# EDGAR Filing Document

**Accession Number:** 0001913749
**File Stem:** 0001213900-25-077952
**Filing Date:** 2025-8
**Character Count:** 143532
**Document Hash:** b4bc9cde160d1524a85eac0fdb7cafac
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-25-077952.hdr.sgml**: 20250818

**ACCESSION NUMBER**: 0001213900-25-077952

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 86

**CONFORMED PERIOD OF REPORT**: 20250331

**FILED AS OF DATE**: 20250818

**DATE AS OF CHANGE**: 20250818

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Global Mofy AI Ltd
- **CENTRAL INDEX KEY:** 0001913749
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41834
- **FILM NUMBER:** 251228307

**BUSINESS ADDRESS:**
- **STREET 1:** NO. 102, 1ST FLOOR, NO. A12
- **STREET 2:** XIDIAN MEMORY CULTURAL AND CREATIVE TOWN
- **CITY:** GAOBEIDIAN, CHAOYANG, BEIJING
- **STATE:** F4
- **ZIP:** 225300
- **BUSINESS PHONE:** 86-1064376636

**MAIL ADDRESS:**
- **STREET 1:** NO. 102, 1ST FLOOR, NO. A12
- **STREET 2:** XIDIAN MEMORY CULTURAL AND CREATIVE TOWN
- **CITY:** GAOBEIDIAN, CHAOYANG, BEIJING
- **STATE:** F4
- **ZIP:** 225300

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Global Mofy Metaverse Ltd
- **DATE OF NAME CHANGE:** 20220225

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

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER**

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

**UNDER THE SECURITIES EXCHANGE ACT OF 1934**

**For the month of August 2025**

**Commission File Number: 001-41834**

**Global Mofy AI Limited**

**No. 102, 1<sup>st</sup> Floor, No. A12, Xidian Memory Cultural and Creative Town Gaobeidian Township, Chaoyang District, Beijing People's Republic of China, 100000** 

**(Address of principal executive offices)**

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

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

On August 18, 2025, Global Mofy AI Limited announced its Management's Discussion and Analysis of Financial Condition and Results of Operations for the six months ended March 31, 2025 and 2024, and the Unaudited Interim Consolidated Financial Statements for the same period, which are attached as Exhibit 99.1 and Exhibit 99.2, respectively.

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [Management's Discussion and Analysis of Financial Condition and Results of Operations for the Six Months ended March 31, 2025 and 2024](ea025365901ex99-1_global.htm) |
| 99.2 | [Unaudited Interim Consolidated Financial Statements for the Six Months ended March 31, 2025 and 2024](ea025365901ex99-2_global.htm) |
| 99.3 | [Press Release – Global Mofy Reports YoY 34.2% Increase in Revenue for the Six Months Ended March 31, 2025, Driven by Continued Efforts in R&D, dated August 18, 2025](ea025365901ex99-3_global.htm) |
| 101.INS | Inline XBRL Instance Document |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

---

**SIGNATURES**

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

---

| | | |
|:---|:---|:---|
|  | **Global Mofy AI Limited** | **Global Mofy AI Limited** |
| Date: August 18, 2025 | By: | */s/ Haogang Yang* |
|  | Name: | Haogang Yang |
|  | Title: | Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**Key Components of Results of Operations**

 ****

***Comparison of Results of Operations for the Six Months Ended March 31, 2025 and 2024***

The following tables summarize our results of operations from unaudited condensed consolidated statements of operations and comprehensive loss for the six months ended March 31, 2024 and 2024, respectively, and provides information regarding the dollar and percentage increase or (decrease) during such periods.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Periods Ended March 31,** | **For the Periods Ended March 31,** | **For the Periods Ended March 31,** | **For the Periods Ended March 31,** | **For the Periods Ended March 31,** | **For the Periods Ended March 31,** |
|  | **2025** | **2025** | **2024** | **2024** | **Variance** | **Variance** |
|  | **Amount** | **% of<br> revenue** | **Amount** | **% of<br> revenue** | **Amount** | **%** |
| **Revenues** | $26729054 | 100.0% | $19918959 | 100.0% | $6810095 | 34.2% |
| **Cost of revenues** | (14926118) | (55.8)% | (8100554) | (40.7)% | (6825564) | 84.3% |
| **Gross profit** | 11802936 | 44.2% | 11818405 | 59.3% | (15469) | (0.1)% |
| **Operating expenses:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Selling expenses | (78369) | (0.3)% | (361792) | (1.8)% | 283423 | (78.3)% |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | (4229947) | (15.8)% | (3907045) | (19.6)% | (322902) | 8.3% |
| &nbsp;&nbsp;&nbsp;Research and development expenses | (5808899) | (21.7)% | (839388) | (4.2)% | (4969511) | 592.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | (10117215) | (37.8)% | (5108225) | (34.0)% | (5008990) | 98.1% |
| **Income from operations** | 1685721 | 6.4% | 6710180 | 33.7% | (5024459) | (74.9)% |
| **Other income (expenses):** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 25227 | 0.1% | 204254 | 1.0% | (179027) | (87.6)% |
| &nbsp;&nbsp;&nbsp;Interest expenses | (145354) | (0.5)% | (117858) | (0.6)% | (27496) | 23.3% |
| &nbsp;&nbsp;&nbsp;Issuance costs allocated to warrant liability | 0 |  | (823846) | (4.1)% | 823846 | (100.0)% |
| &nbsp;&nbsp;&nbsp;Change of fair value of warrant liability | 3734131 | 14.0% | 6743319 | 33.9 | (3009188) | (44.6)% |
| &nbsp;&nbsp;&nbsp;Other income, net | 24095 | 0.1% | 40134 | 0.2% | (16039) | (40.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income, net | 3638099 | 13.7% | 6046003 | 30.4% | (2407904) | (39.8)% |
| **Income before income taxes** | 5323820 | 20.1% | 12756183 | 64.1% | (7432363) | (58.3)% |
| **Income taxes expense** | (284284) | (1.1)% | (2436804) | (12.2)% | 2152520 | (88.3)% |
| **Net income** | 5039536 | 19.0% | 10319379 | 51.9% | (5279843) | (51.2)% |

---

***Revenue***

We generate revenue primarily through virtual technology service and digital asset development. Total revenues increased by $6.8 million or 34.2%, from $19.9 million for the six months ended March 31, 2024, to $26.7 million for the six months ended March 31, 2025. The following table sets forth a breakdown of our revenues:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended March 31,** | **For the Six Months Ended March 31,** | **For the Six Months Ended March 31,** | **For the Six Months Ended March 31,** | **For the Six Months Ended March 31,** | **For the Six Months Ended March 31,** |
|  | **2025** | **2025** | **2024** | **2024** | **Variance** | **Variance** |
|  | **Amount** | **%** | **Amount** | **%** | **Amount** | **%** |
| Virtual technology service | $15036110 | 56.3% | $8968867 | 45.0% | $6067243 | 67.6% |
| Digital asset development and others | 11692944 | 43.7% | 10950092 | 55.0% | 742852 | 6.8% |
| **Total** | $**26729054** | **100.0%** | $**19918959** | **100.0%** | $**6810095** | **34.2%** |

---

 

*Revenues from virtual technology service*

Revenues from virtual technology service accounted for 56.3% and 45.0% of total revenues for the six months ended March 31, 2025 and 2024, respectively. Revenues from virtual technology service increased by $6.1 million, or 67.6% from $9.0 million for the six months ended March 31, 2024, to $15.0 million for the six months ended March 31, 2025. Such increase was mainly driven by the recovery of the movie and TV industries boomed in China in recently two years led to an increase in the revenue contribution of movies and TV series projects. Revenue from movies and TV series projects increased as a result of the expansion of the overall business scale of the market, and we kept strengthening our relationship with existing customers as most of the new customers were referred by the current customers.

*Revenues from digital asset development and others*

 

We launched our digital asset development and others business in the fourth quarter of 2021. Revenues from digital assets development and others accounted for 43.7% and 55.0% of total revenues for the six months ended March 31, 2025 and 2024, respectively. Revenues from digital assets development and others increased by $0.7 million or 6.8% from $11.0 million for the six months ended March 31, 2024, to $11.7 million for the six months ended March 31, 2025. Such increase was mainly driven by the boom of the concept of the metaverse and our business strategies of expanding the new digital asset development continuously and focusing more on the higher margin business line. Additionally, we have expanded and reached out to new customers in game production and cultural tourism business in this year, which also contribute to our significant increase in revenue from digital asset development revenue. We have also entered into copyright licensing contracts to authorize production rights, adaption rights, sublicense rights of licensed copyrights and digital assets with entertainment production companies. In the future, we plan to contribute more resources in this business line and the proportion of digital asset development of total revenues is expected to further increase.

***Cost of Revenues***

 ****

Cost of revenues primarily consists of outsourcing content production costs, payroll and related costs for employees involved with the Company's operations and product support, such as rental and depreciation expenses. Total cost of revenues increased by $6.8 million or 84.3%, from $8.1 million for the six months ended March 31, 2024, to $14.9 million for the six months ended March 31, 2025. The following table sets forth a breakdown of our cost of revenues by services offered for the six months ended March 31, 2025 and 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended March 31,** | **For the Six Months Ended March 31,** | **For the Six Months Ended March 31,** | **For the Six Months Ended March 31,** | **For the Six Months Ended March 31,** | **For the Six Months Ended March 31,** |
|  | **2025** | **2025** | **2024** | **2024** | **Variance** | **Variance** |
|  | **Amount** | **%** | **Amount** | **%** | **Amount** | **%** |
| Virtual technology service | $9489173 | 63.6% | $6415668 | 79.2% | $3073505 | 47.9% |
| Digital asset development and others | 5436945 | 36.4% | 1684886 | 20.8% | 3752059 | 222.7% |
| **Total** | $**14926118** | **100.0%** | $**8100554** | **100.0%** | $**6825564** | **84.3%** |

---

Cost of revenues for virtual technology service increased by $3.1 million, or 47.9%, from $6.4 million for the six months ended March 31, 2024 to $9.5 million for the six months ended March 31, 2025. Our cost of revenues of virtual technology service primarily consists of outsourcing costs, staff cost and allocated overhead related to each content production. The cost of revenues was varied in accordance with different projects.

Cost of revenues for digital asset development and others increased by $3.8 million, or 222.7%, from $1.7 million for the six months ended March 31, 2024 to $5.4 million for the six months ended March 31, 2025. The cost of revenue primarily comprised of salary and benefits incurred by staff responsible for the production of the licensed copyrights, cost or amortization of digital assets and out-sourced production and development services. The increase in cost of revenues was mainly due to an increase in the amortization of digital assets allocated to this fiscal year.

***Gross Profit and Gross Margin***

 ****

As a result of changes in revenue and cost of revenues, gross profit decreased by $15,469, or 0.1% from $11.82 million for the six months ended March 31, 2024 to $11.80 million for the six months ended March 31, 2025. The following table sets forth a breakdown of our gross profit and gross margin by services offered for the six months ended March 31, 2025 and 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended March 31,** | **For the Six Months Ended March 31,** | **For the Six Months Ended March 31,** | **For the Six Months Ended March 31,** | **For the Six Months Ended March 31,** | **For the Six Months Ended March 31,** |
|  | **2025** | **2025** | **2024** | **2024** | **Variance** | **Variance** |
|  | **Gross profit** | **GM%** | **Gross profit** | **GM%** | **Amount %** | |
| Virtual technology service | $5546937 | 36.9% | $2553199 | 28.5% | $2993738 | 117.3% |
| Digital asset development and others | 6255999 | 53.5% | 9265206 | 84.6% | -3009207 | -32.5% |
| **Total** | $**11802936** | **44.2%** | $**11818405** | **59.3%** | $**-15469** | **-0.1%** |

---

The gross margin decreased from 59.3% for the six months ended March 31, 2024 to 44.2% for the six months ended March 31, 2025, which was mainly because that (i) the gross profits margin for virtual technology services increased from 28.5% for the six months ended March 31, 2024 to 36.9% for the six months ended March 31, 2025. Gross margin varied in accordance with different projects. The variance in gross margin for virtual technology services is primarily due to completion of additional higher margin projects in the six months ended March 31, 2025 as compared to the prior period; and (ii) the gross profits margin for digital asset development business and others was 53.5% for the six months ended March 31, 2025. The margin of digital asset development and others are normally higher than our traditional virtual technology services. The decrease in gross margin of this business line is primarily the increase in the number of digital assets, resulting in an increase in the costs allocated to this fiscal year.

***Operating Expenses***

 ****

Operating expenses increased by $5.0 million, or 98%, from $5.1 million for the six months ended March 31, 2024, to $10.1 million for the six months ended March 31, 2025. The change was primarily caused by the increase of $0.3 million in general and administrative expenses and the decrease of $0.3 million in selling expenses partially offset by increase of $5.0 million in research and development expenses.

*Selling Expenses*

 

Selling expenses primarily included salary and benefit expenses incurred by sales and marketing personnel and related office expenses. Selling expenses decreased by $0.3 million, or 78.3%, from $0.4 million for the six months ended March 31, 2024 to $78,369 for the six months ended March 31, 2025. Due to industry characteristic, our customer acquisition mainly relies on accumulated reputation in industry and internal recommendations, and there is no direct correlation between selling expenses and revenue growth. Selling expenses represent 0.3% and 1.8% of total revenues for the six months ended March 31, 2025 and 2024, respectively.

