ModuLink Inc. Releases 2025 Annual Report: Key Investor Highlights and Risks

Overview

ModuLink Inc., a Nevada holding company with principal operations through wholly-owned subsidiaries in Hong Kong and an affiliated company in Australia, has released its Annual Report on Form 10-K for the fiscal year ended December 31, 2025. The company, formerly known as International Endeavors Corporation, is engaged in the property development sector, adopting modular construction technology and offering MiC smart houses.

Key Financial and Corporate Information

• Common Stock Outstanding: As of March 31, 2026, ModuLink Inc. had 3,969,933,920 shares of common stock outstanding.
• Market Value: The aggregate market value of common shares held by non-affiliates as of June 30, 2025, was \$1,277,953, based on a closing price of \$0.0005 per share.
• Filing Status: ModuLink is classified as a non-accelerated filer and a smaller reporting company. It is not a shell company.
• Auditor Attestation: The company’s management assessment of internal control over financial reporting was not attested to by an independent auditor.
• Dividends: ModuLink does not anticipate paying dividends in the foreseeable future, focusing instead on reinvesting for future growth and innovation.

Corporate Structure and Regulatory Risks

Shareholders in ModuLink Inc. hold equity in the Nevada holding company only; they do not directly own interests in the Hong Kong subsidiaries. The ability to receive contributions from these subsidiaries is subject to Hong Kong and potential PRC regulatory approvals and restrictions. Any changes in regulations or interpretations could have a material adverse effect on the company’s operations and the value of its securities, including the risk of shares becoming worthless.

The company emphasizes several significant legal and regulatory risks due to its operations in Hong Kong and potential exposure to PRC policies:

• Uncertainty in the regulatory environment, especially regarding foreign ownership, data security, and capital flows between Hong Kong, China, and the U.S.
• If the PRC government intervenes, restricts, or prohibits the holding company structure, ModuLink’s ability to continue operations, raise capital, or offer shares could be severely impacted.
• Recent U.S. regulatory actions (Holding Foreign Companies Accountable Act, SEC and PCAOB statements) could result in trading prohibitions or delisting if ModuLink’s auditor cannot be fully inspected.
• PRC law changes may subject the company to additional taxes, limitations on cash transfers, and controls on capital flows.

Operational and Strategic Developments

• Acquisition and Business Focus: On March 28, 2025, ModuLink completed the acquisition of ModuLink Investment Limited to expand its property development business, emphasizing modular construction technology.
• Sales and Marketing Strategies: The company is leveraging online platforms, social media, and real estate listings, as well as partnerships with real estate agents, to market and sell MiC smart houses.
• Board and Management: The company is led by a board of directors with 3 executive and 2 non-executive members, supported by 3 employees and 6 consultants across Hong Kong, Australia, Canada, and Europe.
• Recent Capital Structure Changes: The rights and conversion ratios of Series A Convertible Preferred Stock have been increased (each share now votes/convert into 20,000 common shares), while Series B Preferred Stock has been cancelled.

Risks Highlighted for Shareholders (Potentially Price Sensitive)

• PRC Regulatory Risks: Although the company is not currently required to obtain approval from PRC authorities for its business or securities offerings, there is a risk that future law or interpretation changes could require such approvals, with material negative consequences for operations and share value.
• Cash Flow Restrictions: As a holding company, ModuLink relies on cash transfers from its subsidiaries. Any restrictions on dividend payments or capital transfers (by Hong Kong or PRC authorities) could significantly impact liquidity, debt service, and the company’s ability to pay shareholders.
• Delisting and Trading Prohibitions: The risk of ModuLink’s shares being delisted from U.S. OTC Markets has increased, especially if its auditor cannot be fully inspected by the PCAOB, following U.S. regulatory tightening.
• Taxation Uncertainty: The company and its investors may face adverse PRC tax consequences if classified as a “Resident Enterprise” under PRC law, potentially affecting global income and dividend payments.
• Enforcement of Judgments: Because of the company’s structure and foreign subsidiaries, it may be difficult for U.S. investors to enforce judgments or effect service of process against the company or its management abroad.
• No Current Dividends: The company does not expect to pay dividends in the foreseeable future, as it is reinvesting to support growth and innovation.

Business Outlook and Forward-Looking Statements

ModuLink’s management has outlined expectations for investment in capital expenditures, ongoing expansion, and efforts to position itself in the sustainable, modular construction market. However, the company faces considerable uncertainty due to regulatory, operational, and market risks, especially in regards to its Hong Kong and potential PRC exposure. The company’s ability to generate cash flow, access capital, and remain listed on U.S. markets is contingent upon stable regulatory environments in both the U.S. and China/Hong Kong.

Conclusion

Investors should be aware that, while ModuLink is pursuing growth in a promising sector (modular, sustainable construction), its unique holding company structure, exposure to changing regulatory regimes in Hong Kong and China, and the risk of U.S. regulatory action represent material risks that could significantly affect share value, up to and including the risk of shares becoming worthless.

Disclaimer: This article is a summary based on ModuLink Inc.’s 2025 Annual Report and is intended for informational purposes only. It does not constitute investment advice or an offer to buy or sell any securities. Investors should consult the original filings and conduct their own due diligence before making any investment decisions.

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