# EDGAR Filing Document

**Accession Number:** 0001412095
**File Stem:** 0001104659-26-052000
**Filing Date:** 2026-4
**Character Count:** 592962
**Document Hash:** ea3ce20893b7b0b8bc5c4baed42adc9d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-052000.hdr.sgml**: 20260430

**ACCESSION NUMBER**: 0001104659-26-052000

**CONFORMED SUBMISSION TYPE**: 20-F

**PUBLIC DOCUMENT COUNT**: 120

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260430

**DATE AS OF CHANGE**: 20260430

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Troops, Inc. /Cayman Islands/
- **CENTRAL INDEX KEY:** 0001412095
- **STANDARD INDUSTRIAL CLASSIFICATION:** MISCELLANEOUS BUSINESS CREDIT INSTITUTION [6159]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 20-F
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35016
- **FILM NUMBER:** 26919739

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** UNIT A, 18/F, 8 FUI YIU KOK STREET,
- **STREET 2:** TSUEN WAN
- **CITY:** NEW TERRITORIES HONG KONG
- **PROVINCE COUNTRY:** F4
- **BUSINESS PHONE:** 852 2153 3957

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** UNIT A, 18/F, 8 FUI YIU KOK STREET,
- **STREET 2:** TSUEN WAN
- **CITY:** NEW TERRITORIES HONG KONG
- **PROVINCE COUNTRY:** F4

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TROO, Inc.
- **DATE OF NAME CHANGE:** 20211117

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SGOCO Group, Ltd.
- **DATE OF NAME CHANGE:** 20110105

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SGOCO Technology, Ltd.
- **DATE OF NAME CHANGE:** 20100527

?xml version='1.0' encoding='ASCII'? TROOPS, Inc._December 31, 2025

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

------

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

**FORM 20-F**

(Mark one)

☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

---

| | |
|:---|:---|
| ☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|  | For the fiscal year ended December 31, 2025 |

---

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

OR

---

| | |
|:---|:---|
| ☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|  | Date of event requiring this shell company report: |
|  | For the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; |

---

Commission file number: 1-35016.

**TROOPS, Inc.**

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

N/A

(Translation of registrant's name into English)

Cayman Islands

(Jurisdiction of incorporation or organization)

Unit A, 18/F, 8 Fui Yiu Kok Street, Tsuen Wan, New Territories,

Hong Kong

(Address of principal executive offices)

Chung Hang Lui, Chief Financial Officer

Tel: +852 2153-3957;

Unit A, 18/F, 8 Fui Yiu Kok Street, Tsuen Wan, New Territories,

Hong Kong

(Name, Telephone, E-mail and/or Facsimile Number and Address of Company Contact Person)

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

---

| | | |
|:---|:---|:---|
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
| Ordinary shares, par value $0.004 per share | TROO | The NASDAQ Stock Market, LLC |

---

Securities registered or to be registered pursuant to Section 12(g) of the Act:

Warrants, each to purchase one ordinary share

Title of Class

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

None

The registrant had 122,160,166 ordinary shares issued and outstanding as of December 31, 2025.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

☐ Yes &nbsp;&nbsp;&nbsp;&nbsp; ☒ No

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

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

☐ Yes &nbsp;&nbsp;&nbsp;&nbsp; ☒ 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 &nbsp;&nbsp;&nbsp;&nbsp; ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒ Yes &nbsp;&nbsp;&nbsp;&nbsp; ☐ No

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

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

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

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

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 included 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 which basis of accounting the registrant has used to prepare the financial statements included in this filing:

☒ U.S. GAAP ☐ International Financial ReportingStandards as issued by the InternationalAccounting Standards Board ☐ Other

If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

☐ &nbsp;&nbsp;&nbsp;&nbsp; Item 17&nbsp;&nbsp;&nbsp;&nbsp; ☐ &nbsp;&nbsp;&nbsp;&nbsp; Item 18

If this is an Annual Report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes &nbsp;&nbsp;&nbsp;&nbsp; ☒ No

------

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

#### **TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [FORWARD-LOOKING STATEMENTS](#FORWARDLOOKINGSTATEMENTS_524349) | 3 |
| [DEFINITIONS](#DEFINITIONS_676490) | 7 |
| [PART I](#PARTI_75985) | 9 |
| &nbsp;&nbsp;&nbsp;[ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS](#ITEM1IDENTITYOFDIRECTORSSENIORMANAGEMENT) | 12 |
| &nbsp;&nbsp;&nbsp;[ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE](#ITEM2OFFERSTATISTICSANDEXPECTEDTIMETABLE) | 13 |
| &nbsp;&nbsp;&nbsp;[ITEM 3. KEY INFORMATION](#ITEM3KEYINFORMATION_269704) | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;[A. Selected Financial Data.](#ASelectedFinancialData_344446) | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;[B. Capitalization and Indebtedness.](#BCapitalizationandIndebtedness_710033) | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;[C. Reason for the Offer and Use of Proceeds.](#CReasonfortheOfferandUseofProceeds_91419) | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;[D. Risk Factors.](#DRiskFactors_493431) | 14 |
| &nbsp;&nbsp;&nbsp;[ITEM 4. INFORMATION ON THE COMPANY](#ITEM4INFORMATIONONTHECOMPANY_124255) | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;[A. History and Development of the Company.](#AHistoryandDevelopmentoftheCompany_20333) | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;[B. Business overview.](#BBusinessoverview_203729) | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;[C. Regulations.](#CRegulations_464842) | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;[D. Organizational structure.](#DOrganizationalstructure_711701) | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;[E. Property, plant and equipment.](#EPropertyplantandequipment_270104) | 52 |
| &nbsp;&nbsp;&nbsp;[ITEM 4A. UNRESOLVED STAFF COMMENTS](#ITEM4AUNRESOLVEDSTAFFCOMMENTS_77881) | 52 |
| &nbsp;&nbsp;&nbsp;[ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS](#ITEM5OPERATINGANDFINANCIALREVIEWANDPROSP) | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;[A. Operating results.](#AOperatingresults_994465) | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;[B. Liquidity and capital resources.](#BLiquidityandcapitalresources_671760) | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;[C. Research and development, patents and licenses, etc.](#CResearchanddevelopmentpatentsandlicense) | 68 |
| &nbsp;&nbsp;&nbsp;&nbsp;[D. Trend information.](#DTrendinformation_295588) | 68 |
| &nbsp;&nbsp;&nbsp;&nbsp;[E. Off-balance sheet arrangements.](#EOffbalancesheetarrangements_211075) | 68 |
| &nbsp;&nbsp;&nbsp;&nbsp;[F. Tabular disclosure of contractual obligations.](#FTabulardisclosureofcontractualobligatio) | 69 |
| &nbsp;&nbsp;&nbsp;[ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES](#ITEM6DIRECTORSSENIORMANAGEMENTANDEMPLOYE) | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp;[A. Directors and senior management.](#ADirectorsandseniormanagement_140773) | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp;[B. Compensation.](#BCompensation_935394) | 71 |
| &nbsp;&nbsp;&nbsp;&nbsp;[C. Board Practices.](#CBoardPractices_270992) | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;[D. Employees.](#DEmployees_800151) | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;[E. Share Ownership.](#EShareOwnership_72570) | 76 |
| &nbsp;&nbsp;&nbsp;[ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS](#ITEM7MAJORSHAREHOLDERSANDRELATEDPARTYTRA) | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;[A. Major Shareholders.](#AMajorShareholders_649162) | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;[B. Related Party Transactions.](#BRelatedPartyTransactions_488557) | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;[C. Interests of Experts and Counsel](#CInterestsofExpertsandCounsel_169030) | 79 |
| &nbsp;&nbsp;&nbsp;[ITEM 8. FINANCIAL INFORMATION](#ITEM8FINANCIALINFORMATION_120876) | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;[A. Consolidated Statements and Other Financial Information.](#AConsolidatedStatementsandOtherFinancial) | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;[B. Significant Changes.](#BSignificantChanges_338572) | 80 |
| &nbsp;&nbsp;&nbsp;[ITEM 9. THE OFFER AND LISTING](#ITEM9THEOFFERANDLISTING_26906) | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp;[A. Offer and Listing Details.](#AOfferandListingDetails_44242) | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp;[B. Plan of Distribution.](#BPlanofDistribution_42405) | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp;[C. Markets.](#CMarkets_527947) | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;[D. Selling Shareholders.](#DSellingShareholders_780645) | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;[E. Dilution.](#EDilution_966452) | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;[F. Expenses of the Issue.](#FExpensesoftheIssue_504192) | 81 |
| &nbsp;&nbsp;&nbsp;[ITEM 10. ADDITIONAL INFORMATION](#ITEM10ADDITIONALINFORMATION_937418) | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;[A. Share Capital.](#AShareCapital_315280) | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;[B. Memorandum and Articles of Association.](#BMemorandumandArticlesofAssociation_5392) | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;[C. Material Contracts.](#CMaterialContracts_299647) | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;[D. Exchange controls.](#DExchangecontrols_733729) | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;[E. Taxation.](#ETaxation_612178) | 81 |

---

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

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;[F. Dividends and paying agents.](#FDividendsandpayingagents_334963) | 89 |
| &nbsp;&nbsp;&nbsp;&nbsp;[G. Statement by experts.](#GStatementbyexperts_879087) | 89 |
| &nbsp;&nbsp;&nbsp;&nbsp;[H. Documents on display.](#HDocumentsondisplay_105478) | 89 |
| &nbsp;&nbsp;&nbsp;&nbsp;[I. Subsidiary Information](#ISubsidiaryInformation_343521) | 89 |
| &nbsp;&nbsp;&nbsp;[ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK](#ITEM11QUANTITATIVEANDQUALITATIVEDISCLOSU) | 90 |
| &nbsp;&nbsp;&nbsp;[ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES](#ITEM12DESCRIPTIONOFSECURITIESOTHERTHANEQ) | 93 |
| [PART II](#PARTII_167619) | 93 |
| &nbsp;&nbsp;&nbsp;[ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES](#ITEM13DEFAULTSDIVIDENDARREARAGESANDDELIN) | 93 |
| &nbsp;&nbsp;&nbsp;[ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS](#ITEM14MATERIALMODIFICATIONSTOTHERIGHTSOF) | 93 |
| &nbsp;&nbsp;&nbsp;[ITEM 15. CONTROLS AND PROCEDURES](#ITEM15CONTROLSANDPROCEDURES_901885) | 93 |
| &nbsp;&nbsp;&nbsp;[ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT](#ITEM16AAUDITCOMMITTEEFINANCIALEXPERT_153) | 95 |
| &nbsp;&nbsp;&nbsp;[ITEM 16B. CODE OF ETHICS](#ITEM16BCODEOFETHICS_233144) | 95 |
| &nbsp;&nbsp;&nbsp;[ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES](#ITEM16CPRINCIPALACCOUNTANTFEESANDSERVICE) | 95 |
| &nbsp;&nbsp;&nbsp;[ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES](#ITEM16DEXEMPTIONSFROMTHELISTINGSTANDARDS) | 95 |
| &nbsp;&nbsp;&nbsp;[ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS](#ITEM16EPURCHASESOFEQUITYSECURITIESBYTHEI) | 95 |
| &nbsp;&nbsp;&nbsp;[ITEM 16F. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT](#ITEM16FCHANGESINREGISTRANTSCERTIFYINGACC) | 95 |
| &nbsp;&nbsp;&nbsp;[ITEM 16G. CORPORATE GOVERNANCE](#ITEM16GCORPORATEGOVERNANCE_675973) | 96 |
| &nbsp;&nbsp;&nbsp;[ITEM 16H. MINE SAFETY DISCLOSURE](#ITEM16HMINESAFETYDISCLOSURE_593064) | 96 |
| &nbsp;&nbsp;&nbsp;[ITEM 16J. INSIDER TRADING POLICIES](#ITEM16JINSIDERTRADINGPOLICIES_750007) | 96 |
| &nbsp;&nbsp;&nbsp;[ITEM 16K. CYBERSECURITY](#ITEM16KCYBERSECURITY_687871) | 96 |
| [PART III](#PARTIII_831933) | 97 |
| &nbsp;&nbsp;&nbsp;[ITEM 17. FINANCIAL STATEMENTS](#ITEM17FINANCIALSTATEMENTS_1186) | 97 |
| &nbsp;&nbsp;&nbsp;[ITEM 18. FINANCIAL STATEMENTS](#ITEM18FINANCIALSTATEMENTS_415532) | 97 |
| &nbsp;&nbsp;&nbsp;[ITEM 19. EXHIBITS](#ITEM19EXHIBITS_981116) | 98 |
| &nbsp;&nbsp;&nbsp;[REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM](#REPORTOFINDEPENDENTREGISTEREDPUBLICACCOU) | F-1 |
| &nbsp;&nbsp;&nbsp;[CONSOLIDATED BALANCE SHEETS](#CONSOLIDATEDBALANCESHEETS_851229) | F-5 |
| &nbsp;&nbsp;&nbsp;[CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)](#CONSOLIDATEDSTATEMENTSOFCOMPREHENSIVELOS) | F-6 |
| &nbsp;&nbsp;&nbsp;[CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY](#CONSOLIDATEDSTATEMENTSOFSHAREHOLDERSEQUI) | F-7 |
| &nbsp;&nbsp;&nbsp;[CONSOLIDATED STATEMENTS OF CASH FLOWS](#CONSOLIDATEDSTATEMENTSOFCASHFLOWS_155568) | F-8 |
| &nbsp;&nbsp;&nbsp;[NOTES TO CONSOLIDATED FINANCIAL STATEMENTS](#NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS_1) | F-9 |

---

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

#### FORWARD-LOOKING STATEMENTS
This annual report contains "forward-looking statements" that represent our beliefs, projections and predictions about future events. All statements other than statements of historical fact are "forward-looking statements," including any projections of financial items, any statements of the plans, strategies and objectives of management for future operations, any statements concerning proposed new projects or other developments, any statements regarding future economic conditions or performance, any statements of management's beliefs, goals, strategies, intentions and objectives, and any statements of assumptions underlying any of the foregoing. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar expressions, as well as statements in the future tense, identify forward-looking statements.

These statements are subjective. Therefore, they involve known and unknown risks.

They are based largely on our current expectations and projections about future events and financial trends, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results to differ materially from any future results, performance or achievements described in or implied by such statements. Actual results may differ materially from expected results described in our forward-looking statements, for reasons connected with measuring future developments, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the correct measurement and identification of factors affecting our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the extent of their likely impact; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. the accuracy and completeness of the publicly available information regarding the factors upon which our business strategy is based.

Forward-looking statements should not be read as a guarantee of future performance or results. They will not necessarily be accurate indications of whether, or the times by which, our performance or results may be achieved. Forward-looking statements are based on information available at the time those statements are made and management's belief as of that time regarding future events. Consequently, they are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements.

Important factors that could cause actual performance or results to differ materially from those contained in forward-looking statements include, but are not limited to, those factors discussed under Item 3.D. "Risk Factors" herein, including, among others:

***Risks Related to Our Business and Industry***

● Regulatory scrutiny of privacy, data protection, and the collection, storage, use, and sharing of personal data is increasing around the world. There is uncertainty associated with the legal and regulatory environment relating to privacy and data protection laws, which continue to develop in ways Riches Elites cannot predict, including with respect to evolving technologies such as cloud computing, artificial intelligence, and blockchain technology.

● Riches Elites may be liable for improper use or appropriation of personal information provided by its customers under the promulgated PRC Data Security Law.

● Security breaches and attacks against Riches Elites' systems and network, and any potentially resulting breach or failure to otherwise protect personal, confidential and proprietary information, could damage its reputation and negatively impact its business, as well as materially and adversely affect its financial condition and results of operations.

● The successful operation of Riches Elites' business depends upon the performance, reliability and security of the internet infrastructure in the countries in which it operates.

● GFS' and Riches Elites' platform could be disrupted by network interruptions.

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

● Our strategy of acquiring complementary assets, technologies and businesses may fail and result in impairment losses.

● We may be required to record a significant charge to earnings if we are required to reassess our tangible and intangible assets.

● We are exposed to the credit risks of our customers and borrowers.

● FAF and Giant Credit are subject to greater credit risks than larger lenders, which could adversely affect our results of operations.

● FAF and Giant Credit may fail to renew its money lenders license.

● The businesses of FAF and Giant Credit is affected by fluctuations in interest rates and our credit position.

● There is intense competition in the money lending industry.

● An increase to the provision for loan losses will cause the Company's net income to decrease and net loss to increase.

● Competition in the lending industry is growing and could cause us to lose market share and revenues in the future.

● FAF and Giant Credit may face regulatory hurdles in the future in connection with its lending business.

● The businesses of FAF and Giant Credit may be affected by changes in the Money Lenders Ordinance (Chapter 163 of the Laws of Hong Kong).

● Our property investment business is sensitive to downturns in the economy, economic uncertainty and particularly the performance of the real estate market in Hong Kong.

● Our revenue from our investment property portfolio depends on a number of factors, such as changes in market rental levels, competition for tenants and rental collection and renewal.

● We may not be able to secure financing needed for future operating needs on favorable terms, or on any terms at all.

● A severe or prolonged downturn in the global economy could materially and adversely affect our business and results of operations.

● If we fail to keep our fintech services technology updated as the industry evolves, our growth, revenues and business prospects may be materially and adversely affected.

● We may fail to protect our fintech services products from cyber - attacks, which may adversely affect our reputation, customer base and business.

● A portion of our revenue is generated from financial and insurance advisory services in cooperation with licensed companies. Cooperation with third parties subject us to risks.

● A portion of our revenue is generated from providing consultation services on foreign immigration schemes, as well as overseas education advisory and application services. Any change in immigration policies and overseas education requirements can affect our revenue and results of operations.

● A portion of our revenue is generated from providing property agency services. Economic volatility and market uncertainty may impact demand for the property market, potentially affecting our revenue streams and profitability.

● If we fail to protect customer data and privacy, our reputation, financial condition and results of operations will be materially and adversely affected.

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

● The audit reports for prior reporting periods included in our annual reports have been prepared by predecessor auditors whose work may not be inspected fully by the Public Company Accounting Oversight Board and, as such, you may be deprived of the benefits of such inspection.

● If we become directly subject to the recent scrutiny involving U.S. listed Chinese companies, we may have to expend significant resources to investigate and/or defend the matter, which could harm our business operations, stock price and reputation.

***Risks Related to Doing Business in Jurisdictions We Operate***

● A downturn in the Hong Kong, China or global economy, and economic and political policies of China could materially and adversely affect our business and financial condition.

● The Hong Kong legal system embodies uncertainties which could limit the legal protections available to us.

● Uncertainties with respect to the PRC legal system could adversely affect us.

● Changes in the policies, regulations, rules, and the enforcement of laws of the PRC government may be quick with little advance notice and could have a significant impact upon our ability to operate profitably in the PRC.

● The PRC government may intervene or influence our business operations at any time or may exert more control over offerings conducted overseas and foreign investment in China based issuers, which could result in a material change in our business operations or the value of our securities. Additionally, the governmental and regulatory interference could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or be worthless. We are also currently not required to obtain approval from Chinese authorities to list on U.S. exchanges, however, if we are required to obtain approval in the future and are denied permission from Chinese authorities to list on U.S. exchanges, we will not be able to continue listing on U.S. exchange, which would materially affect the interest of the investors.

● On December 28, 2021, the CAC, the National Development and Reform Commission ("NDRC"), and several other administrations jointly issued the revised Measures for Cybersecurity Review, or the "Revised Review Measures", which became effective and replaced the existing Measures for Cybersecurity Review on February 15, 2022. According to the Revised Review Measures, if an "online platform operator" that is in possession of personal data of more than one million users intends to list in a foreign country, it must apply for a cybersecurity review. Based on a set of Q&A published on the official website of the State Cipher Code Administration in connection with the issuance of the Revised Review Measures, an official of the said administration indicated that an online platform operator should apply for a cybersecurity review prior to the submission of its listing application with non-PRC securities regulators. Moreover, the CAC released the draft of the Regulations on Network Data Security Management in November 2021 for public consultation, which among other things, stipulates that a data processor listed overseas must conduct an annual data security review by itself or by engaging a data security service provider and submit the annual data security review report for a given year to the municipal cybersecurity department before January 31 of the following year. Given the recency of the issuance of the Revised Review Measures and their pending effectiveness, there is a general lack of guidance and substantial uncertainties exist with respect to their interpretation and implementation. For more information, see page 24 under *The PRC government may intervene or influence our business operations at any time or may exert more control over offerings conducted overseas and foreign investment in China based issuers, which could result in a material change in our business operations or the value of our securities. Additionally, the governmental and regulatory interference could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or be worthless. We are also currently not required to obtain approval from Chinese authorities to list on U.S. exchanges, however, if we are required to obtain approval in the future and are denied permission from Chinese authorities to list on U.S. exchanges, we will not be able to continue listing on U.S. exchange, which would materially affect the interest of the investors.* 

● Any failure of us to obtain the relevant approval or complete the filings and other relevant regulatory procedures in a timely manner could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or become worthless.

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

● Our corporate structure and being based in or having the majority of our operations in China, as well as changes in China's economic, political or social conditions or government policies could have a material adverse effect on our business and operations.

● Non-compliance with labor-related laws and regulations of the PRC may have an adverse impact on our financial condition and results of operation.

● It may be difficult, cumbersome, and time-consuming to deliver legal process documents to us or such current officers reside within China from outside of mainland China and you may experience difficulties in enforcing foreign judgments or bringing actions in China against us or our management named in the prospectus based on foreign laws.

● We may rely on dividends and other distributions on equity paid by our subsidiaries to fund any cash and financing requirements we may have, and any limitation on the ability of our subsidiaries to make payments to us, including PRC Governmental control of currency conversion and restriction on our ability to transfer or distribute cash within our organization or to foreign investors could have a material adverse effect on our ability to conduct our business and may affect the value of your investment

● If we are classified as a PRC resident enterprise for PRC income tax purposes, such classification could result in unfavorable tax consequences to us and our non-PRC shareholders

● U.S. regulatory bodies may be limited in their ability to conduct investigations or inspections of our operations in China.

● PRC regulation of loans to and direct investment in PRC entities by offshore holding companies may delay us from using the proceeds of our IPO to make loans or additional capital contributions to our PRC subsidiaries, which could materially and adversely affect our liquidity and our ability to fund and expand our business.

● Political risks associated with conducting business in Hong Kong.

● The recent joint statement by the SEC and PCAOB, proposed rule changes submitted by Nasdaq, and the Holding Foreign Companies Accountable Act all call for additional and more stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors who are not inspected by the PCAOB.

#### Risks Related to our Shares
● We are currently appealing an adverse judgment civil lawsuit in Hong Kong; if our appeal is unsuccessful, we may be unable to satisfy the judgment, which could result in the filing of a winding-up petition against us and the liquidation of our assets.

● We may fail to meet continued listing requirements on the NASDAQ Capital Market.

● A large, active trading market for our securities may not develop and the trading price for our securities may fluctuate significantly.

● The trading price of the ordinary shares is likely to be volatile, which could result in substantial losses to investors.

● Techniques employed by short sellers may drive down the market price of the ordinary shares.

● If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, the market price for the ordinary shares and trading volume could decline.

● Our memorandum and articles of association contain anti-takeover provisions that could materially adversely affect the rights of holders of our ordinary shares.

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

● We are a foreign private issuer within the meaning of the rules under the Exchange Act, and as such we are exempt from certain provisions applicable to U.S. domestic public companies.

● There can be no assurance we will not be a passive foreign investment company, for any taxable year, which could result in adverse U.S. federal income tax consequences to U.S. investors in our ordinary shares or Warrants.

● You may face difficulties in protecting your interests, and your ability to protect your rights through U.S. courts may be limited, because we are incorporated under Cayman Islands law.

● As a company incorporated in the Cayman Islands, we can adopt certain home country practices regarding corporate governance matters that differ significantly from the NASDAQ Stock Market corporate governance listing standards. These practices may provide less protection to shareholders than they would enjoy if we complied fully with the NASDAQ Stock Market corporate governance listing standards.

#### DEFINITIONS
Unless otherwise indicated and except where the context otherwise requires, the following definitions are used in this annual report:

● "Acquisition" means the business combination transaction consummated on March 12, 2010, as provided by the Share Exchange Agreement, dated as of February 12, 2010, by and among our company, Honesty Group and each of the shareholders signatory thereto, as amended by Amendment No. 1 to Share Exchange Agreement, dated March 11, 2010;

● "Apex" or "Apex Flourish Group Limited" means the British Virgin Islands Company that purchased Honesty Holdings Group Limited and SGOCO (Fujian) Electronic Co., Ltd. from TROOPS in 2011 and 2014, in what is referred to, depending on the context, as the "Sale of Honesty Group" and or the "Sale of SGOCO (Fujian)", respectively;

● "Apiguru" means Apiguru Pty Ltd., an Australia limited company and wholly owned subsidiary of Giant Financial Services Limited;

● "Beijing SGOCO" means Beijing SGOCO Image Technology Co., Ltd., a company with limited liability incorporated in China and a wholly owned subsidiary of SGOCO International;

● "Boca" means Boca International Limited, a Hong Kong limited company and a former wholly owned subsidiary of SGOCO International;

● "CSL" or "Century Skyway" means Century Skyway Limited, a Hong Kong limited company and a former wholly owned subsidiary of SGOCO International.;

● "Convertible notes" refer to a series convertible notes we issued between June and September, 2015;

● "Convertible notes 2024" refer to convertible notes we issued during 2024;

● "FAF" or "First Asia Finance" means First Asia Finance Limited, a Hong Kong limited company and wholly owned subsidiary of Vision Lane;

● "FTF" or "FOR THE FUTURE" means FOR THE FUTURE, Inc., a limited liability company registered in the Republic of Seychelles and wholly owned by TROOPS;

● "Suns Tower" means Suns Tower Limited, was changed name from First Asia Tower Limited in May 6, 2020, a Hong Kong limited company and wholly owned subsidiary of Paris Sky;

● "Giant Connection" means Giant Connection Limited, a limited liability company registered in the Republic of Seychelles and wholly owned by TROOPS;

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

● "GCL" or "Giant Credit" means Giant Credit Limited, a Hong Kong limited company and wholly owned subsidiary of Giant Connection;

● "GFS" means Giant Financial Services Limited, a Samoa company and wholly owned subsidiary of TROOPS;

● "Guancheng" means Guancheng (Fujian) Electron Technological Co. Limited, a company with limited liability incorporated in China and a wholly owned subsidiary of Honesty Group;

● "Guanke" means Guanke (Fujian) Electron Technological Industry Co. Ltd., a company with limited liability incorporated in China and a wholly owned subsidiary of Honesty Group;

● "Guanwei" means Guanwei (Fujian) Electron Technological Co. Limited, a company with limited liability incorporated in China and a wholly owned subsidiary of Honesty Group;

● "Honesty Group" means Honesty Group Holdings Limited, a Hong Kong limited company and a former wholly owned subsidiary of TROOPS, which was acquired in the Acquisition and was sold to Apex Flourish Group Limited in the Sale of Honesty Group transaction described below;

● "Jinjiang Guanke" means Jinjiang Guanke Electron Co., Ltd., a company with limited liability incorporated in China and a wholly owned subsidiary of Guanke (Fujian) Electron Technological Industry Co. Ltd.;

● "PRC" or "China" means the People's Republic of China;

● "Paris Sky" means Paris Sky Limited, a Marshall Islands company and wholly owned subsidiary of Giant Connection;

● "Sale of Honesty Group" means the transaction consummated as provided by the Sale and Purchase Agreement dated November 15, 2011, by and between our company and Apex Flourish Group Limited pursuant to which we sold our 100% ownership interest in Honesty Group to Apex Flourish Group Limited;

● "Sale of SGOCO (Fujian)" means the transaction consummated as provided by the Sale and Purchase Agreement dated December 24, 2014, by and between our company and Apex Flourish Group Limited pursuant to which we sold our 100% ownership interest in SGOCO (Fujian) Electronic Co., Ltd. to Apex Flourish Group Limited;

● "SGO" means SGO Corporation, a Delaware corporation and a wholly owned subsidiary of SGOCO International;

● "SGOCO (Fujian)" means SGOCO (Fujian) Electronic Co., Ltd., a company with limited liability incorporated in China and a former wholly owned subsidiary of SGOCO International; which was sold to Apex Flourish Group Limited in the Sale of SGOCO (Fujian) transaction described above;

● "SGOCO International" means SGOCO International (HK) Limited, a Hong Kong limited company and wholly owned subsidiary of TROOPS;

● "SGOCO Shenzhen" means SGOCO (Shenzhen) Technology Co., Ltd., a company with limited liability incorporated in China and a former wholly owned subsidiary of SGOCO International;

● "Shareholders" means the owner of the equivalent of common stock in a typical corporation organized under state and federal US law. Based on Cayman Islands' law and our current Amended and Restated Memorandum of Association and Articles of Association we are authorized to issue ordinary shares. Holders of our ordinary shares are referred to as "members" under Cayman Islands' law, rather than "shareholders." In this annual report, however, references that would otherwise be to "members" are made to "shareholders," which term is more familiar to investors on the NASDAQ Capital Market;

● "Shen Zhen Provizon" means Shen Zhen Provizon Technology Co., Limited, a company with limited liability incorporated in China and a wholly owned subsidiary of Century Skyway Limited;

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

● "TROOPS", "we," "us," "our," "the company," or "our company" means TROOPS, Inc., a company incorporated under the laws of the Cayman Islands, and, in the context of describing TROOPS, Inc.'s operation and business, its consolidated subsidiaries. TROOPS was previously named SGOCO Group, Ltd, and before that, SGOCO Technology, Ltd., and prior to the Acquisition described below, our predecessor was named Hambrecht Asia Acquisition Corp.;

● "U.S. Dollars," "dollars," "US$," or "$" means the legal currency of the United States;

● "RMB" or "Renminbi" means the legal currency of China;

● "Vision Lane" means Vision Lane Limited, a British Virgin Islands company and wholly owned subsidiary of Paris Sky; and

● "11 Hau Fook Street" means 11 Hau Fook Street Limited, a Hong Kong limited company and wholly owned subsidiary of Giant Connection;

● "Riches Holdings" means Riches Holdings Limited, a Cayman Islands limited company and wholly owned subsidiary of TROOPS;

● "Riches Advisory" means Riches Advisory Limited, a Hong Kong limited company and wholly owned subsidiary of Riches Holdings Limited;

● "Riches Property" means Riches Property Limited, a Hong Kong limited company and wholly owned subsidiary of Riches Advisory Limited;

● "Riches Finance Group" means Riches Finance Group Limited, a Hong Kong limited company and wholly owned subsidiary of Riches Advisory Limited;

● "Riches Elites" means Riches Elites Technology (Shenzhen) Co., Limited, a company with limited liability incorporated in China and wholly owned subsidiary of Riches Advisory Limited;

**The reporting and functional currency of the Company is the U.S. Dollar. The functional currencies of our Hong Kong subsidiaries are the Hong Kong Dollar, or HKD. The functional currency of our PRC subsidiaries is the RMB. The functional currencies of our Australia subsidiaries are the Australian Dollar, or AUD. Our consolidated financial statements are presented in United States dollars. In this report, we refer to assets, obligations, commitments and liabilities in our consolidated financial statements in United States dollars. These dollar references are based on the exchange rate of RMB, HKD or AUD to U.S. Dollars, determined as of a specific date or for a specific period. Changes in the exchange rate will affect the amount of our obligations and the value of our assets in terms of United States dollars which may result in an increase or decrease in the amount of our obligations (expressed in dollars) and the value of our assets, including trade receivables (expressed in dollars).**

**PART I**

**Trading in our Securities may be prohibited under the Holding Foreign Companies Accountable Act if the PCAOB determines that it cannot inspect or investigate completely our auditor, and as a result an exchange may determine to delist our Securities**

Our Ordinary Shares may be prohibited from being trading on a national exchange under the HFCA Act if the PCAOB is unable to inspect our auditors for three consecutive years beginning in 2021. In June 2021, the Senate passed the Accelerating Holding Foreign Companies Accountable Act, which, if signed into law, would reduce the time period for the delisting under the HFCA Act to two years, instead of three years. The delisting of our Ordinary Shares, or the threat of their being delisted, may materially and adversely affect the value of your investment.

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

On December 16, 2021, the PCAOB issued a report on its determinations that it was unable to inspect or investigate completely PCAOB-registered public accounting firms headquartered in Mainland China and in Hong Kong, because of positions taken by PRC authorities in those jurisdictions. The PCAOB made its determinations pursuant to PCAOB Rule 6100, which provides a framework for how the PCAOB fulfills its responsibilities under the HFCA Act. The report further listed in its Appendix A and Appendix B, Registered Public Accounting Firms Subject to the Mainland China Determination and Registered Public Accounting Firms Subject to the Hong Kong Determination, respectively.

Our current auditor, AssentSure PAC is headquartered in Singapore, and did not appear as part of the determination and was not listed under its appendix A or appendix B.

On December 15, 2022, the PCAOB determined that the PCAOB was able to secure complete access to inspect and investigate registered public accounting firms headquartered in mainland China and Hong Kong and voted to vacate its previous determinations to the contrary. However, should PRC authorities obstruct or otherwise fail to facilitate the PCAOB's access in the future, the PCAOB will consider the need to issue a new determination. Our securities may be delisted or prohibited from trading if the PCAOB determines that it cannot inspect or investigate completely our auditor under the HFCAA.

On December 29, 2022, a legislation entitled "Consolidated Appropriations Act, 2023" (the "Consolidated Appropriations Act") was signed into law by President Biden, which contained, among other things, an identical provision to Accelerating Holding Foreign Companies Accountable Act and amended the Holding Foreign Companies Accountable Act by requiring the SEC to prohibit an issuer's securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three, thus reducing the time before our Ordinary Shares may be prohibited from trading or delisted. The delisting or the cessation of trading of our Ordinary Shares, or the threat of their being delisted or prohibited from being traded, may materially and adversely affect the value of your investment.

**Transfers of Cash to and from our Subsidiaries**

TROOPS, Inc. is incorporated in Cayman Islands. As a holding company with no material operations of our own, we conduct our substantial operations through our subsidiaries in Hong Kong and we also have an indirect wholly-owned subsidiary, Beijing SGOCO with limited past operations in China. but is currently non-operating. On May 31, 2024, TROOPS completed the acquisition of Riches Holdings contemplated by the sale and purchase Agreement entered into by and between the parties in consideration for $13.4 million. Upon completion of the acquisition, Riches Elites (the subsidiary of Riches Holdings) became a PRC operating subsidiary of the Company.

Although other means are available for us to obtain financing at the holding company level, TROOPS, Inc.'s ability to pay dividends to its shareholders and to service any debt it may incur may depend upon dividends paid by our Hong Kong subsidiaries and to a limited degree, upon dividends paid by our PRC operating subsidiary.

Since the financial year ended 2018, the Company has not utilized cash generated from one subsidiary to fund another subsidiary's operations. The cash transfer among the subsidiaries is typically payment for intercompany services or intercompany loans. None of the subsidiaries have ever faced difficulties or limitation on their ability to transfer cash between subsidiaries. As of the date of this report, the Company does not have any cash management policies that dictate the amount of funding among subsidiaries.

As of the date of this report, none of our subsidiaries have ever issued any dividends or distributions to the holding company or their respective shareholders outside of Hong Kong and China.

To address persistent capital outflows and the RMB's depreciation against the U.S. dollar in the fourth quarter of 2016, the People's Bank of China and the State Administration of Foreign Exchange, or SAFE, have implemented a series of capital control measures in the subsequent months, including stricter vetting procedures for China-based companies to remit foreign currency for overseas acquisitions, dividend payments and shareholder loan repayments. The PRC government may continue to strengthen its capital controls and our PRC subsidiaries' dividends and other distributions may be subject to tightened scrutiny in the future. The PRC government also imposes controls on the conversion of RMB into foreign currencies and the remittance of currencies out of the PRC. Therefore, we may experience difficulties in completing the administrative procedures necessary to obtain and remit foreign currency for the payment of dividends from our profits, if any. Furthermore, if our subsidiaries in the PRC incur debt on their own in the future, the instruments governing the debt may restrict their ability to pay dividends or make other payments.

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

Current PRC regulations permit our PRC operating subsidiary to pay dividends to an overseas subsidiary, for example a subsidiary located in Hong Kong, SGOCO International (HK) Limited, only out of their accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. In addition, our PRC operating subsidiary is required to set aside at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered capital. PRC operating subsidiary is also required to further set aside a portion of its after-tax profits to fund the employee welfare fund, although the amount to be set aside, if any, is determined at the discretion of its board of directors. Although the statutory reserves can be used, among other ways, to increase the registered capital and eliminate future losses in excess of retained earnings of the respective companies, the reserve funds are not distributable as cash dividends except in the event of liquidation.

In the future, cash proceeds raised from overseas financing activities may be transferred by us to our Hong Kong subsidiaries and to our PRC operating subsidiary via capital contribution, as the case may be. Our PRC operating subsidiary is currently indirectly wholly-owned by the offshore holding company and none of our subsidiaries are currently indirectly owned through contractual agreements. In the future, should we establish any variable interest entity ("VIE") through contractual agreements, we intend to distribute earnings or settle amounts owed under the VIE agreements.

In order for us to pay dividends to our shareholders, we may rely on payments made by our Hong Kong subsidiaries, as well as to a limited degree on payments made from our PRC operating subsidiary to SGOCO, and the distribution of such payments to our overseas subsidiary as dividends from SGOCO International. If any of our Hong Kong subsidiaries or Beijing SGOCO incurs debt on its own behalf in the future, the instruments governing such debt may restrict their ability to pay dividends to us.

The PRC government also imposes controls on the conversion of Renminbi ("RMB"), the legal currency of the PRC, into foreign currencies and the remittance of currencies out of the PRC. Therefore, we may experience difficulties in completing the administrative procedures necessary to obtain and remit foreign currency for the payment of dividends from our profits, if any. Cash dividends, if any, on our ordinary shares will be paid in U.S. dollars. Certain payments from our PRC operating subsidiary to SGOCO International (HK) Limited are subject to PRC taxes, including business taxes and VAT. If we are considered a PRC tax resident enterprise for tax purposes, any dividends we pay to our overseas shareholders may be regarded as China-sourced income and as a result may be subject to PRC withholding tax at a rate of up to 10.0%.

Under existing PRC foreign exchange regulations, payments of current account items, including profit distributions, interest payments and expenditures from trade-related transactions can be made in foreign currencies without prior approval from SAFE by complying with certain procedural requirements. However, approval from appropriate government authorities is required where RMB is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. The PRC government may also at its discretion restrict access in the future to foreign currencies for current account transactions. If the foreign exchange control system prevents us from obtaining sufficient foreign currency to satisfy our currency demands, we may not be able to pay dividends in foreign currencies to our security-holders.

For more detailed information, see *"Risks Related to Doing Business in Jurisdictions We Operate — We may rely on dividends and other distributions on equity paid by our subsidiaries to fund any cash and financing requirements we may have, and any limitation on the ability of our subsidiaries to make payments to us, including PRC Governmental control of currency conversion and restriction on our ability to transfer or distribute cash within our organization or to foreign investors could have a material adverse effect on our ability to conduct our business and may affect the value of your investment."*

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

**PRC Limitation on Overseas Listing and Share Issuances**

Currently, we, including our subsidiaries, are not required to obtain approval from Chinese authorities, including the China Securities Regulatory Commission, or CSRC, or Cybersecurity Administration Committee, or CAC, to operate and list on U.S. exchanges or issue securities to foreign investors. If approval is required in the future and we were denied permission from Chinese authorities to list on U.S. exchanges, we will not be able to operate or to continue listing on U.S. exchange, which would materially affect the interest of the investors. It is uncertain when and whether the Company will be required to obtain permission from the PRC government to continue to operate or to list on U.S. exchanges in the future, and even when such permission is obtained, whether it will be denied or rescinded. Although we are currently not required to obtain permission from any of the PRC federal or local government and has not received any denial to list on the U.S. exchange, our operations and ability to continue to list and issue securities to foreign investors may be adversely affected in the future, directly or indirectly, by existing or future laws and regulations relating to our PRC business operations. For more detailed information, see "*Risks Related to Doing Business in Jurisdictions We Operate — The PRC government may intervene or influence our business operations at any time or may exert more control over offerings conducted overseas and foreign investment in China based issuers, which could result in a material change in our business operations or the value of our securities. Additionally, the governmental and regulatory interference could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or be worthless. We are also currently not required to obtain approval from Chinese authorities to list on U.S. exchanges, however, if we are required to obtain approval in the future and are denied permission from Chinese authorities to list on U.S. exchanges, we will not be able to continue listing on U.S. exchange, which would materially affect the interest of the investors"*

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

● we are not required to provide as many Exchange Act reports, or as frequently, as a U.S. domestic public company;

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

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

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

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

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

We intend to comply with the NASDAQ corporate governance rules applicable to foreign private issuers, which permit us to follow certain corporate governance rules that conform to the Cayman Islands requirements in lieu of many of the NASDAQ corporate governance rules applicable to U.S. companies. As a result, our corporate governance practices may differ from those you might otherwise expect from a U.S. company listed on NASDAQ.

#### ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
Not applicable.

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

#### ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE
Not applicable.

#### ITEM 3. KEY INFORMATION
A. Selected Financial Data.

The following tables set forth selected consolidated financial information for the fiscal year ended December 31, 2025, 2024 and 2023, which have been derived from our audited financial statements for those periods. Our historical results are not necessarily indicative of the results that may be expected in the future. You should read this data together with our consolidated financial statements and related notes as well as "Management's Discussion and Analysis of Financial Condition and Results of Operations" appearing elsewhere in this annual report.

#### Consolidated Statement of Income
(In thousands of U.S. dollars except share and per share data)

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| REVENUES | 17096 | 10073 | 3569 |
| COST OF REVENUES | (15532) | (8132) | (2793) |
| GROSS PROFIT | 1564 | 1941 | 776 |
| Selling expenses | (317) |  |  |
| General and administrative expenses | (17932) | (3956) | (2754) |
| Reversal of impairment loss (Impairment loss) of trade receivables | 241 | (243) |  |
| Reversal of impairment loss (Impairment loss) of loan and interest receivables | 453 | (3468) | 49 |
| Reversal of impairment loss (Impairment loss) of other receivables, prepayments and deposits | (99) | (2) | 127 |
| Impairment loss of property, plant and equipment | (13444) |  |  |
| Total operating expenses | (31098) | (7669) | (2578) |
| OPERATING LOSS  | (29534) | (5728) | (1802) |
| Interest income | 62 | 10 | 14 |
| Interest expense |  |  | (62) |
| Other income (expense), net | 65 | 22 | (9) |
| Loss on change in fair value of convertible notes |  | (7690) |  |
| Total other income (expenses), net | 127 | (7658) | (57) |
| LOSS BEFORE PROVISION FOR INCOME TAXES  | (29407) | (13386) | (1859) |
| INCOME TAX (EXPENSE) BENEFIT  | 1502 | (27) | 140 |
| NET LOSS | (27905) | (13413) | (1719) |
| Loss per share: |  |  |  |
| &nbsp;&nbsp;Basic | (0.23) | (0.13) | (0.02) |
| &nbsp;&nbsp;Diluted | (0.23) | (0.13) | (0.02) |
| &nbsp;&nbsp;Weighted average shares used in calculating loss per share: |  |  |  |
| Basic | 120705660 | 102240818 | 101597998 |
| Diluted | 120705660 | 102240818 | 101597998 |

---

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

#### Consolidated Balance Sheet Data
(In thousands of U.S. Dollars)

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** | **2023** |
| Total assets | 69066 | 79185 | 70345 |
| Total liabilities | 20042 | 10936 | 9766 |
| Total equity | 49024 | 68249 | 60579 |

---

B. Capitalization and Indebtedness.

Not applicable.

C. Reason for the Offer and Use of Proceeds.

Not applicable.

D. Risk Factors.

*You should carefully consider all the information in this annual report, including various changing regulatory, competitive, economic, political and social risks and conditions described below, before making an investment in our ordinary shares. One or more of a combination of these risks could materially impact our business, results of operations and financial condition. In any such case, the market price of our ordinary shares could decline, and you may lose all or part of your investments.*

#### Risks Relating to Our Business and Industry
***Regulatory scrutiny of privacy, data protection, and the collection, storage, use, and sharing of personal data is increasing around the world. There is uncertainty associated with the legal and regulatory environment relating to privacy and data protection laws, which continue to develop in ways Riches Elites cannot predict, including with respect to evolving technologies such as cloud computing, artificial intelligence, and blockchain technology.***

Any failure, or perceived failure, by Riches Elites to comply with its privacy policies as communicated to users prior to its collection, use, storage and transfer, and disclosure of their personal data, with applicable industry data protection or security standards, with any applicable regulatory requirements or orders, or with privacy, data protection, information security, or consumer protection-related laws and regulations in one or more jurisdictions could result in proceedings or actions against Riches Elites by data protection authorities, governmental entities or others, including class action privacy litigation in certain jurisdictions, would subject Riches Elites to significant awards, fines, penalties, judgments, and negative publicity arising from any financial or non-financial damages suffered by any individuals. This could, individually or in the aggregate, materially harm Riches Elites' business. Specifically, this would likely require Riches Elites to change its business practices, and would increase the costs and complexity of compliance. In addition, compliance with inconsistent privacy laws may restrict Riches Elites' ability to provide products and services to its customers.

***Riches Elites may be liable for improper use or appropriation of personal information provided by its customers under the recently promulgated PRC Data Security Law.***

As a result of day to day operations Riches Elites collect and retain customer data, including personal information as its various information technology systems enter, process, summarize and report such data.

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

On June 10, 2021, the Standing Committee of the National People's Congress of China, or the SCNPC, promulgated the PRC Data Security Law, which will take effect in September 2021. The PRC Data Security Law imposes data security and privacy obligations on entities and individuals carrying out data activities, and introduces a data classification and hierarchical protection system based on the importance of data in economic and social development, as well as the degree of harm it will cause to national security, public interests, or legitimate rights and interests of individuals or organizations when such data is tampered with, destroyed, leaked, or illegally acquired or used. The PRC Data Security Law also provides for a national security review procedure for data activities that may affect national security and imposes export restrictions on certain data and information.

As uncertainties remain regarding the interpretation and implementation of these laws and regulations, we cannot assure you that Riches Elites will comply with such regulations in all respects while providing its services in the PRC, and Riches Elites may be ordered to rectify or terminate any actions that are deemed illegal by regulatory authorities. Riches Elites may also become subject to fines and/or other sanctions which may have material adverse effect on our business, operations and financial condition.

In addition, Riches Elites' technology infrastructure and services, including its service offerings, incorporate third-party-developed software, systems and technologies, as well as hardware purchased or commissioned from outside and overseas suppliers. As Riches Elites' technology infrastructure and services expand and become increasingly complex, it faces increasingly serious risks to the performance and security of its technology infrastructure and services that may be caused by these third-party-developed components, including risks relating to incompatibilities among these components, service failures or delays or back-end procedures on hardware and software. Riches Elites also needs to continuously enhance its existing technology. Otherwise, Riches Elites face the risk of its technology infrastructure becoming unstable and susceptible to security breaches. This instability or susceptibility could create serious challenges to the security and uninterrupted operation of Riches Elites' platform and services, which would materially and adversely affect its business and reputation.

***Security breaches and attacks against Riches Elites' systems and network, and any potentially resulting breach or failure to otherwise protect personal, confidential and proprietary information, could damage its reputation and negatively impact its business, as well as materially and adversely affect its financial condition and results of operations*.**

Riches Elites' cybersecurity measures may not detect, prevent or control all attempts to compromise its systems, including distributed denial-of-service attacks, viruses, Trojan horses, malicious software, break-ins, phishing attacks, third-party manipulation, security breaches, employee misconduct or negligence or other attacks, risks, data leakage and similar disruptions that may jeopardize the security of data stored in and transmitted by Riches Elites' systems or that Riches Elites otherwise maintain. Breaches of Riches Elites' cybersecurity measures could result in unauthorized access to Riches Elites' systems, misappropriation of information or data, deletion or modification of user information, or a denial-of-service or other interruption to its business operations. As techniques used to obtain unauthorized access to or sabotage systems change frequently and may not be known until launched against Riches Elites or its third-party service providers, there can be no assurance that Riches Elites will be able to anticipate, or implement adequate measures to protect against, these attacks.

Riches Elites are likely to be subject to these types of attacks, breaches and data leakage. In addition, Riches Elites could be subject to an attack, breach or leakage which Riches Elites do not discover at the time or the consequences of which are not apparent until a later point in time, that could result in material damages or remediation costs. Riches Elites are unable to avert these attacks and security breaches, it could be subject to significant legal and financial liability and its reputation would be harmed. Riches Elites may not have the resources or technical sophistication to anticipate or prevent rapidly-evolving cyber-attacks. Cyber-attacks may target Riches Elites, its users, customers, key service providers or other participants in its platform or the communication infrastructure on which it depends. Cybersecurity breaches would not only harm Riches Elites' reputation and business, but also could materially decrease its revenue and net income.

***The successful operation of Riches Elites' business depends upon the performance, reliability and security of the internet infrastructure in the countries in which it operates.***

Riches Elites' business depend on the performance, reliability and security of the telecommunications and internet infrastructure in the countries in which it operates.

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

The failure of telecommunications network operators to provide Riches Elites with the requisite bandwidth could also interfere with the speed and availability of Riches Elites' websites and mobile apps. Riches Elites has no control over the costs of the services provided by the telecommunications operators. If the prices that Riches Elites pay for telecommunications and internet services rise significantly, Riches Elites' margins could be adversely affected. In addition, if internet access fees or other charges to internet users increase, our user base may decrease, which in turn may significantly decrease its revenues.

Moreover, if the security of domain names is compromised, Riches Elites will be unable to use the domain names in its business operations, which could materially and adversely affect its business operations, reputation and brand image. If Riches Elites fail to implement adequate encryption of data transmitted through the networks of the telecommunications and internet operators Riches Elites rely upon, there is a risk that telecommunications and internet operators or their business partners may misappropriate Riches Elites' data, which could materially and adversely affect Riches Elites' business operations and reputation.

***GFS' and Riches Elites' platform could be disrupted by network interruptions.***

GFS' and Riches Elites' platform depend on the efficient and uninterrupted operation of its computer and communications systems. System interruptions and delays may prevent GFS and Riches Elites from efficiently processing the volume of transactions on the businesses GFS and Riches Elites operate.

GFS and Riches Elites may experience in the future system interruptions and delays that render websites, mobile apps and services temporarily unavailable or slow to respond. Despite any precautions GFS and Riches Elites may take, the occurrence of a natural disaster or other unanticipated problems at its facilities, including power outages, system failures, telecommunications delays or failures, construction accidents, break-ins to information technology systems, computer viruses or human errors, could result in delays in or temporary outages of GFS' and Riches Elites' platforms or services, loss of its, consumers' and customers' data and business interruption for GFS and Riches Elites and its customers. Any of these events could damage GFS' and Riches Elites' reputation, significantly disrupt its operations and subject it to liability, heightened regulatory scrutiny and increased costs, which could materially and adversely affect GFS' and Riches Elites' business, financial condition and results of operations.

***Our strategy of acquiring complementary assets, technologies and businesses may fail and result in impairment losses.***

As a component of our growth strategy, we have acquired and intend to actively identify and acquire assets, technologies and businesses that are complementary to our existing businesses. Our acquisitions could result in the use of substantial amounts of cash, issuance of potentially dilutive equity securities, significant impairment losses related to goodwill or amortization expenses related to intangible assets and exposure to undisclosed or potential liabilities of acquired companies. Impairment loss for goodwill and acquired intangible assets may exist if our management concluded that expected synergies from acquisitions of assets, technologies and businesses would not materialize.

***We may be required to record a significant charge to earnings if we are required to reassess our tangible and intangible assets.***

We are required under U.S. GAAP to test for impairment on tangible and intangible assets annually or more frequently if facts and circumstances warrant a review. Currently we are losing money, and our tangible and intangible assets may be impaired if the losses continue. We are also required to review our amortizable intangible assets for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. Factors that may be considered a change in circumstances indicating that the carrying value of our amortizable intangible assets may not be recoverable include a decline in stock price and market capitalization and slower or declining growth rates in our industry. We may be required to record a significant charge to earnings in our financial statements during the period in which any impairment of our goodwill or amortizable intangible assets is determined.

***We are exposed to the credit risks of our customers and borrowers.***

Our financial position and profitability are dependent on our customers' creditworthiness. Thus, we are exposed to our customers' credit risks. There is no assurance that we will not encounter doubtful or bad debts in the future. Due to economic conditions in Hong Kong, in particular the risk of monetary and fiscal policies to address inflation, businesses in Hong Kong are generally conserving cash or under increased financial and credit stress. As a result, we could experience slower payments from our customers and borrowers, an increase in trade receivables aging and/or an increase in bad debts. If we were to experience any unexpected delay or difficulty in collections from our customers or borrowers, our cash flows and financial results would be adversely affected.

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

#### FAF and Giant Credit are subject to greater credit risks than larger lenders, which could adversely affect our results of operations.
***There are inherent risks associated with our lending activities, including credit risk, which is the risk that borrowers may not repay the outstanding loans balances. As a lending company, we extend credits to individual and commercial households and is premised on the fact that such loans will be timely repaid together with interest. These borrowers generally have fewer financial resources in terms of capital or borrowing capacity than larger entities and may have fewer financial resources to weather a downturn in the economy. Such borrowers may fail to perform their contractual obligations and default on payment of interest and/or the principal, and thus may expose us to greater credit risks than lenders lending to larger, better-capitalized state-owned businesses with longer operating histories. Conditions such as inflation, economic downturn, local policy change, adjustment of industrial structure and other factors beyond our control may increase our credit risk more than such events would affect larger lenders. As of December 31, 2025 and 2024, loan and interest receivables, net of provision for loan losses owed from our customers to FAF and Giant Credit amounted to approximately $7.69 million and $13.59 million, respectively. If FAF's and Giant Credit's customers delay or default on their payments, FAF and Giant Credit may have to incur additional legal costs and expenses in order to enforce its security and/or make provision for impairment or write-off the relevant loan and interest receivables, which in turn may adversely affect our financial position and profitability.***

#### FAF and Giant Credit may fail to renew its money lenders license.
Our money lending business is subject to licensing requirements under the provisions of the Money Lenders Ordinance (Chapter 163 of the Laws of Hong Kong). Money lenders licenses are granted by the licensing court of Hong Kong and are renewable annually subject to satisfaction of all licensing conditions. The licensing court has the discretion to suspend or revoke a license if a licensee is in breach of any licensing conditions. We cannot guarantee that the conditions or requirements which FAF and Giant Credit may be required to satisfy or meet will not change from time to time. In the event that FAF and Giant Credit are unable to renew its money lenders license in a timely manner or if the licensing court or other relevant authorities do not approve the application for a renewal of its money lenders license, FAF and Giant Credit may not be able to operate its money lending business until such time as it receives a new license, which may have a material adverse effect on our financial condition and results of operation.