*General and Administrative Expenses*

 

General and administrative expenses primarily consist of salary and benefit incurred by administration department as well as management, professional service fees, operating lease expenses for office rentals, deprecation, travelling expenses and provision for doubtful accounts. General and administrative expenses increased by $0.3 million, or 8.3%, from $3.9 million for the six months ended March 31, 2024 to $4.2 million for the six months ended March 31, 2025. The increase was mainly due to increased provision for doubtful accounts of $2.0 million, the decreased salary and bonus of $0.5 million, the decreased service fee of $1.0 million and the decreased intermediary agency fees of $0.2 million. General and administrative expenses represent 15.8% and 19.6% of total revenues for the six months ended March 31, 2025 and 2024, respectively.

*Research and Development Expenses*

 

Research and development expenses primarily consist of employee salaries and benefits for research and development personnel, allocated overhead and outsourced development expenses. Cost incurred for the internally developed IP of virtual content, scripts and digital assets to be licensed or sold during the planning and designing stage are expensed when incurred and are included in the research and development expenses are expensed when incurred. Research and development expenses increased by $5.0 million, or 592.0%, to $5.8 million for the six months ended March 31, 2025, from $0.8 million for the same period in 2024. This increase is mainly due to a $3.3 million increase in technical service fees and a $1.4 million increase in equity incentives.

***Other income (expenses)***

 

*Interest income*

 ****

Interest income primarily arise from the loans to third parties. Interest income decreased by $0.2 million, or 87.6%, to $25,227 for the six months ended March 31, 2025, from $0.2 million for the same prior-year period.

*Interest expenses*

 ****

Interest expenses primarily arise from bank loans. Interest expenses increased by $27,496, or 23.3%, to $145,354 for the six months ended March 31, 2025, from $0.1 million for the same prior-year period, which was mainly attributable to higher average outstanding borrowings from banks.

*Issuance costs allocated to warrant liability*

 ****

Issuance costs associated with warrants issued in a bundled transaction should be allocated to each instrument using a reasonable method. Issuance costs allocated to a warrant liability should be expensed as incurred and issuance costs allocated to an ordinary share should be recorded in additional paid-in capital. For the six months ended March 31, 2025 and 2024, issuance costs allocated to warrant liability was $nil and $0.8 million, respectively.

*Change in Fair Value of Warrant Liability*

Warrants classified as liabilities are initially recorded at fair value with gains and losses arising from changes in fair value recognized in the unaudited condensed consolidated statements of operations during the period in which such instruments are outstanding. The fair value change gain for the six months ended March 31, 2025 was $3.7 million, mainly due to the change in share price from the issue date to March 31, 2025.

***Income tax expense***

 ****

We recorded an income tax expense of $0.3 million for the six months ended March 31, 2025, compared to an income tax expense of $2.4 million for the same prior-year period.

***Net Income***

 ****

As a result of the foregoing, we recorded a net income of $5.0 million for the six months ended March 31, 2025, as compared to a net income of $10.3 million for the same prior-year period.

**5. B. *Liquidity and Capital Resources*.**

In assessing its liquidity, management monitors and analyzes the Company's cash on-hand, its ability to generate sufficient revenue sources in the future, and its operating and capital expenditure commitments. To date, we have financed our operations primarily through cash from operations, short-term borrowings from banks, and capital contributions from shareholders, which have historically been sufficient to meet our working capital requirements.

The Company currently plans to fund its operations mainly through cash flow from its operations, renewal of bank borrowings, funding from public offerings, if necessary, to ensure sufficient working capital. As of March 31, 2025, we had cash in the amount of $6.0 million. As of March 31, 2025, we had bank loans of $5.1 million; management expects that it would be able to obtain new bank loans or renew its existing bank loans upon their maturity based on past experience and the Company's good credit history. On October 13, 2024, the Company issued and sold 333,333(Pre-split 5,000,000) Class A accompanying warrants of 666,667 (Pre-split 10,000,000) shares. The net proceeds of $2.5 million were received in October, 2025. On October 13, 2024, the Company issued and sold 333,333(Pre-split 5,000,000) Class A accompanying warrants of 666,667 (Pre-split 10,000,000) shares. The net proceeds of $2.5 million were received in October, 2024.

We believe that the current cash and cash flows provided by future operating activities and loans from banks and third parties will be sufficient to meet the working capital needs in the next 12 months from the date the financial statements were issued. If we experience an adverse operating environment or incurs unanticipated capital expenditure requirements, or if we decide to accelerate growth, then additional financing may be required. We cannot guarantee, however, that additional financing, if required, would be available at all or on favorable terms. Such financing may include the use of additional debt or the sale of additional equity securities. Any financing which involves the sale of equity securities or instruments that are convertible into equity securities could result in immediate and possibly significant dilution to our existing shareholders. If it is determined that the cash requirements exceed the Company's amounts of cash on hand, the Company may seek to issue additional debt or obtain financial support from shareholders. The principal shareholder of the Company has made pledges to provide financial support to the Company whenever necessary.

Substantially all of our current operations are conducted in China and all of our revenue, expenses, cash are denominated in RMB. Current foreign exchange and other regulations in the PRC may restrict our PRC entities in their ability to transfer their net assets to us. However, we have no present plans to declare dividend and we plan to retain our retained earnings to continue to grow business. In addition, these restrictions had no impact on our ability to meet cash obligations as all of current cash obligations are due within the PRC.

 **

***Cash Flows Analysis***

 

***For the Six Months Ended March 31, 2025 and 2024***

The following table sets forth a summary of our cash flows for the periods indicated:

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended<br> March 31,** | **For the Six Months Ended<br> March 31,** |
|  | **2025** | **2024** |
| Net cash provided by (used in) operating activities | $10131789 | $9470764 |
| Net cash (used in) investing activities | (17407270) | (25694918) |
| Net cash provided by financing activities | 2389612 | 13662662 |
| Effect of foreign exchange rate on cash | (181534) | (516979) |
| Net (decrease)/increase in cash | (5067403) | (3078471) |
| Cash at the beginning of the year | 11068560 | 10437580 |
| Cash at the end of the year | $6001157 | $7359109 |

---

 ****

***Operating Activities***

Net cash provided by operating activities was $10.1 million for the six months ended March 31, 2025, mainly derived from (i) a net income of $5.0 million adjusted for noncash depreciation amortization of $5.4 million, provision for doubtful accounts of $2.2 million, equity-settled share based payments of $1.4 million and change in fair value of warrant liability of $3.7 million, (ii) net changes in the operating assets and liabilities, primarily comprising of (a) an increase in advance from customers of $1.5 million because of the expansion of our business in this period; (b) an decrease in accounts payable of $0.6 million; (c) an decrease in advance to vendors of $2.5 million mainly for outsourced digital assets. We expect to utilize these prepayments before the fiscal year of 2025.

Net cash provided by operating activities was $9.5 million for the six months ended March 31, 2024, mainly derived from (i) a net income of $10.3 million adjusted for noncash depreciation and amortization of $1.6 million and change in fair value of warrant liability of $6.7 million, (ii) net changes in the operating assets and liabilities, primarily comprising of (a) an increase in advance from customers of $0.7 million because of the expansion of our business in this period; (b) an decrease in advance to vendors of $2.1 million mainly for outsourced digital assets. We expect to utilize these prepayments before the fiscal year of 2024.

***Investing Activities***

Net cash used in investing activities amounted to $17.4 million for the six months ended March 31, 2025, mainly due to the Company purchased intangible assets of $17.4 million this period.

Net cash used in investing activities amounted to $25.7 million for the six months ended March 31, 2024, primarily consisting of loans to third parties of $14.6 million, purchase of intangible assets of $21.0 million and payment of long-term investments of $0.3 million, partially offset by collection of loans to third parties of $10.2 million.

***Financing Activities***

Net cash provided by financing activities amounted to $2.4 million for the six months ended March 31, 2025, primarily consisting of net proceeds from issuance of ordinary shares upon public offering of $2.5 million and proceeds from bank loans of $1.9 million , partially offset by repayments of bank loans of $2.0 million.

Net cash provided by financing activities amounted to $13.7 million for the six months ended March 31, 2024, primarily consisting of net proceeds in issuance of warrants of $8.9 million, net proceeds from issuance of ordinary shares upon public offering of $5.0 million and proceeds from bank loans of $1.2 million , partially offset by repayments of bank loans of $1.6 million.

**Contractual Obligations**

As of March 31, 2025 our contractual obligations were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Payments due by period** | **Payments due by period** | **Payments due by period** | **Payments due by period** | **Payments due by period** |
|  | **Total** | **Less than<br> 1 year** | **1 – 2 years** | **2 – 3 years** | **More than<br> 3 years** |
| **Contractual Obligations** | | | | | |
| Bank loans and interest expenses | $5109684 | $5109684 | $— | $— | $— |
| Loans from third parties | $22738 | $22738 | $— | $— | $— |
| Operating Lease Obligations | 447470 | 308028 | 139442 |  |  |
| Total | $5579892 | $5440450 | $139442 | $— | $— |

---

## Exhibit 99.2

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

**Exhibit 99.2**

**GLOBAL MOFY AI LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Expressed in U.S. Dollars, except for the number of shares)**

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **September 30,<br> 2024** |
|  | **(Unaudited)** | |
| **ASSETS** | | |
| &nbsp;&nbsp;&nbsp;**Current Assets** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash | $6001157 | $8068560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash |  | 3000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 948911 | 1254613 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances to vendors, net | 6161530 | 5736093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from related parties | 19017 | 19665 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets, net | 916848 | 967613 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | **14047463** | $**19046544** |
| &nbsp;&nbsp;&nbsp;**Non-current assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term investment | 275607 | 284998 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 20279 | 13420 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets, net | 49439095 | 38796262 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 471411 | 660946 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances to vendor – noncurrent | 253325 | 261956 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other non-current assets, net | 123523 | 127732 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total non-current assets** | **50583240** | **40145314** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Assets** | $**64630703** | $**59191858** |
| **LIABILITIES AND EQUITY** |  |  |
| &nbsp;&nbsp;&nbsp;**Current Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term bank loans | $5109684 | $5397521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans from third parties | 22738 | 23512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 1756348 | 1213114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances from customers | 5222810 | 3837621 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to a related party | 22413 | 50380 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax payable | 1425977 | 2035653 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 659121 | 553696 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities – current | 308028 | 270183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | **14527119** | **13381680** |
| &nbsp;&nbsp;&nbsp;**Non-current Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities – noncurrent | 139442 | 308575 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrant liability | 850054 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total non-current liabilities** | **989496** | **308575** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Liabilities** | **15516615** | **13690255** |
| **Commitments** |  |  |
| **Equity:** |  |  |
| &nbsp;&nbsp;&nbsp;Class A ordinary shares ($0.00003 par value, 30,000,000,000 shares authorized, 16,673,031 and 1,410,001 shares issued and outstanding as of March 31, 2025 and September 30, 2024, respectively)\* | 500 | 42 |
| &nbsp;&nbsp;&nbsp;Class B Ordinary Shares ($0.00003 par value, 4,000,000,000 shares authorized, 848,203 and 848,203 shares issued and outstanding as of March 31, 2025 and September 30, 2024, respectively) | 26 | 26 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 27131243 | 27796887 |
| &nbsp;&nbsp;&nbsp;Statutory reserves | 2322863 | 1926547 |
| &nbsp;&nbsp;&nbsp;Accumulated earnings | 20380510 | 15737191 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive (loss) | (579562) | 187118 |
| &nbsp;&nbsp;&nbsp;**Total GLOBAL MOFY AI LIMITED shareholders' equity** | **49255580** | **45647811** |
| &nbsp;&nbsp;&nbsp;Non-controlling interests | (141492) | (146208) |
| &nbsp;&nbsp;&nbsp;**Total equity** | **49114088** | **45501603** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and equity** | $**64630703** | $**59191858** |

---

\* Retrospectively restated for effect of reverse share split on November 26, 2024 (see Note 11).

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

**GLOBAL MOFY AI LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Expressed in U.S. Dollars, except for the number of shares)**

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended<br> March 31,** | **For the Six Months Ended<br> March 31,** |
|  | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** |
| Revenues | $26729054 | $19918959 |
| Cost of revenues | (14926118) | (8100554) |
| Gross profit | 11802936 | 11818405 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Selling expenses | (78369) | (361792) |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | (4229947) | (3907045) |
| &nbsp;&nbsp;&nbsp;Research and development expenses | (5808899) | (839388) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | (10117215) | (5108225) |
| Income from operations | 1685721 | 6710180 |
| Other income (expenses): |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 25227 | 204254 |
| &nbsp;&nbsp;&nbsp;Interest expenses | (145354) | (117858) |
| &nbsp;&nbsp;&nbsp;Issuance costs allocated to warrant liability |  | (823846) |
| &nbsp;&nbsp;&nbsp;Change in fair value of warrant liability | 3734131 | 6743319 |
| &nbsp;&nbsp;&nbsp;Other income, net | 24095 | 40134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income, net | 3638099 | 6046003 |
| Income before income taxes | 5323820 | 12756183 |
| Income tax expense | (284284) | (2436804) |
| Net income | 5039536 | 10319379 |
| Net loss attributable to non-controlling interest | (99) | (39) |
| Net income attributable to GLOBAL MOFY AI LIMITED | $5039635 | $10319418 |
| Comprehensive income |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $5039536 | $10319379 |
| &nbsp;&nbsp;&nbsp;Foreign currency translation gain (loss) | (761865) | 24399 |
| &nbsp;&nbsp;&nbsp;Total comprehensive income | 4277671 | 10343778 |
| &nbsp;&nbsp;&nbsp;Comprehensive loss (gain) attributable to non-controlling interests | 4716 | (1511) |
| Comprehensive income attributable to GLOBAL MOFY AI LIMITED | $4272955 | $10345289 |
| Earnings per common share |  |  |
| – Basic\* | $1.19 | $5.56 |
| – Diluted\* | $0.87 | $5.40 |
| Weighted average number of common shares outstanding |  |  |
| – Basic\* | 4220721 | 1855372 |
| – Diluted\* | 5785201 | 1910544 |

---

\* Retrospectively restated for effect of reverse share split on November 26, 2024 (see Note 11).

