UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

 WASHINGTON, DC 20549

 FORM 10-K

 (Mark One)

 ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the fiscal year ended December 31, 2023

 TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the transition period from ____________ to
____________

 Commission File Number: 001-13387

 Mega Matrix Corp.

 (Exact name of Registrant as Specified in Its Charter)

 Delaware

 94-3263974

 (State or Other Jurisdiction of

Incorporation or Organization)

 (IRS Employer

Identification No.)

 3000 El Camino Real,

 Bldg. 4, Suite 200, Palo Alto, CA 94306

 (Address of Principal Executive Offices)

 Registrant's telephone number, including
area code: (650) 340-1888

 Securities registered pursuant to Section 12(b)
of the Act:

 Title of each class

 Trading Symbol

 Name of each exchange on which registered

 Common Stock, par value $0.001 per share

 MPU

 NYSE American Exchange LLC

 Securities registered pursuant to Section 12(g)
of the Act: None

 Indicate by check mark if the registrant is a
well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

 Yes No

 Indicate by check mark if the registrant is not
required to file reports pursuant to Section 13 or Section 15(d) of the Act.

 Yes No

 Indicate by check mark whether the registrant:
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90 days.

 Yes No

has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405
of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

 Yes No

is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.
See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company,"
and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large accelerated filer

 Accelerated filer

 Non-accelerated filer

 Smaller reporting company

 Emerging growth company

 If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.

has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial
reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or
issued its audit report.

 If securities are registered pursuant to Section
12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction
of an error to previously issued financial statements.

 Indicate by check mark whether any of those error
corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's
executive officers during the relevant recovery period pursuant to §240.10D-1(b)

is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

has filed all documents and reports required to be fi led by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent
to the distribution of securities under a plan confirmed by a court. Yes No

 The
aggregate market value of the voting and non-voting common equity held by non-affiliates as of June 30, 2023, the last business day
of the registrant's most recently completed second fiscal quarter (based upon the closing sale price of the registrant's
common stock as of such date, as reported by the NYSE American Exchange) was $ 33,970,210. Shares of common stock held by the
registrant's officers and directors and beneficial owners of 10% or more of the outstanding shares of the registrant's
common stock have been excluded from the calculation of this amount because such persons may be deemed to be affiliates of the
registrant; however, the treatment of these persons as affiliates of the registrant for purposes of this calculation is not, and
shall not be considered, a determination as to whether any such person is an affiliate of the registrant for any other
purpose.

 The number of shares of the registrant's common stock outstanding
as of March 1, 2024 was 35,874,631.

 Documents incorporated by reference: None.

 CAUTIONARY LANGUAGE REGARDING FORWARD-LOOKING
STATEMENTS

 This Annual Report on Form 10-K includes "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and
Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Any statement in this report other than
statements of historical fact may be a forward-looking statement for purposes of these provisions, including any statements of our plans
and objectives for future operations, our future financial condition or economic performance (including known or anticipated trends),
and the assumptions underlying or related to the foregoing. Statements that include the use of terminology such as "may,"
"will," "expects," "plans," "anticipates," "estimates," "potential,"
"projected," "intends," "believes," or "continue," or the negative thereof, or other comparable
terminology, are forward-looking statements.

 Forward-looking statements in this report include
statements about the following matters, although this list is not exhaustive:

 the possibility that our new
lines of businesses do not perform or operate as anticipated

 the impact of certain industry
trends on our performance;

 our ability and our customers'
ability to comply with applicable government and regulatory requirements in the numerous jurisdictions in which we and our customers
operate;

 our cyber vulnerabilities and
the anticipated effects on us if a cybersecurity threat or incident were to materialize;

 general economic, market, political
and regulatory conditions, including anticipated changes in these conditions and the impact of such changes on customer demand and other
facets of our business;

 the impact of any of the foregoing
on the prevailing market price and trading volume of our common stock;

 the ongoing development of our short drama streaming business
and our ability to continue development of short drama streaming business model outside of the United States;

 our ability to continue to be in compliance with the development
of applicable regulatory regulations in connection with data, intellectual property and short video industry;

 our ability and our film makers' ability to comply
with applicable government and regulatory requirements in the numerous jurisdictions in which we and our film makers operate.

 All of our forward-looking statements involve
risks and uncertainties that could cause our actual results to differ materially from those projected or assumed by such forward-looking
statements. Among others, the factors that could cause such differences include: our ability to raise debt or equity financing when needed
on acceptable terms and in desired amounts, or at all; any noncompliance by our customers, including payment obligations; any economic
downturn or other financial crisis; any inability to compete effectively with our better capitalized competitors; limited trading volume
in our stock; potential changes in the legislative and regulatory environment; the occurrence of any event, change or other circumstances
that could affect our ability to continue successful development of our short drama streaming business; the possibility that we may not
succeed in developing our new lines of businesses due to, among other things, changes in the business environment, competition, changes
in regulation, or other economic and policy factors; and the possibility that the Company's new lines of business may be adversely
affected by other economic, business, and/or competitive factors. In addition, we operate in a competitive and evolving industry in which
new risks emerge from time to time, and it is not possible for us to predict all of the risks it may face, nor can it assess the impact
of all factors on its business or the extent to which any factor or combination of factors could cause actual results to differ from expectations.
As a result of these and other potential risks and uncertainties, our forward-looking statements should not be relied on or viewed as
predictions of future events.

 This cautionary statement should be read as qualifying
all forward-looking statements included in this report, wherever they appear. We urge you to consider the limitations on, and risks associated
with, forward-looking statements and not unduly rely on the accuracy of forward-looking statements. All forward-looking statements and
descriptions of risks included in this report are made as of the date hereof based on information available to us as of the date hereof,
and except as required by applicable law, we assume no obligation to update any such forward-looking statement or risk for any reason.
You should, however, consult the risks and other disclosures described in the reports we file from time to time with the Securities and
Exchange Commission ("SEC") after the date of this report for updated information.

 Use of Certain Defined
Terms

 On March 25, 2022, the Company changed its name
from "AeroCentury Corp" to "Mega Matrix Corp." All references to the "Company," or "AeroCentury"
refers to AeroCentury Corp. together with its consolidated subsidiaries prior to March 25, 2022 and renamed "Mega Matrix Corp."
commencing on March 25, 2022.

 Except where the context otherwise requires and
for the purposes of this report only, references to:

 the "Company," "we," "us," and
"our" refer to the combined business of Mega Matrix Corp., formerly known as AeroCentury Corp, a Delaware corporation and
its consolidated subsidiaries (including its majority-owned subsidiary, FunVerse), except where expressly noted otherwise or the context
otherwise requires;

 "Exchange
Act" refers the Securities Exchange Act of 1934, as amended;

 "digital
asset" refers to any computer-generated math-based and/or cryptographic protocol that may, among other things, be used to buy and
sell goods or pay for services. Cryptocurrency represent one type of digital asset.

 "FunVerse"
refers to the Company's 60% majority-owned subsidiary FunVerse Holding Limited, a company incorporated under the laws of British
Virgin Islands company.

 "JetFleet"
refers to the Company's majority-owned subsidiary JetFleet Management Corp., a California corporation and formerly known as JetFleet
Holding corporation.

 "MTP"
refers to the Company's wholly-owned subsidiary Marsprotocol Technologies Pte. Ltd., a Singapore exempt private company limited
by shares.

 "SEC"
refers to the Securities and Exchange Commission;

 "Securities
Act" refers to the Securities Act of 1933, as amended;

 "SDP"
refers to the Company's wholly-owned subsidiary Saving Digital Pte. Ltd., a Singapore exempt private company limited by shares;

 "StaaS"
refers to staking as a service; and

 "Yuder"
refers to FunVerse wholly-owned subsidiary Yuder Ptd, Ltd. a Company incorporated under the laws of Singapore.

 Discrepancies
in any table between the amounts identified as total amounts and the sum of the amounts listed therein are due to rounding.

 This annual report on Form 10-K includes
our audited consolidated financial statements for the fiscal years ended December 31, 2022 and 2023.

 Item 1.

 Item 1A.

 Risk Factors

 Item 1B.

 Unresolved Staff Comments

 Item 1C

 Cybersecurity

 Item 2.

 Properties

 Item 3.

 Legal Proceedings

 Item 4.

 Mine Safety Disclosures

 Item 5.

 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 Item 6.

 [Reserved]

 Item 7.

 Management's Discussion and Analysis of Financial Condition and Results of Operations

 Item 7A.

 Quantitative and Qualitative Disclosures About Market Risk

 Item 8.

 Financial Statements and Supplementary Data

 Item 9.

 Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

 Item 9A.

 Controls and Procedures

 Item 9B.

 Other Information

 Item 9C.

 Disclosure Regarding Foreign Jurisdictions That Prevents Inspections

 Item 10.

 Directors, Executive Officers and Corporate Governance

 Item 11.

 Executive Compensation

 Item 12.

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item 13.

 Certain Relationships and Related Transactions, and Director Independence

 Item 14.

 Principal Accountant Fees and Services

 Item 15.

 Exhibits, Financial Statements Schedules

 Item 16.

 Form 10-K Summary

 i

 Item 1. Business.

 Overview

 We are a holding company located in Palo Alto, California. Since January
2024, we hold 60% of the voting securities of FunVerse Holding Limited, a British Virgin Islands company ("FunVerse") which
directly owns Yuder Pte, Ltd., a Singapore corporation ("Yuder").. Yuder operates FlexTV, a short drama streaming platform
based in Singapore that produces English and Thai dramas that are also translated into different languages for our users that are spread
across various parts of the world such as Europe, America, and Southeast Asia. In addition to creating original dramas, Yuder also acquires
third party content licenses which it then translates and distributes on its FlexTV platform. To deliver diverse and international content
to our users, Yuder's produces film in various parts of the world, including, but not limited to, the United States, Mexico, Australia,
Thailand, and Philippines

 Corporate History

 Historically, we have provided leasing and financing
services to regional airlines worldwide and have been principally engaged in leasing mid-life regional aircraft to customers worldwide
under operating leases and finance leases. In addition to leasing activities, we have also sold aircraft from our operating lease portfolio
to third parties, including other leasing companies, financial services companies, and airlines. Our operating performance was driven
by the composition of its aircraft portfolio, the terms of its leases, and the interest rate of its debt, as well as asset sales.
Since September 30, 2021, our former substantially controlled subsidiary, JetFleet Management Corp, a California corporation and formerly
known as JetFleet Holding Corporation ("JetFleet") limited its services to providing aircraft advisory and management service.
On August 24, 2023, per the recommendation of JetFleet's board of directors, we, as a holder of a majority of the voting stock of
JetFleet, elected to approve the winding up and dissolution of Jetfleet. As part of the winding up process, Jetfleet ceased providing
of aircraft advisory and management services. On December 14, 2023, Jetfleet was formally dissolved.

 Our wholly-owned subsidiary, Mega Metaverse Corp.
("Mega") launched its non-fungible token (NFT) business in December 2021 and released its NFT game "Mano" on March
25, 2022. Mano was a competitive idle role-playing game (RPG) deploying the concept of NFTs based on blockchain technology, with a "Play-to-earn"
business model that the players can earn while they play in Mega's metaverse universe "alSpace". Due to business reasons,
the Company suspended the Mano game and the alSpace platform, and on November 4, 2022, the Company discontinued the Mano game and the
alSpace platform. As the game was newly launched and not yet widely adopted by players, the discontinuance of the game did not materially
impact on our business activities.

 On
August 31, 2022, we acquired all of the equity interest in Saving Digital Pte. Ltd., a Singapore exempt private company limited by
shares ("SDP") with no operations and approximately $3,800 in cash, from our chairman Yucheng Hu for a nominal
consideration of $10,000. SDP is currently engaged in solo-staking and, prior to July 1, 2023, provided proof-of-staking technology
tools. As of the date of this report, SDP has no customers.

 On March 1, 2023, SDP and Bit Digital Singapore
Pte. Ltd. ("Bit Digital"), entered into a shareholders' agreement (the "Shareholders Agreement") with Marsprotocol
Technologies Pte. Ltd. ("MTP"), to provide proof-of-stake technology tools for digital assets through the staking platform
"MarsProtocol", an institutional grade non-custodial staking technology. Pursuant to the Shareholders Agreement, SDP owned
60% and Bit Digital owned 40% of MTP. On August 4, 2023, Bit Digital terminated its investment in MTP and withdrew its capital contribution
of SGD$120,000 from MTP. As a result of the transaction, SDP owns all outstanding ordinary shares of MTP. As of July 2023, MTP ceased
providing non-custodial staking tools to third parties.

 On
April 25, 2023, we, through our 100% controlled Singapore subsidiary SDP, invested $300,000 in MarsLand Global Limited ("MarsLand"),
a BVI company and held 30% interest in MarsLand. The
other shareholders of MarsLand are non-affiliated. MarsLand will provide staking services to institutional clients such as Bit Digital.
On July 1, 2023, MarsLand and SDP entered into a Master Right of Use and Services Agreement for a term of 12 months, pursuant to which
MarsLand commits to use commercially reasonable efforts to provide SDP access to the Right of Use, including the use of Node(s) as mutually
agreed, exclusively for SDP's business purposes. In return, SDP will compensate MarsLand with a certain percentage of Net Revenue
(as defined in the agreement), which percentage will be mutually agreed upon periodically. Fees could be made in U.S. dollars, USDC, USDT
or ETH. Either party has the right to terminate by providing a 30-day advance notice. Further, SDP has successfully applied for and registered
the trademark "MarsProtocol" in Singapore and has entered into a trademark license agreement with MarsLand authorizing MarsLand
the right to use the MarsProtocol trademark in connection with its staking as a service ("StaaS") business. SDP was conducting
Ethereum solo-staking in Singapore, but as discussed below, the Company decided to focus entirely on its short drama streaming platform
business, and as of March 5, 2024, it has ceased its solo-staking activities.

 On
December 26, 2023, we entered into a Second Amended and Restated Agreement and Plan of Merger (the "Merger Agreement"),
amending and restating the original agreement and plan of merger, dated December 7, 2022, as amended, with Mega Matrix Inc., an
exempted company incorporated under the laws of the Cayman Islands and our wholly-owned subsidiary ("MPU Cayman") and
MPU Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of MPU Cayman ("MPU Merger Sub") for the
purpose of redomiciling the corporation from Delaware to the Cayman Islands. The Merger Agreement provides that, upon the terms and
subject to the conditions set forth therein, the MPU Merger Sub will merge with and into the Company, with the Company as the
surviving entity ("Redomicile Merger"). Following the Redomicile Merger, the Company will become a wholly-owned
subsidiary of MPU Cayman, and MPU Cayman, together with its subsidiaries, will own and continue to conduct our business in
substantially the same manner as is currently being conducted by us and our subsidiaries. The Merger Agreement has been approved by
the Boards of Directors of each of the Company, MPU Merger Sub and MPU Cayman. The completion of the proposed transaction is subject
to the required approval of the Company's stockholders, requisite regulatory approvals, the effectiveness of the registration
statement on Form F-4 filed by MPU Cayman related thereto, and other customary closing conditions. Pursuant to the Merger Agreement,
the Board of Directors of the Company may exercise its discretion to terminate the Merger Agreement, and therefore abandon the
Redomicile Merger contemplated therein, at any time prior to the Effective Time (as defined in Merger Agreement), including after
the adoption of the Merger Agreement by the Company's stockholders. As of the date of this report, the Merger Agreement has
not been adopted by our stockholders and we have not yet set a date for a special meeting of stockholders seeking such
approval.

 On January 7, 2024, we entered into and closed
a definitive Share Exchange Agreement with FunVerse, a company incorporated under the laws of the British Virgin Islands and the sole
parent company of Yuder Pte, Ltd., and the shareholders of FunVerse. Following the transaction, the Company now owns sixty percent (60%)
of capital stock of FunVerse.

 Recent Events – Subsequent to Year End.

 New Direction of the Company-Short Drama
Industry

 During the past year, the Company expended considerable
efforts in conducting research into the short video drama industry that is very popular in Asia, carrying out market research in different
geographical areas, and in conducting research into the most efficient means of entering into this market. On January 7, 2024, we entered
into and closed a definitive Share Exchange Agreement with FunVerse, a company incorporated under the laws of the British Virgin Islands
and the sole parent company of Yuder Pte, Ltd. ("Yuder"), and the shareholders of FunVerse. Following the transaction, the
Company now owns sixty percent (60%) of capital stock of FunVerse.

 Through Yuder, FunVerse now operates FlexTV, a short drama streaming
platform based in Singapore that produces English and Thai dramas that are also translated into different languages for our users that
are spread across various parts of the world such as Europe, America, and Southeast Asia. In addition to creating original dramas, Yuder
also acquires third party content licenses which it then translates and distributes on is FlexTV platform.

 Our focus is to be a leading short drama streaming
platform in the global streaming video industry. FlexTV stands out as an innovative force, introducing short dramas as a unique form of
storytelling, committed to leading vertical screen entertainment globally.

 Short dramas aim to capture the essence of narratives
within concise time frames, typically formatted vertically for optimal viewing on mobile phones, ranging from 1 to 3 minutes per episode.
Each episode seamlessly integrates into a series, where complete storylines unfold across 40 to over 100 episodes. Short dramas usually
offer users a virtual escape, presenting narratives that resonate with emotions, fostering a sense of connection, and serving as a wellspring
of comfort or inspiration in the digital realm.

 The move from conventional TV streaming to short
drama streaming is a worldwide shift, offering users enhanced options and increased flexibility in their entertainment choices. The content
characteristics of short dramas determine that they can be produced in quick batches and monetized rapidly. Users are used to scrolling
through videos, movie narrations and at a faster pace. The threshold for short drama production has lowered, with lower costs, shorter
cycles, and higher operational efficiency. Short dramas are more attractive, more direct, faster-paced, and better suited for mobile entertainment.

 We recognize the significant impact of short video
platforms like Facebook Reels, Instagram Reels, YouTube Shorts, TikTok, and others on user behaviors. Our dedication to innovative short
dramas stems from a deep understanding of evolving viewing habits influenced by shorter attention spans and increased multitasking.

 We are steadfast in delivering innovative content
that connects with diverse audiences worldwide, promoting cultural appreciation and entertainment on a global scale, and bringing joy
to the lives of users worldwide. The content characteristics of short dramas determine that they can be produced in quick batches and
monetized rapidly.

 Our Business Model

 FlexTV has already formed a mature content business model that integrates
content production, distribution, and operation. Short drama content on the FlexTV platform is divided into two categories: one category
consists of dramas in which we participate in production, primarily in English and Thai, and the other category consists of translated
dramas, where we purchase the copyrights of completed high-quality short dramas from third parties and then translate them into multiple
languages, including but not limited to English, Spanish, Portuguese, Japanese, Korean, and Thai.

 We generate platform revenue primarily through top-up and subscription
fees for services related to streaming content to our users and advertisements presented on our streaming service.

 We offer a variety of streaming top-up and subscription
plans, the price of which varies by country and the features of the plan. Users typically can watch about five to ten episodes of each
short drama on our platform for free. To continue watching, they will need to top up their account to acquire in-app coins on our platform,
which are then used to continue viewing the short dramas. Users can also earn in-app coins to watch short dramas by completing daily and
new user tasks, such as watching ads, inviting friends, and sharing FlexTV on Facebook and TikTok. The in-app coins can only be used on
our platform and are not transferrable. Users can subscribe to FlexTV memberships on a weekly, monthly, quarterly, or annual basis, and
during the membership subscription period, users will have unlimited access to view any short drama on FlexTV. We measure monetization
of our platform by calculating the average revenue per user ("ARPU"), which we believe represents the inherent value of our
business model.

 International Markets

 FlexTV is available in more than 100 countries.
Our production teams film in various locations including, but not limited to, United States, Mexico, Australia, Thailand, and Philippines.
We will continue to expand our international markets and collaborate with local partners in each major market.

 Our Industry

 The short drama industry experienced explosive growth in 2023. According
to China Securities Report, dated November 7, 2023, the total market size of short dramas in China in 2023 is expected to reach $5 billion.
With short video platforms like TikTok cultivating user habits for fragmented and concise entertainment videos, the global short drama
market is expected to continue growing. The vertical screen era is likely to give birth to emerging streaming media giants, and there
are still opportunities for global large-scale streaming platforms similar to Netflix and Roku.

 The short drama industry is likely to extensively incorporate the latest AI technologies, with the potential to integrate high-recognition
IPs with short dramas. This includes AI-enabled face swapping, voice changing, and scene and content creation using verbal descriptions
which could revolutionize content creation by significantly reducing production time and costs, enabling more creative freedom, and potentially
democratizing access to high-quality video production for creators worldwide.

 Emergence from Chapter 11 Bankruptcy

 On March 29, 2021, the Company and its then subsidiaries,
JetFleet Holdings Corp., a California corporation ("JHC"), and JetFleet Management Corp. ("JMC" along with JHC,
collectively, "Debtors"), filed a voluntary petition for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code.
On August 16, 2021, in the Bankruptcy Court, the Debtors filed unexecuted drafts of its Plan Sponsor Agreement to be entered into between
us, Yucheng Hu, TongTong Ma, Qiang Zhang, Yanhua Li, Yiyi Huang, Hao Yang, Jing Li, Yeh Cheng and Yu Wang, and identifying such individuals,
collectively, as "Plan Sponsors" (the "Plan Sponsor Agreement"), and related agreements and documents required
thereunder (collectively, with the Plan Sponsor Agreement, the "Plan Sponsor Documents"). The Plan Sponsor Documents were
intended to cover the transactions contemplated by an investment term sheet entered into with Yucheng Hu and are part of the Debtors'
plan of reorganization as reflected in the Combined Disclosure Statement and Plan filed with the Bankruptcy Court as amended and supplemented
from time to time (the "Plan"). On August 31, 2021, the Bankruptcy Court entered an order, Docket No. 0296 (the "Confirmation
Order"), confirming the Plan as set forth in the Combined Plan Statement and Plan Supplement.

 On September 30, 2021, we emerged from Chapter
11 and pursuant to the Plan Sponsor Agreement, the Company entered into and consummated the transactions contemplated by a Securities
Purchase Agreement with the Plan Sponsor, and Yucheng Hu, in the capacity as the representative for the Plan Sponsor thereunder, pursuant
to which the Company issued and sold, and the Plan Sponsor purchased, 14,354,635 (adjusted for the Forward Stock Split) shares of our
common stock at $0.77 (adjusted for the Forward Stock Split) for each share of common stock for an aggregate purchase price of approximately
$11,053,069.

 Also on September 30, 2021, and pursuant to the
Plan Sponsor Agreement, the Company entered into and consummated the transactions contemplated by a Series A Preferred Stock Purchase
Agreement (the "JHC Series A Agreement") with JHC, pursuant to which JHC issued and sold, and the Company purchased, 104,082
shares of Series A Preferred Stock, no par value, at $19.2156 per share of JHC Series A Preferred Stock, for an aggregate purchase price
of $2 million.

 Each share of JHC Series A Preferred Stock shall
be entitled to one (1) vote on any matter that is submitted to a vote or for the consent of the shareholders of JHC. The JHC Series A
Preferred Stock provides the Company with 74.83% voting control over JHC immediately following its issuance.

 On
January 1, 2022, JMC, a wholly-owned subsidiary of JHC, was merged with and into JHC, with JHC being the surviving entity. As part
of the merger, JHC changed its name to JetFleet Management Corp. On August 24, 2023, per the recommendation of JMC's board of
directors, the Company, as a holder of a majority of the voting stock of JMC, elected to approve the winding up and dissolution of
JMC. JMC ceased providing aircraft advisory and management services upon winding up and the Company deconsolidated JMC and its
subsidiaries in December 2023. On December 14, 2023, JMC was formally dissolved.

 Government Regulation

 Yuder's operations as a Singapore-based company are subject to
the regulatory environments of Singapore and each jurisdiction where our services are available. These regulations encompass a wide range
of aspects related to our streaming service operations, including but not limited to:

 Content regulation and licensing: Compliance with specific licensing
requirements in each country such as the Over-the-Top (OTT) Niche Television Service License in Singapore and equivalent regulations in
other jurisdictions where our services are available. This includes adherence to content codes for OTT, video on demand, and niche services
to align with public interest and decency standards.

 Age restriction and content classification: Implementing systems for
age verification and content classification in line with local requirements in Singapore and similar mandates globally to restrict access
to age-sensitive content.

 Digital and cybersecurity regulations: Meeting international standards
for data protection, privacy laws, and cybersecurity measures to safeguard user data and ensure the integrity of our platform against
unauthorized access and cyber threats.

 Consumer protection laws: Adherence to consumer rights and protection
laws, ensuring transparency, fairness, and accountability in our service delivery, subscription models, and user data handling practices.

 International taxation: Navigation of digital service taxes and VAT
obligations relevant to the digital streaming industry, ensuring compliance with fiscal regulations in jurisdictions where our service
is offered.

 Intellectual Property

 The protection of our technology and intellectual
property is an important aspect of our business. We currently rely upon a combination of trademarks, trade secrets, copyrights, nondisclosure
contractual commitments, and other legal rights to establish and protect our intellectual property.

 As
of March 9, 2024, we held ten (10) pending trademark applications in the United States, three (3) pending ones in Singapore, two (2)
pending ones in Hong Kong, four (4) pending ones in British Virgin Islands, four (4) pending ones in Thailand and three (3) completed
trademark applications in Singapore. We will evaluate our development efforts to assess the existence and patentability of new
intellectual property. To the extent that it is feasible, we will file new patent applications with respect to our technology and
trademark applications with respect to our brands.

 Human Capital Resources

 As of March
9, 2024, we had 11 full-time employees, including CEO, CFO and COO in Singapore. None of our employees are represented by labor unions
or covered by collective bargaining agreements. We consider our relationship with our employees to be good.

 Corporate Office

 Our headquarters are located at 3000 El Camino
Real, Bldg. 4, Suite 200, Palo Alto, CA. Our main telephone number is (650) 340-1888.

 Other Information

 Our website is located at:
We make available on our website our reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably
practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission ("SEC").
Other than the information expressly set forth in this annual report, the information contained, or referred to, on our website is not
part of this annual report. The SEC also maintains a website at www.sec.gov that contains reports, proxy and information statements,
and other information regarding issuers, such as us, that file electronically with the SEC.

