What changed in DATASEA INC.'s 2024 10-K compared to 2023?

Across the narrative sections we track, DATASEA INC. (DTSS) added 735 paragraphs, removed 485, and edited 230 between the 2023 and 2024 10-K filings. The biggest movers are Item 7. Management's Discussion & Analysis (+361/−189), Item 1. Business (+268/−188), Item 1A. Risk Factors (+85/−92).

Did DATASEA INC. add new Risk Factors in the 2024 10-K?

Yes — Item 1A Risk Factors shows 85 new/edited paragraphs and 92 removed paragraphs versus the 2023 10-K.

What changed in DATASEA INC.'s MD&A (Item 7) in 2024?

Item 7 Management's Discussion & Analysis shows 361 new/edited paragraphs and 189 removed paragraphs year-over-year. Read the side-by-side diff to see exactly which revenue, margin, and outlook commentary was rewritten.

Did DATASEA INC.'s Legal Proceedings (Item 3) change in 2024?

Item 3 shows 2 added/edited paragraphs and 1 removed paragraphs — usually indicating new litigation disclosed or settled cases removed.

Where does this DTSS 10-K diff come from?

The source filings are DATASEA INC.'s official 2023 and 2024 Form 10-K annual reports from SEC EDGAR. 10q10k.net parses each filing, aligns paragraphs by section (Item 1, 1A, 1C, 2, 3, 7, 7A), and highlights every added, removed and edited sentence side-by-side.

What changed in DATASEA INC.'s 10-K — 2023 vs 2024

Paragraph-level year-over-year comparison of DATASEA INC.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+735 added−485 removedSource: 10-K (2024-09-26) vs 10-K (2023-09-27)

Top changes in DATASEA INC.'s 2024 10-K

735 paragraphs added · 485 removed · 230 edited across 6 sections

Item 7. Management's Discussion & Analysis+361 / −189 · 69 edited
Item 1. Business+268 / −188 · 73 edited
Item 1A. Risk Factors+85 / −92 · 74 edited
Item 2. Properties+16 / −11 · 10 edited
Item 5. Market for Registrant's Common Equity+3 / −4 · 3 edited

Item 1. Business

Business — how the company describes what it does

73 edited+195 added−115 removed90 unchanged

2023 filing

2024 filing

Biggest changeCertification Certificate No. 63 Campus danger alarm system V1.0 Ruan Zhu Deng Zi No.7177594 64 Community prevention and control personnel information registration system V1.0 Ruan Zhu Deng Zi n No.7140470 65 Intelligent Community Management System V1.0 Ruan Zhu Deng Zi No.7125871 66 Community prevention and control health information Management system V1.0 Ruan Zhu Deng Zi No.7131600 67 Campus epidemic prevention and control personnel access management system based on face recognition Ruan Zhu Deng Zi No.7263518 68 Campus epidemic prevention and control temperature measurement data management system Ruan Zhu Deng Zi No.7242759 69 Intelligent community intelligent monitoring and management system V1.0 Ruan Zhu Deng Zi No.7558127 70 Campus information Management System V1.0 Ruan Zhu Deng Zi No.7561345 71 Intelligent community access control management system Ruan Zhu Deng Zi No.7568924 72 Community prevention and control temperature measurement data management system Ruan Zhu Deng Zi No.7565701 73 Campus monitoring system V1.0 Ruan Zhu Deng Zi No.7570612 74 Community prevention and control personnel information Management system V1.0 Ruan Zhu Deng Zi No.7570807 75 Campus Intelligent acoustic Warning System V2.0 Ruan Zhu Deng Zi No. 8580724 76 Intelligent acoustic Early warning System V2.0 for medical and nursing environment Ruan Zhu Deng Zi No. 8580553 77 Intelligent acoustic Early warning system V2.0 for public places Ruan Zhu Deng Zi No. 8580552 78 Swimming pool intelligent acoustic warning system V2.0 Ruan Zhu Deng Zi No. 8580686 79 Home Intelligent Acoustic Warning System V2.0 Ruan Zhu Deng Zi No. 8580685 80 Hotel Intelligent acoustic warning system V2.0 Ruan Zhu Deng Zi No. 8580725 81 5G message data acquisition System 1.0 Ruan Zhu Deng Zi No.11109956 82 5G message aggregation cloud platform Ruan Zhu Deng Zi No.11109703 83 Cockpit management platform Ruan Zhu Deng Zi No.11109957 84 Data Asset Management Platform 1.0 Ruan Zhu Deng Zi No.11109896 85 Digital Employee Management System 1.0 Ruan Zhu Deng Zi No.11109704 29 Software Copyrights owned by Acoustic Effect Technology 86 High frequency acoustic effect air coupling algorithm software V1.0 Ruan Zhu Deng Zi No.9854777 87 High frequency acoustic effect air coupling and collaborative ultraviolet control algorithm software V1.0 Ruan Zhu Deng Zi No. 9877299 88 Variable frequency acoustic effect coronavirus feature elimination algorithm software V1.0 Ruan Zhu Deng Zi No.9864534 Soft Copyrights owned by Shuhai Jingwei 89 Square intelligent acoustic early warning and recognition system 1.0 Ruan Zhu Deng Zi No.10322358 90 Community medical center intelligent acoustic early warning recognition system 1.0 Ruan Zhu Deng Zi No.10322366 91 Stadium intelligent acoustic early warning and identification system 1.0 Ruan Zhu Deng Zi No.10319630 92 Home intelligent acoustic early warning recognition system 1.0 Ruan Zhu Deng Zi No.10322359 93 College intelligent acoustic Early warning and recognition system 1.0 Ruan Zhu Deng Zi No.10322365 94 Apartment intelligent acoustic Early warning and recognition system 1.0 Ruan Zhu Deng Zi No.10319699 95 Shuhai Jingwei 5G message aggregation cloud platform Ruan Zhu Deng Zi No.10688735 96 Shuhai Jingwei Data collection system V1.0 Ruan Zhu Deng Zi No.10688734 97 Shuhai Jingwei digital team management system Ruan Zhu Deng Zi No.10688737 98 Shuhai Jingwei messaging platform 1.0 Ruan Zhu Deng Zi No.10688736 99 Shuhai Jingwei message marketing cloud platform 1.0 Ruan Zhu Deng Zi No.10688734 100 Shuhai Jingwei data asset management platform V1.0 Ruan Zhu Deng Zi No.11022539 101 Shuhai Jingwei SOP management system Ruan Zhu Deng Zi No.10688732 102 Shuhai Jingwei smart community integrated management client platform Ruan Zhu Deng Zi No.10688733 103 Shuhai Jingwei Intelligent Park security cloud platform Ruan Zhu Deng Zi No.10688731 104 High frequency acoustic effect air coupling algorithm software V1.0 Ruan Zhu Deng Zi No.10688740 105 High frequency acoustic effect air coupling and collaborative ultraviolet control algorithm software V1.0 Ruan Zhu Deng Zi No.10688739 106 Variable frequency acoustic effect coronavirus feature elimination algorithm software V1.0 Ruan Zhu Deng Zi No.10688738 30 Intellectual Property Planning Datasea is dedicated to cultivating a core product portfolio within the realm of acoustic intelligence, with a primary focus on the integration of acoustics and artificial intelligence.

Biggest changeCertification Certificate No. 76 Campus danger alarm system V1.0 Ruan Zhu Deng Zi No.7177594 77 Community prevention and control personnel information registration system V1.0 Ruan Zhu Deng Zi n No.7140470 78 Intelligent Community Management System V1.0 Ruan Zhu Deng Zi No.7125871 79 Community prevention and control health information Management system V1.0 Ruan Zhu Deng Zi No.7131600 80 Campus epidemic prevention and control personnel access management system based on face recognition Ruan Zhu Deng Zi No.7263518 81 Campus epidemic prevention and control temperature measurement data management system Ruan Zhu Deng Zi No.7242759 82 Intelligent community intelligent monitoring and management system V1.0 Ruan Zhu Deng Zi No.7558127 83 Campus information Management System V1.0 Ruan Zhu Deng Zi No.7561345 84 Intelligent community access control management system Ruan Zhu Deng Zi No.7568924 85 Community prevention and control temperature measurement data management system Ruan Zhu Deng Zi No.7565701 86 Campus monitoring system V1.0 Ruan Zhu Deng Zi No.7570612 87 Community prevention and control personnel information Management system V1.0 Ruan Zhu Deng Zi No.7570807 88 Campus Intelligent acoustic Warning System V2.0 Ruan Zhu Deng Zi No. 8580724 89 Intelligent acoustic Early warning System V2.0 for medical and nursing environment Ruan Zhu Deng Zi No. 8580553 90 Intelligent acoustic Early warning system V2.0 for public places Ruan Zhu Deng Zi No. 8580552 91 Swimming pool intelligent acoustic warning system V2.0 Ruan Zhu Deng Zi No. 8580686 92 Home Intelligent Acoustic Warning System V2.0 Ruan Zhu Deng Zi No. 8580685 93 Hotel Intelligent acoustic warning system V2.0 Ruan Zhu Deng Zi No. 8580725 94 5G message data acquisition System 1.0 Ruan Zhu Deng Zi No.11109956 95 5G message aggregation cloud platform Ruan Zhu Deng Zi No.11109703 96 Cockpit management platform Ruan Zhu Deng Zi No.11109957 97 Data Asset Management Platform 1.0 Ruan Zhu Deng Zi No.11109896 98 Digital Employee Management System 1.0 Ruan Zhu Deng Zi No.11109704 99 5G aggregate user order data tracking system Ruan Zhu Deng Zi No12967877 100 5G communication channel payment gateway system Ruan Zhu Deng Zi No12971369 101 5G messaging e-commerce marketing network platform 1.0 Ruan Zhu Deng Zi No12971576 102 Multi-modal payment integrated management system Ruan Zhu Deng Zi No12970902 103 Integrated satellite remote sensing intelligent observation system Ruan Zhu Deng Zi No12971398 104 Iot edge computing gateway platform Ruan Zhu Deng Zi No12967198 105 Iot interoperable data service platform Ruan Zhu Deng Zi No12970896 106 Customer information security protection management platform Ruan Zhu Deng Zi No13073979 41 Software Copyrights owned by Acoustic Effect Technology 107 High frequency acoustic effect air coupling algorithm software V1.0 Ruan Zhu Deng Zi No.9854777 108 High frequency acoustic effect air coupling and collaborative ultraviolet control algorithm software V1.0 Ruan Zhu Deng Zi No. 9877299 109 Variable frequency acoustic effect coronavirus feature elimination algorithm software V1.0 Ruan Zhu Deng Zi No.9864534 Soft Copyrights owned by Shuhai Jingwei 110 Square intelligent acoustic early warning and recognition system 1.0 Ruan Zhu Deng Zi No.10322358 111 Community medical center intelligent acoustic early warning recognition system 1.0 Ruan Zhu Deng Zi No.10322366 112 Stadium intelligent acoustic early warning and identification system 1.0 Ruan Zhu Deng Zi No.10319630 113 Home intelligent acoustic early warning recognition system 1.0 Ruan Zhu Deng Zi No.10322359 114 College intelligent acoustic Early warning and recognition system 1.0 Ruan Zhu Deng Zi No.10322365 115 Apartment intelligent acoustic Early warning and recognition system 1.0 Ruan Zhu Deng Zi No.10319699 116 Shuhai Jingwei 5G message aggregation cloud platform Ruan Zhu Deng Zi No.10688735 117 Shuhai Jingwei Data collection system V1.0 Ruan Zhu Deng Zi No.10688734 118 Shuhai Jingwei digital team management system Ruan Zhu Deng Zi No.10688737 119 Shuhai Jingwei messaging platform 1.0 Ruan Zhu Deng Zi No.10688736 120 Shuhai Jingwei message marketing cloud platform 1.0 Ruan Zhu Deng Zi No.10688734 121 Shuhai Jingwei data asset management platform V1.0 Ruan Zhu Deng Zi No.11022539 122 Shuhai Jingwei SOP management system Ruan Zhu Deng Zi No.10688732 123 Shuhai Jingwei smart community integrated management client platform Ruan Zhu Deng Zi No.10688733 124 Shuhai Jingwei Intelligent Park security cloud platform Ruan Zhu Deng Zi No.10688731 125 High frequency acoustic effect air coupling algorithm software V1.0 Ruan Zhu Deng Zi No.10688740 126 High frequency acoustic effect air coupling and collaborative ultraviolet control algorithm software V1.0 Ruan Zhu Deng Zi No.10688739 127 Variable frequency acoustic effect coronavirus feature elimination algorithm software V1.0 Ruan Zhu Deng Zi No.10688738 128 Iot terminal edge service gateway platform Ruan Zhu Deng Zi No.12821324 129 5G message comprehensive traceability analysis data display system Ruan Zhu Deng Zi No.12782739 130 AI semantic copy generation system Ruan Zhu Deng Zi No.12664881 131 Multi-channel integrated payment management system Ruan Zhu Deng Zi No.12779467 132 Voice interaction inspection system based on customer robot Ruan Zhu Deng Zi No.12777940 133 Interactive precision reach analysis platform Ruan Zhu Deng Zi No.12817101 134 Customer information security management system Ruan Zhu Deng Zi No.12782733 135 Customer marketing management system Ruan Zhu Deng Zi No.12780563 136 Digital Sea Jingwei 5G message fee aggregation channel business platform Ruan Zhu Deng Zi No.12779116 137 Satellite remote sensing integrated intelligent observation system Ruan Zhu Deng Zi No.12778719 138 Internet of Things interlink service system Ruan Zhu Deng Zi No.12785025 139 Integrated marketing e-commerce platform Ruan Zhu Deng Zi No.12782647 42 Intellectual Property Planning Datasea is dedicated to cultivating a core product portfolio within the realm of acoustic High-Tech, with a primary focus on the integration of acoustics and artificial intelligence.

To promote research and innovation in these areas, the Company actively collaborates with several prominent research institutions and universities, including Chinese Academy of Sciences Institute of Acoustics, China Academy of Information and Communications Technology Cloud Computing and Big Data Research Institute, Tsinghua University Internet Industry Research Institute, Harbin Institute of Technology Artificial Intelligence Research Institute, Beijing Union University, and Jilin University Remote Sensing Research Institute.

The Company, together with these partners, is dedicated to conducting research on new topics and developing novel technology applications to drive advancements in the field of acoustics. To better achieve this goal, the Company collaborated for seven joint laboratories to enhance the integration of research resources and cooperation.

