the extent an Award under the 2024 Incentive Plan is paid out in cash rather than shares, such cash payment will not result in reducing the number of shares available for issuance under the 2024 Incentive Plan. Shares used to pay the exercise price of an Award or withheld to satisfy the tax withholding obligations related to an Award will become available for future grant or sale under the 2024 Incentive Plan.

At all times the Company will reserve and keep available a sufficient number of shares as will be required to satisfy the requirements of all outstanding awards granted under the 2024 Incentive Plan. No more than 2,300,000 shares shall be issued pursuant to the exercise of ISOs under the 2024 Incentive Plan.

Stock Options. Stock options granted under the 2024 Incentive Plan may either be incentive stock options, which are intended to satisfy the requirements of Section 422 of the Code, or non-qualified stock options (the "NSOs"), which are not intended to meet those requirements. ISOs may only be granted to employees of Nature's Miracle and its affiliates, and with respect to Awards granted as ISOs, to the extent that the aggregate Fair Market Value of the Shares with respect to which such ISOs are exercisable for the first time by the Participant during any calendar year (under all plans of the Company and any parent or subsidiary) exceeds one hundred thousand dollars ($100,000), such Options will be treated as NSOs. Non-qualified options may be granted to employees, directors and consultants of Nature's Miracle and its affiliates. The Exercise Price of an Option will be not less than one hundred percent (100%) of the Fair Market Value of the Shares on the date of grant, and the Exercise Price of any ISO granted to a Ten Percent Stockholder will not be less than one hundred ten percent (110%) of the fair market value of the shares on the date of grant.

Award agreements for stock options include rules for exercise of the stock options after termination of service. Options may not be exercised unless they are vested, and no option may be exercised after the end of the term set forth in the award agreement. Generally, stock options will be exercisable for three months after termination of service for any reason other than death, disability or cause, and for one year after termination of service on account of death or total and permanent disability, but will not be exercisable if the termination of service was due to cause.

Restricted Stock. Restricted stock is common stock that is subject to restrictions, including a prohibition against transfer and a substantial risk of forfeiture, until the end of a "restricted period" during which the grantee must satisfy certain time or performance-based vesting conditions. If the grantee does not satisfy the vesting conditions by the end of the restricted period, the restricted stock is forfeited. During the restricted period, the holder of restricted stock has the rights and privileges of a regular stockholder, except that generally dividend equivalents may accrue but will not be paid during the restricted period, and the restrictions set forth in the applicable award agreement apply. For example, the holder of restricted stock may vote the restricted shares, but he or she may not sell the shares until the restrictions are lifted.

Restricted Stock Units. Restricted stock units are phantom shares that vest in accordance with terms and conditions established by the plan administrator and when the applicable restrictions lapse, the grantee will be entitled to receive a payout in cash, shares or a combination thereof based on the number of restricted stock units as specified in the award agreement. Dividend equivalents may accrue but will not be paid prior to and only to the extent that, the restricted stock unit award vests. The holder of restricted stock units does not have the rights and privileges of a regular stockholder, including the ability to vote the restricted stock units.

Other Stock-Based Awards and Performance-Based Awards. The Plan also authorizes the grant of other types of stock-based compensation including, but not limited to stock appreciation rights and stock bonus awards. The plan administrator may award such stock-based awards subject to such conditions and restrictions as it may determine. We may grant an award conditioned on satisfaction of certain performance criteria. Any dividends or dividend equivalents payable or credited to a participant with respect to any unvested performance-based award will be subject to the same performance goals as the shares or units underlying the performance-based award.

Plan Administration. Plan will be administered by the committee or by the Board acting as the committee. Subject to the general purposes, terms and conditions of the Plan, and to the direction of the Board, the committee will have full power to implement and carry out the Plan, except, however, the Board will establish the terms for the grant of an Award to Non-Employee Directors. Awards granted to Participants who are subject to Section 16 of the Exchange Act must be approved by two or more "non-employee directors" (as defined in the regulations promulgated under Section 16 of the Exchange Act). In accordance with the provisions of the 2024 Incentive Plan, the plan administrator determines the terms of awards, including, which employees, directors and consultants will be granted awards, the number of shares subject to each award, the vesting provisions of each award, the termination or cancellation provisions applicable to awards, and all other terms and conditions upon which each award may be granted in accordance with the 2024 Incentive Plan.

