HFUS

Substantial doubt about the company's ability to continue as a going concern.

“The Company’s accumulated deficit, limited operating history under its new business model, and dependence on future operating performance and financing activities raise substantial doubt about its ability to continue as a going concern within one year after the date these condensed consolidated financial statements are issued. Management has developed plans intended to mitigate the conditions that raise substantial doubt. Based on the Company’s current operating plan, management expects continued revenue growth and projects the generation of operating income during the next twelve months, which is expected to improve operating cash flows and support ongoing operations. In addition, management plans to fund any short-term working capital needs through a combination of operating cash flows, potential equity or debt financing, and continued financial support from related parties if necessary. Historically, related parties have provided financial support to the Company in the form of advances to fund operations. As of the date of this filing, no formal written loan agreements, standby financing arrangements, guarantees, or other binding commitments from related parties have been executed. While management believes its plans are reasonable and that the company may be able to generate sufficient cash flows to support operations, such plans are dependent upon future events and circumstances, including achieving projected operating results and obtaining additional financing, if necessary, neither of which can be assured. Accordingly, management has concluded that substantial doubt about the Company’s ability to continue as a going concern has not been alleviated.”

View the 10-Q filed Jun 12, 2026