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

**GLOBAL MOFY AI LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Expressed in U.S. Dollars, except for the number of shares)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary Shares** | **Ordinary Shares** | **Ordinary Shares** | **Ordinary Shares** | | | | | | |
|  | **Class A** | **Class A** | **Class B** | **Class B** | | | | | | |
|  | **Shares\*** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-in**<br>**Capital** |<br>**Statutory**<br>**Reserves** |<br>**Accumulated**<br>**Deficit** | **Accumulated<br> Other**<br>**Comprehensive**<br>**Income (loss)** | **Non-**<br>**controlling**<br>**Interests** |<br>**Total**<br>**Equity** |
|  | | **US$** | | **US$** | **US$** | **US$** | **US$** | **US$** | **US$** | **US$** |
| **Balance as of September 30, 2023** | **1728410** | $**52** | **—**  | $**—**  | $**16035229** | $**368271** | $**5158115** | $**(604182)** | $**(140530)** | $**20816955** |
| Adoption of ASC 326 |  |  |  |  |  |  | 770368 |  |  | 770368 |
| Issuance of shares upon the completion of public offering | 82667 | 2 |  |  | 5034779 |  |  |  |  | 5034781 |
| Issuance of shares through private placement | 91954 | 3 |  |  | 1991718 |  |  |  |  | 1991724 |
| Net income for the year |  |  |  |  |  |  | 10319418 |  | (39) | 10319379 |
| Appropriation to statutory reserve |  |  |  |  |  | 718320 | (718320) |  |  |  |
| Foreign currency translation adjustment |  |  |  |  |  |  |  | 25871 | (1472) | 24399 |
| **Balance as of March 31, 2024 (Unaudited)** | **1903031** | $**57** | **—**  | **—**  | $**23061726** | $**1086591** | $**15529581** | $**(578311)** | $**(142041)** | $**38957603** |
| **Balance as of September 30, 2024** | **1410001** | $**42** | **848203** | $**26** | $**27796887** | $**1926547** | $**15737191** | $**187118** | $**(146208)** | $**45501603** |
| Issuance of ordinary shares in connection with registered direct offering, net of transaction cost | 119697 | 4 |  |  |  |  |  |  |  | 4 |
| Issuance of ordinary shares in connection with exercise of warrant | 333333 | 10 |  |  | (11993412) |  |  |  |  | (11993402) |
| Equity incentive | 220000 | 7 |  |  | 1418993 |  |  |  |  | 1419000 |
| Cashless exercise of warrants | 14590000 | 437 |  |  | 9908775 |  |  |  |  | 9909212 |
|  Net income for the year |  |  |  |  |  |  | 5039635 |  | (99) | 5039536 |
| Appropriation to statutory reserve |  |  |  |  |  | 396316 | (396316) |  |  |  |
| Foreign currency translation adjustment |  |  |  |  |  |  |  | (766680) | 4815 | (761865) |
| **Balance as of March 31, 2025 (Unaudited)** | **16673031** | $**500** | **848203** | $**26** | $**27131243** | $**2322863** | $**20380510** | $**(579562)** | $**(141492)** | $**49114088** |

---

\* Retrospectively restated for effect of reverse share split on November 26, 2024 (see Note 11).

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

**GLOBAL MOFY AI LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars)**

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended<br> March 31,** | **For the Six Months Ended<br> March 31,** |
|  | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** |
| Cash flows from operating activities |  |  |
| Net income | $5039536 | $10319379 |
| Adjustments to reconcile net income to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 5443162 | 1638542 |
| &nbsp;&nbsp;&nbsp;Amortization of operating lease right-of-use assets | 168358 | 429 |
| &nbsp;&nbsp;&nbsp;Provision for (recovery of) doubtful accounts | 2164417 | (577307) |
| &nbsp;&nbsp;&nbsp;Gains from short-term investment |  | (15000) |
| &nbsp;&nbsp;&nbsp;Interest income |  | (191399) |
| &nbsp;&nbsp;&nbsp;Equity-settled share based payments | 1418993 |  |
| &nbsp;&nbsp;&nbsp;Change in fair value of warrant liability | (3734131) | (6743319) |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | (50478) | 378643 |
| &nbsp;&nbsp;&nbsp;Advances to vendors, net | (2468994) | 2118705 |
| &nbsp;&nbsp;&nbsp;Prepayments and other assets, net | 269450 | (12791) |
| &nbsp;&nbsp;&nbsp;Accounts payable | 585149 | 19034 |
| &nbsp;&nbsp;&nbsp;Advance from customers | 1515151 | 679643 |
| &nbsp;&nbsp;&nbsp;Taxes payable | (544799) | 1939511 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 438596 | (2142) |
| &nbsp;&nbsp;&nbsp;Lease liabilities | (112621) | (81164) |
| &nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 10131789 | 9470764 |
| Cash flows from investing activities |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment | (13544) | (3367) |
| &nbsp;&nbsp;&nbsp;Purchase of intangible assets | (17393726) | (20993818) |
| &nbsp;&nbsp;&nbsp;Payment for long-term investments |  | (276997) |
| &nbsp;&nbsp;&nbsp;Loans to third parties |  | (14644951) |
| &nbsp;&nbsp;&nbsp;Collection of loans to third parties |  | 10224215 |
| &nbsp;&nbsp;&nbsp;Net cash used in investing activities | (17407270) | (25694918) |
| Cash flows from financing activities |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from short-term bank loans | 1894922 | 1151305 |
| &nbsp;&nbsp;&nbsp;Repayments of short-term bank loans | (2005310) | (1661981) |
| &nbsp;&nbsp;&nbsp;Deferred offering cost |  | 198540 |
| &nbsp;&nbsp;&nbsp;Net proceeds from issuance of initial public offering |  | 5034781 |
| &nbsp;&nbsp;&nbsp;Net proceeds from issuance of ordinary shares and warrant with a private placement | 2500000 | 8940017 |
| &nbsp;&nbsp;&nbsp;Capital contributions |  |  |
| &nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 2389612 | 13662662 |
| &nbsp;&nbsp;&nbsp;Effect of foreign exchange rate on cash | (181534) | (516979) |
| &nbsp;&nbsp;&nbsp;Net decrease in cash | (5067403) | (3078471) |
| &nbsp;&nbsp;&nbsp;Cash at the beginning of the period | 11068560 | 10437580 |
| &nbsp;&nbsp;&nbsp;Cash at the end of the period | $6001157 | $7359109 |
| &nbsp;&nbsp;&nbsp;Supplemental disclosures of cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;Income taxes paid | $25769 | $20305 |
| &nbsp;&nbsp;&nbsp;Interest paid | $97187 | $58590 |
| &nbsp;&nbsp;&nbsp;Initial recognition of warrant liabilities | 14493455 |  |
| &nbsp;&nbsp;&nbsp;Liability extinguished upon exercise of warrants | 9909270 |  |
| &nbsp;&nbsp;&nbsp;Initial issuance cost of warrants allocated to equity | 11993465 |  |

---

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

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION**

Global Mofy AI Limited ("Global Mofy Cayman") was incorporated on September 29, 2021 under the laws of the Cayman Islands with limited liability. Global Mofy Cayman, formerly known as GLOBAL MOFY AI LIMITED, changed its name by special resolution on August 15, 2024 and is now incorporated as Global Mofy AI Limited.

Global Mofy Cayman owns 100% of the equity interests of Global Mofy HK Limited ("Global Mofy HK"), a business company incorporated in accordance with the laws and regulations of Hong Kong on October 21, 2021.

Global Mofy HK owns 100% of the equity interests of Mofy Metaverse (Beijing) Technology Co., Ltd ("Global Mofy WFOE"), a business company incorporated in accordance with the laws and regulations of the People's Republic of China ("China" or "PRC") on December 9, 2021.

Global Mofy Cayman, Global Mofy HK, and Global Mofy WFOE are currently not engaging in any active business operations and are merely acting as holding companies.

Prior to the reorganization described below, the main operating activities of the Company were carried out by Global Mofy (Beijing) Technology Co., Ltd. ("Global Mofy China") and its subsidiaries. Global Mofy China was established on November 22, 2017 under the laws of the PRC. Global Mofy China has three wholly-owned subsidiaries, Kashi Mofy Interactive Digital Technology Co., Ltd. ("Kashi Mofy"), Shanghai Moying Feihuan Technology Co., Ltd. ("Shanghai Mofy") and Mofy Filming (Hainan) Co., Ltd. ("Mofy Hainan"), which were established on July 31, 2019, May 11, 2020 and January 4, 2021 in China, respectively. Global Mofy China acquired 60% shares of Mofy (Beijing) Filming Technology Co., Ltd. (Beijing Mofy) and Xi'an Digital Cloud Database Technology Co., Ltd. ("Mofy Xi'an") on February 7, 2018 and June 8, 2018, respectively. On December 1, 2021, Global Mofy China entered into an equity share transferring agreement with a third-party individual and transferred its 100% equity interest in Mofy Hainan for consideration of RMB 1. Such transferring was completed on December 3, 2021. Mofy Hainan has had no active business operations since its inception on January 4, 2021.

In preparation for listing in a stock market of the United States of America, the Company underwent a reorganization through entering into various contractual arrangements (the "Contractual Arrangements"), which, effective from January 5, 2022, between Global Mofy WFOE, Global Mofy China and their respective equity holders (the "Corporate Reorganization") due to regulatory restrictions on foreign ownership in the radio and television program production and operation business and value-added telecommunications business in the PRC. In June, 2022, the Company removed the radio and television program production from its business scope and the reason to use the VIE structure was no longer relevant. Historically, the Company did not produce any radio or television program.

On June 28, 2022, Global Mofy WFOE entered into equity transfer agreements with each shareholder of Global Mofy China to purchase all the equity interest in Global Mofy China. On July 8, 2022, Global Mofy WFOE, Global Mofy China and shareholders of Global Mofy China signed a termination agreement of the VIE Agreements. The VIE structure was dissolved. The restructure was completed on July 8, 2022. As a result, Global Mofy China became a wholly owned subsidiary of Global Mofy WFOE. Immediately before this acquisition, Global Mofy China was a foreign-invested joint venture.

Global Mofy Cayman together with its wholly owned subsidiaries Global Mofy HK, Global Mofy WFOE and Global Mofy China and its subsidiaries were effectively controlled by the same shareholders before and after the reorganization and therefore the reorganization was considered under common control and included at their historical carrying values. The consolidation of the Company has been prepared on the basis as if the reorganization had become effective as of the beginning of the first period presented in the consolidated financial statements.

On December 14, 2023, the Company established a wholly owned subsidiary, Global Mofy (Beijing) Technology Co., Ltd, under the laws of the State of California, to develop and expand overseas business. In February 2024, the Company established a wholly owned subsidiary, Gauss Intelligence (Beijing) Technology Co.. Ltd., under the laws of China, which will focus on the monetization of artificial intelligence generated content (AIGC), AI-generated 3D digital assets and synthetic video content creation. In March 2024, the Company established a wholly owned subsidiary, Anji Century Mofy Education Consulting Co., Ltd., under the laws of China, planning education and training operations. In May 2024, the Company established a wholly owned subsidiary GMM Discovery LLC, under the laws of the State of Delaware, to serve a diverse client base and explore new market opportunities. In September 2024, the Company established a wholly owned subsidiary, Kuyu Intelligent Technology (Anji) Co., Ltd., under the laws of China. As of September 30, 2024, the aforementioned companies have not yet commenced actual business operations.

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION** (cont.)

Global Mofy Cayman and its subsidiaries (the "Company") are mainly engaged in providing virtual content production and online advertising services. The Company's headquarters are located in the city of Beijing, China.

