ADDENTAX GROUP CORP.

Previous wording

The following discussion and analysis of our financial condition and results of operations for the three months ended June 30, 2025 and 2024 should be read in conjunction with the Financial Statements and corresponding notes included in this Report on Form 10-Q. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations, and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under the Risk Factors and Special Note Regarding Forward-Looking Statements in this report. We use words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” “target”, “forecast” and similar expressions to identify forward-looking statements.

Current wording

The following discussion and analysis of our financial condition and results of operations for the three and six months ended September 30, 2025 and 2024 should be read in conjunction with the Financial Statements and corresponding notes included in this Report on Form 10-Q. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations, and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under the Risk Factors and Special Note Regarding Forward-Looking Statements in this report. We use words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” “target”, “forecast” and similar expressions to identify forward-looking statements.

Previous wording

Our subsidiaries include (i) Yingxi Industrial Chain Group Co., Ltd., a Republic of Seychelles company; (ii) Yingxi Industrial Chain Investment Co., Ltd., a Hong Kong company (“Yingxi HK”); (iii) Qianhai Yingxi Textile & Garments Co., Ltd., a PRC company; (iv) Shenzhen Qianhai Yingxi Industrial Chain Services Co., Ltd, a PRC company (“YX”), (v) Dongguan Heng Sheng Wei Garments Co., Ltd, a PRC company (“HSW”), (vi) Dongguan Yushang Clothing Co., Ltd, a PRC company (“YS”), (vii) Shenzhen Yingxi Peng Fa Logistic Co., Ltd., a PRC company (“PF”); (viii) Shenzhen Xin Kuai Jie Transportation Co., Ltd, a PRC company (“XKJ”), (ix) Dongguan Aotesi Garments Co., Ltd.,, a PRC company (“AOT”), (x) Dongguan Hongxiang Commercial Co., Ltd., a PRC company (“HX”).

Current wording

Our subsidiaries include (i) Yingxi Industrial Chain Group Co., Ltd., a Republic of Seychelles company; (ii) Yingxi Industrial Chain Investment Co., Ltd., a Hong Kong company (“Yingxi HK”); (iii) Qianhai Yingxi Textile & Garments Co., Ltd., a PRC company; (iv) ShenzhenYingxi Industrial Chain Services Co., Ltd, a PRC company (“YX”), (v) Dongguan Heng Sheng Wei Garments Co., Ltd, a PRC company (“HSW”), (vi) Dongguan Yushang Clothing Co., Ltd, a PRC company (“YS”), (vii) Shenzhen Yingxi Peng Fa Logistic Co., Ltd., a PRC company (“PF”); (viii) Shenzhen Xin Kuai Jie Transportation Co., Ltd, a PRC company (“XKJ”), (ix) Dongguan Aotesi Garments Co., Ltd.,, a PRC company (“AOT”), (x) Dongguan Hongxiang Commercial Co., Ltd., a PRC company (“HX”).

Previous wording

“WFOE” refers to Qianhai Yingxi Textile & Garments Co., Ltd or “QYTG”, a wholly foreign owned enterprise in China, which is indirectly wholly owned by Addentax Group Corp.

Current wording

“WFOE” refers to Yingxi Textile & Garments Co., Ltd or “QYTG”, a wholly foreign-owned enterprise in China, which is indirectly wholly owned by Addentax Group Corp.

Previous wording

Our garment manufacturing business consists of sales made principally to wholesalers located in the PRC. We have our own manufacturing facilities, with sufficient production capacity and skilled workers on production lines to ensure that we meet our high quality control standards and delivery requirements for our customers. We conduct our garment manufacturing operations through five wholly owned subsidiaries, namely HSW, YS and AOT, which are located in the Guangdong province, China.

Current wording

Our garment manufacturing business consists of sales made principally to wholesalers located in the PRC. We have our own manufacturing facilities, with sufficient production capacity and skilled workers on production lines to ensure that we meet our high quality control standards and delivery requirements for our customers. We conduct our garment manufacturing operations through three wholly-owned subsidiaries, namely HSW, YS and AOT , which are located in the Guangdong province, China.

