10-K/A - SCIENTIFIC ENERGY, INC (0001276531) (Filer)

Mon, Sep 30, 2:54 PM (4 days ago)

Scientific Energy, Inc. (the "Company") filed its Form 10-K/A (Amendment No. 2) for the fiscal year ending December 31, 2023, primarily to address SEC comments from its prior amendment. The Company reported a net income of $1,828,310, but has an accumulated deficit of $11,946,908, indicating ongoing financial challenges. The Company operates predominantly through its subsidiary in Macau, facing risks from Chinese government regulations and the potential for delisting under the Holding Foreign Companies Accountable Act (HFCAA) if PCAOB inspections are not conducted. The amendment restated sections on risk factors and disclosures regarding foreign jurisdiction inspections, emphasizing risks related to government oversight, currency controls, and the ability to transfer cash from subsidiaries. The Company's future outlook is uncertain, hinging on its ability to attract and retain customers and manage operational costs. Additionally, the Company’s common stock is classified as a penny stock, affecting marketability and liquidity, with minimal trading activity noted. The Company does not anticipate paying dividends in the foreseeable future.