The Company, together with these partners, is dedicated to conducting research on new topics and developing novel technology applications to drive advancements in the field of acoustics. To better achieve this goal, the Company collaborated for joint laboratories to enhance the integration of research resources and cooperation.

Upon an event of default or certain other agreed events under the Operation and Intellectual Property Service Agreement, the Option Agreement and the Equity Pledge Agreement, Tianjin Information may exercise the right to enforce the pledge. 4 There are a number of uncertainties regarding the status of the rights of Datasea, our Nevada holding company, with respect to its contractual arrangements with the VIE, its founders and owners, including whether the PRC legal system could limit our ability to enforce these contractual agreements due to uncertainties under Chinese law and jurisdictional limits.

Upon an event of default or certain other agreed events under the Operation and Intellectual Property Service Agreement, the Option Agreement and the Equity Pledge Agreement, Tianjin Information may exercise the right to enforce the pledge. 5 There are a number of uncertainties regarding the status of the rights of Datasea, our Nevada holding company, with respect to its contractual arrangements with the VIE, its founders and owners, including whether the PRC legal system could limit our ability to enforce these contractual agreements due to uncertainties under Chinese law and jurisdictional limits.

In addition, the U.S. subsidiary, Datasea Acoustics, is actively acquiring U.S. patents, as well as international patents, and collaborating with U.S. universities and world-renowned research institutions. 1 The Company holds an outstanding position in the field of acoustics, particularly in areas such as ultrasound, infrasound, and directional sound.

In addition, the U.S. subsidiary, Datasea Acoustics, is actively acquiring U.S. patents, as well as international patents, and collaborating with U.S. universities and world-renowned research institutions. 2 The Company holds an outstanding position in the field of acoustics, particularly in areas such as ultrasound, infrasound, and directional sound.

Summary Consolidated Financial Data The following historical statements of operations and statements of cash flows for the fiscal years ended June 30, 2022 and June 30, 2023, and balance sheet data as of June 30, 2022 and June 30, 2023, which have been derived from our audited financial statements for those periods.

Summary Consolidated Financial Data The following historical statements of operations and statements of cash flows for the fiscal years ended June 30, 2023 and June 30, 2024, and balance sheet data as of June 30, 2023 and June 30, 2024, which have been derived from our audited financial statements for those periods.

As of the date of this report, neither Shuhai Beijing nor any of Datasea’s subsidiaries have ever paid dividends, made earnings distributions, transferred cash or other assets by kind to Datasea directly or indirectly. Datasea has not made any distributions or paid dividends to its shareholders, including U.S. investors, as of the date of this report.

As of September 26, 2024, neither Shuhai Beijing nor any of Datasea’s subsidiaries have ever paid dividends, made earnings distributions, transferred cash or other assets by kind to Datasea directly or indirectly. Datasea has not made any distributions or paid dividends to its shareholders, including U.S. investors, as of the date of this report.

The Company, together with these partners, is dedicated to conducting research on new topics and developing novel technology applications to drive advancements in the field of acoustics. To better achieve this goal, the Company collaborated for oint laboratories to enhance the integration and collaboration of research resources.

During the reporting period, the Company has added a professional antivirus and odor removal equipment manufacturer to customize and produce bathroom and cloakroom odor products and equipment using Datasea’s intelligent acoustics technology. Meanwhile, Schumann sleep aid product has been finalized and developed with partner manufacturers.

During the reporting period, the Company has added a professional antivirus and odor removal equipment manufacturer to customize and produce bathroom and cloakroom odor products and equipment using Datasea’s acoustics high tech technology. Meanwhile, Schumann sleep aid product has been finalized and developed with partner manufacturers.

Publication Number Description Application Status Patents Owned by Shuhai Beijing 1 CN108922101B An smart security campus management system of Shuhai Information Granted 2 CN108871456B Shuhai security intelligent sensor system Granted 3 CN109033874B A multi-role login method and system of Android program based on SQlite database Granted 4 CN111179546 An adaptive distributed audio alarm method and system Granted Patents Owned by Tianjin Information 5 CN108961661B Three-dimensional smart security alarm linkage system Granted Patents owned by Xunrui Technology 6 CN110374479B A type of intelligent security equipment Granted 7 CN112964372B The invention relates to a new infrared temperature measuring device and a temperature measuring method.

Publication Number Description Application Status Patents Owned by Shuhai Beijing 1 CN108922101B An smart security campus management system of Shuhai Information Granted 2 CN108871456B Shuhai security intelligent sensor system Granted 3 CN109033874B A multi-role login method and system of Android program based on SQlite database Granted 4 CN111179546 An adaptive distributed audio alarm method and system Granted 5 CN2024100443501 The invention discloses an information interaction method and system based on 5G messages Granted Patents Owned by Tianjin Information 6 CN108961661B Three-dimensional smart security alarm linkage system Granted Patents owned by Xunrui Technology 7 CN110374479B A type of intelligent security equipment Granted 8 CN112964372B The invention relates to a new infrared temperature measuring device and a temperature measuring method.

In the realm of acoustic intelligence, which includes ultrasound, infrasound, directional sound, and Schumann resonance, the Company has carried out in-depth collaborations with esteemed research institutions such as the Institute of Acoustics at the Chinese Academy of Sciences, the Institute of Artificial Intelligence, the China Institute of Information and Communication Technology, the China Institute of Standards, and the China Artificial Intelligence Industry Alliance in technological innovation, expert resources, and the industry standards development.

In the realm of acoustic High-Tech, which includes ultrasound, infrasound, and Schumann resonance, the Company has carried out in-depth collaborations with esteemed research institutions such as the Institute of Acoustics at the Chinese Academy of Sciences, the Institute of Artificial Intelligence, the China Institute of Information and Communication Technology, the China Institute of Standards, and the China Artificial Intelligence Industry Alliance in technological innovation, expert resources, and the industry standards development.

For a description of our corporate structure and contractual arrangements, see “Our Organizational Structure” on page 22 and “VIE Agreements” on page 4. Datasea is not a Chinese operating company but a Nevada-based holding company with its Delaware subsidiary, Datasea Acoustics LLC, serving as our U.S.-based international business platform.

For a description of our corporate structure and contractual arrangements, see “Our Organizational Structure” on page 34 and “VIE Agreements” on page 5. Datasea is not a Chinese operating company but a Nevada-based holding company with its Delaware subsidiary, Datasea Acoustics LLC, serving as our U.S.-based international business platform.

By partnering with these institutions, the Company can engage in joint research and development initiatives to create and adopt cutting-edge intelligent acoustics technologies. This collaborative approach helps Datasea maintain its technological leadership and obtain technical capabilities and reserves in relevant fields. U.S.

By partnering with these institutions, the Company can engage in joint research and development initiatives to create and adopt cutting-edge acoustics high tech technologies. This collaborative approach helps Datasea maintain its technological leadership and obtain technical capabilities and reserves in relevant fields globally. U.S.

Certification Certificate No. 1 Shuhai XIN Platform internet activity audit security management system V1.0 Ruan Zhu Deng Zi No.1054520 2 Shuhai XIN Platform WIFI device feature collection management system V1.0 Ruan Zhu Deng Zi No.1111383 3 Shuhai XIN Platform micro mall system V1.0 Ruan Zhu Deng Zi No.1111535 4 Shuhai XIN Platform SMS platform system V1.0 Ruan Zhu Deng Zi No.1111683 5 Shuhai XIN platform 3G website content management system V1.0 Ruan Zhu Deng Zi No.1111690 6 Shuhai media advertising system V1.0 Ruan Zhu Deng Zi No.1111694 7 Shuhai XIN platform micro marketing system V1.0 Ruan Zhu Deng Zi No.1111700 8 “Shuhai Safe Campus” mobile end - security management system V2.0 Ruan Zhu Deng Zi No.1575317 9 “Shuhai Safe Campus” security management system V2.0 Ruan Zhu Deng Zi No.1575313 10 “Shuhai XIN Platform” front-end equipment control system for smart elevator detection V2.0 Ruan Zhu Deng Zi No.1574419 11 “Shuhai XIN Platform” smart elevator inspection & pre-alarm management platformV2.0 Ruan Zhu Deng Zi No.1575648 12 “Shuhai XIN Platform” smart elevator real-time monitoring and alarm management platform V2.0 Ruan Zhu Deng Zi No.1575758 13 “Shuhai XIN Platform” smart elevator screen equipment monitoring system V2.0 Ruan Zhu Deng Zi No.1575665 14 “Shuhai XIN Platform” smart advertisement launching system V2.0 Ruan Zhu Deng Zi No.1575670 15 Shuhai Information smart safe campus management system V1.0 Ruan Zhu Deng Zi No.2888248 16 Shuhai Information XIN Platform security management system (Android Version) V2.21 Ruan Zhu Deng Zi No.2918496 17 Shuhai information XIN platform security management system (IOS version) V2.21 Ruan Zhu Deng Zi No.2918467 18 Shuhai Information big data smart decision-making platform for governmental affairs V1.0 Ruan Zhu Deng Zi No.2962930 19 Shuhai Information campus smart brain information management platform V1.0 Ruan Zhu Deng Zi No.2961899 20 Shuhai Information university big data innovation laboratory platform V1.0 Ruan Zhu Deng Zi No.2962919 21 Shuhai Information Food Traceability Management System V1.0 Ruan Zhu Deng Zi No.10176578 22 Shuhai information comprehensive canteen management application system V1.0 Ruan Zhu Deng Zi No.10176482 23 Shuhai information integrated community intelligent management user platform V1.0 Ruan Zhu Deng Zi No.10176481 24 Shuhai Information campus cloud security management system V1.0 Ruan Zhu Deng Zi No.10176483 25 Shuhai information physical network edge transmission gateway platform V1.0 Ruan Zhu Deng Zi No.10176483 26 Shuhai information aggregation message marketing cloud platform V1.0 Ruan Zhu Deng Zi No.10176528 27 Shuhai Communication 5G message application management system V1.0 Ruan Zhu Deng Zi No.10176582 28 Shuhai Information integrated community group Shopping Mall system V1.0 Ruan Zhu Deng Zi No.10176530 29 Shuhai Information online shopping retail service platform V1.0 Ruan Zhu Deng Zi No.10176529 30 Shuhai information integrated community intelligent management platform V1.0 Ruan Zhu Deng Zi No.10176484 31 The three-dimensional linkage system for Epidemic Prevention and control in Shuhai Information Community V1.0 Softcopy Registration No.7128687 32 Shuhai information scanning code aggregation payment system Softcopy Registration No.7299094 33 Shuhai information social group purchase system Softcopy Registration No.7296663 34 Shuhai information face recognition payment system V1.0 Softcopy Registration No.7298094 35 Shuhai information online shopping mall System Softcopy Registration No.7300125 27 Software Copyright owned by Xunrui Technology No.

Certification Certificate No. 1 Shuhai XIN Platform internet activity audit security management system V1.0 Ruan Zhu Deng Zi No.1054520 2 Shuhai XIN Platform WIFI device feature collection management system V1.0 Ruan Zhu Deng Zi No.1111383 3 Shuhai XIN Platform micro mall system V1.0 Ruan Zhu Deng Zi No.1111535 4 Shuhai XIN Platform SMS platform system V1.0 Ruan Zhu Deng Zi No.1111683 5 Shuhai XIN platform 3G website content management system V1.0 Ruan Zhu Deng Zi No.1111690 6 Shuhai media advertising system V1.0 Ruan Zhu Deng Zi No.1111694 7 Shuhai XIN platform micro marketing system V1.0 Ruan Zhu Deng Zi No.1111700 8 “Shuhai Safe Campus” mobile end - security management system V2.0 Ruan Zhu Deng Zi No.1575317 9 “Shuhai Safe Campus” security management system V2.0 Ruan Zhu Deng Zi No.1575313 10 “Shuhai XIN Platform” front-end equipment control system for smart elevator detection V2.0 Ruan Zhu Deng Zi No.1574419 11 “Shuhai XIN Platform” smart elevator inspection & pre-alarm management platformV2.0 Ruan Zhu Deng Zi No.1575648 12 “Shuhai XIN Platform” smart elevator real-time monitoring and alarm management platform V2.0 Ruan Zhu Deng Zi No.1575758 13 “Shuhai XIN Platform” smart elevator screen equipment monitoring system V2.0 Ruan Zhu Deng Zi No.1575665 14 “Shuhai XIN Platform” smart advertisement launching system V2.0 Ruan Zhu Deng Zi No.1575670 15 Shuhai Information smart safe campus management system V1.0 Ruan Zhu Deng Zi No.2888248 16 Shuhai Information XIN Platform security management system (Android Version) V2.21 Ruan Zhu Deng Zi No.2918496 17 Shuhai information XIN platform security management system (IOS version) V2.21 Ruan Zhu Deng Zi No.2918467 18 Shuhai Information big data smart decision-making platform for governmental affairs V1.0 Ruan Zhu Deng Zi No.2962930 19 Shuhai Information campus smart brain information management platform V1.0 Ruan Zhu Deng Zi No.2961899 20 Shuhai Information university big data innovation laboratory platform V1.0 Ruan Zhu Deng Zi No.2962919 21 Shuhai Information Food Traceability Management System V1.0 Ruan Zhu Deng Zi No.10176578 22 Shuhai information comprehensive canteen management application system V1.0 Ruan Zhu Deng Zi No.10176482 23 Shuhai information integrated community intelligent management user platform V1.0 Ruan Zhu Deng Zi No.10176481 24 Shuhai Information campus cloud security management system V1.0 Ruan Zhu Deng Zi No.10176483 25 Shuhai information physical network edge transmission gateway platform V1.0 Ruan Zhu Deng Zi No.10176483 26 Shuhai information aggregation message marketing cloud platform V1.0 Ruan Zhu Deng Zi No.10176528 27 Shuhai Communication 5G message application management system V1.0 Ruan Zhu Deng Zi No.10176582 28 Shuhai Information integrated community group Shopping Mall system V1.0 Ruan Zhu Deng Zi No.10176530 29 Shuhai Information online shopping retail service platform V1.0 Ruan Zhu Deng Zi No.10176529 30 Shuhai information integrated community intelligent management platform V1.0 Ruan Zhu Deng Zi No.10176484 31 The three-dimensional linkage system for Epidemic Prevention and control in Shuhai Information Community V1.0 Softcopy Registration No.7128687 32 Shuhai information scanning code aggregation payment system Softcopy Registration No.7299094 33 Shuhai information social group purchase system Softcopy Registration No.7296663 34 Shuhai information face recognition payment system V1.0 Softcopy Registration No.7298094 35 Shuhai information online shopping mall System Softcopy Registration No.7300125 36 Big data accurate analysis of sales promotion system Softcopy Registration No.11933115 37 Multimodal customer relationship management system Softcopy Registration No.11938599 38 5G message data exchange center system Softcopy Registration No.11893684 39 Enterprise digital employee management system Softcopy Registration No.11548880 39 Software Copyright owned by Xunrui Technology No.