Previous wording

Our property management and subleasing business provides subleasing of shops and property management services to garment wholesalers and retailers in the garment market. We currently have an aggregate of 56,238 square meters floor space and provide approximately 1,300 shop space to clients. We conduct our property management and subleasing operation through a wholly owned subsidiary acquired in September 2023, HX, which is located in the Guangdong province, China. On July 1, 2025, the Company disposed of HX to its management. As of date of disposal, the net assets of HX was approximately $6,972. The consideration was $13,829, resulting in an income of $6,857 from disposal.

Current wording

Our property management and subleasing business provides subleasing of shops and property management services to garment wholesalers and retailers in the garment market. We currently have an aggregate of 56,238 square meters floor space and provide approximately 1,300 shop space to clients. We conduct our property management and subleasing operation through a wholly-owned subsidiary acquired in September 2023, HX, which is located in the Guangdong province, China. On July 1, 2025, the Company disposed of HX to its management. As of date of disposal, the net assets of HX was $6,972. The consideration was $13,829, resulting in an income of $6,857 from disposal.

Previous wording

The business objective and future plan for our logistics services segment is to establish an efficient logistics system and to build a nationwide delivery and courier network in China. As of June 30, 2024, we provide logistics services to over 44 cities in approximately 10 provinces and 2 municipalities. We expect to develop 20 additional logistics routes in existing serving cities and improve the Company’s profit in the year 2025.

Current wording

The business objective and future plan for our logistics services segment is to establish an efficient logistics system and to build a nationwide delivery and courier network in China. As of September 30, 2024, we provide logistics services to over 44 cities in 10 provinces and 2 municipalities. We expect to develop 20 additional logistics routes in existing serving cities and improve the Company’s profit in the year 2025.

Previous wording

The business objective of our property management and subleasing segment was to integrate resources in a shopping mall, develop develop e-commerce and the Internet celebrity economy increase the value of the stores in that area.

Current wording

The business objective of our property management and subleasing segment was to integrate resources in a shopping mall, develop e-commerce and the Internet celebrity economy and increase the value of the stores in that area.

Previous wording

We generally receive more purchase orders during our second and third quarters and fewer manufacture orders during May and June.

Current wording

We generally receive more purchase orders during our second and third quarters and fewer manufacturing orders during May and June.

Previous wording

We generally receive more delivery orders in our third and fourth quarters and are more vulnerable to shipping delays in the PRC during Chinese New Year due to traffic and port congestion, border crossing delays and customs clearance issues.

Current wording

We generally receive more delivery orders in our third and fourth quarters and are more vulnerable to shipping delays in the PRC during the Chinese New Year due to traffic and port congestion, border crossing delays and customs clearance issues.

Previous wording

ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, The Company generally use the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Current wording

ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, the Company generally uses the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Previous wording

Total revenue for the three months ended June 30, 2025 increased by approximately $0.1 million, or 15.3%, as compared with the three months ended June 30, 2024. The increase was mainly due to the increase of $0.3 million in logistics services revenue.

Current wording

Total revenue for the three months ended September 30, 2025 decreased by approximately $0.3 million, or 26.3%, as compared with the three months ended September 30, 2024. The decrease was mainly due to the decrease of $0.1 million in garment manufacturing business revenue and decrease of $0.2 million in logistics services revenue.

Previous wording

Revenue generated from our garment manufacturing business contributed approximately $0.02 million, or 2.0%, of our total revenue for the three months ended June 30, 2025. By comparison, revenue generated from garment manufacturing business contributed approximately $0.09 million or 10.2% of our total revenue for the three months ended June 30, 2024. The low level of sales was mainly due to a decrease in order volume and fierce market competition

Current wording

Revenue generated from our garment manufacturing business contributed approximately $0.01 million, or 1.6%, of our total revenue for the three months ended September 30, 2025. By comparison, revenue generated from garment manufacturing business contributed approximately $0.1 million or 11.1% of our total revenue for the three months ended September 30, 2024. The low level of sales was mainly due to a decrease in order volume and fierce market competition.

