UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2025

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

For the transition period from ____________ to ____________

Commission File Number 001-34260

ENLIGHTIFY INC.

(Exact name of registrant as specified in its charter)

Nevada		36-3526027
(State or other jurisdiction of		(IRS Employer
incorporation or organization)		Identification No.)

3rd floor, Borough A, Block A. No. 181, South Taibai

Road, Xi’an, Shaanxi province, PRC 710065

(Address of principal executive offices) (Zip Code)

+86-29-88266368

(Issuer’s telephone number, including area code)

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

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

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

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

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

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

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.001 Par Value Per Share		ENFY		OTC Pink

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 15,769,434 shares of common stock, $0.001 par value, as of November 17, 2025.

TABLE OF CONTENTS

		Page Number
PART I	FINANCIAL INFORMATION	1

Item 1.	Financial Statements (unaudited)	1

	Condensed Consolidated Balance Sheets as of September 30, 2025 and June 30, 2025	1

	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three Months Ended September 30, 2025 and 2024	2

	Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended September 30, 2025 and 2024	3

	Condensed Consolidated Statements of Cash Flows for the Three Months Ended September 30, 2025 and 2024	4

	Notes to Condensed Consolidated Financial Statements	5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36

Item 4.	Controls and Procedures	37

PART II	OTHER INFORMATION	38

Item 6.	Exhibits	38

Signatures		39

Exhibits/Certifications		40

INFORMATION RELATING TO FORWARD-LOOKING STATEMENTS

In addition to historical information, this report contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. You can identify such forward-looking statements by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “would” and similar expressions intended to identify forward-looking statements. Forward-looking statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. These forward-looking statements may include, among other things, statements relating to:

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our expectations regarding the market for our products and services;

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our expectations regarding the continued growth of our industry;

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our beliefs regarding the competitiveness of our products;

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our expectations regarding the expansion of our manufacturing capacity;

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our expectations with respect to increased revenue growth and our ability to maintain profitability resulting from increases in our production volumes;

●

our future business development, results of operations and financial condition;

●

competition from other fertilizer and plant producers;

●

the loss of any member of our management team;

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our ability to integrate acquired subsidiaries and operations into existing operations;

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market conditions affecting our equity capital;

●

our ability to successfully implement our selective acquisition strategy;

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changes in general economic conditions;

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changes in accounting rules or the application of such rules;

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any failure to comply with the periodic filing and other requirements of The New York Stock Exchange, or NYSE, for continued listing,

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any failure to identify and remediate the material weaknesses or other deficiencies in our internal control and disclosure control over financial reporting;

Also, forward-looking statements represent our estimates and assumptions only as of the date of this report. You should read this report and the documents that we reference in this report, or that we filed as exhibits to this report, in their entirety and with the understanding that our actual future results may be materially different from what we expect.

Except as required by law, we assume no obligation to update any forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new information becomes available in the future.

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

ENLIGHTIFY INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	September 30, 2025			June 30, 2025
ASSETS
Current assets
Cash and cash equivalents	$	53,253,117		$	52,519,418
Accounts receivable, net		20,678,903			19,345,061
Inventories, net		37,878,957			36,975,287
Advances to suppliers, net		8,649,281			12,367,419
Other current assets		10,855,715			10,395,335
Total current assets		131,315,973			131,602,520

Non-current assets
Plant, property and equipment, net		11,819,207			12,224,583
Intangible assets, net		13,305,067			13,279,462
Other non-current assets		589,578			590,483
Total non-current assets		25,713,852			26,094,528
Total assets	$	157,029,825		$	157,697,048

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	1,526,269		$	1,736,031
Customer deposits		3,441,483			4,526,024
Accrued expenses and other payables		19,288,885			22,289,890
Amount due to related parties		5,913,935			5,886,036
Taxes payable		26,468,505			26,528,836
Short term loans		9,562,517			4,720,934
Total current liabilities		66,201,594			65,687,751

Long-term loans		2,612,556			7,889,627
Total non-current liabilities		2,612,556			7,889,627
Total liabilities	$	68,814,150		$	73,577,378

Commitments and Contingencies		-			-

Stockholders’ Equity
Preferred Stock, $.001 par value, 20,000,000 shares authorized, 0 shares issued and outstanding as of September 30, 2025 and June 30, 2025, respectively		-			-
Common stock, $.001 par value, 115,197,165 shares authorized, 16,116,914 and 16,116,914 shares issued, respectively; 15,769,434 and 15,770,934 shares outstanding as of September 30, 2025 and June 30, 2025, respectively		16,117			16,117
Additional paid-in capital		246,306,702			246,306,702
Statutory reserve		26,906,554			26,787,507
Retained earnings		(159,611,840	)		(160,580,590	)
Less: Treasury Stock		(399,742	)		(398,526	)
Accumulated other comprehensive loss		(25,002,116	)		(28,011,540	)
Total Stockholders’ Equity		88,215,675			84,119,670

Total Liabilities and Stockholders’ Equity	$	157,029,825		$	157,697,048

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

ENLIGHTIFY INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

	Three Months Ended September 30,
	2025			2024
Sales
Jinong	$	6,796,657		$	7,421,658
Gufeng		5,213,257			7,439,542
Yuxing		2,450,597			2,340,444
Antaeus		-			163,295
Net sales		14,460,511			17,364,939
Cost of goods sold
Jinong		4,340,170			4,728,887
Gufeng		4,588,338			6,507,133
Yuxing		2,076,071			1,940,638
Antaeus		-			201,711
Cost of goods sold		11,004,579			13,378,369
Gross profit		3,455,932			3,986,570
Operating expenses
Selling expenses		1,054,106			1,924,428
General and administrative expenses		1,214,227			3,826,904
Change in fair value of Bitcoin		-			262
Total operating expenses		2,268,333			5,751,594
Income (loss) from operations		1,187,599			(1,765,024	)
Other income (expense)
Other income (expense)		6,290			(50,622	)
Interest income		10,767			39,526
Interest expense		(117,127	)		(104,983	)
Total other expense		(100,070	)		(116,079	)
Income (loss) before income taxes		1,087,529			(1,881,103	)
Provision for income taxes		(268	)		(38,878	)
Net Income (loss)	$	1,087,797		$	(1,842,225	)

Other comprehensive income (loss)
Foreign currency translation gain		3,009,424			4,741,241
Comprehensive income	$	4,097,221		$	2,899,016

Basic weighted average shares outstanding		15,770,934			14,793,538
Basic net income (loss) per share	$	0.07		$	(0.12	)

Diluted weighted average shares outstanding		15,770,934			14,793,538
Diluted net income (loss) per share	$	0.07		$	(0.12	)

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

ENLIGHTIFY INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

(UNAUDITED)

					Additional										Accumulated Other Comprehensive			Total
	Number Of		Common		Paid In		Statutory		Retained			Treasury			income			Stockholders’
	Shares		Stock		Capital		Reserve		Earnings			Stock			(loss)			Equity
BALANCE, June 30, 2025		16,116,914	$	16,117	$	246,306,702	$	26,787,507	$	(160,580,590	)	$	(398,526	)	$	(28,011,540	)	$	84,119,670

Net income										1,087,797									1,087,797

Issuance of stock for equity incentive plan

Issuance of stock for convertible notes																			-

Common stock repurchased													(1,216	)					(1,216	)

Transfer to statutory reserve								119,047		(119,047	)								-

Other comprehensive income																3,009,424			3,009,424

BALANCE, September 30, 2025		16,116,914	$	16,117	$	246,306,702	$	26,906,554	$	(159,611,840	)	$	(399,742	)	$	(25,002,116	)	$	88,215,675

	Number Of		Common		Additional Paid In		Statutory		Retained			Accumulated Other Comprehensive income			Total Stockholders’
	Shares		Stock		Capital		Reserve		Earnings			(loss)			Equity
BALANCE, JUNE 30, 2024		14,793,538	$	14,794	$	244,825,844	$	2,672,8079	$	(144,919,001	)	$	(26,550,536	)	$	100,099,180

Net loss										(1,842,225	)					(1,842,225	)
Issuance of stock																-
Transfer to statutory reserve								22,282		(22,282	)					-

Other comprehensive income													4,741,241			4,741,241

BALANCE, SEPTEMBER 30, 2024		14,793,538	$	14,794	$	244,825,844	$	26,750,361	$	(146,783,508	)	$	(21,809,295	)	$	102,998,196

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

ENLIGHTIFY INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Three Months Ended September 30,
	2025			2024
Cash flows from operating activities
Net income (loss)	$	1,087,797		$	(1,842,225	)
Adjustments to reconcile net income (loss) to net cash used in operating activities
Depreciation and amortization		548,827			710,403
Provision for losses on accounts receivable		290,179			632,074
Inventories impairment		107,882			2,038,575
Change in fair value of Bitcoin		-			262
Changes in operating assets
Digital assets		-			42,206
Accounts receivable		(1,497,030	)		(5,759,561	)
Other current assets		(460,379	)		55,875
Inventories		(777,538	)		1,716,380
Advances to suppliers		3,774,885			(3,335,723	)
Other assets		1,366			470,581
Deferred tax assets		(268	)		(38,878	)
Changes in operating liabilities
Accounts payable		(217,950	)		(105,889	)
Customer deposits		(1,106,858	)		2,160,214
Amount due to related parties		21,516			86,979
Tax payables		(44,627	)		6,920
Accrued expenses and other payables		(3,047,493	)		607,896
Interest payable		1,499			-
Net cash used in operating activities		(1,318,192	)		(2,553,911	)

Cash flows from investing activities
Purchase of plant, property, and equipment		(12,952	)		(48,239	)
Long-term equity investment		-			(8,495,862	)
Net cash used in investing activities		(12,952	)		(8,544,101	)

Cash flows from financing activities
Proceeds from loans		-			5,726,880
Repayment of loans		(511,362	)		(3,743,424	)
Repurchases of common stock		(1,216	)		-
Net cash (used in) provided by financing activities		(512,578	)		1,983,456

Effect of exchange rate change on cash and cash equivalents		2,577,421			1,819,541
Net increase (decrease) in cash and cash equivalents		733,699			(7,295,015	)

Cash and cash equivalents, beginning balance		52,519,418			58,772,587
Cash and cash equivalents, ending balance	$	53,253,117		$	51,477,572

Supplement disclosure of cash flow information
Interest expense paid	$	115,628		$	104,983
Income taxes paid	$	53,210		$	66,407

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

ENLIGHTIFY INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

Enlightify Inc. a Nevada corporation (the “Company”, “Parent Company” or “Green Nevada”), formerly known as “China Green Agriculture Inc.”, through its subsidiaries, is engaged in the research, development, production, distribution and sale of humic acid-based compound fertilizer, compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizers, highly concentrated water-soluble fertilizers and mixed organic-inorganic compound fertilizer and the development, production, and distribution of agricultural products.

Unless the context indicates otherwise, as used in this Report, the following are the references herein of all the subsidiaries of the Company (i) Green Agriculture Holding Corporation (“Green New Jersey”), a wholly-owned subsidiary of Green Nevada, incorporated in the State of New Jersey; (ii) Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. (“Jinong”), a wholly-owned subsidiary of Green New Jersey organized under the laws of the PRC; (iii) Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd. (“Yuxing”), a Variable Interest Entity (“VIE”) in the in the PRC controlled by Jinong through a series of contractual agreements; (iv) Beijing Gufeng Chemical Products Co., Ltd., a wholly-owned subsidiary of Jinong in the PRC (“Gufeng”), (v) Beijing Tianjuyuan Fertilizer Co., Ltd., Gufeng’s wholly-owned subsidiary in the PRC (“Tianjuyuan”), and (vi)Antaeus Tech, Inc. (“Antaeus”), a wholly-owned subsidiary of Green Nevada incorporated in the State of Delaware.