#### The businesses of FAF and Giant Credit is affected by fluctuations in interest rates and our credit position.
The interest rate risks faced by FAF and Giant Credit arise from both the interest-bearing lending and borrowings of our money lending business. In particular, our profitability is highly correlated with the net interest margin, being the difference between the interest rate charged to our customers and the costs of our funding. The interest rate chargeable by Giant Credit to its customers is determined by, amongst other factors, the market demand for loans and the prevailing competition in the industry, and is ultimately capped by the relevant provisions of the Money Lenders Ordinance (Chapter 163 of the Laws of Hong Kong). The borrowing cost of FAF and Giant Credit is determined with reference to the overall local money lending market conditions and our credit positions. An increase in general interest rates or a deterioration of our credit positions will lead to increases in our funding costs.

#### There is intense competition in the money lending industry.
***As of December 31, 2025, as provided by the Hong Kong Licensed Money Lenders Association, there were 2,372 licensed money lenders in Hong Kong. These licensed money lenders operate under various scales and conditions, some of which may or may not be our direct competitors. Some of our competitors may have certain competitive advantages over us, including greater financial resources, more established reputations, stronger brand recognition, broader product and service offerings, lower costs of funding and a branch network with a wider geographic coverage. As a result, we may have to compete by lowering the interest rates charged on loans in order to gain market share. Failure to maintain or enhance our competitiveness within the money lending industry or maintain our customer base with good credit standing may result in a decrease in profit as well as loss of market share. Consequently, our financial performance and profitability may be adversely affected.***

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

#### An increase to the provision for loan losses will cause the Company's net income to decrease and net loss to increase.
Our lending business is subject to fluctuations based on economic conditions. These fluctuations are neither predictable nor within our control and may have a material adverse impact on our operations and financial condition. We may voluntarily decide to increase our provision for loan losses. Regulatory authorities may also require an increase in the provision for loan losses or the recognition of further loan charge-offs, based on judgments different from those of its management. Any increase in the provision for loan losses will result in a decrease in net income and an increase in net loss that may have a material adverse effect on our financial condition and results of operations.

#### Competition in the lending industry is growing and could cause us to lose market share and revenues in the future.
We believe that the lending industry is an emerging market in Hong Kong. We may face growing competition in the lending industry, and we believe that the lending industry is becoming more competitive as this industry matures and begins to consolidate. We will compete, with traditional financial institutions, other lending companies, other microfinance companies, and some cash-rich state-owned companies or individuals. Some of these competitors have larger and more established borrower bases and substantially greater financial, marketing and other resources than we have. As a result, we could lose market share and its revenues could decline, thereby adversely affecting our earnings and potential for growth.

#### FAF and Giant Credit may face regulatory hurdles in the future in connection with its lending business.
FAF and Giant Credit have been providing high-quality personal loans and corporate loans to its customers since it first obtained their money lenders license in 2011 and 2016, respectively. The Hong Kong Monetary Authority continues to impose stringent policies and prudential measures on property mortgage loans provided by authorized financial institutions in Hong Kong, which creates additional hurdles for the public who are looking for mortgages to satisfy their financial needs.

***The businesses of FAF and Giant Credit may be affected by changes in the Money Lenders Ordinance (Chapter 163 of the Laws of Hong Kong).***

The business operation of FAF and Giant Credit are regulated under the Money Lenders Ordinance (Chapter 163 of the Laws of Hong Kong) and full compliance with such regulation is essential for us to carry on our business. Notwithstanding this, the relevant regulatory authorities may from time to time amend the Money Lenders Ordinance (Chapter 163 of the Laws of Hong Kong) or adopt new laws and regulations applicable to licensed money lenders in Hong Kong. Our operation, financial performance and business prospects may be materially and adversely affected if we are not able to comply with any changes and/or new requirements in applicable laws and regulations related to the money lending industry in Hong Kong. Notably, for the personal loans and corporate loans granted by us to our customers, the interest rate for such loans shall not exceed the maximum effective interest rate of 48% per annum as stipulated under the Money Lenders Ordinance (Chapter 163 of the Laws of Hong Kong). In the event that such maximum limit for interest rate is lowered as a result of any change to the Money Lenders Ordinance (Chapter 163 of the Laws of Hong Kong) and/or any relevant laws and regulations, thus limiting and lowering the interest rate we can offer to our customers, our financial performance, operational results and profitability may be materially and adversely affected.

***Our property investment business is sensitive to downturns in the economy, economic uncertainty and particularly the performance of the real estate market in Hong Kong.***

Demand for property is sensitive to downturns and uncertainty in the global and regional economy and corresponding changes in the appetite for real estate investments and purchases. Changes in the appetite for real estate investments and purchases are driven by various factors including, amongst others, perceived or actual general economic conditions, employment and job market conditions, actual or perceived levels of disposable consumer income and wealth and consumer confidence in the economy. These and other factors have, in the past, affected consumer demand for real estate and any negative sentiment or downturn in the economy could materially and adversely affect our business, financial condition and results of operations and also our liquidity position. For example, a slowdown in the Hong Kong economy or any changes in the laws, regulations and policies in relation to the real estate market may result in a decline in the number of real estate transactions.

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

***Our revenue from our investment property portfolio depends on a number of factors, such as changes in market rental levels, competition for tenants and rental collection and renewal.***

***Leasing of our investment properties constitutes a very substantial part of the business of 11 Hau Fook Street, Suns Tower and Vision Lane. For the years ended December 31, 2025 and 2024, revenue generated from our investment properties constituted $0.97 million and $1.07 million, respectively. We are subject to risks incidental to the ownership and operation of commercial properties, such as volatility in market rental rates and occupancy rates, competition for tenants, costs resulting from on-going maintenance and repair and the inability to collect rent from tenants or renew leases with tenants due to bankruptcy, insolvency, financial difficulties or other reasons. In addition, we may not be able to renew leases with our tenants on terms acceptable to us, or at all, upon the expiration of existing terms. If the above occurs, there may be a material adverse effect on our business, financial condition, results of operation and annual report.***

#### We may not be able to secure financing needed for future operating needs on favorable terms, or on any terms at all.
From time-to-time, we may seek additional financing to provide the capital required for future acquisitions and to expand our business, if cash flow from operations is not sufficient to do so. We cannot predict with certainty the timing or amount of any such capital requirements. If such financing is not available on satisfactory terms, we may not be able to expand our business or to develop new business at the rate desired. Consequently, our results of operations may be adversely affected.

If we are able to secure financing through debt, lenders may impose certain restrictions. In addition, repaying such debt may limit our cash flow and our ability to grow. If we are not able to secure financing through debt, we may be forced to issue additional equity, which would have a dilutive effect on our shares.

#### A severe or prolonged downturn in the global economy could materially and adversely affect our business and results of operations.
The recent global market and economic were unprecedented and challenging, with recessions occurring in most major economies. Continued concerns about the systemic impact of potential long-term and wide-spread recession, energy costs, geopolitical issues, sovereign debt issues, and the availability and cost of credit have contributed to increased market volatility and diminished expectations for economic growth around the world. The difficult economic outlook has negatively affected businesses and consumer confidence and contributed to significant volatility.

The recent outbreak of war in Ukraine has already affected global economic markets, and the uncertain resolution of this conflict could result in protracted and/or severe damage to the global economy. Russia's recent military interventions in Ukraine have led to, and may lead to, additional sanctions being levied by the United States, European Union and other countries against Russia. Russia's military incursion and the resulting sanctions could adversely affect global energy and financial markets and thus could affect our client's business and our business, even though we do not have any direct exposure to Russia or the adjoining geographic regions. The extent and duration of the military action, sanctions, and resulting market disruptions are impossible to predict, but could be substantial. Any such disruptions caused by Russian military action or resulting sanctions may magnify the impact of other risks described in this section. We cannot predict the progress or outcome of the situation in Ukraine, as the conflict and governmental reactions are rapidly developing and beyond their control. Prolonged unrest, intensified military activities, or more extensive sanctions impacting the region could have a material adverse effect on the global economy, and such effect could in turn have a material adverse effect on the operations, results of operations, financial condition, liquidity and business outlook of our business.

There is continuing uncertainty over the long-term effects of the expansionary monetary and fiscal policies that have been adopted by the central banks and financial authorities of some of the world's leading economies, including Hong Kong's. There have also been concerns over unrest in the Middle East and Africa, which may result in significant market volatility. Economic conditions in Hong Kong are sensitive to global economic conditions. Any prolonged slowdown in the global and/or Hong Kong economy may have a negative impact on our business, results of operations and financial condition, and continued turbulence in the international markets may adversely affect our ability to access the capital markets to meet liquidity needs.

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

***If we fail to keep our fintech services technology updated as the industry evolves, our growth, revenues and business prospects may be materially and adversely affected.***

Our fintech services technology is critical to our business operations. In order to remain competitive, our fintech services technology is under continuous development and upgrade pressure. If we fail to keep our fintech services technology updated as needed or as fast as our competitors or in a cost-effective manner, we may lose our competitiveness against our competitors. Failure to compete may limit our service quality, lower customer confidence in us or otherwise adversely affect our business and prospects.

#### We may fail to protect our fintech services products from cyber-attacks, which may adversely affect our reputation, customer base and business.
***Our fintech services products are used by our customers to process their data. Despite our efforts to safeguard the information of our customers, system malfunctions, employee errors, misconducts or other factors may still occur, which may lead to Internet security emergency. Our fintech services products are potentially vulnerable to physical or electronic computer break-ins, viruses and similar disruptive problems or security breaches. A party that is able to circumvent our security measures could misappropriate proprietary information or customer information, jeopardize the confidential nature of the information we transmit over the Internet and mobile network or cause interruptions in the operations of our fintech services products. We or our service providers may be required to invest significant resources to protect against the threat of security breaches or to alleviate problems caused by any breaches. To the extent that our activities involve the storage and transmission of proprietary information and personal financial information, security breaches could expose us to risks of financial loss, litigation and other liabilities. Any of these events, particularly if they result in a loss of confidence in our services, could have a material adverse effect on our reputation, business, financial condition and results of operations.***

***A portion of our revenue is generated from financial and insurance advisory services in cooperation with licensed companies. Cooperation with third parties subject us to risks.***

We provide various services including providing financial and insurance advisory services in cooperation with licensed companies. Collaboration with these licensed companies is subject to risks, some of which are outside our control. We could experience delays to the extent that the licensed companies do not meet the agreed upon timelines or experience capacity constraints. We could also experience disagreement with these licensed companies. Termination of our relationship with these licensed companies could adversely affect our business, financial condition and results of operations, we may suffer losses arising from the inability to provide financial and insurance advisory services. Our ability to carry out our business operations will be significantly hindered, and thus our business, financial condition, results of operation, and prospects may be materially and adversely affected.

Furthermore, if the licensed companies cannot continue to offer these financial and insurance products, or if the popularity of these products declines, and we are unsuccessful in increasing sales or retain existing insurance or financial product customers, our revenue may decrease, and our results of operations and financial condition may be materially and adversely affected.

***A portion of our revenue is generated from providing consultation services on foreign immigration schemes, as well as overseas education advisory and application services. Any change in immigration policies and overseas education requirements can affect our revenue and results of operations.***

We provide various consultation services on foreign immigration schemes and overseas education requirements. These immigration schemes and overseas education requirements are subject to change with little or no advance notice, and are beyond our control. Popularity of these immigration scheme or overseas education providers may also decline, and should current immigration schemes become unavailable or lose popularity, or should there be a lack of favorable foreign immigration schemes or increase in overseas education application requirements, our ability to carry out our business operations will be significantly hindered, and thus our business, financial condition, results of operation, and prospects may be materially and adversely affected.

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

***A portion of our revenue is generated from providing property agency services. Economic volatility and market uncertainty may impact demand for the property market, potentially affecting our revenue streams and profitability.***

Riches provides property agency services by connecting clients to professional consultants through its mobile application. Economic volatility and market uncertainty may impact demand for the property market, potentially affecting our revenue streams and profitability. Our success relies on the demand for properties, which can be influenced by macroeconomic factors, market trends, and geopolitical events. Economic downturns, or shifts in consumer preferences could lead to decreased demand for various properties, affecting our ability to attract clients. Additionally, fluctuations in interest rates, inflation, or currency exchange rates may impact investment decisions, potentially reducing the number of clients for the company's services. Moreover, unforeseen events such as natural disasters, global pandemics, or regulatory changes could further affect our revenue potential. As such, we may face challenges in maintaining consistent revenue streams and profitability, particularly during periods of economic uncertainty or market volatility.

***HK Golden, Inc.'s operating history may not be indicative of its future growth or financial results and it may not be able to sustain our historical growth rates, and our investment may result in a loss.***

On October 6, 2025, Giant Connection, a fully owned subsidiary of the Company entered into a Sale and Purchase Agreement with CORE EXPERT INVESTMENT LIMITED. CORE EXPERT INVESTMENT LIMITED had ownership of 2,835,750 ordinary shares, being 19.9% of the issued and outstanding shares of HK Golden, Inc., a company incorporated in the British Virgin Islands. HK Golden, Inc. and its subsidiaries primarily provide digital marketing services to clients and operate HKGolden.com, an online social forum and networking platform in Hong Kong. HK Golden, Inc.'s operating history may not be indicative of its future growth or financial results. There is no assurance that it will be able to grow its revenues in future periods. Its growth rates may decline for any number of possible reasons, and some of them are beyond HK Golden, Inc.'s control, including decreasing customer demand, increasing competition, declining growth of the digital marketing industry in general, emergence of alternative business models, or changes in government policies or general economic conditions. HK Golden. Inc.'s growth rates declines, our investment may result in a loss, and investors' perceptions of our business and prospects may be adversely affected and the market price of our shares could decline.

***The audit reports for prior reporting periods included in our annual reports have been prepared by predecessor auditors whose work may not be inspected fully by the Public Company Accounting Oversight Board and, as such, you may be deprived of the benefits of such inspection.***

Our predecessor registered public accounting firm that issue the audit reports as included in our annual reports filed with the SEC as auditors of companies that are traded publicly in the United States and firms registered with the Public Company Accounting Oversight Board (United States), or the PCAOB, are required by the laws of the United States to undergo regular inspections by the PCAOB to assess their respective compliance with the laws of the United States and professional standards.

Although our current auditors are PCAOB compliant, many other clients of our predecessor auditors have substantial operations within mainland China and Hong Kong, and the PCAOB has been unable to complete inspections of the work of our predecessor auditors without the approval of the Chinese authorities. Thus, our predecessor auditors and their audit work for the period up to December 2019 had not been inspected fully by the PCAOB. On December 7, 2018, the SEC and the PCAOB issued a joint statement highlighting continued challenges faced by the U.S. regulation in their oversight of financial statement audits of U.S.-listed companies with significant operation in China and Hong Kong. However, it remains unclear what further actions the SEC and PCAOB will take to address the problem.

Inspections of other firms that the PCAOB has conducted outside mainland China and Hong Kong have identified deficiencies in those firms' audit procedures and quality control procedures, which can be addressed as part of the inspection process to improve future audit quality. The lack of PCAOB inspections in mainland China and Hong Kong prevents the PCAOB from regularly evaluating our auditors' audit procedures and quality control procedures as they relate to their work in mainland China and Hong Kong. As a result, investors may be deprived of the benefits of such regular inspections.

The inability of the PCAOB to conduct full inspections of auditors in mainland China and Hong Kong makes it more difficult to evaluate the effectiveness of our predecessor auditors' audit procedures and quality control procedures as compared to auditors who primarily work in jurisdictions where the PCAOB has full inspection access. Investors may lose confidence in our reported financial information and the quality of our financial statements.

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

In addition, in June 2019, a bipartisan group of lawmakers introduced bills in both houses of the U.S. Congress which, if passed, would require the SEC to maintain a list of issuers for which the PCAOB is unable to inspect or investigate an auditor report issued by a foreign public accounting firm. The proposed Ensuring Quality Information and Transparency for Abroad-Based Listings on our Exchanges ("EQUITABLE") Act prescribes increased disclosure requirements for these issuers and, beginning in 2025, the delisting from U.S. national securities exchanges of issuers included on the SEC's list for three consecutive years. Enactment of this legislation or other efforts to increase U.S. regulatory access to audit information could cause investor uncertainty for affected issuers, including us, and the market price of our ordinary shares could be adversely affected. It is unclear if this proposed legislation will be enacted. Furthermore, there has been recent deliberations within the U.S. government regarding potentially limiting or restricting China-based companies from accessing U.S. capital markets.

On April 21, 2020, the SEC and the PCAOB issued a joint statement reiterating the greater risk that disclosures will be insufficient in many emerging markets, including the PRC, compared to those made by U.S. domestic companies. In discussing the specific issues related to the greater risk, the statement again highlights the PCAOB's inability to inspect audit work paper and practices of accounting firms in the PRC, with respect to their audit work of U.S. reporting companies. However, it remains unclear what further actions, if any, the SEC and PCAOB will take to address the problem. There have been media reports on deliberations within the U.S. government regarding potentially limiting or restricting the PRC-based companies from accessing U.S. capital markets.

On May 20, 2020, the U.S. Senate passed the Holding Foreign Companies Accountable Act ("HFCAA") requiring a foreign company to certify it is not owned or controlled by a foreign government if the PCAOB is unable to audit specified reports because the company uses a foreign auditor not subject to PCAOB inspection. If the PCAOB is unable to inspect the company's auditors for three consecutive years, the issuer's securities are prohibited to trade on a national exchange. On December 2, 2020, the U.S. House of Representatives approved the HFCAA.

On March 24, 2021, the SEC adopted interim final rules relating to the implementation of certain disclosure and documentation requirements in the HFCA Act. On December 2, 2021, the SEC adopted amendments to finalize rules implementing the submission and disclosure requirements in the HFCA Act. The rules apply to registrants that the SEC identifies as having filed an annual report with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction and that PCAOB is unable to inspect or investigate. We will be required to comply with these rules if the SEC identifies us as having a "non-inspection" year under a process to be subsequently established by the SEC. The final amendments require any identified registrant to submit documentation to the SEC establishing that the registrant is not owned or controlled by a government entity in the public accounting firm's foreign jurisdiction, and also require, among other things, disclosure in the registrant's annual report regarding the audit arrangements of, and government influence on, such registrants. Under the HFCA Act, our securities may be prohibited from trading on the Nasdaq or other U.S. stock exchanges if our auditor is not inspected by the PCAOB for three consecutive years, and this ultimately could result in our Ordinary Shares being delisted.

On June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies Accountable Act, which, if enacted, would amend the HFCA Act and require the SEC to prohibit an issuer's securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three, and thus, would reduce the time before our Ordinary Shares may be prohibited from trading or delisted.

If any such policies or deliberations were to materialize, the resulting legislation, if it were to apply to us, would likely have a material adverse impact on our business and the price of our ordinary shares. Should the PCAOB determine that it cannot inspect or fully investigate our auditor for three consecutive years, an exchange may determine to delist our securities.

On December 16, 2021, the PCAOB issued a report on its determinations that it was unable to inspect or investigate completely PCAOB-registered public accounting firms headquartered in Mainland China and in Hong Kong, because of positions taken by PRC authorities in those jurisdictions. The PCAOB made its determinations pursuant to PCAOB Rule 6100, which provides a framework for how the PCAOB fulfills its responsibilities under the HFCA Act. The report further listed in its Appendix A and Appendix B, Registered Public Accounting Firms Subject to the Mainland China Determination and Registered Public Accounting Firms Subject to the Hong Kong Determination, respectively. Our current auditor, AssentSure PAC is headquartered in Singapore, and did not appear as part of the determination and was not listed under its appendix A or appendix B.On December 15, 2022, the PCAOB determined that the PCAOB was able to secure complete access to inspect and investigate registered public accounting firms headquartered in mainland China and Hong Kong and voted to vacate its previous determinations to the contrary. However, should PRC authorities obstruct or otherwise fail to facilitate the PCAOB's access in the future, the PCAOB will consider the need to issue a new determination. Our securities may be delisted or prohibited from trading if the PCAOB determines that it cannot inspect or investigate completely our auditor under the HFCAA.

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

On December 29, 2022, a legislation entitled "Consolidated Appropriations Act, 2023" (the "Consolidated Appropriations Act") was signed into law by President Biden, which contained, among other things, an identical provision to Accelerating Holding Foreign Companies Accountable Act and amended the Holding Foreign Companies Accountable Act by requiring the SEC to prohibit an issuer's securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three, thus reducing the time before our Ordinary Shares may be prohibited from trading or delisted. The delisting or the cessation of trading of our Ordinary Shares, or the threat of their being delisted or prohibited from being traded, may materially and adversely affect the value of your investment.

***If we become directly subject to the recent scrutiny involving U.S. listed Chinese companies, we may have to expend significant resources to investigate and/or defend the matter, which could harm our business operations, stock price and reputation.***

During the last several years, U.S. public companies that have substantially all of their operations in China have been the subject of intense scrutiny by investors, financial commentators and regulatory agencies. Much of the scrutiny has centered on financial and accounting irregularities and mistakes, lacks of effective internal controls over financial reporting and, in many cases, allegations of fraud. As a result of the scrutiny, the publicly traded stock of many U.S.-listed Chinese companies that have been the subject of such scrutiny has sharply decreased in value. Many of these companies are now subject to shareholder lawsuits and/or SEC enforcement actions that are conducting internal and/or external investigations into the allegations.

If we become the subject of any such scrutiny, whether any allegations are true or not, we may have to expend significant resources to investigate such allegations and/or defend the Company. Such investigations or allegations will be costly and time-consuming and distract our management from our normal business and could result in our reputation being harmed. Our stock price could decline because of such allegations, even if the allegations are false.

**Risks Related to Doing Business in Jurisdictions We Operate**

***A downturn in the Hong Kong, China or global economy, and economic and political policies of China could materially and adversely affect our business and financial condition.***

We conduct substantial operations through our subsidiaries in Hong Kong and we also have an indirect wholly-owned subsidiary with no operations in China. Accordingly, our business, prospects, financial condition and results of operations may be influenced to a significant degree by political, economic and social conditions in Hong Kong and China generally and by continued economic growth in Hong Kong and China as a whole. The Chinese economy differs from the economies of most developed countries in many respects, including the amount of government involvement, level of development, growth rate, control of foreign exchange and allocation of resources. While the Chinese economy has experienced significant growth over the past decades, growth has been uneven, both geographically and among various sectors of the economy. The Chinese government has implemented various measures to encourage economic growth and guide the allocation of resources. Some of these measures may benefit the overall Chinese economy, but may have a negative effect on us.

Economic conditions in Hong Kong and China are sensitive to global economic conditions. Any prolonged slowdown in the global or Chinese economy may affect potential clients' confidence in financial market as a whole and have a negative impact on our business, results of operations and financial condition. Additionally, continued turbulence in the international markets may adversely affect our ability to access the capital markets to meet liquidity needs.

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

***The Hong Kong legal system embodies uncertainties which could limit the legal protections available to us.***

Hong Kong is a Special Administrative Region of the PRC. Following British colonial rule from 1842 to 1997, China assumed sovereignty under the "one country, two systems" principle. The Hong Kong Special Administrative Region's constitutional document, the Basic Law, ensures that the current political situation will remain in effect for 50 years. Hong Kong has enjoyed the freedom to function in a high degree of autonomy for its affairs, including currencies, immigration and custom, independent judiciary system and parliamentary system. On July 14, 2020, the United States signed an executive order to end the special status enjoyed by Hong Kong post-1997. As the autonomy currently enjoyed were compromised, it could potentially impact Hong Kong's common law legal system and may in turn bring about uncertainty in, for example, the enforcement of our contractual rights. This could, in turn, materially and adversely affect our business and operation. Additionally, intellectual property rights and confidentiality protections in Hong Kong may not be as effective as in the United States or other countries. Accordingly, we cannot predict the effect of future developments in the Hong Kong legal system, including the promulgation of new laws, changes to existing laws or the interpretation or enforcement thereof, or the pre-emption of local regulations by national laws. These uncertainties could limit the legal protections available to us, including our ability to enforce our agreements with our clients.

***Uncertainties with respect to the PRC legal system could adversely affect us.***

We conduct substantial operations through our subsidiaries in Hong Kong and we also have an indirect wholly-owned subsidiary with no operations in China. PRC companies and variable interests entities are generally subject to laws and regulations applicable to foreign investments in China and, in particular, laws and regulations applicable to wholly foreign-owned enterprises. The PRC legal system is based on statutes. Prior court decisions may be cited for reference but have limited precedential value.

Since 1979, PRC legislation and regulations have significantly enhanced the protections afforded to various forms of foreign investments in China. However, China has not developed a fully integrated legal system and recently enacted laws and regulations may not sufficiently cover all aspects of economic activities in China. In particular, because these laws and regulations are relatively new, and because of the limited volume of published decisions and their nonbinding nature, the interpretation and enforcement of these laws and regulations involve uncertainties. In addition, the PRC legal system is based in part on government policies and internal rules (some of which are not published on a timely basis or at all) that may have a retroactive effect. As a result, we may not be aware of our violation of these policies and rules until sometime after the violation. In addition, any litigation in China may be protracted and result in substantial costs and diversion of resources and management attention.

***Changes in the policies, regulations, rules, and the enforcement of laws of the PRC government may be quick with little advance notice and could have a significant impact upon our ability to operate profitably in the PRC.***

Although we conduct substantial operations through our subsidiaries in Hong Kong, we also have an indirect wholly-owned subsidiary with no operations in China, which may subject us to certain laws and regulations in China. Accordingly, economic, political and legal developments in the PRC will affect our business, financial condition, results of operations and prospects. Policies, regulations, rules, and the enforcement of laws of the PRC government can have significant effects on economic conditions in the PRC and the ability of businesses to operate profitably. Our ability to operate profitably in the PRC may be adversely affected by changes in policies by the PRC government, including changes in laws, regulations or their interpretation, particularly those dealing with the Internet, including censorship and other restriction on material which can be transmitted over the Internet, security, intellectual property, money laundering, taxation and other laws that affect our ability to operate our business in China.

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

***The PRC government may intervene or influence our business operations at any time or may exert more control over offerings conducted overseas and foreign investment in China based issuers, which could result in a material change in our business operations or the value of our securities. Additionally, the governmental and regulatory interference could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or be worthless. We are also currently not required to obtain approval from Chinese authorities to list on U.S. exchanges, however, if we are required to obtain approval in the future and are denied permission from Chinese authorities to list on U.S. exchanges, we will not be able to continue listing on U.S. exchange, which would materially affect the interest of the investors.***

Although we conduct substantial operations through our subsidiaries in Hong Kong, we also have an indirect wholly-owned subsidiary with no operations in China, which may subject us to certain laws and regulations in China. The Chinese government has exercised and continues to exercise substantial control over virtually every sector of the Chinese economy through regulation and state ownership. Our ability to operate in China may be harmed by changes in its laws and regulations, including those relating to taxation, environmental regulations, land use rights, property and other matters. The central or local governments of these jurisdictions may impose new, stricter regulations or interpretations of existing regulations that would require additional expenditures and efforts on our part to ensure our compliance with such regulations or interpretations. Accordingly, government actions in the future, including any decision not to continue to support recent economic reforms and to return to a more centrally planned economy or regional or local variations in the implementation of economic policies, could have a significant effect on economic conditions in China or particular regions thereof, and could require us to divest ourselves of any interest we then hold in Chinese properties.

For example, the Chinese cybersecurity regulator announced on July 2, 2021 that it had begun an investigation of Didi Global Inc. (NYSE: DIDI) and two days later ordered that the company's app be removed from smartphone app stores. On July 24, 2021, the General Office of the Communist Party of China Central Committee and the General Office of the State Council jointly released the Guidelines for Further Easing the Burden of Excessive Homework and Off-campus Tutoring for Students at the Stage of Compulsory Education, pursuant to which foreign investment in such firms via mergers and acquisitions, franchise development, and variable interest entities are banned from this sector.

As such, our business segments may be subject to various government and regulatory interference in the provinces in which they operate. We could be subject to regulations by various political and regulatory entities, including various local and municipal agencies and government sub-divisions, and these regulations may be interpreted and applied inconsistently by different agencies or authorities. We may incur increased costs necessary to comply with existing and newly adopted laws and regulations or penalties for any failure to comply, and such compliance or any associated inquiries or investigations or any other government actions may:

● delay or impede our development;

● result in negative publicity or increase our operating costs;

● require significant management time and attention; and

● subject our Company to remedies, administrative penalties and even criminal liabilities that may harm our business, including fines assessed for our current or historical operations, or demands or orders that we modify or even cease our business practices.

The regulatory framework for the collection, use, safeguarding, sharing, transfer and other processing of personal information and important data worldwide is rapidly evolving in PRC and is likely to remain uncertain for the foreseeable future. Regulatory authorities in China have implemented and are considering a number of legislative and regulatory proposals concerning data protection. For example, the PRC Cybersecurity Law, which became effective in June 2017, established China's first national-level data protection for "network operators," which may include all organizations in China that connect to or provide services over the internet or other information network. The PRC Data Security Law, which was promulgated by the Standing Committee of PRC National People's Congress, or the SCNPC, on June 10, 2021 and became effective on September 1, 2021, outlines the main system framework of data security protection. As of the date of this registration statement, we have not been involved in any investigations on data security compliance made in connection with the PRC Data Security Law, and we have not received any inquiry, notice, warning, or sanctions in such respect. Based on the foregoing, we do not expect that, as of the date of this annual report, the PRC Data Security Law would have a material adverse impact on our business.

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

In August 2021, the Standing Committee of the National People's Congress of China promulgated the Personal Information Protection Law which became effective on November 1, 2021. The Personal Information Protection Law provides a comprehensive set of data privacy and protection requirements that apply to the processing of personal information and expands data protection compliance obligations to cover the processing of personal information of persons by organizations and individuals in China, and the processing of personal information of persons outside of China if such processing is for purposes of providing products and services to, or analyzing and evaluating the behavior of, persons in China. The Personal Information Protection Law also provides that critical information infrastructure operators and personal information processing entities who process personal information meeting a volume threshold to be set by Chinese cyberspace regulators are also required to store in China the personal information generated or collected in China, and to pass a security assessment administered by Chinese cyberspace regulators for any export of such personal information. Moreover, pursuant to the Personal Information Protection Law, persons who seriously violate this law may be fined for up to RMB50 million or 5% of annual revenues generated in the prior year and may also be ordered to suspend any related activity by competent authorities.

Recent statements by the Chinese government have indicated an intent to exert more oversight and control over offerings that are conducted overseas and/or foreign investments in China-based issuers. On July 6, 2021, the General Office of the Communist Party of China Central Committee and the General Office of the State Council jointly issued a document to crack down on illegal activities in the securities market and promote the high-quality development of the capital market, which, among other things, requires the relevant governmental authorities to strengthen cross-border oversight of law-enforcement and judicial cooperation, to enhance supervision over China-based companies listed overseas, and to establish and improve the system of extraterritorial application of the PRC securities laws. On December 24, 2021, the CSRC published the Provisions of the State Council on the Administration of Overseas Securities Offering and Listing by Domestic Companies (the "Administration Provisions"), and the Administrative Measures for the Filing of Overseas Securities Offering and Listing by Domestic Companies (the "Measures"), which are now open for public comment.

Furthermore, on July 10, 2021, the CAC issued a revised draft of the Measures for Cybersecurity Review for public comments, which required that, among others, in addition to "operator of critical information infrastructure", any "data processor" controlling personal information of no less than one million users which seeks to list in a foreign stock exchange should also be subject to cybersecurity review, and further elaborated the factors to be considered when assessing the national security risks of the relevant activities. On December 28, 2021, the CAC, the National Development and Reform Commission ("NDRC"), and several other administrations jointly issued the revised Measures for Cybersecurity Review, or the "Revised Review Measures", which became effective and replaced the existing Measures for Cybersecurity Review on February 15, 2022. According to the Revised Review Measures, if an "online platform operator" that is in possession of personal data of more than one million users intends to list in a foreign country, it must apply for a cybersecurity review. Based on a set of Q&A published on the official website of the State Cipher Code Administration in connection with the issuance of the Revised Review Measures, an official of the said administration indicated that an online platform operator should apply for a cybersecurity review prior to the submission of its listing application with non-PRC securities regulators. Moreover, the CAC released the draft of the Regulations on Network Data Security Management in November 2021 for public consultation, which among other things, stipulates that a data processor listed overseas must conduct an annual data security review by itself or by engaging a data security service provider and submit the annual data security review report for a given year to the municipal cybersecurity department before January 31 of the following year. Given the recency of the issuance of the Revised Review Measures and their pending effectiveness, there is a general lack of guidance and substantial uncertainties exist with respect to their interpretation and implementation.

Currently, we, including our subsidiaries, are not required to obtain approval from Chinese authorities, including the China Securities Regulatory Commission, or CSRC, or Cybersecurity Administration Committee, or CAC, to operate and list on U.S. exchanges or issue securities to foreign investors. If approval is required in the future and we were denied permission from Chinese authorities to list on U.S. exchanges, we will not be able to operate or to continue listing on U.S. exchange, which would materially affect the interest of the investors. It is uncertain when and whether the Company will be required to obtain permission from the PRC government to continue to operate or to list on U.S. exchanges in the future, and even when such permission is obtained, whether it will be denied or rescinded. Although we are currently not required to obtain permission from any of the PRC federal or local government and has not received any denial to list on the U.S. exchange, our operations and ability to continue to list and issue securities to foreign investors may be adversely affected in the future, directly or indirectly, by existing or future laws and regulations relating to our PRC business operations. As a result, both you and us face uncertainty about future actions by the PRC government that could significantly affect our ability to offer or continue to offer securities to investors and cause the value of our securities to significantly decline or be worthless.

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

***Any failure of us to obtain the relevant approval or complete the filings and other relevant regulatory procedures in a timely manner could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or become worthless.***

On December 28, 2021 the CAC, the NDRC, and several other administrations jointly adopted and published the new Measures for Cybersecurity Review ("New Measures"), which came into effect on February 15, 2022. According to the New Measures, an operator of critical information infrastructure who purchase network products or services that affects or may affect national security or a network platform operator who possesses the personal information of more than 1 million users and intends to list in a foreign country shall declare to the Office of Cybersecurity Review for cybersecurity review. Given that, as of the date of this Report, (i) we and one of the PRC subsidiaries is operating an online application, which we collect personal information through any online platforms in our business operations; (ii) we and our PRC subsidiaries have not been notified by any authorities of being classified as critical information infrastructure operators; and (iii) we and our PRC subsidiaries have not been involved in any investigations initiated by the CAC or any other competent authorities, nor have we received any inquiry, notice, warning, or sanction in such respect, we believe that we are not subject to cybersecurity review.

On February 17, 2023, the CSRC issued the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Enterprises, or the Trial Measures, which have become effective on March 31, 2023. According to the Trial Measures, our IPO will be identified as an indirect overseas issuance and listing by the CSRC, we shall fulfill the filing procedure with the CSRC as per requirement of the Trial Measures. We may not be able to complete the filing because the filing materials are incomplete or do not meet the requirements of the CSRC. As of the date of this Report, we have submitted our filing materials with the CSRC to fulfill the filing procedure with the CSRC as per requirement of the Trial Measures, and approval from CSRC was obtained by the Company on March 7, 2024.

As of the date of this Report, except for the filing required by the CSRC, our listing on the Nasdaq Capital Market. is not subject to the review nor prior approval of the CAC. However, due to the possibility that laws, regulations, or policies in the PRC could change in the future, the promulgation of new laws or regulations, or the new interpretation of existing laws and regulations may restrict or otherwise unfavorably impact our ability or way to conduct business and may require us to change certain aspects of our business to ensure compliance, which could decrease demand for our services, reduce revenues, increase costs, require us to obtain more licenses, permits, approvals or certificates, or subject us to additional liabilities.

In the event that (i) the PRC government expands the categories of industries and companies whose foreign securities offerings are subject to review by the CAC that we are required to obtain such permissions or approvals; or (ii) we inadvertently concluded that relevant permissions or approvals were not required or that we did not receive or maintain relevant permissions or approvals required, the legal consequences arising from this could significantly limit or completely hinder our operations, significantly limit or completely hinder our ability to offer our Shares to investors and cause the value of such Shares to significantly decline or become worthless.

Given recent statements by the PRC government indicating an intent to exert more oversight over offerings that are conducted overseas and/or foreign investment in China-based issuers, any such action could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or be worthless.

***Our corporate structure and having part of our operations in China, as well as changes in China's economic, social conditions or government policies could have a material adverse effect on our business and operations.***

Our PRC subsidiaries' operations are located in the PRC. Accordingly, our business, financial condition, results of operations and prospects may be influenced to a significant degree by economic and social conditions in the PRC generally. In addition, the Chinese government plays a significant role in regulating industry development by imposing industrial policies. The Chinese government also has significant impact on the PRC's economic growth through guiding resource allocation, standardizing payment of foreign currency-denominated obligations, setting monetary policy and providing preferential treatment to particular industries or companies.

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

While the Chinese economy has experienced significant growth over past decades, growth has been uneven, both geographically and among various sectors of the economy. Any changes in economic conditions in the PRC, in the policies of the Chinese government or in the laws and regulations in the PRC could have a material effect on the overall economic growth of the PRC. Such changes could adversely affect our business and operating results, lead to a reduction in demand for our services and adversely affect our competitive position. The Chinese government has implemented various measures to encourage economic growth and guide the allocation of resources. Some of these measures may benefit the overall Chinese economy, but may have a negative effect on us. For example, our financial condition and results of operations may be adversely affected by future laws or regulations which impose restrictions on capital investments or changes in tax regulations. In addition, changes of policies like interest rate adjustment in the PRC, may also adversely affect our business and operating results.

***Non-compliance with labor-related laws and regulations of the PRC may have an adverse impact on our financial condition and results of operation.***

Our PRC subsidiaries has been subject to stricter regulatory requirements in terms of entering into labor contracts with our employees and paying various statutory employee benefits, including pensions, housing fund, medical insurance, work-related injury insurance, unemployment insurance and childbearing insurance to designated government agencies for the benefit of our employees. Pursuant to the PRC Labor Contract Law, or the Labor Contract Law, that became effective in January 2008 and was amended in July 2013 and its implementing rules that became effective in September 2008, employers are subject to stricter requirements in terms of signing labor contracts, minimum wages, paying remuneration, determining the term of employees' probation and unilaterally terminating labor contracts.

Companies operating in China are required to participate in various government-mandated employee benefit contribution plans, including certain social insurance, housing funds and other welfare-oriented payment obligations, and contribute to the plans in amounts equal to certain percentages of salaries, including bonuses and allowances, of our employees up to a maximum amount specified by the local government from time to time at locations where we operate our businesses. Companies operating in China are also required to withhold individual income tax on employees' salaries based on the actual salary of each employee upon payment.

As of the date of this Report, the Company has estimated that it has outstanding contributions of social security premium and housing funds based on the actual wages of eligible employees.

In respect of the social insurance, our PRC legal counsel has advised that, if an enterprise fails to pay the full amount of the social insurance contributions as legally required, the social insurance authority may order it to pay the outstanding amount of the social insurance contributions within a prescribed time limit and may impose a late fee at a daily rate of 0.05% of the outstanding amount, accruing from the date when the social insurance contributions were due. If the enterprise still fails to make such payment within the prescribed time, the social insurance authority may further impose an additional fine ranging from one to three times of the total outstanding balance. In respect of the housing provident fund, our PRC legal counsel has advised that, if an enterprise fails to pay the full amount of the housing provident fund contributions as legally required, the housing provident fund authority may order it to pay the outstanding amount of the housing provident fund within a prescribed time limit. If the enterprise still fails to make such payment within the prescribed time, the housing provident fund authority may apply for an order from the relevant people's courts to make such payment.

As of the date of this Report, our PRC subsidiaries have not received any notification from the PRC governmental authorities requiring us to pay any outstanding amount of the social insurance and housing provident fund contributions. The management believes that the likelihood the Company may be required to make these additional contributions is very low. In the event that our PRC subsidiaries are notified to make sufficient contributions, we have to pay the outstanding amount plus late fee or fines in relation to the underpaid employee benefits. The financial condition and results of operations of us and our PRC subsidiaries may be adversely affected.

The interpretation and implementation of labor-related laws and regulations are also still evolving, we cannot assure you that our employment practice will not further violate labor-related laws and regulations in China, which may subject us to labor disputes or government investigations. If we are deemed to have violated relevant labor laws and regulations in the future, we could be required to provide additional compensation to our employees and our business, financial condition and results of operations could be materially and adversely affected.

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

In the event that we decide to terminate some of our PRC employees or otherwise change our employment or labor practices, the Labor Contract Law and its implementation rules may limit our ability to effect those changes in a desirable or cost-effective manner, which could adversely affect our business and results of operations.

In addition, the State Administration of Taxation (the "SAT"), has issued certain circulars concerning employee stock options and restricted shares. Under these circulars, should our employees working in China be granted restricted shares or exercise any stock options they receive in the future, they will be subject to PRC individual income tax. Our PRC subsidiaries have obligations to file documents related to employee stock options or restricted shares with relevant tax authorities and to withhold individual income taxes of those employees who exercise their share options or are granted with restricted shares. If our employees fail to pay or we fail to withhold their income taxes according to relevant laws and regulations, we may face sanctions imposed by the tax authorities or other PRC governmental authorities.

***It may be difficult, cumbersome, and time-consuming to deliver legal process documents to us or such current officers reside within China from outside of mainland China and you may experience difficulties in enforcing foreign judgments or bringing actions in China against us or our management named in the prospectus based on foreign laws.***

It may be difficult, cumbersome, and time-consuming to deliver legal process documents to our PRC subsidiaries from outside of mainland China. In addition, there is uncertainty as to whether the courts of the PRC would recognize or enforce judgments of U.S. courts against us or such persons predicated upon the civil liability provisions of the securities laws of the United States or any state.

Shareholder claims that are common in the United States, including securities law class actions and fraud claims, generally are difficult to pursue as a matter of law or practicality in China. For example, in China, there are significant legal and other obstacles to obtaining information needed for shareholder investigations or litigation outside China or otherwise with respect to foreign entities. Although the local authorities in China may establish a regulatory cooperation mechanism with the securities regulatory authorities of another country or region to implement cross-border supervision and administration, such regulatory cooperation with the securities regulatory authorities in the United States has not been efficient in the absence of mutual and practical cooperation mechanism. According to Article 177 of the PRC Securities Law which became effective in March 2020, no overseas securities regulator is allowed to directly conduct investigation or evidence collection activities within the PRC. Accordingly, without the consent of the competent PRC securities regulators or other relevant authorities, no entity or individual may provide any documents and materials relating to securities business activities to foreign entities or government agencies.

***We may rely on dividends and other distributions on equity paid by our subsidiaries to fund any cash and financing requirements we may have, and any limitation on the ability of our subsidiaries to make payments to us, including PRC Governmental control of currency conversion and restriction on our ability to transfer or distribute cash within our organization or to foreign investors could have a material adverse effect on our ability to conduct our business and may affect the value of your investment.***

We are a holding company incorporated in the Cayman Islands, and we may rely on dividends and other distributions on equity paid by our subsidiaries for our cash and financing requirements, including the funds necessary to pay dividends and other cash distributions to our shareholders and service any debt we may incur. If any of our subsidiaries incurs debt on its own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions to us.

Since the financial year ended 2018, the Company has not utilized cash generated from one subsidiary to fund another subsidiary's operations. The cash transfer among the subsidiaries is typically payment for intercompany services or intercompany loans. None of the subsidiaries have ever faced difficulties or limitation on their ability to transfer cash between subsidiaries. As of the date of this report, the Company does not have any cash management policies that dictate the amount of funding among subsidiaries.

As of the date of this report, none of our subsidiaries have ever issued any dividends or distributions to the holding company or their respective shareholders outside of Hong Kong and China. In the future, cash proceeds raised from overseas financing activities may be transferred by us from our Hong Kong subsidiaries to Riches Elites via capital contribution, as the case may be. Beijing SGOCO and Riches Elites are currently indirectly wholly-owned by the offshore holding company and none of our subsidiaries are currently indirectly owned through contractual agreements.

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

In the future, should we establish any variable interest entity ("VIE") through contractual agreements, we intend to distribute earnings or settle amounts owed under the VIE agreements. In the future should we establish any VIE or direct PRC subsidiary, and the PRC government determines that the contractual arrangements constituting part of the VIE structure do not comply with PRC regulations, or if these regulations change or are interpreted differently in the future, the securities you are registering may decline in value or become worthless if the determinations, changes or interpretations may result in our inability to assert contractual control over the assets of our PRC subsidiaries or the VIEs that conduct all or substantially all our operations.

In order for us to pay dividends to our shareholders, in the future we may rely on payments made by our Hong Kong subsidiaries, as well as to a limited degree on payments made from Beijing SGOCO and Riches Elites to TROOPS, and the distribution of such payments to our overseas subsidiary as dividends from SGOCO International. If any of our Hong Kong subsidiaries, Beijing SGOCO or Riches Elites incurs debt on its own behalf in the future, the instruments governing such debt may restrict their ability to pay dividends to us.

Under the current practice of the Inland Revenue Department of Hong Kong, no tax is payable in Hong Kong in respect of dividends paid by us. Any limitation on the ability of our Hong Kong subsidiaries to pay dividends or make other distributions to us could materially and adversely limit our ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business. Shareholders of a Cayman company will not be subject to any income, withholding or capital gains taxes in the Cayman Islands with respect to their shares in the Cayman company and dividends received on those shares, nor will they be subject to any estate or inheritance taxes in the Cayman Islands. There are no exchange controls in the Cayman Islands. Under the Companies Act, a Cayman company may declare and pay a dividend to shareholders from time to time out of the profits or out of the share premium account, provided that the company shall be able to pay its debts as they fall due in the ordinary course of business.

The PRC government imposes controls on the conversion of Renminbi ("RMB"), the legal currency of the PRC, into foreign currencies and the remittance of currencies out of the PRC. Therefore, we may experience difficulties in completing the administrative procedures necessary to obtain and remit foreign currency for the payment of dividends from our profits, if any. Cash dividends, if any, on our ordinary shares will be paid in U.S. dollars. Certain payments from the Beijing SGOCO and Riches Elites to SGOCO International (HK) Limited and Riches Advisory Limited are subject to PRC taxes, including business taxes and VAT. If we are considered a PRC tax resident enterprise for tax purposes, any dividends we pay to our overseas shareholders may be regarded as China-sourced income and as a result may be subject to PRC withholding tax at a rate of up to 10.0%.

Under existing PRC foreign exchange regulations, payments of current account items, including profit distributions, interest payments and expenditures from trade-related transactions can be made in foreign currencies without prior approval from SAFE by complying with certain procedural requirements. However, approval from appropriate government authorities is required where RMB is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. The PRC government may also at its discretion restrict access in the future to foreign currencies for current account transactions. If the foreign exchange control system prevents us from obtaining sufficient foreign currency to satisfy our currency demands, we may not be able to pay dividends in foreign currencies to our security-holders.

There can be no assurance that the PRC government will not intervene or impose restrictions on our ability to transfer or distribute cash within our organization or to foreign investors, which could result in an inability or prohibition on making transfers or distributions outside of China or Hong Kong and adversely affect our business.

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

***If we are classified as a PRC resident enterprise for PRC income tax purposes, such classification could result in unfavorable tax consequences to us and our non-PRC shareholders.***

Under the PRC Enterprise Income Tax Law and its implementation rules, an enterprise established outside of the PRC with its "de facto management body" within the PRC is considered a "resident enterprise" and will be subject to the enterprise income tax on its global income at the rate of 25%. The implementation rules define the term "de facto management body" as the body that exercises full and substantial control and overall management over the business, productions, personnel, accounts and properties of an enterprise. In 2009, the SAT issued a circular, known as SAT Circular 82, which provides certain specific criteria for determining whether the "de facto management body" of a PRC-controlled enterprise that is incorporated offshore is located in China. Although this circular applies only to offshore enterprises controlled by PRC enterprises or PRC enterprise groups, not those controlled by PRC individuals or foreigners, the criteria set forth in the circular may reflect the SAT's general position on how the "de facto management body" text should be applied in determining the tax resident status of all offshore enterprises. According to SAT Circular 82, an offshore incorporated enterprise controlled by a PRC enterprise or a PRC enterprise group will be regarded as a PRC tax resident by virtue of having its "de facto management body" in China, and will be subject to PRC enterprise income tax on its global income only if all of the following conditions are met: (i) the primary location of the day-to-day operational management is in the PRC; (ii) decisions relating to the enterprise's financial and human resource matters are made or are subject to approval by organizations or personnel in the PRC; (iii) the enterprise's primary assets, accounting books and records, company seals, and board and shareholder resolutions are located or maintained in the PRC; and (iv) at least 50% of voting board members or senior executives habitually reside in the PRC.

We believe our company is not a PRC resident enterprise for PRC tax purposes. However, there can be no assurance that the PRC tax authorities will take a view that is not contrary to our opinion. If our company was considered as a PRC resident enterprise for enterprise income tax purposes, we would be subject to PRC enterprise income on our worldwide income at the rate of 25%. Furthermore, we would be required to withhold a 10% tax from dividends we pay to our shareholders that are non-resident enterprises. In addition, non-resident enterprise shareholders (including the common shareholders) may be subject to PRC tax on gains realized on the sale or other disposition of the common stock, if such income is treated as sourced from within the PRC. Furthermore, if we are deemed a PRC resident enterprise, dividends paid to our non-PRC individual shareholders (including the common shareholders) and any gain realized on the transfer of the common stock or ordinary shares by such shareholders may be subject to PRC tax at a rate of 20% (which, in the case of dividends, may be withheld at source by us). These rates may be reduced by an applicable tax treaty, but it is unclear whether non-PRC shareholders of our company would be able to claim the benefits of any tax treaties between their country of tax residence and the PRC in the event that we are treated as a PRC resident enterprise. Any such tax may reduce the returns on your investment in our Ordinary Shares.

***U.S. regulatory bodies may be limited in their ability to conduct investigations or inspections of our operations in China.***

Any disclosure of documents or information located in China by foreign agencies may be subject to jurisdiction constraints and must comply with China's relevant laws. There is no guarantee that requests from U.S. federal or state regulators or agencies to investigate or inspect our operations will be honored by us, by entities who provide services to us or with whom we associate, without violating PRC legal requirements, especially as those entities are located in China. Furthermore, an on-site inspection of our facilities by any of these regulators shall also be subject to the current PRC laws.

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

***PRC regulation of loans to and direct investment in PRC entities by offshore holding companies may delay us from using the proceeds of our IPO to make loans or additional capital contributions to our PRC subsidiaries, which could materially and adversely affect our liquidity and our ability to fund and expand our business.***

Any funds we transfer to our PRC subsidiaries, either as a shareholder loan or as an increase in registered capital, are subject to approval by or registration with relevant governmental authorities or the authorized local banks in China. According to the relevant PRC regulations on foreign-invested enterprises, or FIEs, in China, capital contributions to our PRC subsidiaries are subject to registration with the relevant market supervisory authorities and local banks authorized by the State Administration of Foreign Exchange, or SAFE. In addition, (i) a foreign loan of less one year duration procured by our PRC subsidiaries is required to be registered with SAFE or its local branches and (ii) a foreign loan of one year duration or more procured by our PRC subsidiaries is required to be applied to the NDRC in advance for undergoing recordation registration formalities. Any medium or long-term loan to be provided by us to our PRC operating subsidiary, must be registered with the NDRC and the SAFE or its local branches. We may not be able to complete such registrations on a timely basis, with respect to future capital contributions or foreign loans by us to our PRC Subsidiaries. If we fail to complete such registrations, our ability to use the proceeds of our IPO and to capitalize our PRC operations may be negatively affected, which could adversely affect our liquidity and our ability to fund and expand our business.

***Political risks associated with conducting business in Hong Kong.***

Our headquarters is based in Hong Kong and we have operations in Hong Kong. Accordingly, our business operation and financial conditions will be affected by the political and legal developments in Hong Kong. During the period covered by the financial information incorporated by reference into and included in this annual report, we maintain substantial operations in Hong Kong, especially through Giant Credit. Any adverse economic, social and/or political conditions, material social unrest, strike, riot, civil disturbance or disobedience, as well as significant natural disasters, may affect the market may adversely affect the business operations of Giant Credit and the Company. Hong Kong is a special administrative region of the PRC and the basic policies of the PRC regarding Hong Kong are reflected in the Basic Law, namely, Hong Kong's constitutional document, which provides Hong Kong with a high degree of autonomy and executive, legislative and independent judicial powers, including that of final adjudication under the principle of "one country, two systems". However, there is no assurance that there will not be any changes in the economic, political and legal environment in Hong Kong in the future. Since our operation is based in Hong Kong, any change of such political arrangements may pose immediate threat to the stability of the economy in Hong Kong, thereby directly and adversely affecting our results of operations and financial positions.