Previous wording

Revenue generated from our logistics services business contributed approximately $0.8 million, or 82.2%, of our total revenue for the three months ended June 30, 2025. By comparison, revenue generated from our logistic business contributed approximately $0.5 million or 57.2% of our total revenue for the three months ended June 30, 2024.

Current wording

Revenue generated from our logistics services business contributed approximately $0.8 million, or 98.4%, of our total revenue for the three months ended September 30, 2025. By comparison, revenue generated from our logistic business contributed approximately $1.0 million or 71.9% of our total revenue for the three months ended September 30, 2024.

Previous wording

Raw material costs for our garment manufacturing business were approximately 35.3% of our total garment manufacturing business revenue for the three months ended June 30, 2025, as compared with 43.5% for the three months ended June 30, 2024. The decrease in percentage was mainly due to a reduction in the costs of the raw materials.

Current wording

Raw material costs for our garment manufacturing business were approximately 49.8% of our total garment manufacturing business revenue for the three months ended September 30, 2025, as compared with 58.8% for the three months ended September 30, 2024. The decrease in percentage was mainly due to a reduction in the costs of the raw materials.

Previous wording

For our logistic services business, we outsourced some of the business to our contractors. We relied on a few contractors, and the contracting fees to our largest contractor represented approximately 6.0% ($0.05 million) and nil% of total cost of revenues for our service segment for the three months ended June 30, 2025 and 2024, respectively. The increase was attributed to the use of contractors. We have not experienced any disputes with our contractors and we believe we maintain good relationships with our contract logistics services providers.

Current wording

For our logistic services business, we outsourced some of the business to our contractors. We relied on a few contractors, and the contracting fees to our largest contractor represented approximately 16.0% ($0.09 million) and nil% of total cost of revenues for our service segment for the three months ended September 30, 2025 and 2024, respectively. The increase was attributed to the use of contractors. We have not experienced any disputes with our contractors and we believe we maintain good relationships with our contract logistics services providers.

Previous wording

Fuel, toll and other costs for our logistics services business for the three months ended June 30, 2025 were approximately $0.6 million as compared with $0.2 million for the three months ended June 30, 2024. Fuel, toll and other costs for our logistics services business accounted for approximately 70.8% of our total service revenue for the three months ended June 30, 2025, as compared with 51.2% for the three months ended June 30, 2024. The increase was primarily attributable to a increased use of contractors during the quarter.

Current wording

Fuel, toll and other costs for our logistics services business for the three months ended September 30, 2025 were approximately $0.5 million as compared with $0.5 million for the three months ended September 30, 2024. Fuel, toll and other costs for our logistics services business accounted for approximately 62.4% of our total service revenue for the three months ended September 30, 2025, as compared with 53.0% for the three months ended September 30, 2024. The increase in percentage was primarily attributable to an increased use of contractors during the quarter.

Previous wording

Garment manufacturing business gross profit for the three months ended June 30, 2025 was $3,523, as compared with $27,267 for the three months ended June 30, 2024. Gross profit accounted for 17.7% of our total garment manufacturing business revenue for the three months ended June 30, 2025, as compared to 31.5% for the three months ended June 30, 2024. The decrease of gross profit ratio was mainly due to a decline in segment revenue, primarily driven by reduced sales on the Taobao platform, which resulted in less efficient absorption of fixed and variable costs across operations.

Current wording

Garment manufacturing business gross profit for the three months ended September 30, 2025 was $6,491, as compared with $17,679 for the three months ended September 30, 2024. Gross profit accounted for 50.2% of our total garment manufacturing business revenue for the three months ended September 30, 2025, as compared to 47.0% for the three months ended September 30, 2024. The increase of gross profit ratio was mainly due to the procurement of products from external manufacturers for resale instead of manufacturing.