*Corporate Transactions*. In the event of a Corporate Transaction any or all outstanding Awards may be (a) continued by the Company, if the Company is the successor entity; or (b) assumed or substituted by the successor corporation, or a parent or subsidiary of the successor corporation, for substantially equivalent Awards. The successor corporation may also issue, as replacement of outstanding Shares of the Company held by the Participant, substantially similar shares or other property subject to repurchase restrictions no less favorable to the Participant. In the event such successor corporation refuses to assume, substitute or replace any Award, then notwithstanding any other provision in the Plan to the contrary, each such Award shall become fully vested and, as applicable, exercisable and any rights of repurchase or forfeiture restrictions thereon shall lapse, immediately prior to the consummation of the Corporate Transaction. Performance Awards not assumed or substituted pursuant to the foregoing shall be deemed earned and vested at 100% of target level, unless otherwise indicated pursuant to the terms and conditions of the applicable Award Agreement.

The Company, from time to time, also may substitute or assume outstanding awards granted by another company, whether in connection with an acquisition of such other company or otherwise, by either; (i) granting an Award under the Plan in substitution of such other company's award; or (ii) assuming such award as if it had been granted under the Plan if the terms of such assumed award could be applied to an Award granted under the Plan. In the event the Company assumes an award granted by another company, the terms and conditions of such award will remain unchanged. In the event the Company elects to grant a new Option in substitution rather than assuming an existing option, such new Option may be granted with a similarly adjusted Exercise Price. Substitute Awards will not reduce the number of Shares authorized for grant under the 2024 Incentive Plan or authorized for grant to a Participant in a calendar year.

In the event of a Corporate Transaction, the vesting of all Awards granted to Non-Employee Directors will accelerate and such Awards will become exercisable (as applicable) in full prior to the consummation of such event at such times and on such conditions as the Committee determines.

*Amendment and Termination*. The Board may at any time terminate or amend the Plan in any respect, including, without limitation, amendment of any form of Award Agreement or instrument to be executed pursuant to the Plan provided that no amendment requiring stockholder approval that is approved by the Board shall be effective until the approval of the stockholders of the Company is obtained, and provided that a Participant's award will continue to be governed by the version of the Plan then in effect at the time such Award was granted. No termination or amendment of the 2024 Incentive Plan or any outstanding Award may adversely affect any then outstanding Award without the consent of the Participant, unless such termination or amendment is necessary to comply with applicable law, regulation or rule.

*Duration of Plan*. The Plan will expire by its terms on February 20, 2034 (ten years from the date the 2024 Incentive Plan is adopted).

**Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters**

The following table sets forth information regarding the beneficial ownership of shares of common stock of the Company as of [●], 2026 by:

● each person known by us to be the beneficial owner of more than 5% of common stock of the Company;

● each person who is an executive officer or director of the Company; and

● all executive officers and directors of the Company, as a group.

Beneficial ownership is determined in accordance with the rules and regulations of the SEC. A person is a "beneficial owner" of a security if that person has or shares "voting power," which includes the power to vote or to direct the voting of the security, or "investment power," which includes the power to dispose of or to direct the disposition of the security, or has the right to acquire such powers within 60 days.

The beneficial ownership of shares of common stock is calculated based on [●] shares of common stock of the Company outstanding as of [●], 2026.

Unless otherwise noted in the footnotes to the following table, and subject to applicable community property laws, the persons and entities named in the table have sole voting and investment power with respect to their beneficially owned common stock.

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| | | |
|:---|:---|:---|
| **Name and Address of Beneficial Owner<sup>(1)</sup>** | **Number of<br> Shares<br> Beneficially<br> Owned** | **Percentage<br> of Shares<br> Beneficially<br> Owned** |
| ***Directors and Named Executive Officers of the Company*** | | |
| Big Lake Capital LLC (control person is Tie Li) | 80508475 | 71.2% |
| Tie (James) Li (Chairman, Chief Executive Officer and Director) | 5592581 | 4.9% |
| Zhiyi (Jonathan) Zhang<sup>(2)</sup> (President and Director) | 3516538 | 3.1% |
| George Yutuc, Chief Financial Officer | 400773 | 0.4% |
| David Sherman (Director) | 667 | .01% |
| Jon Montgomery (Director) | 167 | 0.0% |
| Charles Jourdan Hausman (Director) | 333 | 0.01% |
| **All Directors, Executive Officers, related Holding Company Totalas a Group (6 Individuals and 1 Limited Liability Company)** | 90019200 | 79.6% |

---

\* Less than one percent.

(1) Unless otherwise noted, the business address of each of the individuals is c/o Nature's Miracle Holding Inc., 3281 E. Guasti Road, Suite 175, Ontario, CA 91761.

(2) The business address of each of the individuals is 3281 E. Guasti Road, Suite 175, Ontario, CA 91761.

 ****

***Preferred Shares: The Company has issued Type A, B, C, and D Preferred Shares to various parties. They are as follows:***

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Type** | **Number Held** | **Number Held** | **Equivalent if Converted** | **Equivalent if Converted** |
| GHS Investment LLC | A |  | 288 |  | TBD |
| Big Lake Capital LLC (A) | B |  | 5000 |  | 42372881 |
| Big Lake Capital LLC | C |  | 0 (Originally 5,000. Converted) |  | Already Converted |
| Y.K. Capital Investment Inc. | D |  | 500 |  | 4237288 |

---

 ****

(A) Series
B has a 20-1 super voting right. Big Lake is controlled by Tie Li

**Equity Plan Information**

See Part II, Item 5 "*Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities*" of this Annual Report.

**Changes in Control**

See Part I, Item 1 "*Business-General*" of this Annual Report.

**Item 13. Certain Relationships and Related Transactions** 

 ****

***Related Party Loans***

On June 14, 2023, in connection with the Newtek Loan Agreement, Nature's Miracle, Nature's Miracle (California) Inc., a California corporation, Tie (James) Li, Zhiyi Zhang, Upland 858 LLC, a California LLC (each a "Newtek Guarantor," and collectively as the "Newtek Guarantors") entered into a commercial guaranty agreement (the "Newtek Guaranty") pursuant to which Guarantors guaranteed the payment of the Principal. As a consideration for entering into Newtek Guaranty, Tie (James) Li and Zhiyi Zhang each received 50,000 shares of Nature's Miracle.

**Certain Transactions of Nature's Miracle**

**September 2024 Debt Forgiveness**

On September 24, 2024,the Company entered into a trade payable forgiveness agreement with Visiontech (a wholly-owned subsidiary of the Company), Uninet Global Inc. ("Uninet"), and Nature's Miracle, Inc. (a wholly-owned subsidiary of the Company ("NMHI (DE)"), relating to the cancellation of a portion of outstanding trade payables owed by Visiontech to Uninet.

Visiontech owed Uninet a trade payable in the amount of $2,713,073 as of June 30, 2024. Pursuant to the trade payable forgiveness agreement, Uninet agreed to cancel the outstanding trade payable of $2,135,573, leaving a remaining balance of $577,500 still payable by Visiontech to Uninet (the "September 2024 Debt Forgiveness").

Zhiyi (Jonathan) Zhang, the former President, Director, is also the sole owner of Uninet.

**Related Party Transactions Policy**

The Company board of directors has adopted a written Related Party Transactions Policy that sets forth the Company's policies and procedures regarding the identification, review, consideration and oversight of "related party transactions." For purposes of the policy only, a "related party transaction" is any financial transaction, arrangement or relationship in which (a) the Company or one of its subsidiaries is a participant, and (b) any Related Person has or will have a direct or indirect material interest.

A "related party" is a director (including a nominee), senior manager, 5% shareholder, primary business affiliation, and immediate family member of a director or senior manager, or of a 5% shareholder if such shareholder is a natural person, and any individual (other than a tenant or an employee) sharing the household of such person.

The board shall be responsible for the review, approval or ratification of the following related party transactions: any related party transaction in which a director, an immediate family member of a director, a 5% shareholder, or if such 5% shareholder is a natural person, an immediate family member of such 5% shareholder has a material interest. any related party transaction with a value of $1,000,000 or more in which a senior manager or an immediate family member of a senior manager has a material interest. No director shall participate in any discussion or approval of a related party transaction for which he or she or any member of his or her immediate family member is a related person, except that the director shall provide all material information concerning the related party transaction to the board.

Employment of senior managers, certain transactions with other companies, ordinary course transactions, transactions where all shareholders receive proportional benefits, shall be deemed to be pre-approved or ratified, even if the aggregate amount involved exceeds $1,000,000 shall not require review or approval by the board.

The board shall take into account, among other factors it deems appropriate, whether the related party transaction is entered into on terms no less favorable to the Company than terms generally available to an unaffiliated third-party under the same or similar circumstances; the results of an appraisal, if any; whether there was a bidding process and the results thereof; review of the valuation methodology used and alternative approaches to valuation of the transaction; and the extent of the Related Person's interest in the transaction.

**Code of Ethics of the Company**

The Company's code of ethics requires it to avoid, wherever possible, all related party transactions that could result in actual or potential conflicts of interests, except under guidelines approved by the board of directors (or the audit committee). A conflict of interest situation can arise when a person takes actions or has interests that may make it difficult to perform his or her work objectively and effectively. Conflicts of interest may also arise if a person, or a member of his or her family, receives improper personal benefits as a result of his or her position.

The Company's board of directors, pursuant to its written related party transactions policy, is responsible for reviewing and approving related-party transactions to the extent we enter into such transactions. All ongoing and future transactions between the Company and any of its officers and directors or their respective affiliates will be on terms believed by the Company to be no less favorable to it than are available from unaffiliated third parties. Such transactions will require prior approval by the Company's board of directors. The Company will not enter into any such transaction unless its board of directors determines that the terms of such transaction are no less favorable to the Company than those that would be available to the Company with respect to such a transaction from unaffiliated third parties. Additionally, the Company will require each of our directors and executive officers to complete a directors' and officers' questionnaire that elicits information about related party transactions.