Under the Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China, Hong Kong is exclusively in charge of its internal affairs and external relations, while the government of the PRC is responsible for its foreign affairs and defense. As a separate customs territory, Hong Kong maintains and develops relations with foreign states and regions. Based on certain recent development including the Law of the People's Republic of China on Safeguarding National Security in the Hong Kong Special Administrative Region issued by the Standing Committee of the PRC National People's Congress in June 2020, the U.S. State Department has indicated that the United States no longer considers Hong Kong to have significant autonomy from China and at the time President Trump signed an executive order and Hong Kong Autonomy Act, or HKAA, to remove Hong Kong's preferential trade status and to authorize the U.S. administration to impose blocking sanctions against individuals and entities who are determined to have materially contributed to the erosion of Hong Kong's autonomy. The United States may impose the same tariffs and other trade restrictions on exports from Hong Kong that it places on goods from mainland China. These and other recent actions may represent an escalation in political and trade tensions involving the U.S, China and Hong Kong, which could potentially harm our business.

Given the relatively small geographical size of Hong Kong, any of such incidents may have a widespread effect on our business operations, which could in turn adversely and materially affect our business, results of operations and financial condition. It is difficult to predict the full impact of the HKAA on Hong Kong and companies with operations in Hong Kong like us. Furthermore, legislative or administrative actions in respect of China-U.S. relations could cause investor uncertainty for affected issuers, including us, and the market price of our Ordinary Shares could be adversely affected.

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

***The recent joint statement by the SEC and PCAOB, proposed rule changes submitted by Nasdaq, and the Holding Foreign Companies Accountable Act all call for additional and more stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors who are not inspected by the PCAOB.***

On April 21, 2020, SEC Chairman Jay Clayton and PCAOB Chairman William D. Duhnke III, along with other senior SEC staff, released a joint statement highlighting the risks associated with investing in companies based in or have substantial operations in emerging markets including China. The joint statement emphasized the risks associated with lack of access for the PCAOB to inspect auditors and audit work papers in China and higher risks of fraud in emerging markets.

On May 18, 2020, Nasdaq filed three proposals with the SEC to (i) apply minimum offering size requirement for companies primarily operating in "Restrictive Market", (ii) adopt a new requirement relating to the qualification of management or board of director for Restrictive Market companies, and (iii) apply additional and more stringent criteria to an applicant or listed company based on the qualifications of the company's auditors.

On May 20, 2020, the U.S. Senate passed the Holding Foreign Companies Accountable Act requiring a foreign company to certify it is not owned or controlled by a foreign government if the PCAOB is unable to audit specified reports because the company uses a foreign auditor not subject to PCAOB inspection. If the PCAOB is unable to inspect the company's auditors for three consecutive years, the issuer's securities are prohibited to trade on a national securities exchange or in the over the counter trading market in the U.S. On December 2, 2020, the U.S. House of Representatives approved the Holding Foreign Companies Accountable Act. On December 18, 2020, the Holding Foreign Companies Accountable Act was signed into law. In June 2021, the Senate passed the Accelerating Holding Foreign Companies Accountable Act, which, if signed into law, would reduce the time period for the delisting under the HFCA Act to two years, instead of three years.

On March 24, 2021, the SEC adopted interim final rules relating to the implementation of certain disclosure and documentation requirements in the HFCA Act. On December 2, 2021, the SEC adopted amendments to finalize rules implementing the submission and disclosure requirements in the HFCA Act. The rules apply to registrants that the SEC identifies as having filed an annual report with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction and that PCAOB is unable to inspect or investigate. We will be required to comply with these rules if the SEC identifies us as having a "non-inspection" year under a process to be subsequently established by the SEC. The final amendments require any identified registrant to submit documentation to the SEC establishing that the registrant is not owned or controlled by a government entity in the public accounting firm's foreign jurisdiction, and also require, among other things, disclosure in the registrant's annual report regarding the audit arrangements of, and government influence on, such registrants. Under the HFCA Act, our securities may be prohibited from trading on the Nasdaq or other U.S. stock exchanges if our auditor is not inspected by the PCAOB for three consecutive years, and this ultimately could result in our Ordinary Shares being delisted.

On June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies Accountable Act, which, if enacted, would amend the HFCA Act and require the SEC to prohibit an issuer's securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three, and thus, would reduce the time before our Ordinary Shares may be prohibited from trading or delisted.

If any such policies or deliberations were to materialize, the resulting legislation, if it were to apply to us, would likely have a material adverse impact on our business and the price of our ordinary shares. Should the PCAOB determine that it cannot inspect or fully investigate our auditor for three consecutive years, an exchange may determine to delist our securities.

On December 16, 2021, the PCAOB issued a report on its determinations that it was unable to inspect or investigate completely PCAOB-registered public accounting firms headquartered in Mainland China and in Hong Kong, because of positions taken by PRC authorities in those jurisdictions. The PCAOB made its determinations pursuant to PCAOB Rule 6100, which provides a framework for how the PCAOB fulfills its responsibilities under the HFCA Act. The report further listed in its Appendix A and Appendix B, Registered Public Accounting Firms Subject to the Mainland China Determination and Registered Public Accounting Firms Subject to the Hong Kong Determination, respectively. Our current auditor, AssentSure PAC is headquartered in Singapore, and did not appear as part of the determination and was not listed under its appendix A or appendix B.

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

However, we cannot assure you whether Nasdaq or regulatory authorities would apply additional and more stringent criteria to us after considering the effectiveness of our auditor's audit procedures and quality control procedures, adequacy of personnel and training, or sufficiency of resources, geographic reach or experience as it relates to the audit of our financial statements. In addition, the December 2, 2021 amendments and any additional actions, proceedings, or new rules resulting from these efforts to increase U.S. regulatory access to audit information could create some uncertainty for investors, the market price of our ordinary shares could be adversely affected, and we could be delisted if we and our auditor are unable to meet the PCAOB inspection requirement or being required to engage a new audit firm, which would require significant expense and management time.

On December 15, 2022, the PCAOB determined that the PCAOB was able to secure complete access to inspect and investigate registered public accounting firms headquartered in mainland China and Hong Kong and voted to vacate its previous determinations to the contrary. However, should PRC authorities obstruct or otherwise fail to facilitate the PCAOB's access in the future, the PCAOB will consider the need to issue a new determination. Our securities may be delisted or prohibited from trading if the PCAOB determines that it cannot inspect or investigate completely our auditor under the HFCAA.

On December 29, 2022, a legislation entitled "Consolidated Appropriations Act, 2023" (the "Consolidated Appropriations Act") was signed into law by President Biden, which contained, among other things, an identical provision to Accelerating Holding Foreign Companies Accountable Act and amended the Holding Foreign Companies Accountable Act by requiring the SEC to prohibit an issuer's securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three, thus reducing the time before our Ordinary Shares may be prohibited from trading or delisted. The delisting or the cessation of trading of our Ordinary Shares, or the threat of their being delisted or prohibited from being traded, may materially and adversely affect the value of your investment.

**Risks Relating to Our Shares**

***We are currently appealing an adverse judgment civil lawsuit in Hong Kong; if our appeal is unsuccessful, we may be unable to satisfy the judgment, which could result in the filing of a winding-up petition against us and the liquidation of our assets.***

A judgement issued by the High Court of Hong Kong Special Administrative Region Court of First Instance in connection with the action no. HCA 938/2022 was filed, whereby it was ordered, amongst others, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company and the subsidiaries, SGOCO International (HK) Limited and Giant Connection Limited, amongst other defendants, are jointly and severally liable for payment of $163,400,000 Hong Kong Dollars; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company and the subsidiary, SGOCO International (HK) Limited, amongst other defendants, are jointly and severally liable for payment of $241,400,000 Hong Kong Dollars.

Subsequently:

On August 20, 2025, the Company received a winding up petition dated July 24, 2025, filed by Real Estate and Finance Fund (in Liquidation) with the Grand Court of the Cayman Islands. The Petitioner sets out in the Petition that the Company is insolvent and unable to pay its debts to the Petitioner as a result of the Judgement, or in the alternative, the winding up of the Company on just and equitable grounds. The hearing of the Petition was originally set to take place on October 9, 2025.

On July 21, 2025, the Company filed a Notice of Appeal, dated July 21, 2025, in respect of the Judgement and a summons dated September 30, 2025 to stay execution of the Judgement pending determination of the appeal (the "HK Stay Application").

On October 9, 2025, a consent order was granted by the Grand Court of the Cayman Islands, pursuant to which the hearing of the Petition has been ordered to be adjourned until after determination of the HK Stay Application.

On November 24, 2025, the High Court of Hong Kong Special Administrative Region Court of First Instance issued a Notice of Hearing for stay of execution of the judgement on May 8, 2026.

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

On December 24, 2025, the High Court of the Hong Kong Special Administrative Region Court of Appeal issued a Notice of Hearing regarding the appeal from the Court of First Instance (Final), noting that the appeal with regards to the action no. HCA 938/2022 will be heard on February 24, 2027, with hearing dates of February 24 to February 26, 2027 being reserved.

On February 12, 2026, the High Court of Hong Kong Special Administrative Region Court of First Instance issued a Notice of Hearing for directions on consequential matters on August 20, 2026. For more information, see Legal Proceedings- Civil Lawsuits in Hong Kong.

If the appeal with regards to the action no. HCA938/2022 is unsuccessful, the Company may be subject to winding up proceedings from the Grand Court of the Cayman Islands, which could have immediate consequences, including:

Insolvency Proceedings: The court may appoint a liquidator or provisional liquidator to take control of our affairs.

Acceleration of Debt: A winding-up petition or the underlying judgment may trigger "cross-default" provisions in our existing credit facilities and indentures, making all our outstanding debt immediately due and payable.

Asset Seizure: Our operational assets, bank accounts, and intellectual property could be seized or frozen to satisfy the claims of the judgment creditor and other claimants.

Equity Devaluation: In a winding-up scenario, the claims of secured and unsecured creditors rank ahead of equity holders. It is highly likely that our Ordinary Shares would be rendered worthless.

Reputational and Operational Harm: The mere filing of a petition may cause our suppliers to cease supply, customers to terminate contracts, and employees to resign, effectively halting our business operations.

We cannot assure you that we will prevail on appeal or that we will be able to settle the claim on terms that do not materially impair our liquidity. The Management believes that as of the date of this Report, the Company can sufficiently settle the claim should the Company be unable to appeal the claim. If we are unable to resolve this matter favorably, we may be forced to cease operations and liquidate, and you may lose your entire investment.

***We may fail to meet continued listing requirements on the NASDAQ Capital Market***

Our ordinary shares are listed on the NASDAQ Capital Market. We must comply with various NASDAQ Marketplace rules to maintain the listing of our securities. The NASDAQ listing rules require, among other things, that a company's stock trading to maintain a minimum bid price of $1.00. If a NASDAQ-listed company trades below the minimum bid price requirement for 30 consecutive business days, it will be notified of the deficiency.

To regain compliance with the minimum, bid price requirement, the Company must have a minimum, closing bid price of $1.00 or more for a minimum of ten consecutive business days during a 180-day compliance period. If compliance does not occur within the applicable 180-day compliance period, the Staff will notify the Company that its securities will be delisted from the NASDAQ Capital Market. However, the Company may appeal the Staff's determination to delist its securities to a Hearing Panel. During any appeal process, the Company's ordinary shares would continue to trade on the NASDAQ Capital Market.

If our securities were to be delisted from NASDAQ, the trading of our securities could possibly be shifted to the OTC Bulletin Board or the Pink Sheets. But, that would make it more difficult to dispose of, or obtain accurate quotations for the price of, our securities. In addition, such a development would likely also reduce the already limited coverage of our Company by security analysts and the news media. Delisting and these other effects could cause the price of our securities to decline further.

***A large, active trading market for our securities may not develop and the trading price for our securities may fluctuate significantly.***

We cannot assure that a liquid public market for the ordinary shares will develop. If a large, active public market for the ordinary shares does not develop, the market price and liquidity of the ordinary shares may be materially adversely affected. As a result, investors in our securities may experience a significant decrease in the value of the ordinary shares.

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

***The trading price of the ordinary shares is likely to be volatile, which could result in substantial losses to investors.***

The trading price of the ordinary shares is likely to be volatile and could fluctuate widely due to factors beyond our control. This may happen because of broad market and industry factors, including the performance and fluctuation of the market prices of other companies with operations located mainly in China that have listed their securities in the United States. In addition to market and industry factors, the price and trading volume for the ordinary shares and/or Warrants may be highly volatile for factors specific to our own operations, including the following:

● variations in our net revenue, earnings and cash flows;

● announcements of new investments, acquisitions, strategic partnerships or joint ventures by us or our competitors;

● announcements of new offerings and expansions by us or our competitors;

● changes in financial estimates by securities analysts;

● detrimental adverse publicity about us, our shareholders, affiliates, directors, officers or employees, our business model, our services or our industry;

● announcements of new regulations, rules or policies relevant for our business;

● additions or departures of key personnel;

● release of lock-up or other transfer restrictions on our outstanding equity securities or sales of additional equity securities; and

● potential litigation or regulatory investigations.

Any of these factors may result in large and sudden changes in the volume and price at which the ordinary shares will trade.

In the past, shareholders of public companies have often brought securities class action suits against those companies following periods of instability in the market price of their securities. If we were involved in a class action suit, it could divert a significant amount of our management's attention and other resources from our business and require us to incur significant expenses to defend the suit, which could harm our results of operations.

Any such class action suit, whether or not successful, could harm our reputation and restrict our ability to raise capital in the future. In addition, if a claim is successfully made against us, we may be required to pay significant damages, which could materially adversely affect our financial condition and results of operations.

***Techniques employed by short sellers may drive down the market price of the ordinary shares.***

Short selling is the practice of selling securities that the seller does not own but rather has borrowed from a third party with the intention of buying identical securities back at a later date to return to the lender. The short seller hopes to profit from a decline in the value of the securities between the sale of the borrowed securities and the purchase of the replacement shares, as the short seller expects to pay less in that purchase than it received in the sale.

As it is in the short seller's interest for the price of the security to decline, many short sellers publish, or arrange for the publication of, negative opinions regarding the relevant issuer and its prospects to create negative market momentum and generate profits for themselves after selling a security short. These short attacks have, in the past, led to selling of shares in the market.

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

Public companies that have substantially all of their operations in China have been the subject of short selling. Much of the scrutiny and negative publicity has centered on allegations of a lack of effective internal control over financial reporting resulting in financial and accounting irregularities and mistakes, inadequate corporate governance policies or a lack of adherence thereto and, in many cases, allegations of fraud. As a result, many of these companies are now conducting internal and external investigations into the allegations and, in the interim, are subject to shareholder lawsuits and/or SEC enforcement actions.

It is not clear what effect such negative publicity could have on us. If we were to become the subject of any unfavorable allegations, whether such allegations are proven to be true or untrue, we could have to expend significant resources to investigate such allegations and/or defend ourselves.

While we would strongly defend against any such short seller attacks, we may be constrained in the manner in which we can proceed against the relevant short seller by principles of freedom of speech, applicable state law or issues of commercial confidentiality. Such a situation could be costly and time-consuming, and could distract our management from growing our business. Even if such allegations are ultimately proven to be groundless, allegations against us could severely impact our business, and any investment in the ordinary shares could be greatly reduced or even rendered worthless.

***If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, the market price for the ordinary shares and trading volume could decline.***

The trading market for the ordinary shares will depend in part on the research and reports that securities or industry analysts publish about us or our business. If research analysts do not establish and maintain adequate research coverage or if one or more of the analysts who covers us downgrades the ordinary shares or publishes inaccurate or unfavorable research about our business, the market price for the ordinary shares would likely decline. If one or more of these analysts ceases coverage of our company or fails to publish reports on us regularly, we could lose visibility in the financial markets, which, in turn, could cause the market price or trading volume for the ordinary shares to decline.

***Our memorandum and articles of association contain anti-takeover provisions that could materially adversely affect the rights of holders of our ordinary shares.***

We have adopted an amended and restated memorandum and articles of association that contains provisions to limit the ability of others to acquire control of our company or cause us to engage in change-of-control transactions. These provisions could deprive our shareholders of an opportunity to sell their shares at a premium over prevailing market prices by discouraging third parties from seeking to obtain control of our company in a tender offer or similar transaction.

Our board of directors has the authority, subject to any resolution of the shareholders to the contrary, to issue preferred shares in one or more series and to fix their designations, powers, preferences, privileges, and relative participating, optional or special rights and the qualifications, limitations or restrictions, including dividend rights, conversion rights, voting rights, terms of redemption and liquidation preferences, any or all of which may be greater than the rights associated with our ordinary shares. Preferred shares could be issued quickly with terms calculated to delay or prevent a change in control of our company or make removal of management more difficult. If our board of directors decides to issue preferred shares, the price of our ordinary shares may fall and the voting and other rights of the holders of our ordinary shares may be materially adversely affected.

***We are a foreign private issuer within the meaning of the rules under the Exchange Act, and as such we are exempt from certain provisions applicable to U.S. domestic public companies.***

Because we qualify as a foreign private issuer under the Exchange Act, we are exempt from certain provisions of the securities rules and regulations in the United States that are applicable to U.S. domestic issuers, including:

● the rules under the Exchange Act requiring the filing with the SEC of quarterly reports on Form 10-Q or current reports on Form 8-K;

● the sections of the Exchange Act regulating the solicitation of proxies, consents or authorizations in respect of a security registered under the Exchange Act;

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

● the sections of the Exchange Act requiring insiders to file public reports of their stock ownership and trading activities and liability for insiders who profit from trades made in a short period of time; and

● the selective disclosure rules by issuers of material nonpublic information under Regulation FD.

We will be required to file an annual report on Form 20-F within four months of the end of each fiscal year. In addition, we intend to publish our results on a quarterly basis as press releases, distributed pursuant to the rules and regulations of Nasdaq. Press releases relating to financial results and material events will also be furnished to the SEC on Form 6-K.

However, the information we are required to file with or furnish to the SEC will be less extensive and less timely compared to that required to be filed with the SEC by U.S. domestic issuers. As a result, you may not be afforded the same protections or information that would be made available to you were you investing in a U.S. domestic issuer.

***There can be no assurance we will not be a passive foreign investment company ("PFIC"), for any taxable year, which could result in adverse U.S. federal income tax consequences to U.S. investors in our ordinary shares or Warrants.***

In general, we will be treated as a PFIC for any taxable year in which either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. at least 75% of our gross income (looking through certain 25% or more-owned corporate subsidiaries) is passive income; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. at least 50% of the average value of our assets (looking through certain 25% or more-owned corporate subsidiaries) are attributable to assets that produce, or are held for the production of, passive income.

Passive income generally includes, without limitation, dividends, interest, rents, royalties, and gains from the disposition of passive assets. If we are determined to be a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. Holder of our ordinary shares, the U.S. Holder may be subject to increased U.S. federal income tax liability and may be subject to additional reporting requirements. Our actual PFIC status for any taxable year will not be determinable until after the end of such taxable year. Accordingly, there can be no assurance as to our status as a PFIC for any taxable year. U.S. Holders of our ordinary shares are urged to consult their own tax advisors regarding the possible application of the PFIC rules.

If we were a PFIC for any taxable year during which a U.S. investor owns our ordinary shares or Warrants, certain adverse U.S. federal income tax consequences could apply to such U.S. investor. See "Taxation — Material U.S. Federal Income Tax Considerations — Passive Foreign Investment Company."

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

We are an exempt company incorporated under Cayman Islands' laws. Our corporate affairs are governed by our amended and restated memorandum and articles of association, the Companies Act, Cap. 22 (Act 3 of 1961, as consolidated and revised) of the Cayman Islands and Cayman Islands' common law. Shareholders' rights to take action against the directors, actions by minority shareholders and the fiduciary responsibilities of our directors to us under Cayman Islands' law are largely governed by Cayman Islands' common law. It is derived in part from comparatively limited judicial precedent in the Cayman Islands and from England's common law. English court decisions, however, are persuasive but not binding on a Cayman Islands' court.

Our shareholders' rights and our directors' fiduciary responsibilities under Cayman Islands law are not as clearly established as they would be under the statutes or case law in most U.S. jurisdictions. In particular, the Cayman Islands has a less developed body of securities laws than the U.S. Many U.S. states, such as Delaware, have more fully developed and judicially interpreted bodies of corporate law than the Cayman Islands. In addition, Cayman Islands companies may not have standing to initiate a shareholder derivative action in U.S. federal courts.

**The Cayman Islands' courts are also not likely:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. to recognize or enforce against us judgments of courts of the U.S. based on civil liability provisions of U.S. securities laws; and

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. to impose liabilities against us, in original actions brought in the Cayman Islands, based on civil liability provisions of U.S. securities laws that are penal in nature.

There is no statutory recognition in the Cayman Islands of judgments obtained in the U.S. but the Cayman Islands' courts will in certain circumstances recognize and enforce a non-penal judgment of a foreign court of competent jurisdiction without retrial on the merits subject to certain conditions.

Based on the above, shareholders may have more difficulty in protecting their interests against actions taken by management, members of the Board of Directors or controlling shareholders than they would as public shareholders of a company incorporated in the U.S.

***As a company incorporated in the Cayman Islands, we can adopt certain home country practices regarding corporate governance matters that differ significantly from the NASDAQ Stock Market corporate governance listing standards. These practices may provide less protection to shareholders than they would enjoy if we complied fully with the NASDAQ Stock Market corporate governance listing standards.***

As a Cayman Islands company listed on the NASDAQ Stock Market, we are subject to the NASDAQ Stock Market corporate governance listing standards. But, NASDAQ Stock Market rules permit a foreign private issuer like us to follow the corporate governance practices of its home country. Certain corporate governance practices in the Cayman Islands, which is our home country, may differ significantly from the NASDAQ Stock Market corporate governance listing standards.

For example, the Companies Act of the Cayman Islands does not require a majority of our directors to be independent. Therefore, we could include non-independent directors as members of our compensation committee and (if we chose to have one) our nominating committee. Finally, our independent directors would not necessarily hold regularly scheduled meetings at which only independent directors are present.

In addition, while NASDAQ Stock Market rules require that an issuer listing common stock hold an annual meeting of shareholders no later than one year after the end of the issuer's fiscal year-end, the Companies Act of the Cayman Islands does not require an exempted company to hold it (though the articles of association of an exempted company may provide otherwise). If we choose to follow home country practice, our shareholders may receive less protection than they otherwise would under the NASDAQ Stock Market corporate governance listing standards applicable to U.S. domestic issuers.

#### ITEM 4. INFORMATION ON THE COMPANY
A. History and Development of the Company.

#### Historical Structure
TROOPS, Inc. was incorporated as an exempted company in the Cayman Islands on July 18, 2007. It was previously named SGOCO Group, Ltd. and before that, SGOCO Technology, Ltd., and prior to the Acquisition was named Hambrecht Asia Acquisition Corp. The Company was formed as a blank check company to acquire one or more operating businesses in the PRC through a merger, stock exchange, asset acquisition or similar business combination or control through contractual agreements. The Company completed its initial public offering ("IPO") of units consisting of one ordinary share and one warrant to purchase one ordinary share on March 12, 2008.

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

Pursuant to our memorandum and articles of association, we were required to enter into a business combination transaction to acquire control of a business with its primary operation in the PRC with a fair market value of at least 80% of the trust account established at the time of our IPO, or the Trust Account, (excluding certain deferred underwriting commissions) prior to March 12, 2010, or dissolve and liquidate. The approval of the business combination transaction required the approval of a majority of the outstanding shares. It was conditioned on, among other matters, not more than 30% of the outstanding shares being properly tendered for redemption under our memorandum and articles of association. Each ordinary share issued in our IPO was entitled to be redeemed if it was voted against the business combination transaction at a price equal to the amount in the Trust Account divided by the number of shares issued in the IPO outstanding at the time, estimated to be approximately $8.00 million as of February 17, 2010.

On March 12, 2010, we acquired all of the outstanding shares of Honesty Group (the "Acquisition"). After the Acquisition closed, Honesty Group became a wholly-owned subsidiary of TROOPS. Honesty Group is a limited liability company registered in Hong Kong on September 13, 2005. Honesty Group owns 100% of Guanke, Guanwei and Guancheng. Guanke, Guanwei and Guancheng are limited liability companies established under the laws of the PRC. Honesty Group and its subsidiaries represented our core manufacturing facility along with land, buildings and production equipment. Honesty Group and its subsidiaries are now independent of the Company.

On July 26, 2010, TROOPS formed SGOCO International (HK) Limited, or SGOCO International, a limited liability company registered in Hong Kong ("SGOCO International"). SGOCO International and its subsidiaries were established for the purposes of conducting LCD/LED display product development, branding, marketing and distribution.

On February 22, 2011, SGO Corporation was established in Delaware USA. On March 14, 2011, SGOCO International purchased 100% of the outstanding shares of common stock of SGO. SGO was founded to market, sell and distribute TROOPS's high quality products in the U.S. markets. SGO was not operating during 2011 and started to operate in the first quarter of 2012.

SGOCO International directly owns 100% of SGOCO (Fujian) Electronic Co., Ltd. SGOCO (Fujian) is a limited liability company established under the corporate laws of the PRC on July 28, 2011 for the purposes of conducting LCD/LED display product development, branding, marketing and distribution.

On November 15, 2011, we entered into a Sale and Purchase Agreement ("Honesty SPA") to sell our 100% ownership interest in Honesty Group to Apex, a British Virgin Islands company.

On December 26, 2011, SGOCO International established another wholly owned subsidiary, Beijing SGOCO Image Technology Co. Ltd., a limited liability company under the laws of the PRC to conduct LCD/LED monitor, TV product-related and application-specific product design, brand development and distribution.

On November 14, 2013, SGOCO International established a wholly owned subsidiary, SGOCO (Shenzhen) Technology Co., Ltd., a limited liability company under the laws of the PRC for the purpose of conducting LCD/LED monitor, TV product-related and application-specific product design, brand development and distribution.

On December 24, 2014, we entered into a Sale and Purchase Agreement ("SPA") to sell our 100% equity ownership interest in SGOCO (Fujian) to Apex.

On December 28, 2015, SGOCO International entered into a Share Sale and Purchase Agreement for the Sale and Purchase of the entire issued share capital of Boca International Limited with Richly Conqueror Limited, a company incorporated under the laws of the British Virgin Islands. On June 7, 2018 and August 31, 2020, the Group disposed 49% and 51% equity interest of Boca International Limited to Leung Iris Chi Yu and Wong Yiu Tong, respectively.

On April 23, 2017, SGOGO International entered into a Share Sale and Purchase Agreement with Full Linkage Limited pursuant to which SGOCO International acquired all of the issued and outstanding capital stock of CSL. On June 7, 2018 and September 20, 2019, the Group disposed 49% and 51% equity interest of CSL to Leung Iris Chi Yu and Ho Pui Lung, respectively.

On December 15, 2017, TROOPS formed Giant Connection Limited, a limited liability company registered in Republic of Seychelles.

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

On December 22, 2017, Giant Connection Limited, a wholly-owned subsidiary of TROOPS, completed the acquisition of Giant Credit Limited. The principal activity of Giant Credit Limited is money lending in Hong Kong.

On March 8, 2018, Giant Connection Limited, a wholly-owned subsidiary of TROOPS, closed a Share Exchange Agreement with Vagas Lane Limited for the purchase and sale of 11 Hau Fook Street Limited. 11 Hau Fook Street Limited is an investment holding company which owns two properties located at No. 11 Hau Fook Street, Tsim Sha Tsui, Kowloon, Hong Kong.

On June 7, 2018, Giant Connection Limited, a wholly-owned subsidiary of TROOPS, completed the acquisition of Paris Sky Limited. Paris Sky Limited is an investment holding company which, through its wholly owned subsidiary, owns a property located at No. 8 Fui Yiu Kok Street, Tsuen Wan, New Territories, Hong Kong.

On March 12, 2019, the Company's wholly-owned subsidiary, Paris Sky Limited closed a Share Exchange Agreement for the entire issued share capital of Vision Lane Limited. Vision Lane is a private company incorporated in the British Virgin Islands, and engages in property investment and money lending services in Hong Kong.

On December 23, 2019, the Company entered into a Share Exchange Agreement with Victor Or for the purchase and sale of Giant Financial Services Limited. Giant Financial Services Limited is a private company incorporated in Samoa and provides an online financial marketplace connecting financial institutions and users worldwide via its unique mobile application which features state-of-the-art functions to boost financial accessibility to financial and insurance products and services.

On September 28, 2020, the Company's wholly-owned subsidiary, Giant Financial Services Limited closed a Share Exchange Agreement for the entire issued share capital of Apiguru Pty Ltd. Apiguru Pty Ltd. is a technology consulting company specialising in Application Programming Interface (API) strategy and implementation enabling state-of-the-art market fit hypothesis that drives businesses forward.

On May 9, 2024, TROOPS entered into a Sale and Purchase Agreement with LIANTENG LIMITED, for the purchase of the entire issued and outstanding share capital of Riches Holdings Limited, a company incorporated under the laws of Cayman Islands. Riches Holdings Limited consists of a group of subsidiaries specialized in provision of advisory, consultancy and referral services for various products and services through its unique mobile application (FinNet).

On July 31, 2024, TROOPS formed FOR THE FUTURE, Inc., a limited liability company registered in Republic of Seychelles. FOR THE FUTURE, Inc. offers a unique online platform and issues its own cryptocurrency, i.e. FTF token, enabling users to bid for products and services with FTF tokens through a user - friendly mobile application (FTF).

***Acquisition and sale of Honesty Group***

On March 12, 2010, we acquired all of the outstanding shares of Honesty Group (the "Acquisition"). In addition, at the meeting to approve the acquisition, the Holders of our outstanding warrants approved an amendment to the warrant agreement under which the warrants were issued to increase the exercise price per share of the warrants from $20.00 to $32.00. The Amendment also extended by one year the exercise period, or until March 7, 2014, and provided for redeeming the publicly-held warrants, at the Holder's option, for $2.00 per warrant when the Acquisition closes. We may redeem the warrants at a price of $0.04 per warrant upon a minimum of 30 days' prior written notice of redemption, if the last sale price of our ordinary shares equals or exceeds $46.00 per share (subject to adjustment for splits, dividends, recapitalization and other similar events) for any 20 trading days within a 30-trading day period ending three business days before we send the notice of redemption.

The Acquisition resulted in issuing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. 2,125,000 ordinary shares to the former shareholders of Honesty Group; and

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. 1,450,000 additional ordinary shares to the former shareholders of Honesty Group to be held in escrow and released if the following milestones were met by the combined Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If "Income from Existing Operations" for the year ended December 31, 2010 exceeded $15,000,000 (the "First Earn-Out Milestone"), the escrow agent would release 1,250,000 shares to the former shareholders of Honesty Group. The First Earn-Out Milestone was met during the year ended December 31, 2010. The shares were not released in 2011 but were released in 2012 to the former shareholders of Honesty Group; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If "Income from Existing Operations" for the year ended December 31, 2011 exceeded $20,000,000 (the "Second Earn-Out Milestone"), the escrow agent would release the remaining 200,000 shares to the former shareholders of Honesty Group. Those 200,000 shares were released in 2012.

In addition, 191,706 shares held by the original shareholders of the Company were placed in escrow pending satisfaction of certain conditions.

Those conditions included our reaching the earn-out milestones discussed above, as well as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Messrs. Robert Eu and John Wang providing the Company with 30 hours per month in services connected with investor relations, listing on the NASDAQ Global Stock Market or NASDAQ Global Select Stock Market, introducing investors and advisors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. listing of our shares on such stock markets if we act in good faith to obtain such a listing once the listing criteria are met; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. providing the opportunity for us to raise an additional $15.00 million in equity, subject to meeting certain prescribed pricing criteria.

Connected with the issuing of the 1,450,000 escrowed shares and the 191,706 escrowed shares, we, the original shareholders of the Company, and the Honesty Shareholders entered into an escrow agreement with Grand Pacific Investment Limited as escrow agent. Pursuant to that escrow agreement, the escrow agent agreed to hold the foregoing shares pending satisfaction of certain conditions within the applicable time periods. If the conditions were not met, some or all of the foregoing shares, would have been cancelled and returned to the status of authorized and unissued ordinary shares.

As stated above, the First and Second Earn-Out Milestones were met during the years ended December 31, 2011 and 2010 and a total of 1,450,000 shares were released to the former shareholders of Honesty Group.

In addition, of the 191,706 escrowed shares, 85,203 and 5,129 shares were earned in 2010 and 2011, respectively, but are not currently eligible to be released. The last measurement date to determine whether the conditions were met for the release of the 191,706 escrowed shares was December 31, 2011. However, on April 17, 2012, the escrow agreement was amended to provide additional time for the conditions to be met. Pursuant to the amendment, holders of the escrowed shares had until December 31, 2012 to meet the conditions for release. The escrow share agreement was further extended to December 31, 2013 and expired on that date, the remaining 101,374 escrow shares were cancelled on May 5, 2014.

We entered into various forward-purchase agreements with various hedge funds and other institutions for us to repurchase a total of 536,873 shares for an aggregate purchase price of $17,285,811 immediately after the closing of the Acquisition. After paying various fees and expenses, the redemption prices of shares and warrants and the forward-purchase contracts, the balance of approximately $5.40 million in the Trust Account was released to us when the Acquisition of Honesty Group was closed. After the closing of the Acquisition and the settlement of related transactions, we had outstanding 4,023,689 ordinary shares, of which 214,917 shares were initially issued in our IPO, and warrants to purchase 454,007 shares at a price of $32.00 per share, of which 391,507 were initially issued in our IPO.

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

After the Acquisition closed, Honesty Group became a wholly-owned subsidiary of TROOPS. Honesty Group is a limited liability company registered in Hong Kong on September 13, 2005. Honesty Group owns 100% of Guanke Electron Technological Industry Co., Ltd. ("Guanke"), Guanwei Electron Technological Industry Co., Ltd. ("Guanwei") and Guancheng Electron Technological Co., Ltd. ("Guancheng"). Guanke, Guanwei and Guancheng are limited liability companies established under the laws of the PRC. Honesty Group and its subsidiaries represented our core manufacturing facility along with land, buildings and production equipment. Honesty Group and its subsidiaries are now independent of the Company.

On November 15, 2011, we entered into a Sale and Purchase Agreement ("Honesty SPA") to sell our 100% ownership interest in Honesty Group to Apex, a British Virgin Islands company, for $76.00 million in total consideration. Honesty Group directly owns 100% of Guanke, Guanwei and Guancheng. The agreement was signed by the Company and Apex; shareholder ownership was transferred; and the director of Honesty Group was changed the same day. The Company's management considers November 30, 2011 as the disposal effective date. Operational and management control over Honesty Group was shifted from TROOPS to Apex on November 30, 2011.

According to the Honesty SPA, the $76.00 million in total consideration was to be paid in installments. As of May 31, 2012, we received the full amount of the consideration, of which:

cash of $1.00 million was received before December 31, 2011;<br>

cash of $19.00 million was received in 2012;<br>

purchase deposits paid to Honesty Group of $1 million and payables to Honesty Group of $10.00 million at the time of disposal were offset;<br>

goods of $9.00 million were received before December 31, 2011; and<br>

goods of $38.00 million were received in 2012.<br>

Pursuant to the Honesty SPA, Apex assumed our obligations to pay up the remaining capital of $8.80 million in Guanwei and to pay the remaining balance of approximately $14.00 million of the commitment to the Fujian Jinjiang government to invest in the Guanke Technology Park. In addition, the Honesty SPA required that for three years from the date of sale, Honesty Group must continue to provide TROOPS with products and services in the same or substantially similar manner as it did immediately prior to the completion of the transaction unless otherwise directed by TROOPS. The Honesty SPA also provided TROOPS with a right of first refusal for a period of five years from the date of sale to purchase from Apex any material rights or interests in Honesty Group's shares or assets before Apex offered to transfer such rights or interests to a third party.

Connected with the Sale of Honesty Group, Honesty Group transferred to TROOPS certain contracts and assets that are related to design and distribution of TROOPS's products, including research and development equipment, sales contracts with customers, contracts with retail sales sources, and trademarks and pending trademark applications.

The Sale of Honesty Group allowed TROOPS to transition to a "light-asset" business model with greater flexibility and scalability and focus its operations on designing, branding, marketing and distributing LCD/LED products in China. Through the transaction, the Company retained part of its customers, brand names, and the nationwide distribution network while substantially reducing its interest bearing liabilities.

***Prior to the Sale of Honesty Group, including its manufacturing assets, to Apex, Apex was an independent third party. It had no relationships with any of TROOPS's board members or management in 2011 (including former Chairman and CEO, Mr. Burnette Or and former CEO, Mr. Shi-bin Xie). In addition, Apex had no relationship with Sun Zone Investments Limited ("Sun Zone"), our principal shareholder and a company owned by our former Chairman.***

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

#### Sale of SGOCO (Fujian)
On December 24, 2014, we entered into a Sale and Purchase Agreement ("SPA") to sell our 100% equity ownership interest in SGOCO (Fujian) to Apex, which is an independent third party with interests in real estate and forestry products and previously purchased Honesty Group in November 2011. Our management considers December 31, 2014 as the disposal effective date. Operational and management control over SGOCO (Fujian) was shifted from TROOPS to Apex on December 31, 2014.

The sales price for all the equity of SGOCO (Fujian) was equivalent to the net asset value of SGOCO (Fujian) on December 31, 2014. The final amount was $11.00 million (the "Sale Price").

Apex also agreed to assume responsibility to settle the entire balance of intercompany accounts payable and other payables (the "Payables") due by SGOCO (Fujian) to us and our affiliates, which amounted to $80.40 million. Pursuant to the SPA, payments were made in several installments upon and after completion of the Sale. Each installment will be 10% of the Sale Price and Payables of $91.40 million. The first installment was due 14 days after the completion of the transaction, and the last installment (approximately 10% of the sale price) was to be settled prior to June 30, 2015. We received the full amount of Sale Price and settlement of the Payables during 2015. The transfer of the Sale Equity was effective on December 31, 2014.

The SPA also states that TROOPS has a right of first refusal for a period of five years that prohibits Apex from selling, assigning or otherwise transferring any material interests, ownership or rights in or related to SGOCO (Fujian) including any equity, leases, businesses and equipment to a third party, without first offering to sell or transfer to TROOPS.

The Sale of SGOCO (Fujian) allowed TROOPS to restructure its business and reduce the reliance on traditional flat panel LED and LCD monitor products. It also provided greater flexibility and scalability for our business model, which enables us to focus on finding new business acquisition opportunities and exploring new products.

#### Warrant Repurchase and Retirement
To reduce the potential for future EPS dilution, in 2011, the Company repurchased and retired a total of 304,294 warrants that had a strike price of $32.00. Those warrants included 241,794 publicly-traded warrants for an aggregate purchase price of $360,610 (or $1.48 per warrant), and 250,000 sponsor warrants for an aggregate purchase price of $125,000 (or $2.00 per warrant), in private transactions. On March 7, 2014, the remaining 149,713 publicly-traded warrants expired. There were no outstanding sponsor and publicly-traded warrants as of December 31, 2016.

Additionally, the Company, in private transactions, repurchased and retired a total of 13,274 of the warrants that had a strike price of $24.00 issued to its underwriters in the December 2010 offering for an aggregate purchase price of $26,548 (or $2.00 per warrant). These warrants were expired on December 20, 2015.

Through the repurchase and retirement of these warrants, the Company decreased the long-term risks of dilution that might have occurred if these warrants were exercised.

#### Acquisition and disposal of Boca
On December 28, 2015, SGOCO International entered into a Share Sale and Purchase Agreement for the Sale and Purchase of the Entire Issued Share Capital of Boca International Limited (the "Agreement") with Richly Conqueror Limited, a company incorporated under the laws of the British Virgin Islands (the "Vendor"). Pursuant to the Agreement, SGOCO International acquired 100% of the issued share capital of Boca International Limited. ("Boca"), a private company incorporated in Hong Kong, from its sole legal and beneficial owner - Richly Conqueror Limited at a consideration of $52.00 million in cash, plus up to 19.9% newly issued ordinary shares (the "Shares") of the Company. In March, 2016, the acquisition of Boca was completed and SGOCO International fully paid $52.00 million plus 1,162,305 post-split shares of common stock of the Company and received 100% ownership of Boca. The transaction was closed on March 31, 2016.

Boca is principally engaged in environmental protection, energy saving technologies, equipment development and applications. Its business involves production and sales of phase change thermal energy storage materials as well as central air conditioning cooling and heating system application engineering.

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

On June 7, 2018, the Company transferred its 49% interest in Boca International Limited at an agreed value of HK$184.84 million ($23.70 million) to Leung Iris Chi Yu ("Ms. Leung"). On August 31, 2020, the Company's wholly-owned subsidiary, SGOCO International (HK) Limited entered into a Sale and Purchase Agreement for the disposal of 94 shares in the share capital of Boca International Limited, being 51% of its entire issued share capital. Upon the satisfactory completion of the closing conditions contained in the Agreement, the disposal shall be consummated in consideration for the transfer of a 51% interest in Boca International Limited to Wong Yiu Tong at an agreed value of HK$1.46 million ($0.19 million). The Company considers August 31, 2020 as the disposal effective date since the operational and management control over Boca was shifted from TROOPS to the Purchaser on August 31, 2020.

#### Acquisition and disposal of Century Skyway Limited
***On April 23, 2017, SGOGO International entered into a Share Sale and Purchase Agreement with Full Linkage Limited (the "Seller") pursuant to which SGOCO International acquired all of the issued and outstanding capital stock of Century Skyway Limited, which was owned by Full Linkage Limited. In consideration for the acquisition of Century Skyway, SGOCO International paid to the Seller $32,600,000 and TROOPS issued to the Seller 1,500,000 of its ordinary shares. The consummation of the transactions contemplated by the Share Sale and Purchase Agreement occurred on May 10, 2017.***

On June 7, 2018, the Company transferred its 49% interest in CSL at an agreed value of HK$126.13 million ($16.17 million) to Leung Iris Chi Yu ("Ms. Leung"). In the fourth quarter of 2018, management committed a plan to dispose of its remaining 51% equity interests in CSL and initiated efforts to locate buyers. On April 25, 2019, the Company entered into a Letter of Intent (the "LOI") to sell to another individual, Ho Pui Lung (the "Purchaser") 5,100 shares in the share capital of CSL, at a consideration of HK$99.45 million ($12.75 million).

On September 20, 2019, the Company wholly-owned subsidiary, SGOCO International (HK) Limited entered into a Share Exchange Agreement for the disposal of 5,100 shares in the share capital of Century Skyway Limited, being 51% of its entire issued share capital, and its fully owned subsidiary – Shen Zhen Provizon Technology Co., Limited.

Upon the satisfactory completion of the closing conditions contained in the Agreement, the disposal shall be consummated in consideration for the transfer of a 51% interest in Century Skyway Limited to Ho Pui Lung at an agreed value of HK$99.45 million ($12.75 million). The Company considers December 31, 2019 as the disposal effective date since the operational and management control over Century Skyway Limited and Shen Zhen Provizon Technology Co., Limited were shifted from TROOPS to the Purchaser on December 31, 2019.

#### Acquisition of Giant Credit Limited
On December 22, 2017, Giant Connection Limited, a wholly-owned subsidiary of TROOPS, completed the acquisition of Giant Credit Limited contemplated by the Share Exchange Agreement entered into by and between Luk Lai Ching Kimmy and the Company in consideration for HK$19.60 million ($2.35 million), which was satisfied by the allotment and issuance of 2,220,283 ordinary shares of the Company. The principal activity of Giant Credit Limited is money lending in Hong Kong.

#### Acquisition of 11 Hau Fook Street Limited
***On March 8, 2018, Giant Connection Limited, a wholly-owned subsidiary of TROOPS, closed a Share Exchange Agreement with Vagas Lane Limited for the purchase and sale of 11 Hau Fook Street Limited in consideration for HK$26.10 million ($3.35 million), which was satisfied by the allotment and issuance of 2,935,222 ordinary shares. 11 Hau Fook Street Limited is an investment holding company which owns two properties located at No. 11 Hau Fook Street, Tsim Sha Tsui, Kowloon, Hong Kong.***

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

#### Acquisition of Paris Sky Limited
***On June 7, 2018, Giant Connection Limited, a wholly-owned subsidiary of TROOPS, completed the acquisition of Paris Sky Limited. In consideration for (1) the allotment of 3,889,050 ordinary shares of the Company to Leung Iris Chi Yu ("Ms. Leung"), at an initial agreed value of HK$30.33 million ($3.89 million), the fair value of the 3,889,050 ordinary shares was $4.78 million, which was calculated based on the stock price of $1.23 per share on June 7, 2018, (2) the transfer of a 49% interest in Century Skyway Limited at an agreed value of HK$126.13 million ($16.17 million), (3) the transfer of a 49% interest in Boca International Limited at an agreed value of HK$184.84 million ($23.70 million), and (4) the issuance of a promissory note to Ms. Leung in the principal amount of HK$27.10 million ($3.47 million), bearing a 8% interest, by Giant Connection Limited, the Company acquired 100% of the issued share capital of Paris Sky Limited, an investment holding company which, through its wholly owned subsidiary, owns a property located at No. 8 Fui Yiu Kok Street, Tsuen Wan, New Territories, Hong Kong. The Company repaid the promissory note in full on August 22, 2018.***

#### Acquisition of Vision Lane Limited
On March 12, 2019, the Company's wholly-owned subsidiary, Paris Sky Limited closed a Share Exchange Agreement for the entire issued share capital of Vision Lane Limited. The acquisition was initially consummated in consideration for a total of $12.42 million, satisfied by (1) the allotment of 4,519,347 ordinary shares of the Company to Kwok Man Yee Elvis, at $1.10 per share and (2) the payment of $7.46 million in cash. The fair value of the 4,519,347 ordinary shares was $5.24 million, which was calculated based on the stock price of $1.16 per share on March 8, 2019, and the final consideration was $12.74 million. Vision Lane is a private company incorporated in the British Virgin Islands, and engages in property investment and money lending services in Hong Kong.

#### Acquisition of Giant Financial Services Limited
On December 23, 2019, the Company entered into a Share Exchange Agreement with Victor Or for the purchase and sale of Giant Financial Services Limited. GFS is a private company incorporated in Samoa and provides an online financial marketplace connecting financial institutions and users worldwide via its unique mobile application which features state-of-the-art functions to boost financial accessibility to financial and insurance products and services. At the heart of its digital platform is the Company's dedication to drive innovation, create value to businesses and individual users alike by (i) minimizing transaction risks, (ii) lowering transaction costs, (iii) reducing and detecting fraud, (iv) saving time, (v) increasing access and equality.

***The total consideration to be paid for GFS is $64.34 million, which shall be satisfied by (a) the allotment of 15,992,000 shares of the Company to be issued to Mr. Or on the closing date, representing 19.9% of the total issued and outstanding shares of the Company as of the date of the Agreement, (b) the payment of $21.79 million in cash, and (c) the balance satisfied by issuance of a promissory note to Mr. Or. On January 31, 2020, TROOPS, Inc. closed its previously announced acquisition of GFS. By March 30, 2021, the Company repaid the promissory note in full by several payments.***

#### Acquisition of Apiguru
On September 28, 2020, the Company's wholly-owned subsidiary, Giant Financial Services Limited closed a Share Exchange Agreement for the entire issued share capital of Apiguru Pty Ltd.. The acquisition was consummated in consideration for a total of AUD0.70 million ($0.59 million), which was satisfied by the allotment and issuance of 559,581 ordinary shares of the Company. Apiguru is a technology consulting company specialising in Application Programming Interface (API) strategy and implementation enabling state-of-the-art market fit hypothesis that drives businesses forward. Through providing API consulting services, Apiguru helps businesses increasing effectivity, optimizing productivity, and developing integration channels that leverage opportunities for generating new revenue sources. GFS aims to serve clients from different sectors with distinctive needs. Along together with API specialization, Apiguru helps GFS to integrate with various global platforms to expand customer base.

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

#### Acquisition of Riches Holdings
On January 24, 2024, the Company entered into a letter of intent with LIANTENG LIMITED to acquire all of the issued share capital of Riches Holdings, which holds several subsidiaries in Hong Kong and China. These subsidiaries provide various services, including i) financial and insurance advisory services in cooperation with licensed companies, ii) immigration consultation services on foreign immigration schemes, iii) overseas education advisory and application services, and iv) property agency services, by connecting clients to professional consultants through its mobile application. Riches, with its all-rounded services and strong client base, is expected to bring extensive synergy to the existing businesses of the Company.

On May 9, 2024, the Company entered into a sale and purchase agreement with LIANTENG LIMITED, for the purchase of the entire issued and outstanding share capital of Riches Holdings, for the consideration of $13,400,000. The consideration shall be satisfied by the Company through the issuance of Convertible Note 2024 to LIANTENG LIMITED for the principal amount of $13,400,000. The Convertible Note 2024 was issued by the Company to LIANTENG LIMITED on May 9, 2024, with a maturity date of May 9, 2029. On May 31, 2024, the Company closed its previously announced acquisition of Riches Holdings.

On December 9, 2024, the Company received a notice of conversion from LIANTENG LIMITED to exercise a conversion of US$6,700,000 into 5,473,856 ordinary shares, par value $0.004 per share, of the Company. On December 10, 2024, the Company received a notice of conversion from LIANTENG LIMITED to exercise a conversion of US$6,700,000 into 5,438,312 ordinary shares of the Company. The conversion in aggregate of 10,912,168 ordinary shares was completed on December 11, 2024.

***Sale of Shares to WANG & LEE HOLDINGS, Inc.***

On May 28, 2025, the Company entered into a stock purchase agreement with WANG & LEE HOLDINGS, Inc., pursuant to which the Company issued and sold to WANG & LEE HOLDINGS, Inc. 14,050,000 ordinary shares of the Company at a purchase price of US$0.90 per share, for an aggregate price of US$12,645,000. On July 22, 2025, the Company entered into a stock repurchase agreement with the WANG & LEE HOLDINGS, Inc., pursuant to which WANG & LEE HOLDINGS, Inc. agreed to sell, and the Company agreed to repurchase 4,400,000 Shares at a purchase price of US$0.90 per share, for a total purchase price of US$3,960,000. The closing of the Stock Repurchase Agreement occurred on July 24, 2025.

On March 27, 2026, the Company and the Shareholder entered into an amendment to the Lock-up, whereby section 2 of the Lock-Up Agreement was amended and restated to: "Prior to the expiration of the Lock-Up Period, should the undersigned receive written consent of the Company to transfer any Lock-Up Securities (the "Transferable Securities") pursuant to section 1 of this Agreement, such Transferable Securities shall no longer be subject to any Lock-Up restriction or Lock-Up Period, and shall not be subject to any Repurchase Option by the Company.".

***Equity Investment in BLUE POOL VENTURES LIMITED***

On August 15, 2025, Giant Connection Limited, a fully owned subsidiary of the Company, entered into a Sale and Purchase with Digital Insura, Inc.

Digital Insura, Inc.had ownership of 3,000 ordinary shares, being 75% of the issued and outstanding shares of of BLUE POOL VENTURES LIMITED, which operates an insurance brokerage business through its subsidiary, Mass Fidelity Asset Management Limited.

Pursuant to the agreement, the Digital Insura, Inc.had agreed to sell and Giant Connection had agreed to purchase 49% of the sale shares for an aggregate consideration of HK$11,833,500 to be satisfied through a bank transfer, with a further put option whereby for a period of 5 years, Giant Connection shall purchase, upon written notice by Digital Insura, Inc., in one or more closings, up to an aggregate of the remaining 51% of the sale shares, at a per share purchase price of HK$8,050, to be satisfied through bank transfer or procurement of the Company to issue its ordinary shares. Completion of the Agreement occurred on September 30, 2025.

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

On December 24, 2025, in order to expedite regulatory review in relation to the operations of the insurance brokerage business of a subsidiary of Blue Pool, Giant Connection agreed to sell and Digital Insura agreed to purchase back the Blue Pool Shares for a consideration of HK$11,833,500, to be settled by a promissory note. Prior to the 3 year anniversary of completion of the Agreement, if upon a successful appeal by the Company of the judgement of High Court of Hong Kong Special Administrative Region Court of First Instance action no. HCA938/2022, provided that the Note has not been exercised, Digital Insura undertakes that the Blue Pool Shares shall be transferred back to Giant Connection at the cost of Giant Connection. Upon receipt of the Blue Pool Shares, the Note will be cancelled. Completion of this agreement occurred on December 31, 2025.

***Equity Investment in HK Golden, Inc.***

On October 6, 2025, Giant Connection, a fully owned subsidiary of the Company entered into a Sale and Purchase Agreement with CORE EXPERT INVESTMENT LIMITED. CORE EXPERT INVESTMENT LIMITED had ownership of 2,835,750 ordinary shares, being 19.9% of the issued and outstanding shares of HK Golden, Inc., a company incorporated in the British Virgin Islands. HK Golden, Inc. and its subsidiaries primarily provide digital marketing services to clients and operate HKGolden.com, an online social forum and networking platform in Hong Kong. Pursuant to the Agreement, the Vendor has agreed to sell and Giant Connection has agreed to purchase the Sale Shares for an aggregate consideration of HK$70 millon ($8.97 million) to be satisfied through several bank transfers, to the bank account as stipulated by the Vendor, with the last subsequent payment to be made on or before the Target Completion Date. Completion of the Agreement occurred on October 31, 2025.

#### TROOPS, Inc.'s Offices
**Our principal executive office is located in Unit A, 18/F, 8 Fui Yiu Kok Street, Tsuen Wan, New Territories, Hong Kong. Under our Amended and Restated Memorandum and Articles of Association, our Registered Office is at the offices of Conyers Trust Company (Cayman) Limited (formerly known as Codan Trust Company (Cayman) Limited), Cricket Square, Hutchins Drive, PO Box 2681, Grand Cayman, KY1-1111, Cayman Islands, telephone: (345) 949 1040, or at such other place as the directors may from time-to-time decide. Our agent for service of process in the U.S. is COGENCY GLOBAL INC., 122 East 42nd Street, 18th Floor New York, NY 10168.** 

B. Business overview.

#### Our Business
TROOPS, Inc. is a conglomerate group of various businesses with its headquarters based in Hong Kong. The group is principally engaged in (a) money lending business in Hong Kong providing mortgage loans to high quality target borrowers, (b) property investment to generate rental income, (c) the development, operation and management of an online financial marketplace that provides one-stop financial technology solutions including API services by leveraging artificial intelligence, big data and blockchain, and cloud computing (SaaS), (d) consultancy services primarily in relation to insurance referral to insurance brokers and (e) advisory and referral services in relation to the application of migration, education and visa renewal to its customers. The group's vision is to operate as a conglomerate to build synergy within its own sustainable ecosystem thereby creating value to its shareholders.