 We use our website, our corporate Facebook page
(facebook.com/megamatrixmpu or facebook.com/flextvus), our corporate X (f/k/a Twitter) account (twitter.com/MegaMatrixMPU), our corporate
Linked In account (linkedin.com/company/megamatrixmpu), our corporate TikTok channel (tiktok.com/@flextv_english), and our YouTube channel
(youtube.com/@FlexTV_English) as channels of distribution of material company information. For example, financial and other material
information regarding our company is routinely posted on and accessible at www.megamatrix.io. Accordingly, investors should monitor these
channels, in addition to following our press releases, SEC filings and public conference calls and webcasts. The contents of our website
and social media channels are not, however, a part of this Annual Report on Form 10-K and are not incorporated by reference herein.

 Item 1A. Risk Factors.

 An investment in our common stock involves risks.
Prior to making a decision about investing in our common stock, you should consider carefully the risks together with all of the other
information contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and in our subsequent filings with
the SEC. Each of the referenced risks and uncertainties could adversely affect our business, operating results and financial condition,
as well as adversely affect the value of an investment in our securities. Additional risks not known to us or that we believe are immaterial
may also adversely affect our business, operating results and financial condition and the value of an investment in our securities.

 Risks Related to our Business

 Expansion of the
Company's operations into new products, services and technologies, including content categories, is inherently risky and may subject
it to additional business, legal, financial and competitive risks.

 Historically, the Company's operations have been focused on third-party
management service contracts for aircraft operations, NFT gaming, StaaS and solo-staking, which operations have ceased. Expansion of the
Company's operations and its marketplace into additional products and services, such as short video drama involve numerous risks
and challenges, including potential new competition, increased capital requirements and increased marketing spent to achieve customer
awareness of these new products and services. Growth into additional content, product and service areas may require changes to the Company's
existing business model and cost structure and modifications to its infrastructure and may expose the Company to new regulatory and legal
risks, any of which may require expertise in areas in which the Company has little or no experience. There is no guarantee that the Company
will be able to generate sufficient revenue from sales of such products and services to offset the costs of developing, acquiring, managing
and monetizing such products and services and the Company's business may be adversely affected.

 If our efforts to attract and retain users
are not successful, our business will be adversely affected.

 Our future revenue will be derived for subscriber
based fees. We must continually add users and convert them to fee-based subscribers both to replace canceled fee-based subscribers and
to grow our business beyond our current fee-based subscriber base. The video streaming business is new to us and our ability to penetration
and growth our user base have fluctuated and vary across the jurisdictions where we provide our service. Our ability to attract and retain
users and convert them to fee-based subscribers will depend in part on our ability to consistently provide our users in countries around
the globe with compelling content choices that keep our users engaged with our service, effectively drive conversation around our content
and service, as well as provide a quality experience for choosing and enjoying our short video dramas. Furthermore, the relative service
levels, content offerings, pricing and related features of competitors to our service may adversely impact our ability to attract and
retain users. Competitors include other entertainment video providers, such as linear television, and streaming entertainment providers
(including those that provide pirated content), video gaming providers, as well as user-generated content, and more broadly other sources
of entertainment that our users could choose in their moments of free time.

 Our users and fee-based subscribers cancel our
service for many reasons, including a perception that they do not use the service sufficiently, that they need to cut household expenses,
dissatisfaction with content, a preference for competitive services and customer service issues that they believe are not satisfactorily
resolved. Fee-based subscribers growth is also impacted by adverse macroeconomic conditions, including inflation, may also adversely impact
our ability to attract and retain users and fee-based subscribers. If we do not grow as expected or be able to increase our fee-based
subscriber revenue, including by adjusting subscription pricing, liquidity and results of operations may be adversely impacted. If we
are unable to successfully compete with current and new competitors in providing compelling content, retaining our existing users and
attracting new users, our business will be adversely affected.

 If we do not continuously provide value
to our users, including making improvements to our service in a manner that is favorably received by them, our revenue, results of operations
and business will be adversely affected.

 If consumers do not perceive our service offering
to be of value, including if we introduce new or adjust existing features, adjust pricing or service offerings, or change the mix of
content in a manner that is not favorably received by them, we may not be able to attract and retain users and fee-based subscribers,
and accordingly, our revenue, including revenue per paying subscribers, and results of operations may be adversely affected. The video
streaming business and the production of short video dramas is new to us. If our efforts to develop and offer short video dramas are
not valued by our current and future users and fee-paying subscribers, our ability to attract and retain users and fee-paying subscribers
may be negatively impacted. We may also seek to extend our business into new products and services to help drive growth. For example,
we are expanding our offering of consumer products and live experiences. To the extent we cannot successfully find and develop new products
and services to help drive growth, our future results of operations and growth may be adversely impacted.

 We may, from time to time, have to adjust our
subscription pricing, or our pricing model itself. Any adjustments we make may not be well-received by our users and could negatively
impact our ability to attract and retain users and fee-paying subscribers, revenue per fee-paying subscribers, revenue and our results
of operations. If our efforts to satisfy our existing users or adjustments to our service are not successful, we may not be able to attract
or retain users and fee-paying subscribers, and as a result, our ability to grow our business will be adversely affected.

 If we fail to grow and maintain our active
user base, our business, financial condition and operating results may be materially and adversely affected.

 The size of our active user base with our products
are critical to our success. We are a new business and focused on attracting and maintaining an active user base. Our financial performance
has been and will continue to be significantly affected by our ability to grow and engage our active user base. In addition, we may fail
to maintain or increase our user base or our users' engagement if, among other things:

 we fail to innovate or develop new products
 and services that provide relevant content and satisfactory experience to, or are favorably received by, our users;

 we fail to produce new dramas that are attractive
 to our users;

 we fail to respond
 to or adopt evolving technologies for product development on a timely and cost-effective basis;

 we fail to successfully
 market and monetize our existing and new mobile applications throughout their life cycles;

 we fail to develop
 products that are compatible with existing or new mobile devices, mobile operating systems or their respective upgrades;

 we fail to maintain
 or improve our technology infrastructure and security measures designed to protect our users' personal privacy and cyber security;

 we lose users to
 competing products and services or due to concerns related to personal privacy and cyber security or other reasons;

 we fail to successfully
 implement our strategies related to the continued expansion of our global user base; or

 we are required by existing or new laws,
 regulations or government policies to implement changes to our products or services that are adverse to our business.

 If we are unable to maintain or increase our
user base, our advertising services may become less attractive to our advertising customers, which may have a material and adverse impact
on our business, financial condition and operating results.

 Our advertising offering is new and subject
to various risks and uncertainties, which may adversely affect our business.

 We have limited experience and operating history
offering advertising on our video streaming service, and our advertising revenue may not grow as we expect. Advertisers purchase advertising
services either directly from us or through third-party advertising exchanges and advertising agencies. Our advertising customers, including
advertisers and advertising exchanges and agencies, typically do not have long-term contractual arrangements with us. They may be dissatisfied
with our advertising services or perceive our advertising services as ineffective. Potential new customers may view our advertising services
as unproven, and we may need to devote additional time and resources to convince them. In addition, new advertising formats emerge from
time to time and customer preferences can change. We may not be able to adapt our products and services to future advertising formats
or changing customer preferences on a timely and cost-effective basis, and any such adaption failure could materially and adversely affect
our financial conditions, results of operations and prospects.

 We compete for advertising customers not only
with other providers of digital advertising spaces, but also with other types of platforms and advertising service providers such as
newspapers, magazines, billboards, television and radio stations. Some of our competitors have access to considerably greater financial
and other resources for expanding their product offerings and present considerable challenges to gaining and maintaining additional market
share.

 If we fail to deliver advertising services in
an effective manner, or if our advertising customers believe that placing advertisements on our platform and in our short dramas do not
generate a competitive return when compared to placing advertisements through our competitors' products, they may not continue
to do business with us or they may only be willing to advertise with us at reduced prices. If our existing advertising customers reduce
or discontinue their advertising spending with us, or if we fail to attract new advertising customers, our business, financial condition
and results of operations could be materially and adversely affected.

 We rely on our business collaborations
with third parties, including major digital distribution platforms and mobile device manufacturers, to maintain and expand our user base.
Our failure to maintain good relationships with these business partners may materially and adversely affect our business and operating
results.

 We collaborate with various business partners to promote our products
and enlarge our user base. We use third-party digital distribution platforms such as Apple App Store and Google Play to distribute
our mobile applications to users. We also advertise on third-party platforms, such as Facebook and TikTok to acquire users. The promotion
and distribution of our mobile applications are subject to such digital distribution platforms' standard terms and policies for
application developers, which are subject to the interpretation of, and frequent changes by, these platforms. In addition, our applications
may be suspended by or removed from such platforms as a result of allegations or claims by third parties regardless of their merits. If
we are unable to maintain good relationships with our business partners or the business of our business partners declines, the reach of
our products and services may be adversely affected and our ability to maintain and expand our user base may decrease. Most of the agreements
with our business partners, including mobile device manufacturers and digital distribution platforms, do not prohibit them from working
with our competitors or from offering competing services. If our partner distribution platforms change their standard terms and conditions
in a manner that is detrimental to our business, or if our business partners decide not to continue working with us or choose to devote
more resources to supporting our competitors or their own competing products, we may not be able to find a substitute on commercially
favorable terms, or at all, and our competitive advantages may be diminished.

 We may be subject to notices or complaints
alleging, among other things, our infringement of copyrights and delivery of illegal or inappropriate content through our products, which
could lead to suspension or removal of such products from digital distribution platforms, a decrease of our user base, and a significantly
adverse impact on our financial results and our reputation.

 We use third-party digital distribution platforms such as Apple App
Store and Google Play to distribute our mobile applications to users. In the ordinary course of our business, we and the digital distribution
platforms may from time to time receive, notices or complaints from third parties alleging that certain of our contents infringe copyrights,
deliver illegal, fraudulent, pornographic, violent, bullying or other inappropriate content, or otherwise fail to comply with applicable
policies, rules and regulations. Upon receipt of such notices or complaints, those digital distribution platforms may suspend or
remove such products from such platforms. The processes for appealing such suspensions and removals with those platforms could be time-consuming,
and we cannot guarantee that our appeals will always prevail or that any such suspended or removed application will be made available
again. Such suspensions and removals of our products could lead to a decrease of our user base and, if they occur frequently and/or in
a large scale, could significantly adversely affect our reputation, business operation and financial performance. In addition, these digital
distribution platforms and third-party platforms may also receive, from time to time, notices or complaints from third parties alleging
that certain of our products infringe copyrights, deliver illegal, fraudulent, pornographic, violent, bullying or other inappropriate
content, or otherwise fail to comply with applicable policies, rules and regulations, consequently those digital distribution platforms
may suspend or remove such products from their platforms and those third-party platforms may terminate their collaboration with us.

 We have international operations and plan
to continue expanding our operations globally. We may face challenges and risks presented by our growing global operations, which may
have a material and adverse impact on our business and operating results.

 Yuder is headquartered in Singapore and provide
its products and services to a global user base. We intend to continue the international expansion of our business operations and grow
our user base globally. We believe the sustainable growth of our business depends on our ability to increase the penetration of our products
in both developed and emerging markets. Our continued international operations and global expansion may expose us to a number of challenges
and risks, including:

 challenges in developing successful
products and localized adaptions, and implementing effective marketing strategies that respectively target mobile internet users and
advertising customers from various countries and with a diverse range of preferences and demands;

 difficulties in managing and
overseeing global operations and in affording increased costs associated with doing business in multiple international locations;

 local competitions;

 difficulties in
 integrating and managing potential foreign acquisitions or investments;

 compliance with applicable laws
 and regulations in various countries worldwide, including, but not limited to, internet content requirements, cyber security and
 data privacy requirements, intellectual property protection rules, exchange controls, and cash repatriation restrictions;

 fluctuations in
 currency exchange rates;

 political, social
 or economic instability in markets or regions in which we operate; and

 compliance with statutory equity requirements
 and management of tax consequences.

 Our business, financial condition and results
of operations may be materially and adversely affected by these challenges and risks associated with our global operations.

 Our product development and monetization
strategies are highly dependent on our technology capabilities and infrastructure. If the amount of user data generated on our products
declines, or if we fail to enhance or upgrade our technologies at a competitive pace, the effectiveness of our business model may be
harmed and our operating results may be materially and severely affected.

 We depend on our technological capabilities and
infrastructure to analyze our users' preferences and needs and to generate valuable user insights. Active users of our products
generate a large amount of data across our applications and in a variety of use cases on a daily basis. The data generated by our users
lays the foundation for us to build our user profiles. By analyzing such user data with our big data analytics and other relevant technologies,
we aim to understand our users' interests and needs for content in order to develop products that deliver relevant content catering
to their interests and needs. Therefore, the effectiveness of our product development and monetization strategies is dependent on our
ability to obtain and process data and to refine the algorithms used in processing such data. If we fail to maintain and expand the user
base of our products to continually generate large amounts of user data, or if we fail to keep up with the rapid development and upgrade
of big data analytics and other relevant technologies on a timely and cost-effective basis, we may not be able to effectively grow and
monetize our products, and our business and operating results may be materially and adversely affected.

 If we fail to correctly anticipate user
preferences and develop and commercialize new products and services, we may fail to attract or retain existing users, the lifecycles
of our mobile applications may end prematurely and our operating results may be materially and adversely affected.

 Our success depends on our ability to maintain, grow and monetize our
user base, which in turn depends on our ability to continually develop and commercialize new mobile applications, introduce new features
or functions to our existing mobile applications and provide users with high-quality content and an enjoyable user experience. This is
particularly important since the mobile internet industry is characterized by fast and frequent changes, including rapid technological
evolution, shifting user demands, frequent introductions of new products and services, and constantly evolving industry standards, operating
systems and practices. FlexTV APP was launched in 2023 and over 150 short video drama have been released since October 2023. We
intend to continue to produce new short video drama and other contents and services to enlarge our active user base. Our ability to roll
out new short video dramas and services depends on a number of factors, including engaging new talents, High-quality contents, as well
as correctly analyzing and predicting users' interests and demands for content using our big data analytical capabilities. If we
fail to correctly analyze and predict users' interests and demands for content, fail to cater to the anticipated needs and preferences
of users, or fail to provide a superior user experience, our existing and new mobile applications may suffer from reduced user traffic
or be unsuccessful in the market and our user base may decrease, which in turn may impact our fee-based subscription and our ability to
earn advertising revenue. There can be no assurance that our new products and services will generate revenues or profits and we may not
be able to recoup the investments and expenditure involved in such development. Our quarterly results may also experience significant
fluctuations as we continue to invest in the development of new products and services.

 In addition, as a result of rapidly evolving
user preferences, our existing mobile applications may reach the end of their lifecycles prematurely. There can be no assurance that
we will be able to correctly predict the lifecycles of our new mobile applications, our estimates regarding the lifecycles of our existing
mobile applications may turn out to be incorrect, and our business, financial condition and results of operations may be materially and
adversely affected.

 We may be held liable for information or
content displayed on, distributed by, retrieved from or linked to the mobile applications integrated into our products, which may adversely
impact our brand image and materially and adversely affect our business and operating results.

 We may display third-party content, such as videos,
pictures, books, articles and other works, on our mobile applications without the explicit consent from such third party, and we may
further explore market opportunities in the content-related business. Our users may misuse our products to disseminate content that contains
inappropriate, fraudulent or illegal information or that infringes the intellectual property rights of third parties. We have implemented
control measures and procedures to detect and block inappropriate, fraudulent or illegal content uploaded to or disseminated through
our products, particularly those that violate our user agreements or applicable laws and regulations. However, such procedures may not
be sufficient to block all such content due to the large volume of third-party content. Despite the procedures and measures we have taken,
if the content displayed on our products are found to be fraudulent, illegal or inappropriate, we may suffer a loss of users and damage
to our reputation. In response to any allegations of fraudulent, illegal or inappropriate activities conducted through our mobile applications
or any negative media coverage about us, government authorities may intervene and hold us liable for non-compliance with laws and regulations
concerning the dissemination of information on the internet and subject us to administrative penalties or other sanctions, such as requiring
us to restrict or discontinue certain features and services provided by our mobile applications or to temporarily or permanently disable
such mobile applications. If any of such events occurs, our reputation and business may suffer and our operating results may be materially
and adversely affected.

 We may not be able to prevent unauthorized
use of our intellectual property, which could harm our business and competitive position.

 We regard our patents, copyrights, trademarks,
trade secrets, and other intellectual property as critical to our business. Unauthorized use of our intellectual property by third parties
may adversely affect our business and reputation. We rely on a combination of intellectual property laws and contractual arrangements
to protect our proprietary rights. It is often difficult to register, maintain, and enforce intellectual property rights in countries
with less developed regulatory regimes or inconsistent and unreliable enforcement mechanisms. Sometimes laws and regulations are subject
to interpretation and enforcement and may not be applied consistently due to the lack of clear guidance on statutory interpretation.
In addition, our contractual agreements may be breached by our counterparties, and there may not be adequate remedies available to us
for any such breach. Accordingly, we may not be able to effectively protect our intellectual property rights or to enforce our contractual
rights in China and other jurisdictions in which we operate. Detecting and preventing any unauthorized use of our intellectual property
is difficult and costly and the steps we have taken may be inadequate to prevent infringement or misappropriation of our intellectual
property. In the event that we resort to litigation to enforce or protect our intellectual property rights, such litigation could result
in substantial costs and a diversion of our managerial and financial resources. We can provide no assurance that we will prevail in such
litigation.

 We may be subject to intellectual property
infringement lawsuits which could be expensive to defend and may result in our payment of substantial damages or licensing fees, disruption
to our product and service offerings, and reputational harm.

 The success of our business relies on the quality
of our products, which in turn depends on the underlying software and related technology, such as big data analytics. The protection
of such software and related technologies primarily relies on intellectual property rights including patents and trade secrets. Meanwhile,
for the purpose of our business expansion, we may from time to time display third-party content, such as videos, pictures, books, articles
and other works, on our mobile applications without acquiring the explicit consent from such third party. Third parties, including our
competitors, may assert claims against us for alleged infringements of their patents, copyrights, trademarks, trade secrets and internet
content.

 Intellectual property claims against us, whether
meritorious or not, are time consuming and costly to resolve, could divert management attention away from our daily business, could require
changes of the way we do business or develop our products, could require us to enter into costly royalty or licensing agreements or to
make substantial payments to settle claims or satisfy judgments, and could require us to cease conducting certain operations or offering
certain products in certain areas or generally. We do not conduct comprehensive patent searches to determine whether the technologies
used in our products infringe upon patents held by others. In addition, product development is inherently uncertain in a rapidly evolving
technological environment in which there may be numerous patent applications pending, many of which are confidential when filed, with
regard to similar technologies. While we believe that our products do not infringe in any material respect upon any intellectual property
rights of third parties, we cannot be certain that this is the case.

 In addition, in any potential dispute involving
our patents or other intellectual property, our advertising customers and business partners could also become the target of litigation.
We have certain contractual obligations to indemnify our advertising customers and the mobile device manufacturers that pre-install our
products on their devices for liability that they may incur based on third-party claims of intellectual property infringement for the
use of our products or technology. Many of our collaboration contracts with mobile device manufacturers provide for a cap on our indemnity
obligations. In addition, in the event of any such claims, our advertising customers or business partners may decide not to use our products
in the future, which could harm our financial condition and operating results.

 Finally, we may also face infringement claims
from the employees, consultants, agents and outside organizations we have engaged to develop our technology. While we have sought to
protect ourselves against such claims through contractual means, there can be no assurance that such contractual provisions are adequate,
and any of these parties might claim full or partial ownership of the intellectual property in the technology that they were engaged
to develop for us.

 Yuder, as a Singapore-based company, is
subject to laws and regulations of Singapore and each jurisdiction where our services are offered. Our operations require us to apply
for specific licenses with Singapore authorities.

 Yuder's operations as a Singapore-based
company are subject to the regulatory environments of Singapore and each jurisdiction where our services are available. In Singapore,
Yuder is actively assessing the need for specific licenses such as an Over-the-Top (OTT) Niche Television Service License and, for age-restricted
content, a Film Exhibition License. Moreover, we may need to comply with the Content Code for OTT, Video on Demand, and Niche Services
in Singapore to ensure our content aligns with public interest and decency standards. Additionally, as our service is accessible over
the internet to users worldwide, we are subject to a wide array of international laws and regulations, which vary significantly across
different jurisdictions.

 Our efforts to secure necessary licenses
and comply with regulatory standards are facing challenges, including the possibility that licenses may not be granted, or could be revoked
or not renewed by regulatory authorities.

 The complexity of obtaining necessary licenses
and maintaining compliance with regulatory standards presents a risk that licenses may not be granted or could be revoked or not renewed
by regulatory authorities. This includes both the specific licenses required for operations in Singapore and potentially different or
additional licenses needed in other countries. Such outcomes could prevent us from offering certain services or content, thus significantly
impacting our operations and financial condition.

 Information technology
and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other disruptions.

 We receive, process,
store and use personal information and other customer data. There are numerous federal, state and local laws regarding privacy and the
storing, sharing, use, processing, disclosure and protection of personal information and other data. Any failure or perceived failure
by us to comply with our privacy policies, our privacy-related obligations to customers or other third parties, or our privacy-related
legal obligations, or any compromise of security that results in the unauthorized release or transfer of personally identifiable information
or other player data, may result in governmental enforcement actions, litigation or public statements against us by consumer advocacy
groups or others and could cause our customers to lose trust in us which could have an adverse impact on our business. The costs of compliance
with these types of laws may increase in the future as a result of changes in interpretation or changes in law. Any failure on our part
to comply with these types of laws may subject us to significant liabilities.

 Third parties we work
with may violate applicable laws or our policies, and such violations may also put our customers' information at risk and could
in turn have an adverse impact on our business. We will also be subject to payment card association rules and obligations under each association's
contracts with payment card processors. Under these rules and obligations, if information is compromised, we could be liable to payment
card issuers for the associated expense and penalties. If we fail to follow payment card industry security standards, even if no customer
information is compromised, we could incur significant fines or experience a significant increase in payment card transaction costs.

 Security breaches, computer
malware and computer hacking attacks have become more prevalent. Any security breach caused by hacking which involves efforts to gain
unauthorized access to information or systems, or to cause intentional malfunctions or loss or corruption of data, software, hardware
or other computer equipment, and the inadvertent transmission of computer viruses could harm our business. Though it is difficult to determine
what harm may directly result from any specific interruption or breach, any failure to maintain performance, reliability, security and
availability of our network infrastructure to the satisfaction of our players may harm our reputation and our ability to retain existing
players and attract new players.

 Because the techniques
used to obtain unauthorized access, disable or degrade service, or sabotage systems, change frequently and often are not recognized until
launched against a target, we may be unable to anticipate these techniques or to implement adequate preventative measures.

 Our compliance with regulatory requirements
demands significant operational and financial resources.

 Compliance with regulatory requirements in Singapore
and internationally may require significant operational and financial resources. This includes the potential need to furnish security
deposits, adhere to content classification requirements, and ensure ongoing compliance with varied regulatory standards across jurisdictions.
The financial burden and operational constraints imposed by these regulatory requirements could negatively affect our profitability and
operational efficiency.

 We face challenges in continuously monitoring
and adapting to the varied regulatory environments across the various jurisdictions where we operate.

 Navigating the regulatory landscapes of multiple
jurisdictions increases the risk of inadvertent non-compliance due to the dynamic nature of laws and regulations governing online streaming
services. Continuous adjustments to our operational practices and content offerings may be necessary, requiring substantial resources
and potentially leading to penalties, restrictions, or the cessation of our services in certain territories.

 We may encounter restrictions or outright
bans in certain jurisdictions if we fail to comply with local regulations or content standards.

 Given the global accessibility of our service,
there is a risk that certain jurisdictions may impose restrictions or outright bans on our operations due to non-compliance with local
regulations or content standards. Such actions could limit our market presence and negatively impact our growth prospects and profitability.

 Risk Related to Digital Assets

 We hold ETH and
other stable coins which exposes us to various risks associated with ETH and other cryptocurrencies.

 We hold ETH and other stable coins which exposes
us to various risks associated with ETH and other cryptocurrencies, including the following:

 ETH
 is a highly volatile asset: The supply of ETH is currently controlled by the source code of the Ethereum platform, and there is
 a risk that the developers of the code and the participants in the Ethereum network could develop and/or adopt new versions of the
 Ethereum software that significantly increase the supply of ETH in circulation, negatively impacting the trading price of ETH. Any
 significant decrease in the price of ETH may materially and adversely affect the value of the Company's securities and, in
 turn, the Company's business and financial condition. In addition, the ETH markets are sensitive to new developments, and
 since volumes are still maturing, any significant changes in market sentiment (by way of sensationalism in the media or otherwise)
 can induce large swings in volume and subsequent price changes. Such volatility can adversely affect the business and financial
 condition of the Company. Momentum pricing typically is associated with growth stocks and other assets whose valuation, as
 determined by the public, accounts for anticipated future appreciation in value. The Company believes that momentum pricing of ETH
 has resulted, and may continue to result, in speculation regarding future appreciation in the value of ETH, inflating and making
 more volatile the value of ETH. As a result, ETH may be more likely to fluctuate in value due to changing investor confidence in
 future appreciation, which could adversely affect the business and financial condition of the Company. ETH has traded below $1,100
 per ETH and above $2,378 per ETH on Matrixport Cactus Custody (our principal market for ETH) in the past 12 months from January 1,
 2023. As of December 31, 2023, we hold $7,123,300 in ETH.

 Custody Service Risks: We do not use any
cryptocurrencies as collateral or have them used by other institutions as collateral because our cryptocurrencies are held in custody
on the blockchain and not stored on centralized exchanges. However, despite storing our cryptocurrencies on a decentralized custody chain,
there are still risks associated with the custody service provider. These risks may include security, availability, and reliability. We
seek to choose a trusted and secure custody service provider to protect our cryptocurrencies.

 On-Chain Risks: Storing cryptocurrencies
on a custody chain does not eliminate all risks. The underlying blockchain may still face risks related to technology, network security,
and potential attacks. Understanding the security measures and vulnerability mitigation capabilities of the underlying blockchain protocol
is crucial.

 We hold stablecoins
and the value of stablecoins that we hold may be subject to volatility and risk of loss.