These procedures are intended to determine whether any such related party transaction impairs the independence of a director or presents a conflict of interest on the part of a director, employee or officer.

**Item 14. Principal Accountant Fees and Services.**

**Audit and Non-Audit Fees**

Audit services provided by WWC, P.C. for fiscal year ended December 31, 2025 and December 31, 2024 included the examination of the consolidated financial statements of the Company. and services related to periodic filings made with the SEC.

***Audit Fees***

WWC's audit fee for the year ended December 31, 2025 and 2024 was $216,000 and $425,928, respectively. The fees for 2024 included special consents to S-1 offerings by the Company.

***Audit-Related Fees***

No audit-related fees were incurred for the years ended December 31, 2025 and 2024.

***Tax Fees***

No tax fees were incurred for the years ended December 31, 2025 and 2024.

The aggregate fees billed for the most recently completed fiscal year ended December 31, 2025 and 2024 for professional services rendered by the principal accountant for the audit of our annual financial statements included in this and services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for these fiscal periods were as follows:

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| | | |
|:---|:---|:---|
|  | **Fiscal Year Ended <br> December 31,** | **Fiscal Year Ended <br> December 31,** |
|  | **2025** | **2024** |
| Audit Fees | $216000 | $425928 |
| Audit-Related Fees<sup>(1)</sup> | [●] |  |
| Tax Fees | [●] |  |
| All Other Fees | [●] | - |
| **Total** | $216000 | $425928 |

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(1) Fees incurred in conjunction with consents and service performed for various registration statements filed during the year ended December 31, 2024.

Audit fees consist of fees related to professional services rendered in connection with the audit of our annual financial statements. All other fees relate to professional services rendered in connection with the review of the quarterly financial statements.

**Pre-Approval Policy**

Our audit committee was formed upon the consummation of our IPO. As a result, the audit committee did not pre-approve all of the foregoing services, although any services rendered prior to the formation of our audit committee were approved by our board of directors. Since the formation of our audit committee, and on a going-forward basis, the audit committee has and will pre-approve all auditing services and permitted non-audit services to be performed for us by our auditors, including the fees and terms thereof (subject to the de minimis exceptions for non-audit services described in the Exchange Act which are approved by the audit committee prior to the completion of the audit).

**PART IV**

**Item 15. Exhibits; Financial Statement Schedules.**

The following documents are filed as part of this Annual Report:

1.  ***Financial Statements*** : The following Financial Statements and Supplementary Data of Nature's Miracle Holding Inc. and the Report of Independent Registered Public Accounting Firm included in Part II, Item 8:

● Consolidated Balance Sheets at December 31, 2025 and 2024;

● Consolidated Statements of Operations and Other Comprehensive Loss for the years ended December 31, 2025 and 2024;

● Consolidated Statements of Changes in Stockholders' Deficit for the years ended December 31, 2025 and 2024;

● Consolidated Statements of Cash Flows for the years ended December 31, 2025 and 2024; and

● Notes to Financial Statements.

2.  ***Exhibits*** :

