This report and the information incorporated by reference herein and therein may contain “forward-looking statements” within the meaning of, and intended to qualify for the safe harbor from liability established by, the United States Private Securities Litigation Reform Act of 1995. These statements are based on our management’s beliefs and assumptions and on information currently available to us. These statements, which are not statements of historical fact, may contain estimates, assumptions, projections and/or expectations regarding future events, which may or may not occur. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. In some cases, you can identify these forward-looking statements by words or phrases such as “aim,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “should,” “will,” “would,” or similar expressions, including their negatives. We have based these forward looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements include:
| ● | our ability to purchase Bitcoin (“BTC”), Ethereum (“ETH” or “Ether”), Ethena governance token (“ENA”), stablecoins, or other crypto assets at the price that we want; |
| ● | our ability to reinitiate the ETH staking business; |
| ● | our ability to implement the strategic expansion into the stablecoin sector; |
| ● | our ability to obtain additional financing in the future to fund capital expenditures and our digital assets treasury reserve strategy and ability to create value; |
| ● | our ability to secure sufficient funding to support our current and proposed operations; |
| ● | our ability to manage our working capital requirements efficiently; |
| ● | the possibility that any of our new lines of businesses do not perform or operate as anticipated; |
| ● | the impact of certain industry trends on our performance; |
| ● | our ability and our customers’ ability to comply with applicable government and regulatory requirements in the numerous jurisdictions in which we and our customers operate; |
| ● | our cyber vulnerabilities and the anticipated effects on us if a cybersecurity threat or incident were to materialize; |
| ● | general economic, market, political and regulatory conditions, including anticipated changes in these conditions and the impact of such changes on customer demand and other facets of our business; |
| ● | the impact of any of the foregoing on the prevailing market price and trading volume of our Class A Ordinary Shares; |
| ● | the ongoing development of our short drama streaming business and our ability to continue development of our short drama streaming business model outside of the United States; |
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| ● | our ability to continue to be in compliance with the development of applicable regulatory regulations in connection with data, intellectual property and short video industry; |
| ● | our ability and our film makers’ ability to comply with applicable government and regulatory requirements in the numerous jurisdictions in which we and our film makers operate; |
| ● | future operating or financial results; |
| ● | future payments of dividends, if any, and the availability of cash for payment of dividends, if any; |
| ● | future acquisitions, business strategy and expected capital spending; |
| ● | assumptions regarding interest rates and inflation; |
| ● | ability to attract and retain senior management and other key employees; |
| ● | ability to manage our growth; |
| ● | fluctuations in general economic and business conditions; |
| ● | financial condition and liquidity, including our ability to obtain additional financing in the future (from warrant exercises or outside services) to fund capital expenditures, acquisitions and other general corporate activities; |
| ● | estimated future capital expenditures needed to preserve our capital base; |
| ● | the ability to meet the NYSE American continuing listing standards, and the potential delisting of our securities from NYSE American; |
| ● | potential changes in the legislative and regulatory environments; |
| ● | a lower return on investment; and |
| ● | potential volatility in the market price of our securities. |
The forward-looking statements contained in this report are based on our current expectations and beliefs concerning future developments and their potential effects on us. Future developments affecting us may not be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) and other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described under the heading “Risk Factors.” Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. These risks and others described under “Risk Factors” may not be exhaustive.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and developments in the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in this report. In addition, even if our results or operations, financial condition and liquidity, and developments in the industry in which we operate are consistent with the forward-looking statements contained in this report, those results or developments may not be indicative of results or developments in subsequent periods.
The forward-looking statements made in this annual report relate only to events or information as of the date on which these statements are made in this annual report. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this annual report. You should not rely upon forward-looking statements as predictions of future events.
You should carefully read the “Risk Factors” beginning on page 1 of this annual report for a discussion of information that should be considered before making a decision to purchase our Ordinary Shares. Below please find a summary of the principal risks we face, organized under relevant headings.