Previous wording

Gross profit in our logistics services business for the three months ended June 30, 2025 was approximately $186,891 and gross margin was 23.2%. Gross profit in our logistics services business for the three months ended June 30, 2024 was approximately $237,211 and gross margin was 48.8%. The decrease of gross profit ratio was mainly due to a combination of cost and market factors: significantly higher toll expenses; and a competitive “low-margin, high-volume” pricing strategy adopted to maintain market share amid intense economic competition, despite year-over-year revenue growth in the 2025 period.

Current wording

Gross profit in our logistics services business for the three months ended September 30, 2025 was $218,656 and gross margin was 27.1%. Gross profit in our logistics services business for the three months ended September 30, 2024 was $453,406 and gross margin was 47.0%. The decrease of gross profit ratio was mainly due to a combination of cost and market factors: significantly higher toll expenses; and a competitive “low-margin, high-volume” pricing strategy adopted to maintain market share amid intense economic competition, despite year-over-year revenue growth in the 2025 period.

Previous wording

Our selling expenses for our garment manufacturing business for the three months ended June 30, 2025 and 2024 was approximately $6,661 and $82,603, respectively. The selling expenses for property management and subleasing business for the three months ended June 30, 2025 and 2024 was approximately $46,846 and $56,757, respectively. Selling expenses consisted primarily of advertisement, local transportation, unloading charges and product inspection charges.

Current wording

Our selling expenses for our garment manufacturing business for the three months ended September 30, 2025 and 2024 were $4,643 and $13,400, respectively. Selling expenses consisted primarily of advertisement, local transportation, unloading charges and product inspection charges.

Previous wording

Our general and administrative expenses in our garment manufacturing business segment for the three months ended June 30, 2025 and 2024 were approximately $26,450 and $8,310, respectively. Our general and administrative expenses in our logistics services segment for the three months ended June 30, 2025 and 2024 were approximately $200,372 and $216,250, respectively. The general and administrative expenses in our property management and subleasing business were approximately $41,131 and $85,793 for the three months ended June 30, 2025 and 2024, respectively. Our general and administrative expenses in our corporate office for the three months ended June 30, 2025 and 2024 were approximately $311,806 and $257,898, respectively. General and administrative expenses consisted primarily of administrative salaries, office expense, certain depreciation and amortization charges, repairs and maintenance, legal and professional fees, warehousing costs and other expenses that are not directly attributable to our revenues.

Current wording

Our general and administrative expenses in our garment manufacturing business segment for the three months ended September 30, 2025 and 2024 were $4,569 and $2,653, respectively. Our general and administrative expenses in our logistics services segment for the three months ended September 30, 2025 and 2024 were $155,397 and $223,375, respectively. Our general and administrative expenses in our corporate office for the three months ended September 30, 2025 and 2024 were $510,384 and $274,855, respectively. General and administrative expenses consisted primarily of administrative salaries, office expense, certain depreciation and amortization charges, repairs and maintenance, legal and professional fees, warehousing costs and other expenses that are not directly attributable to our revenues.

Previous wording

Total general and administrative expenses for the three months ended June 30, 2025 increased by approximately 2.0% to $579,759 from $568,251 for the three months ended June 30, 2024.

Current wording

Total general and administrative expenses for the three months ended September 30, 2025 increased by approximately 34.3% to $670,352 from $499,193 for the three months ended September 30, 2024.

Previous wording

Loss from operations for the three months ended June 30, 2025 and 2024 was approximately $627,207 and $505,016, respectively. Loss from operations in our garment manufacturing segments was $29,587 and $63,645 for the three months ended June 30, 2025 and 2024, respectively. The decrease in losses was mainly due to implementing operational cost-saving measures. Income (loss) from operations in our logistics services segment was approximately $(13,481) and $20,879 for the three months ended June 30, 2025 and 2024, respectively. The increase in income was mainly due to increased sales. Loss from operations in our property management and subleasing business was $272,331 and $204,433 for the three months ended June 30, 2025 and 2024, respectively. The increase in loss was mainly due to the decreased rental rates. We incurred expenses from operations in corporate office of approximately $311,807 and $257,817 for the three months ended June 30, 2025 and 2024, respectively.