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| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 2.1† | [Merger Agreement dated as of September 9, 2022, by and between Lakeshore Acquisition II Corp., LBBB Merger Sub Inc., RedOne Investment Limited, Tie (James) Li and Nature's Miracle Inc. (incorporated by reference to Exhibit 2.1 to the Company's Registration Statement on S-4/A (File No. 333-268343), initially filed with the SEC on November 14, 2022).](https://www.sec.gov/Archives/edgar/data/1947861/000121390024006667/fs42023a7_lbbbmerger.htm#T9940) |
| 2.2 | [Amendment No. 1 to Merger Agreement dated as of June 7, 2023, by and between Lakeshore Acquisition II Corp., LBBB Merger Sub Inc., RedOne Investment Limited, Tie (James) Li and Nature's Miracle Inc. (incorporated by reference to Exhibit 2.2 to the Company's Registration Statement on S-4/A (File No. 333-268343), initially filed with the SEC on November 14, 2022).](https://www.sec.gov/Archives/edgar/data/1947861/000121390024006667/fs42023a7_lbbbmerger.htm#T7001) |
| 2.3 | [Amendment No. 2 to Merger Agreement dated as of December 8, 2023, by and between Lakeshore Acquisition II Corp., LBBB Merger Sub Inc., RedOne Investment Limited, Tie (James) Li and Nature's Miracle Inc. (incorporated by reference to Exhibit 2.3 to the Company's Registration Statement on S-4/A (File No. 333-268343), initially filed with the SEC on November 14, 2022).](https://www.sec.gov/Archives/edgar/data/1947861/000121390024006667/fs42023a7_lbbbmerger.htm#T7002) |
| 3.1 | [Amended and Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to Company's Current Report on Form 8-K filed with the Securities & Exchange Commission on March 15, 2024).](http://www.sec.gov/Archives/edgar/data/1947861/000121390024023074/ea020170401ex3-1_natures.htm) |
| 3.2 | [Amended and Restated Bylaws of the Company (incorporated by reference to Exhibit 3.2 to Company's Current Report on Form 8-K filed with the Securities & Exchange Commission on March 15, 2024).](http://www.sec.gov/Archives/edgar/data/1947861/000121390024023074/ea020170401ex3-2_natures.htm) |
| 4.1 | [Warrant Agreement, dated March 8, 2022, by and between LBBB and Continental Stock Transfer & Trust Company (incorporated by reference to Exhibit 4.1 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on March 14, 2022)](http://www.sec.gov/Archives/edgar/data/1867287/000110465922033407/tm229174d1_ex4-1.htm) |
| 4.2 | [Rights Agreement, dated March 8, 2022, by and between LBBB and Continental Stock Transfer & Trust Company (incorporated by reference to Exhibit 4.2 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on March 14, 2022)](http://www.sec.gov/Archives/edgar/data/1867287/000110465922033407/tm229174d1_ex4-2.htm) |
| 4.3 | [Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.1 to the Company's Registration Statement on S-4/A (File No. 333-268343), initially filed with the SEC on November 14, 2022).](https://www.sec.gov/Archives/edgar/data/1947861/000121390024004606/fs42023a6ex4-1_lbbb.htm) |
| 4.4 | [Specimen Warrant Certificate (incorporated by reference to Exhibit 4.2 to the Company's Registration Statement on S-4/A (File No. 333-268343), initially filed with the SEC on November 14, 2022).](https://www.sec.gov/Archives/edgar/data/1947861/000121390024004606/fs42023a6ex4-2_lbbb.htm) |
| 4.6 | [Warrant Agreement dated as of March 8, 2022, by and between the Company and Continental Stock Transfer & Trust Company (incorporated by reference to Exhibit 4.1 to Lakeshore's Current Report on Form 8-K filed with the Securities & Exchange Commission on March 14, 2022).](http://www.sec.gov/Archives/edgar/data/1867287/000110465922033407/tm229174d1_ex4-1.htm) |
| 4.7 | [Rights Agreement dated as of March 8, 2022, by and between the Company and Continental Stock Transfer & Trust Company (incorporated by reference to Exhibit 4.2 to Lakeshore's Current Report on Form 8-K filed with the Securities & Exchange Commission on March 14, 2022).](http://www.sec.gov/Archives/edgar/data/1867287/000110465922033407/tm229174d1_ex4-2.htm) |
| 4.5\* | Description of Registrant's Securities |
| 10.1 | [Letter Agreement, dated March 8, 2022, by and among LBBB, its officers and directors (incorporated by reference to Exhibit 10.1 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on March 14, 2022).](http://www.sec.gov/Archives/edgar/data/1867287/000110465922033407/tm229174d1_ex10-1.htm) |

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10.2 [Letter Agreement, dated March 8, 2022, by and among LBBB and the Sponsor (incorporated by reference to Exhibit 10.2 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on March 14, 2022)](http://www.sec.gov/Archives/edgar/data/1867287/000110465922033407/tm229174d1_ex10-2.htm)

10.3 [Investment Management Trust Agreement, dated March 8, 2022, by and between LBBB and Continental Stock Transfer & Trust Company (incorporated by reference to Exhibit 10.2 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on March 14, 2022)](https://www.sec.gov/Archives/edgar/data/1867287/000110465922033407/tm229174d1_ex10-3.htm)

10.4 [Registration Rights Agreement, dated March 8, 2022, by and among LBBB and certain security holders (incorporated by reference to Exhibit 10.4 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on March 14, 2022)](http://www.sec.gov/Archives/edgar/data/1867287/000110465922033407/tm229174d1_ex10-4.htm)

10.5 [Indemnity Agreement, dated as of March 8, 2022, by and between LBBB and each of the officers and directors of LBBB (incorporated by reference to Exhibit 10.5 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on March 14, 2022)](http://www.sec.gov/Archives/edgar/data/1867287/000110465922033407/tm229174d1_ex10-5.htm)

10.6 [Private Placement Securities Subscription Agreement by and between LBBB and RedOne Investment Limited (incorporated by reference to Exhibit 10.6 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on March 14, 2022)](http://www.sec.gov/Archives/edgar/data/1867287/000110465922033407/tm229174d1_ex10-6.htm)