Please refer to a condensed consolidating schedule that disaggregates the operations and depicts the financial position, cash flows, and results of operations as of the dates and for the periods stated therein at pages F-12 to F-16 of this Annual Report.

For a detailed discussion of risks facing the Company as a result of this VIE structure, please see “Risks Relating to our Corporate Structure” from page 42 to page 45 in the Annual Report.

For a detailed discussion of risks facing the Company as a result of this VIE structure, please see “Risks Relating to our Corporate Structure” from page 54 to page 57 in the Annual Report.

Although we believe that CSRC’s approval is not required for the listing and trading of our common stock on Nasdaq, we cannot assure you that relevant PRC governmental agencies, including the CSRC, would reach the same conclusion as we do. 33 Shuhai Beijing currently maintains the following licenses issued by the PRC government that are material to its operations: ● Business License issued by Beijing Municipal Industry and Commerce Administration; ● Beijing Statistics Registration Certificate issued by Beijing Municipal Bureau of Statistics; ● Value-Added Telecommunications Business Operating License issued by Ministry of Industry and Information Technology; ● Security Engineering Qualification Certificate issued by China Security Technology Prevention Industry Association; and ● The information security management system certification certificate issued by New Century Inspection and Certification Co., Ltd; ● Environmental Management System Certification Certificate issued by Beijing Xinjiyuan Certification Co., Ltd; ● Occupational Health and Safety Management System Certification Certificate issued by Beijing Xinjiyuan Certification Co., Ltd ● Quality Management System Certification Certificate issued by Zhengbiao Lianxin (Beijing) Certification Service Co., Ltd ● Network Culture Business License issued by the Beijing Municipal Bureau of Culture and Tourism 34 Shuhai Beijing also maintains the following certificates for its business: ● National High Tech Enterprises Certificate jointly issued by Beijing Municipal Science & Technology Commission, Beijing Municipal Finance Bureau, and Beijing Municipal Tax Service, State Taxation Administration; ● Zhongguancun High Tech Enterprises Certificate issued by Zhongguancun Science Park Administrative Committee; ● Membership Certificate issued by China Security Technology Prevention Industry Association; ● Information Security Management System Certificate issued by Beijing Inspection and Certification Limited Company; and ● Environmental Management System Certificate issued by Huaxinchuang (Beijing) Certification Center Co., Ltd Employees As of the date of this report, we have approximately 53 full-time employees and no part-time employees.

Although we believe that CSRC’s approval is not required for the listing and trading of our common stock on Nasdaq, we cannot assure you that relevant PRC governmental agencies, including the CSRC, would reach the same conclusion as we do. 45 Shuhai Beijing currently maintains the following licenses issued by the PRC government that are material to its operations: ● Business License issued by Beijing Municipal Industry and Commerce Administration; ● Beijing Statistics Registration Certificate issued by Beijing Municipal Bureau of Statistics; ● Value-Added Telecommunications Business Operating License issued by Ministry of Industry and Information Technology; ● Security Engineering Qualification Certificate issued by China Security Technology Prevention Industry Association; and ● The information security management system certification certificate issued by New Century Inspection and Certification Co., Ltd; ● Environmental Management System Certification Certificate issued by Beijing Xinjiyuan Certification Co., Ltd; ● Occupational Health and Safety Management System Certification Certificate issued by Beijing Xinjiyuan Certification Co., Ltd ● Quality Management System Certification Certificate issued by Zhengbiao Lianxin (Beijing) Certification Service Co., Ltd ● Network Culture Business License issued by the Beijing Municipal Bureau of Culture and Tourism Shuhai Beijing also maintains the following certificates for its business: ● National High Tech Enterprises Certificate jointly issued by Beijing Municipal Science & Technology Commission, Beijing Municipal Finance Bureau, and Beijing Municipal Tax Service, State Taxation Administration; ● Zhongguancun High Tech Enterprises Certificate issued by Zhongguancun Science Park Administrative Committee; ● Membership Certificate issued by China Security Technology Prevention Industry Association; ● Information Security Management System Certificate issued by Beijing Inspection and Certification Limited Company; and ● Environmental Management System Certificate issued by Huaxinchuang (Beijing) Certification Center Co., Ltd ● Beijing Municipal Bureau of Economy and Information Technology issued the special new small and medium-sized enterprise 46 Employees As of June 30, 2024, we have approximately 36 full-time employees and no part-time employees.

Through contractual arrangements (the “VIE Agreements”) with Shuhai Beijing, and its shareholders, Zhixin Liu, a stockholder as well as the Chairman, President, CEO and Corporate Secretary of Datasea, and Fu Liu, a stockholder as well as a Director of Datasea (Fu Liu is the father of Zhixin Liu), we receive benefits from the business and lead the daily operation of Shuhai Beijing.

Through contractual arrangements (the “VIE Agreements”) with Shuhai Beijing, and its shareholders, Zhixin Liu, a stockholder as well as the Chairman, President and CEO of Datasea, and Fu Liu, a stockholder as well as a Director of Datase, we receive benefits from the business and lead the daily operation of Shuhai Beijing.

Item % in budget 1 Salary of R&D personnel (incl. the introduction of high-end talents) 58 % 2 Procurement of scientific research facilities 20 % 3 Procurement of testing devices 6 % 4 Intermediate testing and tooling 5 % 5 Establishment of new technical schedule 4 % 6 Appointment of external technical experts 5 % 7 Others 2 % 31 Product Manufacturing Intelligent hardware terminals For the fiscal year ended June 30, 2023, our products primarily consist the “HailiJia” series of ultrasonic air sterilizer products, including 1) In-door models (floor and desktop models) suitable for different areas and functions, and 2) In-vehicle models; 3) Restroom and Cloakroom purification and deodorization.

Item % in budget 1 Salary of R&D personnel (incl. the introduction of high-end talents) 50 % 2 Procurement of scientific research facilities 20 % 3 Joint laboratories with universities, research institutes 8 % 4 Procurement of testing devices 6 % 5 Intermediate testing and tooling 5 % 6 Establishment of new technical schedule 4 % 7 Appointment of external technical experts 5 % 8 Others 2 % 43 Product Manufacturing Intelligent hardware terminals For the fiscal year ended June 30, 2024, our products primarily consist the “HailiJia” series of ultrasonic air sterilizer products, including 1) In-door models (floor and desktop models) suitable for different areas and functions, and 2) In-vehicle models; 3) Restroom and Cloakroom purification and deodorization.

As per The Business Research Company’s Ultrasonic Technology Global Market Report 2023, the global ultrasound technology market size will grow from $1.8 billion in 2022 to $2.1billion in 2023 at a compound annual growth rate (CAGR) of 13%. The ultrasound technology market size is then expected to grow to $3.3 billion in 2027 at a CAGR of 12%.

As of September 2023, the Company has made the following achievements in patent applications from the State Intellectual Property Bureau: Publication and Granted Patents: No.

As of June 2024, the Company has made the following achievements in patent applications from the State Intellectual Property Bureau: Publication and Granted Patents: No.

The following table sets forth the number of our employees categorized by function as of that date: Function Total Number of Employees Management 5 Human Resources Administrative Management 10 Internal Controls 1 Capital Operation 2 Purchase 3 Marketing and Sales 5 Research & Development 21 Finance & Accounting 6 Total 53

The following table sets forth the number of our employees categorized by function as of that date: Function Total Number of Employees Management 5 Human Resources Administrative Management 5 Internal Controls 2 Capital Operation 2 Purchase 1 Marketing and Sales 3 Research & Development 14 Finance & Accounting 4 Total 36

As of the date of this report, Shuhai Beijing and its subsidiaries own 27 Patents and 106 Software Copyrights in the PRC, which include 10 pending patent applications in core technologies, to empower and grow the business.

As of the date of this report, Shuhai Beijing and its subsidiaries own 21 Patents and 139 Software Copyrights in the PRC, which include 9 pending patent applications in core technologies, to empower and grow the business.

A condensed consolidating schedule that breaks down the operations and depicts the financial position, cash flows, and results of operations as of the same dates and for the fiscal years ended June 30, 2021 and 2020 in tabular form was contained in pages F-12 to F-16 of the 2021 Annual Report.

A condensed consolidating schedule that breaks down the operations and depicts the financial position, cash flows, and results of operations as of the same dates and for the fiscal years ended June 30, 2024 and 2023 in tabular form was contained in pages F-1 to F-34 of the 2024 Annual Report.

In terms of directional sound, the Company has achieved a breakthrough in the transmission of sound waves within an extremely narrow angle (25 degrees) and also achieved signal recovery at the lowest audible frequency in the world (20Hz).

This also includes the development of new types of energy converters. In terms of directional sound, the Company has achieved a breakthrough in the transmission of sound waves within an extremely narrow angle (25 degrees) and also achieved signal recovery at the lowest audible frequency in the world (20Hz).

This includes incentives such as stock awards for a publicly traded company and equity holdings in core business subsidiaries. To date, the Company has consistently issued relevant stocks to directors, executives, employees, and external consultants as part of its stock incentive program.

This includes stock awards for publicly traded companies and equity holdings in core business subsidiaries. To date, the Company has consistently issued relevant stocks under its stock incentive program to directors, executives, employees, and external consultants.

These strategic endeavors underscore Datasea’s commitment to innovation and its ambition to solidify its position as a leading player at the intersection of acoustics and artificial intelligence. R&D Investment As for the fiscal year ended June 30, 2022 and 2023, we spent $1,259,739 and $938,784 on research and development, respectively.

These strategic endeavors underscore Datasea’s commitment to innovation and its ambition to solidify its position as a leading player at the intersection of acoustics and artificial intelligence. R&D Investment As for the fiscal year ended June 30, 2023 and 2024, we spent $569,635 and $359,342 on research and development, respectively.

As a result of the Company’s increased investment in R&D and the training of technical talents, the Company’s software has a total of 106 copyright registrations in China, of which Shuhai Beijing owns 35 Software Copyright registrations, Xunrui owns 27 Software Copyright registrations, Tianjin Information owns 23 Software Copyright registrations and Shuhai Acoustic owns 3 Software Copyrights, and Shenzhen Jingwei owns 18 Software Copyrights.

As a result of the Company’s increased investment in R&D and the training of technical talents, the Company’s software has a total of 139 copyright registrations in China, of which Shuhai Beijing owns 39 Software Copyright registrations, Xunrui owns 36 Software Copyright registrations, Tianjin Information owns 31 Software Copyright registrations and Shuhai Acoustic owns 3 Software Copyrights, and Shenzhen Jingwei owns 30 Software Copyrights.

Market diversification : In the domestic market, Datasea can continue to provide intelligent acoustics and 5G messaging products to various end users, such as corporate customers and household users, to ensure market diversification.

Market diversification : In the domestic market, Datasea can continue to provide acoustics high tech and 5G AI multimodal digital products to various end users, such as corporate customers and household users, to ensure market diversification.

Key Suppliers and Raw Materials Our key suppliers for Hailijia's air disinfection and sterilization products series are as follows: ● Guangdong Hakebao Environmental Technology Co., Ltd. ● Shenzhen Ajison Environmental Protection Technology Co., Ltd ● Shenzhen Antuopu Technology Co., Ltd ● Komi I ntelligent Manufacturing (Shenzhen) Co., Ltd.

Key Suppliers and Raw Materials Our key suppliers for Hailijia’s air disinfection and sterilization products series are as follows: ● Guangdong Hakebao Environmental Technology Co., Ltd. ● Shenzhen Ajison Environmental Protection Technology Co., Ltd ● Shenzhen Antuopu Technology Co., Ltd ● Komi Intelligent Manufacturing (Shenzhen) Co., Ltd. Baihui Precision Plastic Mould (Shenzhen) Co., Ltd. Shenzhen Fubon New Technology Co., Ltd.

Competitive Strengths The Company believes our market position and potential future growth can be attributed to the following key factors and competitive strengths: Innovative technologies and products : Companies with a track record of innovations and a pipeline of new technologies and products can maintain a competitive advantage, which includes focusing on the core industries of acoustics and artificial intelligence (AI), actively participating in the formulation of industry technical standards and the building of a protective barrier, and developing international technical cooperation in China and the United States.

Innovative technologies and products : Companies with a track record of innovations and a pipeline of new technologies and products can maintain a competitive advantage, which includes focusing on the core industries of acoustics and artificial intelligence (AI), actively participating in the formulation of industry technical standards and the building of a protective barrier, and developing international technical cooperation in China and the United States.

This involves focusing on Environmental, Social, and Governance (ESG) issues, ensuring that the Company’s operations align with global best practices, and providing sustainable solutions to meet demands of customers.

Sustainable Growth : The Company can adopt a sustainable approach to ensure long-term success. This involves focusing on Environmental, Social, and Governance (ESG) issues, ensuring that the Company’s operations align with global best practices, and providing sustainable solutions to meet demands of customers.

Sleep Monitor Sleep Monitor adopts ultra-low frequency, weak intensity, and Magnetic induction of brain rhythm (MIBR), which is a magnetic induction of brain rhythm technology. Through the selective optimization and adjustment of the function of neurons through the magnetic induction of brain rhythm (MIBR), the monitor creates a natural frequency magnetic field similar to the Schumann frequency.

Granted Patents owned by ShenzhenJingwei Technology 8 CN107036218B A novel ultrasonic atomizer device Granted 9 CN218853183U The handle used for sterilizing the device Granted 10 CN218247901U Ultraviolet ultrasonic plasma disinfection equipment Granted Patents owned by Acoustic Effect Technology 11 CN307831947S Acoustic effect disinfection instrument type I (universal) Granted 12 CN307831948S Acoustic effect disinfection man-machine coexistence instrument I Granted 13 CN307831949S Acoustic effect disinfection instrument I (high-end version) Granted 14 CN307830199S Intelligent acoustic effect handle type I Granted 25 Patents under Substantive Examination: No.