On June 30, 2016 the Company, through its wholly-owned subsidiary Jinong, entered into strategic acquisition agreements and a series of contractual agreements with the shareholders of the following six companies that are organized under the laws of the PRC and would be deemed VIEs: Shaanxi Lishijie Agrochemical Co., Ltd. (“Lishijie”), Songyuan Jinyangguang Sannong Service Co., Ltd. (“Jinyangguang”), Shenqiu County Zhenbai Agriculture Co., Ltd. (“Zhenbai”), Weinan City Linwei District Wangtian Agricultural Materials Co., Ltd. (“Wangtian”), Aksu Xindeguo Agricultural Materials Co., Ltd. (“Xindeguo”), and Xinjiang Xinyulei Eco-agriculture Science and Technology co., Ltd. (“Xinyulei”). On January 1, 2017, the Company, through its wholly owned subsidiary Jinong, entered into strategic acquisition agreements and a series of contractual agreements with the shareholders of the following two companies that are organized under the laws of the PRC and would be deemed VIEs, Sunwu County Xiangrong Agricultural Materials Co., Ltd. (“Xiangrong”), and Anhui Fengnong Seed Co., Ltd. (“Fengnong”).

On November 30, 2017, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Zhenbai.

On June 2, 2021, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Xindeguo, Xinyulei and Xiangrong.

On December 1, 2021, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Lishijie.

On December 31, 2021, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Fengnong.

On March 31, 2022, the Company, through its wholly owned subsidiary Jinong, discontinued the strategic acquisition agreements and the series of contractual agreements with the shareholders of Jinyangguang and Wangtian.

On March 13, 2023, the Company established Antaeus Tech Inc. in the State of Delaware. In April 2023, Antaeus started to purchase digital assets mining machines and to mine Bitcoin in West Texas.

On December 27, 2023, the Company entered into a Stock Purchase Agreement with Mr. Zhibiao Pan for the purchase by the Company from Mr. Zhibiao Pan of all the outstanding stock of Lonestar Dream, Inc., a Delaware corporation (“Lonestar”). Mr. Zhibiao Pan served as the Co-Chief Executive Officer of the Company from August 2022 to November 2024 and is the sole shareholder of Lonestar. On June 13, 2025, the Company and Mr. Pan entered into a Mutual Rescission Agreement terminating the Stock Purchase Agreement. Consequently, the acquisition of Lonestar was terminated.

The Company’s current corporate structure is set forth in the diagram below:

NOTE 2 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principle of consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Green New Jersey, Jinong, Gufeng, Tianjuyuan, Yuxing and Antaeus. All significant inter-company accounts and transactions have been eliminated in consolidation.

Effective June 16, 2013, Yuxing was converted from being a wholly owned foreign enterprise 100% owned by Jinong to a domestic enterprise 100% owned one natural person, who is not affiliated to the Company (“Yuxing’s Owner”). Effective the same day, Yuxing’s Owner entered into a series of contractual agreements with Jinong pursuant to which Yuxing became a VIE associated with Jinong.

VIE assessment

A VIE is an entity (1) that has total equity at risk that is not sufficient to finance its activities without additional subordinated financial support from other entities, (2) where the group of equity holders does not have the power to direct the activities of the entity that most significantly impact the entity’s economic performance, or the obligation to absorb the entity’s expected losses or the right to receive the entity’s expected residual returns, or both, or (3) where the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. In order to determine if an entity is considered a VIE, the Company first performs a qualitative analysis, which requires certain subjective decisions regarding its assessments, including, but not limited to, the design of the entity, the variability that the entity was designed to create and pass along to its interest holders, the rights of the parties, and the purpose of the arrangement. If the Company cannot conclude after a qualitative analysis whether an entity is a VIE, it performs a quantitative analysis. The qualitative analysis considered the design of the entity, the risks that cause variability, the purpose for which the entity was created, and the variability that the entity was designed to pass along to its variable interest holders. When the primary beneficiary could not be identified through a qualitative analysis, we used internal cash flow models to compute and allocate expected losses or expected residual returns to each variable interest holder based upon the relative contractual rights and preferences of each interest holder in the VIE’s capital structure.

Use of estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment.

Leases

The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease right-of-use assets and lease liabilities are recognized at commencement based on the present value of lease payments over the lease term. As the implicit rate is typically not readily determinable in the Company’s lease agreements, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of the lease payments. The incremental borrowing rate is based on the Company’s specific rate of interest to borrow on a collateralized basis, over a similar term and in a similar economic environment as the lease. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recognized on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Additionally, the Company accounts for lease and non-lease components as a single lease component for its identified asset classes. As of September 30, 2025, the Company does not have any material leases for the implementation of ASC 842.

Cash and cash equivalents and concentration of cash

For statement of cash flows purposes, the Company considers all cash on hand and in banks, certificates of deposit with state owned banks in the PRC and banks in the United States, and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. The Company maintains large sums of cash in three major banks in China. The aggregate cash in such accounts and on hand as of September 30, 2025 and June 30, 2025 were $53,066,401 and $52,503,126, respectively. There is no insurance securing these deposits in China. In addition, the Company also had $186,716 and $16,292 in cash in three banks in the United States as of September 30, 2025 and June 30, 2025, respectively. Cash overdraft as of balance sheet date will be reflected as liabilities in the balance sheet. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts.

Digital assets

Digital assets are included in current assets in the condensed consolidated balance sheets. Digital assets are accounted for as indefinite-lived intangible assets, and are initially measured in accordance with FASB Accounting Standards Codification (“ASC”) Topic 350 – Intangibles-Goodwill and Other. The Company measures gains or losses on the disposition of digital assets in accordance with the first-in-first-out (“FIFO”) method of accounting.

Digital assets are not amortized, but are assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived intangible asset is impaired. Whenever the exchange-traded price of digital assets declines below its carrying value, the Company has determined that an impairment exists and records an impairment equal to the amount by which the carrying value exceeds the fair value.

As of September 30, 2025, and June 30, 2025, the Company held Bitcoin as digital assets with amount of $0. Bitcoin is classified on our balance sheet as a current asset due to the Company’s ability to sell it in a highly liquid marketplace and its intent to liquidate its Bitcoin to support operations when needed.

Accounts receivable

Management regularly reviews the composition of accounts receivable and analyzes customer credit worthiness, current economic trends, and changes in customer payment patterns to evaluate the collectability of accounts receivable at each year-end. Accounts considered uncollectible are provisioned for written off based upon management’s assessment. As of September 30, 2025, and June 30, 2025, the Company had accounts receivable of $20,678,903 and $19,345,061, net of allowance for doubtful accounts of $30,744,907 and $30,266,093, respectively. The Company recorded bad debt expense in the amount of $290,179 and $632,074 for the three months ended September 30, 2025 and 2024, respectively. The Company adopts no policy to accept product returns post to the sales delivery.

Inventories

Inventory is valued at a lower cost (determined on a weighted average basis) or market. Inventories consist of raw materials, work in process, finished goods and packaging materials. The Company reviews its inventories regularly for possible obsolete goods and establishes reserves when determined necessary. As of September 30, 2025, and 2024, the Company had no reserve for obsolete goods. The Company confirmed the loss of $0.1 million and $2.0 million of inventories for the three months ended September 30, 2025 and 2024, respectively.

Intangible Assets

The Company records intangible assets acquired individually or as part of a group at fair value. Intangible assets with definitive lives are amortized over the useful life of the intangible asset, which is the period over which the asset is expected to contribute directly or indirectly to the entity’s future cash flows. The Company evaluates intangible assets for impairment at least annually and more often whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Whenever such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. The Company has not recorded impairment of intangible assets as of September 30, 2025 and 2024, respectively.

Customer deposits

Payments received before all the relevant criteria for revenue recognition are satisfied are recorded as customer deposits. When all revenue recognition criteria are met, the customer deposits are recognized as revenue. As of September 30, 2025, and June 30, 2025, the Company had customer deposits of $3,441,483 and $4,526,024, respectively.

Earnings per share

Basic earnings per share are computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share are computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards.

The components of basic and diluted earnings per share consist of the following:

	Three Months Ended
	September 30,
	2025		2024
Net Income (Loss) for Basic Earnings Per Share	$	1,087,797	$	(1,842,225	)
Basic Weighted Average Number of Shares		15,770,934		14,793,538
Net Income (Loss) Per Share – Basic	$	0.07	$	(0.12	)
Net Income (Loss) for Diluted Earnings Per Share	$	1,087,797	$	(1,842,225	)
Diluted Weighted Average Number of Shares		15,770,934		14,793,538
Net Income (Loss) Per Share – Diluted	$	0.07	$	(0.12	)

Recent accounting pronouncements

The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its Consolidated Financial Statements and assures that there are proper controls in place to ascertain that the Company’s Consolidated Financial Statements accurately reflect the change.

In December 2023, the FASB issued ASU 2023-08, Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets, which establishes accounting guidance for crypto assets meeting certain criteria. Bitcoin meets these criteria. The amendments require crypto assets meeting the criteria to be recognized at fair value with changes recognized in net income for each reporting period. Upon adoption, a cumulative-effect adjustment is made to the opening balance of retained earnings as of the beginning of the annual reporting period of adoption. ASU 2023-08 is effective for fiscal years beginning after December 14, 2025, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the updated guidance to have a material impact on its disclosures.

NOTE 3 – GOING CERCERN

The Company’s financial statements are prepared assuming that the Company will continue as a going concern. The Company had negative operating cash flows during the reporting period from July 1, 2025 through September 30, 2025. In addition, as more fully described in Note 17, Subsequent Events, on October 13, 2025, the Company was notified by NYSE of its determination to commence proceedings to delist the Company’s common stock. The Company has a right to a review of this determination by a Committee of the Board of Directors of the NYSE. However, the Company does not intend to appeal the NYSE’s determination. Accordingly, the NYSE filed a Form 25 with the SEC on October 27, 2025, to remove the Company’s common stock from listing and registration on the NYSE. The delisting became effective 10 days after the filing of the Form 25. Following the delisting, the Company’s common stock is expected to be quoted on the OTC Markets Group Inc. under the symbol “ENFY”. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for a period of at least one year from the date these financial statements are issued.

The ability of the Company to continue as a going concern is dependent upon its ability to secure alternative sources of financing and ultimately achieve profitable operations. The delisting, if finalized, will severely impair our ability to raise capital through public equity markets.

Management’s plans to mitigate these adverse conditions include implementing cost-reduction measures, and exploring alternative financing arrangements. However, there can be no assurance that the Company’s plans will be successful.

The accompanying financial statements do not include any adjustments to reflect the carrying values and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

NOTE 4 – INVENTORIES

Inventories consisted of the following:

	September 30,		June 30,
	2025		2025
Raw materials	$	3,795,267	$	5,531,766
Supplies and packing materials	$	689,585	$	382,175
Work in progress	$	172,314	$	170,847
Finished goods	$	33,221,791	$	30,890,499
Total	$	37,878,957	$	36,975,287

The Company confirmed the loss of $0.1 million and $2.0 million of inventories for the three months ended September 30, 2025 and 2024, respectively.

NOTE 5 – PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:

	September 30,			June 30,
	2025			2025
Building and improvements	$	37,721,186		$	37,487,544
Auto		2,828,709			2,800,186
Machinery and equipment		18,195,789			18,490,280
Total property, plant and equipment		58,745,683			58,778,009
Less: accumulated depreciation		(46,926,476	)		(46,553,426	)
Total	$	11,819,207		$	12,224,583

For the three months ended September 30, 2025, total depreciation expense was $491,969, decreased $218,434, or 30.7%, from $710,404 for the three months ended September 30, 2024.