*Money lending*

Giant Credit Limited is a Hong Kong incorporated company which has the money lenders license for carrying on money lending business in Hong Kong. Giant Credit Limited has been providing personal loans and corporate loans to its customers since 2016. Since the commencement of business, Giant Credit Limited has continued to record growth in its personal loans and corporate loans receivables along with satisfactory interest income.

First Asia Finance Limited which is a Hong Kong incorporated company and a licensed money lender in Hong Kong. The principal business of FAF is money lending which is similar to Giant Credit Limited but with a larger customer base. Management believes that the recent downturn in the economy creates demand for cashflow which provides money lending companies with a great opportunity to expand its personal loans and corporate loans business and portfolio. In addition, The Hong Kong Monetary Authority continues to impose stringent policies and prudential measures on property personal loans and corporate loans provided by authorized financial institutions in Hong Kong, which creates additional hurdles for the public who are looking for mortgages to satisfy their financial needs. This further enhances the competitive edge of money lenders in Hong Kong.

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

*Property lease and management*

We have investments in four real properties in Hong Kong (held under Giant Credit, 11 Hau Fook Street Limited and Vision Lane Limited) and 19 storey building in Hong Kong (held under Suns Tower, a wholly owned subsidiary of Paris Sky Limited). These investments generate additional rental income to enhance our cashflow. The properties are managed by our team with experience in property management and rental management which operates in a cost-effective manner.

*Applications, technology & services* 

Giant Financial Services Limited is a private company incorporated in Samoa and provides an online financial marketplace connecting financial institutions and users worldwide via its unique mobile application which features state-of-the-art functions to boost financial accessibility to financial and insurance products and services. At the heart of its digital platform is the Company's dedication to drive innovation, create value to businesses and individual users alike by (i) minimizing transaction risks, (ii) lowering transaction costs, (iii) reducing and detecting fraud, (iv) saving time, (v) increasing access and equality. We intend to integrate GFS into our existing platform to support its current business lines.

By leveraging technologies including artificial intelligence, big data and blockchain technology, machine learning, fingerprint ID, facial recognition, and cloud computing (SaaS), GFS strives to create recurring and growing revenue streams and larger market share for businesses on one hand, and instilling trust and confidence in investors and consumers on the other hand.

The mobile application is fully integrated with financial institutions including licensed money lenders, asset management companies, securities firms, and banks, under strategic partnerships to facilitate seamless and low-cost payments and transfers in a secure and privacy protected digital environment. GFS also seeks to provide businesses with the peace of mind via the integration of cyber security and where necessary, the adoption of KYC and AML processes. It also offers an AI-powered innovative reward program that helps businesses to acquire and retain customers, and to expand into previously uncharted markets thereby increasing sales revenue and market share.

Since July 2019, GFS had established contractual relationship with third-party business partners which have agreed to render their financial products and services to the registered users via the GFS's mobile application.

Apiguru Pty Ltd. is a technology consulting company specialising in Application Programming Interface (API) strategy and implementation enabling state-of-the-art market fit hypothesis that drives businesses forward. Through providing API consulting services, Apiguru helps businesses increasing effectivity, optimizing productivity, and developing integration channels that leverage opportunities for generating new revenue sources. GFS aims to serve clients from different sectors with distinctive needs. Along together with API specialization, Apiguru helps GFS to integrate with various global platforms to expand customer base.

Riches Elites is a professional financial technology service company that provides the industry with more efficient and in-depth empowerment via the use of its Application (FinNet). It currently has more than 200,000 registered users and acts as a pioneer of the paid membership model in the industry. Such model has substantially increases the depth of empowerment and greatly enhances user stickiness, hence a win-win relationship.

*Consultancy services for insurance products*

Riches Finance Group Limited is a professional market service organization that supports the insurance and financial management industry of the Greater China with top marketing training, product analysis and various industry exhibition support services. The company empowers over 3,000 outstanding industry consultants and more than 100 insurance and financial institutions.

*Advisory and referral services*

Riches Advisory Limited is a professional comprehensive consulting and service intermediary that provide professional services to the Chinese Mainland and Hong Kong markets involve four major areas 1)Education Consultation and Planning, 2) Study Abroad Application Services, 3) Immigration Services and 4) Referral of Business Services to customers and business partners.

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

#### TROOPS Products
Our current product lines on sale include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Money lending

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Property lease and management

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Applications, technology & services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Consultancy services for insurance products

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Advisory and referral services

#### Marketing and Branding
● Money lending: We enhance our brand reputation by providing contactless and online service platform to make business safer and more convenient. We also promote our image as an innovative market leader through our user-friendly app for seamless loan applications. Our market position and reputation are also secured by extensive word-of-mouth and referrals through our participation in various business and professional associations.

● Property lease and management: We further enhance our group's reputation as a socially responsible and caring enterprise by setting up sanitation stations, performing regular disinfection and providing 24/7 concierge service. Leaflets and promotional materials are also placed in office premises and on our website to raise hygiene awareness. In addition, we continue to offer attractive and competitive rates for our tenants during the pandemic, keeping the occupancy rate in our investment properties above 90%. We also provide residents and new immigrants in Hong Kong with comprehensive and professional services in sales and purchases of property, as well as leasing.

● Applications, technology & services : We build our brand image by assisting our clients by rendering their financial products and services to the registered users via our mobile application. We also provide API consulting services which help our clients to increase efficiency, optimize productivity, and develop integration channels that leverage opportunities for generating new revenue sources. Moreover, we provide the industry with more efficient and in-depth empowerment via the use of its application (FinNet). It currently has more than 200,000 registered users and acts as a pioneer of the paid membership model in the industry. Such model has substantially increased the depth of empowerment and greatly enhanced user stickiness, hence a win-win relationship.

● Consultancy services for insurance products: We support the insurance and financial management industry of the Greater China with top marketing training, product analysis and various industry exhibition support services.

● Advisory and referral services: We act as a professional comprehensive consulting and service intermediary by providing professional services to the PRC and Hong Kong markets involve four major areas, i) education consultation and planning, ii) study abroad application services, iii) immigration services, iv) business services.

#### Intellectual Property
Trademarks

The Trademark are the intangible assets of a recognizable sign, symbol and design under the name "GFS" which is established by use of representing the products and services of the Business Enterprise for the provision of the fintech service and IT support service. The trademark was registered in Hong Kong on June 6, 2019, with the trademark number of 304951224.

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

![Graphic](troo-20251231x20f001.jpg)

C. Regulations.

#### Environmental

#### Since the sale of Honesty Group, TROOPS has not been subject to environmental impact evaluations by the local Environmental Protection Department.
***HK Money Lenders Ordinance (Chapter 163 of the Laws of Hong Kong)***

To provide for the control and regulation of money lenders and money-lending transactions, the appointment of a Registrar of Money Lenders and the licensing of persons carrying on business as money lenders; to provide protection and relief against excessive interest rates and extortionate stipulations in respect of loans; to provide for offences and for matters connected with or incidental to the foregoing.

D. Organizational structure.

The following diagram sets forth our corporate structure as of the date of this annual report:

![Graphic](troo-20251231x20f002.jpg)

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

E. Property, plant and equipment.

TROOPS' property, plant and equipment are mainly held by the following subsidiaries:

Giant Credit holds property, plant and equipment in Hong Kong with a carrying value of $0.51 million as of December 31, 2025.

11 Hau Fook Street holds property, plant and equipment in Hong Kong with a carrying value of $1.50 million as of December 31, 2025.

Suns Tower holds property, plant and equipment in Hong Kong with a carrying value of $26.59 million as of December 31, 2025.

Vision Lane holds property, plant and equipment in Hong Kong with a carrying value of $0.80 million as of December 31, 2025.

#### ITEM 4A. UNRESOLVED STAFF COMMENTS
None.

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

#### ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

#### (In thousands of U.S. dollars except share and per share data)
A. Operating results.

*The following discussion should be read in conjunction with the audited consolidated financial statements and related notes which appear elsewhere in this annual report. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those discussed elsewhere in this annual report, including those set forth under "Item 3. Key Information — D. Risk Factors."*

Our financial statements are prepared in U.S. $ and according to accounting principles generally accepted in the U.S. See "Foreign Exchange Risk" below for information concerning the exchange rates at which HKD were translated into U.S. Dollars at various pertinent dates and for pertinent periods.

#### Overview
TROOPS, Inc. is a conglomerate group of various businesses with its headquarters based in Hong Kong. The group is principally engaged in (a) money lending business in Hong Kong providing mortgage loans to high quality target borrowers, (b) property investment to generate rental income, (c) the development, operation and management of an online financial marketplace that provides one-stop financial technology solutions including API services by leveraging artificial intelligence, big data and blockchain, and cloud computing (SaaS), (d) consultancy services primarily in relation to insurance referral to insurance brokers and (e) advisory and referral services in relation to the application of migration, education and visa renewal to its customers. The group's vision is to operate as a conglomerate to build synergy within its own sustainable ecosystem thereby creating value to its shareholders.

***TROOPS Products***

**Our current product lines on sale include:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Money lending

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Property investment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Applications, technology & services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Consultancy services for insurance products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Advisory and referral services

#### Use of estimates
Preparing consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management's estimates and assumptions include, but are not limited to, revenue recognition, the collectability of its receivables, the fair value and accounting treatment of certain financial instruments, fair value of assets and liabilities acquired in business combination, useful life of intangible assets, assessment of impairment of long-lived assets, intangible assets and goodwill, provisions for litigation and other contingencies, deferred tax liability and deferred tax valuation allowance. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates.

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

#### Business combinations
The Company accounts for its business combinations using the acquisition method of accounting in accordance with Accounting Standards Codification ("ASC") 805 "Business Combinations." The cost of an acquisition is measured as the aggregate of the acquisition date fair values of the assets transferred and liabilities incurred by the Company to the sellers and equity instruments issued. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total costs of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive income. During the measurement period, which can be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of comprehensive income.

In a business combination achieved in stages, the Company re-measures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the re-measurement gain or loss, if any, is recognized in the consolidated statements of comprehensive income.

When there is a change in ownership interests that result in a loss of control of a subsidiary, the Company deconsolidates the subsidiary from the date control is lost. Any retained non-controlling investment in the former subsidiary is measured at fair value and is included in the calculation of the gain or loss upon deconsolidation of the subsidiary.

For the Company's majority-owned subsidiaries, a non-controlling interest is recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Group. "Net income (loss)" on the consolidated income statements includes the "net loss attributable to non-controlling interests". The cumulative results of operations attributable to non-controlling interests are also recorded as non-controlling interests in the Company's consolidated balance sheets.

**Property, plant and equipment, net**

Property, plant and equipment, net are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Expenditures for maintenance and repairs are charged to earnings as incurred. Major additions are capitalized. When assets are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property, plant and equipment is provided using the straight-line method for substantially all assets with estimated lives as follows:

---

| | |
|:---|:---|
| Leasehold land and buildings | Leasehold land and buildings are depreciated over the shorter of the unexpired term of lease and their estimated useful lives, being no more than 50 years |
| Machinery and equipment | 4-10 years |
| Leasehold improvements | 5 years |
| Vehicles and office equipment | 4-5 years |

---

Construction in progress represents capital expenditures for direct costs of construction or acquisition and the interest expenses directly related to the construction. Capitalization of these costs ceases and the construction in progress is transferred to the appropriate category of property, plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. Construction in progress is not depreciated.

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

#### Intangible assets
Intangible assets acquired through business acquisitions are recognized as assets separate from goodwill if they satisfy either the "contractual-legal" or "separability" criterion. Purchased intangible assets and intangible assets arising from the acquisitions of subsidiaries are recognized and measured at fair value upon acquisition. Separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method as follows:

---

| | |
|:---|:---|
| Trademarks of GFS | 10 years |
| Service Contracts of GFS | 1 year |
| Non-competition agreements of Apiguru | 3 years |
| Customer relationship of Riches Holdings | 10 years |

---

Separately identifiable intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of any impairment loss for identifiable intangible assets is based on the amount by which the carrying amount of the assets exceeds the fair value of the assets.

The Company also holds intangible assets in the form of Hong Kong private vehicle license plates. These plates were acquired through the Transport Department's auction process and are recognized at cost. They are classified as indefinite-lived intangible assets as they can be transferred to another vehicle owned by the Company indefinitely, subject to annual registration fees. As of December 31, 2025, the carrying amount of these license plates was US$0.04 million. The Company performs annual impairment tests by comparing the carrying amount of these assets to their estimated fair value based on recent auction prices for similar vanity plates in Hong Kong.

#### Goodwill
Goodwill represents the excess of the purchase consideration over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed of the acquired entity as a result of the Company's acquisitions of interests in its subsidiaries. Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. Based on the qualitative assessment, if it is more likely than not that the fair value of each reporting unit is less than the carrying amount, the quantitative impairment test is performed.

The Company annually, or more frequently if the Company believes indicators of impairment exist, reviews the carrying value of goodwill to determine whether impairment may exist.

In performing the two-step quantitative impairment test, the first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit's goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for the purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets, liabilities and goodwill to reporting units, and determining the fair value of each reporting unit.

Goodwill arises from the following reporting units: the financial technology solutions, services and the money lending services, applications, technology & services, consultancy services for insurance products and advisory and referral services. The Company performs its annual impairment tests on December 31 of each year.

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

#### Impairment of long-lived assets other than goodwill
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

#### Restricted cash
The Company adopted Accounting Standards Update ("ASU") No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, ("ASU 2016-18"), effective January 1, 2018 using the retrospective transition method and included all restricted cash with cash and cash equivalent when reconciling beginning-of-period and end-of-period total amounts presented in the consolidated statements of cash flows. The Company has none of restricted cash as of December 31, 2025 and 2024.

#### Trade receivables
**The trade receivables are without customer collateral and interest is not accrued on past due accounts. The Company estimates the allowance for doubtful trade receivables based on historical collection activity, current business environment and forecasts of future macroeconomic conditions that may affect the customers' ability of payment according to ASC 326. The trade receivables was segmented into groups based on certain credit risk characteristics, and the Company determined expected loss rates for each group based on historical loss experience adjusted for judgments about the effects of relevant observable data including default rates, lifetime for debt recovery, current and future economic conditions. Net allowance of $3 and $243 was required as of December 31, 2025 and 2024. The trade receivables is required to be written off when a determination is made that it is uncollectible.** 

#### Other receivables, prepayments and deposits
**Other receivables and prepayments primarily include rental deposit, utilities deposit, prepaid employees' compensation. Management reviews the composition of other receivables and prepayment and determines if an allowance for doubtful accounts is needed. A provision for doubtful accounts is made when collection of the full amount is no longer probable. As of December 31, 2025 and 2024 there was $109 and $10 allowance for uncollectible other receivables, prepayments and deposits, respectively. Management believes that the remaining other receivables and prepayments are collectible.** 

#### Loan receivables, net
**Loan receivables primarily represents loan amounts due from customers. Loan receivables are recorded at unpaid principal balances net of provision that reflects the Company's best estimate of the amounts that will not be collected. Management anticipates no significant early settlement of loan receivables as of reporting date. As of December 31, 2025 and 2024, there was $5,038 and $5,491 allowance for uncollectible loan receivables, respectively. Management believes that the remaining loan receivables are collectible.** 

#### Provision for loan losses
The provision for loan losses is increased by charges to income and decreased by charge offs (net of recoveries). Recoveries represent subsequent collection of amounts previously charged-off. The increase in provision for loan losses is the netting effect of "reversal" and "provision" for both business and personal loans. If the ending balance of the provision for loan losses after any charge offs (net of recoveries) is less than the beginning balance, it will be recorded as a "reversal"; if it is larger, it will be recorded as a "provision" in the provision for loan loss. The netting amount of the "reversal" and the "provision" is presented in the statements of comprehensive loss.

The provision consists of specific and general components. The specific component consists of the amount of impairment related to loans that have been evaluated on an individual basis, and the general component consists of the amount of impairment related to loans that have been evaluated on a collective basis. Loans are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts when due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings ("TDRs").

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

The Company recognizes a charge-off when management determines that full repayment of a loan is not probable. The primary factor in making that determination is the potential outcome of a lawsuit against the delinquent debtor. The Company will recognize a charge-off when the Company loses contact with the delinquent borrower for more than one year or when the court rules against the Company to seize the collateral asset of the delinquent debt from either the guarantor or borrower. In addition, when the recoverability of the delinquent debt is highly unlikely, the senior management team will go through a stringent procedure to approve a charge-off. Management estimates the provision balance required using past loan loss experience, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the provision may be made for specific loans, but the entire provision is available for any loan that, in management's judgment, should be charged-off.

The provision for loan losses is maintained at a level believed to be reasonable by management to absorb probable losses as of each balance sheet date. The provision is based on factors such as an assessment of individual loans and actual loss. The Company evaluates its provision for loan losses on a quarterly basis or more often as necessary.

#### Interest receivables
Interest receivables are accrued and credited to income as earned but not received. The Company determines a loan past due status by the number of days that have elapsed since a borrower has failed to make a contractual interest or principal payment. Accrual of interest is generally discontinued when reasonable doubt exists as to the full, timely collection of interest or principal. Additionally, any previously accrued but uncollected interest is reversed. Subsequent recognition of income occurs only to the extent payment is received, subject to management's assessment of the collectability of the remaining interest and principal. Loans are generally restored to an accrual status when it is no longer delinquent and collectability of interest and principal is no longer in doubt and past due interest is recognized at that time.

#### Comprehensive income
U.S. GAAP generally requires that recognized revenue, expenses, gains and losses be included in net income or loss. Although certain changes in assets and liabilities are reported as separate components of the equity section of the consolidated balance sheet, such items, along with net income, are components of comprehensive income or loss. The components of other comprehensive income or loss consist of foreign currency translation adjustments net of realization of foreign currency translation gain relating to disposal of subsidiaries.

#### Related parties
We follow ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions. The details of related party transactions during the years ended December 31, 2025 and 2024 and balances as of December 31, 2025 and 2024 are set out in Note 15.

#### Revenue recognition
The Company adopted Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASC 606") from January 1, 2018, using the modified retrospective method. Revenues for the years ended December 31, 2025, and 2024 and 2023 were presented under ASC 606, and revenues for the year ended December 31, 2017 was not adjusted and continue to be presented under ASC Topic 605, Revenue Recognition. There was no impact on the Company's opening balance of retained earnings as of January 1, 2018. Pursuant to ASC606-10-15-2, the interest income generated by the Company is scoped out of ASC606.

In accordance with ASC 606, revenues are recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. In determining when and how much revenue is recognized from contracts with customers, the Company performs the following five-step analysis: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; (5) recognize revenue when (or as) the entity satisfies a performance obligation.

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

Revenues are recognized when control of the promised goods or services is transferred to the customers, which may occur at a point in time or over time depending on the terms and conditions of the agreement, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

***Applications, technology & services***

The Company provides SaaS and app development service to its customers to deploy the Company's online platform, which may occur over time depending on the terms and conditions of the agreement, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Service income from project-based consulting services is recognized based on the output methods, including surveys of performance completed to date or milestones reached of each phase only when the Company has an enforceable right to payment for performance completed to date. Maintenance and support type service income is recognized separately from the main contract since such service was not treated as performance obligation of the contract. Revenue on application membership services is recognized over time by reference to the whole contracted membership period.

***Interest on loan receivables***

Interest on loan receivables is accrued monthly in accordance with their contractual terms and recorded in accrued interest receivables. The Company does not charge prepayment penalties. Additionally, any previously accrued but uncollected interest is reversed and accrual is discontinued, when reasonable doubt exists as to the full, timely collection of interest or principal. Interest income on impaired loan receivables is recorded when cash payment for interest is received by the Company.

***Property lease and management***

Minimum contractual rental income related to property leases are recognized on a straight-line basis over the terms of the respective leases. Straight-line rental revenue commences when the tenant assumes control of the leased premises. In accordance with the Company's standard lease terms, rental payments are generally due on a monthly basis. Tenant recovery revenue includes payments from tenants as reimbursements for management fees and utilities, etc., which are recognized when the related expenses are incurred. Rental from office lease and tenant recovery revenue together is recorded as "Property lease and management."

***Consultancy services for insurance products***

The Group provides consultancy services primarily in relation to insurance referral to insurance brokers. Revenue is recognized at a point in time when the cool-off period ends, and the consultancy and referral services are considered complete.

***Advisory and referral services***

The Group provides services in relation to the application of migration, education and visa renewal to its customers. Revenue is recognized at a point in time when relevant applications are approved.

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

Below is the summary presenting the Company's revenues disaggregated by products and services and timing of revenue recognition:

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| <br>**Revenue by recognition** | **2025** | **2024** | **2023** |
| Revenue by recognition over time | $3314 | $4431 | $3569 |
| Revenue by recognition at a point in time | 13782 | 5642 |  |
|  | $17096 | 10073 | 3569 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| <br>**Revenue by major product line** | **2025** | **2024** | **2023** |
| Interest on loans | $2167 | $3308 | $2313 |
| Property lease and management | 1384 | 1780 | 1069 |
| Applications, technology & services | 549 | 151 | 187 |
| Consultancy services for insurance products | 12859 | 4478 |  |
| Advisory and referral services | 137 | 356 |  |
|  | $17096 | 10073 | 3569 |

---

#### Contract Balances
Timing of revenue recognition may differ from the timing of invoicing to customers. Trade receivables represents amounts invoiced, and revenue recognized prior to invoicing when the Group has satisfied its performance obligations and has the unconditional right to consideration.

Deferred revenue relates to unsatisfied performance obligations at the end of each reporting period and consists of cash payment received in advance from customer. The amount recognized that was included in the balance at the beginning of the year was nil and $87 for the years ended December 31, 2025 and 2024.

Advances received from customers related to unsatisfied performance obligations are recorded as contract liabilities (advance from customers), which will be recognized as revenues upon the satisfaction of performance obligations through the transfer of related promised goods and services to customers.

The Company's contract liabilities consist of rental receipt in advance related to rent paid in advance for leasing office, receipt in advance related to advisory and referral services, and application membership fee. Below is the summary presenting the movement of the Company's contract liabilities for the years ended December 31, 2025, 2024 and 2023:

---

| | |
|:---|:---|
|  | **Contract**<br>**liabilities** |
| Balance as of January 1, 2023 | $10 |
| Revenue recognized from beginning contract liability balance | (10) |
| Advances received from customers related to unsatisfied performance obligations | 13 |
| Balance as of December 31, 2023 | $13 |
| Revenue recognized from beginning contract liability balance | (13) |
| Advances received from customers related to unsatisfied performance obligations | 148 |
| Balance as of December 31, 2024 | $148 |
| Revenue recognized from beginning contract liability balance | (148) |
| Advances received from customers related to unsatisfied performance obligations | 522 |
| Balance as of December 31, 2025 | $522 |

---

The contract liabilities were grouped into other payables and accrued liabilities (note 12).

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

#### Allocation to Remaining Performance Obligations
The Company has elected to apply the practical expedient in paragraph ASC Topic 606-10-50-14 and did not disclose the information related to transaction price allocated to the performance obligations that are unsatisfied or partially unsatisfied as of December 31, 2025, because either the performance obligation of the Company's contracts with customers has an original expected duration of one year or less or the Company has a right to consideration from a borrower or a customer in an amount that corresponds directly with the value to the borrower or the customer of the Company's performance completed to date, therefore the Company may recognize revenue in the amount to which the Company has a right to invoice or collect.

#### Income taxes
The Company accounts for income taxes in accordance FASB ASC Section 740. The Company is subject to the tax laws of the PRC, Hong Kong (a special administrative region of PRC) and Australia. The charge for taxation is based on actual results for the year as adjusted for items that are non-assessable or disallowed; and it is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. The Company is not currently subject to tax in the Cayman Islands or the British Virgin Islands.

Deferred taxes are accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the Company's unaudited condensed consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit of loss. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that future taxable income can be utilized with prior net operating loss carry forwards. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized, or the liability is settled. Deferred tax is charged or credited in the statement of operations, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.

An uncertain tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has a greater than 50% likelihood of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. Penalties and interest incurred related to uncertain tax positions are classified in income tax expense in the period incurred. During the years ended December 31, 2025, 2024 and 2023, the Company has not incurred any interest related to income taxes. Our Australia entities did not have tax liability as of December 31, 2025. U.S. GAAP also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition.

**Tax returns filed for the years ended December 31, 2020 to 2025 and December 31, 2023 to 2025 in Hong Kong and PRC are subject to examination by the applicable tax authorities.** 

#### Financial guarantee
A provision for possible losses to be absorbed by the Company for financial guarantees it provides is recorded as an accrued liability when the guarantees are made and recorded as "Allowance on guarantee" in the consolidated balance sheets. This accrued liability represents probable losses and is increased or decreased by accruing a "Allowance (reversal of allowance) on financial guarantee" throughout the terms of the guarantees as necessary when additional relevant information becomes available.

The methodology used to estimate the liability for possible guarantee losses considers the guarantee contract amounts and a variety of factors, which include, depending on the counterparty, the latest financial position and performance of the borrowers, actual defaults, estimated future defaults, historical loss experience, estimated value of collateral or guarantees the customers or third parties offered, and other economic conditions, such as economic trends in the area and the country. The estimates are based upon information available at the time the estimates are made. It is possible that prior experience and default history of the borrowers are not indicative of future losses on guarantees made. Any increase or decrease in the provision would affect the Company's consolidated income statements in future years.

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

#### Foreign currency translation
The reporting and functional currency of the Company is the U.S. Dollar. The functional currencies of its Hong Kong subsidiaries are the Hong Kong Dollar. The functional currency of its PRC subsidiaries is the RMB. The functional currencies of its Australia subsidiaries are the Australian Dollar ("AUD"). Results of operations and cash flow are translated at average exchange rates during the period, and assets and liabilities are translated at the exchange rate at the end of the period. Capital accounts are translated at their historical exchange rates when the capital transaction occurred. Translation adjustments resulting from this process are included in accumulated other comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred.

***The balance sheet amounts with the exception of equity were translated using RMB7.03 and RMB7.19 to $1.00 at December 31, 2025 and 2024, respectively. The equity accounts were stated at their historical exchange rates. The average translation rates applied to the income and cash flow statement amounts for the years ended December 31, 2025, 2024 and 2023 were RMB7.10, RMB7.12, and RMB6.56 to $1.00, respectively.***

***The balance sheet amounts with the exception of equity were translated using AUD0.67 and AUD0.62 to $1.00 as of December 31, 2025 and 2024, respectively. The equity accounts were stated at their historical exchange rates. The average translation rate applied to the income statement amounts for the years ended December 31, 2025, 2024 and 2023 were AUD0. 65, AUD0.66 and AUD0.66 to $1.00, respectively.***

#### Analysis of Results of Operations
**Comparison of Fiscal Years Ended December 31, 2025 and 2024**

*Revenue*

Our sales were $17.09 million for the year ended December 31, 2025, which increased by $7.02 million, or 69.7% from $10.07 million in the year ended December 31, 2024. During the year ended December 31, 2025, we through 11 Hau Fook Street, Vision Lane and Paris Sky earned property lease and management income of $1.38 million, compared to income of $1.78 million in 2024. We through Giant Credit and First Asia Finance earned interest on loans from money lending services of $2.17 million in 2025, compared to $3.31 million in 2024. We through GFS and Apiguru earned financial technology solutions and services income of $0.14 million in 2025, compared to income of $0.15 million in 2024. We through Riches Finance Group Limited earned consultancy services income for insurance products of $12.86 million in 2025, compared to income of $4.48 million in 2024. We through Riches Advisory and Riches Property earned advisory and referral service income of $0.55 million in 2025, compared to income of $0.36 million in 2024.

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

Below is the summary presenting the Company's revenues disaggregated by products and services and timing of revenue recognition:

(In thousands of U.S. dollars)

---

| | | |
|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** |
| <br>**Revenue by recognition** | **2025** | **2024** |
| Revenue by recognition over time | $3314 | $4431 |
| Revenue by recognition at a point in time | 13782 | 5642 |
|  | $17096 | 10073 |

---

---

| | | |
|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** |
| <br>**Revenue by major product line** | **2025** | **2024** |
| Interest on loans | $2167 | $3308 |
| Property lease and management | 1384 | 1780 |
| Applications, technology & services | 137 | 151 |
| Consultancy services for insurance products | 12859 | 4478 |
| Advisory and referral services | 549 | 356 |
|  | $17096 | 10073 |

---

*Cost of revenues*

For the year ended December 31, 2025, cost of revenues increased by $7.40 million, or 91.0%, to $15.53 million from $8.13 million for the year ended December 31, 2024. Our cost of revenues mainly includes commission paid from money lending service, consultancy services for insurance products, advisory and referral services which were $7.56 million and $5.42 million for the year ended December 31, 2025 and 2024, respectively.

*Gross profit* 

Our gross profit were $1.56 and $1.94 million in 2025 and 2024.

*Selling expenses*

Selling expenses amounted to approximately $0.32 million and nil for the year ended December 31, 2025 and 2024.

*General and administrative expenses*

General and administrative expenses amounted to approximately $17.93 million for the year ended December 31, 2025, $13.97 million or 352.8% more than $3.96 million for the previous fiscal year. This increase was mainly because staff salary and benefit, legal and professional fees incurred $1.85 million and $14.06 million in 2025, compared to $1.49 million and $0.98 million in 2024.

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

General and administrative expenses include staff salary and benefits, legal and professional fees, office expenses, travel expenses, entertainment, IT consultancy and support services expenses, depreciation, amortization of intangible assets, provision for legal expenses and bad debt written-off.

*Reversal of impairment loss (impairment loss) of trade receivables*

Impairment loss of trade receivables based on historical experience and an estimate of collectability of trade receivables. Our reversal of impairment losses for trade receivables were $0.24 million, compare to impairment losses of $0.24 million in 2024.

*Reversal of impairment loss (impairment loss) of loan and interest receivables*

Impairment loss (reversal of impairment loss) of loan and interest receivables based on historical experience and an estimate of collectability of the loan receivables and interest receivables. Our reversal of impairment losses for loan losses and interest receivables were $0.45 million in 2025, compared to impairment loss of $3.47 million in 2024.

*Impairment loss (reversal of impairment loss) of other receivables, prepayments and deposits*

Our impairment loss of other receivables, prepayments and deposits of $0.10 million and $0.01 in 2025 and 2024.

*Impairment loss of property, plant and equipment*

Our impairment loss of property, plant and equipment was $13.44 million in 2025 compared to nil in 2024, primarily attributable to the impairment related to certain real estate properties in Hong Kong.

*Income tax benefit (expense)*

Income tax benefit was $1.50 million in the fiscal year of 2025, compared to tax expense of $0.03 million in the fiscal year of 2024. Income tax benefit in 2025 was related to the deferred tax impact on property and plant and intangible assets.

Our PRC entities in 2025 and 2024 were subject to the statutory PRC enterprise income tax rate of 25.0%. According to the provisions of Ministry of Finance and State Taxation Administration Announcement [2022] No. 13, one of the PRC subsidiaries enjoy referential income tax policies for the small and low profit enterprises in 2025 and 2024. The net tax loss attributable to those PRC entities, if any, can only be carried forward for a maximum period of five years, through 2028. Our subsidiaries in Hong Kong are subject to Hong Kong taxation on income derived from their activities conducted in Hong Kong at a rate of 16.5%. Our subsidiary in Australia is subject to the Australian lower company tax rate of 25.0%.

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

*Net loss*

As a result of the various factors described above, net loss for the year ended December 31, 2025 was $27.91 million, as compared to $13.41 million for 2024.

**Comparison of Fiscal Years Ended December 31, 2024 and 2023**

*Revenue*

Our sales were $10.07 million for the year ended December 31, 2024, which increased by $6.50 million, or 182.2% from $3.57 million in the year ended December 31, 2023. During the year ended December 31, 2024, we through 11 Hau Fook Street, Vision Lane and Paris Sky earned property lease and management income of $1.78 million, compared to income of $1.07 million in 2023. We through Giant Credit and First Asia Finance earned interest on loans from money lending services of $3.31 million in 2024, compared to $2.31 million in 2023. We through GFS and Apiguru earned financial technology solutions and services income of $0.15 million in 2024, compared to income of $0.19 million in 2023. We through Riches Finance Group Limited earned consultancy services income for insurance products of $4.48 million in 2024. We through Riches Advisory and Riches Property earned advisory and referral service income of $0.36 million in 2024.

Below is the summary presenting the Company's revenues disaggregated by products and services and timing of revenue recognition:

(In thousands of U.S. dollars)

---

| | | |
|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** |
| <br>**Revenue by recognition** | **2024** | **2023** |
| Revenue by recognition over time | $4431 | $3569 |
| Revenue by recognition at a point in time | 5642 |  |
|  | $10073 | 3569 |

---

---

| | | |
|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** |
| <br>**Revenue by major product line** | **2024** | **2023** |
| Interest on loans | $3308 | $2313 |
| Property lease and management | 1780 | 1069 |
| Applications, technology & services | 151 | 187 |
| Consultancy services for insurance products | 4478 |  |
| Advisory and referral services | 356 |  |
|  | $10073 | 3569 |

---

*Cost of revenues*

For the year ended December 31, 2024, cost of revenues increased by $5.34 million, or 191.2%, to $8.13 million from $2.79 million for the year ended December 31, 2023. Our cost of revenues mainly includes commission paid from money lending service, consultancy services for insurance products, advisory and referral services which were $5.42 million and $0.45 million for the year ended December 31, 2024 and 2023, respectively.

*Gross profit*

Our gross profit were $1.94 and $0.78 million in 2024 and 2023.

*General and administrative expenses*

General and administrative expenses amounted to approximately $3.96 million for the year ended December 31, 2024, $1.20 million or 43.6% more than $2.75 million for the previous fiscal year. This increase was mainly because staff salary and benefit, legal and professional fees incurred $1.49 million and $0.98 million in 2024, compared to $1.02 million and $0.64 million in 2023.

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

General and administrative expenses include staff salary and benefits, legal and professional fees, office expenses, travel expenses, entertainment, IT consultancy and support services expenses, depreciation, amortization of intangible assets.

*Impairment loss of trade receivables*

Impairment loss of trade receivables based on historical experience and an estimate of collectability of trade receivables. Our impairment losses for trade receivables were $0.24 million in 2024, compared to nil in 2023.

*Impairment loss (reversal of impairment loss) of loan and interest receivables*

Impairment loss (reversal of impairment loss) of loan and interest receivables based on historical experience and an estimate of collectability of the loan receivables and interest receivables. Our impairment losses for loan losses and interest receivables were $3.47 million in 2024, compared to reversal of impairment loss of $0.05 million in 2023.

*Impairment loss (reversal of impairment loss) of other receivables, prepayments and deposits*

Our impairment loss of other receivables, prepayments and deposits of $0.01 million in 2024, compared to reversal of impairment loss of $0.13 million in 2023.

*Loss on change in fair value of convertible notes* 

The loss on change in fair value of convertible notes was $7.69 million and nil in 2024 and 2023, respectively. The loss on change in fair value of convertible notes was due to conversion in aggregate of 10,912,168 ordinary shares on December 12, 2024.

*Income tax expense (benefit)*

Income tax expense was $0.03 million in the fiscal year of 2024, compared to income tax benefit of $0.14 million in the fiscal year of 2023. Income tax benefit in 2023 was related to the deferred tax impact on intangible assets and property and plant.

Our PRC entities in 2024 and 2023 were subject to the statutory PRC enterprise income tax rate of 25.0%. According to the provisions of Ministry of Finance and State Taxation Administration Announcement [2022] No. 13, one of the PRC subsidiaries enjoy referential income tax policies for the small and low profit enterprises in 2024 and 2023. The net tax loss attributable to those PRC entities, if any, can only be carried forward for a maximum period of five years, through 2028. Our subsidiaries in Hong Kong are subject to Hong Kong taxation on income derived from their activities conducted in Hong Kong at a rate of 16.5%. Our subsidiary in Australia is subject to the Australian lower company tax rate of 25.0%.

*Net loss*

As a result of the various factors described above, net loss for the year ended December 31, 2024 was $13.41 million, as compared to $1.72 million for 2023.

B. Liquidity and capital resources.

Our principal source of liquidity has been cash generated by proceeds from loans and from issuance of common stock and convertible notes to investors. As of December 31, 2025, we held $4.02 million in cash and cash equivalents and had negative working capital of $1.33 million. Our cash and cash equivalents consist of cash on hand and demand deposits in accounts maintained with financial institutions or state-owned banks within the PRC, including Hong Kong.

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

On May 28, 2025, the Company entered into a stock purchase agreement with WANG & LEE HOLDINGS, Inc., pursuant to which the Company issued and sold to WANG & LEE HOLDINGS, Inc. 14,050,000 ordinary shares of the Company at a purchase price of US$0.90 per share, for an aggregate price of US$12,645,000. On July 22, 2025, the Company entered into a stock repurchase agreement with the WANG & LEE HOLDINGS, Inc., pursuant to which WANG & LEE HOLDINGS, Inc. agreed to sell, and the Company agreed to repurchase 4,400,000 Shares at a purchase price of US$0.90 per share, for a total purchase price of US$3,960,000. The closing of the Stock Repurchase Agreement occurred on July 24, 2025.

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

(In thousands of U.S. dollars)

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Net cash provided by (used in) operating activities | $807 | $1955 | $(6538) |
| Net cash provided by (used in) investing activities | (9107) | 492 | 4779 |
| Net cash provided by (used in) financing activities | 7147 | (384) | 1923 |
| Effect of exchange rate on cash | (1) | (3) | (1) |
| INCREASE (DECREASE) IN CASH | (1154) | 2060 | 163 |

---

#### Operating Activities
Net provided by operating activities was $0.81 million for the year ended December 31, 2025, the increase in cash was primarily as a result of (i) decrease in accounting receivable, trade of $0.74 millon (ii) decrease in loan receivables of $6.35 million, and (iii) change in deferred income taxes of $1.57 million, (iv) non-cash depreciation and amortization, impairment loss of trade receivables, impairment loss of loan and interest receivables, impairment loss of other receivables, bad debt written-off, prepayments and deposits and impairment loss on PPE in total of $15.33 million, and (v) increase in other payables and accrued liabilities of $13.04 million, The increase was partially offset by (i) net loss of $27.91 million, and (ii) increase in other receivables and prepayments of $3.69 millon (iii) increase in loan interest receivables of $0.69 million, (iv) decrease in accounts payables, trade of $0.41 million, (v) increase in tax payable of $0.38 million;

Net provided by operating activities was $1.96 million for the year ended December 31, 2024, the increase in cash was primarily as a result of (i) decrease in loan receivables of $2.62 million, and (ii) non-cash depreciation and amortization, impairment loss of trade receivables, impairment loss of loan and interest receivables, impairment loss of other receivables, prepayments and deposits, and loss on change in fair value of convertible notes in total of $13.61 million, and (iii) increase in deferred revenue of $0.09 million, and (iv) increase in account payables of $0.28 million, (v) increase in taxes payable of $0.27 million, (vi) change in other receivables and prepayments of 0.01 million; The increase was partially offset by (i) net loss of $13.41 million, and (ii) change in deferred income taxes of $0.26 million, and (iii) increase in trade receivables of $0.50 million, (iv) increase in interest receivables of $0.12 million, (v) change in other payables and accrued liabilities of $0.62 million;

Net cash used in operating activities was $6.54 million for the year ended December 31, 2023, the decrease in cash was primarily as a result of (i) net loss of $1.72 million, and (ii) change in loan receivables of $7.08 million, and (iii) change in deferred income taxes of $0.25 million, and (iv) decrease in customer deposit of $0.08 million, (v) increase in others receivables, prepayments and interest receivables of $0.15 million, and (vi) change in tax payable of $0.21 million; The decrease was partially offset by (i) non-cash depreciation and amortization, impairment loss of loan and interest receivables, goodwill and intangible assets totaled $1.94 million, and (ii) increase in other payables and accrued liabilities of $1.02 million.

#### Investing Activities
Net cash used in investing activities was $9.11 million for the year ended December 31, 2025, primarily as a result of Payment on long-term investments of $8.99 million.

Net cash provided by investing activities was $0.49 million for the year ended December 31, 2024, primarily as a result of proceeds from acquisition of subsidiaries, net of cash acquired of 0.74 million, and offset by purchase of property and equipment of $0.25 million.

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

Net cash provided by investing activities was $4.78 million for the year ended December 31, 2023, primarily as a result of proceeds from refund of deposit for acquisition of a subsidiary of $5.00 million.

#### Financing Activities
Net cash provided by financing activities was $7.15 million for the year ended December 31, 2025. The increase in cash was primarily due to proceed from share offering of $12.65 millon, and offset by payment on repurchase of the same shares of $3.96 million and repayment of loan due to a shareholder of $1.54 millon.

Net cash used in financing activities was $0.38 million for the year ended December 31, 2024. The decrease in cash was primarily due to repayment to loan due to a shareholder, net of $0.38 million.

Net cash provided by financing activities was $1.92 for the year ended December 31, 2023. The increase in cash was primarily due to proceeds from loan due to a shareholder of $1.92 million.

As of December 31, 2025, we had cash of $4.02 million. Except as disclosed in this annual report, we have no outstanding bank loans or other loans or financial guarantees or similar commitments to guarantee the payment obligations of third parties. We believe that our current levels of cash, combined with funds available to us through our financing activities, will be sufficient to meet our anticipated cash needs for at least the next 12 months. However, if our cash and borrowing are insufficient to meet our requirements, we may seek to sell equity securities, debt securities or borrow from lending institutions. We can make no assurance that financing will be available in the amounts we need or on terms acceptable to us, if at all.

If we need to raise additional financing, we may sell additional equity or debt securities or borrow from lending institutions. Financing may be unavailable in the amounts we need or on terms acceptable to us. The sale of additional equity securities, including convertible debt securities, would dilute our earnings per share. The incurrence of debt would divert cash from working capital and capital expenditures to service debt obligations and could result in operating and financial covenants that restrict our operations and ability to pay dividends to shareholders, among other restrictions. If we cannot obtain additional equity or debt financing as required, we will, among other things, be required to tighten credit terms, hold less inventory, reduce advances to suppliers and slow down investment in capital expenditures, which would result in slower growth in revenues and profits.

*Debt*

*As of December 31, 2025, we had advances from other party and unrelated parties totaled $0.02 million (Refer to Note 12 to the financial statements).*

*Related Party Balances and Transactions*

The following is a list of related parties which the Company has balances and transactions with:

---

| | |
|:---|:---|
| Riches Credit Insurance Brokerage Limited | Principally owned (67.5%) by the Company's former director, Rui Wu (resigned on December 19, 2025) |
| Oriental Pearl (Shenzhen) Entry-Exit Service Co., Ltd. | Principally owned (75.0%) by the by the Company's former director, Rui Wu (resigned on December 19, 2025) |
| Ms Kwok Kai Kai Clara | The beneficiary owner of Prime Ocean Holdings Limited (owns 25.8% and 9.0% of our ordinary shares as of December 31, 2025 and April 27, 2026).  |

---

&nbsp;&nbsp;&nbsp;&nbsp;a. Trade receivables from related party

As of December 31, 2025 and 2024, the balance of trade receivables from related party was as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Riches Credit Insurance Brokerage Limited | $230946 | $230946 |

---

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

The balances represented the trade receivables from related party for the insurance referral service rendered by the Company. For details, please refer to "f. Related Party Transactions" below.

&nbsp;&nbsp;&nbsp;&nbsp;b. Amount due from the related party

As of December 31, 2025 and 2024, the balance of other receivables from related party was as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Oriental Pearl (Shenzhen) Entry-Exit Service Co., Ltd. | $98743 | $— |

---

&nbsp;&nbsp;&nbsp;&nbsp;c. Accounts payable to related party

As of December 31, 2025 and 2024, no balances of accounts payable to related party.

&nbsp;&nbsp;&nbsp;&nbsp;d. Amount due to a shareholder

On December 8, 2023 and April 9, 2024, Ms Kwok Kai Kai Clara (the beneficiary owner of Prime Ocean Holdings Limited), a shareholder of the Company loaned $1.92 million and $0.38 million to Giant Credit Limited. The loan is unsecured, non-interest bearing and repayable on demand. As of December 31, 2025 and 2024, the outstanding amount due to Ms Kwok Kai Kai Clara was nil and $1.54 million.

&nbsp;&nbsp;&nbsp;&nbsp;e. Amount due from/to the director, the former director and the former shareholder

The balance of amount due from/to the director, the former director and the former shareholder were unsecured, interest-free and repayable on demand.

&nbsp;&nbsp;&nbsp;&nbsp;f. Related party transactions

The following are the related party transactions for the years ended December 31, 2025 and 2024.

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Revenues - related party |  |  |
| Riches Credit Insurance Brokerage Limited (1) | $6883393 | $3053812 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) For the year ended December 31, 2025 and 2024, the Company has provided insurance referral services to Riches Credit Insurance Brokerage Limited, and has charged service fee on the basis of that.

C. Research and development, patents and licenses, etc.

Not applicable.

D. Trend information.

Other than as disclosed elsewhere in this document, we are not aware of any trends, uncertainties, demands, commitments or events since December 31, 2025 that are reasonably likely to have a material adverse effect on our net revenues, income, profitability, liquidity or capital resources, or that caused the disclosed financial information to be not necessarily indicative of future operating results or financial conditions.

E. Off-balance sheet arrangements.

We do not have any outstanding off-balance sheet guarantees, interest rate swap transactions or foreign currency forward contracts. We do not engage in trading activities involving non-exchange traded contracts. In our ongoing business, we do not enter into transactions involving, or otherwise form relationships with, unconsolidated entities or financial partnerships that are established for the purpose of facilitating off-balance sheet arrangements for other contractually narrow or limited purposes.

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

F. Tabular disclosure of contractual obligations.

Our contractual obligations primarily consist of operating lease obligations and capital commitments. The following table sets forth a breakdown of our contractual obligations as of December 31, 2025, and their maturity profile:

(In thousands of U.S. dollars)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** |
|  | <br>**Total** | **Less than 1** <br>**Year** | <br>**1-3 Years** | <br>**3-5 Years** | **More than 5** <br>**Years** |
| Advances from unrelated parties | $18 | 18 |  |  |  |
| Total | $18 | $18 | $— | $— | $— |

---

#### ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
A. Directors and senior management.

Set forth below is information concerning our directors, director nominees, executive officers and other key employees.

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Damian Thurnheer | 48 | Chief Executive Officer and President |
| Tommy Wing Ling Lui | 50 | Chief Technology Officer |
| Chung Hang Lui | 33 | Chief Financial Officer |
| Tony Zhong | 42 | Vice President of Finance |
| Pui Wan Kwan | 36 | Director |
| Jason Che Wai Au<sup>(1)(2)(3)</sup> | 46 | Independent Director |
| Yong Li Huang<sup>(2)(3)</sup> | 40 | Independent Director |
| Wood Shing Kei Sze<sup>(1)(2)</sup> | 46 | Independent Director |
| Wang Tai Dominic Li<sup>(1)(3)</sup> | 42 | Independent Director |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Member of the Audit Committee

&nbsp;&nbsp;&nbsp;&nbsp;(2) Member of the Compensation Committee

&nbsp;&nbsp;&nbsp;&nbsp;(3) Member of the Nominating Committee

***Damian Thurnheer*** has been our Director since December 1, 2021. In May 2019, Mr. Thurnheer founded an API consulting company, Apiguru Pty Ltd., and serves as a director since then. Apiguru Pty Ltd. Is currently a wholly-owned subsidiary of TROOPS, Inc.. From July 2019 to June 2021, Apiguru Pty Ltd. is engaged by Google as the API advisor. It assists its enterprise customers to build and scale their digital products and platforms globally through APIs. From April 2018 to October 2018, Mr. Thurnheer worked for Google in Australia. From May 2015 to December 2017, Mr. Thurnheer worked as API Platform Delivery Lead and Product Owner for Macquarie Bank in Australia, one of the largest international investment banks. Mr. Thurnheer enabled the bank to provide its customers with a highly personalized digital banking experience and empower them to manage their data usage. From April 2006 to March 2015, Mr. Thurnheer worked for Swisscom, the largest telecommunication service provider in Switzerland. He led the Application Programming Interface (API) project which helped Swisscom saving millions of dollars by improving efficiencies and generating millions of dollars in new revenue. Mr. Thurnheer holds a Bachelor's Degree in Economic Computer Science in ODEC Swiss Association of Graduates of Colleges of Higher Education.

On June 24, 2024, the Board of Directors of the Company approved Mr. Thurnheer's resignation as Director and appointment as President and Chief Executive Officer of the Company, effective on June 24, 2024.

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

***Tommy Wing Ling Lui*** has been our Chief Technology Officer since June 8, 2018. Mr. Lui is the founder of Webnix Technology Limited in March 1999, a web-hosting company, and 133 Limited, a software company June 2005. Mr. Lui specializes in developing block chain and distributed ledger technology for the insurance sector, in order to assist insurers with claims and insurance policy management, fraud detection, KYC and client identification. Mr. Lui obtained a Bachelor of Engineering degree in Computer Science from The University of Science and Technology in 1998.

***Chung Hang Lui*** has been our Chief Financial Officer since July 29, 2021. From January 2020 to July 2021, Mr. Lui served as the Director of Amaz Global Limited, an innovative employee benefits online platform in Hong Kong. During Mr. Lui's time with Amaz Global Limited, he collaborated with various multinational corporations such as WeWork Companies Inc., W Hotels, one of the group hotels owned by Marriott International, Inc., and Sephora USA, Inc.. Mr. Lui obtained a Bachelor's degree in Marketing and a Master's degree in Accounting from Royal Melbourne Institute and Technology (RMIT University) in Australia in December 2016 and December 2018, respectively.

***Tony Zhong*** has been our Vice President of Finance since January 1, 2014. Mr. Zhong joined our Company in September 2011 as a finance manager. From 2007 to 2011, Mr. Zhong served as a financial manager of China Hydroelectric Corporation, a company engaging in developing and operating small hydroelectric power projects in China. From 2005 to 2006, Mr. Zhong served as audit associate at KPMG International Limited in Beijing, a public accounting company. Mr. Zhong obtained a Bachelor of Arts degree in Finance, Accounting and Management from Nottingham University and a Bachelor of Science degree in Applied Accounting from Oxford Brooks University in the United Kingdom in in July 2005 and October 2015, respectively. Mr. Zhong has been a chartered global management accountant and was admitted as a fellow of the Chartered Institute of Management Accountants in December 2018. Mr. Zhong was also admitted as a fellow of the Institute Public Accountant in Australia and a fellow of the Institute of Financial Accountants in United Kingdom in October 2020. In addition, Mr. Zhong was admitted as a Fellow Certified Practising Accountant (Australia) in October 2024.

***Pui Wan Kwan*** has been our Director since December 19, 2025. From 2015 to 2020, Ms. Kwan served as Marketing Manager at Woo Chun International Co., Limited, a plastic trading company which provides buyers and sellers with matching services for plastic raw materials. Ms. Kwan specialized in developing and executing comprehensive marketing strategies, while driving the success of marketing and sales initiatives across China and Hong Kong. Since April 2020, Ms. Kwan has served as the director of several subsidiaries of the Company, including 11 Hau Fook Street Limited, Suns Tower Limited and Vision Lane Limited, which focus primarily on property leasing and management. Ms. Kwan plays a pivotal role in overseeing the Company's property portfolio and fostering strong relationships with tenants and contractors.

***Yong Li Huang*** has been our Director since September 15, 2022. Ms. Huang has over 12 years' experience in the financial industry. In 2019, Ms. Huang was employed by Dongguan Meiyin Technology Co., Ltd and in control of the development of a new financial system. From 2015 to 2019, she served as Branch Operation Director in Jupai Holdings Limited (OTCMKTS: JPYY) which is a well-known wealth and asset management company in China. She worked in Agricultural Bank of China from 2009 to 2015 and she was responsible for corporate credit analysis. Ms. Huang obtained a Bachelor's degree in Administration from Nanjing University in 2009.

***Jason Che Wai Au*** has been our independent Director since April 27, 2020. Since 2016, Mr. Au founded White Knight International Limited, a real estate agency and gold bullion trading company in Hong Kong, and has been serving as its chief executive officer. From 2004 to 2016, Mr. Au served as the managing director of the Hong Kong branch of LJ Hooker Limited, a real estate group in Australia. Mr. Au obtained a certificate in science, engineering, computing and mathematics from the University of Technology in Sydney, in 1998. Mr. Au is a registered estate agent, a registered rough diamond trader and a registered rice stockholder in Hong Kong since September 2005, July 2016 and January 2018, respectively.

***Wood Shing Kei Sze*** has been our independent Director since June 26, 2018. From April 2004 to April 2007, Mr. Sze served as an audit senior in Moore Stephens CPA Limited. From November 2007 to February 2008, Mr. Sze served as a senior accountant in Grant Thornton Hong Kong Limited. Subsequently, Mr. Sze served as financial manager of Global Beverages Asia Limited, Skyworth Digital Holdings Limited and TAL Apparael Limited since 2008, 2009 and 2013 respectively. From September 2013 to April 2018, Mr. Sze served as the financial controller of the property & facility management services at Synergis Management Services Limited, a subsidiary of Synergis Holdings Limited (02340.HK) which is a Hong Kong listed company engaging in the provision of property and facility management services. Mr. Sze obtained a Bachelor of Arts degree in Accountancy from the Hong Kong Polytechnic University in 2002. Mr. Sze is a chartered accountant at the Association of Chartered Certified Accountants since 2008.

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

***Wang Tai Dominic Li*** has been our independent Director since October 16, 2017. Since January 2012, Mr. Li founded and The Dessert Kitchen, a global dessert franchise with over 30 franchise stores worldwide, and has been serving as its Chief Executive Officer. Mr. Li has extensive experience in managing franchising businesses, forming strategic allegiances, building and maintaining important supply and distribution networks, implementing marketing and business expansion strategies through traditional media as well as crowdfunding platforms. Mr. Li obtained a Bachelor of Criminology degree from Western Sydney University in Australia in 2004.

