Sharing Economy International Inc.: Form 10-Q for the period ended Jun 30, 2026

The following information should be read in conjunction with (i) the financial statements of Sharing Economy International Inc., a Nevada corporation (the “Company”), and the notes thereto appearing elsewhere in this Form 10-Q together with (ii) the more detailed business information and the December 31, 2025 audited financial statements and related notes included in the Company’s Form 10-K (File No. 001-34591; the “Form 10-K”), as filed with the Securities and Exchange Commission on May 8, 2026. Statements in this section and elsewhere in this Form 10-Q that are not statements of historical or current fact constitute “forward-looking” statements.

OVERVIEW

The Company was incorporated in the State of Nevada on July 25, 2012, and established a fiscal year end of December 31.

Going Concern

Material hurdles remain before we can significantly increase sales of our products and services. We must complete the design and development of our technology platform and establish relationships with third parties for the manufacture or supply of electric vehicles, charging infrastructure, and related maintenance services.

We currently estimate that approximately $1.5 million of additional capital will be required to complete these activities, which we expect could take approximately 12 months, subject to the availability of sufficient funding and other factors. We expect to fund these activities through a combination of revenues generated from our services and additional equity financing, including potential sales of our common stock.

We currently have no committed financing arrangements, and there can be no assurance that we will be able to obtain sufficient financing on acceptable terms, or at all. Any equity financing could result in substantial dilution to our existing shareholders. If we are unable to obtain sufficient financing, we may be required to delay, reduce, or modify our planned development and expansion activities, which could materially adversely affect our business, financial condition, and results of operations.

The Company plans to raise additional funds through debt or equity offerings. There is no guarantee that the Company will be able to raise any capital through this or any other offerings.

CRITICAL ACCOUNTING POLICIES

The discussion and analysis of our financial condition and results of operations are based on our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”). The preparation of these condensed consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We have identified the policies below as critical to our business operations and to the understanding of our financial results:

Basis of Accounting

The Company’s financial statements are prepared using the accrual method of accounting and are presented in United States Dollars.

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Basic Earnings (loss) per Share

The Company computes net income (loss) per share in accordance with ASC 260, Earnings per Share. ASC 260 specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock.

Basic net earnings (loss) per share amounts are computed by dividing the net earnings (loss) by the weighted average number of common shares outstanding. Diluted earnings (loss) per share are the same as basic earnings (loss) per share due to the lack of dilutive items in the Company.

Use of Estimates and Assumptions

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern.

Income Taxes

Income taxes are provided in accordance with ASC 740, Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Foreign Currency Translation

The Company’s functional and reporting currency is the United States dollar. Occasional transactions may occur in Chinese Renminbi or Australian Dollars. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate expenses. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of net income (loss).

Fair Value of Financial Instruments

The carrying amount of cash and current liabilities approximates fair value due to the short maturity of these instruments. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Unless otherwise noted, it is management’s opinion the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments.

Start-Up expenses

As a start-up company, the costs associated with start-up activities are expensed as incurred. Accordingly, start-up costs associated with the Company’s formation have been included in the Company’s general and administrative expenses.

Property and Equipment

Property and equipment are stated at cost. Major repairs and betterments are capitalized and normal maintenance and repairs are charged to expense as incurred. Depreciation is computed by the straight-line method over the estimated useful lives of the related assets. Upon retirement or sale of an asset, the cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in operations.

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Recent Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

PLAN OF OPERATION

We are an early-stage corporation and have generated revenues of $0 and $0, respectively, during the six-month periods ended June 30, 2026 and 2025. Accordingly, our plan of operation for the 12 months following the filing of this Quarterly Report on Form 10-Q is make sales of our products.

The Company believes it can satisfy its cash requirements through the fiscal year end of December 31, 2026, from its cash of $3,583 as of June 30, 2026. As of June 30, 2026, we had a working capital balance of $13,899,672.

RESULTS OF OPERATIONS

Three and Six Months Ended June 30, 2026, as compared to Three and Six Months Ended March 31, 2025:

We recorded sales revenues of $0 and $0, respectively, during the six months ended June 30, 2026 and 2025.

For the three months ended June 30, 2026 and 2025, general and administrative expenses were $76,464 and $4,968, respectively.

For the six months ended June 30, 2026 and 2025, general and administrative expenses were $166,419 and $10,192, respectively.

We recorded net losses of $82,447 and $4,973, respectively, during the three months ended June 30, 2026 and 2025.

We recorded net losses of $179,777 and $10,197, respectively, during the six months ended June 30, 2026 and 2025.

Liquidity and Capital Resources

At June 30, 2026, we had a cash balance of $3,583, and total current liabilities of $2,791,379, consisting primarily of accounts payable and accrued expenses and a convertible note payable, net of unamortized debt discount. Our working capital balance at June 30, 2026, was $13,899,672. We have sufficient cash on hand to fund our ongoing operational expenses through December 31, 2026.

Material hurdles remain before we can significantly increase sales of our products and services. We must complete the design and development of our technology platform and establish relationships with third parties for the manufacture or supply of electric vehicles, charging infrastructure, and related maintenance services.

We currently estimate that approximately $1.5 million of additional capital will be required to complete these activities, which we expect could take approximately 12 months, subject to the availability of sufficient funding and other factors. We expect to fund these activities through a combination of revenues generated from our services and additional equity financing, including potential sales of our common stock.

We currently have no committed financing arrangements, and there can be no assurance that we will be able to obtain sufficient financing on acceptable terms, or at all. Any equity financing could result in substantial dilution to our existing shareholders. If we are unable to obtain sufficient financing, we may be required to delay, reduce, or modify our planned development and expansion activities, which could materially adversely affect our business, financial condition, and results of operations.

At June 30, 2026, our total assets were $16,691,051, consisting of cash of $3,583, and pre-paid expenses of $5,351.

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At June 30, 2026, our total liabilities were $2,791,379 and stockholders’ equity was $13,899,672.

Cash Flows from Operating Activities

We have not generated positive cash flows from operating activities. Net cash used in operations was $(235,145) and $(10,197) for the six months ended June 30, 2026 and 2025, respectively.

Cash Flows from Financing Activities

Net cash flows (used in) provided by financing activities was $(24,419) and $18,889, for the six months ended June 30, 2026 and 2025, respectively.

Off-Balance Sheet Arrangements

We had no off-balance sheet arrangements for the six months ended June 30, 2026.

Subsequent Events

On August 2, 2026, the Company entered into a Share Exchange Agreement (the “Share Exchange Agreement”), by and among the Company, Light Across, Inc., a Delaware corporation (“Light Across”), and the holders of common shares of Light Across. The holders of the common stock of Light Across consisted of 16 stockholders.

Under the terms and conditions of the Share Exchange Agreement, the Company offered, sold and issued 4,998,838,436 shares of common stock in consideration for all the issued and outstanding shares in Light Across.

As a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act), we are not required to provide the information called for by this Item 3.

Evaluation of disclosure controls and procedures

Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as defined in Rule 13a-15(e) under the Exchange Act as of the end of the period covered by this Quarterly Report on Form 10-Q. In designing and evaluating the disclosure controls and procedures, our management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that, as of June 30, 2026, our disclosure controls and procedures were not effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in SEC rules, regulations and forms, and (ii) that such information is accumulated and communicated to our management, including our President and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in internal control over financial reporting

Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, has concluded there were no significant changes in our internal controls over financial reporting that occurred during this quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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As a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act), we are not required to provide the information called for by this Item 1A.