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IMPLICATIONS OF BEING AN “EMERGING GROWTH COMPANY”
AND A “FOREIGN PRIVATE ISSUER”
We qualify as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. As an “emerging growth company,” we may take advantage of certain exemptions from specified disclosure and other requirements that are otherwise generally applicable to public companies. These exemptions include:
| ● | not being required to comply with the auditor attestation requirements for the assessment of our internal control over financial reporting provided by Section 404 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”); |
| ● | reduced disclosure obligations regarding executive compensation; and |
| ● | not being required to hold a nonbinding advisory vote on executive compensation or seek shareholder approval of any golden parachute payments not previously approved. |
We may take advantage of these reporting exemptions until we are no longer an “emerging growth company.”
We are also considered a “foreign private issuer” within the meaning of the rules under the Securities Exchange Act of 1934 (as amended, the “Exchange Act”). As such, we are exempt from certain provisions applicable to United States domestic public companies. For example:
| ● | we are not required to provide as many Exchange Act reports, or as frequently, as a domestic public company; |
| ● | for interim reporting, we are permitted to comply solely with our home country requirements, which are less rigorous than the rules that apply to domestic public companies; |
| ● | we are not required to provide the same level of disclosure on certain issues, such as executive compensation; |
| ● | we are exempt from provisions of Regulation FD aimed at preventing issuers from making selective disclosures of material information; |
| ● | we are not required to comply with the sections of the Exchange Act regulating the solicitation of proxies, consents or authorizations in respect of a security registered under the Exchange Act; and |
| ● | we are not required to comply with Section 16(d) of the Exchange Act establishing insider liability for profits realized from any “short-swing” trading transaction |
| ● | the majority independent director requirement under Section 803 of the NYSE American LLC Company Guide; |
| ● | the requirement under Section 803 of the NYSE American LLC Company Guide that an audit committee must be comprised of at least three members; and |
| ● | the requirement under Section 713 of the NYSE American LLC Company Guide, to seek shareholder approval for the issuance of more than 20% of our outstanding shares at a price less than the Minimum Price (as defined in Section 713(c) therein). |
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Risk Relating to Our Short Video Drama Business
Risks and uncertainties related to our short video drama business and industry include, but are not limited to, the following:
| ● | We will need to raise additional capital or financing to continue to execute and expand our business. |
| ● | Expansion of the Company’s operations into new products, services and technologies, including content categories, is inherently risky and may subject it to additional business, legal, financial and competitive risks. |
| ● | If our efforts to attract and retain users are not successful, our business will be adversely affected. |
| ● | If we do not continuously provide value to our users, including making improvements to our service in a manner that is favorably received by them, our revenue, results of operations and business will be adversely affected. |
| ● | If we fail to grow and maintain our active user base, our business, financial condition and operating results may be materially and adversely affected. |
| ● | Our advertising offering is new and subject to various risks and uncertainties, which may adversely affect our business. |
| ● | We rely on our business collaborations with third parties, including major digital distribution platforms and mobile device manufacturers, to maintain and expand our user base. Our failure to maintain good relationships with these business partners may materially and adversely affect our business and operating results. |
| ● | We may be subject to notices or complaints alleging, among other things, our infringement of copyrights and delivery of illegal or inappropriate content through our products, which could lead to suspension or removal of such products from digital distribution platforms, a decrease of our user base, and a significantly adverse impact on our financial results and our reputation. |
| ● | We have international operations and plan to continue expanding our operations globally. We may face challenges and risks presented by our growing global operations, which may have a material and adverse impact on our business and operating results. |
| ● | Our product development and monetization strategies are highly dependent on our technology capabilities and infrastructure. If the amount of user data generated on our products declines, or if we fail to enhance or upgrade our technologies at a competitive pace, the effectiveness of our business model may be harmed and our operating results may be materially and severely affected. |
| ● | If we fail to correctly anticipate user preferences and develop and commercialize new products and services, we may fail to attract or retain existing users, the lifecycles of our mobile applications may end prematurely and our operating results may be materially and adversely affected. |
