| SCHEDULE I-ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY |
SCHEDULE I—ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY COOTEK (CAYMAN) INC. CONDENSED BALANCE SHEETS | | | | | | | As of December 31, | | | 2024 | | 2025 | | | US$ | | US$ | ASSETS | | | | | Current assets: | | | | | Cash and cash equivalents | | 245,740 | | 1,006 | Prepaid expenses and other current assets | | 1,670 | | — | Total current assets | | 247,410 | | 1,006 | Advances to subsidiaries and VIEs | | 21,908 | | 121,376 | TOTAL ASSETS | | 269,318 | | 122,382 | LIABILITIES AND SHAREHOLDERS’ DEFICIT | | | | | Current liabilities: | | | | | Accrued expenses and other current liabilities | | 136,353 | | 100,571 | Accrued salary and benefits | | 250,000 | | 170,000 | Other current liabilities | | — | | — | Total current liabilities | | 386,353 | | 270,571 | Advances from subsidiaries and VIEs | | — | | — | Other non-current liabilities | | — | | — | TOTAL LIABILITIES | | 386,353 | | 270,571 | SHAREHOLDERS’ DEFICIT: | | | | | Ordinary shares | | 48,372 | | 48,372 | Additional paid-in capital | | 218,379,858 | | 218,417,583 | Accumulated deficit | | (216,859,796) | | (216,937,975) | Accumulated other comprehensive loss | | (1,685,469) | | (1,676,169) | Total shareholders’ deficit | | (117,035) | | (148,189) | TOTAL LIABILITIES AND SHAREHOLDERS’ (DEFICIT)/ EQUITY | | 269,318 | | 122,382 |
SCHEDULE I—ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY COOTEK (CAYMAN) INC. CONDENSED STATEMENTS OF OPERATIONS | | | | | | | | | For the years ended December 31, | | | 2023 | | 2024 | | 2025 | | | US$ | | US$ | | US$ | Net revenues | | — | | — | | — | Cost of revenues | | — | | — | | — | Gross loss | | — | | — | | — | Operating expenses: | | | | | | | General and administrative expenses | | (1,468,711) | | (438,071) | | (374,879) | Research and development expenses | | (39,909) | | (60,297) | | (24,033) | Sales and marketing expenses | | — | | — | | — | Other operating income, net | | 136,129 | | 136,129 | | 40,585 | Total operating expenses | | (1,372,491) | | (362,239) | | (358,327) | Loss from operations | | (1,372,491) | | (362,239) | | (358,327) | Interest expenses, net | | (7,490) | | 1,652 | | 4,740 | Fair value change of derivatives | | — | | — | | — | Foreign exchange gains (losses), net | | (1) | | (3) | | — | Loss before income taxes and equity in earnings of subsidiaries | | (1,379,982) | | (360,590) | | (353,587) | Net loss before equity in earnings of subsidiaries | | (1,379,982) | | (360,590) | | (353,587) | Equity in (loss) income of subsidiaries and share of (loss) income from VIEs | | (1,215,959) | | 424,159 | | 275,408 | Net (loss) income attributed to CooTek (Cayman) Inc. | | (2,595,941) | | 63,569 | | (78,179) |
SCHEDULE I—ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY COOTEK (CAYMAN) INC. CONDENSED STATEMENTS OF CASH FLOWS | | | | | | | | | For the years ended December 31, | | | 2023 | | 2024 | | 2025 | | | US$ | | US$ | | US$ | Operating activities: | | | | | | | Net (loss) income | | (2,595,941) | | 63,569 | | (78,179) | Equity in (income) loss of subsidiaries, VIEs and VIEs’ subsidiaries | | 1,215,959 | | (424,159) | | (275,408) | Adjustment to reconcile net loss to net cash provided by (used in) operating activities: | | | | | | | Share-based compensation | | 704,565 | | 134,560 | | 37,725 | Amortization of issuance cost and debt discounts related to convertible notes | | 51,797 | | — | | — | Change in fair value of derivatives | | — | | — | | — | Changes in assets and liabilities: | | | | | | | Accrued expenses and other current liabilities | | 292,842 | | (741,434) | | (35,784) | Other receivables, deposits and other assets | | — | | 1,692 | | 1,670 | Accrued salary and benefits | | (138,975) | | (33,000) | | (80,000) | Other non-current liabilities | | (136,129) | | (35,783) | | — | Net cash used in operating activities | | (605,882) | | (1,034,555) | | (429,976) | Investing activities: | | | | | | | Advances to subsidiaries and VIEs | | (4,819,580) | | (974,894) | | (2,136,760) | Repayment of advances to subsidiary | | 6,607,179 | | 2,250,000 | | 2,322,002 | Net cash provided by investing activities | | 1,787,599 | | 1,275,106 | | 185,242 | Financing activities: | | | | | | | Proceeds from issuance of ordinary shares upon exercise of options | | — | | — | | — | Repayment of convertible notes | | (1,806,453) | | — | | — | Net cash (used in) provided by financing activities | | (1,806,453) | | — | | — | Net (decrease) increase in cash, cash equivalents and restricted cash | | (624,736) | | 240,551 | | (244,734) | Cash, cash equivalents and restricted cash at beginning of year | | 629,925 | | 5,189 | | 245,740 | Cash, cash equivalents and restricted cash at end of year | | 5,189 | | 245,740 | | 1,006 |
SCHEDULE I—COOTEK (CAYMAN) INC CONDENSED FINANCIAL STATEMENTS Notes to Schedule I 1. Schedule I has been provided pursuant to the requirements of Rule 12-04(a) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. 2. The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries and VIEs and VIEs’ subsidiaries. For the parent company, the Company records its investments in subsidiaries VIEs and VIEs subsidiaries under the equity method of accounting as prescribed in ASC 323, Investments—Equity Method and Joint Ventures. 3. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted. The footnote disclosures provide certain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the accompanying consolidated financial statements. 4. As of December 31, 2024 and 2025, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of the Company.
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