Overview

The Company’s continuing operations are focused on its financial services and advisory businesses, which are conducted primarily through its wholly owned subsidiary, Chaince Securities, Inc., together with Chaince Securities, LLC and Ucon Capital (HK) Limited and its subsidiaries in China. These entities are engaged in investment banking, capital markets advisory, transaction execution, brokerage-related services, and related business consulting services.

Recent Developments

During the six months ended June 30, 2026, the Company continued to focus on its financial services and advisory businesses as its primary line of business. No material change occurred in the Company’s principal business strategy during the period. The Company’s financial services operations are primarily conducted through Chaince Securities, Inc. and its affiliated entities. Chaince Securities, LLC, a subsidiary of Chaince Securities, Inc., is a FINRA-registered broker-dealer and registered investment advisor (RIA) that provides investment banking, transaction execution, brokerage-related, and other financial advisory services. Additionally, Ucon Capital (HK) Limited and its PRC subsidiary, Chaince (Shenzhen) Consulting Co., Ltd., continued to provide business consulting and advisory services to clients in the Asia-Pacific region.

The Company expects to continue pursuing growth in its financial services and advisory businesses while maintaining operational discipline and supporting the expansion of its customer base across multiple service lines.

Results of Operations

The Company’s revenue, primarily from financial services and advisory businesses, increased significantly in 2026 compared to 2025. Revenue for the six months ended June 30, 2026 was $970,752, up from $258,569 in the same period of 2025, representing a 275.43% increase. This growth was driven by higher volumes of advisory and consulting engagements, as well as increased transaction execution activities.

Cost of revenue also increased, but at a lower rate than revenue, leading to an improvement in gross profit margin from 37.91% in the first half of 2025 to 45.39% in the first half of 2026. The increase in gross profit margin was primarily due to the higher revenue scale and improved operating leverage in the Company’s financial services and advisory businesses.

Operating expenses, including selling and marketing, general and administrative, and research and development, increased significantly in 2026 compared to 2025, reflecting the expansion of the Company’s financial services and advisory teams and related infrastructure. The increase in operating expenses outpaced the revenue growth, resulting in an operating loss of $2,427,805 for the six months ended June 30, 2026, compared to an operating loss of $1,658,275 in the same period of 2025.

The Company also recognized losses on the market prices of its digital asset holdings, including stablecoins and cryptocurrencies, which contributed to the overall net loss. However, the Company’s net loss for the six months ended June 30, 2026 was $2,457,444, a 13.71% improvement compared to the net loss of $2,847,830 in the same period of 2025.

Liquidity and Capital Resources

As of June 30, 2026, the Company had $30,973,382 in cash and cash equivalents, $12,803,368 in short-term investments, and $1,301,134 in stablecoins and digital assets. The Company’s primary sources of liquidity are existing cash and cash equivalents, cash flows from operating activities, and proceeds from financing activities.

The Company’s net cash provided by operating activities was $98,628 for the six months ended June 30, 2026, compared to net cash used of $1,328,938 in the same period of 2025. This improvement was primarily attributable to reduced working capital outflows and changes in other receivables.

Net cash used in investing activities was $6,784,565 for the six months ended June 30, 2026, primarily related to purchases of short-term investments. Net cash provided by financing activities was $3,839,040, mainly from equity financing.

The Company believes it has sufficient liquidity to fund its operations and anticipated commitments for at least the next twelve months. However, the Company may pursue additional equity or debt financing to support business expansion, strategic investments, or working capital needs, subject to market conditions and the Company’s financial performance.

Outlook

Looking ahead, the Company expects to continue pursuing growth in its financial services and advisory businesses while maintaining operational discipline and supporting the expansion of its customer base across multiple service lines. The Company will also evaluate the scope and pace of its technology infrastructure and tokenization-related development initiatives in light of its broader capital allocation priorities and financial performance objectives.