None of the events listed in Item 401(f) of Regulation S-K has occurred during the past ten years that is material to the evaluation of the ability or integrity of any of our directors, director nominees or executive officers.

B. Compensation.

The primary objectives of our compensation policies regarding executive compensation are to attract and retain the best possible executives to lead us and to properly motivate these executives to perform at the highest levels of which they are capable. Compensation levels established for our executives are designed to promote loyalty, long-term commitment and the achievement of its goals, to motivate the best possible performance and to award achievement of budgetary goals to the extent such responsibility is within the executive's job description. Compensation decisions regarding our named executive officers have historically focused on attracting and retaining individuals who could help us to meet and exceed our financial and operational goals. Our Board of Directors considers the growth of the Company, individual performance and market trends when setting individual compensation levels.

For the year ended December 31, 2025, the aggregate cash compensation paid to our executive officers was approximately $0.25 million.

***Base salary***

We believe that the base salary element is required in order to provide executive officers with a stable income stream that is commensurate with their responsibilities and competitive market conditions. Our Board of Directors established base salaries payable to executive officers with the goal of providing a fixed component of compensation, reflecting the executive officer's skill set, experience, role and responsibilities. The determination of our Board of Directors and compensation committee of whether any of the executive officers merited an increase in base salary during any particular year depended on the individual's performance during the prior fiscal year, our performance during the prior fiscal year and competitive market practices. In establishing the current base salary levels, our Board of Directors and compensation committee did not engage in any particular benchmarking activities or engage any outside compensation advisors.

***Annual bonus***

Bonuses for any of executive officers are discretionary and are generally linked to his or her individual performances for the year, including contribution to our strategic and corporate operating plans, with individual performance and providing executive officers performance incentives for attaining specific goals.

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

#### Equity Incentive Plan

#### 2016 Omnibus Equity Plan
On July 13, 2016, the Board unanimously adopted the TROOPS 2016 Omnibus Equity Plan (the "2016 Plan") which provides up to 2,500,000 ordinary shares that may be issued pursuant to awards granted under the Plan. On August 10, 2016, the 2016 Plan was approved by the shareholders of the Company at the annual shareholders meeting of the Company.

Purpose. The purpose of the 2016 Plan is to promote our success and to increase shareholder value by providing an additional means through the grant of equity compensation awards to attract, motivate, retain and reward selected employees and other eligible persons of TROOPS.

Administration. The 2016 Plan shall be administered by, and all equity compensation awards under the 2016 Plan shall be authorized by the Board or one or more committees appointed by the Board (the "Administrator"). Any committee of the Board that serves as the Administrator shall be comprised solely of one or more directors or such number of directors as may be required under applicable laws and may delegate some or all of its authority to another committee so constituted. Unless otherwise provided in our Memorandum and Articles of Association or the applicable charter of any Administrator:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. a majority of the members of the acting Administrator shall constitute a quorum; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the vote of a majority of the members present assuming the presence of a quorum or the unanimous written consent of the members of the Administrator shall constitute action by the acting Administrator.

Eligibility. The Administrator may grant equity compensation awards under the 2016 Plan only to those persons that the Administrator determines to be either an officer, employee, director of TROOPS or a consultant or advisor of TROOPS (each of the foregoing, an "Eligible Person"); provided, however, that incentive stock options may only be granted to an Eligible Person who is an employee of TROOPS. Notwithstanding the foregoing, a person who is otherwise an Eligible Person may participate in the 2016 Plan only if such participation would not compromise our ability to comply with applicable laws (including securities laws). A participant may, if otherwise eligible, be granted additional equity compensation awards if the Administrator so determines.

Type and Form of Awards. The Administrator shall determine the type or types of equity compensation award(s) to be made to each selected Eligible Person. Under the 2016 Plan, the Administrator may grant options to purchase ordinary shares, share appreciation rights, restricted shares, and restricted share units. Such awards may be granted singly, in combination or in tandem. Awards also may be made in combination or in tandem with, in replacement of, as alternatives to, or as the payment form for grants or rights under any other employee or compensation plan of TROOPS.

Performance-Based Awards. The Administrator may grant equity compensation awards as performance-based shares under the 2016 Plan. Each such equity compensation award will have an initial value that is established by the Administrator on or before the date of grant. The grant, vesting, exercisability or payment of performance-based equity compensation awards may depend on the degree of achievement of one or more performance goals relative to a pre-established targeted level or a level using one or more of the business criteria (on an absolute or relative basis) for TROOPS on a consolidated basis or for one or more of TROOPS's subsidiaries, segments, divisions or business units, or any combination of the foregoing.

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

Transfer Restrictions. Except as specifically provided in the 2016 Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. all equity compensation awards are non-transferable and shall not be subject in any manner to sale, transfer, anticipation, alienation, assignment, pledge, encumbrance or charge;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. equity compensation awards shall be exercised only by the relevant participant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. amounts payable or shares issuable pursuant to any equity compensation award shall be delivered only to (or for the account of) the relevant participant.

The 2016 Plan provides that incentive share options may not be transferred except by will or the laws of descent and distribution. The Administrator has discretion to permit transfers of other awards where it concludes such transferability is appropriate and desirable.

Amendment and Termination. The 2016 Plan will continue in effect until the 10th anniversary of its approval by the shareholders, unless earlier terminated by our Board. Our Board may amend, suspend or terminate the 2016 Plan as it shall deem advisable, except that no amendment may adversely affect a grantee regarding awards previously granted unless such amendments are in connection with compliance with applicable laws; provided that the Board may not make any amendment in the 2016 Plan that would, if such amendment were not approved by the shareholders, cause the 2016 Plan to fail to comply with any requirement of applicable laws, unless and until shareholder approval is obtained. No award may be granted during any suspension of the 2016 Plan or after termination of the 2016 Plan. No amendment, suspension or termination of the 2016 Plan or change affecting any outstanding equity compensation award shall, without written consent of the relevant participant, affect in any manner materially adverse to the relevant participant any rights or benefits of the relevant participant or obligations of TROOPS under any equity compensation award granted under the 2016 Plan prior to the effective date of such change.

320,000 ordinary shares were awarded in December 2016 to our directors, consultants and employees (including certain executive officers), 190,000 ordinary shares were issued in January 2017 to our independent directors, consultants and employees (including certain executive officers). On April, 2018, a total of 180,000 shares were issued to certain of our directors and employees. On January 8, 2020, a total of 80,000 shares were issued to certain of our directors.

**C. Board Practices.**

#### Board of Directors and Board Committees
Our board of directors consists of five directors, three of whom are independent as such term is defined by the Nasdaq Capital Market. We have determined that Mr. Wood Shing Kei Sze, Mr. Jason Che Wai Au and Mr. Wang Tai Dominic Li satisfy the "independence" requirements under NASDAQ Rule 5605.

The directors will be up for re-election at our annual general meeting of shareholders if they are appointed by a resolution of our board of directors.

A director is not required to hold any shares in our company by way of qualification. A director who is in any way, whether directly or indirectly, interested in a contract or proposed contract with our company is required to declare the nature of his interest at a meeting of our directors. A director may vote with respect to any contract, proposed contract or arrangement notwithstanding that he may be interested therein, and if he does so his vote shall be counted and he may be counted in the quorum at any meeting of our directors at which any such contract or proposed contract or arrangement is considered. Our directors may exercise all the powers of our company to borrow money, mortgage or charge its undertaking, property and uncalled capital, and to issue debentures or other securities whenever money is borrowed or as security for any debt, liability or obligation of our company or of any third party.

**Board Committees** 

We have established three committees under the board of directors: an audit committee, a compensation committee and a nominating committee, and adopted a charter for each of the three committees. Copies of our committee charters will be posted on our corporate investor relations website prior to our listing on the Nasdaq Capital Market.

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

Each committee's members and functions are described below.

**Audit Committee.** Our audit committee consists of Mr. Wood Shing Kei Sze, Mr. Jason Che Wai Au and Mr. Wang Tai Dominic Li. Mr. Wood Shing Kei Sze is the chairperson of our audit committee. The audit committee will oversee our accounting and financial reporting processes and the audits of the financial statements of our company. The audit committee will be responsible for, among other things:

● appointing the independent auditors and pre-approving all auditing and non-auditing services permitted to be performed by the independent auditors;

● reviewing with the independent auditors any audit problems or difficulties and management's response;

● discussing the annual audited financial statements with management and the independent auditors;

● reviewing the adequacy and effectiveness of our accounting and internal control policies and procedures and any steps taken to monitor and control major financial risk exposures;

● reviewing and approving all proposed related party transactions;

● meeting separately and periodically with management and the independent auditors; and

● monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance.

**Compensation Committee.** Our compensation committee consists of Mr. Wood Shing Kei Sze, Mr. Jason Che Wai Au and Ms. Yong Li Huang. Mr. Jason Che Wai Au is the chairperson of our compensation committee. The compensation committee will be responsible for, among other things:

● reviewing and approving, or recommending to the board for its approval, the compensation for our chief executive officer and other executive officers;

● reviewing and recommending to the shareholders for determination with respect to the compensation of our directors;

● reviewing periodically and approving any incentive compensation or equity plans, programs or similar arrangements; and

● selecting compensation consultant, legal counsel or other adviser only after taking into consideration all factors relevant to that person's independence from management.

**Nominating Committee.** Our nominating committee consists of Ms. Yong Li Huang, Mr. Jason Che Wai Au and Mr. Wang Tai Dominic Li. Mr. Wang Tai Dominic Li is the chair of our nominating committee. The nominating committee will assist the board of directors in selecting individuals qualified to become our directors and in determining the composition of the board and its committees. The nominating committee will be responsible for, among other things:

● selecting and recommending to the board nominees for election by the shareholders or appointment by the board;

● reviewing annually with the board the current composition of the board with regards to characteristics such as independence, knowledge, skills, experience and diversity;

● making recommendations on the frequency and structure of board meetings and monitoring the functioning of the committees of the board; and

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

● advising the board periodically with regards to significant developments in the law and practice of corporate governance as well as our compliance with applicable laws and regulations, and making recommendations to the board on all matters of corporate governance and on any remedial action to be taken.

**Duties of Directors** 

Under Cayman Islands law, our directors owe fiduciary duties to our company, including a duty to act honestly and a duty to act in what they consider in good faith to be in our best interests. Our directors must also exercise their powers only for a proper purpose. Our directors also owe to our company a duty to act with skill and care. A director must exercise the skill and care of a reasonably diligent person having both – (i) the general knowledge, skill and experience that may reasonably be expected of a person in the same position (an objective test), and (ii) if greater, the general knowledge, skill and experience that that director actually possesses (a subjective test). In fulfilling their duty of care to us, our directors must ensure compliance with our memorandum and articles of association, as amended and restated from time to time. Our directors owe their fiduciary duties to our company and not to our company's individual shareholders, and it is our company which has the right to seek damages if a duty owed by our directors is breached. In limited exceptional circumstances, a shareholder may have the right to seek damages in our name if a duty owed by our directors is breached. In accordance with our amended and restated articles of association, without prejudice to the general powers conferred by the said articles, the functions and powers of our board of directors include, among others, (i) convening shareholders' annual general meetings and reporting its work to shareholders at such meetings, (ii) declaring dividends, (iii) appointing officers and determining their terms of offices and responsibilities, and (iv) approving the transfer of shares of our company, including the registering of such shares in our share register. You should refer to "Description of Share Capital and Governing Documents — Differences in Corporate Law" for additional information on our standard of corporate governance under Cayman Islands law.

**Interested Transactions** 

A director may vote, attend a board meeting or sign a document on our behalf with respect to any contract or transaction in which he or she is interested. A director must promptly disclose the interest to all other directors after becoming aware of the fact that he or she is interested in a transaction we have entered into or are to enter into. A general notice or disclosure to the board or otherwise contained in the minutes of a meeting or a written resolution of the board or any committee of the board that a director is a shareholder, director, officer or trustee of any specified firm or company and is to be regarded as interested in any transaction with such firm or company will be sufficient disclosure, and, after such general notice, it will not be necessary to give special notice relating to any particular transaction.

**Remuneration and Borrowing** 

The directors may receive such remuneration as our board of directors may determine from time to time. Each director is entitled to be repaid or prepaid all traveling, hotel and incidental expenses reasonably incurred or expected to be incurred in attending meetings of our board of directors or committees of our board of directors or shareholder meetings or otherwise in connection with the discharge of his or her duties as a director. The compensation committee will assist the directors in reviewing and approving the compensation structure for the directors. Our board of directors may exercise all the powers of the company to borrow money and to mortgage or charge our undertakings and property or any part thereof, to issue debentures, debenture stock and other securities whenever money is borrowed or as security for any debt, liability or obligation of the company or of any third party.

**Qualification** 

There are no membership qualifications for directors. Further, there are no share ownership qualifications for directors. There are no other arrangements or understandings pursuant to which our directors are selected or nominated.

**Director Compensation** 

All directors hold office until their successors have been duly elected and qualified. Officers are elected by and serve at the discretion of the Board of Directors. Employee directors do not receive any compensation for their services. Non-employee directors are entitled to receive an as-yet undetermined cash fee for serving as directors and may receive option grants from our company. In addition, non-employee directors are entitled to receive compensation for their actual travel expenses for each Board of Directors meeting attended.

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

**Involvement in Certain Legal Proceedings** 

To the best of our knowledge, none of our directors or officers has been convicted in a criminal proceeding, excluding traffic violations or similar misdemeanors, nor has any been a party to any judicial or administrative proceeding during the past five years that resulted in a judgment, decree or final order enjoining the person from future violations of, or prohibiting activities subject to, federal or state securities laws, or a finding of any violation of federal or state securities laws, except for matters that were dismissed without sanction or settlement. Except as set forth in our discussion below in "Related Party Transactions," our directors and officers have not been involved in any transactions with us or any of our affiliates or associates which are required to be disclosed pursuant to the rules and regulations of the SEC.

**Code of Business Conduct and Ethics** 

We have adopted a code of business conduct and ethics which is applicable to all of our directors, executive officers and employees. Copy of the code of business conduct and ethics will be posted on our corporate investor relations website prior to our listing on the Nasdaq Capital Market.

**Clawback Policy**

On November 17, 2023, our board of directors adopted a clawback policy (the "Clawback Policy") permitting the Company to seek the recoupment of incentive compensation received by any of the Company's current and former executive officers (as determined by the board in accordance with Section 10D of the Exchange Act and the Nasdaq rules) and such other senior executives/employees who may from time to time be deemed subject to the Clawback Policy by the board (collectively, the "Covered Executives"). The amount to be recovered will be the excess of the incentive compensation paid to the Covered Executive based on the erroneous data over the incentive compensation that would have been paid to the Covered Executive had it been based on the restated results, as determined by the board. If the board cannot determine the amount of excess incentive compensation received by the Covered Executive directly from the information in the accounting restatement, then it will make its determination based on a reasonable estimate of the effect of the accounting restatement. Refer to Exhibit 97.1 of this Annual Report for the Company's Clawback Policy. For the year ended December 31, 2025, we have not sought any recoupment of incentive compensation of the Covered Executives.

D. Employees.

As of December 31, 2025, we had 47 full-time employees, all of which are management and administrative staff members. Our employees are not represented by a labor organization or covered by a collective bargaining agreement. We believe that we maintain a good working relationship with our employees and we have not experienced any significant labor disputes.

E. Share Ownership.

The following tables sets forth information, as of April 27, 2026, regarding the beneficial ownership of our ordinary shares by:

● each person known to us to beneficially own more than 5% of our ordinary shares;

● each of our officers and directors; and

● all of our officers and directors as a group.

Beneficial ownership is determined in accordance with SEC rules and includes voting or investment power with respect to securities. Except as indicated by the footnotes below, we believe, based on the information furnished to it, that the persons and entities named in the table below will have sole voting and investment power with respect to all stock that they beneficially own, subject to applicable community property laws.

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

The calculations in the table below are based on 122,160,166 ordinary shares issued and outstanding as of April 27, 2026.

---

| | | |
|:---|:---|:---|
|  | **Number** | **Percent** |
| **Directors and Executive Officers:** |  |  |
| Pui Wan Kwan |  | \* |
| Tommy Wing Ling Lui |  | \* |
| Chung Hang Lui |  | \* |
| Yong Li Huang |  | \* |
| Jason Che Wai Au |  | \* |
| Wang Tai Dominic Li |  | \* |
| Wood Shing Kei Sze |  | \* |
| Tony Zhong |  | \* |
| Damian Thurnheer | 559581 | \* |
| All directors and executive officers as a group (9 persons) | 559581 | \* |
| **Over 5% Shareholders:** |  |  |
| Leung Iris Chi Yu | 23132500 | 18.9% |
| JMD Corporate Services Limited <sup>(1)</sup> | 18000000 | 14.7% |
| Prime Ocean Holdings Limited <sup>(2)</sup> | 11000000 | 9.0% |
| LIANTENG LIMITED <sup>(3)</sup> | 10912168 | 8.9% |
| WANG & LEE HOLDINGS, Inc. <sup>(4)</sup> | 9650000 | 7.9% |

---

"\*" Indicates less than 1%

&nbsp;&nbsp;&nbsp;&nbsp;(1) JMD Corporate Services Limited, a Hong Kong company, is beneficially owned by Mr. Chan Kwun Lik Edward. The business address of JMD Corporate Services Limited is Room 1401, 14/F, Chung Ying Building, 20 Connaught Road West, Sheung Wan, Hong Kong.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Prime Ocean Holdings Limited, a Seychelles corporation, is beneficially owned by Ms. Kwok Kai Kai Clara. The business address of Prime Ocean Holdings Limited is Vistra Corporate Service Centre, Suite 23, 1st Floor, Eden Plaza, Eden Island, Mahe, Republic of Seychelles.

&nbsp;&nbsp;&nbsp;&nbsp;(3) LIANTENG LIMITED, a corporation duly organized and existing under the laws of British Virgin Islands, is beneficially owned by Mr. Chan Chun Kin. The business address of LIANTENG Limited is OMC Chambers, Wickhams Cay 1, Road Town, Tortola, British Virgin Islands.

&nbsp;&nbsp;&nbsp;&nbsp;(4) WANG & LEE HOLDINGS, Inc. is a corporation duly organized and existing under the laws of the British Virgin Islands, with Mr. Ho Pui Lung as a major ultimate shareholder who beneficially owns more than 25% of its shares. The business address of WANG & LEE HOLDINGS, Inc. is Kingston Chambers, PO Box 173, Road Town, Tortola, British Virgin Islands.

#### ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
A. Major Shareholders.

Please refer to "Item 6. Directors, Senior Management and Employees — E. Share Ownership."

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

B. Related Party Balances and Transactions.

#### The following is a list of related parties which the Company has balances and transactions with:

---

| | |
|:---|:---|
| Riches Credit Insurance Brokerage Limited | Principally owned (67.5%) by the Company's former director, Rui Wu (resigned on December 19, 2025) |
| Oriental Pearl (Shenzhen) Entry-Exit Service Co., Ltd. | Principally owned (75.0%) by the by the Company's former director, Rui Wu (resigned on December 19, 2025) |
| Ms Kwok Kai Kai Clara | The beneficiary owner of Prime Ocean Holdings Limited (owns 25.8% and 9.0% of our ordinary shares as of December 31, 2025 and April 27, 2026). |

---

&nbsp;&nbsp;&nbsp;&nbsp;a. **Trade receivables from related party** 

#### As of December 31, 2025 and 2024, the balance of trade receivables from related party was as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Riches Credit Insurance Brokerage Limited | $230946 | $230946 |

---

The balances represented the trade receivables from related party for the insurance referral service rendered by the Company. For details, please refer to "f. Related Party Transactions" below.

&nbsp;&nbsp;&nbsp;&nbsp;b. **Amount due from the related party** 

#### As of December 31, 2025 and 2024, the balance of other receivables from related party was as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Oriental Pearl (Shenzhen) Entry-Exit Service Co., Ltd. | $98743 | $— |

---

&nbsp;&nbsp;&nbsp;&nbsp;c. **Accounts payable to related party** 

#### As of December 31, 2025 and 2024, no balances of accounts payable to related party.
&nbsp;&nbsp;&nbsp;&nbsp;d. **Amount due to a shareholder** 

**On December 8, 2023 and April 9, 2024, Ms Kwok Kai Kai Clara (the beneficiary owner of Prime Ocean Holdings Limited), a shareholder of the Company loaned $1.92 million and $0.38 million to Giant Credit Limited. The loan is unsecured, non-interest bearing and repayable on demand. As of December 31, 2025 and 2024, the outstanding amount due to Ms Kwok Kai Kai Clara was nil and $1.54 million.**

&nbsp;&nbsp;&nbsp;&nbsp;e. **Amount due from/to the director, the former director and the former shareholder** 

#### The balance of amount due from/to the director, the former director and the former shareholder were unsecured, interest-free and repayable on demand.
&nbsp;&nbsp;&nbsp;&nbsp;f. **Related party transactions** 

#### The following are the related party transactions for the years ended December 31, 2025 and 2024.

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Revenues - related party |  |  |
| Riches Credit Insurance Brokerage Limited (1) | $6883393 | $3053812 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) For the year ended December 31, 2025 and 2024, the Company has provided insurance referral services to Riches Credit Insurance Brokerage Limited, and has charged service fee on the basis of that.

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

C. Interests of Experts and Counsel

Not applicable.

#### ITEM 8. FINANCIAL INFORMATION
A. Consolidated Statements and Other Financial Information.

Please see "Item 18. Financial Statements" for our audited consolidated financial statements.

#### Legal Proceedings
Except as listed below, we are currently not a party to any material legal or administrative proceedings. We may from time to time be subject to various legal or administrative claims and proceedings arising in the ordinary course of business. Litigation or any other legal or administrative proceeding, regardless of the outcome, may result in additional costs and diversion of our resources, including our management's time and attention.

#### Civil Lawsuits in Hong Kong
*HCA 938 of 2022*

On August 9, 2022, TROOPS, Inc. (the "Company") and certain subsidiaries of the Company, including First Asia Finance Limited, SGOCO International (HK) Limited, Suns Tower Limited and Giant Connection Limited (the "Subsidiaries") were included amongst other Defendants and served with a writ of summons in Hong Kong (HCA 938 of 2022) and received injunctions dated August 5, 2022, issued by the High Court of the Hong Kong Special Administrative Region Court of First Instance in connection with the writ of summons. Pursuant to the injunctions, the Company and SGOCO International (HK) Limited cannot remove any of its assets wordwide and cannot dispose of or deal with or diminish the value of any of its assets worldwide up to certain amounts; Certain wholly-owned subsidiaries of the Company, namely First Asia Finance Limited, Suns Tower Limited and Giant Connection Limited, cannot remove any of its assets which are within Hong Kong and cannot dispose of or deal with or diminish the value of any of its assets within Hong Kong up to certain amounts.

On January 26, 2023, the counsel for the Company and the Subsidiaries received a statement of claim under the above proceedings, whereby the plaintiffs' alleged claims included unlawful means of conspiracy and other claims. The plaintiffs sought relief including damages and equitable compensation, among others. On August 26, 2022, the Company applied for a discharge of the injunction, and court proceedings were subsequently held from May, 2023 to June, 2023.

On September 19, 2023, an order issued by the High Court of the Hong Kong Special Administrative Region Court of First Instance dated August 22, 2023 (the "Order") was filed. Pursuant to the Order, amongst others, several injunctions against the Defendants, including the Company, were discharged: (i) the injunction order dated August 5, 2022 prohibiting disposal of assets worldwide against the Company and SGOCO International (HK) Limited was discharged; (ii) the injunction order dated August 5, 2022 prohibiting disposal of assets in Hong Kong against First Asia Finance Limited, Suns Tower Limited and Giant Connection Limited was discharged. The following conditions, amongst others, were imposed by the Order instead: (i) Suns Tower Limited must not in anyway dispose of or deal with or diminish the value of the property known as No. 8 Fui Yiu Kok Street, Tsuen Wan, New Territories; (ii) The Company must not in anyway dispose of or deal with or diminish the value of shares in Giant Connection Limited; and (iii) Giant Connection Limited must not in anyway dispose of or deal with or diminish the value of shares in Paris Sky Limited and 11 Hau Fook Street Limited.

Application for security for costs was made by the Company on April 21, 2023. High Court orders were issued on August 22, 2023 and February 7, 2024 that the Plaintiffs had to pay HK$1,500,000 and HK$2,100,000 to the High Court as security for the Company's costs.

Trial commenced on March 5, 2024 and ended on August 27, 2024.

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

A judgement issued by the High Court of Hong Kong Special Administrative Region Court of First Instance on June 23, 2025 in connection with the action no. HCA 938/2022 was filed, whereby it was ordered, amongst others, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) TROOPS, Inc. and the subsidiaries, SGOCO International (HK) Limited and Giant Connection Limited, amongst other defendants, are jointly and severally liable for payment of $163,400,000 Hong Kong Dollars; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company and the subsidiary, SGOCO International (HK) Limited, amongst other defendants, are jointly and severally liable for payment of $241,400,000 Hong Kong Dollars.

As further disclosed, on August 20, 2025, the Company received a winding up petition dated July 24, 2025 (the "Petition"), filed by Real Estate and Finance Fund (in Liquidation) (the "Petitioner") with the Grand Court of the Cayman Islands. The Petitioner sets out in the Petition that the Company is insolvent and unable to pay its debts to the Petitioner as a result of the Judgement, or in the alternative, the winding up of the Company on just and equitable grounds. The hearing of the Petition was originally set to take place on October 9, 2025.

On July 21, 2025, the Company filed a Notice of Appeal, dated July 21, 2025, in respect of the Judgement and a summons dated September 30, 2025 to stay execution of the Judgement pending determination of the appeal (the "HK Stay Application").

On October 9, 2025, a consent order was granted by the Grand Court of the Cayman Islands, pursuant to which the hearing of the Petition has been ordered to be adjourned until after determination of the HK Stay Application.

On November 24, 2025, the High Court of Hong Kong Special Administrative Region Court of First Instance issued a Notice of Hearing for stay of execution of the judgement on May 8, 2026.

On December 24, 2025, the High Court of the Hong Kong Special Administrative Region Court of Appeal issued a Notice of Hearing regarding the appeal from the Court of First Instance (Final), noting that the appeal with regards to the action no. HCA 938/2022 will be heard on February 24, 2027, with hearing dates of February 24 to February 26, 2027 being reserved.

On February 12, 2026, the High Court of Hong Kong Special Administrative Region Court of First Instance issued a Notice of Hearing for directions on consequential matters on August 20, 2026.

***Dividend Policy***

We intend to keep any future earnings to finance the expansion of our business. We do not anticipate that any cash dividends will be paid in the foreseeable future.

Under Cayman Islands law, a Cayman Islands company may pay a dividend on its shares out of either profits or share premium amount, provided that in no circumstances may a dividend be paid if this would result in the company being unable to pay its debts as they fall due in the ordinary course of business.

B. Significant Changes.

Except as disclosed elsewhere in this annual report, we have not experienced any significant changes since the date of our audited consolidated financial statements included in this annual report.

#### ITEM 9. THE OFFER AND LISTING
A. Offer and Listing Details.

Our ordinary shares are listed on the NASDAQ Capital Market.

B. Plan of Distribution.

Not applicable.

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

C. Markets.

See "Item 9. The Offer and Listing - A. Offer and Listing Details" above.

D. Selling Shareholders.

Not applicable.

E. Dilution.

Not applicable.

F. Expenses of the Issue.

Not applicable.

#### ITEM 10. ADDITIONAL INFORMATION
A. Share Capital.

Not applicable.

B. Memorandum and Articles of Association.

We incorporate by reference into this annual report the description of our amended and restated memorandum and articles of association contained in our registration statement on [Form F-1/A (File No. 333-170674)](https://www.sec.gov/Archives/edgar/data/1412095/000114420410066600/v205193_f1a.htm) originally filed with the Securities and Exchange Commission on December 15, 2010, as amended.

C. Material Contracts.

Except for the following, we have not entered into any material contracts other than in the ordinary course of business and other than those described in Item 4, or elsewhere in this annual report.

D. Exchange controls.

Under Cayman Islands law, there are currently no restrictions on the export or import of capital, including foreign exchange controls or restrictions that affect the remittance of dividends, interest or other payments to nonresident holders of our shares.

E. Taxation.

**Cayman Islands Taxation**

The Cayman Islands currently levies no taxes on individuals or corporations based upon profits, income, gains or appreciation and there is no taxation in the nature of inheritance tax or estate duty. There are no other taxes likely to be material to the Company or its shareholders levied by the Government of the Cayman Islands except for stamp duties which may be applicable on instruments executed in, or brought within Cayman Islands. The Cayman Islands is not party to any double-tax treaties that are applicable to any payments made to or by the Company save and except that the Cayman Islands are a party to a double tax treaty entered into with the United Kingdom in 2010. There are no exchange control regulations or currency restrictions in the Cayman Islands.

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

#### People's Republic of China Taxation
Pursuant to the Arrangement between the Mainland China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and Tax Evasion on Income, or the Tax Arrangement, where a Hong Kong resident enterprise which is considered a non-PRC tax resident enterprise directly holds at least 25% of a PRC enterprise, the withholding tax rate in respect of the payment of dividends by such PRC enterprise to such Hong Kong resident enterprise is reduced to 5% from a standard rate of 10%, subject to approval of the PRC local tax authority. Pursuant to the Notice of the State Administration of Taxation on the Issues concerning the Application of the Dividend Clauses of Tax Agreements, or Circular 81, a resident enterprise of the counter-party to such Tax Arrangement should meet the following conditions, among others, in order to enjoy the reduced withholding tax under the Tax Arrangement: (i) it must directly own the required percentage of equity interests and voting rights in such PRC resident enterprise; and (ii) it should directly own such percentage in the PRC resident enterprise anytime in the 12 months prior to receiving the dividends. Furthermore, the Administrative Measures for Non-Resident Enterprises to Enjoy Treatments under Tax Treaties (For Trial Implementation), or the Administrative Measures, which became effective in October 2009, requires that the non-resident enterprises must obtain the approval from the relevant tax authority in order to enjoy the reduced withholding tax rate under the tax treaties. There are also other conditions for enjoying such reduced withholding tax rate according to other relevant tax rules and regulations.

#### Hong Kong Taxation
The taxation of income and capital gains of holders of ordinary shares is subject to the laws and practices of Hong Kong and of jurisdictions in which holders of ordinary shares are resident or otherwise subject to tax. The following summary of certain relevant taxation provisions under Hong Kong law is based on current law and practice, is subject to changes therein and does not constitute legal or tax advice. The discussion does not deal with all possible tax consequences relating to an investment in the ordinary shares. Accordingly, each prospective investor (particularly those subject to special tax rules, such as banks, dealers, insurance companies, tax-exempt entities and holders of 10% or more of our voting capital stock) should consult its own tax advisor regarding the tax consequences of an investment in the ordinary shares. The discussion is based upon laws and relevant interpretations thereof in effect as of the date of this annual report, all of which are subject to change. There is no reciprocal tax treaty in effect between Hong Kong and the United States.

#### Tax on Dividends
Under the current practices of the Hong Kong Inland Revenue Department, no tax is payable in Hong Kong in respect of dividends paid by us as a company incorporated in Cayman Islands.

#### Profits Tax
No tax is imposed in Hong Kong in respect of capital gains from the sale of property (such as the ordinary shares). Trading gains from the sale of property by persons carrying on a trade, profession or business in Hong Kong where such gains are derived from or arise in Hong Kong from such trade, profession or business will be chargeable to Hong Kong profits tax, which is currently imposed at the rate of 16.5% and 15% on corporations and unincorporated businesses, respectively, and at a maximum rate of 15% on individuals. Liability for Hong Kong profits tax may thus arise in respect of trading gains from sales of ordinary shares realized by persons carrying on a business or trading or dealing in securities in Hong Kong.

#### U.S. Federal Income Taxation

#### General
The following is a summary of the material U.S. federal income tax consequences of owning and disposing of our ordinary shares. The discussion below of the U.S. federal income tax consequences to "U.S. Holders" will apply to a beneficial owner of our shares that is for U.S. federal income tax purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. an individual citizen or resident of the U.S.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. a corporation (or other entity treated as a corporation) that is created or organized (or treated as created or organized) in or under the laws of the U.S., any state thereof or the District of Columbia;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. an estate whose income is includible in gross income for U.S. federal income tax purposes regardless of its source; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. a trust if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) a U.S. court can exercise primary supervision over the trust's administration and one or more U.S. persons are authorized to control all substantial decisions of the trust; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) it has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person.

If a beneficial owner of our shares is not described as a U.S. Holder and is not an entity treated as a partnership or other pass-through entity for U.S. federal income tax purposes, such owner will be considered a "Non-U.S. Holder." The U.S. federal income tax consequences applicable specifically to non-U.S. Holders is described below under the heading "Tax Consequences to Non-U.S. Holders of Ordinary Shares."

This summary is based on the Internal Revenue Code of 1986, as amended, or the Code, its legislative history, existing and proposed Treasury regulations promulgated thereunder, published rulings and court decisions, all as currently in effect. These authorities are subject to change or different interpretations, possibly on a retroactive basis.

This discussion does not address all aspects of U.S. federal income taxation that may be relevant to us or to any particular Holder of our shares based on such Holder's individual circumstances. In particular, this discussion considers only Holders that own our shares as capital assets within the meaning of Section 1221 of the Code. This discussion also does not address the potential application of the alternative minimum tax or the U.S. federal income tax consequences to Holders that are subject to special rules, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. financial institutions or financial services entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. broker-dealers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. taxpayers who have elected mark-to-market accounting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. tax-exempt entities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. governments or agencies or instrumentalities thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. insurance companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. regulated investment companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. real estate investment trusts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. certain expatriates or former long-term residents of the U.S.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. persons that actually or constructively own 5% or more of our voting shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. persons that acquired our shares pursuant to the exercise of employee stock options, in connection with employee stock incentive plans or otherwise as compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. persons that hold our shares as part of a straddle, constructive sale, hedging, conversion or other integrated transaction; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. persons whose functional currency is not the U.S. Dollars.

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

This discussion does not address any aspect of U.S. federal non-income tax laws, such as gift or estate tax laws, or state, local or non-U.S. tax laws. Additionally, this discussion does not consider the tax treatment of partnerships or other pass-through entities or persons who hold our securities through such entities. If a partnership (or other entity classified as a partnership for U.S. federal income tax purposes) is the beneficial owner of our shares, the U.S. federal income tax treatment of a partner in the partnership will generally depend on the status of the partner and the activities of the partnership. This discussion also assumes that any distribution made (or deemed made) regarding our shares and any consideration received (or deemed received) by a Holder connected with selling or other disposition of such shares will be in U.S. Dollars.

We have not sought, and will not seek, a ruling from the Internal Revenue Service (the "IRS"), or an opinion of counsel as to any U.S. federal income tax consequence described herein. The IRS may disagree with one or more aspects of the discussion herein, and its determination may be upheld by a court. Moreover, there can be no assurance that future legislation, regulations, administrative rulings or court decisions will not adversely affect the accuracy of the statements in this discussion.

BECAUSE OF THE COMPLEXITY OF THE TAX LAWS AND BECAUSE THE TAX CONSEQUENCES TO TROOPS OR TO ANY PARTICULAR HOLDER OF OUR SECURITIES MAY BE AFFECTED BY MATTERS NOT DISCUSSED HEREIN, EACH HOLDER OF OUR SECURITIES IS URGED TO CONSULT WITH ITS TAX ADVISOR REGARDING THE SPECIFIC TAX CONSEQUENCES OF THE OWNERSHIP AND DISPOSITION OF OUR SECURITIES, INCLUDING THE APPLICABILITY AND EFFECT OF STATE, LOCAL AND NON-U.S. TAX LAWS, AS WELL AS U.S. FEDERAL TAX LAWS AND APPLICABLE TAX TREATIES.

#### Tax Consequences to U.S. Holders of Ordinary Shares

#### Taxation of Distributions Paid on Ordinary Shares
Subject to the passive foreign investment company, or PFIC, rules discussed below, a U.S. Holder generally will be required to include in gross income as ordinary income the amount of any cash dividend paid on our ordinary shares. A cash distribution on such shares will be treated as a dividend for U.S. federal income tax purposes to the extent the distribution is paid out of our current or accumulated earnings and profits (as determined for U.S. federal income tax purposes). Such dividend will not be eligible for the dividends-received deduction generally allowed to domestic corporations regarding dividends received from other domestic corporations. Any distributions in excess of such earnings and profits generally will be applied against and reduce the U.S. Holder's basis in its ordinary shares and, to the extent in excess of such basis, will be treated as gain from the sale or exchange of such ordinary shares.

Regarding non-corporate U.S. Holders for taxable years beginning before January 1, 2013, dividends may be taxed at the lower applicable long-term capital gains rate (see "— Taxation on the Disposition of Ordinary Shares" below) provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. our ordinary shares are readily tradable on an established securities market in the U.S. or, in the event we are deemed to be a Chinese "resident enterprise" under the EIT Law, we are eligible for the benefits of the Agreement between the Government of the United States of America and the Government of the People's Republic of China for the Avoidance of Double Taxation and the Prevention of Tax Evasion regarding Taxes on Income, or the "U.S.-PRC Tax Treaty;"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. we are not a PFIC, as discussed below, for either the taxable year in which the dividend was paid or the preceding taxable year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. certain holding period requirements are met. Under published IRS authority, shares are considered for purposes of clause (1) above to be readily tradable on an established securities market in the U.S. only if they are listed on certain exchanges, which presently include the NASDAQ Stock Market but do not include the OTC Bulletin Board.

We were listed on the NASDAQ Stock Market in December 2010. If we are not able to maintain such a listing, it is anticipated that our ordinary shares will be quoted and traded only on the OTC Bulletin Board. In that case, any dividends paid on our ordinary shares would not qualify for the lower rate unless we are deemed to be a Chinese "resident enterprise" under the EIT Law and are eligible for the benefits of the U.S.-PRC Tax Treaty.

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

Unless the special provisions described above, dealing with the taxation of qualified dividend income at the lower long-term capital gains rate, are extended, this favorable treatment will not apply to dividends in taxable years beginning on or after January 1, 2013. U.S. Holders should consult their own tax advisors regarding the availability of the lower rate for any dividends paid regarding our ordinary shares.

If PRC taxes apply to dividends paid to a U.S. Holder on our ordinary shares, such U.S. Holder may be entitled to a reduced rate of PRC tax under the U.S-PRC Tax Treaty. In addition, such PRC taxes may be treated as foreign taxes eligible for credit against such Holder's U.S. federal income tax liability (subject to certain limitations). U.S. Holders should consult their own tax advisors regarding the creditability of any such PRC tax and their eligibility for the benefits of the U.S.-PRC Tax Treaty.

#### Taxation on the Disposition of Ordinary Shares
Upon a sale or other taxable disposition of our ordinary shares, and subject to the PFIC rules discussed below, a U.S. Holder should recognize capital gain or loss in an amount equal to the difference between the amount realized and the U.S. Holder's adjusted tax basis in the ordinary shares.

Capital gains recognized by U.S. Holders generally are subject to U.S. federal income tax at the same rate as ordinary income, except that long-term capital gains recognized by non-corporate U.S. Holders are generally subject to U.S. federal income tax at a maximum rate of 15% for taxable years beginning before January 1, 2013 (and 20% thereafter). Capital gain or loss will constitute long-term capital gain or loss if the U.S. Holder's holding period for the ordinary shares exceeds one year. The deductibility of capital losses is subject to various limitations.

If PRC taxes would otherwise apply to any gain from the disposition of our ordinary shares by a U.S. Holder, such U.S. Holder may be entitled to a reduction in or elimination of such taxes under the U.S.-PRC Tax Treaty. Any PRC taxes that are paid by a U.S. Holder regarding such gain may be treated as foreign taxes eligible for credit against such Holder's U.S. federal income tax liability (subject to certain limitations which could reduce or eliminate the available tax credit). U.S. Holders should consult their own tax advisors regarding the creditability of any such PRC tax and their eligibility for the benefits of the U.S.-PRC Tax Treaty.

#### Additional Taxes After 2012
For taxable years beginning after December 31, 2012, U.S. Holders that are individuals, estates or trusts and whose income exceeds certain thresholds generally will be subject to a 3.8% Medicare contribution tax on unearned income, including, among other things, cash dividends on, and capital gains from the sale or other taxable disposition of, our ordinary shares, subject to certain limitations and exceptions. U.S. Holders should consult their own tax advisors regarding the effect, if any, of such tax on their ownership and disposition of our ordinary shares.

#### Passive Foreign Investment Company Rules
A foreign (*i.e.*, non-U.S.) corporation will be a PFIC if at least 75% of its gross income in a taxable year of the foreign corporation, including its pro rata share of the gross income of any corporation in which it is considered to own at least 25% of the shares by value, is passive income. Alternatively, a foreign corporation will be a PFIC if at least 50% of its assets in a taxable year of the foreign corporation, ordinarily determined based on fair market value and averaged quarterly over the year, including its pro rata share of the assets of any corporation in which it is considered to own at least 25% of the shares by value, are held for the production of, or produce, passive income. Passive income generally includes dividends, interest, rents and royalties (other than certain rents or royalties derived from the active conduct of a trade or business) and gains from the disposition of passive assets.

The composition of our passive assets during 2008 and 2009, largely consisted of cash and other investment assets. The composition of our passive income in such periods largely consisted of interest. Therefore, it is likely that we qualified as a PFIC regarding our 2008 and 2009 taxable years.

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

Based on the composition of our assets and the nature of the Company's income and subsidiaries' income for our taxable year ended December 31, 2024, we do not expect to be treated as a PFIC for such year under the tax laws as enacted and construed at the present time. But, this conclusion is based in part on our treating the "other receivable" on our balance sheet not as a passive asset for PFIC purposes on the ground that it is an installment note on the sale of stock of an affiliate company that held assets that had been actively used in our manufacturing business.

We believe this conclusion is proper. But, because the matter is not certain, there is no guarantee that the IRS in an audit would agree. If the IRS did not agree, we would likely be treated as a PFIC for both 2024 and 2023.

In addition, our actual PFIC status for our 2022 taxable year or any subsequent taxable year will not be determinable until after the end of such taxable year. Accordingly, there can be no assurance regarding our status as a PFIC for our current taxable year or any future taxable year.

If we are determined to be a PFIC and a U.S. Holder did not make either a timely qualified electing fund, or QEF, election for our first taxable year as a PFIC in which the U.S. Holder held (or was deemed to hold) ordinary shares, or a mark-to-market election, as described below, such Holder generally will be subject to special rules regarding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. any gain recognized by the U.S. Holder on the sale or other disposition of its ordinary shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. any "excess distribution" made to the U.S. Holder (generally, any distributions to such U.S. Holder during a taxable year of the U.S. Holder that are greater than 125% of the average annual distributions received by such U.S. Holder regarding the ordinary shares during the three preceding taxable years of such U.S. Holder or, if shorter, such U.S. Holder's holding period for the ordinary shares).

Under these rules:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the U.S. Holder's gain or excess distribution will be allocated ratably over the U.S. Holder's holding period for the ordinary shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the amount allocated to the U.S. Holder's taxable year in which the U.S. Holder recognized the gain or received the excess distribution, or to the period in the U.S. Holder's holding period before the first day of our first taxable year in which we are a PFIC, will be taxed as ordinary income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. the amount allocated to other taxable years (or portions thereof) of the U.S. Holder and included in its holding period will be taxed at the highest tax rate in effect for that year and applicable to the U.S. Holder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. the interest charge generally applicable to underpayments of tax will be imposed regarding the tax attributable to each such year of the U.S. Holder.

In general, a U.S. Holder may avoid the PFIC tax consequences described above in respect to our ordinary shares by making a timely QEF election to include in income its pro rata share of our net capital gains (as long-term capital gain) and other earnings and profits (as ordinary income), on a current basis, in each case whether or not distributed, in the taxable year of the U.S. Holder in which or with which our taxable year ends. There can be no assurance, however, that we will pay current dividends or make other distributions sufficient for a U.S. Holder who makes a QEF election to satisfy the tax liability attributable to income inclusions under the QEF rules, and the U.S. Holder may have to pay the resulting tax from its other assets. A U.S. Holder may make a separate election to defer the payment of taxes on undistributed income inclusions under the QEF rules, but if deferred, any such taxes will be subject to an interest charge.

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

The QEF election is made on a shareholder-by-shareholder basis and, once made, can be revoked only with the consent of the IRS. A U.S. Holder generally makes a QEF election by attaching a completed IRS Form 8621 (Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund), including the information provided in a PFIC annual information statement, to a timely filed U.S. federal income tax return for the tax year to which the election relates.

Retroactive QEF elections generally may be made only by filing a protective statement with such return and if certain other conditions are met or with the consent of the IRS. To comply with the requirements of a QEF election, a U.S. Holder must receive certain information from us. Upon request from a U.S. Holder, we will endeavor to provide to the U.S. Holder no later than 90 days after the request such information as the IRS may require, including a PFIC annual information statement, in order to enable the U.S. Holder to make and maintain a QEF election. However, there is no assurance that we will have timely knowledge of our status as a PFIC in the future or of the required information to be provided.

If a U.S. Holder has made a QEF election regarding our ordinary shares, and the special tax and interest charge rules do not apply to such shares (because of a timely QEF election for our first taxable year as a PFIC in which the U.S. Holder holds (or is deemed to hold) such shares), any gain recognized on the appreciation of our ordinary shares generally will be taxable as capital gain and no interest charge will be imposed. As discussed above, U.S. Holders of a QEF are currently taxed on their pro rata shares of its earnings and profits, whether or not distributed. In such case, a subsequent distribution of such earnings and profits that were previously included in income generally should not be taxable as a dividend to those U.S. Holders who made a QEF election. The tax basis of a U.S. Holder's shares in a QEF will be increased by amounts that are included in income, and decreased by amounts distributed but not taxed as dividends, under the above rules. Similar basis adjustments apply to property if by reason of holding such property the U.S. Holder is treated under the applicable attribution rules as owning shares in a QEF.

A determination as to our PFIC status will be made annually. But, an initial determination that our company is a PFIC will generally apply for subsequent years to a U.S. Holder who held ordinary shares while we were a PFIC, whether or not we meet the test for PFIC status in those years. A U.S. Holder who makes the QEF election discussed above for our first taxable year as a PFIC in which the U.S. Holder holds (or is deemed to hold) our ordinary shares, however, will not be subject to the PFIC tax and interest charge rules discussed above in respect to such shares. In addition, such U.S. Holder will not be subject to the QEF inclusion regime regarding such shares for any taxable year of ours that ends within or with a taxable year of the U.S. Holder and in which we are not a PFIC. But, if the QEF election is not effective for each of our taxable years in which we are a PFIC and the U.S. Holder holds (or is deemed to hold) our ordinary shares, the PFIC rules discussed above will continue to apply to such shares unless the Holder makes a purging election, and pays the tax and interest charge regarding the gain inherent in such shares attributable to the pre-QEF election period.

Alternatively, if a U.S. Holder, at the close of its taxable year, owns shares in a PFIC that are treated as marketable stock, the U.S. Holder may make a mark-to-market election regarding such shares for such taxable year. If the U.S. Holder makes a valid mark-to-market election for the first taxable year of the U.S. Holder in which the U.S. Holder holds (or is deemed to hold) shares in us and for which we are determined to be a PFIC, such Holder generally will not be subject to the PFIC rules described above in respect to its ordinary shares. Instead, in general, the U.S. Holder will include as ordinary income each year the excess, if any, of the fair market value of its ordinary shares at the end of its taxable year over the adjusted basis in its ordinary shares. The U.S. Holder also will be allowed to take an ordinary loss regarding the excess, if any, of the adjusted basis of its ordinary shares over the fair market value of its ordinary shares at the end of its taxable year (but only to the extent of the net amount of previously included income as a result of the mark-to-market election). The U.S. Holder's basis in its ordinary shares will be adjusted to reflect any such income or loss amounts, and any further gain recognized on a sale or other taxable disposition of the ordinary shares will be treated as ordinary income.

The mark-to-market election is available only for stock that is regularly traded on a national securities exchange that is registered with the SEC, or on a foreign exchange or market that the IRS determines has rules sufficient to establish that the market price represents a legitimate and sound fair market value. Although we became listed on the NASDAQ Stock Market in December 2010, if we are not able to maintain such a listing, it is anticipated that our ordinary shares would continue to be quoted and traded only on the OTC Bulletin Board. If our ordinary shares were to be quoted and traded only on the OTC Bulletin Board, such shares may not currently qualify as marketable stock for purposes of the election. U.S. Holders should consult their own tax advisors regarding the availability and tax consequences of a mark-to-market election in respect to our ordinary shares under their particular circumstances.

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

If we are a PFIC and, at any time, have a foreign subsidiary that is classified as a PFIC, U.S. Holders generally would be deemed to own a portion of the shares of such lower-tier PFIC, and generally could incur liability for the deferred tax and interest charge described above if we receive a distribution from, or dispose of all or part of our interest in, the lower-tier PFIC. Upon request, we will endeavor to cause any lower-tier PFIC to provide to a U.S. Holder no later than 90 days after the request the information that may be required to make or maintain a QEF election regarding the lower-tier PFIC. However, there is no assurance that we will have timely knowledge of the status of any such lower-tier PFIC or will be able to cause the lower-tier PFIC to provide the required information. U.S. Holders are urged to consult their own tax advisors regarding the tax issues raised by lower-tier PFICs.

If a U.S. Holder owns (or is deemed to own) shares during any year in a PFIC, such Holder may have to file an IRS Form 8621 (whether or not a QEF election or mark-to-market election is made).

The rules dealing with PFICs and with the QEF and mark-to-market elections are very complex and are affected by various factors in addition to those described above. Accordingly, U.S. Holders of our ordinary shares should consult their own tax advisors concerning the application of the PFIC rules to our ordinary shares under their particular circumstances.

#### Tax Consequences to Non-U.S. Holders of Ordinary Shares
Dividends paid to a non-U.S. Holder in respect to its ordinary shares generally will not be subject to U.S. federal income tax, unless the dividends are effectively in connection with the non-U.S. Holder's conduct of a trade or business within the U.S. (and, if required by an applicable income tax treaty, are attributable to a permanent establishment or fixed base that such Holder maintains in the U.S.).

In addition, a non-U.S. Holder generally will not be subject to U.S. federal income tax on any gain attributable to a sale or other disposition of our ordinary shares, unless such gain is effectively in connection with its conduct of a trade or business in the U.S. (and, if required by an applicable income tax treaty, is attributable to a permanent establishment or fixed base that such Holder maintains in the U.S.) or the non-U.S. Holder is an individual who is present in the U.S. for 183 days or more in the taxable year of sale or other disposition and certain other conditions are met (in which case, such gain from U.S. sources generally is subject to tax at a 30% rate or a lower applicable tax treaty rate).

Dividends and gains that are effectively in connection with the non-U.S. Holder's conduct of a trade or business in the U.S. (and, if required by an applicable income tax treaty, are attributable to a permanent establishment or fixed base in the U.S.) generally will be subject to tax in the same manner as for a U.S. Holder and, in the case of a non-U.S. Holder that is a corporation for U.S. federal income tax purposes, may also be subject to an additional branch profits tax at a 30% rate or a lower applicable tax treaty rate.

#### Backup Withholding and Information Reporting
In general, information reporting for U.S. federal income tax purposes should apply to distributions made on our ordinary shares within the U.S. to a non-corporate U.S. Holder and to the proceeds from sales and other dispositions of our ordinary shares by a non-corporate U.S. Holder to or through a U.S. office of a broker. Payments made (and sales and other dispositions effected at an office) outside the U.S. will be subject to information reporting in limited circumstances. In addition, backup withholding of United States federal income tax, currently at a rate of 28%, generally will apply to dividends paid on our ordinary shares to a non-corporate U.S. Holder and the proceeds from sales and other dispositions of shares by a non-corporate U.S. Holder, in each case who:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. fails to provide an accurate taxpayer identification number;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. is notified by the IRS that backup withholding is required; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. in certain circumstances, fails to comply with applicable certification requirements.

Unless current individual income tax rates are extended, the backup withholding rate will increase to 31% for payments made on or after January 1, 2013. A non-U.S. Holder generally may eliminate the requirement for information reporting and backup withholding by providing certification of its foreign status, under penalties of perjury, on a duly executed applicable IRS Form W-8 or by otherwise establishing an exemption.

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

Backup withholding is not an additional tax. Rather, the amount of any backup withholding will be allowed as a credit against a U.S. Holder's or a non-U.S. Holder's U.S. federal income tax liability and may entitle such Holder to a refund, provided that certain required information is timely furnished to the IRS. Holders are urged to consult their own tax advisors regarding the application of backup withholding and the availability of and procedure for obtaining an exemption from backup withholding in their particular circumstances.

For taxable years beginning after March 18, 2010, individual U.S. Holders may be required to report ownership of our ordinary shares and certain related information on their individual federal income tax returns in certain circumstances. Generally, this reporting requirement will apply if: (1) the ordinary shares are held in an account of the individual U.S. Holder maintained with a "foreign financial institution"; or (2) the ordinary shares are not held in an account maintained with a "financial institution," as such terms are defined in the Code. The reporting obligation will not apply to an individual, however, unless the total aggregate value of the individual's foreign financial assets exceeds $50,000 during a taxable year.

For clarification, this reporting requirement should not apply to ordinary shares held in an account with a U.S. brokerage firm. Not complying with this reporting requirement, if it applies, will result in substantial penalties. In certain circumstances, additional tax and other reporting requirements may apply. U.S. Holders of our ordinary shares are advised to consult with their own tax advisors concerning all such reporting requirements.

F. Dividends and paying agents.

Not applicable.

G. Statement by experts.

Not applicable.