NOTE 6 – INTANGIBLE ASSETS AND DIGITAL ASSETS

Intangible assets

Intangible assets consisted of the following:

	September 30,		June 30,
	2025		2025
Land use rights, net	$	7,588,344	$	7,598,150
Trademarks		5,716,723		5,681,312
Total	$	13,305,067	$	13,279,462

LAND USE RIGHT

On September 25, 2009, Yuxing was granted a land use right for approximately 88 acres (353,000 square meters or 3.8 million square feet) by the People’s Government and Land & Resources Bureau of Hu County, Xi’an, Shaanxi Province. The fair value of the related intangible asset was determined to be the respective cost of RMB73,184,895 (or $10,279,550). The intangible asset is being amortized over the grant period of 50 years using the straight-line method.

On August 13, 2003, Tianjuyuan was granted a certificate of Land Use Right for a parcel of land of approximately 11 acres (42,726 square meters or 459,898 square feet) at Ping Gu District, Beijing. The purchase cost was recorded at RMB1,045,950 (or $146,914). The intangible asset is being amortized over the grant period of 50 years.

On August 16, 2001, Jinong received a land use right as a contribution from a shareholder, which was granted by the People’s Government and Land& Resources Bureau of Yangling District, Shaanxi Province. The fair value of the related intangible asset at the time of the contribution was determined to be RMB7,285,099 (or $1,023,265). The intangible asset is being amortized over the grant period of 50 years.

The land use rights consisted of the following:

	September 30,			June 30,
	2025			2025
Land use rights	$	11,449,729		$	11,378,811
Less: accumulated amortization		(3,861,385	)		(3,780,661	)
Total land use rights, net	$	7,588,344		$	7,598,150

TRADEMARKS

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value of the acquired trademarks was estimated to be RMB41,371,630 (or $5,811,059) and is subject to an annual impairment test.

AMORTIZATION EXPENSE

Estimated amortization expenses of intangible assets for the next twelve months periods ended September 30, are as follows:

Twelve Months Ended on September 30,	Expense ($)
2026		228,644
2027		228,644
2028		228,644
2029		228,644
2030		228,644

Digital assets

On March 13, 2023, the Company established Antaeus Tech Inc. in the State of Delaware. The following month, Antaeus began purchasing digital asset mining machines and commenced Bitcoin mining operations in West Texas. However, in response to sustained losses, the Company began gradually ceasing these activities in October 2024. As a result, the Company held no digital assets as of June 30, 2025, and September 30, 2025.

For the three months ended September 30, 2025, the Company acquired $0 of digital assets through mining activities and disposed of $0 digital assets through the sale of digital assets. For the three months ended September 30, 2025, the Company realized total gains on digital assets of $0.

For the three months ended September 30, 2024, the Company acquired $162,973 of digital assets through mining activities and disposed of $213,910 digital assets through the sale of digital assets. For the three months ended September 30, 2024, the Company realized total gains on digital assets of $8,730.

NOTE 7 – OTHER NON-CURRENT ASSETS

Other non-current assets consist primarily of deferred tax assets. As of September 30, 2025, the balance of other non-current assets was $589,578, of which $558,574 represented deferred tax assets.

NOTE 8 – ACCRUED EXPENSES AND OTHER PAYABLES

Accrued expenses and other payables consisted of the following:

	September 30,		June 30,
	2025		2025
Payroll and welfare payable		205,836		166,742
Accrued expenses		10,838,699		12,792,630
Other payables		8,122,429		9,210,826
Other levy payable		117,799		117,069
Interest payable		4,122		2,623
Total	$	19,288,885	$	22,289,890

NOTE 9 – AMOUNT DUE TO RELATED PARTIES

At the end of December 2015, Yuxing entered into a sales agreement with the Company’s affiliate, 900LH.com Food Co., Ltd. (“900LH.com”, previously announced as Xi’an Gem Grain Co., Ltd) pursuant to which Yuxing is to supply various vegetables to 900LH.com for its incoming seasonal sales at the holidays and year ends (the “Sales Agreement”). The contingent contracted value of the Sales Agreement is RMB25,500,000 (approximately $3,581,730). For the three months ended September 30, 2025 and June 30, 2025, Yuxing had sold $257,800 and $128,211 products to 900LH.com.

The amount due from 900LH.com to Yuxing was $0 as of September 30, 2025 and June 30, 2025.

As of September 30, 2025, and June 30, 2025, the amount due to related parties was $5,913,935 and $5,886,036, respectively. As of September 30, 2025, and June 30, 2025, $983,220 and $977,130, respectively were amounts that Gufeng borrowed from a related party, Xi’an Techteam Science& Technology Industry (Group) Co. Ltd., a company controlled by Mr. Zhuoyu Li, Chairman and CEO of the Company, representing unsecured, non-interest-bearing loans that are due on demand. These loans are not subject to written agreements. As of September 30, 2025, and June 30, 2025, $2,386,619 were advances from Mr. Zhuoyu Li, Chairman and CEO of the Company. The advances were unsecured and non-interest-bearing. As of September 30, 2025, and June 30, 2025, $310,000 were advances from Mr. Zhibiao Pan, the former Co-CEO of the Company. The advances were unsecured and non-interest-bearing.

As of September 30, 2025, and June 30, 2025, the Company’s subsidiary, Jinong, owed 900LH.com $21,631 and $0, respectively.

On July 1, 2024, Jinong renewed the office lease with Kingtone Information Technology Co., Ltd. (“Kingtone Information”), of which Mr. Zhuoyu Li, Chairman and CEO of the Company, served as Chairman. Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The lease provides for a two-year term effective as of July 1, 2024 with monthly rent of RMB28,000 (approximately $3,933).

NOTE 10 – LOAN PAYABLES

As of September 30, 2025, the short-term and long-term loan payables consisted of nine loans which mature on dates ranging from April 17, 2025 through June 13, 2027 with interest rates ranging from 3.00% to 5.00%. No. 1 below was collateralized by Tianjuyuan’s land use right and building ownership right and guaranteed by the cash deposit. No. 2 was guaranteed by Beijing Huaixin Surety Co. Ltd (“Huaixin”). No. 3 was guaranteed by Huaixin and Jinong. No.4 was collateralized by Kingtone Information’s building ownership right. No. 5 to 7 below were collateralized by Jinong’s land use right and building ownership right. No. 8 to 9 were collateralized by Kingtone Information’s building ownership right and guaranteed by the legal representative of Yuxing.

No.	Payee	Loan period per agreement	Interest Rate			September 30, 2025
1	Beijing Bank -Pinggu Branch	June 16, 2025-June 16, 2026		3.20	%		1,404,600
2	Huaxia Bank -HuaiRou Branch	June 20, 2025-June 20, 2026		3.65	%		1,404,600
3	Pinggu New Village Bank	June 27, 2025-June 27, 2026		5.00	%		983,220
4	Industrial Bank Co. Ltd	July 5, 2024-July 4, 2026		3.55	%		404,525
5	Industrial Bank Co. Ltd	April 17, 2025-April 16, 2027		3.00	%		955,128
6	Xi’an Bank Co. Ltd	September 26, 2024-September 25, 2026		3.70	%		1,264,140
7	Xi’an Bank Co. Ltd	September 26, 2024-September 25, 2026		3.70	%		1,334,370
8	Chang’An Bank	June 14, 2024-June 13, 2027		4.00	%		1,896,210
9	Qinnong Bank	August 5, 2024-August 4, 2026		3.80	%		2,528,280
	Total					$	12,175,073

The interest expense from loans was $115,628 and $104,983 for the three months ended September 30, 2025 and 2024, respectively.

NOTE 11 – TAXES PAYABLE

Enterprise Income Tax

Effective January 1, 2008, the Enterprise Income Tax (“EIT”) law of the PRC replaced the tax laws for Domestic Enterprises (“DEs”) and Foreign Invested Enterprises (“FIEs”). The EIT rate of 25% replaced the 33% rate that was applicable to both DEs and FIEs. The two-year tax exemption and three-year 50% tax reduction tax holiday for production oriented FIEs was eliminated. Since January 1, 2008, Jinong became subject to income tax in China at a rate of 15% as a high-tech company, because of the expiration of its tax exemption on December 31, 2007.Accordingly, it made no provision for income taxes for the three-month period ended September 30, 2025 and 2024.

Value-Added Tax

All the Company’s fertilizer products that are produced and sold in the PRC were subject to a Chinese Value-Added Tax (VAT) of 9% of the gross sales price. On April 29, 2008, the PRC State of Administration of Taxation (SAT) released Notice #56, “Exemption of VAT for Organic Fertilizer Products”, which allows certain fertilizer products to be exempt from VAT beginning June 1, 2008. The Company submitted the application for exemption in May 2009, which was granted effective September 1, 2009, continuing through December 31, 2015. On August 10, 2015 and August 28, 2015, the SAT released Notice #90. “Reinstatement of VAT for Fertilizer Products,” and Notice #97, “Supplementary Reinstatement of VAT for Fertilizer Products”, which restore the VAT of 13% of the gross sales price on certain fertilizer products includes non-organic fertilizer products starting from September 1, 2015, but granted taxpayers a reduced rate of 3% from September 1, 2015 through June 30, 2016.

On April 28, 2017, the PRC State of Administration of Taxation (SAT) released Notice 2017 #37, “Notice on Policy of Reduced Value Added Tax Rate,” under which, effective July 1, 2017, all the Company’s fertilizer products that are produced and sold in the PRC are subject to a Chinese Value-Added Tax (VAT) of 11% of the gross sales price. The tax rate was reduced by 2% from 13%.

On April 4, 2018, the PRC State of Administration of Taxation (SAT) released Notice 2018 #32, “Notice on Adjustment of VAT Tax Rate,” under which, effective May 1, 2018, all the Company’s fertilizer products that are produced and sold in the PRC are subject to a Chinese Value-Added Tax (VAT) of 10% of the gross sales price. The tax rate was reduced by 1% from 11%.

On March 20, 2019, the PRC State of Administration of Taxation (SAT) released Notice 2019 #39, “Announcement on Policies Concerning Deepening the Reform of Value Added Tax,” under which, Effective April 1, 2019, all the Company’s fertilizer products that are produced and sold in the PRC are subject to a Chinese Value-Added Tax (VAT) of 9% of the gross sales price. The tax rate was reduced by 1% from 10%.

Income Taxes and Related Payables

	September 30,			June 30,
	2025			2025
VAT provision	$	(980,695	)	$	(918,464	)
Income tax payable		(2,173,563	)		(2,160,101	)
Other levies		612,228			596,866
Repatriation tax		29,010,535			29,010,535
Total	$	26,468,505		$	26,528,836

The provision for income taxes consists of the following:

	September 30,			September 30,
	2025			2024
Current tax - foreign	$	(268	)	$	(38,878	)
Deferred tax		-			-
Total	$	(268	)	$	(38,878	)

Significant components of deferred tax assets were as follows:

	September 30,			June 30,
	2025			2025
Deferred tax assets
Deferred tax benefit		33,549,531			33,344,920
Valuation allowance		(32,990,957	)		(32,786,614	)
Total deferred tax assets	$	558,574		$	558,306

Tax Rate Reconciliation

Our effective tax rates were approximately 0.0% and 2.1% for the three months ended September 30, 2025 and 2024, respectively. Substantially all the Company’s income before income taxes and related tax expense are from PRC sources. Actual income tax benefit reported in the consolidated statements of operations and comprehensive income (loss) differ from the amounts computed by applying the US statutory income tax rate of 21.0% to income before income taxes for the three months ended September 30, 2025 and 2024 for the following reasons:

September 30, 2025

	China 15% - 25%					United States 21 %					Total
Pretax income	$	1,591,622				$	(504,093	)			$	1,087,529

Expected income tax expense (benefit)		397,905		25.0	%		(105,860	)	21.0	%		292,046
High-tech income benefits on Jinong				-					-
Losses from subsidiaries in which no benefit is recognized		(398,173	)	(25.0	)%				-			(398,173	)
Change in valuation allowance on deferred tax asset from US tax benefit				-			105,860		(21.0	)%		105,860
Actual tax expense	$	(268	)	-	%	$	-		-		$	(268	)	0.0	%

September 30, 2024

	China 15% - 25%					United States 21 %					Total
Pretax loss	$	(1,317,653	)			$	(563,450	)			$	(1,881,103	)

Expected income tax expense (benefit)		(329,413	)	25.0	%		(118,324	)	21.0	%		(447,738	)
High-tech income benefits on Jinong				-					-
Losses from subsidiaries in which no benefit is recognized		290,535		(22.0	)%				-			290,535
Change in valuation allowance on deferred tax asset from US tax benefit				-			118,324		(21.0	)%		118,324
Actual tax expense	$	(38,878	)	3.0	%	$	-		-		$	(38,878	)	2.1	%

NOTE 12 – STOCKHOLDERS’ EQUITY

Common Stock

There were no shares of common stock issued during the quarter ended September 30, 2025 and September 30, 2024.