Current wording

Loss from operations for the three months ended September 30, 2025 and 2024 was $449,848 and $245,066, respectively. Loss from operations in our garment manufacturing segments was $2,723 and income from operation of $1,622 for the three months ended September 30, 2025 and 2024, respectively. The increase in losses was mainly due to the decrease in revenue. Income (loss) from operations in our logistics services segment was $63,258 and $229,558 for the three months ended September 30, 2025 and 2024, respectively. The decrease in income was mainly due to decreased sales. We incurred expenses from operations in corporate office of $510,383 and $274,381 for the three months ended September 30, 2025 and 2024, respectively.

Previous wording

Income tax expense for the three months ended June 30, 2025 and 2024 was approximately $764 and $465, respectively. YX primarily operates in the PRC and files tax returns in the PRC jurisdictions.

Current wording

Income tax expense for the three months ended September 30, 2025 and 2024 was $70 and $1,062, respectively. YX primarily operates in the PRC and files tax returns in the PRC jurisdictions.

Previous wording

We incurred net income of approximately $0.4 million and net loss of approximately $1.2 $ million for the three months ended June 30, 2025 and 2024, respectively. Our basic and diluted loss per share were ($0.06) and ($0.25) for the three months ended June 30, 2025 and 2024, respectively.

Current wording

We incurred net loss of approximately $0.1 million and net loss of approximately $0.7million for the three months ended September 30, 2025 and 2024, respectively. Our basic and diluted loss per share were ($0.01) and ($0.13) for the three months ended September 30, 2025 and 2024, respectively.

Previous wording

Labor costs for our garment manufacturing business was approximately 40.8% of our total garment manufacturing business revenue for the three months ended June 30, 2025, as compared with 20.9% for the three months ended June 30, 2024. We maintained a sustainable level in wages. The increase in portion of labor cost against revenue was mainly due to the decrease in revenue.

Current wording

Labor costs for our garment manufacturing business was approximately 24.8% of our total garment manufacturing business revenue for the six months ended September 30, 2025, as compared with 23.2% for the six months ended September 30, 2024. We maintained a sustainable level in wages. The increase in portion of labor cost against revenue was mainly due to the decrease in revenue.

Previous wording

Overhead and other expenses for our garment manufacturing business accounted for approximately 6.2% of our total garment business revenue for the three months ended June 30, 2025, as compared with 4.1% of total garment business revenue for the three months ended June 30, 2024.

Current wording

Overhead and other expenses for our garment manufacturing business accounted for approximately 3.8% of our total garment business revenue for the six months ended September 30, 2025, as compared with 4.5% of total garment business revenue for the six months ended September 30, 2024.

Previous wording

Summary cash flows information for the three months ended June 30, 2025 and 2024 is as follow:

Current wording

Summary cash flows information for the six months ended September 30, 2025 and 2024 is as follow:

Previous wording

Net cash used in operating activities in the three months ended June 30, 2025 was approximately $0.3 million as compared to $0.2 million in the three months ended June 30, 2024, which was approximately $0.1 million less than that of the three months ended June 30, 2024. The decrease was mainly due to (i) net income adjusted to operating cash flow for the three months ended June 30, 2025 was $0.3 million more than that of the three months ended June 30, 2024; (ii) the movement of operating assets and liabilities in the three months ended June 30, 2025 resulted in cash outflow of approximately $0.5 million, which was $0.4 million less than that of the corresponding period in 2024;.

Current wording

Net cash used in operating activities in the six months ended September 30, 2025 was approximately $0.9 million as compared to cash of $0.5 million provided by operating activities in the six months ended September 30, 2024, which was approximately $1.5 million less than that of the six months ended September 30, 2024. The decrease was mainly due to (i) net income adjusted to operating cash flow for the six months ended September 30, 2025 was $0.4 million more than that of the six months ended September 30, 2024; (ii) the movement of operating assets and liabilities in the six months ended September 30, 2025 resulted in cash outflow of approximately $1.2 million, which was $1.1 million more than that of the corresponding period in 2024;.

Previous wording

Net cash used in investing activities for the three months ended June 30, 2025 was approximately $0.08 million, which was mainly due to purchase of property, plant and equipment and disposal of subsidiaries.