H. Documents on display.

We are subject to the periodic reporting and other informational requirements of the Exchange Act. Under the Exchange Act, we are required to file reports and other information with the SEC. Specifically, we are required to file annually a Form 20-F no later than four months after the close of each fiscal year and submit other information under cover of Form 6-K. Annual report and other information we file with the SEC may be inspected at the public reference facilities maintained by the SEC at Room 1024, 100 F. Street, N.E., Washington, D.C. 20549, and copies of all or any part thereof may be obtained from such offices upon payment of the prescribed fees. You may call the SEC at 1-800-SEC-0330 for further information on the operation of the public reference rooms and you can request copies of the documents upon payment of a duplicating fee, by writing to the SEC. In addition, the SEC maintains a web site that contains reports and other information regarding registrants (including us) that file electronically with the SEC which can be accessed at *www.sec.gov*.

Our Internet website is *www.troops.co*. We make our annual report on Form 20-F and any amendments to such reports available free of charge on our website as soon as reasonably practicable following the electronic filing of each report with the SEC. In addition, we provide copies of our filings free of charge upon request. The information contained on our website is not part of this or any other report filed with or furnished to the SEC.

As a foreign private issuer, we are exempt from the proxy requirements of Section 14 of the Exchange Act and our officers, directors and principal shareholders will be exempt from the insider short-swing disclosure and profit recovery rules of Section 16 of the Exchange Act.

I. Subsidiary Information

Not required.

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

#### ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

#### Concentration of credit risk
&nbsp;&nbsp;&nbsp;&nbsp;● Credit risk on loan receivables

Credit risk is one of the most significant risks for the Company's business and arise principally in lending activities.

Credit risk on loan receivables is controlled by the application of credit approvals, limits and monitoring procedures. To minimize credit risk, the Company requires collateral primarily in the form of rights to property.

The provision for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the provision. The provision is based on the Company's past loan loss history, known and inherent risks of the borrower, adverse situations that may affect the borrower's ability to repay, the estimated value of any underlying collateral, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available.

The Company originates loans to customers located primarily in Hong Kong. This geographic concentration of credit exposes the Company to a higher degree of risk associated with this economic region. Prior to January 1, 2020, the Company mainly reflects the "probability of default" by the customer on its contractual obligations and considers the current financial position of the customer and the exposures to the customer and its likely future development. For individual customers, the Company uses standard approval procedures to manage credit risk for personal loans.

The Company adopted Accounting Standard Update (ASU) 2016-13, Financial Instruments-Credit Losses (codified as Accounting Standard Codification Topic 326), since January 1, 2020, which requires measurement and recognition of current expected credit losses for financial instruments held at amortized cost. The Company's loan receivables and interest receivables are within the scope of ASC Topic 326.

The reversal of provision for loan losses of $0.45 million, the provision for loan losses of $3.47 million and reversal of provision for loan losses of $0.05 was recognized for the years ended December 31, 2025, 2024 and 2023, respectively.

The Company's trade receivables, loan receivables, interest receivables and other receivables and prepayments are within the scope of ASC Topic 326.

To estimate expected credit losses as of December 31, 2025, the Company has conducted an assessment of expected credit loss of loan and interest receivables ("Financial Assets") held by the Company and together with its subsidiaries. The Financial Assets are outstanding loan receivable, net of provision for loan losses, from the money lending business in a total amount of $7.69 million ("Principal") and $0.85 million ("Interest") respectively.

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

Movement of the provision for loan losses and interest receivables are as follows:

(In thousands of U.S. dollars)

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2025** | **2024** |
| Balance as of January 1 | $5491 | $2023 |
| Provisions for doubtful accounts |  |  |
| &nbsp;&nbsp;Personal loans | 29 | 371 |
| &nbsp;&nbsp;Corporate loans | 1 | 3144 |
| Reversal for doubtful accounts |  |  |
| &nbsp;&nbsp;Personal loans | (385) |  |
| &nbsp;&nbsp;Corporate loans | (29) |  |
| Write offs |  |  |
| Recoveries of amounts previously charged off | (69) | (47) |
| Balance as of December 31 | 5038 | 5491 |

---

As of December 31, 2025, the loan receivables due from 3 customers accounted for 26%, 19% and 15% of total loan receivables. As of December 31, 2025, no other customer accounted for more than 10% of total loan balance.

As of December 31, 2024, the loan receivables due from 2 customers accounted for 11% and 31% of total loan receivables. As of December 31, 2025, no other customer accounted for more than 10% of total loan balance.

Movement of the provision for other receivables and prepayments are as follows:

(In thousands of U.S. dollars)

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2025** | **2024** |
| Balance as of January 1 | $10 | $8 |
| Provisions for doubtful accounts | 109 | 10 |
| Write offs |  |  |
| Recoveries of amounts previously charged off | (10) | (8) |
| Changes due to foreign exchange |  |  |
| Balance as of December 31 | 109 | 10 |

---

&nbsp;&nbsp;&nbsp;&nbsp;● Credit risk on trade receivables

Movement of the provision for trade receivables is as follows:

(In thousands of U.S. dollars)

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2025** | **2024** |
| Balance as of January 1 | $243 | $— |
| Provisions for doubtful accounts | 3 | 243 |
| Reversal for doubtful accounts | (60) |  |
| Write offs | (184) |  |
| Recoveries of amounts previously charged off |  |  |
| Changes due to foreign exchange | 1 |  |
| Balance as of December 31 | 3 | 243 |

---

As of December 31, 2025, the trade receivables due from one customer accounted for 98% of total trade receivables. As of December 31, 2025, no other customer accounted for more than 10% of total trade receivables.

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

As of December 31, 2024, the trade receivables due from 4 customers accounted for 13%, 17%, 20% and 41% of total trade receivables. As of December 31, 2025, no other customer accounted for more than 10% of total trade receivables.

#### Concentration of customer
Revenue from 2 major customer accounted for 40% and 29% of the Company's total revenues, for the year ended December 31, 2025. No other single customer accounted for more than 10% of the Company's total revenues, for the year ended December 31, 2025.

Revenue from 1 major customer accounted for 30% of the Company's total revenues, for the year ended December 31, 2024. No other single customer accounted for more than 10% of the Company's total revenues, for the year ended December 31, 2024.

#### Concentration of geographic area
The Company does not allocate its assets located and expenses incurred outside Hong Kong to its reportable segments because these assets and activities are managed at a corporate level (Note 17).

Geographic area data is based on product shipment destination. In accordance with the enterprise-wide disclosure requirements of the accounting standard, the Company's net revenue from external customers by geographic areas is as follows:

(In thousands of U.S. dollars)

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Hong Kong | 16783 | 10047 | 3442 |
| Australia | 115 |  | 127 |
| PRC | 198 | 26 |  |
| Total | $17096 | $10073 | $3569 |

---

#### Concentration of supplier
***For the year ended December 31, 2025 and 2024, there were no suppliers accounted for more than 10% of the Company's total cost of revenues, for the year ended December 31, 2025 and 2024.***

#### Concentration of deposit institution of cash and bank deposit
As of December 31, 2025 and 2024, majority of the Company's cash is deposited in banks located in Hong Kong. In Hong Kong, Deposit Protection Scheme is in place which protects eligible deposits held with banks in Hong Kong. Hong Kong Deposit Protection Board will compensate up to a limit of HKD800,000 to each depositor if the bank which hold eligible deposits fails.

As of December 31, 2025, the Company had $4.02 million cash and bank deposits. The Company held seven bank accounts with total amount of $1.63 million cash deposited in Alpen Baruch Bank Limited which is an international bank situated in Vanuatu. There is no Deposit Protection Scheme in place which protects eligible deposits held with banks in Vanuatu.

Eligible deposits include all types of ordinary deposits such as current accounts, savings accounts, secured deposits and time deposits with a maturity not exceeding five years. Eligible deposits are protected regardless of the currency in which the deposits are denominated.

#### Foreign currency risk
Certain transactions of the Company are denominated in HKD, RMB and AUD which is different from the functional currency of the Company, and therefore the Company is exposed to foreign currency risk. As the HKD is currently pegged to the USD and the transactions of the Company denominated in RMB and AUD are immaterial, management considers that there is no significant foreign currency risk arising from the Company's monetary assets denominated in USD.

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

The Company currently does not have a foreign currency hedging policy. However, the management monitors foreign exchange exposure and will consider hedging significant foreign exchange exposure should the need arise.

#### ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
Not applicable.

#### PART II

#### ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
We have not had a default of any indebtedness, and there has not been any arrearage in the payment of dividends.

#### ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
None.

#### ITEM 15. CONTROLS AND PROCEDURES

#### Disclosure Controls and Procedures
Under the oversight and involvement of our management, including our Chief Executive Officer and our Chief Financial Officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures, which is defined in Rules 13a-15(e) of the Exchange Act, as of December 31, 2025. Based on that evaluation, our management, headed by our Chief Executive Officer and Chief Financial Officer, has concluded that, as of the end of the period covered by this annual report, our disclosure controls and procedures were effective.

#### Management's Annual Report on Internal Control Over Financial Reporting
Our management is responsible for the establishment and maintenance of adequate internal control over financial reporting, as defined under Rule 13a-15(f) of the Exchange Act. This internal control process is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements in compliance with U.S. GAAP. The system encompasses policies and procedures that: (i) ensure accurate and fair recording of transactions and asset dispositions, reflecting them in reasonable detail; (ii) provide reasonable assurance that transactions are properly recorded to facilitate the preparation of consolidated financial statements in accordance with U.S. GAAP, and that all receipts and expenditures are authorized by management and the board; and (iii) offer reasonable assurance for the prevention or prompt detection of any unauthorized acquisition, use, or disposal of company assets that may materially impact the consolidated financial statements. A control system, regardless of its design and operation, can only provide reasonable, rather than absolute, assurance that its objectives will be achieved. Due to inherent limitations, internal control over financial reporting may not prevent or detect all material misstatements. Additionally, any projections regarding the effectiveness of our internal control over financial reporting for future periods are subject to the risk that controls may become inadequate due to changes in operating conditions or that adherence to policies and procedures may deteriorate.

Our management, headed by our Chief Executive Officer and Chief Financial Officer, assessed the effectiveness of our internal control over financial reporting using the criteria established in the framework in Internal Control--Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, our management has concluded that our internal control over financial reporting was effective as of December 31, 2025.

#### Attestation report of the registered public accounting firm
This annual report includes an attestation report of our registered public accounting firm, AssentSure PAC, regarding internal control over financial reporting as of December 31, 2025 that appears herein.

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

#### Changes in internal control over financial reporting
In 2024, our management focused on establishing a sound and robust internal control system and implemented a series of remediation plans to address the material weaknesses identified by our independent registered public accounting firm in prior years.The key changes in internal control over financial reporting were outlined as followings:

Issue 1: Our inadequate documentation on internal control over financial reporting

**Our Implementation Plans:** We have developed and enhanced the relevant policies and procedures, ensuring the proper collection of supporting documentation at each stage of the transaction process, from initiation and verification to authorization and recording.

Issue 2: Our maintenance of documentation on operating effectiveness tests of internal control over financial reporting

**Our Implementation Plans:** We have developed comprehensive documentation, including testing templates for each identified key control, to capture all relevant details and testing results regarding the effectiveness of control operations.

Issue 3: Our limited written documentation on monitoring loan risk assessment on a regular basis

**Our Implementation Plans:** The loan monitoring procedures have been established, and the corresponding control procedures have been effectively implemented, with proper documentation maintained to support the process.

Issue 4: Our lack of sufficient controls and policies on loan credit risk monitoring in post-loan management, on a regular basis

**Our Implementation Plans:** Proper control policies and procedures for monitoring loan credit risk in post-loan management have been established and effectively implemented. Supporting documentation has been appropriately maintained to evidence the operating effectiveness of these controls.

Issue 5: Our inadequate control procedures on monitoring expired loans and overdue principal and interest payments

**Our Implementation Plans:** Enhanced policies and procedures have been developed to monitor expired loans, overdue principal, and interest payments, and have been effectively implemented.

Issue 6: Our lack of sufficient qualified accounting personnel with appropriate understanding of U.S. GAAP and SEC reporting requirements commensurate with the Company's financial reporting requirements, which resulted in a number of internal control deficiencies. Also, as a small-scale company, the Company does not have sufficient internal control personnel to set up adequate review functions at each reporting level.

**Our Implementation Plans:** The key management of the financial reporting team, all of whom are CPA holders with extensive experience in U.S. financial reporting, received comprehensive U.S. GAAP training and obtain annual certification in U.S. GAAP in 2024. This ensures they remain updated on the latest U.S. GAAP and SEC reporting requirements, ensuring full awareness and compliance with these standards. In addition, the Company has established an appropriate review function and designated proper staff to carry out the review process at the financial reporting level.

As of December 31, 2025, based on an assessment performed by our management on the performance of the above mentioned remediation measures, we concluded that the material weaknesses previously identified in our internal control over financial reporting had been remedied.

Other than those described above, the significant and general weaknesses identified in this assessment have been appropriately addressed, with corrective action plans implemented accordingly. Except as mentioned above, there has been no change to our internal control over financial reporting during the period covered by this annual report on Form 20-F that have materially affected, or are reasonably likely to materially affect, the effectiveness of our internal control over financial reporting.

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

#### ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT
Our Board of Directors has determined that Mr. Sze is an audit committee financial expert, and is independent for the purposes of the NASDAQ Listing Rules and Rule 10A-3 under the Exchange Act.

#### ITEM 16B. CODE OF ETHICS
We have adopted a Code of Ethics that applies to our directors, officers and employees. The Code of Ethics is designed to deter wrongdoing and to promote ethical conduct and full, fair, accurate, timely and understandable reports that the Company files or submits to the SEC and others. We have filed our Code of Ethics and Conduct as an exhibit to this annual report.

#### ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES
The following table sets forth the aggregate fees by categories specified below in connection with certain professional services rendered by our principal external independent registered public accountant firms in 2025 and 2024.

(In thousands of U.S. dollars)

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Audit Fee | $332 | $305 |
| Audit-Related Fees |  |  |
| Tax fees |  |  |
| &nbsp;&nbsp;Total | $332 | $305 |

---

*Audit Fees*

Audit fees represent the aggregate fees billed for the audit of our annual financial statements, review of our interim financial statements, review of registration statements or services that are normally provided in connection with statutory and regulatory filings or engagements for those fiscal years.

*Audit-Related Fees*

There were no other audit-related fees billed by the principal accountant during the last two fiscal years for assurance and related services that were reasonably related to the performance of the audit not reported under "Audit Fees" above.

#### Audit Committee Pre-Approval Policies and Procedures
The Audit Committee of the Board of Directors on an annual basis reviews audit and non-audit services performed by the independent auditors. All audit and non-audit services are pre-approved by the Audit Committee, which considers, among other things, the possible effect of the performance of such services on the auditors' independence.

#### ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
None.

#### ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
Not applicable.

#### ITEM 16F. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT
On January 19, 2026, the Board of Directors of TROOPS, Inc. (the "Company") approved the dismissal of Audit Alliance LLP ("Audit Alliance") as the Company's independent registered public accounting firm, effective January 19, 2026.

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

Audit Alliance's reports on the Company's financial statements for the fiscal years ended December 31, 2024, 2023 and 2022 did not contain any adverse opinion or disclaimers of opinion and were not qualified or modified as to uncertainty, audit scope, or accounting principles. Furthermore, during the Company's most recent fiscal year, there were no disagreements with Audit Alliance on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Audit Alliance, would have caused Audit Alliance to make reference to the subject matter of the disagreements in connection with its reports on the Company's financial statements for such year. Also, during this time, there were no "reportable events" as defined in Item 304(a)(1)(v) of Regulation S-K.

The Company has provided Audit Alliance with a copy of the disclosures hereunder and required under Item 16F of Form 20-F and has requested that Audit Alliance review such disclosures and provide a letter addressed to the Securities and Exchange Commission ("SEC") indicating whether it agrees with such disclosures. A copy of Audit Alliance's letter addressed to the SEC relating to the statements made by the Company was attached as exhibit 99.1 to the Company's Report on Form 6-K filed on January 20, 2026, and is hereby incorporated by reference.

On January 19, 2026, the audit committee of the board of directors of the Company approved the appointment of AssentSure PAC as the Company's independent registered public accounting firm to perform independent audit services for the year ended December 31, 2025.

During the three most recent fiscal years and any subsequent interim periods prior to the engagement of AssentSure PAC, neither the Company, nor someone on behalf of the Company, has consulted AssentSure PAC regarding (i) the application of accounting principles to any specified transaction, either completed or proposed or the type of audit opinion that might be rendered on the Company's consolidated financial statements, and neither a written report nor oral advice was provided to the Company that AssentSure PAC concluded was an important factor considered by the Company in reaching a decision as to any accounting, auditing, or financial reporting issue, or (ii) any matter that was either the subject of a "disagreement" as defined in Item 304(a)(1)(iv) of Regulation S-K, or a "reportable event" as defined in Item 304(a)(1)(v) of Regulation S-K, or any other matters set forth in Item 304(a)(2)(i) and (ii) of Regulation S-K.

#### ITEM 16G. CORPORATE GOVERNANCE
There are no material differences in our corporate governance practices from those of U.S. domestic companies under the listing standards of NASDAQ.

#### ITEM 16H. MINE SAFETY DISCLOSURE
Not applicable.

#### ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTION THAT PREVENT INSPECTIONS
Not applicable.

#### ITEM 16J. INSIDER TRADING POLICIES
The Company has adopted the "Statement of Policy Concerning Trading in Company Securities" governing the purchase, sale, and other dispositions of its securities by directors, senior management, and employees that are reasonably designed to promote compliance with applicable insider trading laws, rules and regulations, and any Nasdaq rules applicable to the Company.

#### ITEM 16K. CYBERSECURITY
The Company recognizes the importance of assessing, identifying and managing material risks associated with cybersecurity threats. These risks include, among other things: operational risks, intellectual property theft, fraud, extortion, harm to employees or customers and violation of data privacy and security laws.

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

We maintain various cybersecurity measures and protocols to safeguard our systems and data and continuously monitor and assess potential threats to pre-emptively address any emerging cyber risks. We have implemented various processes for assessing, identifying, and managing material risks from cybersecurity threats, which are integrated into our overall risk management framework. These processes include access controls to organizational systems, data encryption, and security awareness campaigns, and are designed to systematically evaluate potential vulnerabilities and cybersecurity threats and minimize their potential impact on our organization's operations, assets, and stakeholders. Our cybersecurity risk management processes share common methodologies, reporting channels and governance processes with our broader risk management processes. By embedding cybersecurity risk management into and aligning it with our broader risk management processes, we aim to ensure a comprehensive and proactive approach to safeguarding our assets and operations.

We engage third-party consultants and specialists to enhance the effectiveness of our cybersecurity processes, augment our internal capabilities, validate our controls, and stay abreast of evolving cybersecurity risks and best practices.

For the year ended December 31, 2025, we did not detect any cybersecurity incidents that have materially affected or are reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition.

Responsibility for overseeing cybersecurity risks is integrated into our management team, which includes our directors and chief financial officer. We also utilize third-party service providers who are responsible for monitoring, detecting and assessing cybersecurity risks and incidents. These third-party service providers are also used for certain IT-related services, where appropriate, to assess, test or otherwise assist with aspects of our security controls. Accordingly, we also implement processes to oversee and identify material cybersecurity risks associated with our utilization of third-party service providers on whom we have a material dependency.

Our third-party service providers currently comprise IT professionals with expertise in risk management, cybersecurity, and information technology. These individuals have, and any future individuals are expected to have credentials relevant to their role, which includes prior experience working in similar roles and formal education. The third-party service providers are also expected to keep abreast of cybersecurity best practices and procedures. The third-party service providers are responsible for assessing, identifying and mitigating material cybersecurity risks, including at a strategic level, monitoring for, defending against and remediating cybersecurity incidents and implementing and making improvements to our overall cybersecurity strategy.

As we do not have a dedicated board committee solely focused on cybersecurity, our full board oversees the implementation of our cybersecurity strategy, as well as cybersecurity risks, with the aim of protecting our interests and assets. Our cybersecurity strategy was developed by our management team, the third-party service providers and approved by our management. The board receives reports from our third-party service providers should any irregularities relating to cybersecurity noted.

#### PART III

#### ITEM 17. FINANCIAL STATEMENTS
We have elected to provide financial statements pursuant to Item 18.

#### ITEM 18. FINANCIAL STATEMENTS
Our consolidated financial statements are included at the end of this annual report.

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

#### ITEM 19. EXHIBITS

---

| | |
|:---|:---|
| **Exhibit**<br>**Number** | **Description of Exhibit** |
| 1.1 | [Amended and Restated Memorandum and Articles of Association of the Company (incorporated by reference to Exhibit 3.1 to the Company's Form F-1 (file no. 333-170674) filed on December 15, 2010)](https://www.sec.gov/Archives/edgar/data/1412095/000114420410066600/v205193_ex3-1.htm) |
| 2.1 | [Warrant Agreement by and between the Company and the warrant agent (incorporated by reference to Exhibit 4.1 of the Company's Form 6-K filed on February 18, 2010)](https://www.sec.gov/Archives/edgar/data/1412095/000114420410008908/v174478_ex4x1.htm) |
| 2.2 | [Amendment No. 1 to the Warrant Agreement (incorporated by reference to Exhibit 4.1 of the Company's Form 6-K filed on March 16, 2010)](https://www.sec.gov/Archives/edgar/data/1412095/000114420410013695/v177474_ex4-1.htm) |
| 2.3 | [Unit Purchase Option issued to the underwriter in the Company's initial public offering (incorporated by reference to Exhibit 4.6 to the Company's Form S-1 (file no. 333-146147) filed February 1, 2008)](https://www.sec.gov/Archives/edgar/data/1412095/000114420408005630/v101302_ex4-6.htm) |
| 2.4 | [Escrow Agreement by and among escrow agent, the shareholders of Honesty Group and the initial sponsors of the Company (incorporated by reference to Exhibit 4.6 to the Company's Form F-1 (file no. 333-146147) filed August 5, 2010)](https://www.sec.gov/Archives/edgar/data/1412095/000114420410041367/v177474_ex4-6.htm) |
| 2.5 | [Amendment No 1 to Escrow Agreement dated April 17, 2012 among escrow agent, the former shareholder of Honesty Group, the initial sponsors of the Company and TROOPS, Inc.. (incorporated by reference to Exhibit 2.5 to the Company's Form 20-F (file no. 001-35016) filed August 30, 2012)](https://www.sec.gov/Archives/edgar/data/1412095/000114420412048947/v309777_ex2-5.htm) |
| 2.6 | [Sponsors Agreement, dated as of February 12, 2010, among Sun Zone Investments Limited, Sze Kit Ting, Robert Eu, W.R. Hambrecht + Co., LLC, Hambrecht 1980 Revocable Trust, AEX Enterprises Limited, John Wang, Marbella Capital Partners LLC., Cannon Family Irrevocable Trust and Shea Ventures LLC., and Hambrecht Asia Acquisition Corp. (incorporated by reference to Exhibit 10.16 to the Company's Form F-1 (file no. 333-146147) filed August 5, 2010)](https://www.sec.gov/Archives/edgar/data/1412095/000114420410041367/v177474_ex10-16.htm) |
| 2.7 | [Amendment No. 1 to Sponsors Agreement, dated as of March 11, 2010, among Sun Zone Investments Limited, Sze Kit Ting, Robert Eu, W.R. Hambrecht + Co., LLC, Hambrecht 1980 Revocable Trust, AEX Enterprises Limited, John Wang, Marbella Capital Partners LLC., Cannon Family Irrevocable Trust and Shea Ventures LLC (incorporated by reference to Exhibit 10.17 to the Company's Form F-1 (file no. 333-146147) filed August 5, 2010)](https://www.sec.gov/Archives/edgar/data/1412095/000114420410041367/v177474_ex10-17.htm) |
| 2.8 | [Amendment No 2 to Sponsor Agreement dated April 17, 2012 among Sun Zone Investments Limited, Sze Kit Ting Robert Eu, W.R. Hambrecht + Co., LLC, Hambrecht 1980 Revocable Trust, AEX Enterprises Limited, John Wang, Marbella Capital Partners LLC., Cannon Family Irrevocable Trust and Shea Ventures LLC., and TROOPS, Inc.. (incorporated by reference to Exhibit 2.8 to the Company's Form 20-F (file no. 001-35016) filed August 30, 2012)](https://www.sec.gov/Archives/edgar/data/1412095/000114420412048947/v309777_ex2-8.htm) |
| 2.9 | [Amendment No 2 to Escrow Agreement dated February 26, 2013 among escrow agent, the former shareholder of Honesty Group, the initial sponsors of the Company and TROOPS, Inc.. (incorporated by reference to Exhibit 2.9 to the Company's Form 20-F (file no. 001-35016) filed April 19, 2013)](https://www.sec.gov/Archives/edgar/data/1412095/000114420413022826/v340726_ex2-9.htm) |
| 2.10 | [Amendment No 3 to Sponsor Agreement dated February 26, 2013 among Sun Zone Investments Limited, Sze Kit Ting Robert Eu, W.R. Hambrecht + Co., LLC, Hambrecht 1980 Revocable Trust, AEX Enterprises Limited, John Wang, Marbella Capital Partners LLC., Cannon Family Irrevocable Trust and Shea Ventures LLC., and TROOPS, Inc.. (incorporated by reference to Exhibit 2.10 to the Company's Form 20-F (file no. 001-35016) filed April 19, 2013)](https://www.sec.gov/Archives/edgar/data/1412095/000114420413022826/v340726_ex2-10.htm) |
| 4.1 | [English Translation of Business License for Beijing SGOCO Image Technology Co., Ltd. (incorporated by reference to Exhibit 4.6 to the Company's Form 20-F (file no. 001-35016) filed August 30, 2012)](https://www.sec.gov/Archives/edgar/data/1412095/000114420412048947/v309777_ex4-6.htm) |
| 4.2 | [English Translation of Business License for SGOCO (Shenzhen) Technology Co., Ltd. (incorporated by reference to Exhibit 4.7 to the Company's Form 20-F (file no. 001-35016) filed April 22, 2014)](https://www.sec.gov/Archives/edgar/data/1412095/000114420414024111/v371724_ex4-7.htm) |
| 4.3 | [Sale and Purchase Agreement dated November 15, 2011, by and between Apex Flourish Group Limited and TROOPS, Inc.. (incorporated by reference to Exhibit 4.7 to the Company's Form 20-F (file no. 001-35016) filed August 30, 2012)](https://www.sec.gov/Archives/edgar/data/1412095/000114420412048947/v309777_ex4-7.htm) |
| 4.4 | [English Translation of Sale and Purchase Agreement dated December 24, 2014, by and between Apex Flourish Group Limited and TROOPS, Inc. in respect of the transfer of share equity of SGOCO (Fujian) Electronic Co., Ltd. (incorporated by reference to Exhibit 4.10 to the Company's Form 20-F (file no. 001-35016) filed May 15, 2015)](https://www.sec.gov/Archives/edgar/data/1412095/000114420415031402/v410282_ex4-10.htm) |
| 4.5 | [Sale and Purchase Agreement dated December 28, 2015, by and between SGOCO International Limited and Richly Conqueror Limited in respect of the transfer of share equity of Boca International Limited. (incorporated by reference to Exhibit 4.11 to the Company's Form 20-F (file no. 001-35016) filed May 16, 2016)](https://www.sec.gov/Archives/edgar/data/1412095/000114420416102222/v437332_ex4-11.htm) |
| 4.6 | [Supplemental Agreement to Sale and Purchase Agreement of Boca International Limited dated February 29, 2016, by and between SGOCO International Limited and Richly Conqueror Limited. (incorporated by reference to Exhibit 4.12 to the Company's Form 20-F (file no. 001-35016) filed May 16, 2016)](https://www.sec.gov/Archives/edgar/data/1412095/000114420416102222/v437332_ex4-12.htm) |

---

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

4.7 [Convertible Note by and between the Company and JSJ Investments Inc. dated June 3, 2015. (incorporated by reference to Exhibit 4.13 to the Company's Form 20-F (file no. 001-35016) filed May 16, 2016)](https://www.sec.gov/Archives/edgar/data/1412095/000114420416102222/v437332_ex4-13.htm)

4.8 [Securities Purchase Agreement by and between the Company and LG Capital Funding, LLC dated June 10, 2015. (incorporated by reference to Exhibit 4.14 to the Company's Form 20-F (file no. 001-35016) filed May 16, 2016)](https://www.sec.gov/Archives/edgar/data/1412095/000114420416102222/v437332_ex4-14.htm)

4.9 [Securities Purchase Agreement by and between the Company and Service Trading Company, LLC dated June 11, 2015. (incorporated by reference to Exhibit 4.15 to the Company's Form 20-F (file no. 001-35016) filed May 16, 2016)](https://www.sec.gov/Archives/edgar/data/1412095/000114420416102222/v437332_ex4-15.htm)

4.10 [Securities Purchase Agreement by and between the Company and Adar Bays, LLC dated June 11, 2015. (incorporated by reference to Exhibit 4.16 to the Company's Form 20-F (file no. 001-35016) filed May 16, 2016)](https://www.sec.gov/Archives/edgar/data/1412095/000114420416102222/v437332_ex4-16.htm)

4.11 [Securities Purchase Agreement by and between the Company and Vis Vires Group, Inc. dated June 25, 2015. (incorporated by reference to Exhibit 4.17 to the Company's Form 20-F (file no. 001-35016) filed May 16, 2016)](https://www.sec.gov/Archives/edgar/data/1412095/000114420416102222/v437332_ex4-17.htm)

4.12 [Securities Purchase Agreement by and between the Company and Black Forest Capital, LLC dated July 17, 2015. (incorporated by reference to Exhibit 4.18 to the Company's Form 20-F (file no. 001-35016) filed May 16, 2016)](https://www.sec.gov/Archives/edgar/data/1412095/000114420416102222/v437332_ex4-18.htm)

4.13 [Securities Purchase Agreement by and between the Company and Crown Bridge Partners, LLC dated September 11, 2015. (incorporated by reference to Exhibit 4.19 to the Company's Form 20-F (file no. 001-35016) filed May 16, 2016)](https://www.sec.gov/Archives/edgar/data/1412095/000114420416102222/v437332_ex4-19.htm)

4.14 [Share Purchase Agreement by and between the Company and an Investor dated May 9, 2016. (incorporated by reference to Exhibit 4.20 to the Company's Form 20-F (file no. 001-35016) filed May 16, 2016)](https://www.sec.gov/Archives/edgar/data/1412095/000114420416102222/v437332_ex4-20.htm)

4.15 [Securities Purchase Agreement by and between the Company and an Investor dated March 20, 2017. (incorporated by reference to Exhibit 10.1 to the Company's Form 6-K (file no. 001-35016) filed on March 20, 2017)](https://www.sec.gov/Archives/edgar/data/1412095/000114420417015564/v462186_ex10-1.htm)

4.16 [Securities Purchase Agreement by and between the Company and Investors dated April 5, 2017. (incorporated by reference to Exhibit 10.1 to the Company's Form 6-K (file no. 001-35016) filed on April 6, 2017)](https://www.sec.gov/Archives/edgar/data/1412095/000114420417019319/v463007_ex10-1.htm)

4.17 [Sale and Purchase Agreement dated April 23, 2017, by and between SGOCO International Limited and Full Linkage Limited in respect of the transfer of share equity of Century Skyway Limited. (incorporated by reference to Exhibit 4.23 to the Company's Form 20-F (file no. 001-35016) filed May 15, 2017)](https://www.sec.gov/Archives/edgar/data/1412095/000114420417027317/v466040_ex4-23.htm)

4.18 [Securities Purchase Agreement by and between the Company and Investors dated November 13, 2017. (incorporated by reference to Exhibit 10.1 to the Company's Form 6-K (file no. 001-35016) filed on November 14, 2017)](https://www.sec.gov/Archives/edgar/data/1412095/000114420417058777/tv479484_ex10-1.htm)

4.19 [Sale and Purchase Agreement dated December 22, 2017, by and between Giant Connection Limited and Luk Lai Ching Kimmy in respect of the transfer of share equity of Giant Credit Limited. (incorporated by reference to Exhibit 4.1 to the Company's Form 6-K (file no. 001-35016) filed on December 26, 2017)](https://www.sec.gov/Archives/edgar/data/1412095/000114420417065192/tv482032_ex4-1.htm)

4.20 [Sale and Purchase Agreement dated February 22, 2018, by and between Giant Connection Limited and Vagas Lane Limited in respect of the transfer of share equity of 11 Hau Fook Street Limited. (incorporated by reference to Exhibit 4.1 to the Company's Form 6-K (file no. 001-35016) filed on February 23, 2018)](https://www.sec.gov/Archives/edgar/data/1412095/000114420418010375/tv486794_ex4-1.htm)

4.21 [Convertible Note Purchase Agreement by and between the Company and Lin So Chun dated April 18, 2018. (incorporated by reference to Exhibit 4.1 to the Company's Form 6-K (file no. 001-35016) filed April 19, 2018)](https://www.sec.gov/Archives/edgar/data/1412095/000114420418021249/tv491409_ex4-1.htm)

4.22 [Sale and Purchase Agreement dated May 21, 2018, by and between Giant Connection Limited and Leung Iris Chi Yu in respect of the transfer of share equity of Paris Sky Limited. (incorporated by reference to Exhibit 4.1 to the Company's Form 6-K (file no. 001-35016) filed on May 21, 2018)](https://www.sec.gov/Archives/edgar/data/1412095/000114420418030089/tv494696_ex4-1.htm)

4.23 [Sale and Purchase Agreement dated February 5, 2019, by and between Paris Sky Limited and Kwok Man Yee Elvis in respect of the transfer of share equity of Vision Lane Limited. (incorporated by reference to Exhibit 4.1 to the Company's Form 6-K (file no. 001-35016) filed on February 6, 2019)](https://www.sec.gov/Archives/edgar/data/1412095/000114420419005136/tv512582_ex4-1.htm)

4.24 [Sale and Purchase Agreement dated September 20, 2019, by and between Ho Pui Lung and SGOCO International (HK) Limited. (incorporated by reference to Exhibit 4.1 to the Company's Form 6-K (file no. 001-35016) filed on October 3, 2019)](https://www.sec.gov/Archives/edgar/data/1412095/000114420419047108/tv530507_ex4-1.htm)

4.25 [Sale and Purchase Agreement dated December 23, 2019, by and between TROOPS, Inc. and Victor Or in respect of the transfer of share equity of Giant Financial Services Limited. (incorporated by reference to Exhibit 4.1 to the Company's Form 6-K (file no. 001-35016) filed on December 26, 2019)](https://www.sec.gov/Archives/edgar/data/1412095/000110465919075812/tm1927396d1_ex4-1.htm)

4.26 [Securities Purchase Agreement by and between the Company and an Investor dated April 17, 2020. (incorporated by reference to Exhibit 10.1 to the Company's Form 6-K (file no. 001-35016) filed on April 20, 2020)](https://www.sec.gov/Archives/edgar/data/1412095/000110465920048695/tm2016091d1_ex10-1.htm)

4.27 [Sale and Purchase Agreement dated May 9, 2024, by and between TROOPS, Inc. and LIANTENG LIMITED in respect of the transfer of share equity of Riches Holdings Limited. (incorporated by reference to Exhibit 99.1 to the Company's Form 6 - K (file no. 001 - 35016) filed on May 10, 2024)](https://www.sec.gov/Archives/edgar/data/1412095/000110465924059571/tm2413994d1_ex99-1.htm)

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

---

| | |
|:---|:---|
| 4.28 | [Share Purchase Agreement by and between the Company and an WANG & LEE HOLDINGS, Inc. dated May 28, 2025. (incorporated by reference to Exhibit 99.1 to the Company's Form 6 - K (file no. 001 - 35016) filed on May 30, 2025)](https://www.sec.gov/Archives/edgar/data/1412095/000110465925054918/tm2516472d1_ex99-1.htm) |
| 4.29 | [Share Repurchase Agreement by and between the Company and an WANG & LEE HOLDINGS, Inc. dated July 22, 2025. (incorporated by reference to Exhibit 99.1 to the Company's Form 6 - K (file no. 001 - 35016) filed on July 25, 2025)](https://www.sec.gov/Archives/edgar/data/1412095/000110465925070558/tm2521635d1_ex99-1.htm) |
| 4.30 | [Sale and Purchase Agreement dated August 15, 2025, by and between Giant Connection Limited, a fully owned subsidiary of TROOPS, Inc. and Digital Insura, Inc. in respect of the purchase 36.75% of the share equity of BLUE POOL VENTURES LIMITED. (incorporated by reference to Exhibit 99.1 to the Company's Form 6 - K (file no. 001 - 35016) filed on August 21, 2025)](https://www.sec.gov/Archives/edgar/data/1412095/000110465925081194/tm2523968d1_ex99-1.htm) |
| 4.31 | [Sale and Purchase Agreement dated October 6, 2025, by and between Giant Connection Limited, a fully owned subsidiary of TROOPS, Inc. and CORE EXPERT INVESTMENT LIMITED in respect of the transfer of share 19.9 equity of HK Golden, Inc. (incorporated by reference to Exhibit 99.1 to the Company's Form 6 - K (file no. 001 - 35016) filed on October 10, 2025)](https://www.sec.gov/Archives/edgar/data/1412095/000110465925098712/tm2528296d1_ex99-1.htm) |
| 4.32 | [Amendment to Lock-up Agreement dated March 27, 2026, by and between TROOPS, Inc. and WANG & LEE HOLDINGS, Inc. (incorporated by reference to Exhibit 99.1 to the Company's Form 6 - K (file no. 001 - 35016) filed on March 27, 2026)](https://www.sec.gov/Archives/edgar/data/1412095/000110465926036076/tm269698d1_ex99-1.htm) |
| 8.1\* | [List of Subsidiaries](troo-20251231xex8d1.htm) |
| 11.1 | [TROOPS, Inc.'s Code of Ethics and Conduct (incorporated by reference to Exhibit 99.1 to the Company's Form F-1 (file no. 333-170674) filed December 15, 2010)](https://www.sec.gov/Archives/edgar/data/1412095/000114420410066600/v205193_ex99-1.htm) |
| 12.1\* | [Certification by Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](troo-20251231xex12d1.htm) |
| 12.2\* | [Certification by Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](troo-20251231xex12d2.htm) |
| 13.1\* | [Certification by Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](troo-20251231xex13d1.htm) |
| 15.1\* | [Consent of Audit Alliance LLP](troo-20251231xex15d1.htm)  |
| 15.2 | [Letter from Audit Alliance LLP (incorporated by reference to Exhibit 99.1 to the Company's Report on Form 6-K (file no. 001-35016) filed on January 20, 2026)](https://www.sec.gov/Archives/edgar/data/1412095/000110465926005088/tm263300d1_ex99-1.htm) |
| 15.3\* | [Consent of AssentSure PAC](troo-20251231xex15d3.htm) |
| 97.1 | [TROOPS, Inc.'s Clawback policy adopted on November 17, 2023 (incorporated by reference to Exhibit 97.1 to the Company's Form 20-F (file no. 001-35016) filed April 29, 2024)](https://www.sec.gov/Archives/edgar/data/1412095/000110465924054103/troo-20231231xex97d1.htm)  |
| 101\* | The following financial information from the annual report on Form 20-F for the fiscal year ended December 31, 2021, formatted in Inline XBRL (Extensible Business Reporting Language) and filed electronically herewith: (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Income and Comprehensive Income; (iii) the Consolidated Statements of Shareholders' Equity; (iv) the Consolidated Statements of Cash Flows; and (v) the Notes to the Consolidated Financial Statements. |
| 104 | Cover Page Interactive Data File - The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |

---

\* Filed herewith

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

#### SIGNATURE
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.

---

| | | |
|:---|:---|:---|
|  | TROOPS, Inc | TROOPS, Inc |
| Date: April 30, 2026 | By: | /s/ Damian Thurnheer |
|  | Name: | Damian Thurnheer |
|  | Title: | President and Chief Executive Officer |

---

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

**Report of Independent Registered Public Accounting Firm**

To the shareholders and board of directors of TROOPS, Inc.:

***Opinions on the Financial Statements and Internal Control over Financial Reporting***

We have audited the accompanying consolidated balance sheet of TROOPS, Inc. and its subsidiaries (collectively referred as the "Company") as of December 31, 2025, and the related consolidated statements of comprehensive loss, changes in shareholders' equity, and cash flows for year ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in *Internal Control — Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and the results of its operations and its cash flows for the year ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by COSO.

***Basis for Opinions***

The Company's management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Annual Report on Internal Control over Financial Reporting appearing under Item 15. Our responsibility is to express opinions on the Company's financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our 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 financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audit of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinions.

***Definition and Limitations of Internal Control over Financial Reporting***

A company's 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 generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

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

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

***Critical Audit Matters***

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

***Allowance for current expected credit losses ("CECL") on loan receivables, trade receivables, prepayments, and other receivables***

As described in Note 3, Note 4 and Note 20 to the financial statements, the Company adopted ASU 2016-13, *Financial Instruments — Credit Losses* (codified as ASC Topic 326), effective January 1, 2020, which requires the measurement and recognition of current expected credit losses ("CECL") for financial instruments held at amortized cost. For the year ended December 31, 2025, management's estimates resulted in a net reversal of the provision for loan losses of $0.453 million, a net CECL reversal of $0.241 million on trade receivables, and a net CECL allowance of $0.99 million on prepayments and other receivables. These estimates were determined based on the credit risk of the respective receivables, measured as the difference between each asset's carrying amount and the estimated present value of future cash flows. In developing these estimates, management considered historical credit loss experience, current economic conditions, supportable forecasts of future economic conditions, potential recoveries, customer payment history, payment terms offered in the normal course of business, and industry-specific factors that could impact the collectability of the Company's receivables as of the date of this report. The estimation process also involved the use of professionals with specialized skills and knowledge engaged by the Company.

We identified the allowance for CECL on loan receivables, trade receivables, prepayments and other receivables as a critical audit matter. This determination was made due to the significant subjective judgment and management estimation involved in evaluating the expected credit losses across these receivable categories, as well as the significance of these balances to the Company's overall financial position.

Addressing this matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the financial statements. Our audit procedures to respond to the risk of material misstatement in the allowance for CECL included: (1) obtaining an understanding of, and assessing the reasonableness of, management's methodology for developing the allowance for credit losses; (2) evaluating the competence, capabilities, and objectivity of the professionals with specialized skills engaged by the Company; (3) independently evaluating the appropriateness of the valuation models applied, including a review of valuation reports and calculation schedules prepared by management and third-party valuation specialists engaged by the Company; (4) testing, on a sample basis, the accuracy of key inputs used by management in calculating CECL, including aging reports, historical write-offs, and recoveries; (5) sending confirmations directly to debtors to verify the accuracy of the basic information and terms of loan receivables and other receivable accounts; and (6) performing credit reviews of both individual and corporate borrowers with significant loan receivable balances to assess each borrower's capacity and willingness to repay their obligations.

***Impairment of Property, Plant and Equipment***

As described in Note 7 to the financial statements, as of December 31, 2025, the carrying amount of the Company's property, plant and equipment totalled $29.41 million, representing approximately 43% of the Company's total assets. Property, plant and equipment is carried at cost less accumulated depreciation and impairment losses in accordance with ASC 360, *Property, Plant, and Equipment*.

During the year ended December 31, 2025, management identified indicators of impairment with respect to certain commercial properties and performed an impairment assessment. Management estimated the fair value of the affected assets to measure the impairment loss as the excess of the carrying amount over the fair value. As a result of this assessment, management recognized impairment losses of $13.44 million on commercial properties during the year. The fair value of the affected commercial properties was determined with the assistance of independent external valuation specialists engaged by the Company.

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

We identified the impairment assessment of commercial properties as a critical audit matter. The determination of the fair value of the commercial properties requires management to exercise significant judgment in selecting the appropriate valuation methodology. The fair value is sensitive to significant assumptions applied and a change in the assumptions may have a significant impact on the valuation.

Our audit procedures related to this matter included, among others: (1) performing site visits to observe the condition of property, plant and equipment; (2) obtaining an understanding of, and evaluating, management's methodology for assessing impairment of property, plant and equipment; (3) evaluating the competence, capabilities, and objectivity of the professionals engaged by the Company; (4) assessing the appropriateness of the valuation model by reviewing the valuation reports and supporting calculation schedules prepared by management and the third-party valuation specialists engaged by the Company; and (5) testing the completeness and accuracy of the underlying data used by the third-party valuation specialists.

***Assessment of Loss Contingency Related to a Specific Litigation Matter***

As described in Notes 12 and 19 to the financial statements, the Company is involved in a legal proceeding arising in the ordinary course of business. In accordance with ASC 450-20-25, a loss contingency is accrued when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. As of December 31, 2025, the Company recorded a provision of $13.173 million related to this litigation matter.

We identified the assessment of the loss contingency associated with this specific litigation matter as a critical audit matter due to the significant judgment required by management in evaluating the probability of loss and estimating the amount of the provision. In particular, a judgment (the "Judgment") has been issued by the High Court of the Hong Kong Special Administrative Region, Court of First Instance, in connection with Action No. HCA 938/2022. The Company has filed an appeal against the Judgment. The outcome of the appeal remains uncertain, and it is reasonably possible that the ultimate loss could differ materially from the amount accrued.

Our audit procedures related to this critical audit matter included, among others, obtaining an understanding of and evaluating management's process for assessing the loss contingency. We inquired of management regarding recent developments in the case, the status of the appeal, and their assessment of the likelihood of loss and estimated exposure. We obtained and inspected relevant court documents and other supporting materials to corroborate management's representations. In addition, we obtained and evaluated responses to legal inquiry letters from the Company's external legal counsel regarding the status of the matter and the reasonableness of management's assessment. We also evaluated the reasonableness of the recorded provision and assessed the adequacy of the related disclosures in the financial statements.

/s/ AssentSure PAC

Singapore

April 30, 2026

PCAOB ID: 6783

We have served as the Company's auditor since 2026.

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

![Graphic](troo-20251231x20f008.jpg)

**Report of Independent Registered Public Accounting Firm**

To the shareholders and board of directors of TROOPS, Inc.:

***Opinion on the Financial Statements***

We have audited the accompanying balance sheet of TROOPS, Inc. and its subsidiaries (collectively referred as the "Company") as of December 31, 2024, and the related statements of operations and comprehensive loss, changes in shareholders' equity, and cash flows for each of the two years in the period ended December 31, 2024, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Audit Alliance LLP

We served as the Company's auditor from 2022 to 2026

Singapore

April 30, 2025

PCAOB ID Number 3487

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

**TROOPS, INC. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

#### AS OF DECEMBER 31, 2025 AND 2024
**(**In thousands of U.S. dollars except share and per share data**)**

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| **ASSETS** |  |  |
| **CURRENT ASSETS** |  |  |
| Cash | $4019 | $5173 |
| Trade receivables, net | 456 | 1136 |
| Loan receivables, net  | 5897 | 12612 |
| Interest receivables | 847 | 162 |
| Other receivables, prepayments and deposits, net  | 4057 | 471 |
| Total current assets | 15276 | 19554 |
| **NON-CURRENT ASSETS** |  |  |
| Property, plant and equipment, net  | 29409 | 44913 |
| Operating lease right-of-use assets, net | 4 | 26 |
| Intangible assets, net | 1243 | 1367 |
| Long-term loan receivables, net | 1796 | 977 |
| Long-term investments, net | 8990 |  |
| Goodwill | 12348 | 12348 |
| &nbsp;&nbsp;Total non-current assets | 53790 | 59631 |
| **Total assets** | $**69066** | $**79185** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| **CURRENT LIABILITIES** |  |  |
| Amount due to a shareholder | $— | $1538 |
| Accounts payable | 1225 | 1633 |
| Other payables and accrued liabilities | 14982 | 1863 |
| Deferred Revenue |  | 87 |
| Operating lease liability, current | 4 | 22 |
| Customer deposits | 5 | 5 |
| Taxes payable | 385 | 769 |
| Total current liabilities | 16601 | 5917 |
| **LONG-TERM LIABILITIES** |  |  |
| Operating lease liability, non-current |  | 4 |
| Non-current Deferred tax liabilities | 3441 | 5015 |
| &nbsp;&nbsp;Total non-current liabilities | 3441 | 5019 |
| Total liabilities | 20042 | 10936 |
| **COMMITMENTS AND CONTINGENCIES** |  |  |
| **SHAREHOLDERS' EQUITY** |  |  |
| Preferred stock, $0.001 par value, 10,000,000 shares authorized, nil and nil issued and outstanding as of December 31, 2025 and 2024, respectively |  |  |
| Ordinary shares, $0.004 par value, 500,000,000 shares authorized, 122,160,166 and 112,510,166 issued and outstanding as of December 31, 2025 and 2024, respectively | 488 | 450 |
| Additional paid-in-capital | 165462 | 156815 |
| Accumulated deficit | (116916) | (89011) |
| Accumulated other comprehensive loss | (10) | (5) |
| Total shareholders' equity | 49024 | 68249 |
| **Total liabilities and shareholders' equity** | $**69066** | $**79185** |

---

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

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

#### TROOPS, INC. AND SUBSIDIARIES

#### CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

#### FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(In thousands of U.S. dollars except share and per share data)

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| REVENUES | $17096 | $10073 | $3569 |
| COST OF REVENUES | (15532) | (8132) | (2793) |
| GROSS PROFIT | 1564 | 1941 | 776 |
| OPERATING EXPENSES: |  |  |  |
| &nbsp;&nbsp;Selling expenses | (317) |  |  |
| &nbsp;&nbsp;General and administrative expenses | (17932) | (3956) | (2754) |
| &nbsp;&nbsp;Reversal of impairment loss (impairment loss) of trade receivables | 241 | (243) |  |
| &nbsp;&nbsp;Reversal of impairment loss (impairment loss) of loan and interest receivables | 453 | (3468) | 49 |
| &nbsp;&nbsp;(Impairment loss) reversal of impairment loss of other receivables, prepayments and deposits | (99) | (2) | 127 |
| &nbsp;&nbsp;Impairment loss of property, plant and equipment | (13444) |  |  |
| Total operating expenses | (31098) | (7669) | (2578) |
| OPERATING LOSS | (29534) | (5728) | (1802) |
| OTHER INCOME (EXPENSES): |  |  |  |
| &nbsp;&nbsp;Interest income | 62 | 10 | 14 |
| &nbsp;&nbsp;Interest expense |  |  | (62) |
| &nbsp;&nbsp;Other income (expense), net | 65 | 22 | (9) |
| &nbsp;&nbsp;Loss on change in fair value of convertible note |  | (7690) |  |
| Total other income (expenses), net | 127 | (7658) | (57) |
| LOSS BEFORE PROVISION FOR INCOME TAXES | (29407) | (13386) | (1859) |
| INCOME TAX BENEFIT (EXPENSE) | 1502 | (27) | 140 |
| NET LOSS | $(27905) | $(13413) | $(1719) |
| OTHER COMPREHENSIVE LOSS: |  |  |  |
| Foreign currency translation adjustment | (5) | (8) |  |
| COMPREHENSIVE LOSS | $(27910) | $(13421) | $(1719) |
| LOSS PER SHARE: |  |  |  |
| Basic | $(0.23) | $(0.13) | $(0.02) |
| Diluted | $(0.23) | $(0.13) | $(0.02) |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES: |  |  |  |
| Basic | 120705660 | 102240818 | 101597998 |
| Diluted | 120705660 | 102240818 | 101597998 |

---

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

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

#### TROOPS, INC. AND SUBSIDIARIES

#### CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

#### FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
**(**In thousands of U.S. dollars except share data**)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary shares** | **Ordinary shares** | | | | |
|  | **Number of**<br>**shares** | <br>**Amount** | <br>**Additional**<br>**Paid-in**<br>**Capital** | <br>**Retained**<br>**Earnings** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**(Loss) Income** | <br>**Total** |
| **BALANCE, January 1, 2023** | **101597998** | $**406** | $**135674** | $**(73879)** | $**3** | $**62204** |
| &nbsp;&nbsp;Equity component of the 2018 Notes |  |  | 94 |  |  | 94 |
| &nbsp;&nbsp;Net loss |  |  |  | (1719) |  | (1719) |
| &nbsp;&nbsp;Foreign currency translation adjustment |  |  |  |  |  |  |
| **BALANCE, December 31, 2023** | **101597998** | $**406** | $**135768** | $**(75598)** | $**3** | $**60579** |
| &nbsp;&nbsp;Shares issued on conversion of convertible note | 10912168 | 44 | 21047 |  |  | 21091 |
| &nbsp;&nbsp;Net loss |  |  |  | (13413) |  | (13413) |
| &nbsp;&nbsp;Foreign currency translation adjustment |  |  |  |  | (8) | (8) |
| **BALANCE, December 31, 2024** | **112510166** | $**450** | $**156815** | $**(89011)** | $**(5)** | $**68249** |
| &nbsp;&nbsp;Shares issued on financing | 14050000 | 56 | 12589 |  |  | 12645 |
| &nbsp;&nbsp;Repurchase of shares | (4400000) | (18) | (3942) |  |  | (3960) |
| &nbsp;&nbsp;Net loss |  |  |  | (27905) |  | (27905) |
| &nbsp;&nbsp;Foreign currency translation adjustment |  |  |  |  | (5) | (5) |
| **BALANCE, December 31, 2025** | **122160166** | $**488** | $**165462** | $**(116916)** | $**(10)** | $**49024** |

---

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

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

#### TROOPS, INC. AND SUBSIDIARIES

#### CONSOLIDATED STATEMENTS OF CASH FLOWS

#### FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(In thousands of U.S. dollars)

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |  |
| &nbsp;&nbsp;Net loss | $(27905) | $(13413) | $(1719) |
| &nbsp;&nbsp;Adjustments to reconcile net loss to cash used in operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 2294 | 2205 | 2116 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bad debt written-off | 184 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment loss of property, plant and equipment | 13444 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (1574) | (261) | (250) |
| &nbsp;&nbsp;&nbsp;&nbsp;(Reversal of impairment loss) impairment loss of trade receivables | (241) | 243 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;(Reversal of impairment loss) impairment loss of loan and interest receivables | (453) | 3468 | (49) |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment loss (reversal of impairment loss) of other receivables, prepayments and deposits | 99 | 2 | (131) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on change in fair value of convertible notes |  | 7690 |  |
| &nbsp;&nbsp;Change in operating assets and liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade receivables | 737 | (501) | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loan receivables | 6349 | 2622 | (7080) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other receivables and prepayments | (3685) | 4 | (113) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest receivables | (685) | (121) | (37) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (408) | 278 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Customer deposits |  |  | (83) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other payables and accrued liabilities | 13035 | (616) | 1018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred Revenue |  | 87 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes payable | (384) | 268 | (208) |
| Net cash provided by (used in) operating activities | 807 | 1955 | (6538) |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |  |
| &nbsp;&nbsp;Purchase of property and equipment | (117) | (251) | (221) |
| &nbsp;&nbsp;Proceeds from acquisition of subsidiaries, net of cash acquired |  | 743 |  |
| &nbsp;&nbsp;Payment on long-term investments | (8990) |  |  |
| &nbsp;&nbsp;Proceeds from refund of deposit for acquisition of a subsidiary |  |  | 5000 |
| Net cash (used in) provided by investing activities | (9107) | 492 | 4779 |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |  |
| &nbsp;&nbsp;Proceeds from short-term loan |  |  | 1282 |
| &nbsp;&nbsp;Repayment of short-term loan |  |  | (1282) |
| &nbsp;&nbsp;Proceeds from loan due to a shareholder |  | 385 | 1923 |
| &nbsp;&nbsp;Repayment of loan due to a shareholder | (1538) | (769) |  |
| &nbsp;&nbsp;Proceeds from shares issuance | 12645 |  |  |
| &nbsp;&nbsp;Payments on repurchase of shares | (3960) |  |  |
| Net cash provided by (used in) financing activities | 7147 | (384) | 1923 |
| EFFECT OF EXCHANGE RATE ON CASH | (1) | (3) | (1) |
| (DECREASE) INCREASE IN CASH | (1154) | 2060 | 163 |
| Cash and cash equivalent, beginning of year | 5173 | 3113 | 2950 |
| Cash and cash equivalent, end of year | $4019 | $5173 | $3113 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |  |  |  |
| &nbsp;&nbsp;Cash paid for interest | $— | $— | $62 |
| &nbsp;&nbsp;Cash paid for income taxes | $94 | $35 | $318 |
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES |  |  |  |
| &nbsp;&nbsp;Convertible note issued for acquisition of subsidiaries | $— | $13400 | $— |

---

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

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

#### TROOPS, INC. AND SUBSIDIARIES

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023
(In thousands of U.S. dollars, except for shares and per share data)

#### Note 1 - Organization and description of business
TROOPS, Inc. was incorporated under Cayman Islands' laws on July 18, 2007. It was previously named SGOCO Technology, Ltd. and prior to the Acquisition was named Hambrecht Asia Acquisition Corp. The Company was formed as a blank check company to acquire one or more operating businesses in the PRC through a merger, stock exchange, asset acquisition or similar business combination or control through contractual agreements. The Company completed its initial public offering ("IPO") of units consisting of one ordinary share and one warrant to purchase one ordinary share on March 12, 2008.