Granted Patents owned by ShenzhenJingwei Technology 9 CN107036218B A novel ultrasonic atomizer device Granted 10 CN218853183U The handle used for sterilizing the device Granted 11 CN218247901U Ultraviolet ultrasonic plasma disinfection equipment Granted Patents owned by Acoustic Effect Technology 12 CN307831947S Acoustic effect disinfection instrument type I (universal) Granted 37 Patents under Substantive Examination: No.

This proactive approach in patent acquisition will ensure that Datasea’s intellectual property remains protected in the U.S. market and provide opportunities for licensing and monetization. These strategies will further strengthen Datasea’s position in the global market, consolidate its innovation capacity and protect its intellectual property assets.

This proactive patent acquisition strategy will ensure that Datasea’s intellectual property is protected in the U.S. market, while also creating opportunities for licensing and monetization. These strategies will further strengthen Datasea’s position in the global market and enhance its innovation capacity.

Taking into account the Chief Financial Officer (CFO) and Chief Technology Officer (CTO), the Company’s executive team comprises seven members, including four males and three females.

Taking into account the Chief Financial Officer (CFO) and Chief Technology Officer (CTO), the Company’s executive team comprises seven members, including four males and three females. This reflects the Company’s commitment to and demonstration of diversity, equality, and transparency.

Certification Certificate No. 36 Xunrui smart security integrated management platform v1.0 Ruan Zhu Deng Zi No.5201855 37 Xunrui big data visual analytics platform v1.0 Ruan Zhu Deng Zi No.5201772 38 Xunrui visual recognition algorithm platform v1.0 Ruan Zhu Deng Zi No.5201824 39 Xunrui non-visual recognition algorithm platform v1.0 Ruan Zhu Deng Zi No.5201861 40 Xunrui epidemic prevention and control linkage early warning system v1.0 Ruan Zhu Deng Zi No.5201704 41 Xunrui smart campus security management system v1.0 Ruan Zhu Deng Zi No.5201776 42 Xunrui smart scenic area security management system v1.0 Ruan Zhu Deng Zi No.5201574 43 Xunrui smart community security management system v1.0 Ruan Zhu Deng Zi No.5201869 44 Xunrui smart one-key alarm management system v1.0 Ruan Zhu Deng Zi No.5201784 45 Xunrui smart guest management system v1.0 Ruan Zhu Deng Zi No.5201780 46 Xunrui O2O community group Shopping Mall system V1.0 Ruan Zhu Deng Zi No.9940999 47 Xunrui Smart Campus Security cloud platform system V1.0 Ruan Zhu Deng Zi No.9941054 48 Xunrui Wisdom canteen arrangement system V1.0 Ruan Zhu Deng Zi No.9941000 49 Xunrui aggregation message cloud platform V1.0 Ruan Zhu Deng Zi No.9941047 50 Xunrui B2B2C online mall system V1.0 Ruan Zhu Deng Zi No.9941055 51 Xunrui Wisdom Canteen Food traceability system V1.0 Ruan Zhu Deng Zi No.9995289 52 Xunrui 5G message cloud platform V1.0 Ruan Zhu Deng Zi No.9995307 53 Xunruirong media information marketing platform Ruan Zhu Deng Zi No.10318231 54 Xunrui comprehensive online Office OA System Ruan Zhu Deng Zi No.10318229 55 Xunrui integrated security cloud platform Ruan Zhu Deng Zi No.10318227 56 Xunrui Smart Apartment management system Ruan Zhu Deng Zi No.10318271 57 Xunrui Aggregate payment and settlement system Ruan Zhu Deng Zi No.10318221 58 Xunrui AI intelligent algorithm analysis platform Ruan Zhu Deng Zi No.10318230 59 Xunrui intelligent acoustic recognition system Ruan Zhu Deng Zi No.10318269 60 Xunrui Intelligent Park management system Ruan Zhu Deng Zi No.10318270 61 Xunrui Wisdom Catering System Ruan Zhu Deng Zi No.10318268 62 Xunrui satellite remote sensing - Agricultural Management System Ruan Zhu Deng Zi No.10318228 28 Software Copyrights owned by Tianjin Information No.

Certification Certificate No. 40 Xunrui smart security integrated management platform v1.0 Ruan Zhu Deng Zi No.5201855 41 Xunrui big data visual analytics platform v1.0 Ruan Zhu Deng Zi No.5201772 42 Xunrui visual recognition algorithm platform v1.0 Ruan Zhu Deng Zi No.5201824 43 Xunrui non-visual recognition algorithm platform v1.0 Ruan Zhu Deng Zi No.5201861 44 Xunrui epidemic prevention and control linkage early warning system v1.0 Ruan Zhu Deng Zi No.5201704 45 Xunrui smart campus security management system v1.0 Ruan Zhu Deng Zi No.5201776 46 Xunrui smart scenic area security management system v1.0 Ruan Zhu Deng Zi No.5201574 47 Xunrui smart community security management system v1.0 Ruan Zhu Deng Zi No.5201869 48 Xunrui smart one-key alarm management system v1.0 Ruan Zhu Deng Zi No.5201784 49 Xunrui smart guest management system v1.0 Ruan Zhu Deng Zi No.5201780 50 Xunrui O2O community group Shopping Mall system V1.0 Ruan Zhu Deng Zi No.9940999 51 Xunrui Smart Campus Security cloud platform system V1.0 Ruan Zhu Deng Zi No.9941054 52 Xunrui Wisdom canteen arrangement system V1.0 Ruan Zhu Deng Zi No.9941000 53 Xunrui aggregation message cloud platform V1.0 Ruan Zhu Deng Zi No.9941047 54 Xunrui B2B2C online mall system V1.0 Ruan Zhu Deng Zi No.9941055 55 Xunrui Wisdom Canteen Food traceability system V1.0 Ruan Zhu Deng Zi No.9995289 56 Xunrui 5G message cloud platform V1.0 Ruan Zhu Deng Zi No.9995307 57 Xunruirong media information marketing platform RuanZhuDeng Zi No.10318231 58 Xunrui comprehensive online Office OA System RuanZhuDeng Zi No.10318229 59 Xunrui integrated security cloud platform RuanZhuDeng Zi No.10318227 60 Xunrui Smart Apartment management system RuanZhuDeng Zi No.10318271 61 Xunrui Aggregate payment and settlement system RuanZhuDeng Zi No.10318221 62 Xunrui AI intelligent algorithm analysis platform RuanZhuDeng Zi No.10318230 63 Xunrui intelligent acoustic recognition system RuanZhuDeng Zi No.10318269 64 Xunrui Intelligent Park management system RuanZhuDeng Zi No.10318270 65 Xunrui Wisdom Catering System RuanZhuDeng Zi No.10318268 66 Xunrui satellite remote sensing - Agricultural Management System RuanZhuDeng Zi No.10318228 67 Xungrui iot terminal service gateway platform V1.0 RuanZhu Deng Zi No10357761 68 Xungrui intelligent community integrated management platform V2.0 RuanZhu Deng Zi No10357535 69 Xungrui smart community integrated management client platform V1.0 RuanZhu Deng Zi No10312678 70 “CoAI CPaaS” interactive artificial intelligence precision reach analysis platform v1.0 RuanZhu Deng Zi No11659754 71 Cloud Customer Resource Management system v1.0 RuanZhu Deng Zi No11652683 72 Big data attribute label analysis marketing push system RuanZhu Deng Zi No11877356 73 Micro, small and medium-sized enterprises 5G messaging application platform v1.0 RuanZhu Deng Zi No12233860 74 Xungrui iot cloud platform V1.0 RuanZhu Deng Zi No12450190 75 Xungrui smart canteen security system V1.0 Ruan Zhu Deng Zi No12576381 40 Software Copyrights owned by Tianjin Information No.

Mergers and Acquisitions (M&A) and Joint Ventures : Datasea can expand its products and services portfolio by engaging in mergers and acquisitions or forming joint ventures to meet the growing market demands. Identifying companies that are related to or complementary to the Company’s existing domains of expertise can help Datasea rapidly expand its business and market scale.

Mergers and Acquisitions (M&A) and Joint Ventures: Datasea can expand its product and service portfolio globally through mergers and acquisitions or by forming joint ventures to meet growing market demands. By identifying companies that are related to or complementary to its existing areas of expertise, Datasea can rapidly scale its business and market presence.

Ultrasound, or ultrasonics, is the science and technology of sound at frequencies beyond what we can hear. It has a wide range of applications, from medical and health, industrials/inspections, and agriculture.

Among these, ultrasound technology, particularly in the areas of air purification, beauty, and agricultural pest control, holds immense market potential. Ultrasound, or ultrasonics, is the science and technology of sound at frequencies beyond what we can hear. It has a wide range of applications, from medical and health, industrials/inspections, and agriculture.

Patent Acquisition and Technology Protection : Datasea prioritizes the acquisition of U.S. patents to protect its innovations and intellectual property. Rapidly securing U.S. patents for its technologies is essential to maintain its competitive advantage and defend against potential infringement.

Patent Acquisition and Technology Protection: Building on its extensive portfolio of Chinese patents, Datasea prioritizes acquiring U.S. patents to protect its innovations and intellectual property. Rapidly securing U.S. patents is crucial for maintaining competitive advantage and defending against potential infringement.

The Company checks whether the manufacturing quality of outsourcing partners meets the Company’s requirements by assigning resident personnel to do sample test of manufactured goods and collecting feedback from the customer experience. 32 Outsourcing partners and outsourced products As of June 30, 2023, we have established partnerships with approximately 60 outsourcing partners.

The Company checks whether the manufacturing quality of outsourcing partners meets the Company’s requirements by assigning resident personnel to do sample test of manufactured goods and collecting feedback from the customer experience. 44 Outsourcing manufacturing partners As of June 30, 2024, we have established relationships with approximately five outsourced manufacturing partners and a supplier system of approximately 40 suppliers to provide various components and services for the company’s new acoustic high-tech products.

One of the biggest applications of Schumann resonance is to treat insomnia, which is to help people improve their sleep quality. Infrasound is a wave phenomenon of the same physical nature as sound but with frequencies below the range of human hearing, specifically below a frequency of 20 Hz.

Infrasound is a wave phenomenon of the same physical nature as sound but with frequencies below the range of human hearing, specifically below a frequency of 20 Hz.

Item 1. Description of Business Overview Company Structure Datasea Inc. is a technology company incorporated in Nevada, USA on September 26, 2014, with subsidiaries and operating entities located in Delaware, US and China, that provides intelligent acoustics (including ultrasound, infrasound, directional sound, and Schumann resonance), 5G messaging and other products and services to various corporate and individual customers.

Item 1. Description of Business Overview Company Structure Datasea Inc. is a technology company incorporated in Nevada, USA, on September 26, 2014, with subsidiaries and operating entities located in Delaware, US, and China.

Sales and Distribution As of the date of this report, our acoustic products are mainly developed and produced in China, and the products we sell in China are mainly through: 1) The sales department of Shuhai Beijing and its subsidiaries directly sign sales contracts with customers.

Sales and Distribution As of the date of this report, our acoustic products are mainly developed and produced in China, and the products we sell in China are mainly through multi-channels and extensively cooperating with new media.

This reflects the Company’s commitment to and demonstration of diversity, equality, and transparency. 23 Endorsement from the third-party technical certification : Leading third-party labs such as the Wuhan Institute of Virology have proven this ultrasonic disinfection technology to have 99.83% efficacy in nine seconds against Covid-19 and 99.99% efficacy against Staphylococcus Albus and E-col.

Additionally, three of the company’s core business subsidiaries in China have established equity holding platforms, attracting interest groups such as core teams of the subsidiaries and sales cooperation teams, thereby maximizing the incentive effects. 35 Endorsement from the third-party technical certification : Leading third-party labs such as the Wuhan Institute of Virology have proven this ultrasonic disinfection technology to have 99.83% efficacy in nine seconds against Covid-19 and 99.99% efficacy against Staphylococcus Albus and E-col.

Comprehensive air disinfection, and specialized sterilization suitable for environments such as hospitals, airports, hotels, transportation and residential buildings. ● Ultrasonic air sterilization products ● Air purification and deodorization products: For restroom model For cloakroom model ● New products planned Skin Repair Robot (Coming soon) Sleep Monitor (Coming soon) Production mode In the Chinese market, on the basis of a comprehensive understanding of the industry and the market, the Company has adopted the model of manufacturing outsourcing in the production of intelligent acoustic hardware products and an independent or joint design model in product appearance, and established the control process of “prototype selection - prototype determination - content determination - replication efficiency and replication effect” on the basis of product line standardization.

Schumann Vibration-Based Sleep Aid Production mode In the Chinese market, on the basis of a comprehensive understanding of the industry and the market, the Company has adopted the model of manufacturing outsourcing in the production of acoustic high tech hardware products and an independent or joint design model in product appearance, and established the control process of “prototype selection - prototype determination - content determination - replication efficiency and replication effect” on the basis of product line standardization.

Leading labs such as the Wuhan Institute of Virology have proven this ultrasonic disinfection technology to have 99.83% efficacy in nine seconds against Covid-19 and 99.99% efficacy against Staphylococcus Albus and E-col.

These products are suitable for environments such as hospitals, airports, hotels, transportation, and residential settings. Leading laboratories, including the Wuhan Institute of Virology, have proven that this ultrasonic disinfection technology achieves 99.83% efficacy against Covid-19 within nine seconds and 99.99% efficacy against Staphylococcus Albus and E. coli.

The raw materials used in the Hailijia air disinfection and sterilization products series primarily include 40KHz ultrasonic kill module, Shipu DC brushless motors, temperature and humidity sensors, dust sensors, ultraviolet lamps and HEPA13 level layered filters. Market Results Datasea sells acoustic intelligence products through our direct sales team and a select network of distributors and online channel partners.

The Agreement marks an important step for Datasea in the production and deployment of its newly upgraded hi-tech intelligent acoustic deodorization and disinfection products. The raw materials used in the Hailijia air disinfection and sterilization products series primarily include 40KHz ultrasonic kill module, Shipu DC brushless motors, temperature and humidity sensors, dust sensors, ultraviolet lamps and HEPA13 level layered filters.

Additionally, Schumann resonance has shown effectiveness in sleep health and directional audio plays a crucial role in specific content delivery and personal privacy protection, among other applications. Among these, ultrasound technology, particularly in the areas of air purification, beauty, and agricultural pest control, holds immense market potential.