As of March 31, 2025, the Company's major subsidiaries are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name of Entity** | **Date of<br> Incorporation** | **Place of Incorporation** | **% of<br> Ownership** | **Principal Activities** |
| Global Mofy HK Limited ("Global Mofy HK") | October 21, 2021 | Hong Kong | 100% | Investment holding |
| Mofy Metaverse (Beijing) Technology Co., Ltd ("Global Mofy WFOE") | December 09, 2021 | PRC | 100% | Investment holding |
| Zhejiang Mofy Metaverse Technology Co., Ltd ("Zhejiang WFOE") | April 03, 2023 | PRC | 100% | Virtual technology service and digital marketing |
| Global Mofy (Beijing) Technology Co., Ltd. ("Global Mofy China") | November 22, 2017 | PRC | 100% | Virtual technology service, digital marketing and digital asset development |
| Kashi Mofy Interactive Digital Technology Co., Ltd. ("Kashi Mofy") | July 31, 2019 | PRC | 100% | Virtual technology service and digital marketing |
| Shanghai Moying Feihuan Technology Co., Ltd. ("Shanghai Mofy") | May 11, 2020 | PRC | 100% | Virtual technology service and digital marketing |
| Xi'an Shuzi Yunku Technology Co., Ltd ("Xi'an Mofy") | June 8, 2018 | PRC | 60% | Virtual technology service |
| Mofy (Beijing) Filming Technology Co., Ltd. ("Beijing Mofy") | February 7, 2018 | PRC | 60% | Virtual technology service |
| Global Mofy (Beijing) Technology Co., Ltd ("Global Mofy California") | December 14, 2023 | US | 100% | Overseas business |
| Gauss Intelligence (Beijing) Technology Co.. Ltd. ("Gauss Intelligence") | February 28, 2024 | PRC | 100% | (AIGC), AI-generated 3D digital assets and synthetic video content creation |
| Anji Century Mofy EducationConsulting Co., Ltd. ("Century Mofy") | March 5, 2024 | PRC | 100% | Education and training |
| GMM Discovery LLC ("Gauss Intelligence") | May 22, 2024 | US | 100% | Overseas business |
| Kuyu Intelligent Technology (Anji) Co., Ltd. ("Kuyu Intelligence") | September 3, 2024 | PRC | 100% | Virtual technology service and digital marketing |

---

On November 26, 2024, the Company effected a reverse stock split at a ratio of 15-to-1. All the shares and share price in the accompanying consolidated financial statements and notes have been retrospectively adjusted to reflect the effect of the reverse stock split (see Note 11).

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

***(a)* Basis of presentation**

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 have been consistently applied for information pursuant to the rules and regulations of the Securities Exchange Commission ("SEC").

***(b)* Principles of consolidation**

The consolidated financial statements include the financial statements of the Company and its subsidiaries. All transactions and balances between the Company and its subsidiaries have been eliminated upon consolidation.

***(c)* Emerging Growth Company**

The Company is an "emerging growth company," as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company's financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

 ****

***(d)* Non-controlling interests**

Non-controlling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. For the Company's consolidated subsidiaries, non-controlling interests represent a minority shareholder's 40% ownership interest in Beijing Mofy and Xi'an Mofy as of September 30, 2024 and 2023, respectively.

Non-controlling interests are presented as a separate line item in the equity section of the Company's Consolidated Balance Sheets and have been separately disclosed in the Company's Consolidated Statements of Comprehensive Income (Loss) to distinguish the interests from that of the Company.

 ****

***(e)* Use of estimates**

In preparing the consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenue and expenses during the reporting periods. Significant items subject to such estimates and assumptions include, but are not limited to, the assessment of the allowance for credit losses, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets, uncertain tax position and valuation allowance for deferred tax assets, fair value of warrants liabilities and fair value of stock-based compensation. Actual results could differ from those estimates.

 ****

***(f)* Cash and restricted cash**

Cash includes cash on hand and demand deposits placed with commercial banks. The Company maintains most of the bank accounts in mainland China.

Restricted cash includes cash that has been deposited in time certificates with a bank.

 ****

 ****

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

 ****

***(g)* Accounts receivable, net**

Accounts receivable are presented net of an allowance for credit losses. The Company maintains an allowance for credit losses for estimated losses. Pursuant to the requirements of the Financial Accounting Standards Board's Accounting Standards Codification Topic 326, *Financial Instruments - Credit Losses* ("ASC 326"), we measure credit losses utilizing a methodology that reflects expected credit losses and consider a broader range of reasonable and supportable information to inform credit loss estimates. We determine an allowance for doubtful accounts based on historical customer experience and other currently available evidence. When a specific account is deemed uncollectible, the account is written off against the allowance.

***(h)* Property and equipment, net**

Property and equipment are stated at cost, net of accumulated depreciation and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Expenditures for repairs and maintenance, which do not materially extend the useful lives of the assets, are expensed as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation and amortization are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. Depreciation expense was $2,978 and $7,172 for the six months ended March 31, 2025 and 2024, respectively.

Estimated useful lives are as follows:

Office equipment 3 years

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

 ****

***(i)* Intangible assets, net**

Intangible assets are digital assets acquired from third-party suppliers and mainly include 3D models with finite lives and are carried at cost less accumulated amortization and impairment loss, if any. Intangible assets with finite lives are amortized using the straight-line method over the estimated economic life.

Estimated useful lives are as follows:

---

| | |
|:---|:---|
| **Category** | **Estimated useful lives** |
| Licensed digital assets | 3-5 years |

---

Licensing assets should be capitalized if they meet the following conditions:

The license provides the Company with the exclusive or non-exclusive right to use the intellectual property for a specific period.

The acquired license has a determinable useful life, and the costs are directly attributable to the acquisition.

The contract is enforceable and provides rights that the Company can rely on for future benefit.

The acquisition of the license is not considered part of ordinary inventory or operating costs.

***(j)* Long-term investments**

The Company's long-term investments include equity investments in entities. Equity securities without readily determinable fair values and over which the Company has neither significant influence nor control through investments in common stock or in-substance common stock are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes.

In December 2023, the Company made an investment of $275,607 (or RMB 2,000,000) in New Era (Beijing) Technology Co., Ltd ("New Era Technology"), over which the Company owned 6.25% equity interest. The carrying value of the Company's long-term investments measured under this alternative measurement was $275,607 as of March 31, 2025.

 ****

***(k)* Impairment of long-lived assets other than goodwill**

Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable or that the useful life is shorter than the Company had originally estimated. When such events occur, the Company evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. No impairment charge was recognized for the six months ended March 31, 2025 and 2024.

 ****

***(l)* Fair value of financial instruments**

The Company applies ASC 820, *Fair Value Measurements and Disclosures*, ("ASC 820"). ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 requires disclosures to be provided on fair value measurement.

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

● Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

● Level 2 — Include other inputs that are directly or indirectly observable in the marketplace.

● Level 3 — Unobservable inputs which are supported by little or no market activity.

ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

Unless otherwise disclosed, the fair value of the Company's financial instruments including cash, accounts receivable, advances to vendors, prepaid expenses and other current assets, short-term bank loans, accounts payable, advance from customers, due to related parties, taxes payable, and accrued expenses and other current liabilities approximate their recorded values due to their short-term maturities. The fair value of longer-term leases approximates their recorded values as their stated interest rates approximate the rates currently available.

The Company's non-financial assets, such as property and equipment would be measured at fair value only if they were determined to be impaired.

 ****

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

 ****

***(m)* Leases**

The Company accounted for leases in accordance with ASC Topic 842, Leases. The Company determines if an arrangement is a lease at inception. All the Company's leases are operating leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate ("IBR") based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and includes initial direct costs incurred. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expenses for minimum lease payments are recognized on a straight-line basis over the lease term. All operating lease right-of-use assets are reviewed for impairment annually. There was no impairment for operating lease right-of-use lease assets for the six months ended March 31, 2025 and 2024.

The Company elected not to record assets and liabilities on its consolidated balance sheet for lease arrangements with terms of 12 months or less. The Company recognizes lease expenses for such lease on a straight-line basis over the lease term.

 ****

***(n)* Revenue recognition**

The Company adopted ASC Topic 606, Revenue from Contracts with Customers ("ASC 606") using the modified retrospective approach for the year ended September 30, 2020 and has elected to apply it retrospectively for the year ended September 30, 2019. In accordance with ASC 606, revenues from contracts with customers are recognized when control of the promised goods or services are transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company determines revenue recognition through the following steps: (i) identify the contracts with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when, or as the entity satisfies a performance obligation.

The Company's revenues are derived principally from virtual technology service, digital marketing and digital asset development and others. Value added taxes ("VAT") are presented as a reduction of revenues.

 

*Revenue from virtual technology service*

The Company engages in virtual content production for visual effect in movies, television series, animations, games, advertisement, tourism, and augmented reality ("AR") and virtual reality ("VR") technology etc. The virtual content production contracts are primarily on a fixed price basis, which require the Company to perform services for visual effect design, content development, production and integration based on customers' specific needs. The required production period is generally less than one year.

The virtual content production services are considered as a single performance obligation because the Company provides a significant service of integrating different services underlying each contract, which are highly interdependent and interrelated with one another. The Company currently does not have any modification of contract and the contracts currently do not have any variable consideration.

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

The customer of the virtual content production contract can only obtain control of the produced virtual content after the project is completed. The Company satisfy its performance obligation at a point in time only when it transfers the developed content to the customer. The virtual content are assets when they are developed by the Company. The Company can direct the use of the product and obtain substantially all of the remaining benefits of the asset. The customer can direct the use and obtain benefits of the assets only after the development completed and control transfer occurred from the Company upon acceptance by the customer. The customer does not simultaneously receive or consume the benefits provided by the Company's performance as the Company performs. The customer can only benefit from the final output of the virtual content as delivered by the Company. The customer does not have control over the content as it is developed. The developed virtual content may be sold as digital assets by the Company and the payment collected in advance based on the contract upon each milestone would be refundable if the Company does not meet the customer's needs or there is other default. Hence, none of the criteria of ASC 606-10-25-27 is met. Revenue from virtual content production is recognized at a point in time when the Company satisfies the performance obligation by transferring promised virtual content product upon acceptance by customers.

 

*Revenue from digital marketing*

The Company enters into two types of digital marketing contracts directly with customers. For one type of contracts, pursuant to which the Company provides advertisement production and promotion services to customers. The advertisements are in different format, including but not limited to short video, landing pages and static materials. The Company considers that both of the advertisement production and promotion services are highly interrelated and not separately identifiable. The Company's overall promise represents a combined output that is a single performance obligation; there is no multiple performance obligations. The Company engages third-party advising distributor while providing the promotion services. The Company considers itself as principal of the services as it has control of the specified services at any time before it is transferred to the customers which is evidenced by (i) the Company is primarily responsible for the production of content for advertisements and (ii) having latitude in select third party distributors for promotion and establish pricing. Therefore, the Company acts as the principal of these arrangements and reports revenue earned and costs incurred related to these transactions on a gross basis.

Under a framework contract, the Company receives separate purchase orders from customers. Accordingly, each purchase order is identified as a separate performance obligation, containing a bundle of advertisements that are substantially the same and that have the same pattern of transfer to the customer. Where collectability is reasonably assured, revenue is recognized over the service period of the purchase order, which is based on specific action (i.e. cost per mille "CPM") for online display.

The amount of the revenue is the gross billing charged to the customers. Revenue is recognized on a CPM basis as impressions or clicks are delivered through the Group's display of the advertisements in accordance with the revenue contracts.

The Company entered into another type of contracts with advertisers during the fiscal year 2022. Pursuant to which, the Company earns net fees from advertisers by acting as an agent to purchase advertisement inventories and advertise services on behalf of the advertisers. The Company recognizes revenues over the contracted service period. The Company is not a principal in these arrangements as it does not obtain control of ad inventories or advertising services, and therefore recorded net revenues at the difference between the gross billing amount charged to the advertisers and the costs of purchasing ad inventories and advertising services.

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

*Revenue from digital asset development and others*

 

The Company enters into copyright licensing contracts to authorize production rights, adaption rights, sublicense rights of licensed copyrights and digital assets with entertainment production companies. The licensing provides customers the right to use the Company's IP as it exists since neither the criteria as stated in ASC 610-10-55-62 is met. The specific licensed copyrights and digital assets authorized to customers are all developed IP, which are unique and do not require ongoing maintenance or effort from the Company to assure the usefulness of the license. The Company is entitled to receive the license fee under the licensing arrangements and does not have any future obligation once it has provided the underlying IP content to the licensee. The Company may use such authorized assets as a base model to produce new digital assets, however, these customers will not be contractually or practically required to use them. The revenue is recognized at a point in time when the licensed copyright and digital asset is made available for the customer's use and benefit.

Disaggregation of revenue

The following table summarized disaggregated revenue for the six months ended March 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended March 31,** | **For the Six Months Ended March 31,** |
|  | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** |
| **Category of Revenue** |  |  |
| Virtual technology service | $15036110 | $8968867 |
| Digital asset development and others | 11692944 | 10950092 |
|  | $**26729054** | $**19918959** |
| **Timing of Revenue Recognition** |  |  |
| Services transferred at a point in time | $26729054 | $19918959 |
| Services transferred over time |  |  |
|  | $**26729054** | $**19918959** |

---

 

 

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

*Contract balance*

The Company recognizes accounts receivable in its unaudited condensed consolidated balance sheets when it performs a service in advance of receiving consideration and it has the unconditional right to receive consideration. Payments received from its customers are based on the payment terms established in its contracts. Such payments are initially recorded to advances from customers and are recognized into revenue as the Company satisfies its performance obligations. As of March 31, 2025 and September 30, 2024, the balance of advances from customers amounted to $4,692,845 and $3,837,621, respectively. Substantially all of advances from customers will be recognized as revenue during the Company's following fiscal year.

***(o)* Cost of revenue**

Cost of revenues consists primarily of outsourcing content production cost, amortization cost of intangible assets, payroll and related costs for employees involved with the Company's operations and product support, such as rental and depreciation expenses. These costs are charged to the unaudited condensed consolidated statement of comprehensive income as incurred.

***(p)* Selling expenses**

Selling expenses consist primarily of promotion and advertising expenses, staff costs and other daily expenses which are related to the selling and marketing departments. These expenses are charged to the consolidated statement of comprehensive income (loss) as incurred.

***(q)* General and administrative expenses**

General and administrative expenses consist primarily of salaries and welfare expenses and related expenses for employees involved in general corporate functions, including accounting, legal and human resources; and costs associated with use by these functions of facilities and equipment, such as traveling and general expenses, professional service fees and other related expenses. These expenses are charged to the unaudited condensed consolidated statement of comprehensive income as incurred.