Pursuant to our memorandum and articles of association, we were required to enter into a business combination transaction to acquire control of a business with its primary operation in the PRC with a fair market value of at least 80% of the trust account established at the time of our IPO, or the Trust Account, (excluding certain deferred underwriting commissions) prior to March 12, 2010, or dissolve and liquidate. The approval of the business combination transaction required the approval of a majority of the outstanding shares. It was conditioned on, among other matters, not more than 30% of the outstanding shares being properly tendered for redemption under our memorandum and articles of association. Each ordinary share issued in our IPO was entitled to be redeemed if it was voted against the business combination transaction at a price equal to the amount in the Trust Account divided by the number of shares issued in the IPO outstanding at the time, estimated to be approximately $8.00 million as of February 17, 2010.

On March 12, 2010, we acquired all of the outstanding shares of Honesty Group (the "Acquisition"). After the Acquisition closed, Honesty Group became a wholly-owned subsidiary of TROOPS. Honesty Group is a limited liability company registered in Hong Kong on September 13, 2005. Honesty Group owns 100% of Guanke, Guanwei and Guancheng. Guanke, Guanwei and Guancheng are limited liability companies established under the laws of the PRC. Honesty Group and its subsidiaries represented our core manufacturing facility along with land, buildings and production equipment. Honesty Group and its subsidiaries are now independent of the Company.

On July 26, 2010, TROOPS formed SGOCO International (HK) Limited, or SGOCO International, a limited liability company registered in Hong Kong ("SGOCO International"). SGOCO International and its subsidiaries were established for the purposes of conducting LCD/LED display product development, branding, marketing and distribution.

On February 22, 2011, SGO Corporation was established in Delaware USA. On March 14, 2011, SGOCO International purchased 100% of the outstanding shares of common stock of SGO. SGO was founded to market, sell and distribute TROOPS's high quality products in the U.S. markets. SGO was not operating during 2011 and started to operate in the first quarter of 2012.

SGOCO International directly owns 100% of SGOCO (Fujian) Electronic Co., Ltd. SGOCO (Fujian) is a limited liability company established under the corporate laws of the PRC on July 28, 2011 for the purposes of conducting LCD/LED display product development, branding, marketing and distribution.

On November 15, 2011, we entered into a Sale and Purchase Agreement ("Honesty SPA") to sell our 100% ownership interest in Honesty Group to Apex, a British Virgin Islands company.

On December 26, 2011, SGOCO International established another wholly owned subsidiary, Beijing SGOCO Image Technology Co. Ltd., a limited liability company under the laws of the PRC to conduct LCD/LED monitor, TV product-related and application-specific product design, brand development and distribution.

On November 14, 2013, SGOCO International established a wholly owned subsidiary, SGOCO (Shenzhen) Technology Co., Ltd., a limited liability company under the laws of the PRC for the purpose of conducting LCD/LED monitor, TV product-related and application-specific product design, brand development and distribution.

On December 15, 2017, TROOPS formed Giant Connection Limited, a limited liability company registered in Public of Seychelles.

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

On December 24, 2014, we entered into a Sale and Purchase Agreement ("SPA") to sell our 100% equity ownership interest in SGOCO (Fujian) to Apex.

On December 28, 2015, SGOCO International entered into a Share Sale and Purchase Agreement for the Sale and Purchase of the entire issued share capital of Boca International Limited with Richly Conqueror Limited, a company incorporated under the laws of the British Virgin Islands. On June 7, 2018 and August 31, 2020, the Group disposed 49% and 51% equity interest of Boca International Limited to Leung Iris Chi Yu and Wong Yiu Tong, respectively.

On April 23, 2017, SGOGO International entered into a Share Sale and Purchase Agreement with Full Linkage Limited pursuant to which SGOCO International acquired all of the issued and outstanding capital stock of CSL. On June 7, 2018 and September 20, 2019, the Group disposed 49% and 51% equity interest of CSL to Leung Iris Chi Yu and Ho Pui Lung, respectively.

On December 15, 2017, TROOPS formed Giant Connection Limited, a limited liability company registered in Republic of Seychelles.

On December 22, 2017, Giant Connection Limited, a wholly-owned subsidiary of TROOPS, completed the acquisition of Giant Credit Limited. The principal activity of Giant Credit Limited is money lending in Hong Kong.

On March 8, 2018, Giant Connection Limited, a wholly-owned subsidiary of TROOPS, closed a Share Exchange Agreement with Vagas Lane Limited for the purchase and sale of 11 Hau Fook Street Limited. 11 Hau Fook Street Limited is an investment holding company which owns two properties located at No. 11 Hau Fook Street, Tsim Sha Tsui, Kowloon, Hong Kong.

On June 7, 2018, Giant Connection Limited, a wholly-owned subsidiary of TROOPS, completed the acquisition of Paris Sky Limited. Paris Sky Limited is an investment holding company which, through its wholly owned subsidiary, owns a property located at No. 8 Fui Yiu Kok Street, Tsuen Wan, New Territories, Hong Kong.

On March 12, 2019, the Company's wholly-owned subsidiary, Paris Sky Limited closed a Share Exchange Agreement for the entire issued share capital of Vision Lane Limited. Vision Lane is a private company incorporated in the British Virgin Islands, and engages in property investment and money lending services in Hong Kong.

On December 23, 2019, the Company entered into a Share Exchange Agreement with Victor Or for the purchase and sale of Giant Financial Services Limited. Giant Financial Services Limited is a private company incorporated in Samoa and provides an online financial marketplace connecting financial institutions and users worldwide via its unique mobile application which features state-of-the-art functions to boost financial accessibility to financial and insurance products and services.

On September 28, 2020, the Company's wholly-owned subsidiary, Giant Financial Services Limited closed a Share Exchange Agreement for the entire issued share capital of Apiguru Pty Ltd. Apiguru Pty Ltd. is a technology consulting company specialising in Application Programming Interface (API) strategy and implementation enabling state-of-the-art market fit hypothesis that drives businesses forward.

On May 9, 2024, TROOPS entered into a Sale and Purchase Agreement with LIANTENG LIMITED, for the purchase of the entire issued and outstanding share capital of Riches Holdings Limited, a company incorporated under the laws of Cayman Islands. Riches Holdings Limited consists of a group of subsidiaries specialized in provision of advisory, consultancy and referral services for various products and services through its unique mobile application (FinNet).

On July 31, 2024, TROOPS formed FOR THE FUTURE, Inc., a limited liability company registered in Republic of Seychelles. FOR THE FUTURE, Inc. offers a unique online platform and issues its own cryptocurrency, i.e. FTF token, enabling users to bid for products and services with FTF tokens through a user - friendly mobile application (FTF).

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

#### Note 2 - Summary of significant accounting policies

#### Basis of presentation and principle of consolidation
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and include the financial statements of the Company and all its majority-owned subsidiaries that require consolidation. Intercompany transactions and balances have been eliminated in the consolidation. The following entities were consolidated as of December 31, 2025:

---

| | | |
|:---|:---|:---|
|  | **Place incorporated** | **Ownership percentage** |
| TROOPS, Inc. | Cayman Islands | Parent Company |
| 11 Hau Fook Street Limited | Hong Kong | 100% |
| Apiguru Pty Ltd. | Australia | 100% |
| Beijing SGOCO Image Technology Co., Ltd. | Beijing, China | 100% |
| First Asia Finance Limited | Hong Kong | 100% |
| FOR THE FUTURE, Inc. | Republic of Seychelles | 100% |
| Giant Credit Limited | Hong Kong | 100% |
| Giant Connection Limited | Republic of Seychelles | 100% |
| Giant Financial Services Limited | Samoa | 100% |
| Paris Sky Limited | Marshall Islands | 100% |
| Riches Advisory Limited | Hong Kong | 100% |
| Riches Elite Technology (Shenzhen) Co.,Ltd | Shenzhen, China | 100% |
| Riches Finance Group Limited | Hong Kong | 100% |
| Riches Holdings Limited | Cayman Islands | 100% |
| Riches Property Limited | Hong Kong | 100% |
| SGOCO International (HK) Limited | Hong Kong | 100% |
| Suns Tower Limited (Formerly known as "First Asia Tower Limited") | Hong Kong | 100% |
| Vision Lane Limited | British Virgin Islands | 100% |

---

#### Use of estimates
Preparing consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management's estimates and assumptions include, but are not limited to, revenue recognition, the collectability of its receivables, the fair value and accounting treatment of certain financial instruments, fair value of assets and liabilities acquired in business combination, useful life of intangible assets, assessment of impairment of long-lived assets, intangible assets and goodwill, provisions for litigation and other contingencies, deferred tax liability and deferred tax valuation allowance. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates.

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

#### Business combinations
The Company accounts for its business combinations using the acquisition method of accounting in accordance with Accounting Standards Codification ("ASC") 805 "Business Combinations." The cost of an acquisition is measured as the aggregate of the acquisition date fair values of the assets transferred and liabilities incurred by the Company to the sellers and equity instruments issued. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total costs of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive income. During the measurement period, which can be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of comprehensive income.

In a business combination achieved in stages, the Company re-measures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the re-measurement gain or loss, if any, is recognized in the consolidated statements of comprehensive income.

When there is a change in ownership interests that result in a loss of control of a subsidiary, the Company deconsolidates the subsidiary from the date control is lost. Any retained non-controlling investment in the former subsidiary is measured at fair value and is included in the calculation of the gain or loss upon deconsolidation of the subsidiary.

For the Company's majority-owned subsidiaries, a non-controlling interest is recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Group. "Net income (loss)" on the consolidated income statements includes the "net loss attributable to non-controlling interests". The cumulative results of operations attributable to non-controlling interests are also recorded as non-controlling interests in the Company's consolidated balance sheets.

#### Property, plant and equipment, net
Property, plant and equipment, net are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Expenditures for maintenance and repairs are charged to earnings as incurred. Major additions are capitalized. When assets are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property, plant and equipment is provided using the straight-line method for substantially all assets with estimated lives as follows:

---

| | |
|:---|:---|
| Leasehold land and buildings  | Leasehold land and buildings are depreciated over the shorter of the unexpired term of lease and their estimated useful lives, being no more than 50 years |
| Machinery and equipment | 4-10 years |
| Leasehold improvements | 5 years |
| Vehicles and office equipment | 4-5 years |

---

Construction in progress represents capital expenditures for direct costs of construction or acquisition and the interest expenses directly related to the construction. Capitalization of these costs ceases and the construction in progress is transferred to the appropriate category of property, plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. Construction in progress is not depreciated.

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

#### Intangible assets
Intangible assets acquired through business acquisitions are recognized as assets separate from goodwill if they satisfy either the "contractual-legal" or "separability" criterion. Purchased intangible assets and intangible assets arising from the acquisitions of subsidiaries are recognized and measured at fair value upon acquisition. Separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method as follows:

---

| | |
|:---|:---|
| Trademarks of GFS | 10 years |
| Service Contracts of GFS | 1 year |
| Non-competition agreements of Apiguru | 3 years |
| Customer relationship of Riches Holdings | 10 years |

---

Separately identifiable intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of any impairment loss for identifiable intangible assets is based on the amount by which the carrying amount of the assets exceeds the fair value of the assets.

The Company also holds intangible assets in the form of Hong Kong private vehicle license plates. These plates were acquired through the Transport Department's auction process and are recognized at cost. They are classified as indefinite-lived intangible assets as they can be transferred to another vehicle owned by the Company indefinitely, subject to annual registration fees. As of December 31, 2025, the carrying amount of these license plates was US$37. The Company performs annual impairment tests by comparing the carrying amount of these assets to their estimated fair value based on recent auction prices for similar vanity plates in Hong Kong.

#### Goodwill
Goodwill represents the excess of the purchase consideration over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed of the acquired entity as a result of the Company's acquisitions of interests in its subsidiaries. Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. Based on the qualitative assessment, if it is more likely than not that the fair value of each reporting unit is less than the carrying amount, the quantitative impairment test is performed.

The Company annually, or more frequently if the Company believes indicators of impairment exist, reviews the carrying value of goodwill to determine whether impairment may exist.

In performing the two-step quantitative impairment test, the first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit's goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for the purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets, liabilities and goodwill to reporting units, and determining the fair value of each reporting unit.

Goodwill arises from the following reporting units: the financial technology solutions, services and the money lending services, applications, technology & services, consultancy services for insurance products and advisory and referral services. The Company performs its annual impairment tests on December 31 of each year.

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

#### Impairment of long-lived assets other than goodwill
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

#### Restricted cash
The Company adopted Accounting Standards Update ("ASU") No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, ("ASU 2016-18"), effective January 1, 2018 using the retrospective transition method and included all restricted cash with cash and cash equivalent when reconciling beginning-of-period and end-of-period total amounts presented in the consolidated statements of cash flows. The Company has none of restricted cash as of December 31, 2025 and 2024.

#### Trade receivables
The trade receivables are without customer collateral and interest is not accrued on past due accounts. The Company estimates the allowance for doubtful trade receivables based on historical collection activity, current business environment and forecasts of future macroeconomic conditions that may affect the customers' ability of payment according to ASC 326. The trade receivables was segmented into groups based on certain credit risk characteristics, and the Company determined expected loss rates for each group based on historical loss experience adjusted for judgments about the effects of relevant observable data including default rates, lifetime for debt recovery, current and future economic conditions. Net allowance of $3 and $243 was required as of December 31, 2025 and 2024. During the years ended December 31, 2025 and 2024, the Company had written-off uncollectible accounts receivable of $184 and nil, respectively. Management believes that the remaining accounts receivable are collectible.

#### Other receivables, prepayments and deposits
Other receivables and prepayments primarily include rental deposit, utilities deposit, prepaid employees' compensation. Management reviews the composition of other receivables and prepayment and determines if an allowance for doubtful accounts is needed. A provision for doubtful accounts is made when collection of the full amount is no longer probable. As of December 31, 2025 and 2024 there was $109 and $10 allowance for uncollectible other receivables, prepayments and deposits, respectively. Management believes that the remaining other receivables and prepayments are collectible.

#### Loan receivables, net
Loan receivables primarily represents loan amounts due from customers. Loan receivables are recorded at unpaid principal balances net of provision that reflects the Company's best estimate of the amounts that will not be collected. Management anticipates no significant early settlement of loan receivables as of reporting date. As of December 31, 2025 and 2024, there was $5,038 and $5,491 allowance for uncollectible loan receivables, respectively. Management believes that the remaining loan receivables are collectible.

#### Provision for loan losses
The provision for loan losses is increased by charges to income and decreased by charge offs (net of recoveries). Recoveries represent subsequent collection of amounts previously charged-off. The increase in provision for loan losses is the netting effect of "reversal" and "provision" for both business and personal loans. If the ending balance of the provision for loan losses after any charge offs (net of recoveries) is less than the beginning balance, it will be recorded as a "reversal"; if it is larger, it will be recorded as a "provision" in the provision for loan loss. The netting amount of the "reversal" and the "provision" is presented in the statements of comprehensive loss.

The provision consists of specific and general components. The specific component consists of the amount of impairment related to loans that have been evaluated on an individual basis, and the general component consists of the amount of impairment related to loans that have been evaluated on a collective basis. Loans are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts when due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings ("TDRs").

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

The Company recognizes a charge-off when management determines that full repayment of a loan is not probable. The primary factor in making that determination is the potential outcome of a lawsuit against the delinquent debtor. The Company will recognize a charge-off when the Company loses contact with the delinquent borrower for more than one year or when the court rules against the Company to seize the collateral asset of the delinquent debt from either the guarantor or borrower. In addition, when the recoverability of the delinquent debt is highly unlikely, the senior management team will go through a stringent procedure to approve a charge-off. Management estimates the provision balance required using past loan loss experience, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the provision may be made for specific loans, but the entire provision is available for any loan that, in management's judgment, should be charged-off.

The provision for loan losses is maintained at a level believed to be reasonable by management to absorb probable losses as of each balance sheet date. The provision is based on factors such as an assessment of individual loans and actual loss. The Company evaluates its provision for loan losses on a quarterly basis or more often as necessary.

#### Interest receivables
Interest receivables are accrued and credited to income as earned but not received. The Company determines a loan past due status by the number of days that have elapsed since a borrower has failed to make a contractual interest or principal payment. Accrual of interest is generally discontinued when reasonable doubt exists as to the full, timely collection of interest or principal. Additionally, any previously accrued but uncollected interest is reversed. Subsequent recognition of income occurs only to the extent payment is received, subject to management's assessment of the collectability of the remaining interest and principal. Loans are generally restored to an accrual status when it is no longer delinquent and collectability of interest and principal is no longer in doubt and past due interest is recognized at that time.

**Accounting Policy – Leases (Lessor)**

The Company accounts for leases in accordance with ASC Topic 842, Leases. For arrangements in which the Company is the lessor, the Company determines whether each arrangement meets the definition of a lease and, at lease inception, classifies each lease as an operating lease.

Under operating leases, the Company recognizes lease income on a straight-line basis over the lease term unless another systematic and rational basis is more representative of the time pattern in which the leased property is physically employed. Initial direct costs incurred in negotiating and arranging the leases are deferred and amortized over the lease term in proportion to the recognition of lease income. Variable lease payments that do not depend on an index or rate are recognized in income when the triggering event occurs.

The Company reassesses lease classification and remeasures lease-related assets and liabilities upon certain events specified in ASC 842, such as lease modifications or significant changes in facts and circumstances.

#### Comprehensive income
U.S. GAAP generally requires that recognized revenue, expenses, gains and losses be included in net income or loss. Although certain changes in assets and liabilities are reported as separate components of the equity section of the consolidated balance sheet, such items, along with net income, are components of comprehensive income or loss. The components of other comprehensive income or loss consist of foreign currency translation adjustments net of realization of foreign currency translation gain relating to disposal of subsidiaries.

**Related parties**

We follow ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party balances and transactions. The details of related party balances and transactions during the years ended December 31, 2025 and 2024 and balances as of December 31, 2025 and 2024 are set out in Note 15.

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

**Fair value of financial instruments**

ASC 820 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 specifies a hierarchy of valuation techniques, which is based on whether the inputs used in the valuation technique are observable or unobservable. The hierarchy is as follows:

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

&nbsp;&nbsp;&nbsp;&nbsp;● Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data.

&nbsp;&nbsp;&nbsp;&nbsp;● Level 3 – inputs to the valuation methodology are unobservable.

Unless otherwise disclosed, the fair values of the Company's other financial instruments including cash, trade receivables, loan and interest receivables, other receivables, prepayments and deposits amounts, amount due to a shareholder, accounts payable, Other payables and accrued liabilities, deferred revenue, customer deposits and taxes payable are approximated to their recorded values due to their short-term maturities.

The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | **Fair Value** | **Fair Value** | **Fair Value** |
|  | | **Measurement at** | **Measurement at** | **Measurement at** |
|  | | **December 31,**  | **December 31,**  | **December 31,**  |
|  | <br>**Carrying Value at**<br>**December 31, 2024** | **2024** | **2024** | **2024** |
|  |  | **Level 1** | **Level 2** | **Level 3** |
| Convertible notes measured at fair value | $— | $— | $— | $— |

---

A summary of changes in financial liabilities for the year ended December 31, 2024 was as follows:

---

| | |
|:---|:---|
| Balance at January 1, 2024 | $— |
| Issuance of convertible notes | 13400 |
| Fair value losses on issue date and conversion dates | 7690 |
| Conversion of convertible notes | (21090) |
| Balance at December 31, 2024 |  |

---

Fair value of the convertible notes is determined using the binomial model using the following assumptions at inception date:

---

| | |
|:---|:---|
|  | **LIANTENG** |
| Convertible note holder | **LIMITED** |
| Appraisal Date (Inception Date) | May 31, 2024 |
| Risk-free Rate | 4.51% |
| Applicable Closing Stock Price | $1.56  |
| Conversion Price | $0.8. to $1.92 |
| Volatility | 89.90% |
| Dividend Yield | 0% |
| Credit Spread | 8.60% |

---

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

#### Revenue recognition
The Company adopted Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASC 606") from January 1, 2018, using the modified retrospective method. Revenues for the years ended December 31, 2025, and 2024 and 2023 were presented under ASC 606, and revenues for the year ended December 31, 2017 was not adjusted and continue to be presented under ASC Topic 605, Revenue Recognition. There was no impact on the Company's opening balance of retained earnings as of January 1, 2018. Pursuant to ASC606-10-15-2, the interest income generated by the Company is scoped out of ASC606.

In accordance with ASC 606, revenues are recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. In determining when and how much revenue is recognized from contracts with customers, the Company performs the following five-step analysis: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; (5) recognize revenue when (or as) the entity satisfies a performance obligation.

Revenues are recognized when control of the promised goods or services is transferred to the customers, which may occur at a point in time or over time depending on the terms and conditions of the agreement, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

#### Applications, technology & services
The Company provides SaaS and app development service to its customers to deploy the Company's online platform, which may occur over time depending on the terms and conditions of the agreement, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Service income from project-based consulting services is recognized based on the output methods, including surveys of performance completed to date or milestones reached of each phase only when the Company has an enforceable right to payment for performance completed to date. Maintenance and support type service income is recognized separately from the main contract since such service was not treated as performance obligation of the contract. Revenue on application membership services is recognized over time by reference to the whole contracted membership period.

#### Interest on loan receivables
Interest on loan receivables is accrued monthly in accordance with their contractual terms and recorded in accrued interest receivables. The Company does not charge prepayment penalties. Additionally, any previously accrued but uncollected interest is reversed and accrual is discontinued, when reasonable doubt exists as to the full, timely collection of interest or principal. Interest income on impaired loan receivables is recorded when cash payment for interest is received by the Company.

***Property lease and management***

Minimum contractual rental income related to property leases are recognized on a straight-line basis over the terms of the respective leases. Straight-line rental revenue commences when the tenant assumes control of the leased premises. In accordance with the Company's standard lease terms, rental payments are generally due on a monthly basis. Tenant recovery revenue includes payments from tenants as reimbursements for management fees and utilities, etc., which are recognized when the related expenses are incurred. Rental from office lease and tenant recovery revenue together is recorded as "Property lease and management".

***Consultancy services for insurance products***

The Group provides consultancy services primarily in relation to insurance referral to insurance brokers. Revenue is recognized at a point in time when the cool-off period ends, and the consultancy and referral services are considered complete.

***Advisory and referral services***

The Group provides services in relation to the application of migration, education and visa renewal to its customers. Revenue is recognized at a point in time when relevant applications are approved.

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

Below is the summary presenting the Company's revenues disaggregated by products and services and timing of revenue recognition:

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,**  | **Year ended December 31,**  | **Year ended December 31,**  |
| <br>**Revenue by recognition** | **2025** | **2024** | **2023** |
| Revenue by recognition over time | $3314 | $4431 | $3569 |
| Revenue by recognition at a point in time | 13782 | 5642 |  |
|  | $17096 | 10073 | 3569 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,**  | **Year ended December 31,**  | **Year ended December 31,**  |
| <br>**Revenue by major product line** | **2025** | **2024** | **2023** |
| Interest on loans | $2167 | $3308 | $2313 |
| Property lease and management | 1384 | 1780 | 1069 |
| Applications, technology & services | 549 | 151 | 187 |
| Consultancy services for insurance products | 12859 | 4478 |  |
| Advisory and referral services | 137 | 356 |  |
|  | $17096 | 10073 | 3569 |

---

#### Contract Balances
Timing of revenue recognition may differ from the timing of invoicing to customers. Trade receivables represents amounts invoiced, and revenue recognized prior to invoicing when the Group has satisfied its performance obligations and has the unconditional right to consideration.

Deferred revenue relates to unsatisfied performance obligations at the end of each reporting period and consists of cash payment received in advance from customer. The amount recognized that was included in the balance at the beginning of the year was $87 and nil for the years ended December 31, 2025 and 2024.

Advances received from customers related to unsatisfied performance obligations are recorded as contract liabilities (advance from customers), which will be recognized as revenues upon the satisfaction of performance obligations through the transfer of related promised goods and services to customers.

The Company's contract liabilities consist of rental receipt in advance related to rent paid in advance for leasing office, receipt in advance related to advisory and referral services, and application membership fee. Below is the summary presenting the movement of the Company's contract liabilities for the years ended December 31, 2025, 2024 and 2023:

---

| | |
|:---|:---|
|  | **Contract**<br>**liabilities** |
| Balance as of January 1, 2023 | $10 |
| Revenue recognized from beginning contract liability balance | (10) |
| Advances received from customers related to unsatisfied performance obligations | 13 |
| Balance as of December 31, 2023 | $13 |
| Revenue recognized from beginning contract liability balance | (13) |
| Advances received from customers related to unsatisfied performance obligations | 148 |
| Balance as of December 31, 2024 | $148 |
| Revenue recognized from beginning contract liability balance | (148) |
| Advances received from customers related to unsatisfied performance obligations | 522 |
| Balance as of December 31, 2025 | $522 |

---

The contract liabilities were grouped into other payables and accrued liabilities (note 12).

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

#### Allocation to Remaining Performance Obligations
The Company has elected to apply the practical expedient in paragraph ASC Topic 606-10-50-14 and did not disclose the information related to transaction price allocated to the performance obligations that are unsatisfied or partially unsatisfied as of December 31, 2025, because either the performance obligation of the Company's contracts with customers has an original expected duration of one year or less or the Company has a right to consideration from a borrower or a customer in an amount that corresponds directly with the value to the borrower or the customer of the Company's performance completed to date, therefore the Company may recognize revenue in the amount to which the Company has a right to invoice or collect.

**Long-term investment, net**

The Company holds a 19.9% equity interest in HK Golden, Inc.. Although the Company does not have a controlling interest or significant influence over the investee, the Company has concluded that the equity securities do not have readily determinable fair values. Accordingly, these investments are accounted for under the measurement alternative prescribed by Accounting Standards Codification (ASC) 321, Investments—Equity Securities.

Under this guidance, the investment is initially recorded at cost, and subsequently measured at cost minus impairment, plus or minus observable price changes from orderly transactions for identical or similar investments of the same issuer. This measurement approach is consistent with the cost minus impairment (CMI) model. The Company evaluates the investment for impairment upon the occurrence of events or changes in circumstances that indicate the carrying amount of the investment may not be recoverable. An impairment loss is recognized in earnings when the fair value of the investment is below its carrying amount and the decline is determined to be other-than-temporary. Dividends received from the investment are recognized in income when declared.

The Company reassesses the appropriateness of the measurement alternative at each reporting date. Factors considered include changes in ownership percentage, the availability of fair value information, and the Company's ongoing involvement with the investee. If the equity securities become publicly traded or otherwise have readily determinable fair values, the Company will remeasure the investment at fair value in accordance with ASC 321.

#### Income taxes
The Company accounts for income taxes in accordance FASB ASC Section 740. The Company is subject to the tax laws of the PRC, Hong Kong (a special administrative region of PRC) and Australia. The charge for taxation is based on actual results for the year as adjusted for items that are non-assessable or disallowed; and it is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. The Company is not currently subject to tax in the Cayman Islands or the British Virgin Islands.

Deferred taxes are accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the Company's unaudited condensed consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit of loss. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that future taxable income can be utilized with prior net operating loss carry forwards. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized, or the liability is settled. Deferred tax is charged or credited in the statement of operations, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.

An uncertain tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has a greater than 50% likelihood of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. Penalties and interest incurred related to uncertain tax positions are classified in income tax expense in the period incurred. During the years ended December 31, 2025, 2024 and 2023, the Company has not incurred any interest related to income taxes. Our Australia entities did not have tax liability as of December 31, 2025. U.S. GAAP also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition.

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

Tax returns filed for the years ended December 31, 2020 to 2025 and December 31, 2023 to 2025 in Hong Kong and PRC are subject to examination by the applicable tax authorities.

#### Financial guarantee
A provision for possible losses to be absorbed by the Company for financial guarantees it provides is recorded as an accrued liability when the guarantees are made and recorded as "Allowance on guarantee" in the consolidated balance sheets. This accrued liability represents probable losses and is increased or decreased by accruing a "Allowance (reversal of allowance) on financial guarantee" throughout the terms of the guarantees as necessary when additional relevant information becomes available.

The methodology used to estimate the liability for possible guarantee losses considers the guarantee contract amounts and a variety of factors, which include, depending on the counterparty, the latest financial position and performance of the borrowers, actual defaults, estimated future defaults, historical loss experience, estimated value of collateral or guarantees the customers or third parties offered, and other economic conditions, such as economic trends in the area and the country. The estimates are based upon information available at the time the estimates are made. It is possible that prior experience and default history of the borrowers are not indicative of future losses on guarantees made. Any increase or decrease in the provision would affect the Company's consolidated income statements in future years.

#### Foreign currency translation
The reporting and functional currency of the Company is the U.S. Dollar. The functional currencies of its Hong Kong subsidiaries are the Hong Kong Dollar. The functional currency of its PRC subsidiaries is the RMB. The functional currencies of its Australia subsidiaries are the Australian Dollar ("AUD"). Results of operations and cash flow are translated at average exchange rates during the period, and assets and liabilities are translated at the exchange rate at the end of the period. Capital accounts are translated at their historical exchange rates when the capital transaction occurred. Translation adjustments resulting from this process are included in accumulated other comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred.

The balance sheet amounts with the exception of equity were translated using RMB7.03 and RMB7.19 to $1.00 at December 31, 2025 and 2024, respectively. The equity accounts were stated at their historical exchange rates. The average translation rates applied to the income and cash flow statement amounts for the years ended December 31, 2025, 2024 and 2023 were RMB7.10, RMB7.12, and RMB6.56 to $1.00, respectively.

The balance sheet amounts with the exception of equity were translated using AUD0.67 and AUD0.62 to $1.00 as of December 31, 2025 and 2024, respectively. The equity accounts were stated at their historical exchange rates. The average translation rate applied to the income statement amounts for the years ended December 31, 2025, 2024 and 2023 were AUD0.65, AUD0.66 and AUD0.66 to $1.00, respectively.

**Recently issued accounting pronouncements**

In November, 2024, the FASB issued ASU No. 2024-03, Income Statement (Topic 220)- Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40). ASU No. 2024-03 requires publicly-traded business entities to disclose specified information about the components of certain costs and expenses that are currently disclosed in the financial statements. The guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Group is currently evaluating the impact of the above new accounting pronouncement or guidance on the consolidated financial statements.

In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. ASU No. 2025-05 provides a practical expedient that permits an entity to assume that current economic conditions as of the balance sheet date do not change for the remaining life of the asset. Further, the ASU allows an entity, other than a public business entity, that elects the practical expedient to make an accounting policy election to consider collection activity after the balance sheet date when estimating expected credit losses. ASU 2025-05 is effective for the Company for annual periods beginning after December 15, 2025. The ASU is applied prospectively and early adoption is permitted. The Group does not expect the adoption of ASU 2025-05 to have a material effect on its consolidated financial statements.

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

In December 2025, the FASB issued ASU No. 2025-10, Government Grants (Topic 832). ASU No. 2025-10 establishes guidance on the recognition, measurement, and presentation of government grants received by business entities. The guidance is effective for public business entities in annual periods beginning after December 15, 2028 (including interim periods within) and one year later for all other entities, with early adoption permitted. The Group is currently evaluating the impact of adopting this standard on its consolidated financial statements. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows or disclosures.

**Recently adopted accounting standards**

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments require that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition. The other segment items category is the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss. The amendments improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities. The amendments in ASU 2023-07 are effective for years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, adopted retrospectively. The Company adopted this ASU on a prospective basis effective January 1, 2023. Refer to Note 17 for the inclusion of new disclosures required.

On December 14, 2023, the FASB issued a final standard on improvements to income tax disclosures. The standard requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. ASU 2023-09, Improvements to Income Tax Disclosures, applies to all entities subject to income taxes. For public business entities (PBEs), the new requirements will be effective for annual periods beginning after December 15, 2024. For entities other than public business entities (non-PBEs), the requirements will be effective for annual periods beginning after December 15, 2025. The company adopted this ASU on a prospective basis effective January 1, 2025. Refer to Note 14 for the inclusion of new disclosures required.

#### Note 3 - Trade receivables, net
Trade receivables, net as of December 31, 2025 and 2024 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,**  | **December 31,**  |
|  | **2025** | **2024** |
| Trade receivables | $459 | $1379 |
| Less: allowance for expected credit losses | (3) | (243) |
| Total trade receivables, net | $456 | $1136 |

---

As of December 31, 2025, 2024 and 2023, there was $3, $243 and nil allowance for uncollectible trade receivables, respectively. During the years ended December 31, 2025, 2024 and 2023, the Company had written-off uncollectible accounts receivable of $184, nil and nil, respectively.

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

Movement of the provision for trade receivables is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2025** | **2024** |
| Balance as of January 1 | $243 | $— |
| Provisions for doubtful accounts | 3 | 243 |
| Reversal for doubtful accounts | (60) |  |
| Write offs | (184) |  |
| Changes due to foreign exchange | 1 |  |
| Balance as of December 31 | 3 | 243 |

---

#### Note 4 - Loan receivables, net
The annualized interest rates on loans issued ranged between 6% and 48% for the year ended December 31, 2025 and 2024.

Loan receivables consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,**  | **December 31,**  |
|  | **2025** | **2024** |
| Loan receivables, gross |  |  |
| &nbsp;&nbsp;Personal loans | $6300 | $6988 |
| &nbsp;&nbsp;Corporate loans | 6431 | 12092 |
| Subtotal | 12731 | 19080 |
| Provision for loan losses (Note 20) | (5038) | (5491) |
| Total loan receivables, net | $7693 | $13589 |
| Less: classified as non-current loan receivables, net | (1796) | (977) |
| Total current loan receivables, net | $5897 | $12612 |

---

The following is a maturity analysis of the Company's loan receivables, net as of December 31, 2025:

---

| | |
|:---|:---|
| **For the year ending December 31,**  | **Amount** |
| 2026 | $5897 |
| 2027 | 1476 |
| 2028 and thereafter | 320 |
| Total loans | 7693 |

---

The Company originates loans to customers located primarily in Hong Kong.

As of December 31, 2025 and 2024, the Company had 17 and 14 personal loan customers, and 4 and 11 corporate loan customers, respectively. Provision for loan losses is estimated on an annually basis based on an assessment of specific evidence indicating doubtful collection, historical experience, loan balance aging and prevailing economic conditions.

For the year ended December 31, 2025, a reversal of provision of $453 was recognized to the consolidated statement of comprehensive loss. For the year ended December 31, 2024 and 2023, a provision of $3,468 and a reversal of provision of $49 were recognized to the consolidated statement of comprehensive loss.

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

The following table represents the aging of loan receivables, net as of December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **December 31,**  | **December 31,**  |
|  | **2025** | **2024** |
| 1-89 days past due | $1684 | $871 |
| 90-179 days past due | 1158 |  |
| 180-365 days past due |  |  |
| Over 1 year past due \* | 723 | 27 |
| Total past due | $3565 | $898 |
| Loans without overdue  | 4128 | 12691 |
| Total loans, net | $7693 | $13589 |

---

\* As of December 31, 2025 and 2024, the Company had loan receivables of $5,731 and $1,565 as aging over 1 year past due. A provision of $5,008 and $1,538 were charged to aging over 1 year past due for the year ended December 31, 2025 and 2024.

The following table summarizes the Company's loan portfolio by categories as of December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **December 31,**  | **December 31,**  |
|  | **2025** | **2024** |
| Installment loan to individual | $2617 | $207 |
| Real estate backed loan | 2680 | 2616 |
| Commercial loan | 896 | 9267 |
| Securities backed loan | 1500 | 1499 |
| Total loans, net | $7693 | $13589 |

---

Installment loan to individual

A installment loan to individual is an unsecured loan offered to individual borrower by assessing his/her ability to repay his/her loan and interest. The factors used to determine the borrower's ability to repay include the borrower's current income, current assets, credit history and employment status.

Real estate backed loan

A real estate backed loan is a loan in which the borrower puts up a real estate under his/her ownership, possession or control, as collateral for the loan. The loan is secured against the collateral and the Company does not take physical possession of the collateral at the time the loan is made. The Company will verify ownership of the collateral and then register the collateral with the appropriate government entities to complete the secured transaction. In the event that the borrower defaults, the Company can then take possession of the collateral and sell it to recover the outstanding balance owed. If the sale proceeds of the collateral is not sufficient to pay off the loan in full, the Company will file a lawsuit against the borrower and seek judgment for the remaining balance.

Securities backed loan

A securities backed loan is a loan in which the borrower puts up securities of public listed companies under his/her ownership as collateral for the loan. The loan is secured against the collateral and the Company obtains physical possession of the original share certificates since the loan is made. The Company verifies ownership of the securities by examining proof of ownership. Both the borrower and the Company have to sign a share pledge agreement to complete the secured transaction. In the event that the borrower defaults, the Company can then take possession and sell securities to recover the outstanding balance owed. If the sale proceeds of securities is not sufficient to pay off the loan in full, the Company will file a lawsuit against the borrower and seek judgment for the remaining balance.

Commercial loan

A commercial loan is an unsecured loan offered to a corporation by assessing their capacities to make timely principal and interest payments. The factors used to determine the corporation's ability to repay include state of economy, recent industry performance and financial conditions of the corporation as well as the owners of the corporation.

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

#### Note 5 - Other receivables, prepayments and deposits
Other receivables, prepayments and deposits as of December 31, 2025 and 2024 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,**  | **December 31,**  |
|  | **2025** | **2024** |
| Utility deposits | $1861 | $19 |
| Other receivables | 94 | 225 |
| Other prepayments | 626 | 227 |
| Deposit - acquisiton of an associate \* | 1476 |  |
| Other receivables, prepayments and deposits, net | $4057 | $471 |

---

\* On August 15, 2025, the Company's subsidiary acquired a 49% equity interest in Blue Pool Ventures Limited ("Blue Pool") for $1,476. On December 31, 2025, in order to facilitate regulatory approvals, the Company entered into a repurchase agreement with the seller. The transaction was accounted for as a financing arrangement. The Company received a promissory note for the full consideration of $1,476, which is recorded within Other Receivables on the Consolidated Balance Sheets. No gain or loss was recognized on the transaction. The agreement includes a contingent right of reacquisition. If the Company prevails in the appeal of the Hong Kong High Court case HCA938/2022 within three years, the shares may be transferred back to the Company at cost, and the note will be cancelled. Management does not anticipate a material impact on the Company's financial position as a result of this contingency.

For the years ended December 31, 2025, 2024 and 2023, a provision of $99, $2 and $8 was charged to the consolidated statement of comprehensive loss, and no write-offs against provisions was made.

#### Note 6 - Acquisition of subsidiaries and deposits paid for acquisition of subsidiaries
&nbsp;&nbsp;&nbsp;&nbsp;(a) Acquisition of Boca

On December 28, 2015, SGOCO International entered into a Share Sale and Purchase Agreement (the "SPA") with Richly Conqueror Limited (the "Vendor") pursuant to which SGOCO International will acquire all of the issued share capital of Boca International Limited, a company incorporated in Hong Kong ("Boca"). Total consideration of the Sale Shares includes $52.00 million in cash, plus up to 19.9% new shares in TROOPS (as enlarged by the issuance). In December 2015, the Company paid a $52.00 million refundable deposit to the Vendor.

Boca is principally engaged in environmental protection, energy saving technologies, equipment development and applications. Its business involves production and sales of phase change thermal energy storage materials as well as central air conditioning cooling and heating system application engineering.

The Company and Richly Conqueror Limited entered into a supplemental agreement on February 29, 2016, pursuant to which SGOCO International agreed to issue 1,162,305 ordinary shares of the Company to the Vendor on or before March 15, 2016 and both parties confirmed the closing date of the transaction shall be March 31, 2016. The shares were issued on March 7, 2016, and the fair value of the shares was $3.51 per share on the closing date, March 31, 2016.

After the completion of the acquisition, Boca became a wholly owned subsidiary of the Company.

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

The Company completed the valuations necessary to assess the fair values of the tangible and intangible assets acquired and liabilities assumed, resulting from which the amount of goodwill was determined and recognized as of the respective acquisition date. The following table summarizes the estimated aggregate fair values of the assets acquired and liabilities assumed as of the closing date, March 31, 2016.

---

| | |
|:---|:---|
| Net liabilities acquired (including cash of $1 and other loan of $332) | $(337) |
| Amortizable intangible assets  |  |
| &nbsp;&nbsp;Backlog contract | 372 |
| &nbsp;&nbsp;Proprietary technology | 26179 |
| Goodwill | 36504 |
| Deferred tax liabilities | (6638) |
| &nbsp;&nbsp;Total | $56080 |
| &nbsp;&nbsp;Total purchase price comprised of: |  |
| – cash consideration (paid in fiscal 2015 in the form of refundable deposit) | $52000 |
| – share-based consideration | 4080 |
| &nbsp;&nbsp;Total | $56080 |

---

The transaction resulted in a purchase price allocation of $36,504 to goodwill, representing the financial, strategic and operational value of the transaction to the Company. Goodwill is attributed to the premium that the Company paid to obtain the value of the business of Boca and the synergies expected from the combined operations of Boca and the Company, the assembled workforce and their knowledge and experience in provision of products and projects utilizing "green" energy technologies. The total amount of the goodwill acquired is not deductible for tax purposes.

Boca's revenues for the eight months ended August 31, 2020 of $812 were derived from one single customer, which individually accounted for 100% of the Boca's revenues. Boca's revenues for year ended December 31, 2019 of $402 were derived from one single customer, which individually accounted for 98% of the Boca's revenues.

After June 7, 2018, the Company's effective equity interest in Boca was reduced to 51% after the completion of the transfer of a 49% interest in Boca International Limited to Ms. Leung (Note 1).

On August 31, 2020, the Company's wholly-owned subsidiary, SGOCO International entered into a Sale and Purchase Agreement for the disposal of 94 shares in the share capital of Boca International Limited, being 51% of its entire issued share capital. Upon the satisfactory completion of the closing conditions contained in the Agreement, the disposal shall be consummated in consideration for the transfer of a 51% interest in Boca International Limited to Wong Yiu Tong at an agreed value of HK$1.46 million ($0.19 million). The Company considers August 31, 2020 as the disposal effective date since the operational and management control over Boca was shifted from TROOPS to the Purchaser on August 31, 2020.

(b) Acquisition of CSL

On December 27, 2016, the Company signed a memorandum of understanding ("MOU") to acquire all of the issued share capital of CSL, a company incorporated in Hong Kong, for a purchase price of $35.00 million in form of cash or new shares in TROOPS, subject to satisfactory due diligence and customary purchase price adjustments. In December 2016, a refundable deposit of $32.00 million was paid to the owner of CSL.

CSL is principally engaged in Virtual Reality ("VR') device and technologies research and development. Its development center and main researchers are in Shenzhen China. CSL's R&D team has extensive experience and expertise in the VR industry. The R&D team cooperated with Razer to develop Open-Source Virtual Reality ("OSVR") product aimed on VR-Gaming. The OSVR product attended the 2017 US CES exhibition in Las Vegas in January, 2017.

CSL develops VR technology and applies them on VR device. CSL's VR technology applies on VR Head-mounted display ("HMD") which can reduce the number of cables needed for a VR signal/data link between HMD and the source unit. It also uses ultrasound to calibrate VR devices' attitude without user's intervention.

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

The Company and Full Linkage Limited entered into a Share Sale and Purchase Agreement on April 23, 2017, pursuant to which SGOCO International agreed to pay $32.60 million and issue 1,500,000 newly issued ordinary shares of the Company to the Vendor on or before May 15, 2017. The shares were issued on May 4, 2017, and the fair value of the shares was $1.55 per share on the closing date, May 10, 2017.

After the completion of the acquisition, CSL became a wholly owned subsidiary of the Company.

The Company completed the valuations necessary to assess the fair values of the tangible and intangible assets acquired and liabilities assumed, resulting from which the amount of goodwill was determined and recognized as of the respective acquisition date. The following table summarizes the estimated aggregate fair values of the assets acquired and liabilities assumed as of the closing date, May 10, 2017.

---

| | |
|:---|:---|
| Net liabilities acquired (including cash of $1 and accrued liabilities of $68) | $(67) |
| Amortizable intangible assets |  |
| &nbsp;&nbsp;Technologies | 19682 |
| Goodwill | 20230 |
| Deferred tax liabilities | (4920) |
| &nbsp;&nbsp;Total | $34925 |
| Total purchase price comprised of: |  |
| – cash consideration (paid in fiscal 2016 in the form of refundable deposit) | $32600 |
| – share-based consideration | 2325 |
| &nbsp;&nbsp;Total | $34925 |

---

The transaction resulted in a purchase price allocation of $20,230 to goodwill, representing the financial, strategic and operational value of the transaction to the Company. Goodwill is attributed to the premium that the Company paid to obtain the value of the business of CSL and the synergies expected from the combined operations of CSL and the Company, the assembled workforce and their knowledge and experience in provision of products and projects utilizing VR technologies. The total amount of the goodwill acquired is not deductible for tax purposes.

On June 5, 2017, CSL incorporated a wholly foreign owned subsidiary, Shen Zhen Provizon Technology Co., Limited, for the development of VR technology and application of these technologies on VR device in China. CSL and Shen Zhen Provizon Technology Co., Limited have not generated revenues for the years ended December 31, 2018 and 2017. The Company took more time to commercialize the VR products than expected.

After June 7, 2018, the Company's effective equity interest in Boca was reduced to 51% after the completion of the transfer of a 49% interest in CSL to Ms. Leung (Note 1).

On September 20, 2019, the Company wholly-owned subsidiary, SGOCO International entered into a Share Exchange Agreement for the disposal of 5,100 shares in the share capital of CSL, being 51% of its entire issued share capital, and its fully owned subsidiary – Shen Zhen Provizon Technology Co., Limited.

Upon the satisfactory completion of the closing conditions contained in the Agreement, the disposal shall be consummated in consideration for the transfer of a 51% interest in CSL to Ho Pui Lung at an agreed value of HK$99.45 million ($12.75 million). The Company considers December 31, 2019 as the disposal effective date since the operational and management control over CSL and Shen Zhen Provizon Technology Co., Limited were shifted from TROOPS to the Purchaser on December 4, 2019.

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

&nbsp;&nbsp;&nbsp;&nbsp;(c) Acquisition of GCL

On December 22, 2017, Giant Connection, a wholly-owned subsidiary of TROOPS, completed the acquisition of GCL contemplated by the Share Exchange Agreement entered into by Luk Lai Ching Kimmy (as vendor) and the Company in consideration for HK$19.60 million ($2.35 million), which was satisfied by the allotment and issuance of 2,220,283 ordinary shares of the Company. GCL holds a Money Lenders License and engages in money lending business in Hong Kong. The fair value of the shares was $1.06 per share on December 26, 2017.

After the completion of the acquisition, GCL became a wholly owned subsidiary of the Company.

The Company completed the valuations necessary to assess the fair values of the tangible assets acquired and liabilities assumed, resulting from which the amount of goodwill was determined and recognized as of the respective acquisition date. The following table summarizes the estimated aggregate fair values of the assets acquired and liabilities assumed as of the closing date, December 22, 2017.

---

| | |
|:---|:---|
| Net assets acquired (including cash of $943, loan receivables of $670, interest receivables of $6, property, plant and equipment of $508 and income tax payable of $14) | $2113 |
| &nbsp;&nbsp;Goodwill | 248 |
| &nbsp;&nbsp;Deferred tax liabilities | (7) |
| &nbsp;&nbsp;Total | $2354 |
| &nbsp;&nbsp;Total purchase price comprised of: |  |
| &nbsp;&nbsp;— share-based consideration | $2354 |
| &nbsp;&nbsp;Total | $2354 |

---

The transaction resulted in a purchase price allocation of $248 to goodwill, representing the financial, strategic and operational value of the transaction to the Company. Goodwill is attributed to the premium that the Company paid to obtain the value of the business of GCL and the synergies expected from the combined operations of GCL and the Company, the assembled workforce and their knowledge and experience in provision of money lending service. The total amount of the goodwill acquired is not deductible for tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Acquisition of Paris Sky

On June 7, 2018, the Company's wholly-owned subsidiary, Giant Connection closed a Share Exchange Agreement for the entire issued share capital of Paris Sky, whose then sole shareholder and sole director were Leung Iris Chi Yu ("Ms. Leung") and Luk Lai Ching Kimmy (see (c) above, respectively. In consideration for (1) the allotment of 3,889,050 ordinary shares of the Company to Leung Iris Chi Yu ("Ms. Leung"), at an initial agreed value of HK$30.33 million ($3.89 million), the fair value of the 3,889,050 ordinary shares was $4.78 million, which was calculated based on the stock price of $1.23 per share on June 7, 2018, (2) the transfer of a 49% interest in CSL at an agreed value of HK$126.13 million ($16.17 million), (3) the transfer of a 49% interest in Boca at an agreed value of HK$184.84 million ($23.70 million), and (4) the issuance of a promissory note to Ms. Leung in the principal amount of HK$27.10 million ($3.47 million), bearing a 8% interest per annum, by Giant Connection, the Company acquired 100% of the issued share capital of Paris Sky, an investment holding company which, through its wholly owned subsidiary, Suns Tower, owns a property located at No. 8 Fui Yiu Kok Street, Tsuen Wan, New Territories, Hong Kong. The Company repaid the promissory note in full on August 22, 2018.

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

As over 95% of the fair value of the gross assets acquired is concentrated in the leasehold property, the acquisition of Paris Sky is considered an asset acquisition.

---

| | |
|:---|:---|
| Net assets acquired |  |
| &nbsp;&nbsp;Property, plant and equipment\* | $52994 |
| &nbsp;&nbsp;Allowance on guarantee | (817) |
| &nbsp;&nbsp;Other assets acquired (including cash of $1,957, other assets of $50, other payables of $170 and income tax payable of $4) | 1833 |
| &nbsp;&nbsp;Deferred tax assets | 116 |
| &nbsp;&nbsp;Deferred tax liabilities | (5998) |
| &nbsp;&nbsp;Total | $48128 |
| &nbsp;&nbsp;Total purchase price comprised of: |  |
| &nbsp;&nbsp;— share-based consideration | $4784 |
| &nbsp;&nbsp;— 49% interest in Boca | 23699 |
| &nbsp;&nbsp;— 49% interest in CSL | 16170 |
| &nbsp;&nbsp;— promissory note | 3475 |
| &nbsp;&nbsp;Total | $48128 |

---

\* Property, plant and equipment acquired included leasehold land and buildings with a value of $52.99 million at the date of acquisition which are pledged against the banking facilities of HK$215.32 million ($27.61 million) of a company beneficially owned by Luk Lai Ching Kimmy (see (c) above). The property pledge (allowance on guarantee) was valued on the basis of estimation of the probability that the borrower would be unable to either repay the loan or fulfil the loan contract terms (the default risk) and the amount that would be recovered at events of default (the recovery rate).

&nbsp;&nbsp;&nbsp;&nbsp;(e) Acquisition of Vision Lane

On October 3, 2018, the Company signed a letter of intent ("LOI") to acquire all of the issued share capital of Vision Lane, a company incorporated in British Virgin Island and engages in property investment in Hong Kong. Vision Lane owns all of the issued share capital of First Asia Finance, a company incorporated in Hong Kong. First Asia Finance holds a Money Lenders License and engages in money lending business in Hong Kong.