 As of December 31, 2023, we held approximately
$0.2 million in USDC issued by Circle Internet Financial Public Limited Company ("Circle"). Stablecoins are cryptocurrencies
designed to have a stable value over time as compared to typically volatile cryptocurrencies, and are typically marketed as being pegged
to a fiat currency, such as the U.S. dollar. For example, stablecoins such as USDC are usually backed by the U.S. Dollar and other short-dated
U.S. government obligations and are usually pegged to the U.S. dollar. On March 9, 2023, as a result of the bankruptcy of Silicon Valley
Bank ("SVB"), Circle announced that $3.3 billion of its roughly $40 billion USDC reserves were held at SVB. As a result, Circle
depegged the USDC from its $1.00 peg, trading as low as $0.87. This risk may result in the sell-off of USDC and volatility as to the value
of stablecoins, which would expose us to risk of potential loss and could have a material adverse effect on our ability to raise new funding
and on our business, financial condition, and results of operations and prospects.

 Our Board and
our management have identified certain material gaps with respect to risk management related to our cryptocurrencies that if not adequately
address, could negatively impact our operations and adversely affect the value of our shares.

 Our Board and our management have identified
the following material gaps with respect to risk management related to our cryptocurrencies:

 Inadequate Measures for High Volatility. Cryptocurrencies are known for
 their high price volatility. If an organization's risk management strategies are not equipped to handle such fluctuations,
 this would be a significant gap.

 Lack of Preparedness for Regulatory Changes: The regulatory landscape for
 cryptocurrencies is evolving rapidly. An organization that is not prepared for potential regulatory changes may face compliance risks.

 Insufficient Cybersecurity Measures: Given the digital nature of cryptocurrencies,
 they are particularly susceptible to online frauds, scams, and hacking attempts. Inadequate cybersecurity measures to protect against
 these threats would be a critical risk management gap.

 We have made the following changes to address
these gaps:

 Revising Investment Strategies: We have diversified our investments, setting more stringent risk limits, or employing hedging strategies to mitigate potential losses.

 Enhancing Cybersecurity tools: We included the implementation of advanced security software, regular security audits, and the establishment of robust mechanisms for transaction handling and data protection.

 Providing Specialized Training: Offering specialized training to management and staff is essential to improve their understanding and ability to manage crypto-related risks. This training covered the basics of cryptocurrency, blockchain technology, risk management strategies specific to cryptocurrency, and the latest trends and developments in the crypto market.

 While we believe that
these changes adequately address these gaps, there can be no assurance that these changes will be effective or adequate. If we failed
to adequately address these gaps, the value of our cryptocurrencies may go down which could negatively impact or operations and adversely
affect the value of our shares.

 We are subject
to risks related to holding cryptocurrencies.

 Cryptocurrencies are
not considered legal tender or backed by any government and have experienced price volatility, technological glitches and various law
enforcement and regulatory interventions. The use of cryptocurrency such as Bitcoin has been prohibited or effectively prohibited in
some countries. If we fail to comply with any such prohibitions that may be applicable to us, we could face regulatory or other enforcement
actions and potential fines and other consequences.

 Cryptocurrencies have in the past and may in the
future experience periods of extreme volatility. Fluctuations in the value of any cryptocurrencies that we hold may also lead to fluctuations
in the value of our common stock. In addition, there is substantial uncertainty regarding the future legal and regulatory requirements
relating to cryptocurrency or transactions utilizing cryptocurrency. For instance, governments may in the near future curtail or outlaw
the acquisition, use or redemption of cryptocurrencies. In such cases, ownership of, holding or trading in cryptocurrencies may then be
considered illegal and subject to sanction. These uncertainties, as well as future accounting and tax developments, or other requirements
relating to cryptocurrency, could have a material adverse effect on our business.

 All
of our digital assets are stored in hot custodian, Matrix Trust Company Limited ("Matrixport"), a third party. We selected
Matrixport as our custodian due to its strong security measures and risk management practices, crucial for digital asset safety; its commitment
to compliance with regulatory standards across various regions within the crypto industry; its diverse range of services, including trading,
custody, and OTC transactions for both fiat and digital assets; and its solid market reputation in the crypto space in both the U.S. and
Asia. The material terms of our custody agreement with Matrixport are as follows:

 (a)
 Matrixport will act as the custodian for our digital assets
and hold such digital assets in trust in accordance with the agreement. Matrixport does not have the authority to exercise any investment
or tax planning discretion regarding our digital assets, and will not act as an advisor, broker or agent when executing our instructions.

 (b)
 Matrixport is only responsible for the safekeeping of our
digital assets which are delivered into its possession and control by us.

 (c)
 For any transfer of our digital assets from our account,
Matrixport will hold such proceeds for transfer until receipt of written disbursement instructions from us.

 (d)
 To the extent permitted by applicable laws and regulations
and Matrixport's internal policies and procedures, Matrixport shall transfer our digital assets in accordance with our instructions,
provided that sufficient digital assets are available to effect the instructions and for paying any outstanding amounts owing to Matrixport.

 (e)
 Our custody account at Matrixport is not a deposit account
and will not accrue interest. Further our custody account is not insured by FDIC.

 (f)
 Our executive officer has access to our custody account at
Matrixport, however, only our chief executive officer and chief financial officer, acting jointly, have the authority to release our
digital assets from custody.

 Matrixport bought $50
million insurance from OneInfinity by OneDegree, including specie and crime that cover both cold and warm storage. We have no insurance
policies covering our digital assets.

 We are exposed
to various risks associated with the failure to safeguard our digital assets.

 We are exposed to following
risks relating to the safeguarding of our digital assets:

 Security Breaches: Digital assets are stored in digital wallets or on exchanges,
 and they are vulnerable to security breaches, hacks, and unauthorized access. If adequate security measures are not in place, digital
 assets can be stolen or lost, leading to financial losses for the holders.

 Third-Party Risks: Entrusting digital assets to third-party service providers,
 such as custodians or exchanges, introduces additional risks. These providers may face security vulnerabilities, operational risks,
 or even fraudulent activities, which can result in the loss or compromise of the digital assets held with them.

 Regulatory Compliance: Safeguarding digital assets often involves complying
 with regulatory requirements, such as implementing appropriate know-your-customer (KYC) and anti-money laundering (AML) procedures.
 Failure to comply with these regulations can lead to legal consequences, fines, reputational damage, and potential disruptions to
 business operations.

 Operational Risks: Inadequate internal controls, poor infrastructure, or
 human errors can pose operational risks. Mistakes in handling private keys, mismanagement of wallets, or technological failures can
 result in the loss or inaccessibility of digital assets.

 In the event of security breaches or loss of
our digital assets, we may face significant financial losses. The value of the lost assets may not be recoverable, and liability for
the losses may rest with the business, impacting its financial condition and operations.

 In addition, inadequate safeguarding of digital
assets can result in legal and regulatory consequences which may lead to fines, penalties, legal disputes, or even the suspension of
business operations, affecting our business's reputation and financial stability.

 Also inadequate safeguarding practices may result
in increased legal and compliance costs. We may need to invest in legal representation, investigations, audits, or remediation efforts
to address any deficiencies, which can strain our financial resources.

 Risks Related to our Company

 The
ownership of our stock is highly concentrated in our chairman, and we have one controlling stockholder.

 As of March 1, 2024,
our Mr. Yucheng Hu, our chairman and chief executive officer beneficially owned approximately 15.87% of our outstanding common stock.
As a result of his ownership, Mr. Yu is able to significantly influence all matters requiring stockholder approval, including the election
of directors and approval of significant corporate transactions. This concentration of ownership may also have the effect of delaying
or preventing a change in control.

 Certain information contained in our historical
financial statements are not comparable to the information contained in our financial statements after the adoption of new business.

 Upon our emergence from Chapter 11, we adopted
fresh start accounting in accordance with ASC Topic 852 and became a new entity for financial reporting purposes. As a result, we revalued
our assets and liabilities based on our estimate of our enterprise value and the fair value of each of our assets and liabilities. These
estimates, projections and enterprise valuation were prepared solely for the purpose of the bankruptcy proceedings and should not be
relied upon by investors for any other purpose. At the time they were prepared, the determination of these values reflected numerous
estimates and assumptions, and the fair values recorded based on these estimates may not be fully realized in periods subsequent to our
emergence from Chapter 11.

 The consolidated financial statements after our
emergence from bankruptcy will not be comparable to the consolidated financial statements on or before that date. This will make it difficult
for stockholders to assess our performance in relation to prior periods.

 We have a limited operating history in
new short video drama business, so there is a limited track record on which to judge our business prospects and management.

 We are currently focusing on short video streaming
platform or producing short video dramas which is very different from our prior staking business, NFT gaming, and aircraft leasing business.
As such, our historical financial results should not be considered indicative of our future performance. In addition, we have a limited
operating history in providing short video streaming platform or producing short video dramas upon which to base an evaluation of our
business and prospects. You must consider the risks and difficulties we face as a small operating company with limited operating history.

 We will need to
raise additional capital or financing to continue to execute and expand our business.

 We will need to raise
additional capital to support our new operations and execute on our business plan by issuing equity or convertible debt securities. In
the event we are required to obtain additional funds, there is no guarantee that additional funds will be available on a timely basis
or on acceptable terms. To the extent that we raise additional funds by issuing equity or convertible debt securities, our shareholders
may experience additional dilution and such financing may involve restrictive covenants. Newly issued securities may include preferences,
superior voting rights, and the issuance of warrants or other convertible securities that will have additional dilutive effects. We cannot
assure that additional funds will be available when needed from any source or, if available, will be available on terms that are acceptable
to us. Further, we may incur substantial costs in pursuing future capital and/or financing. We may also be required to recognize non-cash
expenses in connection with certain securities we may issue, such as convertible notes and warrants, which will adversely impact our
financial condition and results of operations. Our ability to obtain needed financing may be impaired by such factors as the weakness
of capital markets, and the fact that we have not been profitable, which could impact the availability and cost of future financings.
If such funds are not available when required, management will be required to curtail investments in additional sales and marketing and
product development, which may have a material adverse effect on future cash flows and results of operations.

 Our business depends on the continuing
efforts of our management. If it loses their services, our business may be severely disrupted.

 Our business operations depend on the efforts
of our new management, particularly the executive officers named in this document. If one or more of our management were unable or unwilling
to continue their employment with us, it might not be able for us to replace them in a timely manner, or at all. We may incur additional
expenses to recruit and retain qualified replacements. Our business may be severely disrupted, and our financial condition and results
of operations may be materially and adversely affected. In addition, our management may join a competitor or form a competing company.
As a result, our business may be negatively affected due to the loss of one or more members of our management.

 We may not be able to prevent or timely
detect cyber security breaches and may be subject to data, security and/or system breaches which could adversely affect our business
operations and financial conditions.

 We rely on information
technology networks and systems, including the use of third-party communications systems over the Internet, to process, transmit and
store electronic information, and to manage or support our business activities. These information technology networks and systems may
be subject to security breaches, hacking, phishing, or spoofing attempts by others to gain unauthorized access to our business information
and financial accounts. A cyberattack, unauthorized intrusion, or theft of personal, financial or sensitive business information could
have a material adverse effect of on our business operations or our clients' information, and could harm our operations, reputation
and financial situation. In addition, due to an increase in the types of cyberattacks, our employees could be victim to such scams designed
to trick victims into transferring sensitive company data or funds, that could compromise and/or disrupt our business operations.

 We were a victim of
a business email compromise scam (BEC) in December 2021. BEC scams involve using social engineering to cause employees to wire funds
to the perpetrators in the mistaken belief that the requests were made by a company executive or established vendor. As a result of the
BEC scam, we have enhanced BEC awareness within our organization, established additional controls to help detect BEC scams when they
occur, and require additional confirmations for large money transactions. In addition, we seek to detect and investigate all cybersecurity
incidents and to prevent their recurrence, but in some cases, we might be unaware of an incident or its magnitude, duration, and effects.
While we take every effort to train our employees to be cognizant of these types of attacks and to take appropriate precautions, and
have taken actions and implemented controls to protect our systems and information, the level of technological sophistication being used
by attackers has increased in recent years, and may be insufficient to protect our systems or information. Any successful cyberattack
against us could lead to the loss of significant company funds or result in in potential liability, including litigation or other legal
actions against us, or the imposition of penalties, which could cause us to incur significant remedial costs. Further, we cannot ensure
that our efforts and measures taken will be sufficient to prevent or mitigate any damage caused by a cybersecurity incident, and our
networks and systems may be vulnerable to security breaches, hacking, phishing, spoofing, BEC, employee error or manipulation, or other
adverse events.

 Due to the evolving
nature and increased sophistication of these cybersecurity threats, the potential impact of any future incident cannot be predicted with
certainty; however, any such incidents could have a material adverse effect on our results of operations and financial condition, especially
if we fail to maintain sufficient insurance coverage to cover liabilities incurred or are unable to recover any funds lost in data, security
and/or system breaches, and could result in a material adverse effect on our business and results of operations.

 We do not maintain commercial insurance to
cover loss of digital assets.

 We do not carry any insurance that covers the
loss of our digital assets held by our custodian and its affiliates. As such, we may not be able to recover any funds lost in data, security
and/or system breaches.

 We are subject
to various laws relating to foreign corrupt practices, the violation of which could adversely affect its operations, reputation, business,
prospects, operating results and financial condition.

 We are subject to risks
associated with doing business outside of the United States, including exposure to complex foreign and U.S. regulations such as the Foreign
Corrupt Practices Act (the "FCPA") and other anti-corruption laws which generally prohibit U.S. companies and their intermediaries
from making improper payments to foreign officials for the purpose of obtaining or retaining business. Violations of the FCPA and other
anti-corruption laws may result in severe criminal and civil sanctions and other penalties. It may be difficult to oversee the conduct
of any contractors, third-party partners, representatives or agents who are not our employees, potentially exposing us to greater risk
from their actions. If our employees or agents fail to comply with applicable laws or company policies governing our international operations,
we may face legal proceedings and actions which could result in civil penalties, administration actions and criminal sanctions. Any determination
that we have violated any anti-corruption laws could have a material adverse impact on our business.

 Violations of these laws
and regulations could result in significant fines, criminal sanctions against us, our officers or our employees. Additionally, any such
violations could materially damage our reputation, brand, international expansion efforts, ability to attract and retain employees and
our business, prospects, operating results and financial condition.

 Historically, we have dealt with significant amounts
of cash in our operations, which have subjected us to various reporting and anti-money laundering regulations. Any violation of anti-money
laundering laws or regulations by us could have a material adverse impact on our business.

 As of December 31, 2023, our internal control
over financial reporting was ineffective, and if we continue to fail to improve such controls and procedures, investors could lose confidence
in our financial and other reports, the price of our common stock may decline, and we may be subject to increased risks and liabilities.

 As a public company, we are subject to the reporting
requirements of the Securities Exchange Act of 1934, as amended ("Exchange Act") and the Sarbanes-Oxley Act of 2002. The
Exchange Act requires, among other things, that we file annual reports with respect to our business and financial condition. Section
404 of the Sarbanes-Oxley Act requires, among other things, that we include a report of our management on our internal control over financial
reporting. We are also required to include certifications of our management regarding the effectiveness of our disclosure controls and
procedures. We previously identified a material weakness in our internal control over financial reporting relating to our tax review
control for complex transactions. We are in the process of enhancing our tax review control related to unusual transactions that we may
encounter, but that control has not operated for a sufficient time to determine if the control was effective as of December 31, 2023.
If we cannot effectively maintain our controls and procedures, we could suffer material misstatements in our financial statements and
other information we report which would likely cause investors to lose confidence. This lack of confidence could lead to a decline in
the trading price of our common stock.

 Compliance with the Sarbanes-Oxley Act
of 2002 will require substantial financial and management resources and may increase the time and costs of completing an acquisition.

 Section 404 of the Sarbanes-Oxley Act of 2002
requires that we evaluate and report on our system of internal controls and may require us to have such system audited by an independent
registered public accounting firm. If we fail to maintain the adequacy of our internal controls, we could be subject to regulatory scrutiny,
civil or criminal penalties and/or shareholder litigation. Any inability to provide reliable financial reports could harm our business.
Furthermore, any failure to implement required new or improved controls, or difficulties encountered in the implementation of adequate
controls over our financial processes and reporting in the future, could harm our operating results or cause us to fail to meet our reporting
obligations. Inferior internal controls could also cause investors to lose confidence in our reported financial information, which could
have a negative effect on the trading price of our securities.

 The trading prices of our common stock
could be volatile, which could result in substantial losses to our shareholders and investors.

 The trading prices of our common stock could
be volatile and could fluctuate widely due to factors beyond our control. This may happen because of broad market and industry factors,
like the performance and fluctuation in the market prices or the underperformance or deteriorating financial results of other similarly
situated companies that have listed their securities in the U.S. in recent years. The securities of some of these companies have experienced
significant volatility including, in some cases, substantial price declines in the trading prices of their securities. In addition, securities
markets may from time to time experience significant price and volume fluctuations that are not related to our operating performance,
such as the large decline in share prices in the United States and other jurisdictions.

 In addition to market and industry factors, the
price and trading volume for our common stock may be highly volatile for factors specific to our own operations including the following:

 variations in our revenue, earnings and cash flow;

 announcements of new product
and service offerings, investments, acquisitions, strategic partnerships, joint ventures, or capital commitments by us or our competitors;

 changes in the performance or
market valuation of our company or our competitors;

 changes in financial estimates
by securities analysts;

 changes in the number of our
users and customers;

 fluctuations in our operating
metrics;

 failures on our part to realize
monetization opportunities as expected;

 additions or departures of our
key management and personnel;

 detrimental negative publicity
about us, our competitors or our industry;

 market conditions or regulatory
developments affecting us or our industry; and

 potential litigations or regulatory
investigations.

 Any of these factors may result in large and
sudden changes in the trading volume and the price at which our common stock will trade. In the past, shareholders of a public company
often brought securities class action suits against the listed company following periods of instability in the market price of that company's
securities. If we were involved in a class action suit, it could divert a significant amount of our management's attention and
other resources from our business and operations, which could harm our results of operations and require us to incur significant expenses
to defend the suit. Any such class action suit, whether or not successful, could harm our reputation and restrict our ability to raise
capital in the future. In addition, if a claim is successfully made against us, we may be required to pay significant damages, which
could have a material adverse effect on our financial condition and results of operations.

 If our common stock becomes subject to
the SEC's penny stock rules, broker-dealers may experience difficulty in completing customer transactions, and trading activity
in our securities may be adversely affected.

 If at any time we have net tangible assets of
$5,000,001 or less and our common stock has a market price per share of less than $5.00, transactions in our common stock may be subject
to the "penny stock" rules promulgated under the Exchange Act. Under these rules, broker-dealers who recommend such securities
to persons other than institutional accredited investors must:

 make a special written suitability
determination for the purchaser;

 receive the purchaser's
written agreement to the transaction prior to sale;

 provide the purchaser with risk
disclosure documents which identify certain risks associated with investing in "penny stocks" and which describe the market
for these "penny stocks" as well as a purchaser's legal remedies; and

 obtain a signed and dated acknowledgment
from the purchaser demonstrating that the purchaser has actually received the required risk disclosure document before a transaction
in a "penny stock" can be completed.

 If our common stock becomes subject to these
rules, broker-dealers may find it difficult to effectuate customer transactions and trading activity in our securities may be adversely
affected. As a result, the market price of our common stock may be depressed, and you may find it more difficult to sell our common stock.

 An active trading market for our common
stock may not develop, and you may not be able to easily sell your common stock.

 An active trading market for shares of our common
stock following our emergence from bankruptcy may never develop or be sustained. If an active trading market does not develop, you may
have difficulty selling your shares of common stock or at all. An inactive market may also impair our ability to raise capital by selling
our common stock, and it may impair our ability to attract and motivate our employees through equity incentive awards and our ability
to acquire other companies by using our common stock as consideration.

 If we do not continue to satisfy the NYSE
American continued listing requirements, our common stock could be delisted.

 The listing of our common stock on NYSE American
is contingent on our compliance with the NYSE American's conditions for continued listing.

 Should we fail to meet the NYSE American's
continuing listing requirements, we may be subject to delisting by the NYSE America. In the event our common stock is no longer listed
for trading on the NYSE American, our trading volume and share price may decrease and we may experience difficulties in raising capital
which could materially affect our operations and financial results. Further, delisting from the NYSE American could also have other negative
effects, including potential loss of confidence by partners, lenders, suppliers and employees. Finally, delisting could make it harder
for us to raise capital and sell securities.

 Sales of a significant number of our common
stock in the public market, or the perception that such sales could occur, could depress the market price of our common stock.

 On October 7, 2022, we registered 2,397,305 shares
of the Company's common stock for resale by selling stockholder. The sales of those shares of common stock in the public market
could depress the market price of our common stock and impair our ability to raise capital through the sale of additional equity securities.
We cannot predict the effect that future sales of our common stock would have on the market price of our common stock.

 If we acquire digital assets that are securities,
even unintentionally, we may violate the Investment Company Act of 1940 and incur potential third-party liabilities.

 As of December 31, 2023, we held approximately
$0.6 million in USDT, $0.2 million in USDC, and $7.1 million in ETH. The Company intends to comply with the Investment Company Act of
1940 (the "1940 Act") in all respects. To that end, if holdings of cryptocurrencies are determined to constitute investment
securities of a kind that subject the Company to registration and reporting under the 1940 Act, the Company will limit its holdings to
less than 40% of its assets. Section 3(a)(1)(C) of the 1940 Act defines "investment company" to mean any issuer that is engaged
or proposes to engage in the business of investing, reinvesting, owning, holding, or trading in securities, and owns or proposes to acquire
investment securities having a value exceeding 40% of the value of such issuer's total assets (exclusive of Government securities
and cash items) on an unconsolidated basis. Section 3(a)(2) of the 1940 Act defines "investment securities" to include all
securities except (A) Government securities, (B) securities issued by employees' securities companies, and (C) securities issued
by majority-owned subsidiaries which (i) are not investment companies and (ii) are not relying on the exception from the definition of
investment company in section 3(c)(1) or 3(c)(7) of the 1940 Act. As noted above, the SEC has not stated whether stablecoins such as USDC
and USDT and other cryptocurrency such as ETH is an investment security, as defined in the 1940 Act.

 Item 1B. Unresolved Staff Comments.

 Not Applicable.

 Item 1C. Cybersecurity

 The Company operates in a dynamic environment
with evolving cybersecurity threats. Our business relies heavily on the secure operation of our technology infrastructure and the protection
of user data.

 A successful cyberattack could have a significant
negative impact on our business, including:

 Data breaches: Unauthorized access
to user data, including nicknames, email addresses, country, and identification numbers, could lead to reputational damage, regulatory
fines, and legal action, a loss of users and loss of revenue.

 Disruption of service: A cyberattack
could disrupt our service, preventing users from accessing content and impacting our revenue.

 Loss of intellectual property: Cybercriminals
could steal our proprietary content or intellectual property, harming our competitive advantage.

 Costs associated with responding to a cyberattack: Costs of
remediation, legal fees, and regulatory fines, could be significant.

 The security and privacy of our users and their
data is our priority, and we proactively manage cybersecurity risks to ensure robust protection for our platform. We integrate cybersecurity
risk management into our overall organizational strategy. Our Board of Directors oversees risk management, including cybersecurity. Key
elements of our framework include:

 Risk Assessment and Identification: We conduct regular assessments to identify, evaluate, and prioritize potential cybersecurity threats and vulnerabilities. We utilize various methods like vulnerability scanning, threat intelligence feeds, and penetration testing.

 Technical Safeguards: We deploy a multi-layered defense system with various technical safeguards to protect our infrastructure and user data. This includes firewalls, intrusion detection and prevention systems (IDS/IPS), data encryption (at rest and in transit), and access controls based on the principle of least privilege.

 Incident Response and Recovery: We have documented and well-rehearsed incident response procedures to effectively respond to, contain, and remediate security incidents. These procedures ensure timely detection, investigation, and recovery, minimizing potential damage and ensuring user privacy.

 Mapping data flows and user locations: We understand where user data is stored and transmitted, enabling us to identify relevant privacy laws and to implement suitable user data protection.

 Third-Party Risk Management: We implement a rigorous process for vetting and securing our relationships with third-party vendors. This includes security assessments and contractual agreements outlining specific security measures they must adhere to.

 Security Awareness and Training: We regularly conduct comprehensive security awareness training programs for all employees. These programs educate them on cybersecurity best practices, threat identification, and reporting procedures.

 Despite our efforts, there is no guarantee that
we can completely eliminate the risk of cyberattacks. Our cybersecurity measures may not be effective against all threats, and new vulnerabilities
may emerge that we are unaware of.

 Item 2. Properties.

 As of December 31, 2023, the Company did not own
any real property, plant or materially important physical properties. The Company leases its principal executive office space at 3000
El Camino Real, Building 4, Suite 200 Palo Alto, California 94306 on a month-to-month basis. The Company leases its Singapore office
at Capita Spring, 88 Market Street, Level 21, Singapore 048948 on a month-to-month basis. The Company considers its office space suitable
and adequate for the purpose for which they are used for.

 Item 3. Legal Proceedings.

 The Company from time to time engages in ordinary
course litigation incidental to the business, typically relating to lease collection matters against defaulting lessees and mechanic's
lien claims by vendors hired by lessees. Although the Company cannot predict the impact or outcome of any of these proceedings, including,
among other things, the amount or timing of any liabilities or other costs it may incur, none of the pending legal proceedings to which
the Company is a party or any of its property is subject is anticipated to have a material effect on the Company's business, financial
condition or results of operations.

 Item 4. Mine Safety Disclosures.

 Not applicable.

 Item 5. Market for Registrant's Common
Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

 Market Information

 The Company's common stock is traded on
the NYSE American under the symbol "MPU."

 Number of Holders

 According to the Company's transfer agent,
the Company had approximately 343 stockholders of record as of March 1, 2024. Because brokers and other institutions and nominees hold
many of the Company's shares of Common Stock on behalf of beneficial owners, the Company is unable to estimate the total number
of beneficial owners represented by those nominees.

 Dividends

 In connection with the Company's exit from
Chapter 11 reorganization, as set forth in the Combined Disclosure Statement and Joint Chapter 11 Plan of Reorganization of AeroCentury
Corp., and its Affiliated Debtors Docket No. 0282 (the "Plan") which was previously approved by the U.S. Bankruptcy Court
for the District of Delaware on August 31, 2021, the previously approved special cash dividend of $0.6468 per share was paid to stockholders
that held shares of Common Stock of the Company as of the effective date of the Plan prior to the sale and issuance of Common Stock of
the Company to the plan sponsor investors led by Yucheng Hu on October 13, 2021. The record date for the Dividend and the effective date
of the Plan was September 30, 2021.

 Equity Compensation Plan Information

 The following table provides certain information
with respect to our equity compensation plans in effect as of December 31, 2023:

 Number of
 securities
 to be issued
 upon
 exercise of
 outstanding
 options, and
 settlement
 of RSUs
 (a)

 Weighted-
 average
 exercise
 price of
 outstanding
 options, and
 issuance
 price of
 RSUs
 (b)

 Number of
 securities
 remaining
 available for
 future
 issuance
 under equity
 compensation
 plans
 (excluding
 securities
 reflected in
 column a)
 I

 Equity compensation plans approved by security holders (1)

 1,580,000

 —

 1,580,000

 Total

 1,580,000

 —

 1,580,000

 (1)

 Consists of 1,580,000 shares of common stock reserved for issuance under the Mega Matrix Corp. Amended and Restated 2021 Equity Incentive Plan (the "2021 Plan") which was approved by our shareholders on December 29, 2023. As of December 31, 2023, no awards were granted under the 2021 Plan.

 Recent Sales of Unregistered Securities

 On December 23, 2022,
we entered into a Securities Purchase Agreement (the "Purchase Agreement") with certain accredited investors named in the
Purchase Agreement, pursuant to which we agreed to sell up to an aggregate of 5,280,000 shares of our common stock, $0.001 par value per
share at a purchase price of $1.30 per share, or $6.9 million.

 On January 20, 2023,
we completed an initial sale of 4,314,615 shares of Common Stock pursuant to the Private Placement to certain Purchasers for an aggregate
purchase price of $5.6 million, or $1.30 per share.

 On February 15, 2023, we completed the final sale
of 765,384 shares of Common Stock pursuant to the Private Placement to a Purchaser for an aggregate purchase price of $1.0 million, or
$1.30 per share, for combined total issuance of 5,079,999 shares of Common Stock for gross proceeds of approximately $6.6 million under
the Private Placement, before deducting estimated offering expenses payable by us.

 On
June 5, 2023, we entered into a Network Security Service Agreement with Vision Ace Limited, a British Virgin Islands corporation ("Vision"),
pursuant to which the Company has agreed to issue 160,577 shares of common stock of the Company, $0.001 par value valued at $237,700.10,
or $1.48 per share, as consideration for Vision's services.

 On
December 1, 2023, we entered into a Consulting Agreement with Honor Related LLC, a British Virgin Islands corporation
("Hornor"), pursuant to which the Company has agreed to issue 30,000 restricted shares of the Company's common
stock, $0.001 par value per share, on December 31, 2023, March 31, 2024, June 30, 2024, and September 30, 2024, for an aggregate of
120,000 shares of Common Stock, valued at $120,000, as consideration for Hornor's services.

 On January 7, 2024, we entered into and closed
a definitive Share Exchange Agreement ("Exchange Agreement") with FunVerse Holding Limited ("FunVerse"), a company
incorporated under the laws of the British Virgin Islands and the sole parent company of Yuder, and the shareholders of FunVerse. Under
the Exchange Agreement, Sellers will exchange 51,375,000 of their FunVerse's shares for 1,500,000 shares of common stock of the
Company, par value $0.001 ("Common Stock"), as per terms and conditions set forth in the Exchange Agreement (the "Share
Exchange"), free and clear of all liens (other than potential restrictions on resale under applicable securities laws), which the
parties agreed is valued at $2,175,000, or $1.45 per share of Common Stock.

 On January 12, 2024, we entered into a Unit Subscription
Agreement (the "Agreement") with certain investors (collectively the "Subscribers"), pursuant to which the Subscribers
agreed, subject to certain terms and conditions of the Agreement, to purchase an aggregate of 2,490,000 units (the "Units")
for an aggregate purchase price of $3,735,000, or $1.50 per unit (the "Offering Purchase Price"). Each Unit consists of one
(1) share of common stock of the Company, $0.001 par value, and one (1) warrant (the "Warrant"), with each Warrant entitling
the holder to purchase one share of common stock at an exercise price of $1.50 per share at any time for a period of up to five (5) years
starting six (6) months from the issuance date at which time the Warrant will expire ("Offering"). The Agreement contains
customary representations, warranties and covenants of the parties, and the closing is subject to customary closing conditions. The closing
of the Offering occurred on January 17, 2024.

 Purchases of Equity Securities

 Neither we nor any "affiliated purchaser,"
as defined in Rule 10b-18(a)(3) of the Exchange Act, purchased any of our equity securities during the period covered by this annual report.

 Item 6. [Reserved]

 Item 7. Management's Discussion and Analysis
of Financial Condition and Results of Operations.

 The following discussion and analysis should
be read together with the Company's audited consolidated financial statements and the related notes included in this report. This
discussion and analysis contains forward-looking statements. Please see the cautionary note regarding these statements at the beginning
of this report.

 Historically, we have provided leasing and financing
services to regional airlines worldwide and have been principally engaged in leasing mid-life regional aircraft to customers worldwide
under operating leases and finance leases. In addition to leasing activities, we have also sold aircraft from our operating lease portfolio
to third parties, including other leasing companies, financial services companies, and airlines. Our operating performance was driven
by the composition of its aircraft portfolio, the terms of its leases, and the interest rate of its debt, as well as asset sales.
Since September 30, 2021, our former substantially controlled subsidiary, JetFleet Management Corp, a California corporation and formerly
known as JetFleet Holding Corporation ("JetFleet") limited its services to providing aircraft advisory and management service.
On August 24, 2023, per the recommendation of JetFleet's board of directors, we, as a holder of a majority of the voting stock of
JetFleet, elected to approve the winding up and dissolution of Jetfleet. As part of the winding up process, Jetfleet ceased providing
aircraft advisory and management services. On December 14, 2023, Jetfleet was formally dissolved.

 Since
January 7, 2024, through Yuder, we operate FlexTV, a short drama streaming platform based in Singapore that produces English and
Thai dramas that are also translated into different languages for our users that are spread across various parts of the world such
as Europe, America, and Southeast Asia. In addition to creating original dramas, Yuder also acquires third party content licenses
which it then translates and distributes on its FlexTV platform. To deliver diverse and international content to our users,
Yuder's produces film in various parts of the world, including, but not limited to, the United States, Mexico, Australia,
Thailand, and Philippines

 Prior to FlexTV, we, through our wholly-owned subsidiary, Savings Digital
Pte. Ltd, a Singapore corporation ("SDP"), conducted solo-staking of our own cryptocurrency. The management has made the strategic
decision to terminate the solo-staking business and focus on short drama streaming platform development.

 Corporate Developments

 On October 20, 2021, the Company set up Mega Metaverse
Corp. ("Mega"), a wholly owned subsidiary incorporated in California. In December 2021, the Company launched the NFT business
in the metaverse ecosystem through Mega, and released the first NFT game "Mano" on March 25, 2022. Mano is a competitive idle
role-playing game (RPG) deploying the concept of NFTs based on blockchain technology, with a "Play-to-earn" business model
that the players can earn while they play in Mega's metaverse universe "alSpace".

 For the year ended December 31, 2022, the Company
received $326,800 of BNB in revenue for the services. Due to business reasons, the Company decided to suspend the Mano game and the alSpace
platform, and on November 4, 2022, the Company discontinued the Mano game and the alSpace platform. As the game was newly launched and
not yet widely adopted by players, the discontinuance of the game did not materially impact on our business activities.

 On August 31, 2022, the Company acquired all of
the equity interest in Saving Digital Pte. Ltd., a Singapore exempt private company limited by shares ("SDP") with no operations
and approximately $3,800 in cash, from the chairman Yucheng Hu for a nominal consideration of $10,000. Through SDP, we have engaged in
Ethereum solo-staking utilizing the Marsland staking platform.

 For the period from September 19, 2022 through
December 31, 2023, through SDP, the Company purchased 3,102.40 Ether (ETH) on Matrixport Cactus Custody, our principal market for ETH,
at an aggregated cost of approximately $5.41 million, for the purpose of exploring Ethereum staking opportunities following the transition
by Ethereum on September 15, 2022 from proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism referred to as the "Merge."
Prior to the Merge, Ethereum utilized a PoW validation method for digital asset transactions. Following the Merge, Ethereum shifted to
a PoS validation system where validators stake their ETH into a smart contract on Ethereum to serve as collateral that can be destroyed
if the validator behaves dishonestly or lazily. The validator (selected randomly) is then responsible for processing the blockchain transactions,
storing data and adding new blocks to the blockchain. Validators receive transaction fee on their staked coins in ETH as a reward for
their active participation in the network. To become a validator on Ethereum, a participant must stake 32 ETH. As of December 31, 2023,
SDP explored the Solo-Staking by staking 1600 ETH to become fifty (50) validators to Ethereum to earn ETH rewards and yield. Solo-Staking
enables SDP to utilize its ETH treasury to stake on the Ethereum beacon chain and to earn ETH-denominated rewards directly from the Ethereum
protocol. For the year ended December 31, 2023, the Company earned 19.5 ETH from solo-staking services and 1.9 ETH from provision of staking
technology tools.

 The Company recognized revenues from solo-staking, in the form of ETH,
on a daily basis. The Company recognized the revenue by reference to the number of ETH we earned and the closing price published by CoinMarketCap.
The staked crypto assets cannot also be used and allocated. The Company's staking expenses are primarily service fees charged by
Matrixport Cactus Custody ("cactus fees"). The Company recognized the expenses on a daily basis, referring to the number of
ETH charged by MatrixPort Cactus and the closing price of the day. For the years ended December 31, 2023 and 2022, we recognized cactus
fees of approximately $17,200 and $17,400, respectively.

 On September 29, 2022, the Company entered into
a Securities Purchase Agreement (the "Purchase Agreement") with certain accredited investors named in the Purchase Agreement
(collectively, the "Purchasers"), pursuant to which the Company agreed to sell an aggregate of 4,400,000 shares of the Company's
common stock, $0.001 par value per share (the "Common Stock") at a purchase price of $1.00 per share (the "Private Placement").
The gross proceeds of the Private Placement were $4.4 million, before deducting offering expenses payable by the Company. The Purchase
Agreement contains customary representations, warranties and covenants of the parties, and the closing is subject to customary closing
conditions. The closing of the Private Placement occurred on October 18, 2022. As of September 30, 2022, the Company received advanced
subscription fees of $2.2 million from certain Purchasers, among which $2.2 million were in cash and $0.75 million were in USDC. The closing
of the Private Placement occurred on October 18, 2022.

 On December 23, 2022, the Company entered into
another Securities Purchase Agreement (the "Purchase Agreement") with certain accredited investors named in the Purchase Agreement
(collectively, the "Purchasers"), pursuant to which the Company agreed to sell up to an aggregate of 5,280,000 shares of the
Company's common stock, $0.001 par value per share (the "Common Stock") at a purchase price of $1.30 per share, or $6.9
million (the "Private Placement"). On January 20, 2023, the Company completed an initial sale of 4,314,615 shares of Common
Stock pursuant to the Private Placement to certain Purchasers for an aggregate purchase price of $5.6 million, or $1.30 per share. On
February 15, 2023, the Company completed the final sale of 765,384 shares of Common Stock pursuant to the Private Placement to a Purchaser
for an aggregate purchase price of $1.0 million, or $1.30 per share, for combined total issuance of 5,079,999 shares of Common Stock for
gross proceeds of approximately $6.6 million to the Company under the Private Placement, before deducting estimated offering expenses
payable by the Company.

 On March 1, 2023, SDP and Bit Digital Singapore
Pte. Ltd. ("Bit Digital"), entered into a shareholders' agreement (the "Shareholders Agreement") with Marsprotocol
Technologies Pte. Ltd. ("MTP"), to provide proof-of-stake technology tools for digital assets through the staking platform
"MarsProtocol", an institutional grade non-custodial staking technology. Pursuant to the Shareholders Agreement, SDP owned
60% and Bit Digital owned 40% of MTP.

 On
August 4, 2023, Bit Digital exited its investment in MTP and withdrew its capital contribution of SGD$120,000 from MTP. As a result of
the transaction, SDP owns all outstanding ordinary shares of MTP. As of July 2023, MTP ceased providing non-custodial staking tools to
third parties. MTP no longer provides non-custodial staking tools to third parties from July 2023.

 On April 25, 2023, we, through our 100% controlled
Singapore subsidiary SDP, invested $300,000 in MarsLand Global Limited ("MarsLand"), a BVI company and held 30% interest in
MarsLand. The other shareholders of MarsLand are non-affiliated.

 MarsLand
will provide staking services to institutional clients, including us and Bit Digital. Further, SDP has successfully applied for and registered
the trademark "MarsProtocol" in Singapore and has entered into a license agreement with MarsLand authorizing MarsLand the
right to use the MarsProtocol trademark in connection with its staking as a service ("StaaS") business. As of March 2024,
SDP has stopped Ethereum solo-staking business to focus on FlexTV.

 On January 7, 2024, the Company entered into and
closed a definitive Share Exchange Agreement ("Exchange Agreement") with FunVerse Holding Limited ("FunVerse"),
a company incorporated under the laws of the British Virgin Islands and the sole parent company of Yuder, and the shareholders of FunVerse
(collectively, "Sellers"). Before the closing of the Exchange Agreement, the Sellers held 85,625,000 ordinary shares of FunVerse,
$0.0001 par value per share, which represents all of the issued and outstanding shares of FunVerse. Under the Exchange Agreement, Sellers
will exchange 51,375,000 of their FunVerse's shares for 1,500,000 shares of common stock of the Company, par value $0.001 ("Common
Stock"), as per terms and conditions set forth in the Exchange Agreement (the "Share Exchange"), free and clear of all
liens (other than potential restrictions on resale under applicable securities laws), which the parties agreed is valued at $2,175,000,
or $1.45 per share of Common Stock. Following the Share Exchange, the Company owned sixty percent (60%) of capital stock of FunVerse.

 On January 12, 2024, the Company entered into
a Unit Subscription Agreement (the "Agreement") with certain investors (collectively the "Subscribers"), pursuant
to which the Subscribers agreed, subject to certain terms and conditions of the Agreement, to purchase an aggregate of 2,490,000 units
(the "Units") for an aggregate purchase price of $3,735,000, or $1.50 per unit (the "Offering Purchase Price").
Each Unit consists of one (1) share of common stock of the Company, $0.001 par value, and one (1) warrant (the "Warrant"),
with each Warrant entitling the holder to purchase one share of common stock at an exercise price of $1.50 per share at any time for a
period of up to five (5) years starting six (6) months from the issuance date at which time the Warrant will expire ("Offering").
The Agreement contains customary representations, warranties and covenants of the parties, and the closing is subject to customary closing
conditions. The closing of the Offering occurred on January 17, 2024.

 Ethereum Rewards

 During the year ended December 31, 2023, we earned
an aggregate of 19.5 ETH as rewards from our solo-staking and 1.9 ETH in fees generated from our proof-of-stake technology tools for digital
assets through the staking platform "MarsProtocol". The Company early adopted ASU 2023-08 on January 1, 2023, to measure digital
assets using fair value. The new guidance requires entities to subsequently measure certain cryptocurrency at fair value, with changes
in fair value recorded in net income in each reporting period. Retrospective restatement would not be required or allowed for prior periods.
The following table presents our ETH activities for the year ended December 31, 2023:

 Number of

ETH

 Amount (1)

 Balance at December 31, 2022

 334.2

 $

 Cumulative-effect adjustment of opening balance due to adoption of fair value measurement

 -

 30,600

 Addition of ETH staking reward and other services

 21.4

 41,000

 Purchases of ETH from exchange of USDC

 1,567.6

 2,894,400

 Purchases of ETH from exchange of USDT

 1,234.1

 2,119,500

 Return of ETH to a third party

 (32.0
)

 (48,500
)

 Payment of ETH for other services

 (2.8
)

 (4,800
)

 Changes in fair value of ETH

 -

 1,721,900

 Balance at December 31, 2023

 3,122.5

 $
 7,123,300

 (1)

 Receipt of digital assets from staking reward are the product of the number of ETH received multiplied by the ETH price obtained from Matrixport Cactus Custody, calculated on a daily basis. Sales of digital assets are the actual amount received from sales.

 The Company believes that the ETH and other digital
assets that the Company hold are not securities is a risk-based assessment and not a legal standard or binding on the SEC, courts or any
other regulators. If USDC, USDT, or ETH are deemed to be securities under the laws of any U.S. federal, state, or foreign jurisdiction,
or in a proceeding in a court of law or otherwise, it may have adverse consequences for such digital asset. See " Risk Factors
– Risks Related to our Business – A particular digital asset's status, such as an ETH, as a "security" in
any relevant jurisdiction is subject to a high degree of uncertainty and if a regulator disagrees with our characterization of the ETH
and other stablecoins, the Company may be subject to regulatory scrutiny, investigation, fines and penalties, which may adversely affect
our business, operating results and financial condition. A determination that an ETH or stablecoin is a "security" may adversely
affect the value of those ETH, stablecoins and our business. "

 As
of the date of this report, we did not and no plans to collateralize any of these digital assets for any loan, margin, rehypothecation,
or other similar activities to which we or our affiliates are a party. In addition, we have not issued any digital assets or held any
digital assets on behalf of third parties. We have not experienced any excessive redemption or withdrawals, or have suspended redemptions
or withdrawals, of digital assets.

 Segment and Related Information

 Due to business reasons, the Company, on November
4, 2022, discontinued the Mano game and the alSpace platform. In December 2023, JMC, which operated the leasing of regional aircraft to
foreign and domestic regional airlines, closed its dissolution. Accordingly as of December 31, 2023, the Company had one business segment,
which was the ETH staking business. However, as of the date of this report, the Company has stopped ETH solo-staking and will focus
on operating FlexTV, a leading short drama streaming platform based in Singapore, and producer of English and Thai dramas that are also translated into different languages for our users that
are spread across various parts of the world such as Europe, America, and Southeast Asia. In addition to creating original dramas, Yuder
also acquires third party content licenses which it then translates and distributes on its FlexTV platform.

 For the year ended December 31, 2023, the Company
had two business segments which were comprised of 1) the ETH staking business, and 2) the leasing of regional aircraft to foreign and
domestic regional airlines.

 For the year ended December 31, 2022, the Company
had three business segments which were comprised of 1) the ETH staking business, 2) the GameFi business, and 3) the leasing of regional
aircraft to foreign and domestic regional airlines.

 The following tables present summary information
of operations by segment for the years ended December 31, 2023 and 2022.

 For the Year Ended December 31, 2023

 Staking

 Leasing

 Total

 Revenue

 $

 $
 -

 $

 Gross loss

 $
 (233,300
)

 $
 -

 $
 (233,300
)

 $
 (1,972,100
)

 $
 (1,289,800
)

 $
 (3,261,900
)

 Loss before income tax provision

 $
 (3,313,500
)

 $
 (1,279,600
)

 $
 (4,593,100
)

 $
 (3,315,100
)

 $
 (1,365,100
)

 $
 (4,680,200
)

 For the Year Ended December 31, 2022

(As Restated)

 Staking

 GameFi

 Leasing

 Total

 Revenue

 $
 1,800

 $
 326,800

 $

 $
 448,600

 Gross (loss) profit

 $
 (219,700
)

 $
 (234,300
)

 $

 $
 (334,000
)

 $
 (1,455,600
)

 $
 (2,407,100
)

 $
 (6,629,200
)

 $
 (10,491,900
)

 Loss before income tax provision

 $
 (1,675,300
)

 $
 (2,641,400
)

 $
 (5,030,400
)

 $
 (9,347,100
)

 $
 (1,675,700
)

 $
 (2,642,600
)

 $
 (4,979,900
)

 $
 (9,298,200
)

 Results of Operations

 The following table represents our consolidated statement of operations for the years ended December 31, 2023 and 2022.

 2023

 2022

 Revenues

 $

 $
 448,600

 Cost of revenues

 (281,100
)

 (782,600
)

 Gross loss

 (233,300
)

 (334,000
)

 Operating expenses (income):

 Professional fees, general and administrative and other

 3,087,900

 2,179,200

 Salaries and employee benefits

 1,509,700

 2,027,500

 Insurance

 345,700

 371,800

 Marketing expenses

 28,000

 -

 IT expenses

 12,500

 431,000

 Impairment of digital assets

 -

 78,900

 Changes in fair value of digital assets

 (1,721,900
)

 -

 Interest

 -

 Other taxes

 -

 6,000

 Impairment of intangible assets

 -

 888,900

 Impairment of goodwill

 -

 Reversal of bad debt expense

 -

 (300,000
)

 3,261,900

 10,491,900

 Loss from operations

 (3,495,200
)

 (10,825,900
)

 Other income (expenses):

 Share of equity loss in an equity method investee

 (75,200
)

 -

 10,400

 Loss from dissolution of subsidiaries

 (1,033,100
)

 -

 Total other (expenses) income, net

 (1,097,900
)

 Loss from operations before income tax

 (4,593,100
)

 (9,347,100
)

 Income tax (expenses) benefits

 (87,100
)

 48,900

 Net loss and comprehensive loss

 $
 (4,680,200
)

 $
 (9,298,200
)

 Revenues

 For the year ended December 31, 2023, the Company
generated revenue of $37,800 from solo-staking and revenues of $10,000 from provision of staking technology tools. Both solo-staking services
and provision of staking technology tools were just launched in the fourth quarter of 2022. Effective July 1, 2023, we do not provide
non-custodial staking tools to third parties.

 For
the year ended December 31, 2022, the Company generated revenues of $326,800 from GameFi business and revenues of $120,000 from operating
lease business. However, we discontinued our Mano game and the alSpace platform in November 2022 due to business reasons. As the game
was newly launched and not yet widely adopted by players, the discontinuance of the game did not impact on our business activities. The
Company did not generate revenues from operating lease business for the year ended December 31, 2023. Accordingly the board approved
dissolution of the subsidiaries which operated operating lease business in August 2023, and these subsidiaries closed dissolution in
December 2023.

 Cost of Sales

 Cost of revenues decreased by $501,500, or 64%,
from $782,600 for the year ended December 31, 2022 to $281,100 for the year ended December 31, 2023.

 For the year ended December 31, 2023, the cost
of revenues primarily consisted of IT expenses which were incurred to support our solo staking business. While for the year ended December
31, 2022, the cost of revenue primarily consisted of expenses which were incurred to design and develop our Mano game and the alSpace
platform.

 Gross Loss

 Gross loss for the year ended December 31, 2023
decreased by $100,700 or 30%, to $233,300 compared to gross loss of $334,000 for the year ended December 31, 2022 as a result of changes
in our operating business from operating Mano game to staking services.

 Total Operating Expenses

 Total operating expenses for the year ended December
31, 2023 decreased by $7,230,000 or 69%, to $3,261,900 from $10,491,900 for the year ended December 31, 2022. The changes in expenses
were primarily caused by impairment of goodwill, impairment of intangible assets, changes in fair value of digital assets, salary and
employee benefits and professional fees and other general and administrative expenses.

 Impairment of goodwill. For
the year ended December 31, 2022, the Company provided full impairment against goodwill arising from fresh accounting because of the underperformance
of the aircraft leasing business.

 Impairment of intangible assets. For
the year ended December 31, 2022, we recognized full impairment of $888,900 against intangible assets as we have discontinued the Mano
game and the alSpace platform, and we abandoned the related software in November 2022.

 Changes in fair value of digital assets.
 Effective on January 1, 2023, the Company early adopted ASU 2023-08 to measure digital assets at fair value. The Company refers
to the daily closing price published by Matrixport Cactus Custody as fair value. For the year ended December 31, 2023, the Company recorded
an increase of fair value of $1,721,900 in digital assets.

 Professional fees, general and administrative
and other expenses. The breakdown of Professional fees, general and administrative and other expenses was as the following
table:

 2023

 2022

 Consulting expenses

 $
 1,547,400

 $
 560,400

 Legal expenses

 351,800

 777,800

 Audit fee

 220,400

 220,800

 Rent

 94,000

 147,600

 Travel expenses

 205,800

 188,600

 Others

 668,500

 284,000

 Professional fees, general and administrative and other

 $
 3,087,900

 $
 2,179,200

 Professional fees, general and administrative
and other expenses increased by $908,700, or 42% to $3,087,900 in the year ended December 31, 2023 from $2,179,200 in the year ended December
31, 2022. The increase was primarily caused by (i) an increase of consulting expenses of $987,000 to support the solo-staking service
which was launched in the fourth quarter of 2022, and (ii) a decrease in legal expenses because the Company incurred higher legal expenses
in the year of 2022 for launch and discontinue of Mano game and the alSpace platform.

 Salaries and employee benefits. Salary
and employee benefits decreased by $517,800, or 26% to $1,509,700 in the year ended December 31, 2023 from $2,027,500 in the year ended
December 31, 2022. The decrease was primarily caused by resignation of management in aircraft operating lease business which did not generate
revenues in the year of 2023.

 For the year ended December 31, 2022, we reported other income of $1,478,800
from reversal of accounts and other payable, which the Company expected it would not make payments. We reported minimal other income of
$10,400 for the same period ended December 31, 2023.

 Loss
from dissolution of subsidiaries

 On
 August 24, 2023, per the recommendation of JMC's board of directors, the Company, as a holder of a majority of the voting
 stock of JMC, elected to approve the winding up and dissolution of JMC. In December 2023, JMC filed the voluntary petition for
 bankruptcy with the court and the court announced the effectiveness of the petition. JMC ceased providing aircraft advisory and
 management services upon winding up and the Company deconsolidated JMC and its subsidiaries in December 2023. The Company recorded a
 loss from dissolution of subsidiaries of $1,033,100 from deconsolidation of the subsidiaries.

 Income tax (expenses) benefits

 The Company recorded income tax expenses of $87,100 in the year ended December 31, 2023, or negative 1.90% of pre-tax loss, compared to
income tax benefits of $48,900, or 0.52% of pre-tax loss in the year ended December 31, 2022. The difference in the effective federal
income tax rate from the normal statutory rate in the year ended December 31, 2023 was primarily because the decrease in foreign income
tax receivable, the uncertain tax benefit reserve release due to the expiration of Statute of Limitations, and the full valuation allowance
on its deferred tax assets.

 In assessing the valuation of deferred tax assets, the Company considers
whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization
of deferred tax assets is dependent upon the generation of future taxable income or availability to carry back the losses to taxable income
during periods in which those temporary differences become deductible. The Company considered several factors when analyzing the need
for a valuation allowance including the Company's current three-year cumulative loss through December 31, 2023, the current year
operation forecast, the Company's recent filing for protection under Chapter 11 of the bankruptcy code, the operation uncertainty
of the Company's new business. Based on this analysis, the Company has concluded that a valuation allowance is necessary for its
U.S. and foreign deferred tax assets not supported by either future taxable income or availability of future reversals of existing taxable
temporary differences and has recorded a full valuation allowance on its deferred tax assets.

 In addition, the Company has closely monitored
the development of Pillar Two – Global Minimum Tax- introduced by the Organization for Economic Co-operation and Development ("OECD")
and the impact on the Company's effective tax rate. As of December 31, 2023, the Company expects no impact from the Pillar Two as
the Company's worldwide revenue is below the revenue threshold.

 Net Loss

 As a result of the foregoing, net loss for the
year ended December 31, 2023 decreased by $4,618,000 or 50%, to $4,680,200 from $9,298,200 for the year ended December 31, 2022.

 Liquidity and Capital Resources

 To date, we have financed our operating and investing
activities primarily through cash generated from operating activities and equity financing through private placements. As of December
31, 2023, the Company held cash of approximately $3.1 million, stable coins of approximately $0.3 million and digital assets of approximately
$7.7 million, which were easily convertible into cash over the market.

 On October 18, 2022, the Company closed a private
placement by offering 4,400,000 shares of common stock, at per share price of $1.0. The Company received gross proceeds of $4.4 million
from the private placement.

 On January 20, 2023 and February 15, 2023, the
Company closed private placements by offering 4,314,615 shares of common stock and 765,384 shares of common stock, respectively. The per
share price was $1.30. The received gross proceeds aggregating $6.6 million.

 For the year ended December 31, 2023 and 2022,
the Company reported net losses of approximately $4.7 million and $9.3 million, respectively, and cash flows of approximately $3.0 million
and $5.9 million used in operating activities. In addition, the Company had accumulated deficits of approximately $17.5 million and $13.4
million as of December 31, 2023 and 2022, respectively. These conditions raised substantial doubt about the Company's ability to
continue as a going concern.

 The Company's liquidity is based on its
ability to generate cash from operating activities and obtain financing from investors to fund its general operations and capital expansion
needs. The Company's ability to continue as a going concern is dependent on management's ability to successfully execute its
business plan, which includes increasing revenue while controlling operating cost and expenses to generate positive operating cash flows
and obtain financing from outside sources.

 As of December 31, 2023, the Company had working
capital of approximately $8.6 million, which is expected to support our operating and investing activities for the next 12 months.

 Given the financial condition of the Company and
its operating performance, the Company assesses current working capital is sufficient to meet its obligations for the next 12 months from
the issuance date of this report. Accordingly, management continues to prepare the Company's consolidated financial statements on
going concern basis.

 The preparation of the consolidated financial
statements in conformity with GAAP requires management to make estimates and assumptions that affect (i) the reported amounts of assets
and liabilities at the date of the financial statements, (ii) the disclosure of contingent assets and liabilities, and (iii) the reported
amounts of revenue and expenses during the reporting period. Actual results may differ from those estimates. Estimates and judgments are
used when accounting for the application of current value of the Company's assets held for sale, the amount and timing of future
cash flows associated with each asset that are used to evaluate whether assets are impaired, accounting for income taxes, and the amounts
recorded as allowances for doubtful accounts.

 Cash Flow

 The following table sets forth a summary of our
cash flows for the years ended December 31, 2023 and 2022 presented:

 2023

 2022

 Net cash used in operating activities

 $
 (3,001,400
)

 $
 (5,855,600
)

 Net cash used in investing activities

 (4,832,500
)

 (52,500
)

 Net cash provided by financing activities

 3,700,100

 5,791,000

 Net decrease in cash and cash equivalents

 (4,133,800
)

 (117,100
)

 Cash, cash equivalents, beginning of year

 7,380,700

 Cash, cash equivalents, end of year

 $
 3,129,800

 $

 Operating activities

 Net
 cash used in operating activities for the year ended December 31, 2023 was $3,001,400, primarily attributable to net loss of
 $4,680,200, adjusted for (a) non-cash items including an increase in fair value of $1,721,900 in digital assets, loss of $1,033,100
 from dissolution of subsidiaries and share-based compensation expenses to one non-employee of $237,700, and (b) changes in operating
 assets and liabilities including (i) a decrease of tax receivable of $1,095,600 as the Company received tax refund from tax
 authorities, and (ii) a decrease of prepaid expenses and other current assets because of amortization of directors' and
 officers' insurance.

 Net
cash used in operating activities for the year ended December 31, 2022 was $5,855,600, primarily attributable to net loss of $9,298,200,
adjusted for (a) non-cash items including impairment of digital assets of $4,688,600, impairment of intangible assets of $888,900, and
gain of $1,478,800 from reversal of accounts and other payables, and (b) changes in operating assets and liabilities including (i) a
decrease of stable coins of $821,000, and (ii) a decrease of accounts and accrued expenses of $1,391,100.

 Investing activities

 For the year ended December 31, 2023, the cash
flow used in investing activities was $4,832,500, which was primarily attributable to purchase of digital assets of $3,146,600, purchase
of stablecoins of $139,900, and investment in equity investees of $1,546,000.

 For the year ended December 31, 2022, the cash
flow used in investing activities was $52,500, which was primarily attributable to purchase of digital assets of $46,300 and acquisition
of a subsidiary at cost of $10,000.

 Financing activities

 For the year ended December 31, 2023, the cash
flow provided by financing activities was $3,700,100, which was primarily attributable to proceeds of $1,420,000 collected from investors
for subscription for the private placement that closed in February 2023, and proceeds of $2,280,100 advanced from investors for subscription
for the private placement closed in January 2024.

 For the year ended December 31, 2022, the cash
flow provided by financing activities was $5,791,000, which was primarily attributable to proceeds of $2,350,000 collected from investors
for subscription for the private placement that closed in October 2022, and proceeds of $3,441,000 advanced from investors for subscription
for the private placement closed in January and February 2023.

 Critical Accounting Policies, Judgments
and Estimates

 We prepare our consolidated financial statements
in accordance with U.S. GAAP, which requires our management to make estimates that affect the reported amounts of assets, liabilities
and disclosures of contingent assets and liabilities at the balance sheet dates, as well as the reported amounts of revenues and expenses
during the reporting periods. To the extent that there are material differences between these estimates and actual results, our financial
condition or results of operations would be affected. We base our estimates on our own historical experience and other assumptions that
we believe are reasonable after taking account of our circumstances and expectations for the future based on available information. We
evaluate these estimates on an ongoing basis.

 Our expectations regarding the future are based
on available information and assumptions that we believe to be reasonable, which together form our basis for making judgments about matters
that are not readily apparent from other sources. Since the use of estimates is an integral component of the financial reporting process,
our actual results could differ from those estimates. When reading our consolidated financial statements, you should consider our selection
of critical accounting policies, the judgment and other uncertainties affecting the application of such policies and the sensitivity of
reported results to changes in conditions and assumptions. Out of our significant accounting policies, which are described in Note 2—Summary
of Significant Accounting Policies of our consolidated financial statements included elsewhere in this Form F-4, certain accounting policies
are deemed "critical", as they require management's highest degree of judgment, estimates and assumptions, including
(i) digital assets, (ii) revenue recognition, and (iii) income tax.

 We consider an accounting estimate to be critical
if: (i) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate
was made, and (ii) changes in the estimate that are reasonably likely to occur from period to period or use of different estimates that
we reasonably could have used in the current period, would have a material impact on our financial condition or results of operations.

 We believe the following accounting estimates
involve the most significant judgments used in the preparation of our financial statements.

 Valuation allowance for deferred tax assets

 We account for income taxes using the liability
method in accordance with ASC 740, Income Taxes ("ASC 740"). Under this method, deferred tax assets and liabilities are determined
based on the differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be
in effect when the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in earnings. Deferred
tax assets are reduced by a valuation allowance through a charge to income tax expense when, in the opinion of management, it is more-likely-than-not
that a portion of or all of the deferred tax assets will not be realized.

 The valuation allowance is considered on an individual
entity basis. As of December 31, 2023 and 2022, valuation allowances on deferred tax assets are provided because we believe that it is
more-likely-than-not that certain of the subsidiaries will not be able to generate sufficient taxable income in the near future, to realize
the deferred tax assets carried-forwards.

 As of December 31, 2023 and 2022, the total valuation
allowance for deferred tax assets was approximately $12.2 million and $10.9 million, respectively.

 Item 7A. Quantitative and Qualitative Disclosures About Market
Risk.

 Disclosure under this item has been omitted pursuant
to the rules of the SEC that permit smaller reporting companies to omit this information.

 Item 8. Financial Statements and Supplementary Data.

 The financial statements required by this item
begin on page F-1 with the index to financial statements followed by the financial statements.

 Item 9. Changes in and Disagreements With Accountants
on Accounting and Financial Disclosure

 None

 Item 9A. Controls and Procedures

 Evaluation of Disclosure Controls and Procedures

 Under
the supervision and with the participation of our management, including our principal executive officer and principal financial
officer, as of the end of the period covered by this report, we conducted an evaluation of the effectiveness of the design and
operation of our disclosure controls and procedures, as defined in Rules 13a-15I and 15d-15(e) under the Securities Act of 1934. Our
disclosure controls and procedures are designed to provide reasonable assurance that the information required to be included in our
SEC reports is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, relating to
the Company, including our consolidated subsidiaries, and was made known to them by others within those entities, particularly
during the period when this report was being prepared. Based upon that evaluation, our management, with the participation of our
Chief Executive Officer and Chief Financial Officer, has concluded that, due to the material weakness described below, as of
December 31, 2023, our disclosure controls and
procedures were not effective. We will continue undertaking the remedial steps to address the material weakness in
our internal control over financial reporting as described below in the section titled "Management's Report on Internal
Control Over Financial Reporting".

 The management of the Company is responsible for
establishing and maintaining adequate internal control over financial reporting. The Company's internal control over financial reporting
is a process designed under the supervision of the Company's principal executive officer and principal financial officer to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of the Company's financial statements
for external purposes in accordance with generally accepted accounting principles. Because of its inherent limitations, internal control
over financial reporting may not prevent or detect misstatements. All internal control systems, no matter how well designed, have inherent
limitations. Therefore, even those systems determined to be effective can provide only reasonable assurances with respect to financial
statement preparation and presentation. Additionally, projections of any evaluation of effectiveness to future periods are subject to
the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures
may deteriorate.

 Management's Report on Internal Control
over Financial Reporting

 The management of the Company is responsible for
establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f)
under the Exchange Act. As of December 31, 2023, management assessed the effectiveness of the Company's internal control over financial
reporting based on the criteria for effective internal control over financial reporting established in "Internal Con–rol -
Integrated Framework," issued by the Committee of Sponsoring Organizations of the Treadway Commission (the "COSO criteria").
A Material weakness is a control deficiency (within the meaning of Public Company Accounting Oversight Board (United States) Auditing
Standard No. 2) or a combination of control deficiencies that result in more than a remote likelihood that a material misstatement of
the annual or interim financial statements will not be prevented or detected. Based on such assessment, management concluded that as of
December 31, 2023, our internal control over financial reporting was not effective. Management has identified the following material weakness:

 ineffective oversight of the
Company's internal control over financial reporting relating to our tax review control for complex transactions.

 the
lack of proficient personnel trained in US GAAP.

 We are implementing measures designed to improve
our internal control over financial reporting to remediate material weaknesses, including the following:

 We are in the process of enhancing
our tax review control related to unusual transactions that we may encounter, but that control has not operated for a sufficient time
to determine if the control was effective as of December 31, 2023; and

 The Company plans to enhance
the staffing and competency level within the accounting and finance department.

 Attestation Report of the Registered Public
Accounting Firm

 This Annual Report on Form 10-K does not include
an attestation report of the Company's independent registered public accounting firm regarding the effectiveness of the Company's
internal control over financial reporting, as such report is not required due to the Company's status as a smaller reporting company.

 Change in Internal Control over Financial Reporting

 There
have been no changes in the Company's internal controls over financial reporting during the fiscal year ended December 31,
2023, that have materially affected, or are reasonably likely to materially affect, the Company's internal control over
financial reporting.

 Item 9B. Other Information.

 None.

 Item 9C. Disclosure Regarding Foreign Jurisdictions
that Prevent Inspections.

 Not applicable.

 Item 10. Directors, Executive Officers and Corporate Governance.

 Directors, Executive Officers and Significant
Employees

 The
following table and text set forth the names and ages of our current directors, executive officers and significant employees as of the
date of this report. Our Board of Directors is
comprised of only one class. All of the directors will serve until the next annual meeting of stockholders or until their successors are
elected and qualified, or until their earlier death, retirement, resignation or removal. There are no family relationships among any of
the directors and executive officers. Our independent directors have received compensation in the form of cash for their services on the
Board.

 Name

 Age

 Position

 Yucheng Hu

 Chairman, President, Chief Executive Officer, and Director

 Qin (Carol) Wang

 Chief Financial Officer, Treasurer and Secretary

 Xiangchen (Steven) Gao

 Chief Operating Officer

 Siyuan Zhu (1)(2)

 Jianan Jiang (1)(3)

 Qin Yao (1)(4)

 (1)
 Independent Director

 (2)
 Chairperson of the Audit Committee
and Member of the Compensation Committee

 (3)
 Chairperson of the Compensation
Committee and Member of the Audit Committee

 (4)
 Member of the Audit Committee
and the Compensation Committee

 There are no arrangements or understandings between
our directors and executive officers and any other person pursuant to which any director or officer was or is to be selected as a director
or officer.

 Business Experience

 Executives

 Mr. Yucheng Hu, Chairman,
President and Chief Executive Officer. Mr. Yucheng Hu has been our president and chief executive officer since September 30, 2021,
and our director since October 1, 2021. Mr. Hu is the founder of Chengdu Quleduo Technology Co., Ltd., and has served as its Chief Executive
Officer since 2011. Mr. Hu is a successful entrepreneur with over 15 years of experience in the internet industry. Mr. Hu established
the Xiyou online mobile game platform (www.x52xiyou.com), which is a popular online gaming platform in China. Mr. Hu has also formed various
software programming studios, such as the Mengqu studio, and has developed various mini-programs for social media applications such as
the "click-and-play" application for instant on-line games access. Mr. Hu brings a wealth of management experience to the
Board, including several executive positions within the internet and online gaming industry.

 Ms. Qin (Carol) Wang,
Chief Financial Officer, Treasurer and Secretary. Ms. Qin (Carol) Wang has been our chief financial officer, secretary and treasurer
since September 30, 2021. Ms. Wang has been VP of Finance and advisor of Bit Digital, Inc. (Nasdaq: BTBT) from June 2020 to September
2021. Prior to that, Ms. Wang served as the finance controller and financial advisor of TD Holdings, Inc. (NASDAQ: GLG) from February
2018 to May 2020. Through July 2016 to January 2018, Ms. Wang served as a senior investment manager for Yikuan Asset Management Company.
Ms. Wang began her career at Ernst & Young where she served as a senior auditor from September 2012 to June 2015. She is skilled at
M&A transactions, US GAAP and IFRS financial reporting corporate financial management and planning. Ms. Wang holds a Master's
degree in Finance from Renmin University of China and a Bachelor's degree in Economics from Donghua University. Ms. Wang is a certified
public accountant and is a member of the Chinese Institute of Certified Public Accountants and a member of Association of International
Accountants.

 Mr. Xiangchen (Steven)
Gao, Chief Operating Officer. Mr. Gao has been our Chief Operating Officer since January 18, 2024. From 2022 to 2023, Mr. Xiangchen
Gao served as the Co-founder and Chief Operating Officer of Digital Element Co., Ltd. Before this, he held the position of Senior Investment
Manager at Fengshion Capital. Between 2019 and 2021, Mr. Gao was the Senior Strategic Manager at ByteDance. From 2016 to 2019, he worked
as a Senior Investment Manager at Baofeng Group (stock code: 300431). Mr. Gao possesses over eight years of experience in investment and
strategic operations. He received his Bachelor's degree in Economics from Renmin University of China in 2015.

 Non-Employee Directors

 Ms. Siyuan Zhu, Director.
Ms. Siyuan Zhu has been our director since October 1, 2021. Ms. Zhu is currently a senior finance manager of Asia Region of IAC (Shanghai)
Management Co., Ltd. since 2016. From 2013 to 2015, Ms. Zhu has served as a finance manager in IAC (Shanghai) Automotive Component Technology
Co., Ltd. Prior to 2013, Ms. Zhu held various positions at KPMG Huazhen for a total of seven years and served as a program manager from
2011 to 2013. Ms. Zhu has served as an independent director of TD Holdings, Inc. (NASDAQ: GLG) from May 2019 to April 2021. Ms. Zhu holds
a Bachelor's degree in Foreign Language and Literature from Shanghai International Studies University. Ms. Zhu is a certified public
accountant in China and has served as an independent director on another Nasdaq listed company, which, the Company believes, makes Ms.
Zhu qualified to be on the Board.

 Mr. Jianan Jiang, Director. Mr. Jianan
Jiang has been our director since October 1, 2021. Since February 2019, Mr. Jiang has been serving as the lead data scientist for Stori
Card in Washington, DC, which is a fast-growing Fintech company using Artificial Intelligence technology to provide better financial products
for the underserved community in Latin America. Prior to that, he worked as data analyst and data science manager for Capital One from
October 2014 to January 2019. Mr. Jiang served as co-founder and chief executive office of Schema Fusion LLC from May 2013 to September
2014. Mr. Jiang received his Bachelor's degree in Civil Engineering from Qingdao Technological University in 2008, and received
his Master of Science in Management Science and Engineering from Tongji University in 2011, and received his Master of Science in Engineering
and Technology Innovation Management from Carnegie Mellon University in 2013. The Board believes that Mr. Jiang brings a long history
of technical experience to the Board which qualifies him to serve on the Board.

 Ms. Qin Yao, Director. Ms. Qin Yao has
been our director since October 1, 2021. Ms. Yao is currently an information engineer at Tencent Holdings Co., Ltd (stock code: 00700),
a company listed on the Hong Kong Stock Exchange, and responsible for the products and market expansion of Tencent's industrial
Internet Sector since 2017. From 2010 to 2017, Ms. Yao served as an electronic information engineer in China United Network Communications
Co., Ltd. Ms. Yao has more than 10 years of investment experience in the field of cloud computing, big data, artificial intelligence and
technology information services. She also has profound knowledge of financial planning, financial budgeting and financial risk management
related to the cloud business. Ms. Yao holds a Bachelor's degree in Electronic Information Engineering from the University of Electronic
Science and Technology in Chengdu in 2004. The Board believes Ms. Yao brings a long history of product and market expansion experience
to the Board, which qualifies her to serve on the Board.

 Involvement in Certain Legal Proceedings

 To the best of our knowledge, during the past
ten years, none of our directors or executive officers were involved in any of the following: (1) any bankruptcy petition filed by or
against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two
years prior to that time; (2) any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic
violations and other minor offenses); (3) being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated,
of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his or her involvement
in any type of business, securities or banking activities; and (4) being found by a court of competent jurisdiction (in a civil action),
the Securities and Exchange Commission or the Commodities Futures Trading Commission to have violated a federal or state securities or
commodities law, and the judgment has not been reversed, suspended or vacated.

 Family Relationships and Arrangements

 There are no family relationships among any of
our directors or named executive officers. There are no arrangements or understandings with any other person under which our directors
and officers were elected or appointed as a director or named executive officer.

 Board Committees and Independence

 During the period between
January 1, 2023 through December 31, 2023, the board of directors held 4 meetings. During that period, the incumbent directors attended
all of the meetings of the Board of Directors and its committees on which he or she served that were held during the period in which he
or she was a director. The Company has an Audit Committee, a Compensation Committee and an Executive Committee of the Board of Directors,
each of which is discussed below. Our Board of Directors has determined that Audit Committee and Compensation Committee members are independent
under applicable NYSE and SEC rules for committee memberships.

 Board Independence. A
majority of the Board of Directors of the Company, consisting of Ms. Zhu, Mr. Jiang and Ms. Yao, are independent directors, as defined
in Section 803A of the NYSE American Company Guide. In addition, each of Ms. Zhu, Mr. Jiang and Ms. Yao are members of the Board's
Audit and Compensation.

 Audit Committee. The
Audit Committee operates under a charter adopted and approved by the board of directors, which is available on the Company's website
at  The Audit Committee meets with the Company's management
and its independent registered public accounting firm to review internal financial information, audit plans and results, and financial
reporting procedures. The current Audit Committee consists of Siyuan Zhu (Chair), Qin Yao, and Jianan Jiang. The board of directors has
determined that Siyuan Zhu, Qin Yao and Jianan Jiang are independent within the meaning of Sections 803A and 803B(2) of the NYSE American
Company Guide, and that Ms. Zhu is an "audit committee financial expert" within the meaning of Item 407(d)(5) of Regulation
S-K promulgated by the SEC. The Audit Committee held meetings during the fiscal year ended December 31, 2023.

 Compensation Committee. The
Compensation Committee assists the board of directors in discharging its responsibilities relating to compensation of the Company's
directors and officers and complying with disclosure requirements regarding such compensation, if and when required and in accordance
with applicable SEC and stock exchange rules and regulations. The Compensation Committee operates under a charter adopted and approved
by the board of directors, which is available on the Company's website at
The current Compensation Committee consists of Jianan Jiang (Chair), Siyuan Zhu, and Qin Yao. The board of directors has determined that
Siyuan Zhu, Jianan Jiang, and Qin Yao are independent within the meaning of Section 803A anI05(c) of the NYSE American Company Guide and
Rule 10C-1(b)(1) under the Securities Exchange Act of 1934, and a "non-employee director" as defined in Rule 16b-3 promulgated
under the Exchange Act. The Compensation Committee held 4 meetings during the fiscal year ended December 31, 2023.

 Nominating and Governance Committee.
The Company does not have a formal nominating committee. The independent directors separately consider and make recommendations to the
full board of directors regarding any candidate being considered to serve on the board of directors, and the full board of directors'
reviews and makes determination regarding such potential candidates. In light of this practice, which is similar to the practices of many
boards of directors that have a standing nominating committee, the board of directors believes it is unnecessary to formally establish
such a committee.

 Although the Company's
board of directors does not have a formal policy with respect to board of directors diversity, it strives to constitute the board of directors
with directors who bring to our Company a variety of perspectives, cultural sensitivity, life experiences, skills, expertise, and sound
business understanding and judgment derived from a broad range of business, professional, community involvement, and finance experiences,
as well as directors who have skills and experience that are relevant and helpful to the Company's industry and operations and who
have the desire and capacity to actively serve.

 Executive Committee. The
Executive Committee has the authority to acquire, dispose of and finance investments for the Company and execute contracts and agreements,
including those related to the borrowing of money by the Company, and generally exercises all other powers of the board of directors except
for those which require action by all of the directors or the independent directors under the Certificate of Incorporation or the Bylaws
of the Company, or under applicable law or stock exchange requirements. As of December 31, 2023, the current Executive Committee consisted
of only two (2) directors, Yucheng Hu and Yunheng (Brad) Zhang. The Executive Committee did not meet during the fiscal year ended December
31, 2023.

 Indemnification Agreements

 The Company executed a standard form of indemnification
agreement ("Indemnification Agreement") with each of its Board members and executive officers (each, an "Indemnitee").

 Pursuant to and subject to the terms, conditions
and limitations set forth in the Indemnification Agreement, the Company agreed to indemnify each Indemnitee, against any and all expenses
incurred in connection with the Indemnitee's service as our officer, director and or agent, or is or was serving at the Company's
request as a director, officer, employee, agent or advisor of another corporation, partnership, joint venture, trust, limited liability
company, or other entity or enterprise but only if the Indemnitee acted in good faith and in a manner he reasonably believed to be in
or not opposed to our best interest, and in the case of a criminal proceeding, had no reasonable cause to believe that his conduct was
unlawful. In addition, the indemnification provided in the indemnification agreement is applicable whether or not negligence or gross
negligence of the Indemnitee is alleged or proven. Additionally, the Indemnification Agreement establishes processes and procedures for
indemnification claims, advancement of expenses and costs and contribution obligations.

 Delinquent Section 16 Filings.

 Section 16(a) of the Exchange Act requires the
Company's directors and officers and persons who own more than ten percent of a registered class of the Company's equity securities
to file with the SEC initial reports of ownership and reports of changes in ownership of common stock and other equity securities of the
Company. Officers, directors and greater than ten percent beneficial owners are required by SEC regulations to furnish the Company with
copies of all Section 16(a) reports they file. Based solely upon a review of the copies of such reports furnished to the Company
and written representations that no other reports were required, the Company believes the Company's officers, directors and greater
than ten percent beneficial owners complied with all Section 16(a) filing requirements applicable to them in the fiscal year ended December
31, 2022.

 Code of Ethics.

 The Company has adopted a code of business conduct
and ethics, or the "code of conduct." The code of conduct applies to all of the Company's employees, including its executive
officers, and non-employee directors, and it qualifies as a "code of ethics" within the meaning of Section 406 of the Sarbanes-Oxley
Act of 2002 and the rules promulgated thereunder. A copy of the code of conduct is available on the Company's website at
or upon written request to the Investor Relations Department, 3000 El Camino Real, Bldg. 4, Suite 200, Palo Alto, California
94306. To the extent required by law, any amendments to, or waivers from, any provision of the code of conduct will be promptly disclosed
publicly. To the extent permitted by such requirements, the Company intends to make such public disclosure on its website in accordance
with SEC rules.

 Item 11. Executive Compensation.

 The following table sets forth information concerning
all forms of compensation earned by our named executive officers during the year ended December 31, 2023 for services provided to the
Company and its subsidiary.

 SUMMARY COMPENSATION TABLE

 Name and Position

 Year

 Salary
 ($)

 Bonus
 ($)

 All Other Compensation
 ($)

 Total
 ($)

 Yucheng Hu,

 2023

 192,00

 -

 -

 192,000

 Chairman, President and Chief Executive Officer(1)

 2022

 48,000

 -

 -

 48,000

 Yunheng (Brad) Zhang

 2023

 117,000

 -

 -

 117,000

 Former Chief Operating Officer(2)

 2022

 68,500

 -

 -

 68,500

 Qin (Carol) Wang,

 2023

 -

 -

 Chief Financial Officer, Treasurer and Secretary(3)

 2022

 -

 -

 (1)
 Mr. Hu was appointed as President
and Chief Executive Officer on September 30, 2021.

 (2)
 Mr. Zhang resigned as Chief
Operating Officer on January 15, 2024.

 (3)
 Ms. Wang was appointed as Chief
Financial Officer, Treasurer and Secretary on September 30, 2021.

 Narrative Disclosure to Summary Compensation Table

 The compensation paid to our named executive officers
consists solely of base salary plus cash bonus payments, if any. No named executive officer of the Company receives equity compensation.

 Named Executive Officer Employment Agreements

 Yucheng Hu. In
connection with Mr. Hu's appointment as Chairman, President and Chief Executive Officer, and as an executive director of the Company,
Mr. Hu entered into the Company's standard form of employment agreement, effective as of October 1, 2021, and amended on December
16, 2021. In addition, Mr. Hu shall be eligible to receive an annual target cash bonus and equity-based incentive compensation, as determined
by the board of directors and the Compensation Committee of the board of directors, employee benefits as may be determined by the Company
in its sole discretion, and reimbursement of expenses in the course and scope of authorized Company business. On October 25, 2022, the
Board approved the increase to Mr. Hu's annual base salary from $1.00 to $192,000, effective as of October 16, 2022. Mr. Hu's
employment is at-will and may be terminated at any time for any reason.

 Yunheng
(Brad) Zhang. In connection with Mr. Zhang's appointment as Chief Operating Officer, and as an executive director of the Company,
Mr. Zhang entered into the Company's standard form of employment agreement, dated October 25, 2022, for a term of three (3) years,
which provides for an annual base salary of $150,000, effective as of October 16, 2022. In addition, Mr. Zhang shall be eligible to receive
an annual target cash bonus and equity-based incentive compensation, as determined by the board of directors and the Compensation Committee
of the board of directors, employee benefits as may be determined by the Company in its sole discretion, and reimbursement of expenses
in the course and scope of authorized Company business. On January 15, 2024, Mr. Zhang resigned
as director and chief operating officer of the Company, effective immediately. In connection with Mr. Zhang's resignation, Mr.
Zhang and the Company entered into a termination agreement, pursuant to which the Company and Mr. Zhang mutually agreed to terminate
Mr. Zhang's employment agreement.

 Qin (Carol) Wang.
In connection with Ms. Wang's appointment as Chief Financial Officer, Company Secretary and Treasurer of the Company, Ms. Wang entered
into the Company's standard form of employment agreement, effective as of October 1, 2021, for a term of three (3) years, which
provides for an annual base salary of $120,000. In addition, Ms. Wang shall be eligible to receive an annual target cash bonus and equity-based
incentive compensation, as determined by the board of directors and the Compensation Committee of the board of directors, employee benefits
as may be determined by the Company in its sole discretion, and reimbursement of expenses in the course and scope of authorized Company
business.

 On
January 18, 2024, the Company entered into the standard form of employment agreement with Mr. Xiangchen (Steven) Gao
("Employment Agreement") as our chief operating officer. Pursuant to the terms of the employment agreement, Mr. Gao has
an annual base salary of $48,000 and is eligible to receive annual bonus and equity compensation, subject to the approval of the
board of directors upon recommendation from the compensation committee, employee benefits as may be determined by the Company in its
sole discretion, and reimbursement of expenses in the course and scope of authorized Company business. In addition, the board of
directors has granted 24,000 Restricted Stock Units ("RSUs") pursuant to the Restricted Stock Unit Award Agreement to
Mr. Gao to be settled in shares of common stock of the Company under the Company's Amended and Restated 2021 Equity Incentive
Plan. The RSUs will
vests in four equal installments on February 28, 2024, May 30, 2024, August 31, 2024 and November 30, 2024. The term of the
employment agreement will be for a period of one (1) year, after which the employment agreement shall continue on an at-will
basis.

 Outstanding Equity Awards at Fiscal Year-End

 On December 29, 2021, our shareholders approved
our 2021 Equity Incentive Plan ("2021 Plan"). The 2021 Plan authorizes the issuance of awards for up to 1,100,000 shares of
our common stock in the form of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock units,
restricted stock awards and unrestricted stock awards to officers, directors and employees of, and consultants and advisors to, the Company
or its affiliates. On December 29, 2023, our shareholders approved Mega Matrix Corp. Amended and Restated 2021 Equity Incentive Plan (the
"Amended Plan"), which increased the number of shares of shares of Common Stock that may be authorized for grant pursuant
to awards under the 2021 Plan by 480,000 shares, from 1,100,000 shares to 1,580,000 shares, subject to adjustment as provided for in the
Amended Plan. No awards were granted under the Amended Plan during fiscal year ended December 31, 2023.

 As of December 31, 2023,
there are no outstanding options, stock appreciation rights or long-term incentive awards outstanding.

 Director Compensation

 Director Compensation Table

 Below is summary of compensation accrued or paid
to our non-executive directors during fiscal year ended December 31, 2023. Mr. Hu, our chairman, chief executive officer and president,
Mr. Zhang., our former Chief Operating Officer and director, received no compensation for their service as directors and are not included
in the table. The compensation Mr. Hu and Mr. Zhang received as an employee of the Company is included in the section titled "Executive
Compensation."

 Name

 Year

 Fees

Earned
 or
 Paid in
 Cash
 ($)

 Stock
 Awards(2)
 ($)

 Option
 Awards(3)
 ($)

 All Other
 Compensation
 ($)

 Total
 ($)

 Siyuan Zhu(1)

 2023

 $

 -

 -

 -

 $

 2022

 $

 -

 -

 -

 $

 Jianan Jiang(1)

 2023

 $

 -

 -

 -

 $

 2022

 $

 -

 -

 -

 $

 Qin Yao (1)

 2023

 $

 -

 -

 -

 $

 2022

 $

 -

 -

 -

 $

 (1)
 Appointed on October 1, 2021.

 Item 12. Security Ownership of Certain
Beneficial Owners and Management and Related Stockholder Matters.

 The following table sets forth information regarding
the beneficial ownership of the Company's Common Stock as of March 1, 2024 by: (i) each person or entity that is known to the Company
to own beneficially more than five percent (5%) of the outstanding shares of the Company's Common Stock; (ii) each director of the
Company; (iii) each named executive officer; and (iv) all directors and named executive officers of the Company as a group. As of
March 1, 2024, we had a total of 35,874,631 shares of common stock issued and outstanding.

 Under the rules and regulations of the SEC, a person is a "beneficial
owner" of a security if that person has or shares "voting power," which includes the power to vote or to direct the
voting of the security, or "investment power," which includes the power to dispose of or to direct the disposition of the
security or has the right to acquire such powers within 60 days.

 Name(1)

 Shares Beneficially Owned

 Percentage of Ownership(5)

 Officers and Directors

 Yucheng Hu, Director,
 Chairman, President and Chief Executive Officer(2)

 5,713,700

 15.87
 %

 Yunheng (Brad) Zhang, Former
 Director, Former Chief Operating Officer(3)

 -

 -

 Qin (Carol) Wang, Chief
 Financial Officer, Company Secretary and Treasurer(4)

 6,000

 *

 Xiangchen (Steven) Gao, Chief
 Operating Officer

 6,000

 *

 Jianan Jiang, Director

 -

 -

 Siyuan Zhu, Director

 -

 -

 Qin Yao, Director

 -

 -

 All directors and executive officers as a group (6 persons)

 5,725,700

 15.90
 %

 *
 Less than 1%

 (1)

 Unless otherwise indicated, the business address of each of the individuals is c/o Mega Matrix Corp., 3000 El Camino Real, Bldg. 4, Suite 200, Palo Alto, California 94306.

 (2)

 Includes 120,000 shares of common stock and issuable upon exercise of stock options and settlement of vested RSUs.

 (3)

 Mr. Zhang resigned as Chief Operating Officer on January 15, 2024.

 (4)

 Includes 6,000 shares of common stock and issuable upon exercise of stock options and settlement of vested RSUs.

 (5)

 Except as indicated in the footnotes to this table, the stockholders named in the table are known to the Company to have sole voting and investment power with respect to all shares of Common Stock shown as beneficially owned by them, subject to community property laws where applicable. Beneficial ownership of shares is determined in accordance with the rules of the SEC and generally includes any shares over which a person exercises sole or shared voting or investment power, or of which a person has the right to acquire ownership within sixty (60) days after February 15, 2024.

 Item 13. Certain Relationships and Related Transactions,
and Director Independence.

 Transactions with Related Parties

 The Company did not enter into any related party
transaction required to be disclosed under Item 404 of Regulation S-K.

 Director Independence

 A majority of our Board of Directors are independent
directors, see the discussion above under the section "Item 10. Directors, Executive Officers and Corporate Governance–Director
Independence."

 Item 14. Principal Accountant Fees and Services.

 For the years ended December 31, 2023 and 2022,
the Company's independent registered public accounting firm was Audit Alliance LLP ("AA").

 Fees Paid to Principal Independent Registered
Public Accounting Firm

 The aggregate fees billed by our independent registered
public accounting firms, for the years ended December 31, 2023 and 2022 are as follows:

 2023

 2022

 Audit fees(1)

 $
 220,350

 $
 220,800

 Audit related fees(2)

 -

 -

 Tax fees(3)

 -

 -

 All other fees(4)

 -

 -

 Total

 $
 220,350

 $
 220,800

 (1)
 Audit fees represent fees for
professional services provided in connection with the audit of our annual financial statements and the review of our quarterly financial
statements and those services normally provided in connection with statutory or regulatory filings or engagements including comfort letters,
consents and other services related to SEC matters. This information is presented as of the latest practicable date for this annual report.

 (2)
 Audit related fees represent fees for assurance and related services
 that are reasonably related to the performance of the audit or review of our financial statements and not reported above under
 "Audit Fees." No such fees were incurred during the fiscal years ended December 31, 2023 and 2022.

 (3)
 Our independent registered public
accounting firms did not provide us with tax compliance, tax advice or tax planning services. No such fees were incurred during the fiscal
years ended December 31, 2023 or 2022.

 (4)
 All other fees include fees
billed by our independent registered public accounting firms for products or services other than as described in the immediately preceding
three categories. No such fees were incurred during the fiscal years ended December 31, 2023 or 2022.

 Audit Committee Pre-Approval Policies and Procedures.
The retainer agreements between the Company and the independent public accounting firms setting forth the terms and conditions of and
estimated fees to be paid to the independent public accounting firms for audit and tax return preparation services were pre-approved by
the Audit Committee at the beginning of the respective engagements. Pursuant to its charter, the Audit Committee's policy is to
pre-approve all audit and non-audit services provided by the independent public accounting firm, except as may be permitted by applicable
law. These services may include audit services, audit-related services, tax services and other services. Pre-approval is generally provided
for up to one year and any pre-approval is detailed as to the particular service or category of services and is generally subject to a
specific budget. The Audit Committee has delegated pre-approval authority to its Chair when expedition of services is necessary. The independent
public accounting firm and management are required to periodically report to the full Audit Committee regarding the extent of services
provided by the independent public accounting firm in accordance with this pre-approval, and the fees for the services performed to date.
None of the services rendered by the independent public accounting firm in 2023 or 2022 were rendered pursuant to the de minimis exception
established by the SEC, and all such services were pre-approved by the Audit Committee.

 Item 15. Exhibits, Financial Statements
Schedules.

 (a) The following documents are filed as part
of this annual report on Form 10-K:

 (1) Financial Statements

 The following financial statements of the Company,
and the Reports of Independent Registered Public Accounting Firms, are included at the end of this report beginning on page F-1:

 Page

 Report of Independent Registered Public Accounting Firm (Audit Alliance LLP; Singapore, Singapore; PCAOB ID#3487)

 Consolidated Balance Sheets as of December 31, 2023 and 2022

 Consolidated Statements of Operations and Comprehensive Loss for the Years Ended December 31, 2023 and 2022

 Consolidated
 Statements of Changes in Equity for the Years Ended December 31, 2023 and 2022

 Consolidated Statements of Cash Flows for the Years Ended December 31, 2023 and 2022

 Notes to the Consolidated Financial Statements

 (2) Financial Statement Schedules

 All schedules have been omitted because the required
information is included in the financial statements or notes thereto or because they are not required.

 (3) Exhibits

 The exhibits required by Item 601 of Regulation
S-K are listed in subparagraph (b) below.

 (b) Exhibits:

 The following exhibits are filed as part of this report:

 Exhibit No.

 Description

 2.1

 Joint Chapter 11 Plan of Reorganization of AeroCentury Corp. and Its Debtor Affiliates. (Incorporated by reference to Exhibit A of the Order of the Bankruptcy Court, as incorporated herein by reference to Exhibit 2.1 to the registrant's Report on Form 8-K filed with the SEC on August 31, 2021).

 2.2

 Agreement and Plan of Merger by and between Mega Matrix Corp. and MarsProtocol Inc., dated December 7, 2022 (Incorporated by reference to Exhibit 2.1 to the registrant's Report on Form 8-K filed with the SEC on December 7, 2022).

 2.3

 Amended and Restated Agreement and Plan of Merger by and between Mega Matrix Corp. and MarsProtocol Inc., dated April 14, 2023 (Incorporated by reference to Exhibit 2.1 to the registrant's Report on Form 8-K filed with the SEC on April 17, 2023).

 2.4

 Second Amended and Restated Agreement and Plan of Merger by and between Mega Matrix Corp., Mega Matrix Inc. and MPU Merger Sub, Inc., dated December 26, 2023 (Incorporated by reference to Exhibit 2.1 to the registrant's Report on Form 8-K filed with the SEC on December 27, 2023).

 3.1.1

 Second Amended and Restated Certificate of Incorporation of AeroCentury Corp (Incorporated herein by reference to Exhibit 3.1 to the registrant's Report on Form 8-K filed with the SEC on October 1, 2021).

 3.1.2

 Certificate of Amendment to the Certificate of Incorporation of AeroCentury Corp. (Incorporated herein by reference to Exhibit 3.1 to the registrant's Report on Form 8-K filed with the SEC on December 29, 2021).

 3.1.3

 Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of AeroCentury Corp. (Incorporated herein by reference to Exhibit 3.1 to the registrant's Report on Form 8-K filed with the SEC on March 25, 2022)

 3.2

 Third Amended and Restated Bylaws of AeroCentury Corp (Incorporated herein by reference to Exhibit 3.2 to the registrant's Report on Form 8-K filed with the SEC on March 25, 2022).

 3.3

 Fourth Amended and Restated Bylaws of Mega Matrix Corp. (Incorporated herein by reference to Exhibit 3.1 to the registrant's Report on Form 8-K filed with the SEC on December 18, 2023).

 4(vi)

 Description of Securities (Incorporated by reference to Exhibit 4(vi) to the registrant's Report on Form 10-K filed with the SEC on March 30, 2022).

 4.1

 Form of Warrant Certificate (Incorporated herein by reference to Exhibit 4.1 to the registrant's Report on Form 8-K filed with the SEC on January 18, 2024).

 10.1§

 Plan Sponsor Agreement, dated as of August 16, 2021, by and among AeroCentury Corp., JetFleet Holding Corp., and JetFleet Management Corp. and Yucheng Hu, Hao Yang, Jing Li, Yeh Cheng, Yu Wang, TongTong Ma, Qiang Zhang, Yanhua Li, and Yiyi Huang. (Incorporated herein by reference to Exhibit 10.1 to the registrant's Report on Form 8-K filed with the SEC on October 1, 2021).

 10.2§

 Securities Purchase Agreement, dated as of September 30, 2021, by and among AeroCentury Corp, the Plan Sponsor, and Yucheng Hu, in the capacity as the representative for the Plan Sponsor. (Incorporated herein by reference to Exhibit 10.2 to the registrant's Report on Form 8-K filed with the SEC on October 1, 2021).

 10.3§

 Series A Preferred Stock Purchase Agreement, dated as of September 30, 2021, by and between JetFleet Holding Corp. and AeroCentury Corp. (Incorporated herein by reference to Exhibit 10.3 to the registrant's Report on Form 8-K filed with the SEC on October 1, 2021).

 10.4

 Form of Independent Director Agreement (Incorporated herein by reference to Exhibit 10.4 to the registrant's Report on Form 8-K filed with the SEC on October 1, 2021).

 10.5+

 Form of Employment Agreement (Incorporated herein by reference to Exhibit 10.5 to the registrant's Report on Form 8-K filed with the SEC on October 1, 2021).

 10.6+

 Employment Agreement by and between AeroCentury Corp and Florence Ng, dated as of October 1, 2021 (Incorporated herein by reference to Exhibit 10.6 to the registrant's Report on Form 8-K filed with the SEC on October 1, 2021).

 10.7

 Alspace Metaverse Project Entrusted Development Agreement between Feng Yue Technology Limited and AeroCentury Corp., dated as of October 1, 2021 (Incorporated herein by reference to Exhibit 10.10 to the registrant's Report on Form 10-K filed with the SEC on March 30, 2022).

 10.8+

 Amendment to Employment Agreement by and between AeroCentury Corp. and Florence Ng, dated as of November 1, 2021 (Incorporated herein by reference to Exhibit 10.1 to the registrant's Report on Form 8-K filed with the SEC on November 4, 2021).

 10.9+

 Amendment to Employment Agreement by and between AeroCentury Corp and Yucheng Hu, dated as of December 16, 2021 (Incorporated herein by reference to Exhibit 10.1 to the registrant's Report on Form 8-K filed with the SEC on December 17, 2021).

 10.10

 2021 Equity Incentive Plan (Incorporated herein by reference to Exhibit 10.1 to the registrant's Report on Form 8-K filed with the SEC on January 3, 2022).

 10.11+

 Second Amendment to Employment Agreement by and between AeroCentury Corp. and Florence Ng, dated as of March 25, 2022 (Incorporated herein by reference to Exhibit 10.1 to the registrant's Report on Form 8-K filed with the SEC on March 25, 2022).

 10.15+

 Termination Agreement by and between Mega Matrix Corp. and Florence Ng, dated September 16, 2022 (Incorporated herein by reference to Exhibit 10.1 to the registrant's Report on Form 8-K filed with the SEC on September 21, 2022).

 10.16

 Consulting Agreement by and between Mega Matrix Corp. and Florence Ng, dated September 16, 2022 (Incorporated herein by reference to Exhibit 10.2 to the registrant's Report on Form 8-K filed with the SEC on September 21, 2022).

 10.17

 Consulting Agreement by and between Mega Matrix Corp. and FNC Advisory Limited, dated September 16, 2022 (Incorporated herein by reference to Exhibit 10.3 to the registrant's Report on Form 8-K filed with the SEC on September 21, 2022).

 10.18

 Form of Securities Purchase Agreement, dated September 29, 2022 (Incorporated herein by reference to Exhibit 10.1 to the registrant's Report on Form 8-K filed with the SEC on September 30, 2022).

 10.19

 Form of Securities Purchase Agreement, dated December 23, 2022 (Incorporated herein by reference to Exhibit 10.1 to the registrant's Report on Form 8-K filed with the SEC on December 27, 2022).

 10.20

 Shareholders Agreement dated March 1, 2023 (Incorporated herein by reference to Exhibit 10.1 to the registrant's Report on Form 8-K filed with the SEC on March 7, 2023).

 10.21

 Termination Agreement between Bit Digital Singapore Pte Ltd., Saving Digital Pte Ltd., and Marsprotocol Technologies Pte Ltd. (Incorporated by reference to Exhibit 10.1 to Form 8-K filed on August 9, 2023).

 10.22

 Share Exchange Agreement dated January 7, 2024 (Incorporated by reference to Exhibit 10.1 to Form 8-K filed on January 8, 2024).

 10.23

 Shareholders Agreement dated January 7, 2024 (Incorporated by reference to Exhibit 10.2 to Form 8-K filed on January 8, 2024).

 10.24

 Form of Unit Subscription Agreement (Incorporated by reference to Exhibit 10.1 to Form 8-K filed on January 18, 2024).

 10.25+

 Termination Agreement between the Company and Yunheng (Brad) Zhang, dated as of January 15, 2024 (Incorporated by reference to Exhibit 10.1 to Form 8-K filed on January 19, 2024).

 10.26+

 Form of Restricted Stock Unit Award Agreement under the 2021 Amended and Restated Equity Incentive Plan (Incorporated by reference to Exhibit 10.3 to Form 8-K filed on January 19, 2024).

 21.1

 Subsidiaries of Mega Matrix Corp.

 23.1

 Consent of Audit Alliance LLP, Independent Registered Public Accounting Firm

 31.1

 Certification of Yucheng Hu, Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 31.2

 Certification of Qin (Carol) Wang, Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 32.1*

 Certification of Yucheng Hu, Chief Executive Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 32.2*

 Certification of Qin (Carol) Wang, Chief Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 Clawback Policy

 101.INS

 101.SCH

 101.CAL

 101.DEF

 101.LAB

 101.PRE

 *
 These certificates are furnished
to, but shall not be deemed to be filed with, the SEC.

 §
 Schedules and other similar
attachments have been omitted pursuant to Item 601(b)(2) of Regulation S-K promulgated by the SEC. The signatory hereby undertakes to
furnish supplemental copies of any of the omitted schedules and attachments upon request by the SEC.

 +
 Management contract or compensatory
plan or arrangement.

 In accordance with Item 601
of Regulation S-K, certain portions of this exhibit will be omitted because they are not material and would likely cause competitive
harm to the registrant if disclosed. The registrant agrees to provide an unredacted copy of the exhibit on a supplemental basis to the
SEC or its staff upon request.

 Item 16. Form 10-K Summary.

 Not applicable.

 SIGNATURES

 Pursuant to the requirements of Section 13 or
15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

 Mega Matrix Corp.

 Dated: March 18, 2024

 By:

 /s/ Yucheng Hu

 Yucheng Hu

 Chief Executive Officer

 Pursuant to the requirements of the Securities
Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities
indicated.

 Signature

 Title

 Date

 /s/
 Yucheng Hu

 Chairman of the Board,
 Chief Executive Officer and President

 March

 Yucheng
 Hu

 (Principal
 Executive Officer)

 /s/
 Qin (Carol) Wang

 Chief Financial Officer

 March

 Qin
 (Carol) Wang

 ( Principal
 Financial and Accounting Officer)

 /s/
 Jianan Jiang

 March

 Jianan
 Jiang

 /s/
 Qin Yao

 March

 Qin
 Yao

 /s/
 Siyuan Zhu

 March

 Siyuan
 Zhu

 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 To the Board of Directors and Shareholders
of

 Mega Matrix Corp.

 Opinion on the Financial Statements

 We have audited the
accompanying consolidated balance sheets of Mega Matrix Corp. and its subsidiaries (collectively, the "Company") as of
December 31, 2023 and 2022, the related consolidated statements of operations and comprehensive loss, changes in stockholders'
equity, and cash flows for each of the two years in the period ended December 31, 2023, and the related notes (collectively referred
to as the "financial statements"). In our opinion, the consolidated financial statements present fairly, in all material
respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash
flows for each of the two years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in
the United States of America.

 Restatements of Previously Issued
Financial Statements

 As discussed in Note 2 to the consolidated
financial statements, the Company has restated its consolidated financial statements as of December 2022 and for the year ended December
31, 2022 to correct certain classifications.

 Basis for Opinion

 These financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements
based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB)
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We conducted our audits in accordance with
the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have,
nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain
an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of
the Company's internal control over financial reporting. Accordingly, we express no such opinion.

 Our audits included performing procedures
to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide
a reasonable basis for our opinion.

 Critical Audit Matter

 Critical audit matters
are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to
the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our
especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

 /s/ Audit Alliance LLP

 Audit Alliance LLP (PCAOB ID 3487)

 Singapore, March 18, 2024

 We have served as the Company's auditor
since 2021.

 F- 1

 CONSOLIDATED BALANCE SHEETS

except for share and per share data, unless otherwise stated)

 2023

 2022

 ASSETS

 Current Assets:

 Cash and cash equivalents

 $
 3,129,800

 $

 Stable coins

 254,400

 Digital assets

 7,696,700

 459,300

 Taxes receivable

 -

 1,095,600

 Prepaid expenses and other assets

 489,700

 761,300

 Total current assets

 11,570,600

 12,551,800

 Non-current Assets:

 Long-term investments

 1,770,800

 -

 Total non-current assets

 1,770,800

 -

 Total assets

 $
 13,341,400

 $
 12,551,800

 LIABILITIES AND EQUITY

 Current liabilities:

 Accounts payable and accrued expenses

 $
 185,400

 $
 254,700

 Accrued payroll

 -

 132,700

 Income taxes payable

 1,100

 18,500

 Subscription advanced from the shareholders

 2,755,100

 5,184,000

 Total liabilities

 2,941,600

 5,589,900

 Commitments and contingencies (Note 11)

 Equity:

 Preferred stock, $ 0.001 par value, 2,000,000 shares authorized, no shares issued and outstanding

 -

 -

 Common stock, $ 0.001 par value, 40,000,000 and 40,000,000 shares authorized, 31,724,631 and 26,484,055 shares outstanding at December 31, 2023 and 2022, respectively

 31,800

 26,500

 Paid-in capital

 27,822,200

 21,372,100

 Accumulated deficit

 ( 17,454,200
)

 ( 13,420,400
)

 Total Mega Matrix Corp. Stockholders' Equity

 10,399,800

 7,978,200

 Non-controlling interests

 -

 ( 1,016,300
)

 Total equity

 10,399,800

 6,961,900

 Total liabilities and equity

 $
 13,341,400

 $
 12,551,800

 The accompanying notes are an integral part of
these consolidated financial statements.

 F- 2

 CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS

except for share and per share data, unless otherwise stated)

 2023

 2022

 Revenues:

 Revenue from solo staking

 $
 37,800

 $
 1,800

 Revenue from provision of staking technology tools

 10,000

 -

 Gamefi revenue

 -

 326,800

 Operating lease revenue

 -

 448,600

 Cost of revenues

 ( 281,100
)

 ( 782,600
)

 Gross loss

 ( 233,300
)

 ( 334,000
)

 Operating expenses (income):

 Professional fees, general and administrative and other

 3,087,900

 2,179,200

 Salaries and employee benefits

 1,509,700

 2,027,500

 Insurance

 345,700

 371,800

 Marketing expenses

 28,000

 -

 IT expenses

 12,500

 431,000

 Impairment of digital assets

 -

 78,900

 Changes in fair value of digital assets

 ( 1,721,900
)

 -

 Interest

 -

 Other taxes

 -

 6,000

 Impairment of intangible assets

 -

 888,900

 Impairment of goodwill

 -

 Reversal of bad debt expense

 -

 ( 300,000
)

 3,261,900

 10,491,900

 Loss from operations

 ( 3,495,200
)

 ( 10,825,900
)

 Other income (expenses):

 Share of equity loss in an equity method investee

 ( 75,200
)

 -

 10,400

 Loss from dissolution of subsidiaries

 ( 1,033,100
)

 -

 Total other (expenses) income, net

 ( 1,097,900
)

 Loss from operations before income tax

 ( 4,593,100
)

 ( 9,347,100
)

 Income tax (expenses) benefits

 ( 87,100
)

 48,900

 Net loss and comprehensive loss

 $
 ( 4,680,200
)

 $
 ( 9,298,200
)

 Less: Net loss and comprehensive loss attributable to non-controlling interests

 615,800

 832,200

 Net loss and comprehensive loss attributable to Mega Matrix Corp.'s shareholders

 $
 ( 4,064,400
)

 $
 ( 8,466,000
)

 Loss per share:

 Basic

 $
 ( 0.13
)

 $
 ( 0.37
)

 Diluted

 $
 ( 0.13
)

 $
 ( 0.37
)

 Weighted average shares used in loss per share computations:

 Basic

 31,323,124

 22,988,165

 Diluted

 31,323,124

 22,988,165

 The accompanying notes are an integral part of
these consolidated financial statements.

 F- 3

 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

 Mega Matrix Corp. Stockholder's
 Equity

 Common Stock

 Non-

 Number of
 Stocks

 Amount

 Paid-in
 Capital

 Accumulated

 Deficits

 Controlling
 Interests

 Total

 Balance, December 31, 2021

 22,084,055

 $
 22,100

 $
 16,982,700

 $
 ( 4,954,400
)

 $
 ( 237,100
)

 $
 11,813,300

 Issuance of common stocks pursuant to private placement

 4,400,000

 4,400

 4,395,600

 -

 -

 4,400,000

 Share based compensation

 -

 -

 -

 -

 53,000

 53,000

 Acquisition of a subsidiary under common control

 -

 -

 ( 6,200
)

 -

 -

 ( 6,200
)

 -

 -

 -

 ( 8,466,000
)

 ( 832,200
)

 ( 9,298,200
)

 Balance, December 31, 2022

 26,484,055

 $
 26,500

 $
 21,372,100

 $
 ( 13,420,400
)

 $
 ( 1,016,300
)

 $
 6,961,900

 Cumulative-effect adjustment of opening balance due to adoption
 of fair value measurement of digital assets

 -

 -

 -

 30,600

 -

 30,600

 Issuance of common stocks pursuant to private placement

 5,079,999

 5,100

 6,598,900

 -

 -

 6,604,000

 Issuance of common stocks to a service provider

 160,577

 237,500

 -

 -

 237,700

 Capital injection from a non-controlling shareholder

 -

 -

 -

 -

 88,900

 88,900

 Withdrawal of capital by a non-controlling shareholder

 -

 -

 -

 -

 ( 88,900
)

 ( 88,900
)

 Dissolution of subsidiaries

 -

 -

 ( 386,300
)

 -

 1,632,100

 1,245,800

 -

 -

 -

 ( 4,064,400
)

 ( 615,800
)

 ( 4,680,200
)

 Balance, December 31, 2023

 31,724,631

 $
 31,800

 $
 27,822,200

 $
 ( 17,454,200
)

 $
 -

 $
 10,399,800

 The accompanying notes are an integral part of
these consolidated financial statements.

 F- 4

 CONSOLIDATED STATEMENTS OF CASH FLOWS

unless otherwise stated)

 2023

 2022

 Operating activities:

 $
 ( 4,680,200
)

 $
 ( 9,298,200
)

 Adjustments to reconcile net loss to net cash used in operating activities:

 Share-based compensation for employees

 -

 53,000

 Share-based compensation for a non-employee

 237,700

 -

 Gain of digital assets from revenues

 ( 47,800
)

 ( 328,600
)

 Gain from exchange of digital assets

 -

 Changes in fair value of digital assets

 ( 1,721,900
)

 -

 Share of equity loss in an equity method investee

 75,200

 -

 Loss from dissolution of subsidiaries

 1,033,100

 -

 Depreciation and amortization

 -

 111,100

 Impairment of intangible assets

 -

 888,900

 Impairment of digital assets

 -

 78,900

 Impairment of goodwill

 -

 Gain from reversal of accounts and other payables

 -

 ( 1,478,800
)

 Changes in operating assets and liabilities:

 Stable coins

 -

 821,000

 Prepaid expenses and other current assets

 324,400

 ( 116,200
)

 Taxes receivable

 1,095,600

 139,600

 Accounts payable and accrued expenses

 659,900

 ( 1,391,100
)

 Accrued payroll

 ( 102,500
)

 ( 28,600
)

 Income taxes payable

 124,200

 4,800

 Net cash used in operating activities

 ( 3,001,400
)

 ( 5,855,600
)

 Investing activities:

 Purchases of digital assets

 ( 3,146,600
)

 ( 46,300
)

 Purchases of stable coins

 ( 139,900
)

 -

 Investment in equity investees

 ( 1,546,000
)

 -

 Proceeds paid to acquire a subsidiary under common control

 -

 ( 10,000
)

 Acquisition of net assets of a subsidiary

 -

 3,800

 Net cash used in investing activities

 ( 4,832,500
)

 ( 52,500
)

 Financing activities:

 Subscription fee advanced from investors

 2,280,100

 3,441,000

 Proceeds from issuance of common stocks pursuant to private placements

 1,420,000

 2,350,000

 Capital injection from a non-controlling shareholder

 88,900

 -

 Capital withdrawal by a non-controlling shareholder

 ( 88,900
)

 -

 Net cash provided by financing activities

 3,700,100

 5,791,000

 Net decrease in cash and cash equivalents

 ( 4,133,800
)

 ( 117,100
)

 Cash, cash equivalents, beginning of year

 7,380,700

 Cash, cash equivalents, end of year

 $
 3,129,800

 $

 Supplemental Cash Flow Information

 Payment of interest expenses

 $
 -

 $

 Payment of income tax expenses

 $
 -

 $
 -

 Non-cash Investing and Financing
 activities

 Subscription fee advanced from investors in the form of USDC

 $
 475,000

 $
 1,743,000

 Proceeds from private placements in the form of USDC

 $
 -

 $
 2,050,000

 Issuance of common stocks to settle subscription fee advanced from investors

 $
 6,604,000

 $
 -

 The accompanying notes are an integral part of
these consolidated financial statements.

 F- 5

 1. ORGANIZATION AND PRINCIPAL ACTIVITIES

 Mega Matrix Corp. (the "Company",
formerly "AeroCentury Corp." and "ACY") is a Delaware corporation incorporated in 1997. Through the Company's
emergence from bankruptcy on September 30, 2021, and new investors and management, the Company became a holding company located in Palo
Alto, California, with two subsidiaries: Mega Metaverse Corp., a California corporation ("Mega") and JetFleet Holdings Corp.,
a California corporation ("JHC"). On January 1, 2022, JetFleet Management Corp. ("JMC"), a wholly-owned subsidiary
of JHC, was merged with and into JHC, with JHC being the surviving entity. As part of the merger, JHC changed its name to JetFleet Management
Corp.

 On March 25, 2022, the Company changed its name
from "AeroCentury Corp" to "Mega Matrix Corp." ("Name Change") to better reflect its expansion into
Metaverse and GameFi business. In connection with the Name Change, the Company changed its ticker symbol from "ACY" to "MTMT"
on the NYSE American, effective on March 28, 2022. All references to the "Company," or "AeroCentury" refers to
AeroCentury Corp. together with its consolidated subsidiaries prior to March 25, 2022 and renamed "Mega Matrix Corp." commencing
on March 25, 2022. Effective on February 6, 2023, the Company changed its ticker symbol from "MTMT" to "MPU"
on the NYSE American.

 On August 31, 2022, we acquired all of the equity interest in Saving
Digital Pte, Ltd., a Singapore corporation ("SDP") with no operations and approximately $ 3,800 in cash, from our chairman
Yucheng Hu for a nominal consideration of $ 10,000. On September 19, 2022, through SDP, we purchased 37 Ethereum (ETH) for the purpose
of exploring Ethereum staking opportunities following the transition by Ethereum on September 15, 2022 from proof-of-work (PoW) to a proof-of-stake
(PoS) consensus mechanism referred to as the "Merge." Prior to the Merge, Ethereum utilized a PoW validation method for digital
asset transactions. Following the Merge, Ethereum shifted to a PoS validation system where validators stake their ETH into a smart contract
on Ethereum to serve as collateral that can be destroyed if the validator behaves dishonestly or lazily. The validator (selected randomly)
is then responsible for processing the blockchain transactions, storing data and adding new blocks to the blockchain. Validators receives
a transaction fee on their staked coins in ETH as a reward for their active participation in the network. To become a validator on Ethereum,
a participant must stake 32 ETH. As of December 31, 2023, SDP staked 1,600 ETH to become fifty (50) validators to Ethereum to earn ETH
rewards and yield. Solo-Staking enables SDP to utilize its ETH treasury to stake on the Ethereum beacon chain and to earn ETH-denominated
rewards directly from the Ethereum protocol.

 On March 1, 2023, SDP and Bit Digital Singapore
Pte. Ltd. ("Bit Digital"), entered into a shareholders' agreement (the "Shareholders Agreement") with Marsprotocol
Technologies Pte. Ltd. ("MTP"), to provide proof-of-stake technology tools for digital assets through the staking platform
"MarsProtocol", an institutional grade non-custodial staking technology. Pursuant to the Shareholders Agreement, SDP will
own 60 % and Bit Digital will own 40 % of MTP. Through the MarsProtocol platform, MTP planned to provide non-custodial staking tools. On
April 25, 2023, we, through our 100 % controlled Singapore subsidiary SDP, invested $ 300,000 in MarsLand Global Limited ("MarsLand"),
a BVI company and held 30 % interest in MarsLand. The other shareholders of MarsLand are non-affiliated. MarsLand provides staking services
to institutional clients, including us and Bit Digital. Further, Saving Digital is applying for the trademark "MarsProtocol".
After the successful application, Saving Digital will authorize MarsLand to use the trademark MarsProtocol to conduct MarsLand's
staking as a service ("StaaS") business. MarsLand will provide StaaS business of which we may utilize their services. SDP
was conducting Ethereum solo-staking in Singapore, but as discussed, the Company decided to focus entirely on its short drama streaming
platform business, and as of March 5, 2024, it has ceased its solo-staking activities.

 From
the end of April to the end of June 2023, which was a transition period, we terminated cooperation with an outsourced third-party IT company
to develop and maintain our MarsProtocol staking platform. There are no penalties or contingencies arising from the termination of cooperation.
As a result, effective July 1, 2023, we will not provide non-custodial staking tools to third parties. On August 4, 2023, Bit Digital
exited its investment in MTP and withdrew its capital contribution of SGD$ 120,000
from MTP. As a result of the transaction, SDP owns all outstanding ordinary shares of MTP.

 F- 6

 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED)

 On April 14, 2023, we entered into an Amended
and Restated Agreement and Plan of Merger (the "Merger Agreement") with MarsProtocol Inc., an exempted company incorporated
under the laws of the Cayman Islands and a wholly-owned subsidiary of the Company ("MPU Cayman"), amending and restating
the Agreement and Plan of Merger, dated December 7, 2022. The Merger Agreement provides that, upon the terms and subject to the conditions
set forth therein, the Company will merge with and into MPU Cayman (the "Redomicile Merger"), with MPU Cayman being the surviving
company in the Redomicile Merger. Upon the effectiveness of the Redomicile Merger, (i) MPU Cayman will change its name from MarsProtocol
Inc. to Mega Matrix Inc., and (ii) MPU Cayman, together with its subsidiaries, will own and continue to conduct the Company's business
in substantially the same manner as is currently being conducted by the Company and its subsidiaries. The consent of the holders of a
majority of the outstanding shares of the Company's common stock entitled to vote is required to approve and adopt the Merger Agreement.

 On August 24, 2023, per the recommendation of
JMC's board of directors, the Company, as a holder of a majority of the voting stock of JMC, elected to approve the winding up
and dissolution of JMC. In December 2023, JMC filed the voluntary petition for bankruptcy with the court and the court announced the
effectiveness of the petition. JMC ceased providing aircraft advisory and management services upon winding up and the Company deconsolidated
JMC and its subsidiaries in December 2023.

 On January 7, 2024, we entered into and closed a definitive Share Exchange
Agreement with FunVerse Holding Limited, a British Virgin Islands company ("FunVerse"), a company incorporated under the laws
of the British Virgin Islands and the sole parent company of Yuder Pte, Ltd. ("Yuder"), and the shareholders of FunVerse.
Following the transaction, the Company now owns sixty percent ( 60 %) of capital stock of FunVerse. Through Yuder, FunVerse now operates
FlexTV, a short drama streaming platform based in Singapore that produces English and Thai dramas that are also translated into different
languages for our users that are spread across various parts of the world such as Europe, America, and Southeast Asia. In addition to
creating original dramas, Yuder also acquires third party content licenses which it then translates and distributes on its FlexTV platform.
To deliver diverse and international content to our users, Yuder produces film in various parts of the world, including, but not limited
to, the United States, Mexico, Australia, Thailand, and Philippines

 Upon the deconsolidation of JMC and its subsidiaries,
the Company would focus on its short drama streaming platform business and will substantially de-emphasize its solo staking activities.
The management believed the deconsolidation does not represent a strategic shift, in both operating and financing aspects, because it
is not changing the way it is running its business. The Company has not shifted the nature of its operations or the major geographic market
area. The management believed the deconsolidation of does not represent a strategic shift that has (or will have) a major effect on the
Company's operations and financial results. The deconsolidation is not accounted as discontinued operations in accordance with ASC
205-20.

 2. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL
STATEMENTS

 The Company has noted the following errors in
relation to its consolidated financial statements for the year ended December 31, 2022 that had been filed on March 31, 2023. The errors
related to the reclassification digital assets and stable coins, and reclassification of other income and impairment of goodwill.

 a.

 Reclassification of digital assets and stablecoins

 As Tether reserves the
right under its user agreement to redeem USDT by in-kind redemptions of other assets it holds in its reserves and as Tether has held
precious metals and other non-financial assets in its reserves, it does not appear that USDT meets the definition of a financial instrument
under ASC 825-10-20. The Company reclassified USDT, amounting $ 90,100 as of December 31, 2022, from stable coins to digital assets. The
reclassification had no impact on net assets as of December 31, 2022, and revenues and net loss for the year ended December 31, 2022.

 b.

 Reclassification of other income

 For the year ended December
31, 2022, the other income of $ 1,478,800, resulted from results from the reversal of accounts and other payables which is not an income
generated from the Company's primary operations of the business. The Company reclassified the other income under the line of "loss
from operations" on the consolidated statements of operations and comprehensive loss. The reclassification had no impact on total
assets and net assets as of December 31, 2022.

 c.

 Reclassification of impairment of goodwill

 For the year ended December
31, 2022, the Company provided impairment of goodwill of $ 4,688,600 arising from fresh start adjustment, which should be presented above
the line of "loss from operations". The Company reclassified the impairment of goodwill from below the line of "loss
from operations" to above the line. The reclassification had no impact on total assets and net assets as of December 31, 2022.

 F- 7

 2. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL
STATEMENTS (CONTINUED)

 The following tables
present the effects of correcting this error on the Company's financial statements as of December 31, 2022, and for the year ended
December 31, 2022:

 December 31, 2022

 Consolidated balance sheet

 As previously
 reported

 Adjustments

 Stable coins

 3,062,100

 ( 90,100
)

 Digital assets

 459,300

 For the year ended December 31, 2022

 Consolidated statements of operations

 As previously
 reported

 Adjustments

 ( 1,478,800
)

 -

 Gross (loss) profit

 1,144,800

 ( 1,478,800
)

 ( 334,000
)

 Impairment of goodwill

 -

 5,803,300

 10,491,900

 Loss from operations

 ( 4,658,500
)

 ( 6,167,400
)

 ( 10,825,900
)

 Impairment of digital assets

 ( 4,688,600
)

 -

 -

 For the year ended December 31, 2022

 Consolidated statements of cash flows

 As previously reported

 Adjustments

 Changes in operating assets and liabilities:

 Stablecoins

 730,900

 821,000

 Accounts payable and accrued expenses

 ( 1,301,000
)

 ( 90,100
)

 ( 1,391,100
)

 F- 8

 3. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES

 Basis of presentation

 The accompanying consolidated financial statements
of the Company have been prepared in accordance with the accounting principles generally accepted in the United States of America ("US
GAAP").

 The accompanying consolidated financial statements
have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of
business are dependent on, among other things, the Company's ability to generate cash flows from operations, and the Company's
ability to arrange adequate financing arrangements to support its working capital requirements.

 Non-controlling interests

 Non-controlling interests represent the equity
interests of MTP and JMC that are not attributable, either directly or indirectly, to the Company. In the July 2023, the non-controlling
equity holder exited its investment in MTP. In December 2023, JMC closed dissolution.

 As of December 31, 2023 and 2022, non-controlling
equity holders held nil and 45.81 % equity interest in JMC, respectively.

 Going concern

 For the year ended December 31, 2023 and 2022,
the Company reported net losses of approximately $ 4.7 million and $ 9.3 million, respectively, and cash flows of approximately $ 3.0 million
and $ 5.9 million used in operating activities. In addition, the Company had accumulated deficits of approximately $ 17.5 million and $ 13.4
million as of December 31, 2023 and 2022, respectively. These conditions raised substantial doubt about the Company's ability to
continue as a going concern.

 The Company's liquidity is based on its
ability to generate cash from operating activities and obtain financing from investors to fund its general operations and capital expansion
needs. The Company's ability to continue as a going concern is dependent on management's ability to successfully execute
its business plan, which includes increasing revenue while controlling operating cost and expenses to generate positive operating cash
flows and obtain financing from outside sources.

 As of December 31, 2023, the Company had working
capital of approximately $ 8.6 million, among which the Company held cash of approximately $ 3.1 million, stable coins of approximately
$ 0.3 million and digital assets of approximately $ 7.7 million, which were easily convertible into cash over the market.

 Given the financial condition of the Company
and its operating performance, the Company assesses current working capital is sufficient to meet its obligations for the next 12 months
from the issuance date of this report. Accordingly, management continues to prepare the Company's consolidated financial statements
on going concern basis.

 F- 9

 Use of Estimates

 The Company's consolidated financial statements
have been prepared in accordance with GAAP. The preparation of consolidated financial statements in conformity with GAAP requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and
liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates. The Company bases its estimates on historical experience and on various other
assumptions that are believed to be reasonable for making judgments that are not readily apparent from other sources.

 The most significant estimates with regard to
these consolidated financial statements are accounting for the application of the amount and timing of future cash flows associated with
each asset that are used to evaluate whether assets are impaired, accounting for income taxes, and the amounts recorded as allowances
for doubtful accounts.

 Cash and Cash Equivalents

 The Company considers highly liquid investments
readily convertible into known amounts of cash, with original maturities of 90 days or less from the date of acquisition, as cash equivalents.

 Stablecoins

 The Company's stablecoins primarily consist
of USD Coin ("USDC"). USDC is issued by Circle Internet Financial Public Limited Company ("Circle") that is backed
by dollar denominated assets held by the issuer in segregated accounts with U.S. regulated financial institutions. The Company generally
redeem one USDC for one U.S. dollar from Matrixport Cactus Custody, its principal market for ETH. Pursuant to definition of financial
assets in ASC Master Glossary, USDC is accounted for as a financial instrument because it conveys to the Company a right to receive cash.
Because one USDC is pegged to one U.S. dollar, the Company recognized and measured USDC at unit price of US$ 1.00.

 F- 10

 Digital assets

 Digital assets (including Ethereum (ETH) and
Tether USD (USDT)) are included in current assets in the accompanying consolidated balance sheets. Digital assets purchased are recorded
at cost and digital assets awarded to the Company through its GameFi and Solo-Staking business are accounted for in connection with the
Company's revenue recognition policy disclosed below.

 On
December 13, 2023, the FASB issued ASU 2023-08, which addresses the accounting and disclosure requirements for certain cryptocurrencies.
The new guidance requires entities to subsequently measure certain cryptocurrencies at fair value, with changes in fair value recorded
in net income in each reporting period. Retrospective restatement would not be required or allowed for prior periods. The amendments
are effective for all entities for fiscal years beginning after December 15, 2024, including interim periods within those years. Early
adoption is permitted. The Company early adopted ASU 2023-08 on January 1, 2023.

 ASC 820 defines "principal market"
as the market with the greatest volume and level of activity for the asset or liability. The determination of the principal market (and,
as a result, the market participants in the principal market) is made from the perspective of the reporting entity. The Company determines
Matrixport Cactus Custody as its principal market, as it is one of the earliest and the most trusted sources by users, institutions,
and media for comparing thousands of digital assets.

 The Company measures the fair value of digital
assets on a daily basis, and refers to the daily closing prices published by Matrixport Cactus Custody as the fair value. For the year
ended December 31, 2023, the Company recorded an increase in fair value of digital assets of $ 1,721,900. As of January 1, 2023, the Company
recorded a cumulative-effect adjustment of $ 30,600 to accumulated deficits.

 Before adoption of ASU 2023-08, digital assets
were classified as an intangible asset. An intangible asset with an indefinite useful life is not amortized but assessed for impairment
annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived
asset is impaired. Digital assets are measured on a first-in-first-out ("FIFO") basis and measured for impairment whenever
indicators of impairment are identified based on the intraday low quoted price of digital assets. To the extent an impairment loss is
recognized, the loss establishes the new cost basis of the digital assets. Subsequent reversal of impairment losses is not permitted.
Digital assets are classified on our balance sheet as a current asset because the Company reasonably assesses that it would sell or exchange
digital assets within one year. Impairment of $ 78,900 of digital assets was recognized for the year ended December 31, 2022.

 Purchases of digital assets by the Company, if
any, will be included within investing activities in the accompanying consolidated statements of cash flows, while digital assets awarded
to the Company through its GameFi and Solo-staking business are non-cash operating activities on the accompanying consolidated statements
of cash flows. The sales of digital assets are included within investing activities in the accompanying consolidated statements of cash
flows and any realized gains or losses from such sales are included in "realized gain (loss) on exchange of digital assets"
in the consolidated statements of operations and comprehensive loss. The Company accounts for its gains or losses in accordance with
the first-in first-out method of accounting. As of December 31, 2023 and 2022, the Company did not sell its digital assets for cash.

 F- 11

 Long-term investments

 As of December 31, 2023, long-term investments
represent the Company's investment in one equity method investee over which the Company has significant influence, and investment
in two privately held companies over which the Company neither has control nor significant influence through investments in ordinary
shares.

 Investment in equity method investee

 In accordance with ASC 323, Investments - Equity
Method and Joint Ventures, the Company accounts for the investment in privately held companies using equity method, because the Company
has significant influence but does not own a majority equity interest or otherwise control over the equity investees.

 Under the equity method, the Company initially
records its investment at cost and prospectively recognizes its proportionate share of each equity investee's net income or loss
into its consolidated statements of operations. When the Company's share of losses in the equity investee equals or exceeds its
interest in the equity investee, the Company does not recognize further losses, unless the Company has incurred obligations or made payments
or guarantees on behalf of the equity investee.

 The Company continually reviews its investment
in the equity investee to determine whether a decline in fair value below the carrying value is other-than-temporary. The primary factors
the Company considers in its determination include the financial condition, operating performance and the prospects of the equity investee;
other company specific information such as recent financing rounds; the geographic region, market and industry in which the equity investee
operates; and the length of time that the fair value of the investment is below its carrying value. If the decline in fair value is deemed
to be other-than-temporary, the carrying value of the equity investee is written down to fair value.

 Investment in privately held companies

 Equity investments not accounted for using the
equity method are carried at fair value with unrealized gains and losses recorded in the consolidated statements of operations, according
to ASC 321, Investments - Equity Securities. The Company elected to record the equity investments in privately held companies
using the measurement alternative at cost, less impairment, with subsequent adjustments for observable price changes resulting from orderly
transactions for identical or similar investments of the same issuer.

 Equity investments in privately held companies
accounted for using the measurement alternative are subject to periodic impairment reviews. The Company's impairment analysis considers
both qualitative and quantitative factors that may have a significant effect on the fair value of these equity securities, including
consideration of the impact of the COVID-19 pandemic. In computing realized gains and losses on equity securities, the Company calculates
cost based on amounts paid using the average cost method. Dividend income is recognized when the right to receive the payment is established.

 Intangible assets

 Purchased intangible assets primarily consist
of software, which are recognized and measured at fair value upon acquisition. Separately identifiable intangible assets that have determinable
lives continue to be amortized over their estimated useful lives using the straight-line method based on their estimated useful lives.

 F- 12

 Impairment of Long-lived Assets

 The Company reviews assets for impairment when
there has been an event or a change in circumstances indicating that the carrying amount of a long-lived asset may not be recoverable.
In addition, the Company routinely reviews all long-lived assets for impairment semi-annually. Recoverability of an asset is measured
by comparison of its carrying amount to the future estimated undiscounted cash flows (without interest charges) that the asset is expected
to generate. Estimates are based on currently available market data and independent appraisals and are subject to fluctuation from time
to time. If these estimated future cash flows are less than the carrying value of an asset at the time of evaluation, any impairment
to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Fair value is determined
by reference to independent appraisals and other factors considered relevant by management. Significant management judgment is required
in the forecasting of future operating results that are used in the preparation of estimated future undiscounted cash flows and, if different
conditions prevail in the future, material write-downs may occur.

 The Company recorded impairment losses of approximately
$ 0.9 million in 2022, as a result of the Company's determination that the carrying value for intangible assets were not recoverable.

 Revenue Recognition

 Revenue from Solo-Staking business

 The Company generates revenue through staking
rewards.

 The Company staked its own digital assets validating
nodes on the Ethereum chain. Through the contracts with Ethereum chain, the Company provides Ethereum ("ETH") to stake on
a node for the purpose of validating transactions and adding blocks to a respective blockchain network. The Company's enforceable
right to compensation begins when, and lasts for as long as, the Company provides staking services to the ETH chain; the Company's
performance obligation extends over the contract term given its continuous provision of staking services. This period of time corresponds
with the period of service for which the ETH chain determines compensation due to us. Given cancellation terms of the contract, and the
Company's customary business practice, the contract effectively provides the option to renew for successive contract terms daily.

 The Company is entitled to terminate its contract
with ETH chain at any time at its own discretion. In exchange for staking the ETH and validating transactions on blockchain networks,
the Company is entitled to all of the fixed ETH award for running the Company's own node, for successfully validating or adding
a block to the blockchain.

 The provision of validating blockchain transactions
is an output of the Company's ordinary activities. Each separate block creation or validation under a smart contract with a network
represents a performance obligation. The transaction consideration the Company receives ETH awards is a non-cash consideration, which
the Company measures at fair value on the date received. The fair value of the ETH award received is determined using the quoted price
of the related cryptocurrency at the time of receipt. The satisfaction of the performance obligation for transaction verification services
occurs at a point in time when confirmation is received from the network indicating that the validation is complete, and the awards are
available for transfer. At that point, revenue is recognized. As of March 5, 2024, the Company has ceased its solo-staking activities.

 F- 13

 Revenue Recognition (continued)

 Revenue from provision of staking technology
tools

 The Company charged its customers at a fixed fee
rate on each unit of digital assets earned from staking business. The Company identified one performance obligation from the staking services.
Because the customers simultaneously receive and consumes the services provided by the Company, the Company recognized the revenue over
period using output method as measurement.

 Commencing in March 2023, the Company, through
MTP, provides its customers with proof-of-stake technology tools for digital assets through the staking platform "MarsProtocol"

 Revenue from GameFi business

 In late March 2022, the Company released its
first NFT game "Mano" in the Mega's metaverse universe platform"alSpace". Mano is a competitive idle role-playing
game (RPG) deploying the concept of GameFi in the innovative application of NFTs (non-fungible token) based on blockchain technology,
with a "Play-to-earn" business model that the players can earn while they play in the alSpace.

 The Company earns transaction fees from players
based on a fixed number of Binance Coin (BNB) of each transaction when they want to upgrade or reset their NFT in Mano. When a player
executes a game transaction through Binance Smart Chain ("BSC"), transaction fee is recognized upon the completion of this
game transaction. Only a single performance obligation is identified for each game transaction, and the performance obligation is satisfied
on the trade date because that is when the underlying game service is identified, the pricing of transaction fee is agreed upon and the
promised services are delivered to customers. All of the Company's revenue from contracts with customers are recognized at a point
in time. The game service could not be cancelled once it's executed and is not refundable, so returns and allowances are not applicable.
The Company recognizes revenues on a gross basis as the Company is determined to be the primary obligor in fulfilling the trade order
initiated by the player.

 The revenue is in the form of BNB, which is a
cryptocurrency that is primarily used in payment of transactions and trading fees through BSC. BNB is convertible to cash or other
digital assets. Due to business reasons, the Company decided to suspend the Mano game and the alSpace platform, and on November
4, 2022, the Company discontinued the Mano game and the alSpace platform.

 Revenue from leasing of aircraft assets

 Revenue from leasing of aircraft assets pursuant
to operating leases is recognized on a straight-line basis over the terms of the applicable lease agreements. Deferred payments are recorded
as accrued rent when the cash rent received is lower than the straight-line revenue recognized. Such receivables decrease over the term
of the applicable leases. Interest income is recognized on finance leases based on the interest rate implicit in the lease and the outstanding
balance of the lease receivable. Maintenance reserves retained by the Company at lease-end are recognized as maintenance reserves revenue.

 In instances where collectability is not reasonably
assured, the Company recognizes revenue as cash payments are received. The Company estimates and charges to income a provision for bad
debts based on its experience with each specific customer, the amount and length of payment arrearages, and its analysis of the lessee's
overall financial condition. If the financial condition of any of the Company's customers deteriorates, it could result in actual
losses exceeding any estimated allowances.

 F- 14

 Taxes

 As part of the process of preparing the Company's
consolidated financial statements, management estimates income taxes in each of the jurisdictions in which the Company operates. This
process involves estimating the Company's current tax exposure under the most recent tax laws and assessing both permanent and temporary
differences resulting from differing treatment of items for tax and US GAAP purposes. The temporary differences result in deferred tax
assets and liabilities, which are included in the balance sheet. In assessing the valuation of deferred tax assets, the Company considers
whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization
of deferred tax assets is dependent upon the generation of future taxable income or availability to carry back the losses to taxable income
during periods in which those temporary differences become deductible. The Company considered several factors when analyzing the need
for a valuation allowance including the Company's three-year book cumulative loss through December 31, 2023, the financial forecast,
the Company's recent filing for protection under Chapter 11 of the bankruptcy code and the operation uncertainty of the Company's
new business. Based on this analysis, the Company has concluded that a valuation allowance is necessary for its U.S. and foreign deferred
tax assets not supported by either future taxable income or availability of future reversals of existing taxable temporary differences
and has recorded a full valuation allowance on its deferred tax assets.

 Fair value Measurement

 The Company applies ASC Topic 820, Fair Value
Measurements and Disclosures which defines fair value, establishes a framework for measuring fair value and expands financial statement
disclosure requirements for fair value measurements.

 ASC Topic 820 defines fair value as the price
that would be received from the sale of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly
transaction between market participants in the principal or most advantageous market for the asset or liability.

 ASC Topic 820 specifies a hierarchy of valuation
techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows:

 Level 1 inputs to the valuation methodology are
quoted prices (unadjusted) for identical assets or liabilities in active markets.

 Level 2 inputs to the valuation methodology include
quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either
directly or indirectly, for substantially the full term of the financial instruments.

 Level 3 inputs to the valuation methodology are
unobservable and significant to the fair value. Unobservable inputs are valuation technique inputs that reflect the Company's own
assumptions about the assumptions that market participants would use in pricing an asset or liability.

 Management of the Company considers the carrying
amount of cash and cash equivalents, stablecoins, taxes receivables, other receivables, other payables and other taxes payable based
on the short-term maturity of these instruments to approximate their fair values because of their short-term nature.

 Digital assets are classified as level 1 financial
assets because the fair value of digital assets is quoted priced in active markets.

 Recent accounting pronouncements

 On December 13, 2023, the FASB issued ASU
2023-08 "Accounting for and Disclosure of Crypto Assets ", which addresses the accounting and disclosure requirements
for certain cryptocurrencies. The new guidance requires entities to subsequently measure certain cryptocurrencies at fair value, with
changes in fair value recorded in net income in each reporting period. In addition, entities are required to provide additional disclosures
about the holdings of certain cryptocurrencies. When adopting the final standard, entities are required to record a cumulative-effect
adjustment to retained earnings (or other appropriate components of equity or net assets) as of the beginning of the annual period of
adoption. Retrospective restatement would not be required or allowed for prior periods. For all entities, the ASU's amendments are
effective for fiscal years beginning after December 15, 2024, including interim periods within those years. Early adoption is permitted.
If an entity adopts the amendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes that
interim period. The Company early adopted ASU 2023-08 on January 1, 2023. As of January 1, 2023, the Company recorded a cumulative-effect
adjustment of $ 30,600 to accumulated deficits.

 F- 15

 4. STABLE COINS

 Stable coins were comprised of the following:

 2023

 December
 31,

 2022

 USDC

 $
 254,400

 $

 The following table presents additional information
about USDC for the years ended December 31, 2023 and 2022:

 2023

 2022

 Opening balance

 $

 $
 -

 Collection of USDC from subscription fee from investors

 300,000

 3,093,000

 Collection of USDC from other services

 6,800

 -

 Purchases of USDC

 139,900

 -

 Collection of USDC from exchange of USDT

 595,000

 -

 Collection of USDC from exchange of ETH and BNB

 -

 446,600

 Investment in an equity-method investee in USDC

 ( 300,000
)

 -

 Exchange of USDC into ETH

 ( 2,894,400
)

 -

 Payment of service fees and other expenses

 ( 564,900
)

 ( 567,600
)

 Ending balance

 $
 254,400

 $

 5. DIGITAL ASSETS

 Digital asset holdings were comprised of the
following:

 2023

 2022

 ETH

 $
 7,123,300

 $

 USDT

 573,400

 $
 7,696,700

 $
 459,300

 As
of December 31, 2023, the Company held 3,122.48 ETH, with fair value price of $ 2,281.32 per unit. For the year ended December 31, 2023,
the Company recognized an increase in fair value of ETH of $ 1,721,900. As of December 31, 2022,
the Company held 334.13 ETH, with fair value price of $ 1,196.77 per unit. As of January 1, 2023, the Company recorded a cumulative-effect
adjustment of $ 30,600 to accumulated effective.

 For the year ended December 31, 2022, the Company
recognized impairment loss of $ 70,600 on ETH.

 F- 16

 5. DIGITAL ASSETS (CONTINUED)

 Additional information about digital assets

 The following table presents additional information
about ETH for the years ended December 31, 2023 and 2022:

 2023

 2022

 Opening balance

 $

 $
 -

 Cumulative-effect adjustment of opening balance due to adoption of fair value measurement

 30,600

 Addition of ETH staking reward and other services

 41,000

 1,800

 Purchases of ETH in cash

 -

 46,300

 Purchases of ETH from exchange of USDC

 2,894,400

 -

 Purchases of ETH from exchange of USDT

 2,119,500

 350,200

 Borrowings of ETH from a third party

 -

 41,600

 Return of ETH to a third party

 ( 48,500
)

 -

 Payment of ETH for other services

 ( 4,800
)

 ( 100
)

 Changes in fair value of ETH

 1,721,900

 -

 Impairment of ETH

 -

 ( 70,600
)

 Ending balance

 $
 7,123,300

 $

 The following table presents additional information
about USDT for the years ended December 31, 2023 and 2022:

 2023

 2022

 Opening balance

 $

 $
 -

 Purchase of USDT in cash

 3,146,600

 -

 Collection of USDC from subscription advance from investors

 175,000

 700,000

 Exchange of USDT into ETH

 ( 2,119,500
)

 ( 350,200
)

 Exchange of USDT into USDC

 ( 595,900
)

 ( 149,000
)

 Collection of USDT from exchange of BNB

 -

 10,200

 Payment of service fees

 ( 122,900
)

 ( 120,900
)

 Ending balance

 $
 573,400

 $

 F- 17

 6. LONG-TERM INVESTMENTS

 Long-term investments were comprised of the following:

2023

2022

 Investment in MarsLand Global Limited ("MarsLand") (a)

 $
 224,800

 -

 Investment in Quleduo Technology Co., ("Quleduo") (b)

 1,000,000

 -

 Investment in DaoMax Technology Co., Ltd, ("DaoMax") (c)

 546,000

 -

 Total

 $
 1,770,800

 -

 (a) Investment in MarsLand

 MarsLand is a privately held company. In May
2023, the Company, through Saving Digital Pte. Ltd. ("Saving Digital"), its wholly owned subsidiary, invested consideration
of $ 300,000 in USDC, which represents 30 % of equity interest in MarsLand. The Company used equity method to measure the investment in
MarsLand. For the year ended December 31, 2023, the Company recorded a share equity loss of $75,200 for its share of the results of MarsLand.
As of December 31, 2023, the Company did not recognize impairment against the investment in MarsLand.

 (b) Investment in Quleduo

 Quleduo is a privately held company which is
engaged in software design and development. In May and September 2023, the Company made a total cash consideration of $ 1,000,000 in two
instalments to acquire 18.2 % of equity interest in Quleduo. Quleduo is a privately held company, over which the Company neither
has control nor significant influence through investment in ordinary shares. The Company accounted for the investment in Quleduo using
the measurement alternative at cost, less impairment, with subsequent adjustments for observable price changes resulting from orderly
transactions for identical or similar investments of the same issuer.

 Quleduo just commenced its operations in July 2023, and incurred minimal
losses for the year of 2023. For the year ended December 31, 2023, the Company
did not record upward adjustments or downward adjustments on the investment. The Company's impairment analysis considers both qualitative
and quantitative factors that may have a significant effect on the fair value of the equity security. As of December 31, 2023, the Company
did not recognize impairment against the investment security.

 (c) Investment in DaoMax

 In
June 2023, October 2023 and December 2023, the Company, through Saving Digital, invested an aggregated cash consideration of $ 546,000
in DaoMax in exchange for a total of 7.6 % equity interest
in the investee. DaoMax is a privately held company, over which the Company neither has control nor significant influence through investment
in ordinary shares. The Company accounted for the investment in DaoMax using the measurement alternative at cost, less impairment, with
subsequent adjustments for observable price changes resulting from orderly transactions for identical or similar investments of the same
issuer.

 DaoMax just commenced its operations in October 2023, and incurred
minimal losses for the year of 2023. For the year ended December 31, 2023, 2023, the
Company did not record upward adjustments or downward adjustments on the investment. The Company's impairment analysis considers
both qualitative and quantitative factors that may have a significant effect on the fair value of the equity security. As of December
31, 2023, the Company did not recognize impairment against the investment security.

 F- 18

 7. OPERATING LEASES

 As of December 31, 2023 and 2022, the
 Company leases office spaces in the United States and Singapore under non-cancelable operating leases, with terms ranging within 12
 months. The Company considers those renewal or termination options that are reasonably certain to be exercised in the determination
 of the lease term and initial measurement of right of use assets and lease liabilities. Lease expense for lease payment is
 recognized on a straight-line basis over the lease term.

 The Company determines whether a contract is or
contain a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease.
For operating leases that include rent holidays and rent escalation clauses, the Company recognizes lease expense on a straight-line basis
over the lease term from the date it takes possession of the leased property. The Company records the straight-line lease expense and
any contingent rent, if applicable, in the account of "professional fees, general and administrative and other expenses" on
the consolidated statements of operations and comprehensive losses.

 The lease agreements do not contain any material
residual value guarantees or material restrictive covenants.

 The Company applied practical expedient to account
for short-term leases with a lease term within 12 months. The Company records operating lease expense in its consolidated statements of
operations and comprehensive loss on a straight-line basis over the lease term and record variable lease payments as incurred. For the
years ended December 31, 2023 and 2022, the Company recorded rent expenses of $ 94,000 and $ 147,600, respectively.

 8. COMMON STOCK

 As of December 31, 2022, the Company authorized
 40,000,000 shares of common stocks, and had 26,484,055 shares issued and outstanding.

 On December 23, 2022,
the Company entered into a Securities Purchase Agreement (the "Purchase Agreement") with certain accredited investors named
in the Purchase Agreement (collectively, the "Purchasers"), pursuant to which the Company agreed to sell up to an aggregate
of 5,280,000 shares of the Company's common stock, $ 0.001 par value per share (the "Common Stock") at a purchase price
of $ 1.30 per share, or $ 6.9 million (the "Private Placement").

 On January 20, 2023,
the Company completed an initial sale of 4,314,615 shares of Common Stock pursuant to the Private Placement to certain Purchasers for
an aggregate purchase price of $ 5.6 million, or $ 1.30 per share.

 On February 15, 2023, the Company completed the
final sale of 765,384 shares of Common Stock pursuant to the Private Placement to a Purchaser for an aggregate purchase price of $ 1.0
million, or $ 1.30 per share, for combined total issuance of 5,079,999 shares of Common Stock for gross proceeds of approximately $ 6.6
million to the Company under the Private Placement, before deducting estimated offering expenses payable by the Company.

 On June 5, 2023, the Company issued 160,577 Common
Stock to a third-party provider which provided network security services to the Company. The service fee was agreed at $ 237,500.

 As of December 31, 2023, the Company authorized
 40,000,000 shares of common stocks, and had 31,724,631 shares issued and outstanding.

 F- 19

 9. INCOME TAXES

 Income tax provision (benefit) were comprised
of the following:

 2023

 2022

 Current income tax provision (benefits)

 Federal

 $
 -

 $
 -

 State

 4,000

 4,800

 Foreign

 83,100

 ( 53,700
)

 87,100

 ( 48,900
)

 Deferred income tax provision (benefits)

 Federal

 ( 1,155,800
)

 1,692,300

 State

 27,100

 ( 283,800
)

 Valuation allowance

 1,128,700

 ( 1,408,400
)

 -

 -

 Income tax provision (benefits)

 $
 87,100

 $
 ( 48,900
)

 Total income tax provision (benefit) differs
from the amount that would be provided by applying the statutory federal income tax rate to pretax earnings as illustrated below:

 2023

 2022

 Income tax benefits at statutory federal income tax rate

 $
 ( 976,100
)

 $
 ( 1,290,800
)

 State tax expense, net of federal benefit

 4,000

 4,800

 Foreign tax expenses (benefit)

 54,700

 ( 38,900
)

 Impairment of intangible assets

 -

 13,300

 Non-taxable income

 ( 284,600
)

 ( 35,100
)

 Other non-deductible expenses

 2,900

 -

 Global intangible low tax income

 173,700

 -

 Valuation allowance

 1,112,500

 1,297,800

 Income tax provision (benefits)

 $
 87,100

 $
 ( 48,900
)

 F- 20

 9. INCOME TAXES (CONTINUED)

 Temporary differences and carry-forwards that
give rise to a significant portion of deferred tax assets and liabilities as of December 31, 2023 and 2022 were as follows:

 2023

 2022

 Deferred tax assets:

 Current and prior year tax losses

 $
 7,125,100

 6,169,300

 Deferred interest expense

 3,991,300

 3,991,300

 Foreign tax credit

 -

 705,600

 Basis in deductible goodwill

 853,300

 -

 Deferred maintenance, bad debt allowance and other

 210,000

 -

 Accrued vacation and others

 -

 28,500

 12,179,700

 10,894,700

 Valuation allowance

 ( 12,179,700
)

 ( 10,889,000
)

 Deferred tax assets, net of valuation allowance

 $
 -

 $
 5,700

 Deferred tax liabilities:

 Others

 -

 ( 5,700
)

 Deferred tax liabilities

 -

 ( 5,700
)

 Deferred tax assets, net of valuation allowance and deferred tax liabilities

 $
 -

 $
 -

 Reported as:

 2023

 2022

 Deferred tax assets

 $
 12,179,700

 10,894,700

 Deferred tax liabilities

 -

 ( 5,700
)

 Valuation allowance

 ( 12,179,700
)

 ( 10,889,000
)

 Net deferred tax assets

 $
 -

 $
 -

 Consolidated deferred federal income taxes arise
from temporary differences between the valuation of assets and liabilities as determined for financial reporting purposes and federal
income tax purposes and are measured at enacted tax rates. The Company's deferred tax items are measured at an effective tax rate
(federal and state blended rate net of federal benefit) of 21.00 % and 21.05 % respectively as of December 31, 2023 and 2022.

 F- 21

 9. INCOME TAXES (CONTINUED)

 The current year federal operating loss carryovers
of approximately $ 2.5 million will be available to offset 80 % of annual taxable income in future years. Approximately $ 3.2 million of
federal net operating loss carryovers may be carried forward through 2037 and the remaining $ 23.7 million federal net operating loss carryovers
may be carried forward indefinitely. The current year California operating loss carryovers of approximately $ 0.4 million will be available
to offset taxable income in future years through 2042. As discussed below, the Company does not expect to utilize the net operating loss
carryovers remaining at December 31, 2023 in future years.

 During the year ended December 31, 2023, the
Company had pre-tax loss from domestic sources of approximately $ 5.6million and pre-tax loss from foreign sources of approximately $ 0.7
million. The Company had pre-tax loss from domestic sources of approximately $ 8.9 million and pre-tax loss from foreign sources of approximately
$ 0.4 million for the year ended December 31, 2022. The year-over-year decrease in profit before taxes is mostly driven by the reduction
in the Company's restructuring costs and employee salaries.

 As of December 31, 2023, the Company has a full
valuation allowance of approximately $ 12.2 million against its net deferred tax assets not supported by either future taxable income or
availability of future reversals of existing taxable temporary differences, for which realization cannot be considered more likely than
not at this time. In assessing the need for a valuation allowance, the Company considered all positive and negative evidence, including
taxable loss occurred in recent years, scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning
strategies, and past financial performance. Recent negative operating result has caused the Company to be in a cumulative loss position
as of December 31, 2023.

 As of December 31, 2022, the Company had a valuation
allowance of approximately $ 10.9 million, which fully offsets its net deferred tax assets.

 The Company and its subsidiaries file income tax
returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. With few exceptions, the Company is no longer subject
to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2017. At December 31, 2023 and
2022, the Company had a balance of accrued tax, penalties and interest totaling $ 44,600 and $ 56,100 related to unrecognized tax benefits
on its non-U.S. operations included in the Company's accounts and taxes payable. The Company anticipates decreases of approximately
$ 14,100 to the unrecognized tax benefits within twelve months of this reporting date. A reconciliation of the beginning and ending amount
of unrecognized tax benefits is as follows:

 December 31, 2023

 2022

 Balance at January 1

 $
 56,100

 66,200

 Additions for prior years' tax positions

 2,700

 2,700

 Reductions from expiration of statute of limitations

 ( 14,200
)

 ( 12,800
)

 Balance at December 31

 $
 44,600

 $
 56,100

 The Company accounts for interest related to
uncertain tax positions as interest expense, and for income tax penalties as tax expense.

 F- 22

 10. OPERATING SEGMENTS

 ASC 280, "Segment Reporting," establishes
standards for reporting information about operating segments on a basis consistent with the Company's internal organizational structure
as well as information about geographical areas, business segments and major customers in financial statements for details on the Company's
business segments. The Company uses the "management approach" in determining reportable operating segments. The management
approach considers the internal organization and reporting used by the Company's chief operating decision maker for making operating
decisions and assessing performance as the source for determining the Company's reportable segments. Management, including the
chief operating decision maker, reviews operation results by the revenue of different services.

 Due to business reasons, the Company, on November
4, 2022, discontinued the Mano game and the alSpace platform. In December 2023, JMC, which operated the leasing of regional aircraft
to foreign and domestic regional airlines, closed its dissolution. Accordingly as of December 31, 2023, the Company had one business
segment, which was the ETH staking business.

 For the year ended
December 31, 2023, the Company had two business segments which were comprised of 1) the ETH staking business, and 2) the leasing of regional
aircraft to foreign and domestic regional airlines.

 For the year ended December 31, 2022, the Company
had three business segments which were comprised of 1) the ETH staking business, 2) the GameFi business, and 3) the leasing of regional
aircraft to foreign and domestic regional airlines.

 The following tables present summary information
of operations by segment for the years ended December 31, 2023 and 2022.

 For the Year Ended December 31, 2023

 Staking

 Leasing

 Total

 Revenue

 $

 $
 -

 $

 Gross loss

 $
 ( 233,300
)

 $
 -

 $
 ( 233,300
)

 $
 ( 1,972,100
)

 $
 ( 1,289,800
)

 $
 ( 3,261,900
)

 Loss before income tax provision

 $
 ( 3,313,500
)

 $
 ( 1,279,600
)

 $
 ( 4,593,100
)

 $
 ( 3,315,100
)

 $
 ( 1,365,100
)

 $
 ( 4,680,200
)

 For
the Year Ended December 31, 2022

(As Restated)

 Staking

 GameFi

 Leasing

 Total

 Revenue

 $
 1,800

 $
 326,800

 $

 $
 448,600

 Gross (loss) profit

 $
 ( 219,700
)

 $
 ( 234,300
)

 $

 $
 ( 334,000
)

 $
 ( 1,455,600
)

 $
 ( 2,407,100
)

 $
 ( 6,629,200
)

 $
 ( 10,491,900
)

 Loss before income tax provision

 $
 ( 1,675,300
)

 $
 ( 2,641,400
)

 $
 ( 5,030,400
)

 $
 ( 9,347,100
)

 $
 ( 1,675,700
)

 $
 ( 2,642,600
)

 $
 ( 4,979,900
)

 $
 ( 9,298,200
)

 F- 23

 10. OPERATING SEGMENTS (CONTINUED)

 The following tables present total assets by segment
as of December 31, 2023 and 2022:

 2023

 2022

 ETH Staking Business

 $
 13,341,400

 $
 11,120,100

 Lease Business

 -

 1,431,700

 $
 13,341,400

 $
 12,551,800

 11. COMMITMENTS AND CONTINGENCIES

 In the ordinary course of the Company's
business, the Company may be subject to lawsuits, arbitrations and administrative proceedings from time to time. The Company believes
that the outcome of any existing or known threatened proceedings, even if determined adversely, should not have a material adverse effect
on the Company's business, financial condition, liquidity or results of operations.

 12. SUBSEQUENT EVENTS

 On January 12, 2024, the Company entered into
a Unit Subscription Agreement (the "Agreement") with certain investors (collectively the "Subscribers"), pursuant
to which the Subscribers agreed, subject to certain terms and conditions of the Agreement, to purchase an aggregate of 2,490,000 units
(the "Units") for an aggregate purchase price of $ 3,735,000, or $ 1.50 per unit (the "Offering Purchase Price").
Each Unit consists of one (1) share of common stock of the Company, $ 0.001 par value, and one (1) warrant (the "Warrant"),
with each Warrant entitling the holder to purchase one share of common stock at an exercise price of $ 1.50 per share at any time for
a period of up to five (5) years starting six (6) months from the issuance date at which time the Warrant will expire ("Offering").
The Agreement contains customary representations, warranties and covenants of the parties, and the closing is subject to customary closing
conditions. The closing of the Offering occurred on January 17, 2024.

 On November 15, 2023,
the Company entered into a non-binding letter of intent to acquire sixty percent ( 60 %) of the voting capital stock of Yuder Pte, Ltd.
("Yuder"), a company that operates FlexTV, a streaming platform specializing in short dramas, in exchange for 1,500,000 shares
of the Company's common stock, par value $ 0.001.

 On January 7, 2024,
the Company entered into and closed a definitive Share Exchange Agreement ("Exchange Agreement") with FunVerse Holding Limited
("FunVerse"), a company incorporated under the laws of the British Virgin Islands and the sole parent company of Yuder, and
the shareholders of FunVerse (collectively, "Sellers"). Before the closing of the Exchange Agreement, the Sellers held 85,625,000
ordinary shares of FunVerse, $ 0.0001 par value per share, which represents all of the issued and outstanding shares of FunVerse. Under
the Exchange Agreement, Sellers will exchange 51,375,000 of their FunVerse's shares for 1,500,000 shares of common stock of the
Company, par value $ 0.001 ("Common Stock"), as per terms and conditions set forth in the Exchange Agreement (the "Share
Exchange"), free and clear of all liens (other than potential restrictions on resale under applicable securities laws), which the
parties agreed is valued at $ 2,175,000, or $ 1.45 per share of Common Stock. Following the Share Exchange, the Company owned sixty percent
( 60 %) of capital stock of FunVerse.

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