For example, ultrasound technology has promising application prospects in various sectors, including healthcare, industrial, environmental protection, beauty, and agriculture. Additionally, Schumann resonance has shown effectiveness in sleep health and directional audio plays a crucial role in specific content delivery and personal privacy protection, among other applications.

Shuhai Beijing possesses cutting-edge products and solutions in intelligent acoustics and 5G messaging applications to support commercial enterprises, households and individuals in China. Internationalization has always been a crucial strategy for the Company. Datasea incorporated a wholly-owned subsidiary, Datasea Acoustics LLC, based in the State of Delaware, USA.

Shuhai Beijing possesses cutting-edge products and solutions in acoustics high tech and 5G AI multimodal digital applications to support commercial enterprises, households and individuals in China. 1 The development and internationalization of acoustic products, including acoustic industry, acoustic agriculture, acoustic medicine, and acoustic health, have always been a crucial strategy for the Company.

This will help ensure that the Company gains a competitive advantage in global markets and creates sustainable value for its shareholders. 3 VIE Agreements Shuhai Information Technology Co., Ltd. (“Shuhai Beijing” or the “VIE”) is the VIE of our corporate group that is under contractual control by Datasea.

In summary, Datasea can pursue its business strategy through international business expansion, technological innovation, contracts and collaborations, and a sustainable growth approach. This will help ensure that the Company gains a competitive advantage in global markets and creates sustainable value for its shareholders. 4 VIE Agreements Shuhai Information Technology Co., Ltd.

Specifically, according to the frequency of sound waves, they are divided into sound waves, ultrasound waves, and infrasound waves. The function of sound waves is to transmit vibration energy and information. A sound wave is a wave that travels through a medium in the form of vibration.

The function of sound waves is to transmit vibration energy and information. A sound wave is a wave that travels through a medium in the form of vibration. The vibrating object causes the air layer particles around it to compress and expand alternately.

Additionally, the Company, together with MIIT, Key Laboratory of Artificial Intelligence Key Technology and Application Evaluation and Informatization, CAICT Cloud Computing & Big Data Research Institute, released China’s inaugural white paper on the acoustic intelligence industry. The paper shares compelling analysis and fact findings on intelligent acoustics technology, the commercialization of the technology, and the industry outlook.

China’s inaugural White Paper on High-Tech Acoustic Industry.Additionally, the company has jointly released China’s first white paper on the high-tech acoustic industry with the Ministry of Industry and Information Technology, the Key Laboratory for Artificial Intelligence Technologies and Applications Evaluation, and the Cloud Computing and Big Data Research Institute of the China Academy of Information and Communications Technology.

Meanwhile, this strategic shift and process are aimed at offering people more effective solutions for purifying their environments and healthier lifestyles for people not only in China, but also the United States and globally, particularly in the post-pandemic era when people have raised higher demands for protection and quality of life.

This strategic shift aims to offer more effective environmental purification solutions and healthier lifestyles, serving China, the United States, and globally, particularly in the post-pandemic era when there is a higher demand for protection and quality of life.

The vibrating object causes the air layer particles around it to compress and expand alternately. This change is from near to far, so that the vibration of the excited object spreads at a certain speed. The transmission of this vibration energy is the nature of the propagation of sound waves.

This change is from near to far, so that the vibration of the excited object spreads at a certain speed. The transmission of this vibration energy is the nature of the propagation of sound waves. Datasea’s acoustic high-tech business focuses on key applications of sound waves, integrating basic acoustic theory with artificial intelligence.

We are currently seeking other outsourcing partners and looking for new opportunities to retain and optimize our outsourcing and supply chain resources. Government Regulation and Licenses Our operations are subject to and affected by PRC laws and regulations.

Government Regulation and Licenses Our operations are subject to and affected by PRC laws and regulations.

Industry Application and Market Scale There continues to be significant demand and diverse opportunities for the integration of acoustics with fields such as life and health, natural resources, and agriculture. For example, ultrasound technology has promising application prospects in various sectors, including healthcare, industrial, environmental protection, beauty, and agriculture.

This method of disinfection is a broad-spectrum, non-selective approach distinct from antibiotics. 16 Industry Application and Market Scale There continues to be significant demand and diverse opportunities for the integration of acoustics with fields such as life and health, natural resources, and agriculture.

Industry Position of Acoustics Business The Company holds a prominent position in the field of acoustics, particularly in areas such as ultrasound, infrasound, and directional sound.

Our comprehensive planning includes technological advancements, specialized applications, product development, and customer orientation, with a focus on continuously launching smarter acoustic high-tech products. 18 Industry Position of Acoustics Business The Company holds a prominent position in the field of acoustics, particularly in areas such as ultrasound, infrasound, and directional sound.

With a diverse product lineup, we strive to achieve a global leading position in this field within three years. In a strategic move to demonstrate its presence in the global arena, Datasea established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware, USA, on July 31, 2023.

With a diverse product lineup, we strive to achieve a global leading position in this field within three years.

The sales team of Shuhai Beijing and its subsidiaries cover the core economic zones of China in Beijing, Northeast China, the Yangtze River Delta, and the Guangdong Hong Kong Macao Greater Bay Area, promoting various products and services. 2) Sales Channels Shuhai Beijing and its subsidiaries have established cooperative relationships with multiple domestic sales and channel merchants and established a nationwide marketing channel network through a partnership system.

The sales team of Shuhai Beijing and its subsidiaries cover the core economic zones of China in Beijing, Northeast China, the Yangtze River Delta, and the Guangdong Hong Kong Macao Greater Bay Area, promoting various products and services. 3) Online Distributors and Living Stream The Company expands its coverage and increases market penetration by collaborating with multiple online distributors, living stream platform and selling innovative products on major e-commerce platforms.

As of September 2023, Shuhai Beijing has four currently valid patents (all patents here are PRC registered), Xunrui Technology has two valid patents and Tianjin Information has one currently valid patent, Shenzhen Jingwei has three valid patents, Shenzhen Acoustic has four valid patents, Shuhai Beijing also has twelve patent applications under substantive examination, as shown below: The Company actively develops and uses acoustic intelligent technologies and products to establish technical barriers and thresholds that are different from other competitors.

Xunrui also has three patents under substantive examination, and Datasea Beijing has two patent applications currently under substantive examination. The details are as follows: The company is actively developing and applying advanced acoustic technology and products to establish technical barriers and thresholds distinct from its competitors.

Regulatory Compliance : When expanding into international markets, the Company needs to closely adhere to regulations and laws in various countries and regions. Ensuring compliance is crucial for our long-term success. In summary, Datasea can pursue its business strategy through international business expansion, technological innovation, contracts and collaborations, and a sustainable growth approach.

Regulatory Compliance : When expanding into international markets, the Company needs to closely adhere to regulations and laws in various countries and regions. Ensuring compliance is crucial for our long-term success. Cost Control and Efficiency Improvement: Optimize enterprise operational processes, reduce costs, enhance production efficiency and resource utilization efficiency to strengthen profitability.

Comprehensive air disinfection, and specialized sterilization suitable for environments such as hospitals, airports, hotels, transportation and residential areas.

Products for restroom and cloakroom purification and deodorization. Application Scenarios : Professional sterilization products suitable for environments such as hospitals, airports, hotels, transportation vehicles, and residential areas. Strategic Positioning : Purification of living environments.

These collaborations can encompass product sales, technical cooperation, and joint research and development, helping to stabilize revenue and expand market share. Compensation and Incentives : In recognition of the contributions made to the Company’s growth by its directors, executives, employees, consultants, and other external partners, the Company has established a multi-layered compensation and incentive system.

For instance, through M&A and collaborations in the U.S. market, Datasea can further solidify its foundation, market depth, and brand localization in the high-tech acoustics industry. Compensation and Incentives: To recognize the contributions of directors, executives, employees, consultants, and other external partners to the Company’s growth, a multi-layered compensation and incentive system has been established.

These collaborations further solidify the Company’s leading position in the field of acoustics, providing a strong foundation for future innovations and development. 14 In addition, the Company, together with MIIT, Key Laboratory of Artificial Intelligence Key Technology and Application Evaluation and Informatization, CAICT Cloud Computing & Big Data Research Institute, released China’s inaugural white paper on the acoustic intelligence industry.

These collaborations further solidify the Company’s leading position in the field of acoustics, providing a strong foundation for future innovations and development.

General information As date of the financial year ended June 30, 2023, our acoustic products primarily consist the “HailiJia” series of ultrasonic air sterilization products, including 1) In-door models (floor and desktop models) suitable for different areas and functions, and 2) In-vehicle models; 3) Restroom and Cloakroom purification and deodorization.

Datasea’s Acoustic Products As of the end of the fiscal year on June 30, 2024, our acoustic products primarily include several series in the field of acoustic health, specifically: Existing Products These include six acoustic health products featuring efficient ultrasonic disinfection, which are: 1. Indoor models suitable for different areas and functions (floor-standing and desktop types); 2. In-vehicle models; 3.

In the event that we are unable to enforce these contractual arrangements, or if we suffer significant time delays or other obstacles in the process of enforcing these contractual arrangements, it would be very difficult to exert effective control over the consolidated VIE, and our ability to conduct our business and our financial condition and results of operations may be materially and adversely affected. 33 Our Organizational Structure The Company’s organizational chart as of September 24, 2024 is as follows: Please refer to the discussion in NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES of the Notes to the Consolidated Financial Statements under Item 8 of this Annual Report for a narrative of our organization structure and operating subsidiaries, including their dates of incorporation and history. 34 Competitive Strengths The Company believes our market position and potential future growth can be attributed to the following key factors and competitive strengths: Technical Innovation: Our company has made significant strides in acoustic technology, incorporating advanced ultrasonic technology and artificial intelligence (AI) to enhance product performance.

Research and Development has always been the core and driving force of the Company’s development. The Company strengthens the application and industrialization of the unique intelligent acoustics technology Landing services and fully implements the industrial and technological layout of acoustic sterilization, acoustic medical beauty, acoustic medical treatment, acoustic agriculture, and acoustic detection.

Research and development have always been the core and driving force behind the company’s growth. The company is enhancing the application and industrialization of its unique acoustic high-tech services, implementing a comprehensive industrial technology layout in fields such as acoustic industrial applications, acoustic agriculture applications, acoustic medical care, acoustic health, and acoustic IoT technologies.

Securities and Exchange Commission (SEC) and declared effective by the SEC on July 21, 2023. 21 Our CORPORATE History and STRUCTURE VIE Agreements Datasea relies on contractual arrangements with the consolidated VIE and its shareholders, Zhixin Liu, Chairman of the Board, President, CEO of Datasea and Corporate Secretary, and Fu Liu, a Director of the Datasea (Fu Liu is the father of Zhixin Liu), to operate our business.

All share amounts have been retroactively restated to reflect the reverse stock split for all periods presented. 32 Our CORPORATE History and STRUCTURE Historical information about Datasea, Shuhai Beijing and its subsidiaries is incorporated by reference from our Annual Report on Form 10-K for the fiscal year June 30, 2020 filed with the SEC on September 28, 2020 (“2020 Annual Report”) under the caption “History and Background.” VIE Agreements Datasea relies on contractual arrangements with the consolidated VIE and its shareholders, Zhixin Liu, Chairman of the Board, President, CEO of DataSea and Corporate Secretary, and Fu Liu, a Director of the DataSea (Fu Liu is the father of Zhixin Liu), to operate our business.

Together with artificial intelligence (AI), machine learning and data analytic capability, our Acoustics and 5G intelligent products and solutions are able to serve more than 48.42 million enterprises and businesses of all types (over 99% are SMEs) and households in China with digital and intelligent services.

Datasea’s 5G AI multimodal digital business solutions provide 5G digital and intelligent services, as well as various value-added services, to more than 48.42 million enterprises and institutions (over 99% of which are small and medium-sized enterprises) and households in China.

Combined with artificial intelligence (AI), machine learning and data analytics, our Acoustics and 5G intelligent products and solutions are able to serve more than 48.42 million enterprises of all types (over 99% are SMEs) and households in China.

We combine acoustic chemistry, mechanical transduction, and vibrational dynamics with artificial intelligence (AI), large language models, and data analytics. Our acoustic high-tech products and 5G AI multimodal communication solutions serve over 48.42 million enterprises (with over 99% being small and medium-sized enterprises) and households in China.

Key Suppliers and Raw Materials Our 5G messaging products are generally software systems or platforms, mainly developed by the Company's inhouse research and development team. Market Results Datasea helps the digital transformation and upgrading of cities and enterprises in the Chinese market through its self-developed 5G messaging platforms.

From August 2023 to June 2024, Qingdao Osaidi Network Technology Co., LTD. ’s operating income was USD 4.68 million (equivalent to RMB 33.35 million). Key Suppliers and Raw Materials Our 5G AI multimodal digital products are generally software systems or platforms, mainly developed by the Company’s in-house research and development team.

Publication Number Description Application Status Shuhai Beijing: 1 CN109146406A The attendance system of Shuhai Information based on GPS positioning information supported RFID technologies Substantive examination 2 CN108985423A An electronic student card system of Shuhai Information Substantive examination 3 CN111191540A An object status analysis method and system based on thermal gradient Substantive examination 4 CN111243623A A method, device and system concerning progressive audio alarm Substantive examination 5 CN111179527A An alarm method, device, system and storage medium based on dynamic audio information Substantive examination 6 CN111191656A Behavior recognition method and system based on multi-spectral image information Substantive examination 7 CN2019113640070 An S-AIOT information management method and system based on consensus mechanism Substantive examination 8 CN111212445A An S-AIOT information processing method and system based on neural network Substantive examination 9 CN111179969A An alarm method, device, system and storage medium based on audio information substantive examination Xunrui Technology : 10 202110164267.4 The invention relates to an intelligent temperature detection method, device and electronic equipment Substantive examination 11 202110162293.3 Facial expression recognition method, device and electronic equipment based on complex scene Substantive examination Shuhai Zhangxun: 12 2021114316160 Intelligent information communication system based on 5G message Substantive examination Shuhai Jingwei: 13 202210811431.0 A high frequency acoustic effect air coupled microbial elimination method and device Accepted 26 Major products The Company mainly focuses on developing the following two categories of products: software and smart hardware devices.

Removed

The acoustic business offers a wide range of cutting-edge products including high-quality sonic air disinfection solutions, skin repair and beauty solutions, as well as sleep-aid devices. Our products find extensive applications across various industries and sectors, including sonic antivirus, sonic beauty, sonic medical treatments, and sonic agriculture.