As of September 30, 2025, there were 16,116,914 shares issued and 15,769,434 shares outstanding, compared to 16,116,914 shares issued and 15,770,934 shares outstanding as of June 30, 2025.

Preferred Stock

Under the Company’s Articles of Incorporation, the Board has the authority, without further action by stockholders, to designate up to 20,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges, qualifications and restrictions granted to or imposed upon the preferred stock, including dividend rights, conversion rights, voting rights, rights and terms of redemption, liquidation preference and sinking fund terms, any or all of which may be greater than the rights of the common stock. If the Company sells preferred stock under its registration statement on Form S-3, it will fix the rights, preferences, privileges, qualifications and restrictions of the preferred stock of each series in the certificate of designation relating to that series and will file the certificate of designation that describes the terms of the series of preferred stock the Company offers before the issuance of the related series of preferred stock.

As of September 30, 2025, the Company has 20,000,000 shares of preferred stock authorized, with a par value of $.001 per share, of which no shares are issued or outstanding.

Share Repurchase Program

On January 21, 2025, the Board of Directors of the Company approved a share repurchase program authorizing up to 2,000,000 shares of its common stock, at a price not exceeding $3.00 per share. The Plan is designed to enhance shareholder value, optimize the Company’s capital structure, utilize excess cash in a tax-efficient manner, and signal management’s confidence in the Company’s long-term prospects. Under the plan, the Company may repurchase shares from time to time through open market purchases, privately negotiated transactions, or other methods, in compliance with applicable securities laws.

We repurchased the following shares of common stock under the share repurchase program:

Period	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans		Dollar Value
January 1, 2025 to January 31, 2025	$	181,742	$	1.03	$	181,742	$	187,122
February 1, 2025 to February 28, 2025	$	164,238	$	1.29	$	164,238	$	211,404
September 1, 2025 to September 30, 2025		1,500		0.81		1,500		1,216
Total	$	347,480	$	1.15	$	347,480	$	399,742

During the three months ended September 30, 2025, the Company repurchased 1,500 shares of its common stock under an authorized share repurchase program for $1,216. All repurchases were made using cash resources. All shares repurchased were under the share repurchase program approved on January 21, 2025.

During the three months ended September 30, 2024, the Company did not repurchase any common stock.

NOTE 13 – CONCENTRATIONS AND LITIGATION

Market Concentration

Most of the Company’s revenue-generating operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic, and legal environments in the PRC, and by the general state of the PRC’s economy.

The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among other things, the political, economic, and legal environment and foreign currency exchange. The Company’s results may be adversely affected by, among other things, changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, and remittance abroad, and rates and methods of taxation.

Vendor and Customer Concentration

There was no vendor that the Company purchased over 10% of its raw materials for the three months ended September 30, 2025 and 2024.

There was no customer that account for over 10% of the Company’s manufactured fertilizer sales for the three months ended September 30, 2025 and 2024.

Litigation

On May 28, 2024, an individual commenced a lawsuit in Texas state court against the Company and its co-CEO, Mr. Zhibiao Pan. The individual alleges that the Company used funds he stored in cryptocurrency wallets operated by entities related to Mr. Pan to purchase cryptocurrency mining sites. The Company has moved to dismiss the lawsuit in which motion is pending.

There are no other actions, suits, proceedings, inquiries or investigations before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

NOTE 14 – SEGMENT REPORTING

As of September 30, 2025, the Company was organized into four primary business segments based on location and product: Jinong (fertilizer production), Gufeng (fertilizer production), Yuxing (agricultural products production), and Antaeus (Bitcoin). Each of the four operating segments referenced above has separate and distinct general ledgers. The chief operating decision maker (“CODM”) receives financial information, including revenue, gross margin, operating income, and net income produced from the various general ledger systems to make decisions about allocating resources and assessing performance; however, the principal measure of segment profitability or loss used by the CODM is net income by segment.

	Three Months Ended September 30,
	2025			2024
Revenues from unaffiliated customers:
Jinong	$	6,796,657		$	7,421,659
Gufeng		5,213,257			7,439,542
Yuxing		2,450,597			2,340,443
Antaeus		-			163,295
Consolidated	$	14,460,511		$	17,364,939

Operating income (expense):
Jinong	$	1,148,317		$	38,000
Gufeng		438,573			(1,299,380	)
Yuxing		104,353			253,564
Antaeus		(1,050	)		(193,759	)
Reconciling item (1)		(502,594	)		(563,450	)
Consolidated	$	1,187,599		$	(1,765,024	)

Net income (loss):
Jinong	$	1,123,039		$	(19,642	)
Gufeng		402,424			(1,335,699	)
Yuxing		67,436			222,823
Antaeus		(1,009	)		(146,257	)
Reconciling item (1)		-			-
Reconciling item (2)		(504,093	)		(563,450	)
Consolidated	$	1,087,797		$	(1,842,225	)

Depreciation and Amortization:
Jinong	$	193,671		$	193,433
Gufeng		163,306			182,146
Yuxing		191,851			190,475
Antaeus		-			144,350
Consolidated	$	548,828		$	710,404

Interest expense:
Jinong		36,821			41,201
Gufeng		35,975			36,218
Yuxing		42,832			27,564
Antaeus		-			-
Consolidated	$	115,628		$	104,983

Capital Expenditure:
Jinong	$	1,940		$	47,610
Gufeng		-			-
Yuxing		11,012			629
Antaeus		-			-
Consolidated	$	12,952		$	48,239

	As of
	September 30,		June 30,
	2025		2025
Identifiable assets:
Jinong	$	63,943,599	$	64,597,079
Gufeng		35,236,023		35,318,620
Yuxing		44,287,165		44,139,019
Antaeus		1,690,030		1,572,816
Reconciling item (1)		11,703,937		11,900,443
Reconciling item (2)		169,071		169,071
Consolidated	$	157,029,825	$	157,697,048

(1)

Reconciling amounts refer to the unallocated assets or expenses of Green New Jersey.

(2)

Reconciling amounts refer to the unallocated assets or expenses of the Parent Company.

NOTE 15 – COMMITMENTS AND CONTINGENCIES

We are subject to various claims and contingencies related to lawsuits, certain taxes and environmental matters, as wells commitments under contractual and other commercial obligations. We recognize liabilities for commitments and contingencies when a loss is probable and estimable.

On July 1, 2024, Jinong renewed an office rental agreement with Kingtone Information Technology Co., Ltd. (“Kingtone Information”), of which Mr. Zhuoyu Li, Chairman and CEO of the Company, served as Chairman. Pursuant to the rental agreement, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The rental agreement provides for a two-year term effective as of July 1, 2024 with monthly rent of RMB28,000 (approximately $3,933).

In February 2004, Tianjuyuan signed a fifty-year rental agreement with the village committee of Dong Gao Village and Zhen Nan Zhang Dai Village in the Beijing Ping Gu District.

On April 1, 2025, Antaeus signed a one-year rental agreement for an office in Austin, Texas for approximately 404 square meters (4,348 square feet) space.

Accordingly, the Company recorded an aggregate of $14,095 and $14,284 as rent expenses for the three-month periods ended September 30, 2025 and 2024, respectively. The contingent rent expenses for the next twelve-month periods ended September 30, are as follows:

Years ending September 30,
2026	$	56,380
2027		56,380
2028		56,380
2029		56,380
2030		56,380

NOTE 16 – VARIABLE INTEREST ENTITIES

In accordance with accounting standards regarding consolidation of variable interest entities, VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision-making ability. All VIEs with which a company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes.

Green Nevada through one of its subsidiaries, Jinong, entered into a series of agreements (the “VIE Agreements”) with Yuxing for it to qualify as a VIE, effective June 16, 2013.

The Company has concluded, based on the contractual arrangements, that Yuxing is a VIE and that the Company’s wholly owned subsidiary, Jinong, absorbs most of the risk of loss from the activities of Yuxing, thereby enabling the Company, through Jinong, to receive a majority of Yuxing expected residual returns.

On June 30, 2016 and January 1, 2017, the Company, through its wholly owned subsidiary Jinong, entered into strategic acquisition agreements and into a series of contractual agreements to qualify as VIEs with the shareholders of the sales VIE Companies.

Jinong, the sales VIE Companies, and the shareholders of the sales VIE Companies also entered into a series of contractual agreements for the sales VIE Companies to qualify as VIEs (the “VIE Agreements”).

On November 30, 2017, the Company, through its wholly owned subsidiary Jinong, exit the VIE agreements with the shareholders of Zhenbai.

As a result of these contractual arrangements, with Yuxing and the sales VIE Companies the Company is entitled to substantially all the economic benefits of Yuxing and the VIE Companies. The following financial statement amounts and balances of the VIE (Yuxing) were included in the accompanying consolidated financial statements as as of September 30, 2025 and June 30, 2025:

	September 30,			June 30,
	2025			2025
ASSETS
Current assets
Cash and cash equivalents	$	251,102		$	486,536
Accounts receivable, net		488,699			563,465
Inventories		26,540,647			26,163,756
Inter co trans		4,775,991			4,746,409
Other current assets		268,721			110,264
Total current assets		32,325,160			32,070,430

Non-current assets
Plant, property and equipment, net		4,989,044			5,087,738
Intangible assets, net		6,972,961			6,980,851
Total non-current assets		11,962,005			12,068,589
Total assets	$	44,287,165		$	44,139,019

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	12,754		$	12,675
Customer deposits		425,274			673,533
Accrued expenses and other payables		217,521			214,657
Amount due to related parties		40,850,729			40,262,687
Short-term loan		2,738,970			488,565
Total current liabilities		44,245,248			41,652,117

Non-current liabilities
Long-term loan		1,685,520			4,187,700
Total non-current liabilities		1,685,520			4,187,700
Total liabilities	$	45,930,768		$	45,839,817

Stockholders’ equity		(1,643,603	)		(1,700,798	)

Total Liabilities and stockholders’ equity	$	44,287,165		$	44,139,019

	Three Months Ended September 30,
	2025		2024
Revenue	$	2,450,597	$	2,340,443
Expenses		2,383,161		2,117,621
Net income	$	67,436	$	222,822

NOTE 17 – SUBSEQUENT EVENTS

On October 13, 2025, subsequent to the balance sheet date of September 30, 2025, the Company received notice from the NYSE that the staff of NYSE Regulation has determined to commence proceedings to delist the Company’s common stock from the NYSE. In connection therewith, trading in the Company’s common stock was suspended immediately on the NYSE.

NYSE Regulation reached its decision to delist the Company’s common stock pursuant to Section 802.01B of the NYSE’s Listed Company Manual because the Company had fallen below the NYSE’s continued listing standard requiring listed companies to maintain an average global market capitalization over a consecutive 30 trading day period of at least $15,000,000.