Current wording

Net cash used in investing activities for the six months ended September 30, 2025 was approximately $0.27 million, which was $0.15 million more than the six months ended September 30, 2024. The cash outflow was mainly due to purchase of property, plant and equipment of $0.12 million and cash decrease of $0.16 million in disposal of subsidiaries.

Previous wording

Net cash provided by financing activities for the three months ended June 30, 2025 was approximately $0.6 million as compared to $0.3 million in the three months ended June 30, 2024, which was approximately $0.3 million less than the three months ended June 30, 2025. The increase was mainly because in the three months ended June 30, 2025, the Company had release of restricted cash of $1.3 million, paid net cash advance of $0.9 million to related parties, and received net proceeds from bank loans of $0.1 million. While in the three months ended June 30, 2024, the Company received proceeds from a private placement of $0.7 million, paid $0.5 million net cash advance to related parties, and received net proceeds from bank loans of $0.1 million.

Current wording

Net cash provided by financing activities for the six months ended September 30, 2025 was approximately $1.4 million as compared to cash used in financing activities of $0.4 million in the six months ended September 30, 2024, which was approximately $1.8 million less than the six months ended September 30, 2025. The increase was mainly because in the six months ended September 30, 2025, the Company had release of restricted cash of $2.7 million, paid net cash advance of $1.0 million to related parties, and payment of $0.39 million for redemption of convertible notes. While in the six months ended September 30, 2024, the Company released restricted cash of $1.3 million, paid $0.9 million net cash advance to related parties, and received net proceeds from bank loans of $0.1 million.

Previous wording

As of June 30, 2025, we had cash on hand of approximately $0.5 million, total current assets of approximately $30.0 million and current liabilities of approximately $4.9 million. We currently finance our operations from revenue, fund raising from our initial public offering and private placement proceeds and capital contributions from our chief executive officer, Mr. Zhida Hong.

Current wording

As of September 30, 2025, we had cash on hand of approximately $0.4 million, total current assets of approximately $27.8 million and current liabilities of approximately $1.1 million. We currently finance our operations from revenue, fund raising from our initial public offering and private placement proceeds and capital contributions from our chief executive officer, Mr. Zhida Hong.

Previous wording

Our operations are located in China, which may give rise to significant foreign currency risks from fluctuations and the degree of volatility in foreign exchange rates between the U.S. dollar and the Chinese Renminbi (“RMB”). All of our sales are in RMB. In the past years, RMB continued to appreciate against the U.S. dollar. As of June 30, 2025, the market foreign exchange rate was RMB 7.17 to one U.S. dollar. Our financial statements are translated into U.S. dollars using the closing rate method. The balance sheet items are translated into U.S. dollars using the exchange rates at the respective balance sheet dates. The capital and various reserves are translated at historical exchange rates prevailing at the time of the transactions while income and expenses items are translated at the average exchange rate for the period. All translation adjustments are included in accumulated other comprehensive income in the statement of equity. The foreign currency translation gain (loss) for the three months ended June 30, 2025 and 2024 was approximately $(0.04) million and $0.01 million, respectively.

Current wording

Our operations are located in China, which may give rise to significant foreign currency risks from fluctuations and the degree of volatility in foreign exchange rates between the U.S. dollar and the Chinese Renminbi (“RMB”). All of our sales are in RMB. In the past years, RMB continued to appreciate against the U.S. dollar. As of September 30, 2025, the market foreign exchange rate was RMB 7.12 to one U.S. dollar. Our financial statements are translated into U.S. dollars using the closing rate method. The balance sheet items are translated into U.S. dollars using the exchange rates at the respective balance sheet dates. The capital and various reserves are translated at historical exchange rates prevailing at the time of the transactions while income and expenses items are translated at the average exchange rate for the period. All translation adjustments are included in accumulated other comprehensive income in the statement of equity. The foreign currency translation gain (loss) for the six months ended September 30, 2025 and 2024 was approximately $(0.08) million and $(0.05) million, respectively.