Added

The company provides acoustic business services (focusing on high-tech acoustic technologies and applications such as ultrasound, infrasound, and Schumann resonance), 5G application services (5G AI multimodal digital business), and other products and services to various corporate and individual customers. In the acoustic business sector, Datasea is a global pioneer of the “acoustic effect” concept.

Removed

Datasea Acoustics LLC, established on July 31, 2023, exemplifies our strategy aimed at the global market, driven by the U.S. market, and provides “intelligent acoustics” technology and products, which is a transformative blend of acoustics and artificial intelligence.

Added

Utilizing global leading “Acoustics + AI” precision manufacturing as the digital application framework, and leveraging sound wave technologies combined with acoustic effects as the technological system, the company outputs acoustic high-tech products and solutions worldwide. Datasea strives to be a leader in the development of China’s high-tech precision manufacturing in the acoustic industry.

Removed

The launch of Datasea Acoustics LLC in the U.S. serves a dual purpose: it solidifies Datasea’s commitment to the field of Intelligent Acoustics and emphasizes the Company’s plan to introduce cutting-edge antivirus acoustic solutions to the U.S. market.

Added

Our products have wide-ranging applications across various industries and sectors, including acoustic agriculture, acoustic industry, acoustic medicine, acoustic health, and acoustic IoT technologies. In the 5G application sector, Datasea provides digital and intelligent services to enterprises and individual users in China, leveraging AI, machine learning, and data analytic capabilities to offer a wide range of 5G application products and solutions.

Removed

Datasea Acoustics LLC will begin to provide leading and high-quality ultrasonic air sterilizers, bathroom and cloakroom sterilizers and odor removal products, as well as continuous new products including ultrasonic Skin Repair Robots and Schumann frequency sleep monitors to the global market, mainly the U.S. market, catering to a broad and growing global consumer base.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

74 edited+11 added−18 removed240 unchanged

2023 filing

2024 filing

Biggest changeAlthough the PRC government has been pursuing economic reform policies for more than two decades, there is no assurance that the government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption, or other circumstances affecting the PRC’s political, economic and social environment. 44 The approval and/or other requirements of the CSRC or other mainland China governmental authorities may be required in connection with our issuance of securities overseas under mainland China rules, regulations or policies, and, if required, we cannot predict whether or for how long we will be able to obtain such approval or complete such other requirements.

Pursuant to the Data Security Management Regulations Draft, data processors holding more than one million users/users’ individual information shall be subject to cybersecurity review before listing abroad. Data processing activities refers to activities such as the collection, retention, use, processing, transmission, provision, disclosure, or deletion of data.

There remains uncertainty, however, as to how the Cybersecurity Review Measures and the Security Administration Draft will be interpreted or implemented and whether the PRC regulatory agencies, including the CAC, may adopt new laws, regulations, rules, or detailed implementation and interpretation related to the Cybersecurity Review Measures and the Security Administration Draft.

If any such new laws, regulations, rules, or implementation and interpretation come into effect, we will take all reasonable measures and actions to comply and to minimize the adverse effect of such laws on us.

Our ability to obtain additional capital on acceptable terms or at all is subject to a variety of uncertainties, including: ● investors’ perceptions of, and demand for, companies operating in China; ● conditions of the U.S. and other capital markets in which we may seek to raise funds; 37 ● our future results of operations, financial condition and cash flows ● governmental regulation of foreign investment in China; ● economic, political and other conditions in the United States, China and other countries; and ● governmental policies relating to foreign currency borrowings.

Our ability to obtain additional capital on acceptable terms or at all is subject to a variety of uncertainties, including: ● investors’ perceptions of, and demand for, companies operating in China; ● conditions of the U.S. and other capital markets in which we may seek to raise funds; ● our future results of operations, financial condition and cash flows ● governmental regulation of foreign investment in China; ● economic, political and other conditions in the United States, China and other countries; and ● governmental policies relating to foreign currency borrowings.

Our limited history may not provide a meaningful basis for investors to evaluate our business, financial performance and prospects. 35 Our independent registered public accounting firm’s auditors’ report includes an explanatory paragraph stating that there is substantial doubt about our ability to continue as a going concern. We are an early and development stage company and have limited financial resources.

Our limited history may not provide a meaningful basis for investors to evaluate our business, financial performance and prospects. Our independent registered public accounting firm’s auditors’ report includes an explanatory paragraph stating that there is substantial doubt about our ability to continue as a going concern. We are an early and development stage company and have limited financial resources.

Lastly, the draft contains proposals for significant fines for serious violations of up to RMB 50 million or 5% of annual revenues from the prior year. 53 Interpretation, application and enforcement of these laws, rules and regulations evolve from time to time and their scope may continually change, through new legislation, amendments to existing legislation and changes in enforcement.

Lastly, the draft contains proposals for significant fines for serious violations of up to RMB 50 million or 5% of annual revenues from the prior year. Interpretation, application and enforcement of these laws, rules and regulations evolve from time to time and their scope may continually change, through new legislation, amendments to existing legislation and changes in enforcement.

If we are not able to obtain additional capital, our ability to operate or expand our business may be impaired and our results of operations could be adversely affected. Our success is dependent on retaining key personnel who would be difficult to replace. Our success depends largely on the continued services of our key management and technical staff.

If we are not able to obtain additional capital, our ability to operate or expand our business may be impaired and our results of operations could be adversely affected. 51 Our success is dependent on retaining key personnel who would be difficult to replace. Our success depends largely on the continued services of our key management and technical staff.

The market price for our common stock may be volatile and subject to wide fluctuations due to factors such as: ● the perception of U.S. investors and regulators of U.S. listed Chinese companies; ● actual or anticipated fluctuations in our quarterly operating results; ● changes in financial estimates by securities research analysts; 56 ● negative publicity, studies or reports; ● conditions in Chinese and global cybersecurity product markets; ● our capability to match and compete with technology innovations in the industry; ● changes in the economic performance or market valuations of other companies in the same industry; ● announcements by us or our competitors of acquisitions, strategic partnerships, joint ventures or capital commitments; ● addition or departure of key personnel; ● fluctuations of exchange rates between RMB and the U.S. dollar; and ● general economic or political conditions in or impacting China.

The market price for our common stock may be volatile and subject to wide fluctuations due to factors such as: ● the perception of U.S. investors and regulators of U.S. listed Chinese companies; ● actual or anticipated fluctuations in our quarterly operating results; ● changes in financial estimates by securities research analysts; ● negative publicity, studies or reports; ● conditions in Chinese and global cybersecurity product markets; ● our capability to match and compete with technology innovations in the industry; 68 ● changes in the economic performance or market valuations of other companies in the same industry; ● announcements by us or our competitors of acquisitions, strategic partnerships, joint ventures or capital commitments; ● addition or departure of key personnel; ● fluctuations of exchange rates between RMB and the U.S. dollar; and ● general economic or political conditions in or impacting China.

Any such restrictions may materially affect such entities’ ability to make dividends or make payments, in service fees or otherwise, to us, which may materially and adversely affect our business, financial condition and results of operations. 47 Uncertainties with respect to the PRC legal system could have a material adverse effect on us.

Any such restrictions may materially affect such entities’ ability to make dividends or make payments, in service fees or otherwise, to us, which may materially and adversely affect our business, financial condition and results of operations. Uncertainties with respect to the PRC legal system could have a material adverse effect on us.

Liu to abide by the laws of the State of Nevada and China, which provide that directors owe a fiduciary duty to the Company that requires them to act in good faith and in what they believe to be the best interests of the Company and not to use their position for personal gains.

Liu and Mr. Liu to abide by the laws of the State of Nevada and China, which provide that directors owe a fiduciary duty to the Company that requires them to act in good faith and in what they believe to be the best interests of the Company and not to use their position for personal gains.

As a consequence, we cannot be certain that the equity interest will be disposed pursuant to the contractual arrangement or ownership by the record holder of the equity interest. All of these contractual arrangements are governed by PRC law and provide for the resolution of disputes through arbitration in the PRC.

As a consequence, we cannot be certain that the equity interest will be disposed pursuant to the contractual arrangement or ownership by the record holder of the equity interest. 55 All of these contractual arrangements are governed by PRC law and provide for the resolution of disputes through arbitration in the PRC.

In addition, the following supply chain-related issues could adversely affect our customer relationships, operating results and financial condition: ● a reduction or interruption in supply of one or more components; ● a significant increase in the price of one or more components； ● a failure to adequately authorize procurement of inventory by our contract manufacturers; and ● a failure to appropriately cancel, reschedule or adjust our requirements based on our business needs. 36 Over the long term, we intend to invest in engineering, sales, service and marketing activities, and these investments may achieve delayed, or lower than expected, benefits which could harm our operating results.

In addition, the following supply chain-related issues could adversely affect our customer relationships, operating results and financial condition: ● a reduction or interruption in supply of one or more components; ● a significant increase in the price of one or more components； ● a failure to adequately authorize procurement of inventory by our contract manufacturers; and ● a failure to appropriately cancel, reschedule or adjust our requirements based on our business needs. 49 Over the long term, we intend to invest in engineering, sales, service and marketing activities, and these investments may achieve delayed, or lower than expected, benefits which could harm our operating results.

According to the latest amended Cybersecurity Review Measures, which was promulgated on November 16, 2021 and became effective on February 15, 2022, an online platform operator holding more than one million users/users’ individual information shall be subject to cybersecurity review before listing abroad. 52 As of the date of this report, Datasea, its subsidiaries, the VIE and VIE’s subsidiaries have not received any notice from any authorities requiring the PRC subsidiaries to go through cybersecurity review or network data security review by the CAC.

According to the latest amended Cybersecurity Review Measures, which was promulgated on November 16, 2021 and became effective on February 15, 2022, an online platform operator holding more than one million users/users’ individual information shall be subject to cybersecurity review before listing abroad. 64 As of the date of this report, Datasea, its subsidiaries, the VIE and VIE’s subsidiaries have not received any notice from any authorities requiring the PRC subsidiaries to go through cybersecurity review or network data security review by the CAC.

In light of the various requirements imposed by PRC regulations on loans to and direct investment in PRC entities by offshore holding companies, we cannot assure you that we will be able to complete the necessary government registrations or obtain the necessary government approvals on a timely basis. 49 We must remit offering proceeds to China in a future securities issuance before they may be used to benefit our business in China, the process of which may be time-consuming, and we cannot assure that we can complete all necessary governmental registration processes in a timely manner.

In light of the various requirements imposed by PRC regulations on loans to and direct investment in PRC entities by offshore holding companies, we cannot assure you that we will be able to complete the necessary government registrations or obtain the necessary government approvals on a timely basis. 61 We must remit offering proceeds to China in a future securities issuance before they may be used to benefit our business in China, the process of which may be time-consuming, and we cannot assure that we can complete all necessary governmental registration processes in a timely manner.

Shuhai Beijing may, from time to time, be subject to restrictions on its ability to make distributions to us, including restrictions on the conversion of RMB into U.S. dollars or other hard currency and other regulatory restrictions. 58

In addition, appreciation or depreciation in the exchange rate of the Renminbi to the U.S. dollar could materially and adversely affect the price of shares of our common stock in U.S. dollars without giving effect to any underlying change in our business or results of operations. 46 Restrictions on currency exchange may limit our ability to receive and use our revenue effectively.

In addition, appreciation or depreciation in the exchange rate of the Renminbi to the U.S. dollar could materially and adversely affect the price of shares of our common stock in U.S. dollars without giving effect to any underlying change in our business or results of operations. 59 Restrictions on currency exchange may limit our ability to receive and use our revenue effectively.

Compliance with these requirements may make it more difficult and time consuming for holders of our common stock to resell their shares to third parties or to otherwise dispose of them in the market or otherwise. 57 FINRA sales practice requirements may also limit your ability to buy and sell shares of our common stock, which could depress the price of shares of our common stock.

Compliance with these requirements may make it more difficult and time consuming for holders of our common stock to resell their shares to third parties or to otherwise dispose of them in the market or otherwise. 69 FINRA sales practice requirements may also limit your ability to buy and sell shares of our common stock, which could depress the price of shares of our common stock.

Such a shift could have a material adverse effect on our business and prospects. 48 Certain PRC regulations, including the M&A Rules and national security regulations, may require a complicated review and approval process which could make it more difficult for us to pursue growth through acquisitions in China.

Such a shift could have a material adverse effect on our business and prospects. 60 Certain PRC regulations, including the M&A Rules and national security regulations, may require a complicated review and approval process which could make it more difficult for us to pursue growth through acquisitions in China.

Our management has assessed the effectiveness of our internal control over financial reporting with an assessment report as of June 30, 2023, and plans to shorten the cycle and increase the frequency concerning the testing cycle for the effectiveness of internal control measures. The annual risk control assessment reporting system will be improved to a quarterly risk control assessment system.

Our management has assessed the effectiveness of our internal control over financial reporting with an assessment report as of June 30, 2024, and plans to shorten the cycle and increase the frequency concerning the testing cycle for the effectiveness of internal control measures. The annual risk control assessment reporting system will be improved to a quarterly risk control assessment system.

By the end of the fiscal year ended June 30, 2023, we have established a Risk Control Department led by the internal control director and external legal counsels to ensure the Company’s compliance with relevant regulations and risk management requirements.

By the end of the fiscal year ended June 30, 2024, we have established a Risk Control Department led by the internal control director and external legal counsels to ensure the Company’s compliance with relevant regulations and risk management requirements.

We also set up the International Affair Department to strengthen our compliance and financing management in the international capital market. 39 Our compliance with complicated U.S. regulations concerning corporate governance and public disclosure will result in additional expenses.

We also set up the International Affair Department to strengthen our compliance and financing management in the international capital market. 52 Our compliance with complicated U.S. regulations concerning corporate governance and public disclosure will result in additional expenses.

As a result, our business operations and our ability to make distributions to you could be materially and adversely affected. 50 We may be subject to fine due to our insufficient payment of the social insurance and housing fund of the employees.

As a result, our business operations and our ability to make distributions to you could be materially and adversely affected. 62 We may be subject to fine due to our insufficient payment of the social insurance and housing fund of the employees.

We cannot assure you that when conflicts of interest arise, any or all of these shareholders will act in the best interests of our company or such conflicts will be resolved in our favor. Currently, we do not have any arrangements to address potential conflicts of interest between these shareholders and our company. We rely on Ms. Liu and Mr.

