A VIE is defined as a legal entity whose equity owners do not have sufficient equity at risk, or, as a group, the holders of the equity investment at risk lack any of the following three characteristics: decision-making rights, the obligation to absorb losses, or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and the obligation to absorb expected losses or the right to receive benefits from the entity that could potentially be significant to the VIE.

The Company followed ASC Topic 810, “Consolidation”, utilizing a qualitative approach, and determined that it is the primary beneficiary of its VIE, Aikawa Medical Management, Inc. (“AMM”) and consolidated the result of operations, financial conditions, and cash flows of AMM in the consolidated financial statements.

The following amounts and balances of AMM were included in the Company’s unaudited consolidated financial statements as of September 30, 2025 and December 31, 2024 and for the three and nine months ended September 30, 2025 and 2024:


	September 30, 2025		December 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$	3,328	$	41,247
Accounts receivable		17,307		20,076
Prepaid expenses and other current assets		—		32,493
Total Current Assets		20,635		93,816

Property and equipment, net		1,799,372		1,799,372
Loans receivables from subsidiaries of the Company		3,072,945		3,122,157
Other assets		2,276		2,275
Total Non-current Assets		4,874,593		4,923,804
Total Assets	$	4,895,228	$	5,017,620

LIABILITIES
Current Liabilities
Accounts payable	$	18,450	$	18,904
Accrued liabilities and other current liabilities		17,824		17,824
Due to related party		2,750,237		2,797,018
Total Current Liabilities		2,786,511		2,833,746

Loan payable to a subsidiary of the Company		8,268,794		8,245,328
Total Non-current Liabilities		8,268,794		8,245,328
Total Liabilities	$	11,055,305	$	11,079,074

NOTE 3 — VARIABLE INTEREST ENTITY (cont.)


	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2025			2024		2025			2024
Revenues	$	—		$	40,470	$	81,472		$	229,330
Cost of revenues	$	—		$	—	$	—		$	56,510
Total operating expenses	$	33,013		$	118,009	$	197,244		$	373,729
Net income (loss)	$	(33,013	)	$	17,461	$	(90,772	)	$	(105,909	)


	For the Nine Months Ended September 30,
	2025			2024
Net cash used in operating activities	$	(80,964	)	$	(120,365	)
Net cash provided by investing activities	$	25,000		$	95,000
Net cash used in financing activities	$	(46,781	)	$	(64,605	)