The Company has a right to a review of this determination by a Committee of the Board of Directors of the NYSE. However, the Company does not intend to appeal the NYSE’s determination. Accordingly, the NYSE filed a Form 25 with the SEC on October 27, 2025, to remove the Company’s common stock from listing and registration on the NYSE. The delisting became effective 10 days after the filing of the Form 25.

Following the delisting, the Company’s common stock is expected to be quoted on the OTC Markets Group Inc. under the symbol “ENFY”. The Company intends to continue to file periodic reports with the SEC under the Securities Exchange Act of 1934, as amended.

The Company has evaluated the effects of this matter in accordance with Accounting Standards Codification (“ASC”) Topic 855, Subsequent Events, and has determined that, other than the disclosures herein, it does not represent an adjusting event. However, the delisting raises substantial doubt about the Company’s ability to continue as a going concern, as further discussed in Note 3 – Going Concern. See also “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” for additional information regarding risks associated with the Company’s listing status and market capitalization.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the notes to those financial statements appearing elsewhere in this report. This discussion and analysis contain forward-looking statements that involve significant risks and uncertainties. As a result of many factors, such as the slow-down of the macro-economic environment in China and its impact on economic growth in general, the competition in the fertilizer industry and the impact of such competition on pricing, revenues and margins, the weather conditions in the areas where our customers are based, the cost of attracting and retaining highly skilled personnel, the prospects for future acquisitions, and the factors set forth elsewhere in this report, our actual results may differ materially from those anticipated in these forward-looking statements. With these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this report will in fact occur. You should not place undue reliance on the forward-looking statements contained in this report.

The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by U.S. federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. Further, the information about our intentions contained in this report is a statement of our intention as of the date of this report and is based upon, among other things, the existing regulatory environment, industry conditions, market conditions and prices, and our assumptions as of such date. We may change our intentions, at any time and without notice, based upon any changes in such factors, in our assumptions or otherwise.

Unless the context indicates otherwise, as used in the notes to the financial statements of the Company, the following are the references herein of all the subsidiaries of the Company (i) Green Agriculture Holding Corporation (“Green New Jersey”), a wholly-owned subsidiary of Green Nevada incorporated in the State of New Jersey; (ii) Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. (“Jinong”), a wholly-owned subsidiary of Green New Jersey organized under the laws of the PRC; (iii) Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd. (“Yuxing”), a Variable Interest Entity in the PRC (“VIE”) controlled by Jinong through contractual agreements; (iv) Beijing Gufeng Chemical Products Co., Ltd., a wholly-owned subsidiary of Jinong in the PRC (“Gufeng”); (v) Beijing Tianjuyuan Fertilizer Co., Ltd., Gufeng’s wholly-owned subsidiary in the PRC (“Tianjuyuan”). Yuxing may also collectively be referred to as the “the VIE Company”, and (vi)Antaeus Tech, Inc. (“Antaeus”), a wholly-owned subsidiary of Green Nevada incorporated in the State of Delaware.

Unless the context otherwise requires, all references to (i) “PRC” and “China” are to the People’s Republic of China; (ii) “U.S. dollar,” “$” and “US$” are to United States dollars; and (iii) “RMB”, “Yuan” and Renminbi are to the currency of the PRC or China.

Recent Developments — NYSE Delisting and Going Concern Uncertainty

On October 13, 2025, the Company received a determination notice from the NYSE stating its intent to commence proceedings to delist our common stock. Trading was suspended immediately. The Company has a right to a review of this determination by a Committee of the Board of Directors of the NYSE. However, the Company does not intend to appeal the NYSE’s determination. Accordingly, the NYSE filed a Form 25 with the SEC on October 27, 2025, to remove the Company’s common stock from listing and registration on the NYSE. The delisting became effective 10 days after the filing of the Form 25. Following the delisting, the Company’s common stock is expected to be quoted on the OTC Markets Group Inc. under the symbol “ENFY”.

This event has a material impact on our financial condition and raises substantial doubt about our ability to continue as a going concern. The following discussion and analysis should be read with this critical uncertainty in mind. Further details regarding this matter and our plans are provided in the “Liquidity and Capital Resources” section of this MD&A, and in Notes 3 and 17 to our consolidated financial statements.

Overview

We are engaged in the research, development, production, and sale of various types of fertilizers, agricultural products and Bitcoin in the PRC and United State through our wholly owned Chinese subsidiaries, Jinong and Gufeng (including Gufeng’s subsidiary Tianjuyuan), Yuxing, a VIE associated with Jinong, and our wholly owned U.S. subsidiary Antaeus. Our primary business is fertilizer products, specifically humic-acid based compound fertilizer produced by Jinong and compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizer, highly concentrated water-soluble fertilizer, and mixed organic-inorganic compound fertilizer produced by Gufeng. In addition, through Yuxing, we develop and produce various agricultural products, such as top-grade fruits, vegetables, flowers, and colored seedlings. Besides, we engaged in the mining of digital assets Bitcoin through Antaeus. For financial reporting purposes, our operations are organized into four business segments: fertilizer products (Jinong), fertilizer products (Gufeng), agricultural products (Yuxing), and Bitcoin (Antaeus).

The fertilizer business conducted by Jinong and Gufeng generated approximately 83.1% and 85.6% of our total revenues for the three months ended September 30, 2025 and 2024, respectively. Yuxing generated 16.9% and 13.5% of our revenues for the three months ended September 30, 2025 and 2024, respectively. Yuxing serves as a research and development base for our fertilizer products. Antaeus generated 0.0% and 0.9% of our revenues for the three months ended September 30, 2025 and 2024, respectively.

Fertilizer Products

As of September 30, 2025, we had developed and produced a total of 114 different fertilizer products in use, with 76 were developed and produced by Jinong and 38 by Gufeng.

Below is a table that shows the metric tons of fertilizer sold by Jinong and Gufeng and the revenue per ton for the periods indicated:

	Three Months Ended
	September 30,				Change 2024 to 2025
	2025		2024		Amount			%
	(metric tons)
Jinong		8,962		12,262		(3,300	)		-26.9	%
Gufeng		10,505		14,940		(4,436	)		-29.7	%
		19,466		27,202		(7,735	)		-28.4	%

	Three Months Ended September 30,
	2025		2024
	(revenue per ton)
Jinong	$	758	$	605
Gufeng		496		498

For the three months ended September 30, 2025, we sold approximately 19,466 tons of fertilizer products, as compared to 27,202 metric tons for the three months ended September 30, 2024. For the three months ended September 30, 2025, Jinong sold approximately 8,962 metric tons of fertilizer products, as compared to 12,262 metric tons for the three months ended September 30, 2024. For the three months ended September 30, 2025, Gufeng sold approximately 10,505 metric tons of fertilizer products, as compared to 14,940 metric tons for the three months ended September 30, 2024.

Our sales of fertilizer products to customers in five provinces within China accounted for approximately 59.6% of our fertilizer revenue for the three months ended September 30, 2025. Specifically, the provinces and their respective percentage contributing to our fertilizer revenues were Hebei (23.0%), Heilongjiang (12.2%), Shaanxi (8.4%), Liaoning (8.3%), and Inner Mongolia (7.8%).

As of September 30, 2025, we had a total of 639 distributors covering 22 provinces, 4 autonomous regions and 4 central government-controlled municipalities in China. Jinong had 611 distributors in China. Jinong’s sales are not dependent on any single distributor or any group of distributors. Jinong’s top five distributors accounted for 15.7% of its fertilizer revenues for the three months ended September 30, 2025. Gufeng had 28 distributors, including some large state-owned enterprises. Gufeng’s top five distributors accounted for 48.4% of its revenues for the three months ended September 30, 2025.

Agricultural Products

Through Yuxing, we develop, produce and sell high-quality flowers, green vegetables and fruits to local marketplaces and various horticulture and planting companies. We also use certain of Yuxing’s greenhouse facilities to conduct research and development activities for our fertilizer products. The three PRC provinces and municipalities that accounted for 87.2% of our agricultural products revenue for the three months ended September 30, 2025 were Shaanxi (78.5%), Beijing (4.5%), and Zhejiang (4.1%).

Digital Assets Bitcoin

In March 2023, we expanded into Bitcoin mining by purchasing mining machines and establishing Antaeus Tech Inc. in Texas. However, due to sustained losses, the Company began phasing out these operations in October 2024.

Recent Developments

New Products

During the three months ending September 30, 2025, Jinong launched 3 new products and made no changes to its distributor network. Gufeng, meanwhile, neither launched new fertilizer products nor onboarded any new distributors.

Cash Flows through Our Organization

We are a holding company, and we conduct most of our operations through our PRC subsidiaries, the VIE and one subsidiary in the United States, and we plan to diversify our operations further in the future. For instance, we are currently working on integrating assets in the United States, which is part of our broader strategy to expand our global presence and operational capabilities. Cash is transferred through our organization in the following manner: (1) Within our corporate structure, the cross-border transfer of funds from the Company to its Chinese subsidiaries and controlled entities follows the laws and regulations of the PRC. The Company may make loans to its PRC subsidiaries subject to the approval, registration, and filing with governmental authorities and limitation of amount, or we may make additional capital contributions to our wholly foreign-owned subsidiaries in China; (2) the Company paid a dividend to its shareholders of $ 0.10 per share in 2015, but has paid none since then; (3) The Company relies on dividends and other distributions on equity paid by its PRC subsidiaries for its cash needs, to service any debt it may incur and to pay its operating expenses. For the operating companies in the PRC, they will first transfer funds to Green New Jersey in accordance with applicable laws and regulations of the PRC, and then Green New Jersey will transfer legally available funds to the Company. The Company may then distribute dividends to its shareholders in proportion to their respective shareholdings. The PRC Enterprise Income Tax Law and its implementing rules provide those dividends paid by a PRC entity to a nonresident enterprise for income tax purposes is subject to PRC withholding tax at a rate of 10%, subject to reduction by an applicable tax treaty with China. The Company and its subsidiaries generate and retain cash generated from operating activities and re-invest it in our business. (4) The ability of our entities in the PRC to distribute dividends is based upon their distributable earnings. Current PRC regulations permit companies to pay dividends to their respective shareholders only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. We currently do not have our own cash management policy and procedures that dictate how funds are transferred.

For the three months ended September 30, 2025 and 2024, no assets other than cash were transferred between the Company and subsidiaries or the VIE, no subsidiaries paid dividends or made other distributions to the Company, and no dividends or distributions were paid to investors. We currently intend to retain most, if not all, of our available funds and any future earnings to operate and expand our business.

For the three months ended September 30, 2025 and 2024, Jinong provided loans of RMB 4,211,000 (or $588,344), and RMB 23,200,000 (or $3,240,576), respectively, to Gufeng, and received repayments of RMB 0 (or $0), and RMB 58,950,000 (or $8,234,136), respectively.

For the three months ended September 30, 2025 and 2024, Jinong provided loans of RMB 2,400,000 (or $335,318), and RMB 12,100,000 ($1,690,128) respectively, to Yuxing, and received repayments of RMB 0 (or $0), and RMB 14,038,633 (or $1,960,916) respectively.

For the three months ended September 30, 2025 and 2024, Yuxing provided a loan of RMB 0 (or $0), and RMB 20,000,000 (or $2,793,600) to Gufeng. There were no other transactions between Yuxing and Jinong during the three months ended September 30, 2025 and 2024

For the three months ended September 30, 2025 and 2024, Gufeng provided loans of RMB 74,939 (or $10,470), and RMB 103,299 (or $14,429), respectively, to Tianjuyuan, and received repayments of RMB 29,000 (or $4,052), and RMB 280,000 (or $39,110), respectively.

For the three months ended September 30, 2025 and 2024, there were no asset transfers between the holding company and its subsidiaries in China.

For the three months ended September 30, 2025 and 2024, no asset transfers occurred between the holding company and Antaeus.