We cannot assure you that when conflicts of interest arise, any or all of these shareholders will act in the best interests of our company or such conflicts will be resolved in our favor. 56 Currently, we do not have any arrangements to address potential conflicts of interest between these shareholders and our company. We rely on Ms.

Thus, unless Datasea requests an appeal of that determination pursuant to procedures set forth in the Nasdaq Listing Rule 5800 Series, trading of Datasea’s common stock will be suspended at the opening of business on June 20, 2023, and a Form 25-NSE will be filed with the SEC, which will remove Datasea’s securities from listing and registration on Nasdaq.

Thus, unless Datasea requests an appeal of that determination pursuant to procedures set forth in the Nasdaq Listing Rule 5800 Series, trading of Datasea’s common stock will be suspended at the opening of business on June 20, 2023, and a Form 25-NSE will be filed with the Securities and Exchange Commission (the “SEC”), which will remove Datasea’s securities from listing and registration on Nasdaq.

On December 9, 2022 , Datasea received a deficiency letter from the Listing Qualifications Department (the “Staff”) of the Nasdaq Stock Market (“Nasdaq”) notifying Datasea that, for the preceding 30 consecutive business days, Datasea ’s Market Value of Listed Securities (“MVLS”) was below the $35 million minimum requirement for continued inclusion on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(b)(2) (the “MVLS Requirement”).

As previously reported, on December 9, 2022, Datasea received a deficiency letter from the Listing Qualifications Department (the “Staff”) of the Nasdaq Stock Market (“Nasdaq”) notifying Datasea that, for the preceding 30 consecutive business days, Datasea’s Market Value of Listed Securities (“MVLS”) was below the $35 million minimum requirement for continued inclusion on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(b)(2) (the “MVLS Requirement”).

Subsequently, o n June 8, 2023, Datasea received a letter from Nasdaq indicating that Datasea had not regained compliance with the Rule (the “Delisting Notice”), and that accordingly, its securities will be delisted from Nasdaq.

Subsequently, on June 8, 2023, Datasea received a letter from Nasdaq indicating that Datasea had not regained compliance with the Rule (the “Delisting Notice”), and that accordingly, its securities will be delisted from Nasdaq.

A substantial portion of our business and revenue depends on the growth of intelligent acoustics, 5G communication in the PRC and globally, including the continued development and expansion of the Internet.

A substantial portion of our business and revenue depends on the growth of acoustics high tech , 5G communication in the PRC and globally, including the continued development and expansion of the Internet.

(the “Company”) entered into a subscription agreement with a non-U.S. investor (the “Investor B”), pursuant to which the Company agreed to sell and Investor B agreed to purchase an aggregate of 2,962,963 shares of common stock at a $1.35 per share purchase price, with a total subscription price of $4,000,000.

On August 15, 2023, Datasea Inc. (the “Company”) entered into a subscription agreement with a non-U.S. investor (the “Investor B”), pursuant to which the Company agreed to sell and Investor B agreed to purchase an aggregate of 2,962,963 shares of common stock at a $1.35 per share purchase price, with a total subscription price of $4,000,000.

For a description of our corporate structure and contractual arrangements, see “Our Organizational Structure” on page 22 and “VIE Agreements” on page 4. We believe that our corporate structure and contractual arrangements comply with the current applicable PRC laws and regulations.

For a description of our corporate structure and contractual arrangements, see “Our Organizational Structure” on page 34 and “VIE Agreements” on page 5. 54 We believe that our corporate structure and contractual arrangements comply with the current applicable PRC laws and regulations.

While we intend to focus on managing our costs and expenses, over the long term, we also intend to invest in personnel and other resources related to our engineering, sales, service and marketing functions as we realign and dedicate resources to key growth areas, such as intelligent acoustics, 5G messaging and other products and services.

While we intend to focus on managing our costs and expenses, over the long term, we also intend to invest in personnel and other resources related to our engineering, sales, service and marketing functions as we realign and dedicate resources to key growth areas, such as acoustics high tech , 5G AI multimodal digital and other products and services.

If we fail to anticipate and adapt to these changes and evolutions, our sales, gross margins and profitability will be adversely affected. Technologies change rapidly in the intelligent acoustics, 5G messaging industries with frequent new products and service developments and evolving industry standards.

If we fail to anticipate and adapt to these changes and evolutions, our sales, gross margins and profitability will be adversely affected. Technologies change rapidly in the acoustics high tech, 5G AI multimodal digital industries with frequent new products and service developments and evolving industry standards.

In addition, if the imposition of any of these penalties or requirement to restructure our corporate structure causes us to lose the rights to direct the activities of the consolidated VIE or our right to receive their economic benefits, we would no longer be able to consolidate the financial results of such VIE in our consolidated financial statements, which may cause the value of our securities to significantly decline or even become worthless. 42 We depend upon the VIE Agreements in conducting our business in the PRC, which may not be as effective as equity ownership.

Our business and operations could be seriously harmed as a result of any of these risks. Risks Relating to Our Business and Industry We have a limited operating history as a developer of intelligent acoustics, 5G messaging and other products and services.

Our business and operations could be seriously harmed as a result of any of these risks. Risks Relating to Our Business and Industry We have a limited operating history as a developer of acoustics high tech, 5G AI multimodal digital and other products and services.

If these services become unavailable, we would be required to identify and enter into new agreements with other contract manufacturer or take the manufacturing in-house. The loss of our contract manufacturers could significantly disrupt production as well as increase the cost of production.

All of our operations are conducted in the PRC. Although the PRC economy has grown significantly in recent years, there is no assurance that this growth will continue. A slowdown in overall economic growth, an economic downturn, a recession or other adverse economic developments in the PRC could significantly reduce the demand for our products and services.

A slowdown or other adverse developments in the PRC economy may harm our customers and the demand for our services and our products. All of our operations are conducted in the PRC. Although the PRC economy has grown significantly in recent years, there is no assurance that this growth will continue.

For the time being, we are primarily depending on contribution from shareholders, equity financing and cash income. If cash from such sources is insufficient or unavailable, or if cash is used for unanticipated needs, we may require additional capital sooner than anticipated.

As such, we expect that we will need additional capital to fund our future growth. For the time being, we are primarily depending on contribution from shareholders, equity financing and cash income. If cash from such sources is insufficient or unavailable, or if cash is used for unanticipated needs, we may require additional capital sooner than anticipated.

In accordance with such two agreements and a subsequent supplementary agreement, Investor A shall pay a total purchase price of $5,712,000 in RMB, at an amount of RMB 40,000,000, no later than September 30, 2023. On September 21, the Company has received all of the payment of RMB 40,000,000. On August 15, 2023, Datasea Inc.

Such shares must be held for a period of 365 days. In accordance with such two agreements and a subsequent supplementary agreement, Investor A shall pay a total purchase price of $5,712,000 in RMB, at an amount of RMB 40,000,000, no later than September 30, 2023. On September 21, the Company has received all of the payment of RMB 40,000,000.

China’s overall economy and the average wage in the PRC are expected to continue to grow. Future increases in China’s inflation and material increases in the cost of labor may materially and adversely affect our profitability and results of operations. Our auditor is headquartered in the United States and is subject to inspection by the PCAOB on a regular basis.

Future increases in China’s inflation and material increases in the cost of labor may materially and adversely affect our profitability and results of operations. 63 Our auditor is headquartered in the United States and is subject to inspection by the PCAOB on a regular basis.

If prices for our services and products rise at a rate that is insufficient to compensate for the rise in the costs of supplies, it may have an adverse effect on profitability.

Rapid economic growth can lead to growth in the money supply and rising inflation. If prices for our services and products rise at a rate that is insufficient to compensate for the rise in the costs of supplies, it may have an adverse effect on profitability.

Even if you are successful in effecting service of process and bringing an action of this kind, the laws of China may render you unable to enforce a judgment against our assets or the assets of our directors and officers.

Ms. Zhixin Liu and Mr. Fu Liu are majority shareholders of Datasea and the shareholders of the VIE, Shuhai Beijing. Ms. Liu is our Chairman, Chief Executive Officer, President and Secretary, while Mr. Liu is one of our directors. They may have potential conflicts of interest with us.

The shareholders of the VIE may have potential conflicts of interest with us, which may materially and adversely affect our business and financial condition. Ms. Zhixin Liu and Mr. Fu Liu are majority shareholders of Datasea and the shareholders of the VIE, Shuhai Beijing. Ms. Liu is our Chairman, Chief Executive Officer, President and Secretary, while Mr.

An inability to cure a product defect could result in the failure of a product line, temporary or permanent withdrawal from a product or market, damage to our reputation, additional inventory costs, or product reengineering expenses, any of which could have a material adverse impact on our revenue, margins and net income.

If any of the transactions entered into by the subsidiary and the PRC operating affiliate are found not to have been conducted on an arm’s length basis or to result in an unreasonable reduction in tax under PRC law, the PRC tax authorities have the authority to disallow tax savings, adjust the profits and losses of the respective PRC entities and assess late payment interest and penalties. 43 The shareholders of the VIE may have potential conflicts of interest with us, which may materially and adversely affect our business and financial condition.

Furthermore, the Archives Rules also provides that securities companies and securities service providers shall also fulfill the applicable legal procedures when providing overseas regulatory institutions and other relevant institutions and individuals with documents or materials containing any state secrets or government authorities work secrets or other documents or materials that, if divulged, will jeopardize national security or public interest. 45 A slowdown or other adverse developments in the PRC economy may harm our customers and the demand for our services and our products.

Any intellectual property litigation could have a material adverse effect on our business, financial condition or results of operations . 54 Risks Relating to An Investment in Our Common Stock If we fail to comply with the continued listing requirements of Nasdaq, we would face possible delisting, which would result in a limited public market for our shares and make obtaining future debt or equity financing more difficult for us.

Risks Relating to An Investment in Our Common Stock If we fail to comply with the continued listing requirements of Nasdaq, we would face possible delisting, which would result in a limited public market for our shares and make obtaining future debt or equity financing more difficult for us.

We are still in the process of developing, marketing and expansion of our business. We expect that our intelligent acoustics (including ultrasound, infrasound, directional sound, and Schumann resonance), 5G messaging and other products and services will be our core business in the future. We have limited experience and operating history in developing and marketing our products and services.

We are still in the process of developing, marketing and expansion of our business. We expect that our acoustics high tech (including ultrasound, infrasound, directional sound, and Schumann resonance), 5G AI multimodal digital and other products and services will be our core business in the future.

Such delisting from The Nasdaq Capital Market and continued or further declines in Datasea’s share price could also greatly impair our ability to raise additional necessary capital through equity or debt financing, and could significantly increase the ownership dilution to stockholders caused by our issuing equity in financing or other transactions.

Such delisting from The Nasdaq Capital Market and continued or further declines in Datasea’s share price could also greatly impair our ability to raise additional necessary capital through equity or debt financing, and could significantly increase the ownership dilution to shareholders caused by our issuing equity in financing or other transactions 67 Our majority stockholders will control our Company for the foreseeable future, including the outcome of matters requiring shareholder approval.

Any failure or perceived failure by us or our third-party service-providers to comply with our privacy or security policies or privacy-related legal obligations, or any compromise of security that results in the unauthorized release or transfer of personally identifiable information or other user data, may result in governmental enforcement actions, litigation, or negative publicity, and could have an adverse effect on our business and operating results. 41 Risks Relating to Our Corporate Structure Our corporate structure, in particular, the Variable Interest Entity (or VIE), and their agreements (or VIE Agreements), are subject to significant risks, as set forth in the following risk factors.

In addition, in the event Datasea’s securities are delisted, broker-dealers have certain regulatory burdens imposed upon them, which may discourage broker-dealers from effecting transactions in Datasea’s securities, further limiting the liquidity of such securities. These factors could result in lower prices and larger spreads in the bid and ask prices for Datasea’s securities.

We cannot guarantee, however, that we will not be subject to cybersecurity review and network data security review in the future, which could materially and adversely affect our business, financial conditions, and results of operations. 66 We may be subject to intellectual property infringement claims, which may force us to incur substantial legal expenses and, if determined adversely to us, materially disrupt our business.

Successful infringement claims against us may result in substantial monetary liability or may materially disrupt the conduct of our business by restricting or prohibiting our use of the intellectual property in question. Any intellectual property litigation could have a material adverse effect on our business, financial condition or results of operations .

Violations of the FCPA may result in severe criminal or civil sanctions, and we may be subject to other liabilities, which could negatively affect our business, operating results and financial condition. In addition, the government may seek to hold our Company liable for successor liability FCPA violations committed by companies in which we invest or that we acquire.

From March 31, 2023, enterprises that have been listed overseas shall constitute existing enterprises and are not required to conduct the overseas listing filing procedure immediately, but shall carry out filing procedures as required if they conduct future offshore offerings or capital raising activities or are involved in other circumstances that require filing with the CSRC. 58 On February 24, 2023, the CSRC, together with other relevant government authorities, issued the Provisions on Strengthening Confidentiality and Archives Administration of Overseas Securities Offering and Listing by Domestic Companies, or the Archives Rules, which became effective on March 31, 2023.

Supply chain issues that increase our costs or cause a delay in our ability to fulfill orders, could have an adverse impact on our business and operating results, and our failure to estimate customer demand properly may result in excess or obsolete component supply, which could adversely affect our gross margins.

No assurance can be given that we will generate sufficient revenue or obtain the necessary financing to continue as a going concern and the failure to do so could cause us to cease our operations. 48 Supply chain issues that increase our costs or cause a delay in our ability to fulfill orders, could have an adverse impact on our business and operating results, and our failure to estimate customer demand properly may result in excess or obsolete component supply, which could adversely affect our gross margins.

In addition, our securities may be prohibited from trading on a national exchange or over-the-counter in the United States under the Holding Foreign Companies Accountable Act, if the PCAOB determines that it cannot inspect or fully investigate our auditors for two consecutive years.

China’s regulators may impose penalties for non-compliance ranging from fines or suspension of operations, and this could lead to us delisting from the U.S. stock market. 65 In addition, our securities may be prohibited from trading on a national exchange or over-the-counter in the United States under the Holding Foreign Companies Accountable Act, if the PCAOB determines that it cannot inspect or fully investigate our auditors for two consecutive years.

Any violation of these laws could result in investigations, claims, changes to our business practices, increased cost of operations and declines in user growth, retention or engagement, any of which could materially adversely affect our business, results of operations and financial condition. 53 In November 2016, the Standing Committee of the National People’s Congress passed China’s first cybersecurity law, or CSL, which took effect in June 2017.

