SHFH 10-K & 10-Q changes, risk factors and insider trading

Results of Operations for three and six months ended MarchJune 31,30, 2026 and 2025

For the three and six months ended MarchJune 31,30, 2026, the Company has generated a revenue of $188,756.$84,303 and $273,059 respectively. The revenue generated was mainly from the retail sales of health supplements and topical creams, amount of $182,278$265,156 and provision of physical check-up services, amount of $6,478.$7,903.

For the three and six months ended MarchJune 31,30, 2025, the Company generated revenue in the amount of $44,824.$31,552 and $76,376 respectively. The revenue generated was mainly from the retail sales of health supplements and topical creams.

For the three and six months ended MarchJune 31,30, 2026, the Company has cost of revenues in the amount of $129,688.$55,194 and $184,882 respectively. Cost of retail trading revenue was $129,688,$184,882, while cost of service revenue was nil.

For the three and six months ended MarchJune 31,30, 2025, the Company has cost of revenues in the amount of $25,135.$18,013 and $43,148 respectively.

The cost of retail trading revenue was mainly from the products cost and delivery cost. Currently, our product costs are 50%60% off of the recommended retail price.price now. Pursuant to the non-exclusive distributor agreement with Scientist Home Limited, Scientist Home Limited shall have the right to revise products price at any time. Price changes shall apply to all purchase orders received after the effective date with the notice, except that any price increase shall be effective immediately upon notice to distributor and apply to those accepted but undelivered orders.

For the three and six months ended MarchJune 31,30, 2026, the Company incurred general and administrative expenses of $161,140.$126,961 and $288,101 respectively. These were primarily comprised of staff salary, rental fees, advertising, consultancy fees,fees , advertising, professional fees, audit fees, and other fees.

For the three and six months ended MarchJune 31,30, 2025, the Company had general and administrative expenses in the amount of $12,695.$51,687 and $64,382 respectively. These were primarily comprised of professional fees, audit fees, IT fees, rental fees, company incorporation fees, bank charges, filing fee, printing and stationery.

Our net loss for the three and six months ended MarchJune 31,30, 2026 was $102,072.$97,852 and $199,924 respectively.

Our net incomeloss for the three and six months ended MarchJune 31,30, 2025 waswere $6,059.$37,213 and $31,154 respectively.

The Company’s cash and cash equivalents hashave decreased from $68,888 as of December 31, 2025 to $15,332$9,047 as of MarchJune 31,30, 2026. The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. For the threesix months ended MarchJune 31,30, 2026, the Company incurred a net loss of $102,072$199,924 and net current liabilities of $120,220.$214,975. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. In addition, the Company’s independent registered public accounting firm, in its report on the Company’s December 31, 2025 financial statements, has expressed substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Net cash used in operating activities was $4,832$84,656 for the periodsix months ended MarchJune 31,30, 2025.2026. The cash used in operating activities was attributable to the net income,loss, contra by decreaseincrease in advances from a related party, increase in other payables and accrued liabilities, and increasedecrease in inventories.deposits and prepayments.

For the threesix months ended MarchJune 31,30, 2026 and 2025, the Company did not generate nor used any cash in investing activity.

Net cash provided by financing activities was $18,510$25,105 for the threesix months ended MarchJune 31,30, 2026, which was primarily due to advances from relateda partydirector and advances from director.a related party.

Net cash provided by financing activities was $2,346$102,959 for the threesix months ended MarchJune 31,30, 2025, which was primarily due to issuance of shares, advances from a director and advances from a related party.

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders as of MarchJune 31,30, 2026.

As of MarchJune 31,30, 2026, we have two operating lease agreements for two office spaces in Hong Kong with a non-cancellable term of two years from July 1, 2025, to June 30, 2027, and a non-cancellable term of three years from September 16, 2025 to September 15, 2028, respectively. The future minimum rental payments under these leases in the aggregate are approximately $195,823$172,549 and are due as follows: 2026: $69,114$46,013; 2027: $80,633$80,523; and 2028: $46,076,$46,013, respectively.

Management reviews inventory on hand for estimated obsolescence or unmarketable items, as compared to future demand requirements and the shelf life of the various products. Based on the review, the Company records inventory write-downs, when necessary, when costs exceed expected net realizable value. The Company did not recognize any inventory write-downs for the period ended MarchJune 31,30, 2026.

Despite the common ownership the Company and ScientificScientist Home Limited, the Company concludes that it controls the specified goods before they are transferred because it has entered into a non-exclusive distribution agreement that permits the Company to sell the products to its customers. The products purchased from the supplier are delivered and stored in the Company office. The Company has inventory risk before the goods is transferred to its customers. As part of this assessment, the Company also considers the three indicators of control in the standard and makes the following determinations that support its overall control evaluation: