ZNB Zeta Network Group

“Controls over the preparation and review of formal cash flow forecasts were not operating effectively. Management did not maintain sufficiently detailed and regularly updated forward-looking cash flow projections, including appropriate sensitivity analyses,”

“However, deficiencies remained in the design and operation of controls over the timely identification, evaluation, documentation and review of significant accounting judgments and estimates.”

“Our internal controls over financial reporting did not provide sufficiently effective supervision and review of the financial reporting process, including the preparation and review of significant accounting estimates, complex transactions and related financial statement disclosures.”

“The personnel primarily responsible for the preparation of our financial statements did not possess sufficient knowledge, experience and training in the application of U.S. GAAP commensurate with the complexity of our financial reporting requirements.”

“Based on this assessment, management concluded that our internal control over financial reporting was not effective as of June 30, 2026, due to the following material weaknesses:”

“Based on this evaluation, management concluded that our disclosure controls and procedures were not effective as of June 30, 2026, due to the material weaknesses in our internal control over financial reporting described below.”

“controls over preparation and review of formal cash flow forecasts were not operating effectively, and management did not prepare detailed, forward-looking cash flow projections to support its going concern assessment”

“deficiencies in the accounting assessment and review of complex cryptocurrency transactions and impairment of long-lived assets, particularly in relation to the recognition, classification, measurement and derecognition of cryptocurrency assets, and the preparation and review of supporting impairment analyses for cryptocurrency mining equipment”

“ineffective supervision of our internal and disclosure controls over financial reporting and disclosure processes”

“the personnel primarily responsible for the preparation of our financial statements did not have requisite levels of knowledge, experience and training in the application of U.S. GAAP commensurate with our financial reporting requirements”

“Our management, with the participation of our chief executive officer and chief financial officer, concluded that as of June 30, 2026 our disclosure controls and procedures were not effective due to material weaknesses in our internal control over financial reporting.”