Risks Related to Doing Business in the PRC

Substantially most of our assets and operations are in the PRC, and substantially most of our revenue is sourced from the PRC. Accordingly, our results of operations and financial position are subject to a significant degree to economic, political and legal developments in the PRC, including the following risks:

Uncertainties with respect to the PRC legal system, including uncertainties regarding the enforcement of laws, and sudden or unexpected changes in policies, laws and regulations in China could adversely affect us.

As a business operating in China, we are subject to the laws and regulations of the PRC, which can be complex and which evolve rapidly. We are organized not as a Chinese operating company but as a Nevada holding company with operations conducted by our subsidiaries and through contractual arrangements with a variable interest entity (VIE) based in China. This structure (a Nevada corporation with operations conducted by a Chinese VIE) involves unique risks to investors. To our knowledge, this structure and the contracts with VIE have not been tested in court. The VIE structure is used to provide investors with exposure to foreign investment in China-based companies where Chinese law generally prohibits direct foreign investment in local operating companies. Our shareholders may never hold equity interests in the Chinese operating companies. It is possible that those Chinese regulatory authorities could disallow this structure, which would likely result in a material change in our operations and a material change in the value of our Common Stock, including a potentially significant decline (or, in some cases, becoming worthless). As noted, these risks could result in a material change in our operations and the value of our securities and could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or be worthless.

The PRC government has the power to exercise significant oversight and discretion over the conduct of our business, and the regulations to which we are subject may change rapidly and with little notice to us or our shareholders. As a result, there remain uncertainties regarding the application, interpretation, and enforcement of new and existing laws and regulations in the PRC. Compliance with the complex and evolving PRC laws, regulations, and regulatory statements may be costly, and such compliance or any associated inquiries or investigations or any other government actions may:

●

Delay or impede our development,

●

Results in negative publicity or increase our operating costs,

●

Require significant management time and attention, and

●

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

The promulgation of new laws or regulations, or the new interpretation of existing laws and regulations, that restrict or otherwise unfavorably impact the ability or manner in which we conduct our business and could require us to change certain aspects of our business to ensure compliance, could decrease demand for our products, reduce revenues, increase costs, require us to obtain more licenses, permits, approvals or certificates, or subject us to additional liabilities. To the extent any new or more stringent measures are required to be implemented, our business, financial condition and results of operations could be adversely affected as well as materially decrease the value of our securities.

The PRC government may intervene or influence our operations in China, which may potentially result in a material adverse effect on our operations. For example, the government of the PRC has recently published new policies that significantly affect certain industries such as the education and internet industries, and we cannot rule out the possibility that it will in the future release regulations or policies regarding our industry that could adversely affect our business, financial condition and results of operations.

Recently, the Chinese government initiated a series of regulatory actions and statements to regulate business operations in China, including enhanced supervision over China-based companies listed outside of China using the variable interest entity structure, adopting new measures to extend the scope of cybersecurity reviews, and expanding the efforts in anti-monopoly enforcement. For example, on July 6, 2021, the relevant PRC government authorities made public the Opinions on Intensifying Crack-Down on Illegal Securities Activities. These opinions emphasized the need to strengthen the administration over illegal securities activities and the supervision on overseas listings by China-based companies and proposed to take measures, such as promoting the construction of relevant regulatory systems to deal with the risks and incidents faced by China-based overseas-listed companies. On November 14, 2021, the Cyberspace Administration of China (the “CAC”) released the draft Administrative Regulations on Cyber Data Security (the “Draft Cyber Data Security Regulations”) for public comments, which requires, among others, that a prior cybersecurity review should be required for listing abroad of data processors which process over one million users’ personal information, and the listing of data processors in Hong Kong which affects or may affect national security.

While the Company has not engaged in securities offerings outside China, has no present intention to do so, and is not in the data processing business, it is possible that similar initiatives in the future could adversely affect the Company’s business The Chinese government may further promulgate relevant laws, rules and regulations that may impose additional and significant obligations and liabilities on overseas listed Chinese companies regarding data security, cross-border data flow, anti-monopoly and unfair competition, and compliance with China’s securities laws. It is uncertain whether or how these new laws, rules and regulations and the interpretation and implementation thereof may affect us.

The Uyghur Forced Labor Prevention Act prohibits the import of certain goods from the Xinjiang Uyghur Autonomous Region of China. While the Company has operations in the Xinjiang Uyghur Autonomous Region, none of its products are imported into the United States, so that law should have no effect on the Company.

At present, these statements and regulatory actions have had no impact on our daily business operations. Since these statements and regulatory actions are new, it is highly uncertain how soon legislative or administrative regulation making bodies will respond and what existing or new laws or regulations or detailed implementations and interpretations will be modified or promulgated, if any, and the potential impact such modified or new laws and regulations will have on our business operations.

Cybersecurity

Cybersecurity risk management is an integral part of our overall enterprise risk management program. The Company manages cybersecurity and data protection through a continuously evolving program. Our cybersecurity risk management program is designed to provide a framework for assessing, identifying, and managing cybersecurity threats and incidents, including threats and incidents associated with the use of services provided by third-party service providers, and to facilitate coordination across different departments of our Company. Our processes include steps for assessing the severity of a cybersecurity threat, identifying the source of a cybersecurity threat, including whether the cybersecurity threat is associated with a third-party service provider, and implementing cybersecurity countermeasures and mitigation strategies and informing management and the board of directors of material cybersecurity threats and incidents.

The Board of Directors has oversight into the most significant risks facing us and our processes to identify, prioritize, assess, manage, and mitigate those risks. The Audit Committee of the Board of Directors (the “Audit Committee”) has been designated to oversee cybersecurity risks. The Audit Committee receives regular updates on cybersecurity and information technology matters and related risk exposures from our management. The Board of Directors also receives periodic updates from management and the Audit Committee on cybersecurity risks. Management is responsible for identifying, considering, and assessing material cybersecurity risks on an ongoing basis, establishing processes designed to ensure that such potential cybersecurity risk exposures are monitored, putting in place mitigation measures and maintaining cybersecurity programs. Our cybersecurity programs are under the direction of our Chief Executive Officer. Management regularly updates the Audit Committee on our cybersecurity programs, which includes cybersecurity risks and mitigation strategies, vulnerability management, and on-going cybersecurity projects.

During the three months ended September 30, 2025, based on our current detection and monitoring capabilities, we did not identify any cybersecurity incidents that materially affected or are reasonably likely to materially affect our business strategy, results of operations, or financial condition. However, despite our efforts, we cannot eliminate all risks from cybersecurity threats or provide assurances that we have not experienced an undetected cybersecurity incident. It is possible that we may not implement appropriate controls if we do not detect a particular risk. In addition, security controls, no matter how well designed or implemented, may only mitigate, and not fully eliminate the risks. Even when a risk is detected, disruptive events may not always be immediately and thoroughly interpreted and acted upon.

Results of Operations

Three Months ended September 30, 2025 Compared to the Three Months ended September 30, 2024.

	2025			2024			Change $			Change %
Sales
Jinong	$	6,796,657		$	7,421,658			(625,001	)		-8.4	%
Gufeng		5,213,257			7,439,542			(2,226,285	)		-29.9	%
Yuxing		2,450,597			2,340,444			110,153			4.7	%
Antaeus		-			163,295			(163,295	)		-100.0	%
Net sales		14,460,511			17,364,939			(2,904,428	)		-16.7	%
Cost of goods sold
Jinong		4,340,170			4,728,887			(388,717	)		-8.2	%
Gufeng		4,588,338			6,507,133			(1,918,795	)		-29.5	%
Yuxing		2,076,071			1,940,638			135,433			7.0	%
Antaeus		-			201,711			(201,711	)		-100.0	%
Cost of goods sold		11,004,579			13,378,369			(2,373,790	)		-17.7	%
Gross profit		3,455,932			3,986,570			(530,638	)		-13.3	%
Operating expenses
Selling expenses		1,054,106			1,924,428			(870,322	)		-45.2	%
General and administrative expenses		1,214,227			3,826,904			(2,612,677	)		-68.3	%
Change in fair value of Bitcoin		-			262			(262	)		-100.0	%
Total operating expenses		2,268,333			5,751,594			(3,483,261	)		-60.6	%
Income (loss) from operations		1,187,599			(1,765,024	)		2,952,623			-167.3	%
Other income (expense)
Other income (expense)		6,290			(50,622	)		56,912			-112.4	%
Interest income		10,767			39,526			(28,759	)		-72.8	%
Interest expense		(117,127	)		(104,983	)		(12,144	)		11.6	%
Total other expense		(100,070	)		(116,079	)		16,009			-13.8	%
Income (loss) before income taxes		1,087,529			(1,881,103	)		2,968,632			-157.8	%
Provision for income taxes		(268	)		(38,878	)		38,610			-99.3	%
Net income (loss)		1,087,797			(1,842,225	)		2,930,022			-159.0	%
Other comprehensive income (loss)
Foreign currency translation gain		3,009,424			4,741,241			(1,731,817	)		-36.5	%
Comprehensive income	$	4,097,221		$	2,899,016			1,198,205			41.3	%

Net Sales

Total net sales for the three months ended September 30, 2025 were $14,460,511, a decrease of $2,904,428 or 16.7%, from $17,364,939 for the three months ended September 30, 2024. This decrease was mainly due to the decrease for Jinong and Gufeng’s net sales.

For the three months ended September 30, 2025, Jinong’s net sales decreased $625,001, or 8.4%, to $6,796,657 from $7,421,658 for the three months ended September 30, 2024. This decrease was mainly due to Jinong’s lower sales volume in the last three months. Jinong sold approximately 8,962 metric tons of fertilizer products for the three months ended September 30, 2025, decreased 3,300 tons or 26.9%, as compared to 12,262 metric tons for the three months ended September 30, 2024.

For the three months ended September 30, 2025, Gufeng’s net sales were $5,213,257, a decrease of $2,226,285 or 29.9%, from $7,439,542 for the three months ended September 30, 2024. This decrease was mainly due to Gufeng’s lower sales volume in the last three months. Gufeng sold approximately 10,505 metric tons of fertilizer products for the three months ended September 30, 2025, decreased 4,436 tons or 29.7%, as compared to 14,940 metric tons for the three months ended September 30, 2024.

For the three months ended September 30, 2025, Yuxing’s net sales were $2,450,597, an increase of $110,153 or 4.7%, from $2,340,444 for the three months ended September 30, 2024.

For the three months ended September 30, 2025, Antaeus’s net sales were $0, a decrease of $163,295 or 100.0%, from $163,295 for the three months ended September 30, 2024. This decline resulted from the Company's decision to phase out its mining operations, which commenced in October 2024 due to sustained losses.

Cost of Goods Sold

Total cost of goods sold for the three months ended September 30, 2025 was $11,004,579, a decrease of $2,373,790, or 17.7%, from $13,378,369 for the three months ended September 30, 2024. The decrease was mainly due lower sales.

Cost of goods sold by Jinong for the three months ended September 30, 2025 was $4,340,170, a decrease of $388,717, or 8.2%, from $4,728,887 for the three months ended September 30, 2024. This decrease was primarily due to the 8.4% decrease in net sale in last three months ended September 30, 2025.

Cost of goods sold by Gufeng for the three months ended September 30, 2025 was $4,588,338, a decrease of $1,918,795, or 29.5%, from $6,507,133 for the three months ended September 30, 2024. This decrease was primarily due to the 29.9% decrease in net sale in last three months ended September 30, 2025.

For three months ended September 30, 2025, cost of goods sold by Yuxing was $2,076,071, an increase of $135,433, or 7.0%, from $1,940,638 for the three months ended September 30, 2024. This increase was primarily due to the 4.7% increase in net sale in last three months ended September 30, 2025.

For the three months ended September 30, 2025, cost of goods sold by Antaeus was $0, a decrease of $201,711, or 100.0%, from $201,711 for the three months ended September 30, 2024.