On December 31, 2018, a refundable deposit of $6.41 million was paid to the owner of Vision Lane.

On February 5, 2019, the Company's wholly-owned subsidiary, Paris Sky entered into a Share Exchange Agreement for the entire issued share capital of Vision Lane for an initial consideration of $12.42 million to be satisfied by (1) the allotment of 4,519,347 ordinary shares of the Company to Kwok Man Yee Elvis, at $1.10 per share and (2) the payment of $7.46 million in cash. The fair value of the 4,519,347 ordinary shares was $5.24 million, which was calculated based on the stock price of $1.16 per share on March 8, 2019, and the final consideration was $12.74 million.

On March 12, 2019, Paris Sky closed its acquisition of Vision Lane. After the completion of the acquisition, Vision Lane and First Asia Finance became wholly owned subsidiaries of the Company.

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

The Company completed the valuations necessary to assess the fair values of the tangible assets acquired and liabilities assumed, resulting from which the amount of goodwill was determined and recognized as of the respective acquisition date. The following table summarizes the estimated aggregate fair values of the assets acquired and liabilities assumed as of the closing date, March 12, 2019.

---

| | |
|:---|:---|
| Net assets acquired (including cash of $1,122, loan receivables of $7,495, interest receivables of $151, property, plant and equipment of $1,095, other receivables of $20, accounts payable of $30, other payables of $607 and income tax payable of $81) | $9165 |
| Goodwill | 3658 |
| Deferred tax liabilities | (124) |
| &nbsp;&nbsp;Total | $12699 |
| &nbsp;&nbsp;Total purchase price comprised of: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;– cash consideration ($6,410 paid in fiscal 2018 in the form of refundable deposit) | $7457 |
| &nbsp;&nbsp;&nbsp;&nbsp;– share-based consideration | 5242 |
| &nbsp;&nbsp;Total | $12699 |

---

The transaction resulted in a purchase price allocation of $3,658 to goodwill, representing the financial, strategic and operational value of the transaction to the Company. Goodwill is attributed to the premium that the Company paid to obtain the value of the business of Vision Lane and the synergies expected from the combined operations of Vision Lane and the Company, the assembled workforce and their knowledge and experience in provision of money lending service. The total amount of the goodwill acquired is not deductible for tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;(f) Acquisition of GFS

On December 23, 2019, the Company entered into a Share Exchange Agreement with Victor Or for the purchase and sale of the entire equity interest in GFS. GFS is a private company incorporated in Samoa and provides an online financial marketplace connecting financial institutions and users worldwide via its unique mobile application which features state-of-the-art functions to boost financial accessibility to financial and insurance products and services. At the heart of its digital platform is the Company's dedication to drive innovation, create value to businesses and individual users alike by (i) minimizing transaction risks, (ii) lowering transaction costs, (iii) reducing and detecting fraud, (iv) saving time, (v) increasing access and equality.

The total consideration to be paid for GFS is $64.34 million, which shall be satisfied by (a) the allotment of 15,992,000 shares of the Company to be issued to Mr. Or on the closing date, representing 19.9% of the total issued and outstanding shares of the Company as of the date of the Agreement, (b) the payment of $21.79 million in cash, and (c) the balance satisfied by issuance of a promissory note to Mr. Or. On January 31, 2020, TROOPS closed its previously announced acquisition of GFS. The Company repaid the promissory note in full on March 30, 2021.

After the completion of the acquisition, GFS became a wholly owned subsidiary of the Company.

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

The Company completed the valuations necessary to assess the fair values of the tangible assets acquired and liabilities assumed, resulting from which the amount of goodwill was determined and recognized as of the respective acquisition date. The following table summarizes the estimated aggregate fair values of the assets acquired and liabilities assumed as of the closing date, January 31, 2020.

---

| | |
|:---|:---|
| Net assets acquired (including cash of $981, other receivables and prepayments of $707, property, plant and equipment of $7, accrued liabilities of $29, other payables-related party of $662 and income tax payable of $387) | $617 |
| Intangible assets (including trademarks of $1,550 and backlog contracts of $2,786) | 4336 |
| Goodwill | 60103 |
| Deferred tax liabilities | (715) |
| &nbsp;&nbsp;Total | $64341 |
| &nbsp;&nbsp;Total purchase price comprised of: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;– cash consideration (paid in fiscal 2019 in the form of deposit) | $21795 |
| &nbsp;&nbsp;&nbsp;&nbsp;– consideration in the form of a promissory note (note) | 28473 |
| &nbsp;&nbsp;&nbsp;&nbsp;– share-based consideration | 14073 |
| &nbsp;&nbsp;Total | $64341 |

---

---

| | |
|:---|:---|
| Note: | The promissory note was issued to Mr. Or on January 31, 2020. The face value (principal) amount of $28.47 million is repayable by January 31, 2025, and bearing fixed interest at a rate of eight percent (8%) per annum. The Company has repaid the promissory note by several payments during 2020 and 2021, and it was fully settled by March 30, 2021. |

---

The transaction resulted in a purchase price allocation of $60,103 to goodwill, representing the financial, strategic and operational value of the transaction to the Company. Goodwill is attributed to the premium that the Company paid to obtain the value of the business of GFS and the synergies expected from the combined operations of GFS and the Company, the assembled workforce and their knowledge and experience in provision of money lending service. The total amount of the goodwill acquired is not deductible for tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;(g) Acquisition of Apiguru

On September 28, 2020, the Company's wholly-owned subsidiary, GFS closed a Share Exchange Agreement for the entire issued share capital of Apiguru. The acquisition was consummated in consideration for a total of AUD695,000 ($0.50 million), which was satisfied by the allotment and issuance of 559,581 ordinary shares of the Company. Apiguru is a technology consulting company specialising in Application Programming Interface (API) strategy and implementation enabling state-of-the-art market fit hypothesis that drives businesses forward. Through providing API consulting services, Apiguru helps businesses increasing effectivity, optimizing productivity, and developing integration channels that leverage opportunities for generating new revenue sources.

GFS aims to serve clients from different sectors with distinctive needs. Along together with API specialization, Apiguru helps GFS to integrate with various global platforms to expand customer base.

The shares were issued on October 12, 2020, and the fair value of the shares was $1.05 per share, and the final consideration was $0.59 million.

On October 8, 2020, GFS closed its acquisition of Apiguru. After the completion of the acquisition, Apiguru became a wholly owned subsidiary of the Company.

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

The Company completed the valuations necessary to assess the fair values of the tangible assets acquired and liabilities assumed, resulting from which the amount of goodwill was determined and recognized as of the respective acquisition date. The following table summarizes the estimated aggregate fair values of the assets acquired and liabilities assumed as of the closing date, October 8, 2020.

---

| | |
|:---|:---|
| Net assets acquired (including cash of $28, account payable of $1, other payables of $7) | $20 |
| Intangible assets - non-competition agreement | 39 |
| Goodwill | 539 |
| Deferred tax liabilities | (10) |
| &nbsp;&nbsp;Total | $588 |
| &nbsp;&nbsp;Total purchase price comprised of: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– share-based consideration | $588 |
| &nbsp;&nbsp;Total | $588 |

---

The transaction resulted in a purchase price allocation of $539 to goodwill, representing the financial, strategic and operational value of the transaction to the Company. Goodwill is attributed to the premium that the Company paid to obtain the value of the business of Apiguru and the synergies expected from the combined operations of Apiguru and the Company, the assembled workforce and their knowledge and experience in provision of money lending service. The total amount of the goodwill acquired is not deductible for tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;(h) Deposit paid for acquisition of TROOPS InsurTech, Inc.

On November 11, 2020, the Company signed a letter of intent to acquire all of the issued share capital of TROOPS InsurTech, Inc. ("TROOPS InsurTech"), a company incorporated in the British Virgin Islands which provides innovative solutions to the insurance industry by leveraging artificial intelligence, big data and blockchain technology, machine learning and SaaS. Through both online (mobile application and web-based) and offline platforms, TROOPS InsurTech seeks to provide (i) customized SaaS and workplace solutions to insurance brokers, (ii) blockchain alliance and data analytics services for insurance product design, clients' needs assessment, market analysis and risk management, (iii) insurance professionals training, recruitment and matching, and (iv) insurance policy management and service matching solutions to agents and clients to enhance customer experience. On November 13, 2020, a refundable deposit of $5 million was paid to the owner of the shares in TROOPS InsurTech. Acquisition of TROOPS InsurTech is still in progress. The deposit shall be refundable upon demand by the Company if the Company is not satisfied with the results of the due diligence review or the acquisition is not completed on or before the mutually agreed date.

On August 2, 2023 a termination notice of letter of intent was entered into between the Company and the owner of the shares in TROOPS InsurTech and the letter of intent was terminated, due to the Company not being satisfied with the results of its legal and financial due diligence with respect to TROOPS InsurTech. On August 9, 2023, the Deposit was fully refunded to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;(i) Acquisition of Riches Holdings

On January 24, 2024, the Company entered into a letter of intent with LIANTENG LIMITED to acquire all of the issued share capital of Riches Holdings, which holds several subsidiaries in Hong Kong and China. These subsidiaries provide various services, including i) financial and insurance advisory services in cooperation with licensed companies, ii) immigration consultation services on foreign immigration schemes, iii) overseas education advisory and application services, and iv) property agency services, by connecting clients to professional consultants through its mobile application. Riches, with its all-rounded services and strong client base, is expected to bring extensive synergy to the existing businesses of the Company.

On May 9, 2024, the Company entered into a sale and purchase agreement with LIANTENG LIMITED, for the purchase of the entire issued and outstanding share capital of Riches Holdings, for the consideration of $13,400,000. The consideration shall be satisfied by the Company through the issuance of Convertible Note 2024 to LIANTENG LIMITED for the principal amount of $13,400,000. The Convertible Note 2024 was issued by the Company to LIANTENG LIMITED on May 9, 2024, with a maturity date of May 9, 2029. On May 31, 2024, the Company closed its previously announced acquisition of Riches Holdings.

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

After the completion of the acquisition, Riches Holdings became a wholly owned subsidiary of the Company.

The Company completed the valuations necessary to assess the fair values of the tangible assets acquired and liabilities assumed, resulting from which the amount of goodwill was determined and recognized as of the respective acquisition date. The following table summarizes the estimated aggregate fair values of the assets acquired and liabilities assumed as of the closing date, May 31, 2024.

---

| | |
|:---|:---|
| Net assets acquired (including cash of $743, account receivables of $348, other receivables and prepayments of $158, other receivables-related parties of $528, income tax recoverable of $19, intangible assets of $25, account payables of $1,316, accrued liabilities of $238 and income tax payable of $7) | $260 |
| Intangible assets (including customers relationship $1,410) | 1410 |
| Goodwill | 11963 |
| Deferred tax liabilities | (233) |
| &nbsp;&nbsp;Total | $13400 |
| &nbsp;&nbsp;Total purchase price comprised of: |  |
| &nbsp;&nbsp;– consideration in the form of a promissory note (note) | 13400 |
| &nbsp;&nbsp;Total | $13400 |

---

---

| | |
|:---|:---|
| Note: | The promissory note was issued to LIANTENG LIMITED on May 9, 2024. The face value (principal) amount of $13.4million is repayable by May 9, 2029. LIANTENG LIMITED. The Company received two sets of notices of conversion issued by LIANTENG LIMITED dated 9 and 10 December 2024 respectively (together the "Notices") in accordance with the promissory note electing to fully convert the principal under the promissory note into the number of ordinary shares of US$0.004 each as stated in the Notices. |

---

The transaction resulted in a purchase price allocation of $11,963 to goodwill, representing the financial, strategic and operational value of the transaction to the Company. Goodwill is attributed to the premium that the Company paid to obtain the value of the business of Riches Holdings and the synergies expected from the combined operations of Riches Holdings and the Company, the assembled workforce and their knowledge and experience in provision of applications, technology and services, provision of consultancy services for insurance products and provision of advisory and referral services. The total amount of the goodwill acquired is not deductible for tax purposes.

#### Note 7 - Property, plant and equipment, net
Property, plant and equipment, net consisted of the following as of December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **December 31,**  | **December 31,**  |
|  | **2025** | **2024** |
| Leasehold land and buildings | $59307 | $59242 |
| Leasehold improvements | 69 | 18 |
| Machinery and equipment | 28 | 27 |
| Vehicles and office equipment | 432 | 656 |
| Total | 59836 | 59943 |
| Impairment | (14998) | (1554) |
| Less: accumulated depreciation | (15429) | (13476) |
| Plant and equipment, net | $29409 | $44913 |

---

Depreciation expense was $2,133, $2,108 and $2,103 for the years ended December 31, 2025, 2024 and 2023, respectively.

During the course of the Company's strategic review of its operations in the years ended December 31, 2025, 2024 and 2023, the Company assessed the recoverability of the carrying value of certain property, plant and equipment which resulted in impairment losses of approximately $13,444, nil and nil, respectively.

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

#### Note 8 - Intangible assets, net
Intangible assets, net, as of December 31, 2025 and 2024 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,**  | **December 31,**  |
|  | **2025** | **2024** |
| Trademark | $1550 | $1550 |
| Service Contract | 2786 | 2786 |
| Computer Software | 125 | 121 |
| Customers relationship | 1410 | 1410 |
| Vehicle license | 37 |  |
| Total | 5908 | 5867 |
| Accumulated amortization | (3232) | (3068) |
| Impairment | (1432) | (1432) |
| Exchange difference | (1) |  |
| Intangible assets, net | $1243 | $1367 |

---

Amortization expenses of intangible assets were $161, $97 and $13 for the years ended December 31, 2025, 2024 and 2023, respectively.

During the course of the Company's strategic review of its operations, the Company assessed the recoverability of the carrying value of the Company's intangible assets. The impairment charge, if any, represented the excess of carrying amounts of the Company's intangible assets over their fair value, using the expected future discounted cash flows. There were no impairment on intangible assets for the years ended December 31, 2025, 2024 and 2023, respectively.

As of December 31, 2025, amortization expenses related to intangible assets for future periods are estimated to be as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the years ending December 31,**  | **For the years ending December 31,**  | **For the years ending December 31,**  | **For the years ending December 31,**  | **For the years ending December 31,**  | **For the years ending December 31,**  |
|  | **2026** | **2027** | **2028** | **2029** | **2030** | **2031 and**<br>**thereafter** |
|  | **$** | **$** | **$** | **$** | **$** | **$** |
| Amortization expenses | 146 | 146 | 146 | 146 | 141 | 518 |

---

#### Note 9 - Goodwill
The movement of the goodwill for the years ended December 31, 2025, 2024 and 2023 is as follows:

---

| | |
|:---|:---|
| Balance as of January 1, 2023 | $385 |
| Impairment of goodwill  |  |
| Balance as of December 31, 2023 | 385 |
| Impairment of goodwill |  |
| Acquisition of Riches Holdings  | 11963 |
| Balance as of December 31, 2024 | 12348 |
| Impairment of goodwill |  |
| Balance as of December 31, 2025 | $12348 |

---

The Company performed goodwill impairment test at the reporting unit level on an annual basis and between annual tests when an event occurs or circumstances change indicating the asset might be impaired.

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

The Company first assessed qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. For those reporting units where it is determined that it is more likely than not that their fair values are less than the units' carrying amounts, the Company will perform the first step of a two-step quantitative goodwill impairment test. After performing the assessment, if the carrying amounts of the reporting units are higher than their fair values, the Company will perform the second step of the two-step quantitative goodwill impairment test.

In 2025, 2024 and 2023, the Company performed qualitative assessments for all reporting units. Based on the requirements of ASC 350-20-35-3C through ASC 350-20-35-3G, the Company evaluated all relevant factors, weighed all factors in their totality. As the financial performance of financial technology solutions and services reporting unit were below original expectations, fair value of these reporting units were indicated to be lower than its carrying value. For this reporting unit, where it was determined that it was more likely than not that its fair value was less than the units' carrying amount after performing the qualitative assessment, as a result, the Company performed the two-step quantitative goodwill impairment test for this reporting unit.

For the two-step goodwill impairment test, the Company estimated the fair value with either income approach or asset approach for specific reporting unit components. With the income approach, the Company estimates the fair value of the reporting units using discounted cash flows. Forecasts of future cash flows are based on the best estimate of future net sales and operating expenses, based primarily on expected expansion, pricing, market share, and general economic conditions. Certain estimates of discounted cash flows involve businesses with limited financial history and developing revenue models. Changes in these forecasts could significantly change the amount of impairment recorded, if any. Asset based approach is used in evaluating the fair value of some specific components which is deemed as the most prudent approach due to the unpredictability of future cash flows.

The result of step one impairment test for the financial technology solutions and services reporting unit failed, with its determined fair value lower than the book value. The Company performed Step 2 of the goodwill impairment test using the income approach and concluded that no impairment loss was recognized for the years ended December 31, 2025, 2024, and 2023.

**Note 10 – Long-term investment, net**

As of December 31, 2025, the Company owns a 19.9% equity interest in HK Golden, Inc., a privately held company. Although the Company does not hold a controlling interest or possess significant influence over the investee, the Company has concluded that the equity securities do not have readily determinable fair values because the investee is not publicly traded and does not provide daily or regularly available net asset value per share.

Accordingly, the investment is accounted for under the measurement alternative provided by Accounting Standards Codification (ASC) 321, Investments—Equity Securities. Under this guidance, the investment is initially recorded at cost, and subsequently measured at cost minus impairment, plus or minus observable price changes from orderly transactions for identical or similar investments of the same issuer. This measurement approach is consistent with the cost minus impairment (CMI) model.

The Company evaluates the investment for impairment upon the occurrence of events or changes in circumstances that indicate the carrying amount may not be recoverable. An impairment loss is recognized in earnings when the fair value of the investment is below its carrying amount and the decline is determined to be other-than-temporary. Dividends received from the investment are recognized in income when declared.

As of December 31, 2025 and 2024, the carrying amount of the investment was as follows:

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,**  | **Year ended December 31,**  |
|  | **2025** | **2024** |
| Investment at cost | $8990 | $— |
| Less: Accumulated impairment losses |  |  |
| Carrying amount of investment | $8990 | $— |

---

During the year ended December 31, 2025, the Company did not recognize any impairment losses or upward adjustments related to this investment. The Company reassesses the appropriateness of the measurement alternative at each reporting date.

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

#### Note 11 - Convertible notes
*2018 Convertible notes with Lin So Chun*

On April 18, 2018, the Company entered into a Securities Purchase Agreement with Lin So Chun, an unrelated party, pursuant to which the investor purchased a note for $5,779,602, bearing 2.5% interest per annum (the "2018 Notes"). The 2018 Notes will be matured 5 years from the date of issuance. At any time prior to the earlier of the maturity date or the date on which this 2018 Notes is paid in full, at the option of the Holder, all or any part of Principal Amount (the "Optional Conversion Amount") may be converted into 3,853,068 Ordinary Shares at $1.50 per share. The 2018 Notes will be automatically converted into ordinary shares of the Company at a conversion price equal to $1.50 per share at maturity. Interest on the 2018 Notes will be paid in cash and cannot be converted into shares of the Company. The 2018 Notes were sold pursuant to an exemption from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), pursuant Section 4(a)(2) of the Securities Act and Regulation S promulgated thereunder.

The contractual obligation to pay interest on the 2018 Notes results in an indirect contractual obligation to pay dividends on the base instrument. The present value of the expected dividend (interest) stream of $0.50 million is classified as liability and the difference between the proceeds of the 2018 Notes and the fair value of the liability component is attributable to equity component ($5.30 million).

The issuance of the 2018 Notes did not give rise to a beneficial conversion feature due to the market price of the shares of the Company at the issuance date of $1.07 being less than the effective conversion price was $1.38 per share.

On April 30, 2020, the 2019 Notes with a principal amount of $3.76 million (comprising liability component of $0.16 million and equity component of $3.60 million) were surrendered to the Company for cancellation in satisfaction of the initial deposit in relation to the disposal of 5,100 shares in the share capital of CSL.

The 2018 Notes was matured on April 17, 2023. As of December 31, 2025, the company had not issued any shares to the Note holder since we are still discussing issuance detail with the Note holder.

*2024 Convertible notes with LIANTENG LIMITED*

On May 9, 2024, the Company entered into a sale and purchase Agreement with LIANTENG LIMITED, an unrelated party, pursuant to which the investor purchased a note for $13.4 million, without bearing interest (the "2024 Notes"). The 2024 Notes will be matured 5 years from the date of issuance. At any time prior to the earlier of the maturity date or the date on which this 2024 Notes is paid in full, at the option of the Holder, all or any part of Principal Amount (the "Optional Conversion Amount") may be converted into Ordinary Shares.

ASC 815-15-25 provides that if an entity has a hybrid financial instrument that would require bifurcation of embedded derivatives under ASC 815, the entity may irrevocably elect to initially and subsequently measure a hybrid financial instrument in its entirety at fair value with changes in fair value recognized in earnings. The fair value election can be made instrument by instrument and shall be supported by concurrent documentation or a preexisting documented policy for automatic election.

The Company elected to measure the 2024 Notes in their entirety at fair value with changes in fair value recognized as non-operating income or loss at each balance sheet date in accordance with ASC 815-15-25.

Fair value of the 2024 Notes of $13.4 million as of May 31, 2024 is determined using the binomial model, one of the option pricing methods. The valuation involves complex and subjective judgment and the Company's best estimates of the probability of occurrence of future events, such as fundamental changes, on the valuation date. Under the binomial valuation model, the Group uses a weighted risk-free and risk interest rate (the combination of the risk free rate plus the credit spread for the underlying Notes) weighted by the probability of conversion as internally solved out by binomial model in discounting its cash flows. The main inputs to this model include the underlying share price, the expected share volatility, the expected dividend yield, the risk free and risk interest rate.

The Company received two sets of notices of conversion issued by LIANTENG LIMITED dated December 9 and 10, 2024, respectively (together the "Notices") in accordance with the promissory note electing to fully convert the principal under the promissory note into the number of ordinary shares of US$0.004 each as stated in the Notices. The conversion in aggregate of 10,912,168 Ordinary Shares was completed on December 11, 2024.

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

#### Note 12 - Other payables and accrued liabilities
Other payables and accrued liabilities as of December 31, 2025 and 2024 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,**  | **December 31,**  |
|  | **2025** | **2024** |
| Accrued professional fees | $456 | $657 |
| Accrued staff costs and staff benefits | 150 | 115 |
| Rental deposits from tenants | 206 | 206 |
| Contract liabilities | 522 | 148 |
| Interest receipt in advance | 1 | 1 |
| Advances from unrelated parties<br> \* | 18 | 547 |
| Accrued legal expense | 13173 |  |
| Others | 456 | 189 |
|  | $14982 | $1863 |

---

\* The advances from unrelated parties were unsecured, interest free and have no fixed terms of repayment.

#### Note 13 - Equity transactions

#### Preferred stock
On January 29, 2008, the Company amended its articles of association and authorized 1,000,000 preferred shares. On June 26, 2018, the shareholders of the Company approved to increase authorized preferred shares to 10,000,000.

No preferred shares were issued or registered in the IPO. There were no preferred shares issued and outstanding as of December 31, 2025 and 2024.

#### Issuance of capital stock
**2025**

On May 28, 2025, the Company entered into a stock purchase agreement with WANG & LEE HOLDINGS, Inc., pursuant to which the Company issued and sold to WANG & LEE HOLDINGS, Inc. 14,050,000 ordinary shares of the Company at a purchase price of US$0.90 per share, for an aggregate price of US$12,645,000. On July 22, 2025, the Company entered into a stock repurchase agreement with the WANG & LEE HOLDINGS, Inc., pursuant to which WANG & LEE HOLDINGS, Inc. agreed to sell, and the Company agreed to repurchase 4,400,000 Shares at a purchase price of US$0.90 per share, for a total purchase price of US$3,960,000. The closing of the Stock Repurchase Agreement occurred on July 24, 2025.

**2024**

On May 31, 2024, the Company completed the acquisition of Riches Holdings contemplated by the sale and purchase agreement entered into by and between the parties in consideration for $13.4 million. The Company received two sets of notices of conversion dated 9 and 10 December 2024 respectively in accordance with the promissory note electing to fully convert the principal under the promissory note into the number of ordinary shares of US$0.004 each as stated in the Notices, which was satisfied by the allotment and issuance of 10,912,168 ordinary shares of the Company.

**2023**

None.

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

#### Note 14 - Income taxes

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,**  | **Year ended December 31,**  | **Year ended December 31,**  |
|  | **2025** | **2024** | **2023** |
| Income tax expenses | $(72) | $(288) | $(110) |
| Deferred income tax benefit | 1574 | 261 | 250 |
|  | $1502 | $(27) | $140 |

---

Income is subject to tax in the various countries in which the Company operates.

The Company mainly conducts its operating business through its subsidiaries in Hong Kong.

Other than GCL, the subsidiaries incorporated in Hong Kong are subject to Hong Kong taxation on income derived from their activities conducted in Hong Kong. Hong Kong Profits Tax has been calculated at 16.5% of the estimated assessable profit for the years ended December 31, 2025, 2024 and 2023. The provision for Hong Kong Profits Tax for GCL is calculated at 8.25% for first-tier rate and 16.5% for the second-tier rate of the estimated assessable profits for the years ended December 31, 2025, 2024 and 2023.

The subsidiaries incorporated in mainland China are governed by the Income Tax Law of the PRC concerning foreign invested enterprises and foreign enterprises and various local income tax laws (the Income Tax Laws), and are subject to 25% tax rate throughout the periods presented. According to the provisions of Ministry of Finance and State Taxation Administration Announcement [2022] No. 13, one of the PRC subsidiaries enjoy referential income tax policies for the small and low profit enterprises in 2025 and 2024.

The Income Tax Laws also impose a 10% withholding income tax for dividends distributed by a foreign invested enterprise to its immediate holding company outside China for distribution of earnings generated after January 1, 2008. Under the Income Tax Laws, the distribution of earnings generated prior to January 1, 2008 is exempt from the withholding tax. As our subsidiaries in the PRC will not be distributing earnings to the Company for the years ended December 31, 2025, 2024 and 2023, no deferred tax liabilities have been recognized for the undistributed earnings of these PRC subsidiaries at December 31, 2025, 2024 and 2023. Total undistributed earnings of the Company's PRC subsidiaries at December 31, 2025 were nil (December 31, 2024: nil).

Upon adoption of ASU 2023-09. Improvements to Income Tax Disclosures, as described in Note 2, Significant dccounting Policies, thereconciliation of the differences betveen the statutory income tax rate and the Group's effective income tax rate for the year ended December 31, 2025 was as follows:

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31, 2025** | **Year ended December 31, 2025** |
|  | **Amount** | **Percentage**  |
| Statutory income tax rate | $(6176) | (21.0)<br>**%** |
| Tax effect of permanent difference | 1764 | 6.0 |
| Foreign tax effect in Hong Kong and other jurisdiction |  |  |
| &nbsp;&nbsp;Hong Kong |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Statutory income tax rate difference between Hong Kong and the U.S. | 875 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in valuation allowance | (31) | (0.2) |
| &nbsp;&nbsp;Other jurisdictions |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Statutory income tax rate difference between other jurisdictions and the U.S. | 68 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in valuation allowance | 12 | 0.1 |
| Tax effect of tax exempt in Cayman and BVI | 1986 | 6.8 |
| Effective income taxes | $(1502) | (5.1)<br>**%** |

---

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

The following table reconciles the U.S. statutory rates to the Company's effective tax rate for the years ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,**  | **Year ended December 31,**  |
|  | **2024** | **2023** |
| U.S. Statutory rates | 21.0% | 21.0% |
| Foreign income not recognized in the U.S. | (21.0) | (21.0) |
| China income taxes (including Hong Kong SAR)  | 5.1 | 7.7 |
| Australia income taxes | 0.1 | 0.2 |
| Impact of tax rate in other jurisdictions | (15.8) | (2.1) |
| Tax effect of non-deductible expenses | 11.1 | 1.6 |
| Valuation allowance | (0.7) |  |
| Under provision in respect of prior years |  | 0.1 |
| Effective income taxes | 0.2% | 7.5% |

---

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of deferred income tax assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
| Deferred income tax assets: |  |  |
| Net operating loss carry-forward | $589 | $681 |
| Less: Valuation allowance | (589) | (681) |
|  | $— | $— |
| Deferred tax liabilities |  |  |
| Intangible assets | $199 | $223 |
| Property, plant and equipment | 3230 | 4780 |
| Interest income | 12 | 12 |
|  | $3441 | $5015 |

---

The deferred income tax assets wholly relate to net tax loss carry forwards. The net operating loss carry forwards derived from the Company's PRC entities, HK entities and Australia entity.

The net tax loss of the PRC entities, Hong Kong entities and Australia entity of $1,369 and $1,841 as of December 31, 2025 and 2024, respectively, available for offset against future profits may be carried forward indefinitely. Management believes that the Company will not realize these potential tax benefits as the Company's operations in these PRC and Hong Kong entities will not generate any operating profits in the foreseeable future. As a result, the full amount of the valuation allowance was provided against the potential tax benefits.

#### Note 15 - Related party balances and transactions
The following is a list of related parties which the Company has balances and transactions with:

---

| | |
|:---|:---|
| Riches Credit Insurance Brokerage Limited | Principally owned (67.5%) by the Company's former director, Rui Wu (resigned on December 19, 2025) |
| Oriental Pearl (Shenzhen) Entry-Exit Service Co., Ltd. | Principally owned (75.0%) by the by the Company's former director, Rui Wu (resigned on December 19, 2025) |
| Ms Kwok Kai Kai Clara | The beneficiary owner of Prime Ocean Holdings Limited (owns 25.8% and 9.0% of our ordinary shares as of December 31, 2025 and April 27, 2026). |

---

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

&nbsp;&nbsp;&nbsp;&nbsp;a. Trade receivables from related party

As of December 31, 2025 and 2024, the balance of trade receivables from related party was as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Riches Credit Insurance Brokerage Limited | $231 | $231 |

---

The balances represented the trade receivables from related party for the insurance referral service rendered by the Company. For details, please refer to "f. Related Party Transactions" below.

&nbsp;&nbsp;&nbsp;&nbsp;b. Amount due from the related party

As of December 31, 2025 and 2024, the balance of other receivables from related party was as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Oriental Pearl (Shenzhen) Entry-Exit Service Co., Ltd. | $99 | $— |

---

&nbsp;&nbsp;&nbsp;&nbsp;c. Accounts payable to related party

As of December 31, 2025 and 2024, no balances of accounts payable to related party.

&nbsp;&nbsp;&nbsp;&nbsp;d. Amount due to a shareholder

On December 8, 2023 and April 9, 2024, Ms Kwok Kai Kai Clara (the beneficiary owner of Prime Ocean Holdings Limited), a shareholder of the Company loaned $1.92 million and $0.38 million to Giant Credit Limited. The loan is unsecured, non-interest bearing and repayable on demand. As of December 31, 2025 and 2024, the outstanding amount due to Ms Kwok Kai Kai Clara was nil and $1.54 million.

&nbsp;&nbsp;&nbsp;&nbsp;e. Amount due from/to the director, the former director and the former shareholder

The balance of amount due from/to the director, the former director and the former shareholder were unsecured, interest-free and repayable on demand.

&nbsp;&nbsp;&nbsp;&nbsp;f. Related party transactions

The following are the related party transactions for the years ended December 31, 2025 and 2024.

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Revenues - related party |  |  |
| Riches Credit Insurance Brokerage Limited (1) | $6883 | $3054 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) For the year ended December 31, 2025 and 2024, the Company has provided insurance referral services to Riches Credit Insurance Brokerage Limited, and has charged service fee on the basis of that.

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

#### Note 16 - Loss per share
The following is a reconciliation of the basic and diluted loss per share computation:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the years ended December 31,**  | **For the years ended December 31,**  | **For the years ended December 31,**  |
|  | **2025** | **2024** | **2023** |
| Net loss attributable to ordinary shareholders of TROOPS | $(27905) | $(13413) | $(1719) |
| Weighted average shares used in calculating loss per share – basic and diluted | 120705660 | 102240818 | 101597998 |
| Loss per share – basic and diluted | $(0.23) | $(0.13) | $(0.02) |
| Net loss per share – basic and diluted | $(0.23) | $(0.13) | $(0.02) |

---

As of December 31, 2025, 2024 and 2023, all the Company's outstanding warrants and convertible notes were excluded from the diluted loss per share calculation as they were anti-dilutive.

#### Note 17 - Segment information
The Company's segments are business units that offer different products and services and are reviewed separately by the chief operating decision maker (the "CODM"), or the decision-making group, in deciding how to allocate resources and in assessing performance. The Company's CODM is the Company's Chief Executive Officer. During 2017, after the acquisition of Giant Credit, there is one additional money lending segment. During 2018, after the acquisition of 11 Hau Fook Street and Paris Sky, there is one additional segment known as property lease and management. During 2020, after the acquisition of GFS and Apiguru, there is one additional segment, consisting of financial technology solutions and services. Effective as of January 1, 2023, the Company completely ceased its business in LCD/LED production. Hence, the segment of LCD/LED products was removed as of December 31, 2023. During 2024, after the acquisition of Riches Holdings, there are three additional segments, consisting of consultancy services for insurance products, advisory and referral services and applications, technology, and services. Due to similar nature of segments, we combined financial technology solutions and services into applications, technology, and services.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| <br>**For the year ended** <br>**December 31, 2025** | <br><br>**Money**<br>**lending** | **Property**<br>**lease**<br>**and**<br>**management** | <br>**Applications,**<br>**technology,**<br>**and services** | **Consultancy**<br>**services**<br>**for insurance** <br>**products** | **Advisory**<br>**and**<br>**referral**<br>**services** | <br>**Corporate**<br>**unallocated**<br>**(note)** | <br><br>**Consolidated** |
| Revenues | $2167 | $1384 | $137 | $12859 | $549 | $— | $17096 |
| Gross profit (loss) | 1875 | (1130) | (7) | 653 | 314 | (141) | 1564 |
| Operating expenses |  |  |  |  |  |  |  |
| Impairment loss of property, plant and equipment |  | (13444) |  |  |  |  | (13444) |
| Reversal of impairment loss of loan and interest receivables | 453 |  |  |  |  |  | 453 |
| Legal and professional expenses | (42) | (20) |  | (8) | (22) | (13963) | (14055) |
| Other operating expenses | (1452) | (275) | (90) | (588) | (817) | (830) | (4052) |
| Total operating expenses | (1041) | (13739) | (90) | (596) | (839) | (14793) | (31098) |
| Operating income (loss) | 834 | (14869) | (97) | 57 | (525) | (14934) | (29534) |
| Other income (loss) | 53 | 43 | 2 | (7) | 36 |  | 127 |
| Income (Loss) before provision for income taxes | 887 | (14826) | (95) | 50 | (489) | (14934) | (29407) |
| Income tax (expense) benefit | (40) | 1531 | 1 | (13) |  | 23 | 1502 |
| Net loss | 847 | (13295) | (94) | 37 | (489) | (14911) | (27905) |
| As of December 31, 2025 |  |  |  |  |  |  |  |
| Identifiable long-lived assets | 541 | 28902 | 20 |  |  | 1189 | 30652 |
| Total assets | 10891 | 32428 | 480 | 997 | 325 | 23945 | 69066 |

---

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| <br>**For the year ended** <br>**December 31, 2024** | <br><br>**Money**<br>**lending** | **Property**<br>**lease**<br>**and**<br>**management** | <br>**Applications,**<br>**technology,**<br>**and services** | **Consultancy**<br>**services**<br>**for insurance** <br>**products** | **Advisory**<br>**and**<br>**referral**<br>**services** | <br>**Corporate**<br>**unallocated**<br>**(note)** | <br><br>**Consolidated** |
| Revenues | $3308 | $1780 | $151 | $4478 | $356 | $— | $10073 |
| Gross profit (loss) | 2652 | (1185) | 25 | 468 | 63 | (82) | 1941 |
| Operating expenses |  |  |  |  |  |  |  |
| Impairment loss of loan and interest receivables | (3468) |  |  |  |  |  | (3468) |
| Legal and professional expenses | (226) | (256) |  |  | (4) | (490) | (976) |
| Other operating expenses | (1187) | (470) | (35) | (459) | (326) | (748) | (3225) |
| Total operating expenses | (4881) | (726) | (35) | (459) | (330) | (1238) | (7669) |
| Operating income (loss) | (2229) | (1911) | (10) | 9 | (267) | (1320) | (5728) |
| Other income (loss) | 4 | 5 |  | (2) | 28 | (7693) | (7658) |
| Income (Loss) before provision for income taxes | (2225) | (1906) | (10) | 7 | (239) | (9013) | (13386) |
| Income tax (expense) benefit | (236) | 249 | 1 | (54) | (1) | 14 | (27) |
| Net loss | (2461) | (1657) | (9) | (47) | (240) | (8999) | (13413) |
| As of December 31, 2024 |  |  |  |  |  |  |  |
| Identifiable long-lived assets | 556 | 44353 | 42 |  |  | 1329 | 46280 |
| Total assets | 17537 | 45993 | 586 | 1178 | 361 | 13530 | 79185 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br>**For the year ended**<br>**December 31, 2023** | <br>**Money**<br>**lending**<br>**services** | **Property**<br>**lease**<br>**and**<br>**management** | **Financial**<br>**technology**<br>**solutions**<br>**and services** | <br>**Corporate**<br>**unallocated**<br>**(note)** | <br>**Consolidated** |
| Revenues | $2313 | $1069 | $187 | $— | $3569 |
| Gross profit (loss)  | 1865 | (1084) | (5) |  | 776 |
| Operating expenses |  |  |  |  |  |
| Reversal of impairment loss of loan and interest receivables | 49 |  |  |  | 49 |
| Legal and professional expenses | (79) | (81) | (3) | (472) | (635) |
| Other operating expenses | (1211) | (371) | (28) | (382) | (1992) |
| Total operating expenses | (1241) | (452) | (31) | (854) | (2578) |
| Operating loss | 624 | (1536) | (36) | (854) | (1802) |
| Other income  | 10 | (65) | (1) | (1) | (57) |
| Loss before provision for income taxes | 634 | (1601) | (37) | (855) | (1859) |
| &nbsp;&nbsp;Income tax (expense) benefit | (84) | 231 | (7) |  | 140 |
| Net loss | 550 | (1370) | (44) | (855) | (1719) |
| As of December 31, 2023 |  |  |  |  |  |
| &nbsp;&nbsp;Identifiable long-lived assets | 562 | 46203 | 36 | 1 | 46802 |
| Total assets | 22157 | 46953 | 583 | 652 | 70345 |

---

Note:&nbsp;&nbsp;&nbsp;&nbsp; Corporate expenses include expenses incurred by corporate headquarters which are not allocated to the operating segments.

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

The geographical location of customers is based on the location at which the services were provided. In accordance with the enterprise-wide disclosure requirements of the accounting standard, the Company's net revenue from external customers by geographic areas is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended December 31,**  | **For the year ended December 31,**  | **For the year ended December 31,**  |
|  | **2025** | **2024** | **2023** |
| Hong Kong | 16783 | 10047 | 3442 |
| Australia | 115 |  | 127 |
| PRC | 198 | 26 |  |
| Total | $17096 | $10073 | $3569 |

---

**Note 18 - Leases**

The Company as lessee

The Company determines if a contract contains a lease at inception. US GAAP requires that the Company's leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right-to-use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain or failure to exercise such option would result in an economic penalty.

The Company has the following operating leases:

On March 23, 2022, First Asia Finance entered into a lease agreement for office and warehouse on a two-years term, commencing on March 1, 2022 and expiring on February 29, 2024. The lease agreement was renewed for two-years term and expiring on Feb 28, 2026. The monthly rental payment is HK$15 ($2).

The Company recognized lease liabilities with corresponding right-of-use ("ROU") assets of the same amount based on the present value of the future minimum rental payments of the lease, using mortgage loan's borrowing rate of 5.63% (Bank of China (Hong Kong) Limited) based on the duration of the lease terms.

The following table sets forth the five-year maturity schedule of the Company's lease liabilities:

---

| | |
|:---|:---|
| **For the years ending December 31,**  | **Amount** |
| 2026 | $4 |
| 2027 |  |
| 2028 |  |
| 2029 |  |
| 2030 |  |
| Total operating lease payments | $4 |
| Less: imputed interest |  |
| Present value of operating lease liabilities | $4 |

---

Operating lease expense was $178, $178 and $178 for the years ended December 31, 2025, 2024 and 2023, respectively.

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

The Company as lessor

TROOPS's operations include the leasing of commercial properties located at No. 11 Hau Fook Street, Kowloon and No. 8 Fui Yiu Kok Street, Tsuen Wan, New Territories. The leases thereon expire at various dates through 2026 to 2028. The following is a schedule of minimum future rents on non-cancelable operating leases at December 31, 2025:

---

| | |
|:---|:---|
| <br>**For the year ending December 31,**  | **Future Minimum** <br>**Rentals** |
| 2026 | $587 |
| 2027 | 156 |
| 2028 | 2 |
| Total | $745 |

---

There are no contingent rentals as of December 31, 2025 and 2024.

#### Note 19 - Commitments and contingencies
The Company is involved in litigation arising in the ordinary course of business. As of December 31, 2025, the Company has accrued US$13.17 million for losses relating the High Court of Hong Kong action no. HCA938/2022, which the Company believes is sufficient to cover the probable liabilities. Notwithstanding the accrual, the Company is currently appealing the judgment. It is reasonably possible that the ultimate outcome of this appeal could result in a loss significantly higher or lower than the amount accrued.

In connection with the Blue Pool transaction (Note 5), the Company retains a contingent right to reacquire the shares if the appeal is successful. Any recovery related to this right has not been recognized in the financial statements as of December 31, 2025.

#### Note 20 - Quantitative and qualitative disclosure about market risk
***Concentration of credit risk***

&nbsp;&nbsp;&nbsp;&nbsp;● Credit risk on loan receivables

Credit risk is one of the most significant risks for the Company's business and arise principally in lending activities.

Credit risk on loan receivables is controlled by the application of credit approvals, limits and monitoring procedures. To minimize credit risk, the Company requires collateral primarily in the form of rights to property.

The provision for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the provision. The provision is based on the Company's past loan loss history, known and inherent risks of the borrower, adverse situations that may affect the borrower's ability to repay, the estimated value of any underlying collateral, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available.

The Company originates loans to customers located primarily in Hong Kong. This geographic concentration of credit exposes the Company to a higher degree of risk associated with this economic region. Prior to January 1, 2020, the Company mainly reflects the "probability of default" by the customer on its contractual obligations and considers the current financial position of the customer and the exposures to the customer and its likely future development. For individual customers, the Company uses standard approval procedures to manage credit risk for personal loans.

The Company adopted Accounting Standard Update (ASU) 2016-13, Financial Instruments-Credit Losses (codified as Accounting Standard Codification Topic 326), since January 1, 2020, which requires measurement and recognition of current expected credit losses for financial instruments held at amortized cost. The Company's loan receivables and interest receivables are within the scope of ASC Topic 326.

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

For the year ended December 31, 2025, a reversal provision of $453 was recognized to the consolidated statement of comprehensive loss. For the year ended December 31, 2024 and 2023, a provision of $3,468 and a reversal of provision of $49 were recognized to the consolidated statement of comprehensive loss.

The Company's trade receivables, loan receivables, interest receivables, other receivables and prepayments and deposit for acquisition of a subsidiary are within the scope of ASC Topic 326.

To estimate expected credit losses as of December 31, 2025, the Company has conducted an assessment of expected credit loss of loan and interest receivables ("Financial Assets") held by the Company and together with its subsidiaries. The Financial Assets are outstanding loan receivables, net of provision for loan losses, from the money lending business in a total amount of $7.69 million ("Principal") and $0.85 million ("Interest") respectively.

Movement of the provision for loan losses and interest receivables are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,**  | **For the years ended December 31,**  |
|  | **2025** | **2024** |
| Balance as of January 1 | $5491 | $2023 |
| Provisions for doubtful accounts |  |  |
| &nbsp;&nbsp;Personal loans | 29 | 371 |
| &nbsp;&nbsp;Corporate loans | 1 | 3144 |
| Reversal for doubtful accounts |  |  |
| &nbsp;&nbsp;Personal loans | (385) |  |
| &nbsp;&nbsp;Corporate loans | (29) |  |
| Write offs |  |  |
| Recoveries of amounts previously charged off | (69) | (47) |
| Balance as of December 31 | 5038 | 5491 |

---

As of December 31, 2025, the loan receivables due from 3 customers accounted for 26%, 19% and 15% of total loan receivables. As of December 31, 2025, no other customer accounted for more than 10% of total loan balance.

As of December 31, 2024, the loan receivables due from 2 customers accounted for 11% and 31% of total loan receivables. As of December 31, 2025, no other customer accounted for more than 10% of total loan balance.

Movement of the provision for other receivables and prepayments are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,**  | **For the years ended December 31,**  |
|  | **2025** | **2024** |
| Balance as of January 1 | $10 | $8 |
| Provisions for doubtful accounts | 109 | 10 |
| Write offs |  |  |
| Recoveries of amounts previously charged off | (10) | (8) |
| Changes due to foreign exchange |  |  |
| Balance as of December 31 | 109 | 10 |

---

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

&nbsp;&nbsp;&nbsp;&nbsp;● Credit risk on trade receivables

Movement of the provision for trade receivables is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,**  | **For the years ended December 31,**  |
|  | **2025** | **2024** |
| Balance as of January 1 | $243 | $— |
| Provisions for doubtful accounts | 3 | 243 |
| Reversal for doubtful accounts | (60) |  |
| Write offs | (184) |  |
| Recoveries of amounts previously charged off |  |  |
| Changes due to foreign exchange | 1 |  |
| Balance as of December 31 | 3 | 243 |

---

As of December 31, 2025, the trade receivables due from one customer accounted for 98% of total trade receivables. As of December 31, 2025, no other customer accounted for more than 10% of total trade receivables.

As of December 31, 2024, the trade receivables due from 4 customers accounted for 13%, 17%, 20% and 41% of total trade receivables. As of December 31, 2024, no other customer accounted for more than 10% of total trade receivables.

***Concentration of customer***

Revenue from 2 major customer accounted for 40% and 29% of the Company's total revenues, for the year ended December 31, 2025. No other single customer accounted for more than 10% of the Company's total revenues, for the year ended December 31, 2025.

Revenue from 1 major customer accounted for 30% of the Company's total revenues, for the year ended December 31, 2024. No other single customer accounted for more than 10% of the Company's total revenues, for the year ended December 31, 2024.

***Concentration of geographic area***

The Company does not allocate its assets located and expenses incurred outside Hong Kong to its reportable segments because these assets and activities are managed at a corporate level (Note 17).

Geographic area data is based on product shipment destination. In accordance with the enterprise-wide disclosure requirements of the accounting standard, the Company's net revenue from external customers by geographic areas is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended December 31,**  | **For the year ended December 31,**  | **For the year ended December 31,**  |
|  | **2025** | **2024** | **2023** |
| Hong Kong | 16783 | 10047 | 3442 |
| Australia | 115 |  | 127 |
| PRC | 198 | 26 |  |
| Total | $17096 | $10073 | $3569 |

---

***Concentration of supplier***

For the year ended December 31, 2025 and 2024, there were no suppliers accounted for more than 10% of the Company's total cost of revenues, for the year ended December 31, 2025 and 2024.

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

***Concentration of deposit institution of cash and bank deposit***

As of December 31, 2025 and 2024, majority of the Company's cash is deposited in banks located in Hong Kong. In Hong Kong, Deposit Protection Scheme is in place which protects eligible deposits held with banks in Hong Kong. Hong Kong Deposit Protection Board will compensate up to a limit of HKD800,000 to each depositor if the bank which hold eligible deposits fails.

As of December 31, 2025, the Company had $4.02 million cash and bank deposits. The Company held seven bank accounts with total amount of $1.63 million cash deposited in Alpen Baruch Bank Limited which is an international bank situated in Vanuatu. There is no Deposit Protection Scheme in place which protects eligible deposits held with banks in Vanuatu.

Eligible deposits include all types of ordinary deposits such as current accounts, savings accounts, secured deposits and time deposits with a maturity not exceeding five years. Eligible deposits are protected regardless of the currency in which the deposits are denominated.

***Foreign currency risk***

Certain transactions of the Company are denominated in HKD, RMB and AUD which is different from the functional currency of the Company, and therefore the Company is exposed to foreign currency risk. As the HKD is currently pegged to the USD, and the transactions of the Company denominated in RMB and AUD are immaterial, management considers that there is no significant foreign currency risk arising from the Company's monetary assets denominated in USD.

The Company currently does not have a foreign currency hedging policy. However, the management monitors foreign exchange exposure and will consider hedging significant foreign exchange exposure should the need arise.

**Note 21** - **Employee pension**

Regulations in the PRC require the Company to contribute to a defined contribution retirement plan for all permanent employees. The PRC government is responsible for the pension liability to these retired employees. The Company is required to make monthly contributions to the state retirement plan at 20% of the base requirement for all permanent employees. Different geographic locations have different base requirements.

The Company's subsidiaries incorporated in Hong Kong participated in defined contribution Mandatory Provident Fund (the "MPF Scheme") under the Mandatory Provident Fund Schemes Ordinance, for all of its employees in Hong Kong. The Company is required to contribute 5% of the monthly salaries for all Hong Kong based employees to the MPF Scheme (subject to a cap).

The Company's subsidiary incorporated in Australia participated in defined contribution retirement plan for all permanent employees under Superannuation Schemes. The Company is required to contributions 9.5% of the monthly salaries for all Australia based employees to the Superannuation Schemes (subject to a cap).

Total pension expense incurred by the Company was $90, $47 and $23 for the years ended December 31, 2025, 2024 and 2023, respectively.

#### Note 22 - Subsequent events
The Company has analyzed its operations subsequent to December 31, 2025, through the date of this report and have determined that the Company does not have any material subsequent events to disclose in these unaudited condensed consolidated financial statements.

## Exhibit 8.1

**Exhibit 8.1**

**List of Subsidiaries**

---

| | |
|:---|:---|
| **Name of Subsidiary** | **Jurisdiction of Formation** |
| 11 Hau Fook Street Limited | Hong Kong |
| Apiguru Pty Ltd. | Australia |
| Beijing SGOCO Image Technology Co., Ltd. | People's Republic of China |
| First Asia Finance Limited | Hong Kong |
| FOR THE FUTURE, Inc. | Republic of Seychelles |
| Giant Connection Limited | Republic of Seychelles |
| Giant Credit Limited | Hong Kong |
| Giant Financial Services Limited | Samoa |
| Paris Sky Limited | Marshall Islands |
| Riches Advisory Limited | Hong Kong |
| Riches Elite Technology (Shenzhen) Co., Ltd. | People's Republic of China |
| Riches Finance Group Limited | Hong Kong |
| Riches Holdings Limited | Cayman Islands |
| Riches Property Limited | Hong Kong |
| SGOCO International (HK) Limited | Hong Kong |
| Suns Tower Limited (Formerly known as "First Asia Tower Limited") | Hong Kong |
| Vision Lane Limited | British Virgin Islands |

---

------

## Exhibit 12.1

**Exhibit 12.1**

**Certification by the Principal Executive Officer**

**Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Damian Thurnheer, President and Chief Executive Officer, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Annual Report on Form 20-F of TROOPS, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this Annual 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 regarding the period covered by this Annual Report;

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Annual Report is being prepared;

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this Annual Report any change in the Company's internal control over financial reporting that occurred during the period covered by the Annual Report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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 Company's ability to record, process, summarize and report financial information; and

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

---

| | | |
|:---|:---|:---|
| Dated: April 30, 2026 | By: | /s/ Damian Thurnheer |
|  | Name: | Damian Thurnheer |
|  | Title: | President and Chief Executive Officer |

---

Signature Page to Form 20-F

------

## Exhibit 12.2

**Exhibit 12.2**

**Certification by the Principal Financial Officer**

**Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Chung Hang Lui, Chief Financial Officer, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Annual Report on Form 20-F of TROOPS, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this Annual 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 regarding the period covered by this Annual Report;

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Annual Report is being prepared;

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this Annual Report any change in the Company's internal control over financial reporting that occurred during the period covered by the Annual Report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting; and

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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 Company's ability to record, process, summarize and report financial information; and

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

---

| | | |
|:---|:---|:---|
| Dated: April 30, 2026 | By: | /s/ Chung Hang Lui |
|  | Name: | Chung Hang Lui |
|  | Title: | Chief Financial Officer |

---

Signature Page to Form 20-F

------

## Exhibit 13.1

**Exhibit 13.1**

**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 TROOPS, Inc. (the "Company") on Form 20-F for the year ended December 31, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Annual Report"), I, Damian Thurnheer, President and Chief Executive Officer, and I, Chung Hang Lui, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Annual 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 Annual Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

---

| | | |
|:---|:---|:---|
| Dated: April 30, 2026 | By: | /s/ Damian Thurnheer |
|  | Name:  | Damian Thurnheer |
|  | Title: | President and Chief Executive Officer |
| Dated: April 30, 2026 | By: | /s/ Chung Hang Lui |
|  | Name:  | Chung Hang Lui |
|  | Title: | Chief Financial Officer |

---

Signature Page to Form 20-F

------

## Exhibit 15.1

**Exhibit 15.1**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the incorporation by reference in the Registration Statements on Form S-8 (No. 333-214142) and Amendment No. 1 to Form F-3 (No. 333-273175) of our reports dated April 30, 2025, relating to the consolidated financial statements of TROOPS, Inc., included in this Annual Report on Form 20-F for the year ended December 31, 2025.

/s/ Audit Alliance LLP

Singapore

April 30, 2026

------

## Exhibit 15.3

**Exhibit 15.3**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the incorporation by reference in the Registration Statements on Form S-8 (No. 333-214142) and Amendment No. 1 to Form F-3 (No. 333-273175) of our reports dated April 30, 2026, relating to the consolidated financial statements of TROOPS, Inc. and the effectiveness of TROOPS, Inc.'s internal control over financial reporting, included in this Form 20-F for the year ended December 31, 2025.

/s/ Assentsure PAC

Singapore

April 30, 2026

------