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Connie Kang, PartnerEmail: ckang@wealthfsllc.com Linkage Global IncCONSOLIDATED BALANCE SHEETSAS OF SEPTEMBER 30, 2024 AND 2023(In U.S. dollars, except for share and per share data, or otherwise noted) As of September 30, 2024 2023 USD ASSETS Current assets Cash and cash equivalents 2,000,732 1,107,480 Accounts receivable, net 6,302,696 2,011,047 Inventories, net 66,331 679,732 Deferred offering costs — 1,076,253 Deposits paid to media platforms 482,650 3,717,773 Prepaid expenses and other current assets, net 2,689,581 1,053,687 Short-term loan to third party 410,000 — Total current assets 11,951,990 9,645,972 Non-current assets Property and equipment, net 85,807 158,642 Deferred tax assets — 149,129 Right-of-use assets, net 653,730 624,945 Other non-current assets — 54,825 Total non-current assets 739,537 987,541 TOTAL ASSETS 12,691,527 10,633,513 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts payable 624,723 1,142,667 Accrued expenses and other current liabilities 236,813 309,986 Short-term debts 32,810 — Current portion of long-term debts 428,702 535,226 Contract liabilities 533,625 530,488 Amounts due to related parties 314,544 1,413,604 Lease liabilities - current 231,978 187,214 Convertible bonds 964,865 — Income tax payable 1,017,619 581,235 Total current liabilities 4,385,679 4,700,420 Non-current liabilities Long-term debts 839,560 1,996,326 Lease liabilities - noncurrent 441,504 439,854 Total non-current liabilities 1,281,064 2,436,180 Total liabilities 5,666,743 7,136,600 Commitments and contingencies (Note 22) Shareholders’ equity Ordinary shares (par value of US$0.00025 per share; 200,000,000 ordinary shares authorized, 21,500,000 and 20,000,000 ordinary shares issued and outstanding as of September 30, 2024 and 2023, respectively) * 5,375 5,000 Additional paid in capital 5,591,596 1,549,913 Statutory reserve 11,348 11,348 Retained earnings 1,613,217 2,052,553 Accumulated other comprehensive loss (196,752) (121,901)Total shareholders’ equity 7,024,784 3,496,913 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 12,691,527 10,633,513 Linkage Global IncCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS)FOR THE YEARS ENDED SEPTEMBER 30, 2024, 2023 AND 2022(In U.S. dollars, except for share and per share data, or otherwise noted) For the years endedSeptember 30, 2024 2023 2022 USD Revenues 10,289,681 12,733,339 22,028,303 Cost of revenues (6,123,025) (10,872,484) (18,323,802)Gross profit 4,166,656 1,860,855 3,704,501 Operating expenses General and administrative expenses (3,506,075) (1,373,695) (1,047,552)Selling and marketing expenses (434,856) (595,804) (812,062)Research and development expenses (302,280) (588,108) (628,350)Gain from disposal of property and equipment — 125,804 193,191 Total operating expenses (4,243,211) (2,431,803) (2,294,773)Operating (loss)/profit (76,555) (570,948) 1,409,728 Other income/(expenses) Investment income 44,570 2,119 8,402 Impairment loss from equity investment — (60,046) — Interest income/(expenses), net 160,685 (102,360) (79,455)Other non-operating income 21,644 14,557 113,658 Total other income/(expenses), net 226,899 (145,730) 42,605 Income/(loss) before income taxes 150,344 (716,678) 1,452,333 Income tax (provision)/ benefit (589,680) 63,950 (385,958)Net (loss)/income (439,336) (652,728) 1,066,375 Net (loss)/income (439,336) (652,728) 1,066,375 Other comprehensive income Foreign currency translation adjustment (74,851) (15,524) (57,722)Total comprehensive (loss) /income attributable to the Company’s ordinary shareholders (514,187) (668,252) 1,008,653 Earnings per ordinary share attributable to ordinary shareholders Basic and Diluted* (0.02) (0.03) 0.05 Weighted average number of ordinary shares outstanding Basic and Diluted* 21,175,342 20,000,000 20,000,000 Linkage Global IncCONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED SEPTEMBER 30, 2024, 2023 AND 2022(In U.S.
These strategies will help us navigate market fluctuations and achieve sustainable growth in the coming years.” Fiscal Year 2024 Financial Results Revenues Total revenues decreased by approximately USD2.44million, or 19.19%, from approximately USD12.73 million for the year ended September 30, 2023 to approximately USD10.29 million for the year ended September 30, 2024, primarily attributable to the decrease of cross-border sales.
Our breakdown of revenues by revenue streams for the years ended September 30, 2024 and 2023 is summarized below: For the Years Ended September 30, 2024 2023 USD USD Cross border Sales 6,476,939 10,587,053 Integrated E-commerce services 3,812,742 2,146,286 Fully managed e-commerce operation services 3,280,002 — Digital marketing services 312,180 1,527,247 Others 220,560 619,039 Total revenues 10,289,681 12,733,339 Our breakdown of revenues by geographic areas for the years ended September 30, 2024, and 2023 is summarized below: For the Years Ended September 30, 2024 2023 USD USD Japan 4,101,865 8,749,200 Hong Kong 3,612,126 1,987,182 China 2,575,690 1,996,957 Total revenues 10,289,681 12,733,339 Revenues from cross-border sales fell by USD 4.11 million, or 38.82%, from USD10.59 million in 2023 to USD6.48 million in 2024.