Gross Profit

Total gross profit for the three months ended September 30, 2025 decreased by $530,638, or 13.3%, to $3,455,932, as compared to $3,986,570 for the three months ended September 30, 2024. Gross profit margin percentage was 23.9% and 23.0% for the three months ended September 30, 2025 and 2024, respectively.

Gross profit generated by Jinong decreased by $236,284, or 8.8%, to $2,456,487 for the three months ended September 30, 2025 from $2,692,771 for the three months ended September 30, 2024. Gross profit margin percentage from Jinong’s sales was approximately 36.1% and 36.3% for the three months ended September 30, 2025 and 2024, respectively. The decrease in gross profit margin percentage was mainly due to the increase in product costs.

For the three months ended September 30, 2025, gross profit generated by Gufeng was $624,919, a decrease of $307,490, or 33.0%, from $932,409 for the three months ended September 30, 2024. Gross profit margin percentage from Gufeng’s sales was approximately 12.0% and 12.5% for the three months ended September 30, 2025 and 2024, respectively. The decrease in gross profit margin percentage was mainly due to the increase in product costs.

For the three months ended September 30, 2025, gross profit generated by Yuxing was $374,526, a decrease of $25,280, or 6.3% from $399,806 for the three months ended September 30, 2024. The gross profit margin percentage was approximately 15.3% and 17.1% for the three months ended September 30, 2025 and 2024, respectively.

For the three months ended September 30, 2025, gross profit generated by Antaeus was $0, a decrease of $38,416, or 100.0% from $(38,416) for the three months ended September 30, 2024. The gross profit margin percentage was approximately 0% and -23.5% for the three months ended September 30, 2025 and 2024, respectively.

Selling Expenses

Our selling expenses consisted primarily of salaries of sales personnel, advertising and promotion expenses, freight-out costs and related compensation. Selling expenses were $1,054,106, or 7.3%, of net sales for the three months ended September 30, 2025, as compared to $1,924,428, or 11.1%, of net sales for the three months ended September 30, 2024, a decrease of $870,322, or 45.2%. The decrease in selling expense was caused by the decrease in marketing activities.

The selling expenses of Jinong for the three months ended September 30, 2025 were $960,494 or 14.1% of Jinong’s net sales, as compared to selling expenses of $1,836,074 or 24.7% of Jinong’s net sales for the three months ended September 30, 2024. The selling expenses of Yuxing were $19,630 or 0.8% of Yuxing’s net sales for the three months ended September 30, 2025, as compared to $17,747 or 0.8% of Yuxing’s net sales for the three months ended September 30, 2024. The selling expenses of Gufeng were $73,982 or 1.4% of Gufeng’s net sales for the three months ended September 30, 2025, as compared to $70,607 or 0.9% of Gufeng’s net sales for the three months ended September 30, 2024. There were no selling expenses for Antaeus for the three months ended September 30, 2025 and 2024.

General and Administrative Expenses

General and administrative expenses consisted primarily of related salaries, rental expenses, business development, depreciation and travel expenses incurred by our general and administrative departments and legal and professional expenses including expenses incurred and accrued for certain litigation. General and administrative expenses were $1,214,227, or 8.4% of net sales for the three months ended September 30, 2025, as compared to $3,826,904, or 22.0% of net sales for the three months ended September 30, 2024, a decrease of $2,612,677, or 68.3%. The decrease in general and administrative expenses was mainly due to lower general and administrative expenses for Gufeng. Gufeng’s general and administrative expenses were $112,364 for the three months ended September 30, 2025, decreased $2,048,818, or 94.8%, as compared to $2,161,182 for the three months ended September 30, 2024.

Total Other Income (Expense)

Total other income (expense) consisted of income from subsidies received from the PRC government, interest income, interest expenses and bank charges. Total other expense for the three months ended September 30, 2025 was $100,070, as compared to other expense of $116,079 for the three months ended September 30, 2024. The decrease was mainly due to lower bank charges for the three months ended September 30, 2025 as compared to the same period in 2024.

Income Taxes

Jinong is subject to a preferred tax rate of 15% because of its business being classified as a High-Tech project under the PRC Enterprise Income Tax Law (“EIT”) that became effective on January 1, 2008. Jinong incurred no income tax expenses for the three months ended September 30, 2025 and 2024.

Gufeng is subject to a tax rate of 25%, incurred no income tax expenses for the three months ended September 30, 2025 and 2024.

Yuxing inccured no income tax for the three months ended September 30, 2025 and 2024 because of being exempted from paying income tax due to its products fall into the tax exemption list set out in the EIT.

Antaeus is subject to a tax rate of 21% and had income tax expense of $(268) for the three months ended September 30, 2025, a decrease of $38,610, or 99.3%, compared to $(38,878) for the three months ended September 30, 2024.

Net income (loss)

Net income (loss) for the three months ended September 30, 2025 was $1,087,797, an increase of $2,930,022, or 159%, compared to net loss of $(1,842,225) for the three months ended September 30, 2024. Net income (loss) as a percentage of total net sales was approximately 7.5% and -10.6% for the three months ended September 30, 2025 and 2024, respectively.

Discussion of Segment Profitability Measures

As of September 30, 2025, we were engaged in the following businesses: the production and sale of fertilizers through Jinong and Gufeng, the production and sale of high-quality agricultural products by Yuxing and the production and sale of Bitcoin by Antaeus. For financial reporting purpose, our operations were organized into four main business segments based on locations and products: Jinong (fertilizer production), Gufeng (fertilizer production), Yuxing (agricultural products production) and Antaeus (Bitcoin). Each of the segments has its own annual budget about development, production and sales.

Each of the four operating segments referenced above has separate and distinct general ledgers. The chief operating decision maker (“CODM”) makes decisions with respect to resources allocation and performance assessment upon receiving financial information, including revenue, gross margin, operating income and net income produced from the various general ledger systems; however, net income by segment is the principal benchmark to measure profit or loss adopted by the CODM.

For Jinong, the net income increased by $1,142,681, or 5817.5%, to $1,123,039 for the three months ended September 30, 2025, from the net loss of $(19,642) for the three months ended September 30, 2024. The increase in net income was principally due to lower general and administrative expenses and selling expenses.

For Gufeng, the net income increased by $1,738,123, or 130.1%, to $402,424 for the three months ended September 30, 2025, from the net loss of $(1,335,699) for the three months ended September 30, 2024. The increase in net income was principally due to the decrease in general and administrative expenses.

For Yuxing, the net income decreased $155,387 or 69.7%, to $67,436 for the three months ended September 30, 2025 from $222,823 for the three months ended September 30, 2024. The decrease was mainly due to higher general and administrative expenses.

For Antaeus, the net loss decreased by $145,248, or 99.3%, to $(1,009) for the three months ended September 30, 2025, from $(146,257) for the three months ended September 30, 2024.

Liquidity and Capital Resources

The Company has historically funded operations through cash flows from operations and financing activities. On October 13, 2025, the NYSE Regulation commenced delisting proceedings for the Company’s common stock (ENFY) and trading was suspended. Management is currently evaluating options to mitigate the potential negative effects of the delisting on liquidity and access to capital, including the potential need for additional financing and the possibility of debt covenant waivers. There can be no assurance that any plan will be implemented or successful. See Notes 17 and 3 for additional context.

Our principal sources of liquidity include cash from operations, borrowings from local commercial banks and net proceeds of offerings of our securities.

As of September 30, 2025, cash and cash equivalents were $53,253,117, an increase of $733,699, or 1.4%, from $52,519,418 as of June 30, 2025.

We intend to use the net proceeds from our securities offerings, as well as other working capital if required, to acquire new businesses, upgrade production lines and complete Yuxing’s new greenhouse facilities for agriculture products located on 88 acres of land in Hu County, 18 kilometers southeast of Xi’an city. We believe that we have sufficient cash on hand and positive projected cash flow from operations to support our business growth for the next twelve months to the extent we do not have further significant acquisitions or expansions. However, if events or circumstances occur and we do not meet our operating plan as expected, we may be required to seek additional capital and/or to reduce certain discretionary spending, which could have a material adverse effect on our ability to achieve our business objectives. Notwithstanding the foregoing, we may seek additional financing as necessary for expansion purposes and when we believe market conditions are most advantageous, which may include additional debt and/or equity financings. There can be no assurance that any additional financing will be available on acceptable terms, if at all. Any equity financing may result in dilution to existing stockholders and any debt financing may include restrictive covenants.

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

	Three Months Ended
	September 30,
	2025			2024
Net cash used in operating activities	$	(1,318,192	)	$	(2,553,911	)
Net cash used in investing activities		(12,952	)		(8,544,101	)
Net cash (used in) provided by financing activities		(512,578	)		1,983,456
Effect of exchange rate change on cash and cash equivalents		2,577,421			1,819,541
Net increase (decrease) in cash and cash equivalents		733,699			(7,295,015	)
Cash and cash equivalents, beginning balance		52,519,418			58,772,587
Cash and cash equivalents, ending balance	$	53,253,117		$	51,477,572

Operating Activities

Net cash used in operating activities was $1,318,192 for the three months ended September 30, 2025, a decrease of $1,235,719, or 48.4%, from net cash used in operating activities of $2,553,911 for the three months ended September 30, 2024. The decrease in cash used in operating activities was mainly due to an increase in net income with amount of $2,930,022 during the three months ended September 30, 2025 as compared to the same period in 2024.

Investing Activities

Net cash used in investing activities for the three months ended September 30, 2025 was $12,952, compared to net cash used in investing activities of $8,544,101 for the three months ended September 30, 2024. This decrease was mainly attributed to the long-term equity investment with amount of $8,495,862 during the three months ended September 30, 2024.

Financing Activities

Net cash used in financing activities for the three months ended September 30, 2025 was $512,578, a decrease of $2,496,034, or 125.8% compared to $1,983,456 net cash provided by financing activities for the three months ended September 30, 2024. The decrease was mainly due to repayment of loans with amount of $511,362 during the three months ended September 30, 2025.

As of September 30, 2025, and June 30, 2025, our loans payable was as follows:

	September 30,		June 30,
	2025		2025
Short term loans payable:	$	9,562,517	$	4,720,934
Long term loans payable:		2,612,556		7,889,627
Total	$	12,175,073	$	12,610,561

Accounts Receivable

We had accounts receivable of $20,678,903 as of September 30, 2025, as compared to $19,345,061 as of June 30, 2025, an increase of $1,333,842, or 6.9%.

Allowance for doubtful accounts in accounts receivable as of September 30, 2025 was $30,744,907, an increase of $478,814, or 1.6%, from $30,266,093 as of June 30, 2025. And the allowance for doubtful accounts as a percentage of accounts receivable was 59.8% as of September 30, 2025 and 61.0% as of June 30, 2025.

Deferred assets

We had no deferred assets as of September 30, 2025 and June 30, 2025. During the three months, we assisted the distributors in certain marketing efforts and developing standard stores to expand our competitive advantage and market shares. Based on the distributor agreements, the amount owed by the distributors in certain marketing efforts and store development will be expensed over three years if the distributors are actively selling our products. If a distributor defaults, breaches, or terminates the agreement with us earlier than the contractual terms, the unamortized portion of the amount owed by the distributor is payable to us immediately. The deferred assets had been fully amortized as of September 30, 2025.

Inventories

We had inventories of $37,878,957 as of September 30, 2025, as compared to $36,975,287 as of June 30, 2025, an increase of $903,670, or 2.4%. The increase was primarily due to Gufeng’s inventory. As of September 30, 2025, Gufeng’s inventory was $9,844,987, compared to $9,458,569, as of June 30, 2025, an increase of $386,418, or 4.1%. The Company confirmed the loss of $0.1 million and $2.0 million of inventories for the three months ended September 30, 2025 and 2024, respectively.