***(r)* Research and development expenses**

Research and development expenses consist primarily of employee salaries and benefits for research and development personnel, allocated overhead and outsourced development expenses. Cost incurred for the internally developed IP of virtual content, scripts and digital assets to be licensed or sold during the planning and designing stage are expensed when incurred and are included in the research and development expenses. Costs incurred in the development phase subsequent to establishing technological feasibility of such IP are capitalized. During the six months ended March 31, 2025 and 2024, as no such costs qualified for capitalization, all of the cost incurred for the internally developed IP of virtual content, scripts and digital assets to be licensed or sold are expensed.

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

***(s)* Income taxes**

The Company accounts for income taxes in accordance with ASC 740, Income Taxes. ASC 740 requires an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for 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. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or future deductibility is uncertain. The Company's subsidiaries in the PRC and Hong Kong are subject to the income tax laws of the PRC and Hong Kong. No taxable income was generated outside the PRC for the six months ended March 31, 2025 and 2024.

The provisions of ASC 740-10-25, Accounting for Uncertainty in Income Taxes, prescribe a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. Tax positions that meet the "more likely than not" recognition threshold are measured, using a cumulative probability approach, at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. The estimated liability for unrecognized tax benefits is periodically assessed for adequacy and may be affected by changing interpretations of laws, rulings by tax authorities, changes and or developments with respect to tax audits, and the expiration of the statute of limitations. Additionally, in future periods, changes in facts and circumstances, and new information may require the Company and its wholly-owned subsidiaries to adjust the recognition and measurement of estimates with regards to changes in individual tax position. Changes in recognition and measurement of estimates are recognized in the period which the change occurs. ASC 740 also provides guidance on the recognition of income tax assets and liabilities, classification accounting for interest and penalties associated with tax positions, years open for tax examination, accounting for income taxes in interim periods and income tax disclosures.

***(t)* Value added tax ("VAT")**

The Company's PRC subsidiaries are subject to value-added tax ("VAT") and related surcharges based on gross sales or service price depending on the type of services provided in the PRC ("output VAT"), and the VAT may be offset by VAT paid by the Company on service purchases ("input VAT"). The applicable rate of output VAT or input VAT for the Company is 6%. Gross sales or service price charged to customers is subject to output VAT at a rate of 6% and subsequently paid to PRC tax authorities after netting input VAT on purchases incurred during the period. The Company's revenues are presented net of VAT collected on behalf of PRC tax authorities and its related surcharges; the VAT is not included in the consolidated statements of comprehensive income (loss). All of the VAT returns filed by the Company's subsidiaries in the PRC have been and remain subject to examination by the tax authorities for five years from the date of filing.

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

***(u)* Warrant liabilities**

 

The Company accounts for the warrants issued in connection with ordinary shares (see note 11) in accordance with the guidance contained in Accounting Standards Codification ("ASC") 815-40 Derivatives and Hedging - Contracts in Entity's Own Equity ("ASC 815") under which the warrants do not meet the criteria for equity treatment and will be recorded as liabilities. Accordingly at initial recognition, the Company classifies such warrants as liabilities at their fair value. This warrant liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the consolidated statements of operations. The warrant with a total change in fair value of $3.7 million for the year ended March 31, 2025.

***(v)* Earnings (loss) per share**

The Company computes earnings (loss) per share ("EPS") in accordance with ASC Topic 260, Earnings per Share ("ASC 260"). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS are computed by dividing net income (loss) available to ordinary shareholders of the Company by the weighted average ordinary shares outstanding during the period. Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares. Potential ordinary share that has an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted earnings per share.

***(w)* Foreign currency translation and transactions**

The reporting currency of the Company is the U.S. dollar ("US$"), and the accompanying consolidated financial statements have been expressed in US$. The Company's principal country of operations is the PRC. The financial position and results of its operations are determined using the Chinese Yuan ("RMB"), the local currency, as the functional currency. The Company's consolidated financial statements have been translated into the reporting currency, US$. The results of operations and the consolidated statements of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in equity (deficit). Gains and losses from foreign currency transactions and balances are included in the results of operations.

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

The value of RMB against US$ and other currencies may fluctuate and is affected by, among other things, changes in the PRC's political and economic conditions. Any significant revaluation of RMB may materially affect the Company's financial condition in terms of US$ reporting. The following table outlines the currency exchange rates that were used in preparing the consolidated financial statements:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **September 30,<br> 2024** | **September 30,<br> 2024** |
| Period-end spot rate |  | 7.2567 |  | 7.0176 |

---

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended March 31,** | **For the Six Months Ended March 31,** |
|  | **2025** | **2024** |
| Average rate | 7.2308 | 7.2064 |

---

***(x)* Stock-based compensation**

 ****

The Company recognizes stock-based compensation expense on a straight-line basis over the applicable requisite service period, based on the grant-date fair value of the award. To the extent a stock-based award is subject to performance conditions, the amount of expense recorded in a given period, if any, reflects the Company's assessment of the probability of achieving the performance targets.

Fair value of stock options and shares subject to the Company's employee stock purchase plan are estimated using the Black-Scholes valuation model; fair value of performance share unit ("PSU") awards, restricted stock unit ("RSU") awards and restricted stock awards ("RSA") is based on the closing market price on the day preceding the grant. The Company's accounting treatment of forfeiture expenses reversals is at the forfeiture date and does not estimate future forfeitures prior to their actual occurrence.

Shares to be issued upon the exercise of stock options or the requisite service period of stock awards will come from newly issued shares.

***(y)* Segment reporting**

ASC Topic 280, *Segment Reporting* ("ASC 280") establishes standards for reporting information about operating segments on a basis consistent with the Company's internal organizational structure as well as information about geographical areas, business segments and the types of customers to help users of financial statements to better understand the Company's performance, assess its prospects for future cash net cash flow and make more informed judgements about the Company in a whole.

The Company uses the management approach to determine reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker ("CODM") for making decisions, allocating resources and assessing performance. The Company's CODM has been identified as the CEO, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company.

Based on the management's assessment, the Company determined that it has only one operating segment and therefore one reportable segment as defined by ASC 280. The Company's assets are substantially all located in the PRC and substantially all of the Company's revenue and expense are derived in the PRC. Therefore, no geographical segments are presented.

***(z)* Significant risks and uncertainties**

*Currency convertibility risk*

Substantially all of the Company's operating activities are settled in RMB, which is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People's Bank of China ("PBOC"). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other Company foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance.

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

*Concentration and credit risk*

Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable.

The Company maintains certain bank accounts in the PRC, Hong Kong and Cayman. As of March 31, 2025 and September 30, 2024, cash balances in the PRC are $147,015 and $5,691,192, respectively. On May 1, 2015, China's new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as commercial banks, established in the PRC are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them. Such Deposit Insurance Regulation would not be effective in providing complete protection for the Company's accounts, as its aggregate deposits are much higher than the compensation limit, which is RMB500,000 for one bank. Other than such deposit insurance mechanism, the Company's bank accounts are not insured by Federal Deposit Insurance Corporation insurance or other insurance. However, the Company believes that the risk of failure of any of these Chinese banks is remote. Bank failure is uncommon in the PRC and the Company believes that those Chinese banks that hold the Company's cash are financially sound based on public available information.

Accounts receivables are typically unsecured and derived from services rendered to customers that are located in China, thereby exposed to credit risk. The risk is mitigated by the Company's assessment of customers' creditworthiness and its ongoing monitoring of outstanding balances. The Company has a concentration of its accounts receivable with specific customers.

*Major Customers*

 

For the six months ended March 31, 2025, no customer's revenue accounts for more than 10% of the total revenue. For the six months ended March 31, 2024, two customers accounted for approximately 15% and 11% of total revenues, respectively.

As of March 31, 2025, the balance due from two customers accounted for approximately 28% and 27% of the Company's total accounts receivable, respectively. As of September 30, 2024, the balance due from four customers accounted for approximately 36%, 15%, 14% and 12% of the Company's total accounts receivable, respectively.

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

*Major Suppliers*

For the six months ended March 31, 2025, no supplier's purchase accounted for more than 10% of the total purchases. For the six months ended March 31, 2024, three suppliers accounted for approximately 11%, 10% and 10% of the total purchases, respectively.

As of March 31, 2025, three suppliers accounted for approximately 15%, 14% and 10% of the Company's accounts payable, respectively. As of September 30, 2024, four suppliers accounted for approximately 22%, 16%, 11% and 10% of the Company's accounts payable, respectively.

*Interest rate risk*

 

Fluctuations in market interest rates may negatively affect the Company's financial condition and results of operations. The Company is exposed to floating interest rate risk on cash deposit and floating rate borrowings, and the risks due to changes in interest rates is not material. The Company has not used any derivative financial instruments to manage the Company's interest risk exposure.

***(aa)* Recent accounting pronouncements**

In November 2023, the FASB issued ASU No. 2023-07, *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures* ("ASU 2023-07"). The amendment in this Update is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments also require a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. For public entity with single reportable segment, the Update requires the entity to provide all the disclosures required by the amendments in the ASU and all existing segment disclosures in Topic 280. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company adopted this ASU on October 1, 2024 and expects that the adoption will not have a material impact on the Company's consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures* ("ASU 2023-09"). The Update requires that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income [or loss] by the applicable statutory income tax rate). The ASU is effective for public business entities for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. The Company will adopt this ASU on October 1, 2025. The Company does not expect the adoption will have a material impact on the Company's consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU No. 2024-03, *Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses* ("ASU 2024-03"). The guidance primarily will require enhanced disclosures about certain types of expenses. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027 and may be applied either on a prospective or retrospective basis.

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company's consolidated financial position, statements of comprehensive income and cash flows.

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 3 — ACCOUNTS RECEIVABLE, NET**

Accounts receivable, net consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **September 30,<br> 2024** |
|  | **(Unaudited)** | |
| Accounts receivable | $1876994 | $1888934 |
| Less: allowance for credit losses | (928083) | (634321) |
| Accounts receivable, net | $948911 | $1254613 |

---

The movement of allowance for credit loss is as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **September 30,<br> 2024** |
|  | **(Unaudited)** | |
| Balance at beginning of the year | $634321 | $395796 |
| Addition | 314663 | 217035 |
| Foreign exchange translation | (20901) | 21490 |
| Balance at end of the year | $928083 | $634321 |

---

**NOTE 4 — ADVANCES TO VENDORS, NET**

Advances to vendors consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **September 30,<br> 2024** |
|  | **(Unaudited)** | |
| Prepayments for virtual technology services | $6200425 | $5631798 |
| Prepayments for digital assets development | 3079993 | 1413557 |
| Subtotal | 9280418 | 7045355 |
| Less: allowance for credit losses | (2865563) | (1047306) |
|  | 6414855 | 5998049 |
| Less: advances to vendors – noncurrent | (253325) | 261956 |
| Advances to vendors – current | $6161530 | $5736093 |

---

Advances to vendors primarily consisted of prepayments for virtual technology services, digital marketing and digital assets development outsourced to third party vendors. As of March 31, 2025 and September 30, 2024, the Company recorded allowance for credit losses of $2,865,563 and $1,047,306, respectively. As of March 31, 2025, $253,325 advances made to vendors for digital assets to be acquired was recorded advances to vendor – noncurrent in the balance sheets.

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 5 — LOANS RECEIVABLE, NET**

Loans receivable, net consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **September 30,<br> 2024** |
|  | **(Unaudited)** | |
| Hanning Jin<sup>(a)</sup> | $8957 | $9262 |
|  | 8957 | 9262 |
| Less: allowance for doubtful accounts | 8957 | 9262 |
| Total loans receivable, net – noncurrent | $— | $— |
| Total loans receivable, net | $— | $— |

---

(a) On
January 14, 2024, Global Mofy China renewed the interest-free loan agreement with Hanning Jin to extend the loan term of the loan
receivable balance of $8,957 (or RMB65,000) for one year. In January 2025, Global Mofy China renewed the interest-free loan with
Hanning Jin for one year.

**NOTE 6 — INTANGIBLE ASSETS, NET**

Intangible assets, net consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **As of March 31, 2025** | **As of March 31, 2025** |
|  | **(Unaudited)** | **(Unaudited)** |
|  | **Gross<br> Carrying<br> Amount** | **Accumulated<br> Amortization** |
|  | **US$** | **US$** |
| Intangible assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Licensed digital assets | $60598690 | (11159595) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $60598690 | (11159595) |

---

---

| | | |
|:---|:---|:---|
|  | **As of September 30, 2024** | **As of September 30, 2024** |
|  | **Gross<br> Carrying<br> Amount** | **Accumulated<br> Amortization** |
|  | **US$** | **US$** |
| Intangible assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Licensed digital assets | $44733835 | $(5937573) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $44733835 | $(5937573) |

---

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| | |
|:---|:---|
| **Aggregate Amortization expenses:** | |
| For six months ended 3/31/2025 | $(5417658) |
| **Estimated Amortization Expenses:** |  |
| For year ended 3/31/2026 | $12065192 |
| For year ended 3/31/2027 | $12129958 |
| For year ended 3/31/2028 | $12006452 |
| For year ended 3/31/2029 | $10293699 |
| For year ended 3/31/2030 | $2943794 |

---

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 6 — INTANGIBLE ASSETS, NET** (cont.)

The movement of intangible assets is as follows:

---

| | | |
|:---|:---|:---|
|  | **As of March 31, 2025** | **As of March 31, 2025** |
|  | **Gross<br> Carrying<br> Amount** | **Accumulated<br> Amortization** |
|  | **(Unaudited)** | **(Unaudited)** |
| Balance at beginning of the year | $44733835 | 5937573 |
| Additions<sup>(a)</sup> | 17338784 | 5417658 |
| Disposal |  |  |
| Foreign exchange translation | (1473929) | (195636) |
| Balance at end of the year | $60598690 | 11159595 |

---

---

| | | |
|:---|:---|:---|
|  | **As of September 30, 2024** | **As of September 30, 2024** |
|  | **Gross<br> Carrying<br> Amount** | **Accumulated<br> Amortization** |
|  | **US$** | **US$** |
| Balance at beginning of the year | $6918572 | $412780 |
| Additions<sup>(a)</sup> | 37540792 | 5365220 |
| Disposal |  |  |
| Foreign exchange translation | 274471 | 159573 |
| Balance at end of the year | $44733835 | $5937573 |

---

(a) Additions are all acquired from third-party suppliers in the current period.

Amortization expense was $5,417,658 and $1,631,370 for the six months ended March 31, 2025 and 2024, respectively. Costs incurred to renew or extend the term of recognized intangible assets are capitalized and amortized over the useful life of the asset. For the six months ended March 31, 2025 and 2024, no such cost incurred.

**NOTE 7 — LEASES**

The Company's leasing activities primarily consist of eight operating leases for offices and vehicles. ASC 842 requires leases to recognize right-of-use assets and lease liabilities on the balance sheet. The Company has elected an accounting policy to not recognize short-term leases (one year or less) on the balance sheet.

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **September 30,<br> 2024** |
|  | **(Unaudited)** | |
| Operating lease right-of-use assets | $471411 | 660946 |
| Operating lease liabilities – current | $308028 | 270183 |
| Operating lease liabilities – noncurrent | 139442 | 308575 |
| Total operating lease liabilities | $447470 | 578758 |

---

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 7 — LEASES** (cont.)

The weighted-average remaining lease term and the weighted-average discount rate of leases are as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **September 30,<br> 2024** |
| Weighted-average remaining lease term (years) | 1.47 | 1.94 |
| Weighted-average discount rate | 4.75% | 4.75% |

---

During the six months ended March 31, 2025 and 2024, the Company incurred total operating lease expenses of $180,753 and $429, respectively.

The following table summarizes the maturity of operating lease liabilities as of March 31, 2024:

---

| | |
|:---|:---|
| **12 months ending March 31,** | ***Operating*** |
|  | **US$** |
| 2026 | $321667 |
| 2027 | 140388 |
| Thereafter |  |
| Total lease payments | 462055 |
| Less: imputed interest | (14585) |
| Total lease liabilities | $447470 |

---

**NOTE 8 — SHORT-TERM BANK LOANS**

Short-term bank loans represent amounts due to various banks maturing within one year. The principal of the borrowings is due at maturity. Accrued interest is due either monthly or quarterly. Short-term borrowings consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **September 30,<br> 2024** |
|  | **(Unaudited)** | |
| Bank of China<sup>(1)</sup> | $413411 | 427497 |
| Bank of Nanjing<sup>(2)</sup> | 413411 | 427497 |
| Bank of Huaxia<sup>(3)</sup> | 1378036 | 1424988 |
| Bank of Hangzhou<sup>(4)</sup> | 551215 | 712495 |
| Bank of Zheshang<sup>(5)</sup> | 2342662 | 2422480 |
| Deferred financing costs<sup>(6)</sup> | 10949 | (17436) |
| Total | $5109684 | 5397521 |

---

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 8 — SHORT-TERM BANK LOANS** (cont.)

(1) On
August 24, 2024, the Company entered into a new loan agreement with Bank of China to obtain a loan of $427,497 (or RMB 3,000,000) for
the period from August 26, 2024 to September 26, 2025 with a floating annual interest rate. The loan is guaranteed by a third party,
Beijing Shichuang Tongsheng Financing Guarantee Limited. The Company is required to make quarterly interest payment with principal due
at maturity. The balance of this loan on March 31, 2025 was $413,411(or RMB 3,000,000).

(2) On
March 18, 2024, Global Mofy China and Bank of Nanjing entered into a loan agreement to borrow $284,998 (or RMB 2,000,000) of loan for
the period from March 20, 2024 to March 19, 2025 with an annual interest rate of 5%. Mr. Haogang, Yang, the Chairman of the Company's
board of directors and CEO, together with his wife, Ms. Dong Mingxing and Ms. Wenjun Jiang, the CTO of the Company, guaranteed the repayment
of these loans. The Company repaid the loan on March 19, 2025.

On September 30, 2024, Global Mofy China and Bank of Nanjing entered into a loan agreement to borrow $142,499 (or RMB 1,000,000) of loan for the period from September 30, 2024 to September 29, 2025 with an annual interest rate of 5.2%. Mr. Haogang, Yang, the Chairman of the Company's board of directors and CEO guaranteed the repayment of these loans. The balance of this loan on March 31, 2025 was $137,804(or RMB 1,000,000).

On March 11, 2025, Global Mofy China and Bank of Nanjing entered into a loan agreement to borrow $275,607 (or RMB 2,000,000) of loan for the period from March 11, 2025 to September 10, 2026 with an annual interest rate of 5.2%. Mr. Haogang, Yang, the Chairman of the Company's board of directors and CEO guaranteed the repayment of these loans.

(3) On
June 7, 2024, Global Mofy China and Huaxia Bank entered into a loan agreement to borrow $712,494 (or RMB 5,000,000) of loan for the period
from June 17, 2024 to June 17, 2025 with a floating annual interest rate. The loan is guaranteed by a third party, Beijing Zhongguancun
Technology Financing Guarantee Limited. The balance of this loan on March 31, 2025 was $689,018 (or RMB 5,000,000).

On September 25, 2024, Global Mofy China and Huaxia Bank entered into a loan agreement to borrow $712,494 (or RMB 5,000,000) of loan for the period from September 27, 2024 to September 27, 2025 with a floating annual interest rate. The loan is guaranteed by a third party, Beijing Zhongguancun Technology Financing Guarantee Limited. The balance of this loan on March 31, 2025 was $689,018 (or RMB 5,000,000).

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 8 — SHORT-TERM BANK LOANS** (cont.)

(4) On
May 17, 2024, Global Mofy China entered into a loan agreement with Bank of Hangzhou to obtain a loan of $284,998 (or RMB 2,000,000) for
a term from May 23, 2024 to March 20, 2025 at a fixed annual interest rate of 4.2%. The loan is guaranteed by a third party, Beijing
Yizhuang Guoji Financing Guarantee Limited. The Company repaid one of the loans on March 19, 2025, with an amount of $137,804 (or RMB
1,000,000). The balance of this loan on March 31, 2025 was $137,804 (or RMB 1,000,000).

On July 8, 2024, Global Mofy China entered into a loan agreement with Bank of Hangzhou to obtain a loan of $427,497 (or RMB 3,000,000) for a term from July 8, 2024 to January 4, 2025 at a fixed annual interest rate of 4.2%. The Company repaid the loan on January 4, 2025.

On January 8, 2025, Global Mofy China entered into a loan agreement with Bank of Hangzhou to obtain a loan of $413,411 (or RMB 3,000,000) for a term from January 8, 2025 to July 7, 2025 at a fixed annual interest rate of 4.2%.

(5) On
April 24, 2024, Global Mofy China entered into a loan agreement with Bank of Zheshang to obtain a loan of $1,211,240 (or RMB 8,500,000)
for a term from April 24, 2024 to April 24, 2025 at a fixed annual interest rate of 4.3%. The balance of this loan on March 31, 2025
was $1,171,331 (or RMB 8,500,000).

On August 30, 2024, Global Mofy China entered into a loan agreement with Bank of Zheshang to obtain a loan of $1,211,240 (or RMB 8,500,000) for a term from August 30, 2024 to February 28, 2025 at a fixed annual interest rate of 4.2%. The Company repaid the loan on February 28, 2025.

On March 13, 2025, Global Mofy China entered into a loan agreement with Bank of Zheshang to obtain a loan of $1,171,331 (or RMB 8,500,000) for a term from March 13, 2025 to March 13, 2026 at a fixed annual interest rate of 4.2%.

(6) In
order to obtain the guarantees provided by the third-party guaranty company for the loans from banks, the Company incurred guarantee
fees, which are deferred and presented on the consolidated balance sheets as a direct adjustment from the carrying amount of the loans
and amortized to interest expense over the term of the associated loans.

For the six months ended March 31, 2025 and 2024, the weighted average annual interest rate for the bank loans was approximately 3.97% and 5.87%, respectively. Interest expenses for the above-mentioned loans amount to $145,354 and $58,590 for the six months ended March 31, 2025 and 2024, respectively.

**NOTE 9 — RELATED PARTY TRANSACTIONS AND BALANCES**

*Nature of relationships with related parties:*

---

| | |
|:---|:---|
| **Name** | **Relationship with the Company** |
| Mr. Haogang Yang | Director of the Company |
| Mr. Yuchao Lu | Directly holds a 5.05% equity interest in the Company |
| Lianyungang Zongteng Film Studio | Controlled by Mr. Yuchao Lu |
| Mori Enterprise Management (Beijing) Partnership | Controlled by Mr. Haogang Yang |
| Qi Fei Shanghai Technology Co., Ltd. | Controlled by Mr. Haogang Yang |
| Mofy Filming (Hainan) Co., Ltd. ("Mofy Hainan") | Ms. Yang Li is the Finance Controller of Mofy Hainan |

---

*Balances with related parties*

As of March 31, 2025 and September 30, 2024, the balances with related parties were as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **September 30,<br> 2024** |
|  | **(Unaudited)** | |
|  | **US$** | **US$** |
| **Due to a related party** | | |
| Mr. Haogang Yang | $22413 | $50380 |
| **Due from related parties** |  |  |
| Mori Enterprise Management (Beijing) | $138 | $142 |
| Partnership Qi Fei Shanghai Technology Co., Ltd. | 18879 | 19523 |

---

(a) As
of March 31, 2025, the balance of Qi Fei Shanghai Technology Co.,
Ltd. $18,879 (RMB 137,000) and Mori Enterprise Management (Beijing) Partnership $138 (RMB 1,000)
represented interest-free loan for working capital purpose.

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 10 — TAXES**

*Corporation Income Tax ("CIT")*

<u>Cayman Islands</u>

Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders.

<u>Hong Kong</u>

Global Mofy HK is incorporated in Hong Kong and is subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate for the first HKD$2 million of assessable profits is 8.25% and assessable profits above HKD$2 million will continue to be subject to the rate of 16.5% for corporations in Hong Kong, effective from the year of assessment 2018/2019. Global Mofy HK did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since inception. Under Hong Kong tax laws, Global Mofy HK is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends.

<u>PRC</u>

Under the Enterprise Income Tax ("EIT") Law of the PRC, domestic enterprises and Foreign Investment Enterprises (the "FIE") are usually subject to a unified 25% EIT rate while preferential tax rates, tax holidays, and even tax exemption may be granted on case-by-case basis.

Kashi Mofy is subject to a five- year income tax holiday since generating revenues, as it is incorporated in the Kashi Economic District, Xinjiang province. The five-year income tax holiday of Kashi Mofy will end on December 31, 2023. Starting from January 1, 2024, Kashi Mofy is eligible for a preferential tax rate of 9%.

Zhejiang Mofy has complied with PRC tax laws and met the qualifications for domestic small and micro enterprises, Zhejiang Mofy is eligible for a preferential tax rate of 5% in 2024.

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 10 — TAXES** (cont.)

In accordance with the implementation rules of EIT Laws, a qualified "High and New Technology Enterprise" ("HNTE") is eligible for a preferential tax rate of 15%. The HNTE certificate is effective for a period of three years. An entity could re-apply for the HNTE certificate when the prior certificate expires. "Global Mofy China" obtained its HNTE certificate on October 21, 2020 and re-applied its HNTE certificate on October 26, 2023. Therefore, "Global Mofy China" is eligible to enjoy a preferential tax rate of 15% from 2020 to 2025 to the extent it has taxable income under the EIT Law.

The provision for income tax consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **For the Six Months ended<br> March 31,** | **For the Six Months ended<br> March 31,** |
|  | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** |
| Current income tax expense | $71056 | $20305 |
| Uncertain tax provisions | 213228 | 2416499 |
| Deferred income tax expense |  |  |
| Income tax provision | $284284 | $2436804 |

---

The following table reconciles the statutory rate to the Company's effective tax rate:

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended<br> March 31,** | **For the Six Months Ended<br> March 31,** |
|  | **2025** | **2024** |
| PRC statutory tax rate | 25.0% | 25.0% |
| Effect of tax holiday and preferential tax rate<sup>(a)</sup> | (12.8)% | 0.3% |
| Additional deduction for R&D expenses | (11.9)% | (0.3)% |
| Non-deductible expenses |  | 0.9% |
| Effect of change in valuation allowance | 17.2% | (0.2)% |
| Effect of different tax rates in a foreign jurisdiction | (12.3)% | (6.6)% |
| Effective tax rate | 5.2% | 19.1% |

---

(a) The
Company's subsidiaries, Global Mofy China, Kashi Mofy, Shanghai Mofy, Xi'an Mofy and Beijing Mofy are subject to different
favorable tax rates and tax holiday for the six months ended March 31, 2025 and 2024. For the six months ended March 31,
2025 and 2024, the tax saving as the result of the favorable tax rate and tax holiday amounted to $697,343 and $37,209, respectively.