10.7 [Form of Purchaser Support Agreement (incorporated by reference to Exhibit 10.1 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on September 12, 2022)](http://www.sec.gov/Archives/edgar/data/1867287/000110465922099028/tm2225525d1_ex10-1.htm)

10.8 [Form of Voting and Support Agreement (incorporated by reference to Exhibit 10.2 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on September 12, 2022)](http://www.sec.gov/Archives/edgar/data/1867287/000110465922099028/tm2225525d1_ex10-2.htm)

10.9 [Form of Lock-Up Agreement (incorporated by reference to Exhibit 10.3 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on September 12, 2022)](http://www.sec.gov/Archives/edgar/data/1867287/000110465922099028/tm2225525d1_ex10-3.htm)

10.10 [Form of Non-Competition and Non-Solicitation Agreement (incorporated by reference to Exhibit 10.4 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on September 12, 2022)](http://www.sec.gov/Archives/edgar/data/1867287/000110465922099028/tm2225525d1_ex10-4.htm)

10.11 [Form of Voting Agreement (incorporated by reference to Exhibit 10.5 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on September 12, 2022)](http://www.sec.gov/Archives/edgar/data/1867287/000110465922099028/tm2225525d1_ex10-5.htm)

10.12 [Form of Loan Agreement (incorporated by reference to Exhibit 10.5 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on September 12, 2022)](http://www.sec.gov/Archives/edgar/data/1867287/000110465922099028/tm2225525d1_ex10-5.htm)

10.13 [Standby Equity Purchase Agreement dated April 10, 2023 (incorporated by reference to Exhibit 3.1 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on April 10, 2023)](https://www.sec.gov/Archives/edgar/data/1867287/000121390023028852/ea176781ex10-1_lakeacq2.htm)

10.14 [Form of Loan Agreement (incorporated by reference to Exhibit 3.1 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on March 15, 2023).](https://www.sec.gov/Archives/edgar/data/1867287/000121390023020322/ea175165ex10-1_lakeacq2.htm)

10.15 [Promissory Note, dated June 8, 2023 (incorporated by reference to Exhibit 10.1 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on June 9, 2023)](http://www.sec.gov/Archives/edgar/data/1867287/000121390023047830/ea180085ex10-1_lakeshore2.htm)

10.16 [Amendment No. 1 to Standby Equity Purchase Agreement dated June 12, 2023 (incorporated by reference to Exhibit 10.1 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on June 14, 2023).](http://www.sec.gov/Archives/edgar/data/1867287/000121390023048931/ea180349ex10-1_lakeacq2.htm)

10.17 [Promissory Note, dated July 7, 2023 (incorporated by reference to Exhibit 10.1 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on July 10, 2023).](http://www.sec.gov/Archives/edgar/data/1867287/000121390023055989/ea181593ex10-1_lakeacq2.htm)

10.18 [Form of Loan Agreement (incorporated by reference to Exhibit 10.1 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on July 12, 2023)](http://www.sec.gov/Archives/edgar/data/1867287/000121390023056469/ea181657ex10-1_lakeshore2.htm)

10.19 [Promissory Note, dated July 7, 2023 (incorporated by reference to Exhibit 10.1 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on July 10, 2023).](http://www.sec.gov/Archives/edgar/data/1867287/000121390023055989/ea181593ex10-1_lakeacq2.htm)

10.20 [Form of Loan Agreement (incorporated by reference to Exhibit 10.1 to LBBB's Current Report on Form 8-K filed with the Securities & Exchange Commission on July 12, 2023)](http://www.sec.gov/Archives/edgar/data/1867287/000121390023056469/ea181657ex10-1_lakeshore2.htm)

10.21 [Convertible Promissory Note, dated August 10, 2023 (incorporated by reference to Exhibit 10.1 to Lakeshore's Current Report on Form 8-K filed with the Securities & Exchange Commission on August 10, 2023)](http://www.sec.gov/Archives/edgar/data/1867287/000121390023065617/ea183268ex10-1_lakeshore2.htm)

10.22 [Convertible Promissory Note, dated September 11, 2023 (incorporated by reference to Exhibit 10.1 to Lakeshore's Current Report on Form 8-K filed with the Securities & Exchange Commission on September 11, 2023)](http://www.sec.gov/Archives/edgar/data/1867287/000121390023075785/ea185022ex10-1_lakeshore2.htm)

10.23 [Promissory Note, dated September 22, 2023 (incorporated by reference to Exhibit 10.5 to Lakeshore's Quarterly Report on Form 10-Q filed with the Securities & Exchange Commission on November 17, 2023).](https://www.sec.gov/Archives/edgar/data/0001867287/000121390023084299/f10q0923ex10-5_lakeshore2.htm)

