This Quarterly Report on Form 10-Q (the “Quarterly Report”) contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be preceded by, or contain, words such as “may,” “will,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “predict,” “potential,” “might,” “could,” “would,” “should” or other words indicating future results, though not all forward-looking statements necessarily contain these identifying words. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, without limitation, statements about our future business operations and results, our strategy and competition. These statements represent our current expectations or beliefs concerning various future events and involve numerous risks and uncertainties that could cause actual results to differ materially from expectations, including, but not limited to:
| ● | Our reliance on our top customers is significant. Failure to attract new customers or retain existing ones cost-effectively could materially and adversely impact our business, financial condition, and results of operations. |
| ● | We hold a substantial amount of accounts receivable, which may become uncollectible. |
| ● | Dismissing BF Borgers may cause significant expenses or delays in financings or SEC filings, affecting our stock price and market access. |
| ● | You are unlikely to collect judgments or exercise remedies against BF Borgers for their work as our auditor. |
| ● | We face fines and penalties from the Chinese government for not completing required filings . |
| ● | Our capacity to uphold the quality and safety standards of our products. |
| ● | Our ability to compete effectively within the touchscreen display industry. |
| ● | Without substantial additional financing, our ability to execute our business plan will be compromised. |
| ● | Failure to secure a new parcel for constructing our new buildings and facilities, as well as acquiring and installing new production lines on the new parcel, could materially and adversely affect our business, financial condition, and results of operations . |
| ● | Unavailability of preferential tax treatments and government subsidies, or successful challenges to our tax liability calculation by PRC tax authorities, may necessitate payment of tax, interest, and penalties exceeding our tax provisions. |
| ● | Significant interruptions in the operations of our third-party suppliers could potentially disrupt our operations. |
| ● | Risks associated with fluctuations in the cost, availability, and quality of raw materials may adversely affect our results of operations. |
| ● | We are reliant on key executives and highly qualified managers, and retention cannot be assured. |
ii
| ● | Absence of long-term contracts with our suppliers allows them to reduce order quantities or terminate sales to us at any time. |
| ● | Failure to adopt new technologies to evolving customer needs or emerging industry standards may materially and adversely affect our business. |
| ● | Lack of business liability or disruption insurance exposes us to significant costs and business disruption. |
| ● | Adverse regulatory developments in Mainland China may subject us to additional regulatory review, restrictions, disclosure requirements, and regulatory scrutiny by the SEC, increasing compliance costs and hindering future securities offerings. |
| ● | Our common stock may be prohibited from trading in the U.S. under the Holding Foreign Companies Accountable Act if PCAOB inspection of our auditor is incomplete, leading to delisting or prohibition and potential decline in stock value. |
| ● | Changes in China’s economic, political, or social conditions or government policies may adversely affect our business and operations. |
| ● | Uncertainties regarding the PRC legal system, including enforcement and sudden changes in laws and regulations, could adversely affect us and limit legal protections. |
| ● | Fluctuations in exchange rates could materially and adversely affect our results of operations and your investment value. |
| ● | The other risks and uncertainties discussed under the section titled “Risk Factors” beginning on page 13 of this Quarterly Report and our other filings with the Securities and Exchange Commission. |
The foregoing does not represent an exhaustive list of matters that may be covered by the forward-looking statements contained herein or risk factors that we are faced with. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. The forward-looking statements made in this Quarterly Report relate only to events or information as of the date of this Quarterly Report. Except as required by law, we undertake no obligation to update or revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
You should read this Quarterly Report with the understanding that our actual future results may be materially different from what we expect. We qualify all of the forward-looking statements in the foregoing documents by these cautionary statements.
iii