Advances to Suppliers

We had advances to suppliers of $8,649,281 as of September 30, 2025 as compared to $12,367,419 as of June 30, 2025, representing a decrease of $3,718,138, or 30.1%. Our inventory level may fluctuate from time to time, depending how quickly the raw material is consumed and replenished during the production process, and how soon the finished goods are sold. The replenishment of raw material relies on management’s estimate of numerous factors, including but not limited to, the raw materials future price, and spot price along with its volatility, as well as the seasonal demand and future price of finished fertilizer products. Such estimate may not be accurate, and the purchase decision of raw materials based on the estimate can cause excessive inventories in times of slow sales and insufficient inventories in peak times.

Accounts Payable

We had accounts payable of $1,526,269 as of September 30, 2025 as compared to $1,736,031 as of June 30, 2025, representing a decrease of $209,762, or 12.1%.

Customer Deposits (Unearned Revenue)

We had customer deposits of $3,441,483 as of September 30, 2025 as compared to $4,526,024 as of June 30, 2025, representing a decrease of $1,084,541, or 24.0%. The decrease was mainly attributable to Jinong’ $527,458 unearned revenue as of September 30, 2025, compared to $1,463,976 unearned revenue as of June 30, 2025, increased $936,518, or 64.0%, caused by the advance deposits made by clients. This decrease was due to seasonal fluctuation and we expect to deliver products to our customers during the next three months at which time we will recognize the revenue.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Critical Accounting Policies and Estimates

Management’s discussion and analysis of its financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with United States generally accepted accounting principles. Our financial statements reflect the selection and application of accounting policies which require management to make significant estimates and judgments. See Note 2 to our consolidated financial statements, “Basis of Presentation and Summary of Significant Accounting Policies.” We believe that the following paragraphs reflect the most critical accounting policies that currently affect our financial condition and results of operations:

Use of estimates

Revenue recognition

Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, we have no other significant obligations and collectability is reasonably assured. Payments received before all the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue.

Our revenue consists of invoiced value of goods, net of a value-added tax (VAT). No product return or sales discount allowance is made as products delivered and accepted by customers are normally not returnable and sales discounts are normally not granted after products are delivered.

Cash and cash equivalents

For statement of cash flows purposes, we consider all cash on hand and in banks, certificates of deposit and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents.

Accounts receivable

Our policy is to maintain reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Any accounts receivable of Jinong and Gufeng that are outstanding for more than 180 days will be accounted as allowance for bad debts, and any accounts receivable of Yuxing that are outstanding for more than 90 days will be accounted as allowance for bad debts.

Deferred assets

Deferred assets represent amounts the Company advanced to the distributors in their marketing and stores development to expand our competitive advantage and market shares. Based on the distributor agreements, the amount owed by the distributors in certain marketing efforts and store development will be expensed over three years if the distributors are actively selling our products. If a distributor defaults, breaches, or terminates the agreement with us earlier than the realization of the contractual terms, the unamortized portion of the amount owed by the distributor is to be refunded to us immediately. The deferred assets had been fully amortized as of September 30, 2025.

Segment reporting

FASB ASC 280 requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other way management disaggregates a company.

As of September 30, 2025, we were organized into four main business units: Jinong (fertilizer production), Gufeng (fertilizer production), Yuxing (agricultural products production) and Antaeus (Bitcoin). For financial reporting purpose, our operations were organized into four main business segments based on locations and products: Jinong (fertilizer production), Gufeng (fertilizer production), Yuxing (agricultural products production) and Antaeus(Bitcoin). Each of the segments has its own annual budget regarding development, production, and sales.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Disclosures About Market Risk

We may be exposed to changes in financial market conditions in the normal course of business. Market risk generally represents the risk that losses may occur because of movements in interest rates and equity prices. We currently do not, in the normal course of business, use financial instruments that are subject to changes in financial market conditions.

Currency Fluctuations and Foreign Currency Risk

Substantially all our revenues and expenses are denominated in RMB. However, we use the U.S. dollar for financial reporting purposes. Conversion of RMB into foreign currencies is regulated by the People’s Bank of China through a unified floating exchange rate system. Although the PRC government has stated its intention to support the value of RMB, there can be no assurance that such exchange rate will not again become volatile or that RMB will not devalue significantly against U.S. dollar. Exchange rate fluctuations may adversely affect the value, in U.S. dollar terms, of our net assets and income derived from our operations in the PRC.

Our reporting currency is the U.S. dollar. Except for U.S. holding companies, all our consolidated revenues, consolidated costs and expenses, and our assets are denominated in RMB. As a result, we are exposed to foreign exchange risk as our revenues and results of operations may be affected by fluctuations in the exchange rate between the U.S. dollars and RMB. If RMB depreciates against the U.S. dollar, the value of our RMB revenues, earnings and assets as expressed in our U.S. dollar financial statements will decline. Assets and liabilities are translated at the exchange rates as of the balance sheet dates, revenues and expenses are translated at the average exchange rates, and shareholders’ equity is translated at historical exchange rates. Any resulting translation adjustments are not included in determining net income (loss) but are included in determining other comprehensive income, a component of shareholders’ equity. As of September 30, 2025, our accumulated other comprehensive loss was $25 million. We have not entered any hedging transactions to reduce our exposure to foreign exchange risk. The value of the RMB against the U.S. dollar and other currencies is affected by, among other things, changes in PRC’s political and economic conditions. Between July 1, 2025 and September 30, 2025, China’s currency increased by a cumulative 0.7% against the U.S. dollar, making Chinese exports more expensive and imports into China cheaper by that percentage. The effect on trade can be substantial. Moreover, it is possible that in the future, the PRC authorities may lift restrictions on fluctuations in the RMB exchange rate and lessen intervention in the foreign exchange market.

Interest Rate Risk

We deposit surplus funds with Chinese banks earning daily interest. We do not invest in any instruments for trading purposes. All our outstanding debt instruments carry fixed rates of interest. The amount of short-term debt outstanding as of September 30, 2025 and June 30, 2025 was $9.6 million and $4.7 million, respectively. We are exposed to interest rate risk primarily with respect to our short-term bank loans. Although the interest rates, which are based on the banks’ prime rates with respect to our short-term loans, are fixed for the terms of the loans, the terms are typically three to twelve months for short-term bank loans and interest rates are subject to change upon renewal. There was no material change in interest rates for short-term bank loans renewed during the three months ended September 30, 2025. The original loan term on average is one year, and the remaining average life of the short term-loans is approximately nine months.

Management monitors the banks’ prime rates in conjunction with our cash requirements to determine the appropriate level of debt balances relative to other sources of funds. We have not entered any hedging transactions to reduce our exposure to interest rate risk.

Credit Risk

We have experienced higher credit risk than usual since 2020. With the impact of COVID-19 pandemic, the overdue outstanding accounts receivable increased significantly compared with the years prior to the pandemic. Our accounts receivables are typically unsecured and are mainly derived from revenues earned from customers in the PRC. Most of our customers are individuals and small and medium-sized enterprises (“SMEs”), which may not have strong cash flows or be well capitalized. They may be vulnerable to an epidemic outbreak and slowing macroeconomic conditions. Many of the SMEs that we work with cannot weather COVID-19 and the resulting economic impact, or they cannot resume business as usual after a prolonged outbreak. Numerous distributors encountered significant difficulties and/or hardships in their businesses amid the pandemic. Even through our receivables are monitored regularly by our credit managers, the bad debts expenses are higher in recent 3 years comparing with the years before 2020.

Inflation Risk

Inflationary factors such as increases in the cost of our products and overhead costs may adversely affect our operating results. Notwithstanding the measures taken by the PRC government to control inflation, China still experienced an increase in inflation and our operating cost became higher than anticipated. The high rate of inflation had an adverse effect on our ability to maintain current levels of gross margin and selling, general and administrative expenses as a percentage of net revenues if the selling prices of our products do not increase with these increased costs.

Risk of epidemics, pandemics, or other outbreaks

The outbreak of COVID-19 has adversely affected, and in the future it or other epidemics, pandemics or outbreaks may adversely affect, our operations. This is or may be due to closures or restrictions requested or mandated by governmental authorities, disruption to supply chains and workforce, reduction of demand for our products and services, and credit losses when customers and other counterparties fail to satisfy their obligations to us. We share most of these risks with all businesses.

In addition, the COVID-19 outbreak has significantly increased economic and demand uncertainty. The current outbreak and continued spread of COVID-19 may cause a global recession, which would have a further adverse impact on our financial condition and operations, and this impact could exist for an extensive period.

The Company is continuing to monitor the situation and take appropriate actions in accordance with the recommendations and requirements of relevant authorities. The full extent of the impact of the COVID-19 pandemic on the Company’s operational and financial performance is currently uncertain and will depend on many factors outside the Company’s control, including, without limitation, the timing, extent, trajectory and duration of the pandemic, the development and availability of effective treatments and vaccines, the imposition of protective public safety measures, and the impact of the pandemic on the global economy and demand for consumer products.

Additional future impacts on the Company may include, but are not limited to, material adverse effects on demand for the Company’s products and services; the Company’s supply chain and sales and distribution channels; the Company’s ability to execute its strategic plans; and the Company’s profitability and cost structure. To the extent the COVID-19 pandemic adversely affects the Company’s business, results of operations, financial condition and stock price, it may also have the effect of heightening many of the other risks described above.

Item 4. Controls and Procedures

(a) Evaluation of disclosure controls and procedures

Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 (“Exchange Act”), at the conclusion of the period ended September 30, 2025 we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that as of the end of the period covered by this Report, our disclosure controls and procedures were effective and adequately designed to ensure that the information required to be disclosed by us in the reports we submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the applicable rules and forms and that such information was accumulated and communicated to our Chief Executive Officer and Chief Financial Officer, in a manner that allowed for timely decisions regarding required disclosure.

(b) Changes in internal controls

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during the quarter ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

On May 28, 2024, an individual commenced a lawsuit in Texas state court against the Company and its former co-CEO, Mr. Zhibiao Pan. The individual alleges that the Company used funds he stored in cryptocurrency wallets operated by entities related to Mr. Pan to purchase cryptocurrency mining sites. The Company has moved to dismiss the lawsuit in which motion is pending.

From time to time, the Company is a party to various legal actions or disputes that arise in the ordinary course of our business that we believe will not have a material effect on our business or financial condition, including claims and lawsuits alleging breaches of our contractual obligations. See Note 16, “Commitments and Contingencies” to the Consolidated Financial Statements.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

There were no unregistered sales of the Company’s equity securities during the three months ended September 30, 2025, that were not otherwise disclosed in a Current Report on Form 8-K.

Item 3. Defaults Upon Senior Securities

There has been no default in the payment of principal, interest, sinking or purchase fund installment, or any other material default, with respect to any indebtedness of the Company.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

There is no other information required to be disclosed under this item which was not previously disclosed.

Item 6. Exhibits

The exhibits required by this item are set forth in the Exhibit Index attached hereto.

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.

	ENLIGHTIFY INC.

Date: November 17, 2025	By:	/s/ Zhuoyu Li
	Name:	Zhuoyu Li
	Title:	Chief Executive Officer
		(principal executive officer)

Date: November 17, 2025	By:	/s/ Jian Huang
	Name:	Jian Huang
	Title:	Co-Chief Executive Officer
		(principal executive officer)

Date: November 17, 2025	By:	/s/ Yongcheng Yang
	Name:	Yongcheng Yang
	Title:	Chief Financial Officer
		(principal financial officer and principal accounting officer)

EXHIBIT INDEX

No.		Description
21.1*		List of Subsidiaries of the Company
31.1*		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*		Certification of Co-Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.3*		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1+		Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2+		Certification of Co-Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.3+		Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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).

*	Filed herewith

+	In accordance with the SEC Release 33-8238, deemed being furnished and not filed.

SEC Form 10-Q filed by Enlightify Inc.