10.24 [Promissory Note, dated October 11, 2023 (incorporated by reference to Exhibit 10.1 to Lakeshore's Current Report on Form 8-K filed with the Securities & Exchange Commission on October 11, 2023).](http://www.sec.gov/Archives/edgar/data/1867287/000101376223003221/ea186628ex10-1_lakeshore2.htm)

10.25 [Promissory Note, dated November 9, 2023 (incorporated by reference to Exhibit 10.1 to Lakeshore's Current Report on Form 8-K filed with the Securities & Exchange Commission on November 9, 2023).](https://www.sec.gov/Archives/edgar/data/0001867287/000121390023085231/ea188016ex10-1_lakes2.htm)

10.26 [Promissory Note, dated December 7, 2023 (incorporated by reference to Exhibit 10.1 to Lakeshore's Current Report on Form 8-K filed with the Securities & Exchange Commission on December 11, 2023).](https://www.sec.gov/Archives/edgar/data/0001867287/000121390023094723/ea189798ex10-1_lakes2.htm)

---

| | |
|:---|:---|
| 10.27 | [Amendment No. 2 to Standby Equity Purchase Agreement dated December 11, 2023 (incorporated by reference to Exhibit 10.1 to Lakeshore's Current Report on Form 8-K filed with the Securities & Exchange Commission on December 22, 2023).](https://www.sec.gov/Archives/edgar/data/0001867287/000121390023098208/ea190598ex10-1_lakes2.htm) |
| 10.28 | [Promissory Note, dated January 8, 2024 (incorporated by reference to Exhibit 10.1 to Lakeshore's Current Report on Form 8-K filed with the Securities & Exchange Commission on January 9, 2024).](https://www.sec.gov/Archives/edgar/data/0001867287/000121390024002301/ea191369ex10-1_lakes2.htm) |
| 10.29 | [Promissory Note, dated February 6, 2024 (incorporated by reference to Exhibit 10.1 to Lakeshore's Current Report on Form 8-K filed with the Securities & Exchange Commission on February 9, 2024).](https://www.sec.gov/Archives/edgar/data/0001867287/000121390024012087/ea193149ex10-1_lakes2.htm) |
| 10.30 | [Form of Indemnification Agreement entered into between the Company and each of the Company's officers and directors on March 11, 2024 (incorporated by reference to Exhibit 10.1 to Company's Current Report on Form 8-K filed with the Securities & Exchange Commission on March 15, 2024).](https://www.sec.gov/Archives/edgar/data/1947861/000121390024023074/ea020170401ex10-1_natures.htm) |
| 10.31 | [Registration Rights Agreement dated as of March 11, 2024, by and between the Company and each party listed under Holder on the signature pages thereto (incorporated by reference to Exhibit 10.2 to Company's Current Report on Form 8-K filed with the Securities & Exchange Commission on March 15, 2024).](https://www.sec.gov/Archives/edgar/data/1947861/000121390024023074/ea020170401ex10-2_natures.htm) |
| 10.32 | [Form of Lock-Up Agreement entered into between the Company and each of the Company's officers and directors (incorporated by reference to Exhibit 10.3 to Lakeshore's Current Report on Form 8-K filed with the Securities & Exchange Commission on September 12, 2022).](http://www.sec.gov/Archives/edgar/data/1867287/000110465922099028/tm2225525d1_ex10-3.htm) |
| 10.33 | [Form of Non-Competition and Non-Solicitation Agreement (incorporated by reference to Exhibit 10.4 to Company's Current Report on Form 8-K filed with the Securities & Exchange Commission on March 15, 2024)](https://www.sec.gov/Archives/edgar/data/1947861/000121390024023074/ea020170401ex10-4_natures.htm) |
| 10.34+ | [Nature's Miracle Holding Inc. 2024 Equity Incentive Plan (incorporated by reference to Exhibit 10.5 to Company's Current Report on Form 8-K filed with the Securities & Exchange Commission on March 15, 2024).](https://www.sec.gov/Archives/edgar/data/1947861/000121390024023074/ea020170401ex10-5_natures.htm) |
| 14.1\*\*\* | [Code of Ethics filed as Exhibit 14.1 to the Annual Report on Form 10-K on April 16, 2024](https://www.sec.gov/Archives/edgar/data/1947861/000121390024033428/ea020367801ex14-1_natures.htm) |
| 21.1 | [Subsidiaries of Nature's Miracle Holding Inc. (incorporated by reference to Exhibit 21.1 to the Company's Registration Statement on S-4/A (File No. 333-268343), initially filed with the SEC on January 19, 2024).](https://www.sec.gov/Archives/edgar/data/1947861/000121390024004606/fs42023a6ex21-1_lbbb.htm) |
| 24.1 | [Power of Attorney (incorporated by reference to the signature page of this Annual Report on Form 10-K)](#a_030) |
| 31.1\* | [Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14 and Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ea028425201ex31-1.htm) |
| 31.2\* | [Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14 and Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ea028425201ex31-2.htm) |
| 32.1\*\* | [Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ea028425201ex32-1.htm) |
| 97.1\*\*\* | [Clawback Policy, filed as Exhibit 97.1 to the Annual Report on Form 10-K on April 16, 2024](https://www.sec.gov/Archives/edgar/data/1947861/000121390024033428/ea020367801ex97-1_natures.htm) |
| 99.1\*\*\* | [Audit Committee Charter filed as Exhibit 99.1 to the Annual Report on Form 10-K on April 16, 2024](https://www.sec.gov/Archives/edgar/data/1947861/000121390024033428/ea020367801ex99-1_natures.htm) |
| 99.2\*\*\* | [Compensation Committee Charter filed as Exhibit 99.2 to the Annual Report on Form 10-K on April 16, 2024](https://www.sec.gov/Archives/edgar/data/1947861/000121390024033428/ea020367801ex99-2_natures.htm) |
| 99.3\*\*\* | [Nominating and Corporate Governance Committee Charter filed as Exhibit 99.3 to the Annual Report on Form 10-K on April 16, 2024](https://www.sec.gov/Archives/edgar/data/1947861/000121390024033428/ea020367801ex99-3_natures.htm) |
| 101 | Interactive Data Files |
| 101.INS | Inline XBRL Instance Document |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