| ● | We may be held liable for information or content displayed on, distributed by, retrieved from or linked to the mobile applications integrated into our products, which may adversely impact our brand image and materially and adversely affect our business and operating results. |
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| ● | We may not be able to prevent unauthorized use of our intellectual property, which could harm our business and competitive position. |
| ● | We may be subject to intellectual property infringement lawsuits which could be expensive to defend and may result in our payment of substantial damages or licensing fees, disruption to our product and service offerings, and reputational harm. |
| ● | Yuder, as a Singapore-based company, is subject to laws and regulations of Singapore and each jurisdiction where our services are offered. Our operations require us to apply for specific licenses with Singapore authorities. |
| ● | Our efforts to secure necessary licenses and comply with regulatory standards are facing challenges, including the possibility that licenses may not be granted, or could be revoked or not renewed by regulatory authorities. |
| ● | Information technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other disruptions. |
| ● | Our compliance with regulatory requirements demands significant operational and financial resources. |
| ● | We face challenges in continuously monitoring and adapting to the varied regulatory environments across the various jurisdictions where we operate. |
| ● | We may encounter restrictions or outright bans in certain jurisdictions if we fail to comply with local regulations or content standards. |
Risks Related to our Digital Assets Treasury Reserve Strategy and Staking
Risks and uncertainties relatedto our Digital Assets Treasury Reserve Strategy and Staking include, but are not limited to, the following:
| ● | Digital Assets have historically experienced, and are expected to continue to experience, high price volatility which may influence our financial results and the market price of our Class A Ordinary Shares. |
| ● | Our operating results will be dependent on the price of Digital Assets that we own. If such price declines, our business, operating results, and financial condition would be adversely affected. |
| ● | Digital Assets are novel assets, and are subject to significant legal, commercial, regulatory, and technical uncertainty. |
| ● | Disruptions in the Digital Asset Market may adversely affect the ENA holdings and an investment in us. |
| ● | Future regulatory changes are impossible to predict. |
| ● | The launch of central bank digital currencies (“CBDCs”) may change consumer preferences and the perceived value or prospects of Digital Assets. |
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| ● | Our historical financial statements do not reflect the potential variability in earnings that we may experience in the future relating to our Digital Asset holdings. |
| ● | Pricing sources and valuation methodologies may not reflect realizable values in stress. |
| ● | The availability of spot ETPs for Bitcoin and other Digital Assets may adversely affect the market price of our Class A Ordinary Shares. |
| ● | We have recently announced our new Digital Assets treasury reserve strategy, and we may be unable to successfully implement it. |
| ● | Our Digital Asset treasury strategy subjects us to enhanced regulatory oversight. |
| ● | Due to the currently unregulated nature and lack of transparency surrounding the operations of many Digital Assets trading venues, Digital Asset trading venues may experience greater fraud, security failures or regulatory or operational problems than trading venues for more established asset classes, which may result in a loss of confidence in Digital Asset trading venues and adversely affect the value of the Digital Assets that we hold. |
| ● | There is the possibility that one or more blockchain networks related to the Digital Assets we hold could be manipulated. |
| ● | The concentration of our ENA holdings could enhance the risks inherent in our Digital Asset treasury strategy. |
| ● | Our Digital Asset holdings will be less liquid than existing cash and cash equivalents and may not be able to serve as a source of liquidity for it to the same extent as cash and cash equivalents. |
| ● | If we or our third-party service providers experience a security breach or cyberattack and unauthorized parties obtain access to our Digital Assets, or if our private keys are lost or destroyed, or other similar circumstances or events occur, we may lose some or all of our Digital Assets and our financial condition and results of operations could be materially adversely affected. |
| ● | We face risks relating to the custody of our Digital Assets, including the loss or destruction of private keys required to access our Digital Assets, and cyberattacks or other data loss relating to our Digital Assets. |
| ● | Re-staking and smart contract rehypothecation may layer risks. |
| ● | If Digital Assets that we hold are determined to constitute a security for purposes of the federal securities laws, such holdings could lead to our classification as an “investment company” under the Investment Company Act of 1940, as amended, or the ICA, and could adversely affect the market price of our Class A Ordinary Shares. |
| ● | We may be subject to regulatory developments related to Digital Assets and Digital Asset markets, which could adversely affect our business, financial condition, and results of operations. |
| ● | Our Digital Asset treasury strategy exposes us to risk of non-performance by counterparties |