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 10 — TAXES** (cont.)

 

*Deferred tax assets and liabilities*

 

Components of deferred tax assets and liabilities were as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **September 30,<br> 2024** |
|  | **(Unaudited)** | |
| Provision for doubtful debt | $177219 | $90495 |
| Tax loss carry forwards | 1428437 | 719659 |
| Excess marketing and advertising expense (15%) |  | 10687 |
| Operating lease liabilities | 67121 | 86057 |
| Total deferred tax assets | 1672777 | 906898 |
| Less: Valuation allowance | (1600774) | (806319) |
| Total deferred tax assets, net of valuation allowance | $72003 | $100579 |

---

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **September 30,<br> 2024** |
|  | **(Unaudited)** | |
| Right of use assets | $72003 | $100579 |
| Total deferred tax liabilities | 72003 | 100579 |
| Total deferred tax assets, net | $— | $— |

---

The Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets, which are composed principally of net operating loss carryforwards. Under the applicable accounting standards, management expects to continue to maintain a significant investment in research and development, given the Company's history of losses, as the Company increases research and development of its digital assets in the future. At the same time, the Company's management believes that customer development for digital assets and the Company's visibility in the digital assets industry will take several years to build, which will result in the Company continuing to lose money over the next few years. So, the management concluded that it is more likely than not that the Company will not generate future taxable income prior to the expiration of the majority of net operating losses, and it was considered that valuation allowance should be fully accrued. Accordingly, as of March 31, 2025 and September 30, 2024, a $1,600,774 and $806,319 valuation allowance has been established, respectively.

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 10 — TAXES** (cont.)

 

*Uncertain Tax Position*

A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **September 30,<br> 2024** |
|  | **(Unaudited)** | |
| Balance as of beginning of year | $1940649 | 1066949 |
| Increase related to prior year tax positions |  | 26252 |
| Increase related to current year tax positions | 213228 | 847448 |
| Balance as of end of year | $2153877 | 1940649 |

---

As of March 31, 2025 and September 30, 2024, there were $2,153,877 and $1,940,649 of unrecognized tax benefits, respectively, which would affect the effective tax rate if recognized.

In general, the PRC tax authority has up to five years to contact examinations of the Company's tax filings. As of March 31, 2025, tax years ended December 31, 2020 through December 31, 2024 for the Company's PRC subsidiaries remain open for statutory examination by PRC tax authorities.

*Tax payable*

 

Tax payable consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **September 30,<br> 2024** |
|  | **(Unaudited)** | |
| VAT payable | $(729587) | $93278 |
| Corporate income tax payable | 2153877 | 1940649 |
| Other tax | 1687 | 1726 |
| Tax payable | $1425977 | $2035653 |

---

**NOTE 11 — EQUITY**

**Ordinary shares**

The Company was established under the laws of the Cayman Islands on September 29, 2021. The authorized number of ordinary shares upon incorporation of the Company was 5,000,000,000 shares with a par value of $0.00001 per share, and 1,666,667 (Pre-split 25,000,000) ordinary shares were issued on September 29, 2021.

On January 15, 2022, the Company issued 43,544 (Pre-split 653,155) ordinary shares at par value $0.00003 (Pre-split $0.000002) per share to a new investor, Viru Technology Limited (the "Viru Technology"). The total cash consideration of $2,000,000 was received in April 2022.

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 11 — EQUITY** (cont.)

On September 16, 2022, the Company's shareholders and Board of Directors approved a 1-to-5 share split, following which the authorized share capital of $50,000 was divided into 25,000,000,000 ordinary shares with a par value of $0.000002 each, and the issued shares was divided into 1,666,667 (Pre-split 25,000,000) ordinary shares. On September 16, 2022, all the existing shareholders of the Company surrendered a total of 1,653,155 ordinary shares of $0.00003 (pre-split $0.000002) par value each for no consideration, of which 2,743 (Pre-split 41,155) ordinary shares were surrendered by Viru Technology. The Company has cancelled the 1,653,155 of surrendered shares concurrently. The Company believes it is appropriate to reflect the share split on a retrospective basis pursuant to ASC 260. The Company has retrospectively restated all shares and per share data for all periods presented.

On November 15, 2022, all existing shareholders surrendered in an aggregative of 25,464 (Pre-split 381,963) ordinary shares on a pro-rata basis for no consideration. The Company has cancelled the 25,464 (Pre-split 381,963) of surrendered shares concurrently. On the same day, the Company, together with Mr. Haogang Yang, our founder and CEO, certain BVI founder entities and all its subsidiaries in Hong Kong and mainland China, entered into an equity investment agreement with Standard International Capital Partners SPC (for and on behalf of Standard International Capital Partners Fund I SP), a segregated portfolio company organized and existing under the laws of the Cayman Islands (the "Investor"), pursuant to which the Investor agreed to invest $1.5 million in Global Mofy Cayman for 25,464 (Pre-split 381,963) ordinary shares.

On February 10, 2023, the Company entered into a share purchase agreement with Anguo Jijian Enterprise Management Co., Ltd ("Anguo"), Anjiu Jiheng Enterprise Management Co., Ltd ("Anjiu"), and Anling Management Co., Ltd ("Anling"), pursuant to which the Company issued 49,389 (Pre-split 740,829), 49,389 (Pre-split 740,829), and 29,633 (Pre-split 444,497) ordinary shares, par value US$0.00003 (Pre-split $0.000002), to Anguo, Anjiu, and Anling, respectively, for an aggregate issue price of $9.4 million (RMB65,000,000). All of the $9.4 million was received at the end of March 2023.

In October 2023, the Company completed its initial public offering, issued and sold 82,667 (Pre-split 1,240,000) Ordinary Shares, of which 80,000 (Pre-split 1,200,000) shares related to the public offering, and 2,667 (Pre-split 40,000) shares related to an over-allotment arrangement, at $75.00 per share for $6.2 million. The net proceeds of $5.2 million after deducting underwriting discounts and the offering expenses payable were received by the Company.

On December 29, 2023, the Company reached an agreement to sell 91,954 (Pre-split 1,379,313) ordinary shares accompanying warrants of 137,931(Pre-split 2,068,970) shares to two institutional investors established in the United States and Canada respectively, at $108.75 per share for $10.0 million ("the Transaction"). The date of original issuance is January 3, 2024 ("Issuance Date"). The net proceeds of $8.9 million were received on January 4, 2024.

On July 5, 2024, the investors in the United States, Ltd. based on the Transaction, converted its 1,241,381 warrants that the applicable Alternate Cashless Exercise Amount is 33,103 (Pre-split 496,553) shares of Common Stock. On July 10, 2024, the investors in the Canada based on the Transaction, converted its 827,589 warrants that the applicable Alternate Cashless Exercise Amount is 22,069 (Pre-split 331,036) shares of Common Stock.

On August 15, 2024, the Company filed its Amended and Restated Memorandum and Articles of Association to designate 3,000,000,000 authorized shares as Class B ordinary shares and reclassify the remaining original ordinary shares into Class A ordinary shares, each having one (1) vote per share and the other rights attached to it as set out in the Class A Ordinary Shares on a one for one basis. Concurrently, the Company repurchased 848,203 (Pre-split 12,723,036) Class A ordinary shares that indirectly held by Mr. Yang, the Company's chief executive officer, for a total of $26 and sold 848,203 (Pre-split 12,723,036) Class B ordinary shares to him for the same amount.

On October 7, 2024, the Company adopted a share incentive plan which provides 220,000 (Pre-split 3,300,000) shares of stock, par value US$0.00003 (Pre-split US$0.000002), to the Equity Incentive Plan to members of the board, and employees of the Company. Pursuant to the Equity Incentive Plan, the Company issued 220,000 (Pre-split 3,300,000) Class A ordinary shares to its management on October 31, 2024.

On October 13, 2024, the Company issued and sold 333,333 (Pre-split 5,000,000) Class A accompanying warrants of 666,667 (Pre-split 10,000,000) shares. The net proceeds of $2.5 million were received in October, 2024.

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 11 — EQUITY** (cont.)

On November 1, 2024, the Company filed another Amended and Restated Memorandum and Articles of Association to modify authorized shares of Class A ordinary shares to 30,000,000,000, $0.00003 par value, and authorized shares of Class B ordinary shares to 4,000,000,000, $0.00003 par value.

On November 26, 2024, the Company effected a reverse stock split at a ratio of 15-to-1. All the shares and share price in the accompanying consolidated financial statements and notes have been retrospectively adjusted to reflect the effect of the reverse stock split.

On February 17, 2025, the Holders exercised an aggregate of 18,237,500 Warrants through an alternative cashless exercise option, and the Company issued 14,590,000 Class A ordinary shares on the same day.

**Warrants** ("The Warrant")

The movement of warrants is as follows:

---

| | | |
|:---|:---|:---|
|  | **As of March 31, 2025**<br> **(Unaudited)** | **As of March 31, 2025**<br> **(Unaudited)** |
|  | **Valuation** | **Shares** |
|  | **US$** | **US$** |
| Balance at beginning of the year | $— | $— |
| Issuance<sup>(a)</sup> | 14493455 | 666667 |
| Exercise price adjustment<sup>(b)</sup> | 14493455 | 19801980 |
| Fair value changes<sup>(c)</sup> | (3734131) |  |
| Exercise<sup>(c)</sup> | 9909270 | 18237500 |
| Balance at end of the year | $850054 | 1564480 |

---

(a) On
October 13, 2024, the Company issued and sold 333,333 (Pre-split 5,000,000) Class A accompanying warrants of 666,667 (Pre-split
10,000,000) shares. The Company had received the net proceeds of $2.5 million on October, 2024. The Company uses the Binominal
Tree pricing model to value the warrants, and the fair value allocated to the warrants at the date of issuance was $14,493,455.

(b) According
to the terms of the Warrant and the SPA agreement, on the 14th trading day after the signing date, the exercise price of the Warrant
will be adjusted to 20% of the closing price before the signing date. The total value of the warrants remains unchanged, and the number
of warrants after adjustment is 19,801,980 (Pre-split 297,029,703).

(c) As
of the date of exercise, the fair value of the warrants liability was $10,759,324 resulting in a gain on changes in fair value
of $3,734,131. On February 17, 2025, 18,237,500 warrants were exercised. After this exercise, the number of remaining unexercised warrants
is 1,564,480, with a corresponding fair value of $850,054.

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 11 — EQUITY** (cont.)

**Stock-based compensation**

On October 7, 2024, the Company adopted a share incentive plan which provides 220,000 (Pre-split 3,300,000) shares of stock, par value US$0.00003 (Pre-split US$0.000002), to the Equity Incentive Plan to members of the board, and employees of the Company. The shares underlying the Plan (and therefore any shares that may be issued pursuant to the Plan) will be class A Ordinary Shares of US$0.000002 par value each (the Class A Shares) of the Company ranking (upon their issue) pari passu with the Class A Shares that are already issued. The Company has sufficient authorized and unissued Class A Shares available in order to be able to satisfy in full the issuance by the Company of the maximum aggregate number of Class A Shares underlying the Plan and issuable upon exercise and/or settlement of any Award pursuant to the terms and conditions of the Plan and to comply with its obligations under the Plan. Participation shall be limited to Eligible Persons who have entered into an Award agreement or who have received written notification from the Committee, or from a person designated by the Committee, that they have been selected to participate in this Plan. The Plan became effective immediately.

Pursuant to the Equity Incentive Plan, the Company issued 220,000 (Pre-split 3,300,000) Class A ordinary shares to its management in October 30, 2024, immediately exercisable on the date of issue.

As of March 31, 2025, all of the equity related to the above equity incentive plan has been granted.

**Statutory reserve**

In accordance with the PRC Company Laws, the Company's subsidiaries in the PRC are required to provide for statutory reserves, which are appropriated from net profit as reported in the Company's PRC statutory accounts. They are required to allocate 10% of their after-tax profits to fund statutory reserves until such reserves have reached 50% of their respective registered capital. These reserve funds, however, may not be distributed as cash dividends. As of September 30, 2024 and 2023, the statutory reserves of the Company's PRC subsidiaries have not reached 50% of their respective registered capital. As of March 31, 2025 and September 30, 2024, the Company's PRC subsidiaries collectively attributed $1,926,547 and $1,926,547 of retained earnings for their statutory reserves, respectively.

**Restricted net assets**

The Company's ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Company's PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company's subsidiaries.

**GLOBAL MOFY AI LIMITED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 11 — EQUITY** (cont.)

Foreign exchange and other regulations in the PRC may further restrict the Company's subsidiaries from transferring funds to the Company in the form of dividends, loans and advances. Amounts restricted include paid-in capital and statutory reserves of the Company's PRC subsidiaries as determined pursuant to PRC generally accepted accounting principles. As of March 31, 2025 and September 30, 2024, restricted net assets of the Company's PRC subsidiaries were $6,148,819 and $5,623,821, respectively.

**NOTE 12 — EARNINGS PER SHARE**

Basic and diluted earnings per share is calculated as follows

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended March 31,** | **For the Six Months Ended March 31,** |
|  | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** |
| **Numerator:** |  |  |
| Net income attributable to GLOBAL MOFY AI LIMITED | $5039635 | $10319418 |
| **Denominator:** |  |  |
| Denominator for basic earnings per share: |  |  |
| Weighted average Class A ordinary shares outstanding |  |  |
| —basic and diluted | 4936998 | 1910544 |
| Earnings (loss) per Class A ordinary share – basic and diluted | 0.87 | 5.40 |
| Weighted average Class B ordinary shares outstanding |  |  |
| —basic and diluted | 848203 |  |
| Earnings (loss) per Class B ordinary share – basic and diluted | $0.87 | $— |

---

**NOTE 13 — SUBSEQUENT EVENTS**

On April 1, 2025, the Company's wholly owned subsidiary, Global Mofy HK, entered into a Shareholders Agreement with the other investor and the founder shareholders. Pursuant to the Shareholders Agreement, Global Mofy HK will invest an amount of US$201,000 into Wetruck to subscribe 6.7% of its equity interests. Global Mofy HK made a cash payment of $201,000 on June 9, 2025.

On April 15, 2025, the Company issued and sold 2,030,460 Class A Ordinary Shares accompanying warrants of 2,030,460 shares to several accredited investors. The purchase price of each Share and Warrant is $1.97. The net proceeds of $2.42 million were received on October 31, 2024.

On April 24, 2025, the Company entered into an employment agreement with each of Mr. Haogang Yang, the Chief Executive Officer of the Company, Mrs. Wenjun Jiang, the Chief Technology Officer of the Company, and Mr. Nan Zhang, the Chief Marketing Officer of the Company (collectively, the "Officers"). The Officers shall be eligible to receive performance-based equity compensation in the form of Class B Ordinary Shares pursuant to the milestones as set forth in the Employment Agreements (together with the Shares, the "Incentive Shares"). Pursuant to the Employment Agreements, the Officers shall receive an aggregate of 2,875,772 Class B ordinary shares of the Company.

## Exhibit 99.3

**Exhibit 99.3**

**Global Mofy Reports YoY 34.2% Increase in Revenue for the Six Months Ended March 31, 2025, Driven by Continued Efforts in R&D**

● Revenue achieved $26.7 million, up 34.2% from $19.9 million.

● R&D investments totaled $5.8 million, up from $0.8 million in the same period last year.

● Net Income was $5.0 million, or $1.19 per share.

BEIJING, August 18, 2025 — Global Mofy AI Limited (the "Company" or "Global Mofy") (Nasdaq: GMM), a generative AI-driven technology solutions provider engaged in virtual technology services and digital assets development for use in the broader digital content industry, today reported its financial results for the six months ended March 31, 2025, showing strong revenue growth of 34.2%, driven by increases in both virtual technology services and digital asset development business lines.

"The revenue growth in the first half of 2025 clearly demonstrates the ongoing efforts and contributions of the Global Mofy team in driving the company's innovation and technological advancements. It also reflects the growing demand in the market for Global Mofy's AI-driven virtual content solutions and 3D digital assets, as well as our leadership position in the industry. Despite some operational cost increases, our continued focus on innovation and AI integration sets us up for further growth," said **Haogang Yang, founder and CEO of Global Mofy**. "The future of content creation is being reshaped by generative AI technologies, and we remain committed to leading this transformation."

"In terms of research and development, while our previous R&D investments were relatively modest, we recognize the critical role of innovation in our continued growth. Starting in 2025, with the establishment of Gauss AI Lab and the ongoing expansion of our 3D digital asset library, we are significantly increasing our R&D focus. As a fast-growing company, it is crucial that we invest in cutting-edge technologies, and this expanded R&D initiative will help fuel the future growth of our business, ensuring that we remain at the forefront of the AI-driven digital content industry."

**Financial Results for the Six Months Ended March 31, 2025**

● **Revenue** for the six months ended March 31, 2025 increased by **34.2%** to **$26.7 million**, from $19.9 million in the same period last year. This revenue increase reflects the recovery in the digital content and entertainment industry, as well as strong growth in virtual technology services and digital asset development, both benefiting from AI-driven innovations.

● **Cost of revenues** increased by 84.3% to **$14.9 million**, compared to $8.1 million in the same period last year. The increase is primarily due to higher amortization costs of digital assets, which were allocated to this period.

● **Gross profit** was **$11.8 million**, a slight decrease of 0.1% compared to $11.8 million in the previous year. The strong revenue growth was tempered by increased costs associated with the expanded digital asset development and AI technology development efforts. Nonetheless, gross margin for Virtual technology services increased to 36.9% from 28.5% last year, due to the completion of higher-margin projects in the first half of 2025.

● **Operating expenses** increased to **$10.1 million**, from $5.1 million in the same period last year. This increase was largely driven by a rise in research and development (R&D) expenses, totaling $5.8 million. The Company's strategic focus on AI-driven innovation, particularly through the Gauss AI Lab and the development of new digital assets, drove these investments. While this increased operational expenditure temporarily impacted profits, it is expected to fuel long-term growth.

● **Operating income** was **$1.7million**, compared to $6.7 million in the same period last year. The decrease is primarily due to the rise in operating expenses, including substantial increases in R&D investments and amortization costs for digital assets. However, the company continues to maintain a strong operational model and anticipates that these investments will pay off in the longer term.

● **Net income** was **$5 million**, or **$1.19 per share**, compared to $10.3 million, or $5.56 per share in the same period last year.

● **R&D** investments were **$5.8 million**, up from $0.8 million in the same period last year. This increase is driven by the expansion of the Gauss AI Lab and higher technical service fees. The Company is positioning itself as a leader in generative AI content creation, and these investments are essential to ensure its continued technological edge.

● **Total current assets** as of March 31, 2025, stood at **$14.0 million**, including $6.0 million in cash and short-term investments. This provides a solid liquidity position to support Global Mofy's ongoing growth initiatives.

**Operational and Strategic Highlights**

*Global Mofy achieved progress since its previous earnings announcement in these areas:*

● **Global Mofy Recognized as a Beijing "Specialized and New" SME** by the Municipal Bureau of Economy and Information Technology. This recognition underscores Global Mofy's unwavering commitment to innovation, specialized expertise, and its dedication to advancing emerging technologies.

● **Launch of "Mofy Clips" Brand to Expand Presence in the Short Drama Market:** The Company has announced the official launch of its short drama brand, "Mofy Clip." As part of this initiative, the Company participated as a co-producer with China Literature, a pioneer in China's online literature market, in a newly released short drama under China Literature's short drama brand, Yuewen Short Drama, further solidifying its commitment to the fast-growing short drama market. Yuewen Short Drama is one of the leading short drama producers in China.

● **Launch of Gauss AI Lab:** a fully integrated AI ecosystem that unifies the Company's existing technologies, products, and research and development ("R&D") efforts into a comprehensive AI-powered content solution. Gauss AI Lab will be developed under Gauss Intelligence (Beijing) Technology Co., Ltd., a wholly owned subsidiary of the Company focusing on driving cutting-edge AI research and application development, which previously partnered with NVIDIA Omniverse to launch the Gausspeed generative AI platform.

● **Global Mofy Strategically Invests in Ethiopian Digital Freight Platform Wetruck AI:** This strategic investment marks the Company's first direct market entry into Africa and supports its broader global AI strategy. Wetruck AI is a digital freight platform headquartered in Ethiopia and represents an opportunity to apply AI technologies to advance logistics innovation in Africa, a high-growth, under-digitized sector.

**About Global Mofy AI Limited**

Global Mofy AI Limited (Nasdaq: GMM) is a generative AI-driven technology solutions provider engaged in virtual content production, and the development of digital assets for the digital content industry. Utilizing its proprietary "Mofy Lab" technology platform, which consists of interactive 3D and artificial intelligence ("AI") technology, the Company creates high-definition virtual versions of a wide range of physical world objects in 3D ranging from characters, objects to scenes and more. The digital assets can be used in different applications, including movies, TV series, AR/VR, animation, advertising, gaming, and more. Global Mofy is one of the leading digital asset banks in China, which consists of more than 100,000 high-precision 3D digital assets. For more information, please visit www.globalmofy.cn/ or ir.globalmofy.cn.

**Forward-Looking Statement**

This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. These forward-looking statements include, without limitation, the Company's statements regarding the expected trading of its Ordinary Shares on the Nasdaq Capital Market and the closing of the Offering. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the "Risk Factors" section of the registration statement filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

**For more information, please contact:**

Global Mofy AI Ltd.<br> Investor Relations Department<br> ir@mof-vfx.com

**GLOBAL MOFY AI LIMITED<br> UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS<br> (Expressed in U.S. Dollars, except for the number of shares)**

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **September 30,<br> 2024** |
|  | **(Unaudited)** | |
| **ASSETS** | | |
| **Current Assets** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash | $6001157 | $8068560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash |  | 3000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 948911 | 1254613 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances to vendors, net | 6161530 | 5736093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from related parties | 19017 | 19665 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets, net | 916848 | 967613 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | $**14047463** | $**19046544** |
| &nbsp;&nbsp;&nbsp;**Non-current assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term investment | 275607 | 284998 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 20279 | 13420 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets, net | 49439095 | 38796262 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 471411 | 660946 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances to vendor – noncurrent | 253325 | 261956 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other non-current assets, net | 123523 | 127732 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total non-current assets** | **50583240** | **40145314** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Assets** | $**64630703** | $**59191858** |
| **LIABILITIES AND EQUITY** |  |  |
| &nbsp;&nbsp;&nbsp;**Current Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term bank loans | $5109684 | $5397521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans from third parties | 22738 | 23512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 1756348 | 1213114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances from customers | 5222810 | 3837621 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to a related party | 22413 | 50380 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax payable | 1425977 | 2035653 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 659121 | 553696 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities – current | 308028 | 270183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | **14527119** | **13381680** |
| &nbsp;&nbsp;&nbsp;**Non-current Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities – noncurrent | 139442 | 308575 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrant liability | 850054 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total non-current liabilities** | **989496** | **308575** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Liabilities** | **15516615** | **13690255** |
| **Commitments** |  |  |
| **Equity:** |  |  |
| &nbsp;&nbsp;&nbsp;Class A ordinary shares ($0.00003 par value, 30,000,000,000 shares authorized, 16,673,031 and 1,410,001 shares issued and outstanding as of March 31, 2025 and September 30, 2024, respectively)\* | 500 | 42 |
| &nbsp;&nbsp;&nbsp;Class B Ordinary Shares ($0.00003 par value, 4,000,000,000 shares authorized, 848,203 and 848,203 shares issued and outstanding as of March 31, 2025 and September 30, 2024, respectively) | 26 | 26 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 27131243 | 27796887 |
| &nbsp;&nbsp;&nbsp;Statutory reserves | 2322863 | 1926547 |
| &nbsp;&nbsp;&nbsp;Accumulated earnings | 20380510 | 15737191 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive (loss) | (579562) | 187118 |
| &nbsp;&nbsp;&nbsp;**Total GLOBAL MOFY AI LIMITED shareholders' equity** | **49255580** | **45647811** |
| &nbsp;&nbsp;&nbsp;Non-controlling interests | (141492) | (146208) |
| &nbsp;&nbsp;&nbsp;**Total equity** | **49114088** | **45501603** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and equity** | $**64630703** | $**59191858** |

---

\* Retrospectively restated for effect of reverse share split on November 26, 2024 (see Note 11).

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

**GLOBAL MOFY AI LIMITED<br> UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME<br> (Expressed in U.S. Dollars, except for the number of shares)**

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended<br> March 31,** | **For the Six Months Ended<br> March 31,** |
|  | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** |
| Revenues | $26729054 | $19918959 |
| Cost of revenues | (14926118) | (8100554) |
| Gross profit | 11802936 | 11818405 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Selling expenses | (78369) | (361792) |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | (4229947) | (3907045) |
| &nbsp;&nbsp;&nbsp;Research and development expenses | (5808899) | (839388) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | (10117215) | (5108225) |
| Income from operations | 1685721 | 6710180 |
| Other income (expenses): |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 25227 | 204254 |
| &nbsp;&nbsp;&nbsp;Interest expenses | (145354) | (117858) |
| &nbsp;&nbsp;&nbsp;Issuance costs allocated to warrant liability |  | (823846) |
| &nbsp;&nbsp;&nbsp;Change in fair value of warrant liability | 3734131 | 6743319 |
| &nbsp;&nbsp;&nbsp;Other income, net | 24095 | 40134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income, net | 3638099 | 6046003 |
| Income before income taxes | 5323820 | 12756183 |
| Income tax expense | (284284) | (2436804) |
| Net income | 5039536 | 10319379 |
| Net loss attributable to non-controlling interest | (99) | (39) |
| Net income attributable to GLOBAL MOFY AI LIMITED | $5039635 | $10319418 |
| Comprehensive income |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $5039536 | $10319379 |
| &nbsp;&nbsp;&nbsp;Foreign currency translation gain (loss) | (761865) | 24399 |
| &nbsp;&nbsp;&nbsp;Total comprehensive income | 4277671 | 10343778 |
| &nbsp;&nbsp;&nbsp;Comprehensive loss (gain) attributable to non-controlling interests | 4716 | (1511) |
| Comprehensive income attributable to GLOBAL MOFY AI LIMITED | $4272955 | $10345289 |
| Earnings per common share |  |  |
| – Basic\* | $1.19 | $5.56 |
| – Diluted\* | $0.87 | $5.40 |
| Weighted average number of common shares outstanding |  |  |
| – Basic\* | 4220721 | 1855372 |
| – Diluted\* | 5785201 | 1910544 |

---

\* Retrospectively restated for effect of reverse share split on November 26, 2024 (see Note 11).