+ Indicates management contract or compensatory plan.

† Annexes, schedules and exhibits to this Exhibit omitted pursuant to Item 601(a)(5) of Regulation S-K. The Registrant agrees to furnish supplementally a copy of any omitted schedule or exhibit to the SEC upon request.

\* Filed herewith.

\*\* Furnished herewith and not to be incorporated by reference into any filing of Nature's Miracle Holding Inc. under the Securities Act or the Exchange Act whether made before or after the date of this Annual Report.

\*\*\* As previously filed.

**Item 16. Form 10-K Summary**

None.

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on April 15, 2026, 2026.

---

| | |
|:---|:---|
| **NATURE'S MIRACLE HOLDING INC.** | **NATURE'S MIRACLE HOLDING INC.** |
| By: | */s/ Tie (James) Li* |
|  | Tie (James) Li, Chief Executive Officer |

---

---

| | | |
|:---|:---|:---|
| **Name** | **Position** | **Date** |
| */s/ Tie (James) Li* | Chief Executive Officer and Chairperson of the Board of Directors | April 15, 2026 |
| Tie (James) Li | (Principal Executive Officer) |  |
| */s/ George Yutuc* | Chief Financial Officer and Chief Operating Officer | April 15, 2026 |
| George Yutuc | (Principal Financial and Accounting Officer) |  |
| */s/ Jinlong (Frank) Du* | President and Director | April 15, 2026 |
| Jinlong (Frank) Du |  |  |
| */s/ Charles Jourdan Hausman* | Director | April 15, 2026 |
| Charles Jourdan Hausman |  |  |
| */s/ H. David Sherman* | Director | April 15, 2026 |
| H. David Sherman |  |  |
| */s/ Jon M. Montgomery* | Director | April 15, 2026 |
| Jon M. Montgomery |  |  |

---

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION**

I, Tie (James) Li, certify that:

1. I have reviewed this report on Form 10-K of Nature's Miracle Holding 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 consolidated 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)) 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;

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 consolidated financial statements for external purposes in accordance with generally accepted accounting principles;

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

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.

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 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

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.

---

| |
|:---|
| */s/ Tie (James) Li* |
| Tie (James) Li |
| Chief Executive Officer |
| April 15, 2026 |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION**

I, George Yutuc, certify that:

1. I have reviewed this report on Form 10-K of Nature's Miracle Holding 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 consolidated 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)) 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;

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 consolidated financial statements for external purposes in accordance with generally accepted accounting principles;

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

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.

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 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

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.

---

| |
|:---|
| */s/ George Yutuc* |
| George Yutuc |
| Chief Financial Officer |
| April 15, 2026 |

---

## Exhibit 32.1

**Exhibit 32.1**

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

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

In connection with the Annual Report of Nature's Miracle Holding Inc. (the "Company") on Form 10-K for the year ending December 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (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 to his knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;(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 operations of the Company.

---

| |
|:---|
| */s/ Tie (James) Li* |
| Tie (James) Li |
| Chief Executive Officer |
| April 15, 2026 |
| */s/ George Yutuc* |
| George Yutuc |
| Chief Financial Officer |
| April 15, 2026 |

---