| ● | Our custodially-held Digital Assets may become part of the custodian’s insolvency estate if one or more of our custodians enters bankruptcy, receivership or similar insolvency proceedings. |
| ● | A temporary or permanent blockchain “fork” to a Digital Asset blockchain network could adversely affect our business. |
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| ● | The due diligence procedures conducted by us and our liquidity provider to mitigate transaction risk may fail to prevent transactions with a sanctioned entity. |
| ● | Staking introduces a risk of loss of Digital Assets we stake, which could adversely affect the value of our Class A Ordinary Shares. |
| ● | Validator concentration and correlated infrastructure failures could amplify losses. |
| ● | Staked Digital Assets may be inaccessible for a variable period of time, determined by a range of factors, which could result in certain liquidity risk to the Company. |
| ● | Liquid staking tokens may deviate from underlying value and introduce additional risks. |
| ● | The Company will be dependent on third parties to effectively execute the Company’s Staking arrangements. |
| ● | The regulatory landscape surrounding Staking may change. |
| ● | Token unlocks and supply overhang may pressure prices and liquidity. |
| ● | Some Digital Assets do not have a cap on supply. |
| ● | A disruption of the Internet may affect Digital Asset network operations, which may adversely affect the Digital Asset industry and an investment in us. |
| ● | Blockchain networks’ decentralized governance structures may negatively affect their ability to grow and respond to challenges. |
| ● | Tax treatment of certain digital asset activities remains uncertain. |
Risks Related to our Company and our Securities
We are also subject to risks and uncertainties related to our company and securities, including, but not limited to, the following:
| ● | The ownership of our stock is highly concentrated in our management, and we have two controlling stockholders. |
| ● | We have a limited operating history in new short video drama business, so there is a limited track record on which to judge our business prospects and management. |
| ● | User metrics and other estimates are subject to inherent challenges in measurement, and real or perceived inaccuracies in those metrics could harm our business, revenue and financial results. |
| ● | We will need to raise additional capital or financing to continue to execute and expand our business. |
| ● | Our business depends on the continuing efforts of our management. If it loses their services, our business may be severely disrupted. |
| ● | We may not be able to prevent or timely detect cyber security breaches and may be subject to data, security and/or system breaches which could adversely affect our business operations and financial conditions. |
| ● | We do not maintain commercial insurance to cover loss of digital assets. |
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| ● | As a company incorporated in the Cayman Islands, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly from NYSE American corporate governance listing standards. These practices may afford less protection to shareholders than they would enjoy if we complied fully with NYSE American corporate governance listing standards. |
| ● | We are a foreign private issuer within the meaning of the Exchange Act, and as such we are exempt from certain provisions applicable to United States domestic public companies. |
| ● | We are subject to various laws relating to foreign corrupt practices, the violation of which could adversely affect its operations, reputation, business, prospects, operating results and financial condition. |
| ● | As of December 31, 2025, our internal control over financial reporting was ineffective, and if we continue to fail to improve such controls and procedures, investors could lose confidence in our financial and other reports, the price of our Class A Ordinary Shares may decline, and we may be subject to increased risks and liabilities. |
| ● | Compliance with the Sarbanes-Oxley Act of 2002 will require substantial financial and management resources and may increase the time and costs of completing an acquisition. |
| ● | The trading prices of our Class A Ordinary Shares could be volatile, which could result in substantial losses to our shareholders and investors. |
| ● | If our Class A Ordinary Shares becomes subject to the SEC’s penny stock rules, broker-dealers may experience difficulty in completing customer transactions, and trading activity in our securities may be adversely affected. |
| ● | An active trading market for our Class A Ordinary Shares may not develop, and you may not be able to easily sell your Class A Ordinary Shares. |
| ● | If we do not continue to satisfy the NYSE American continued listing requirements, our Class A Ordinary Shares could be delisted. |
| ● | Sales of a significant number of our share in the public market, or the perception that such sales could occur, could depress the market price of our Class A Ordinary Shares. |
| ● | We cannot predict the impact our multi-class share structure may have on the stock price of our Class A Ordinary Shares. |
| ● | There can be no assurance that we will not be a passive foreign investment company, or PFIC, for any taxable year, which could result in adverse U.S. federal income tax consequences to U.S. investors of our Class A Ordinary Shares. |
The foregoing risks are discussed more fully under “Item 3. Key Information—D. Risk Factors” beginning on page 1 of this annual report.
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