In addition, the market for our products and services is highly competitive.

We have limited experience and operating history in developing and marketing our products and services. In addition, the market for our products and services is highly competitive.

Because we store, process and use data, some of which contain personal information, we are subject to complex and evolving federal, state and foreign laws and regulations regarding privacy, data protection and other matters. Many of these laws and regulations are subject to constant evolvement and change and uncertain interpretation.

We may be subject to liability if private information that we receive is not secure or if we violate privacy laws and regulations. Because we store, process and use data, some of which contain personal information, we are subject to complex and evolving federal, state and foreign laws and regulations regarding privacy, data protection and other matters.

In November 2016, the Standing Committee of the National People’s Congress passed China’s first cybersecurity law, or CSL, which took effect in June 2017. The CSL systematically lays out cybersecurity and data protection regulatory requirements and subjects many previously under-regulated or unregulated activities in cyberspace and data management to government scrutiny.

The CSL systematically lays out cybersecurity and data protection regulatory requirements and subjects many previously under-regulated or unregulated activities in cyberspace and data management to government scrutiny.

Our majority stockholders will control our Company for the foreseeable future, including the outcome of matters requiring shareholder approval. Our officers and directors collectively hold approximately 50.4% beneficial ownership of our Company. Two directors are members of the same family.

Our officers and directors collectively hold approximately 50.4% beneficial ownership of our Company. Two directors are members of the same family.

There is no statutory recognition in the PRC of judgments obtained in the United States. 51 Increases in labor costs in the PRC may adversely affect our business and our profitability. The economy of China has been experiencing significant growth, leading to inflation and increased labor costs.

Increases in labor costs in the PRC may adversely affect our business and our profitability. The economy of China has been experiencing significant growth, leading to inflation and increased labor costs. China’s overall economy and the average wage in the PRC are expected to continue to grow.

Risks Associated With Doing Business in China Changes in the policies of the PRC government could have a significant impact upon the business we may be able to conduct in the PRC and the profitability of our business.

As a result, you will not have the same protections afforded to shareholders of companies that are subject to all of the corporate governance requirements of the NASDAQ Stock Market. 57 Risks Associated With Doing Business in China Changes in the policies of the PRC government could have a significant impact upon the business we may be able to conduct in the PRC and the profitability of our business.

These changes could have a material adverse effect on our business and results of operations. 38 We have seen a substantial improvement and progress in our internal control over financial reporting.

We have seen a substantial improvement and progress in our internal control over financial reporting.

There may be patents issued or pending that are held by others that cover significant aspects of our technologies, products, business methods or services. As we face increasing competition and as litigation becomes more common in China in resolving commercial disputes, we face a higher risk of being the subject of intellectual property infringement claims.

As we face increasing competition and as litigation becomes more common in China in resolving commercial disputes, we face a higher risk of being the subject of intellectual property infringement claims.

Controversies may arise in the future between these two countries that may affect our economic outlook both in the United States and in China. Any political or trade controversies between the United States and China, whether or not directly related to our business, could reduce the price of our common stock.

Any political or trade controversies between the United States and China, whether or not directly related to our business, could reduce the price of our common stock. Future inflation in China may inhibit the profitability of our business in China. In recent years, the Chinese economy has experienced periods of rapid expansion and high rates of inflation.

On August 1, 2023, the “Company entered into two separate subscription agreements with a certain non-U.S. investor (“Investor A”), pursuant to which the Company agreed to sell and Investor A agreed to purchase an aggregate of 4,760,000 shares of common stock price at a $1.2 per share purchase price. Such shares must be held for a period of 365 days.

We have generated revenue of $23,975,867 from our business during the year ended June 30, 2024, and our expenses will be accrued until sufficient financing is obtained or bank loan us the necessary funds to pay for these expenses. 47 On August 1, 2023, the “Company entered into two separate subscription agreements with a certain non-U.S. investor (“Investor A”), pursuant to which the Company agreed to sell and Investor A agreed to purchase an aggregate of 4,760,000 shares of common stock price at a $1.2 per share purchase price.

Our business requires significant levels of capital to finance the research and development of new products and service platforms that meet the constantly evolving industry standards and consumer demands. As such, we expect that we will need additional capital to fund our future growth.

If we are not able to obtain additional capital, our ability to operate or expand our business may be impaired and our results of operations could be adversely affected. Our business requires significant levels of capital to finance the research and development of new products and service platforms that meet the constantly evolving industry standards and consumer demands.

If we do not achieve the benefits anticipated from these investments, or if the achievement of these benefits is delayed, our operating results may be adversely affected. Our business substantially depends upon the continued growth of intelligent acoustics, 5G messaging and other products and services, the decrease of which could have a negative impact on our business.

If we do not achieve the benefits anticipated from these investments, or if the achievement of these benefits is delayed, our operating results may be adversely affected.

We had cash balances of $164,217 and $19,728 as of June 30, 2022 and June 30, 2023, respectively. We generated revenues of $7,045,311 during the year ended June 30, 2023. We had a net cash outflow of $144,489 during fiscal year ended June 30, 2023. We had a deficit of approximately $28,067,500 at June 30, 2023.

We had cash balances of $19,728 and $181,261 as of June 30, 2023, and June 30, 2024, respectively. We generated revenues of $23,975,867 during the year ended June 30, 2024. We had a net cash inflow of $161,534 during fiscal year ended June 30, 2024.

If relations between the United States and China worsen, investors may be unwilling to hold or buy our stock and our stock price may decrease . At various times during recent years, the United States and China have had significant disagreements over political and economic issues.

At various times during recent years, the United States and China have had significant disagreements over political and economic issues. Controversies may arise in the future between these two countries that may affect our economic outlook both in the United States and in China.

We may be subject to intellectual property infringement claims, which may force us to incur substantial legal expenses and, if determined adversely to us, materially disrupt our business. Internet and technology companies are frequently involved in litigation based on allegations of infringement of intellectual property rights, unfair competition, invasion of privacy, defamation and other violations of third-party rights.

Internet and technology companies are frequently involved in litigation based on allegations of infringement of intellectual property rights, unfair competition, invasion of privacy, defamation and other violations of third-party rights. The validity, enforceability and scope of protection of intellectual property in Internet-related industries, particularly in China, are uncertain and still evolving.

The financing sought may be in the form of equity or debt financing or a combination of both from various sources as yet unidentified. No assurance can be given that we will generate sufficient revenue or obtain the necessary financing to continue as a going concern and the failure to do so could cause us to cease our operations.

The financing sought may be in the form of equity or debt financing or a combination of both from various sources as yet unidentified.

The validity, enforceability and scope of protection of intellectual property in Internet-related industries, particularly in China, are uncertain and still evolving. In addition, many parties are actively developing and seeking protection for Internet-related technologies, including seeking patent protection.

In addition, many parties are actively developing and seeking protection for Internet-related technologies, including seeking patent protection. There may be patents issued or pending that are held by others that cover significant aspects of our technologies, products, business methods or services.

Removed

We have generated revenue of $7,045,311 from our business during the year ended June 30, 2023, and our expenses will be accrued until sufficient financing is obtained or our shareholders loan us the necessary funds to pay for these expenses.

Added

On July 2, 2024, the Company announced that it had entered into a share purchase agreement with SEG Opportunity Fund LLC, a U.S. institutional investor, to sell 692,308 shares of common stock (or common stock equivalent) in a private registered offering at an issue price of $3.25 per share (or common stock equivalent).

Removed

We will likely have to incur indebtedness or issue new equity securities to fund future growth. If we are not able to obtain additional capital, our ability to operate or expand our business may be impaired and our results of operations could be adversely affected.

Added

This includes the issuance of 179,400 ordinary shares at a price of $3.25 per share, representing 4.8% of the total post-issue share capital of 3,769,020; And the issuance to investors of 512,908 prepaid warrants in lieu of common stock at a price of $3.24 per warrant and an exercise price of $0.01 per warrant.

Removed

In addition, the government may seek to hold our Company liable for successor liability FCPA violations committed by companies in which we invest or that we acquire. 40 We may be subject to liability if private information that we receive is not secure or if we violate privacy laws and regulations.

Added

The offering closed on July 3, 2024, and 179,400 common shares have been issued and funds have arrived in the Company’s accounts. Datasea expects gross proceeds from the offering (before underwriting discounts, commissions and offering fees) to be $2,250,000.

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Item 2. Properties

Properties — owned and leased real estate

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2023 filing

2024 filing

Biggest changeTianjin Information Sea Information Technology Co., Ltd. signed a lease contract with Shenzhen Lvjing Real Estate Development Co., Ltd. on August 11, 2020. The building covers an area of 395.15 square meters and will be leased from August 8, 2020 to August 7, 2023 with a three months and ten days’ rent-free period.

Biggest changeThe building covers an area of 395.15 square meters and will be leased from August 8, 2020 to August 7, 2023 with a three months and ten days’ rent-free period. The monthly rent is approximately $29,851.22 (RMB 209,910.80). The rental will be increased by 3% per year from the second year on the basis of the previous year’s rental standard.

The rental for the second year is RMB 3.4 yuan/m 2 / day, with a total rental of RMB1,425,909, equivalent to $202,777.20. The house security deposit is RMB 115,311. 59 On January 14, 2021, Tianjin Information Sea Information Technology Co., Ltd./Hangzhou Zhexin Information Technology Co., Ltd.

The rental for the second year is RMB 3.4 yuan/m 2 / day, with a total rental of RMB1,425,909, equivalent to $202,777.20. The house security deposit is RMB 115,311. On January 14, 2021, Tianjin Information Sea Information Technology Co., Ltd./Hangzhou Zhexin Information Technology Co., Ltd.

Shuhai Jingwei (Shenzhen) Information Technology Co., Ltd. signed a lease contract with Shenzhen Hongfa real estate development Co., LTD. on August 15, 2023. The building covers an area of 321.87 square meters and will be leased from August 15, 2023 to August14, 2024 with a one months rent-free period. The monthly rent is approximately $6,493.05 (RMB 45,061.80).

The building covers an area of 321.87 square meters and will be leased from August 15, 2023 to August14, 2024 with a one month rent-free period. The monthly rent is approximately $6,493.05 (RMB 45,061.80). On August 14,2024, Shuhai Jingwei (Shenzhen) Information Technology Co., Ltd. Terminated the lease contract with Shenzhen Hongfa real estate development Co., LTD.

On February 8, 2023, Shuhai Information Technology Co.Ltd. signed a lease contract with Beijing Kaipeng Technology Development Co., Ltd. for a leased area of 391.06 square meters at a monthly rent of RMB 44,011.00 (US $6,342). The lease period is from 8 February 2023 to 7 November 2023.

The lease space is 553.11 square meters, On February 8, 2023, Shuhai Information Technology Co.Ltd. signed a lease contract with Beijing Kaipeng Technology Development Co., Ltd. for a leased area of 391.06 square meters at a monthly rent of RMB 44,011.00 (US $6,342).

The lease area is 279.43 square meters, the lease period is from May 10, 2023 to May 9, 2025, and the monthly rent is RMB 15,908.88 (US $2,292). In August 2019, we moved our headquarters from 1 Xinghuo Rd.

The lease area is 279.43 square meters, the lease period is from May 10, 2023 to May 9, 2025, and the monthly rent is RMB 15,908.88 (US $2,292).

Heilongjiang Xungrui renewed the lease agreement, the lease term is one year, the lease area is 218.25 square meters.the agreement was renewed from May 1, 2023 to April 30, 2024, the monthly rental is RMB23,571 (US $3,396) and the annual rental is RMB282,852 (US $40,756).We believe the rented space is sufficient for our current operations.

Heilongjiang Xungrui renewed the lease agreement, the lease term is one year, the lease area is 218.25 square meters.the agreement was renewed from May 1, 2023 to April 30, 2024, the monthly rental is RMB23,571 (US $3,396) and the annual rental is RMB282,852 (US $40,756).Then the agreement was renewed again from May 1, 2024 to April 30, 2025,the annual rental is still RMB 282,852.00 (USD 39,688.50 ） .

Item 2. Description of Property. We currently do not own any real estate or land use rights. We lease office space of approximately 2,007.46 square meters from Beijing Kaipeng Technology Co., Ltd. for our headquarters in Beijing under a lease agreement. Our monthly rent is approximately $33,100 (RMB225,922.89).

We lease office space of approximately 2,007.46 square meters from Beijing Kaipeng Technology Co., Ltd. for our headquarters in Beijing under a lease agreement. Our monthly rent is approximately $33,100 (RMB225,922.89). The lease agreement expired on October 7, 2022, we received a six-month rent free (two months for each year) discount.

Changning Building, Suite 11D2E, Fengtai District, Beijing, China, to 20th Floor, Tower B, Guorui Plaza, 1 Ronghua South Road, Technological Development Zone, Beijing, PRC.

Item 2. Description of Property. We currently do not own any real estate or land use rights. In August 2019, we moved our headquarters from 1 Xinghuo Rd. Changning Building, Suite 11D2E, Fengtai District, Beijing, China, to 20th Floor, Tower B, Guorui Plaza, 1 Ronghua South Road, Technological Development Zone, Beijing, PRC.

The lease area is 566.04 square meters, and the lease period is from October 8, 2022 to November 07, 2023. The monthly rent is RMB 63,703 (US $9,179).

On October 8, 2022, Tianjin Information Sea Information Technology Co.Ltd. signed a lease contract with Beijing Kaipeng Technology Development Co., LTD. The lease area is 566.04 square meters, and the lease period is from October 8, 2022 to November 07, 2023.

The monthly rent is approximately $29,851.22 (RMB 20,9910.80). The rental will be increased by 3% per year from the second year on the basis of the previous year’s rental standard. On August 7, 2023, Tianjin Information Sea Information Technology Co., Ltd. and Shenzhen Lvjing Real Estate Development Co., Ltd. terminated the lease agreement.

On August 7, 2023, Tianjin Information Sea Information Technology Co., Ltd. and Shenzhen Lvjing Real Estate Development Co., Ltd. terminated the lease agreement. Shuhai Jingwei (Shenzhen) Information Technology Co., Ltd. signed a lease contract with Shenzhen Hongfa real estate development Co., LTD. on August 15, 2023.

Removed

The lease agreement expired on October 7, 2022, we received a six-month rent free (two months for each year) discount. On October 8, 2022, Tianjin Information Sea Information Technology Co.Ltd. signed a lease contract with Beijing Kaipeng Technology Development Co., LTD.

Added

The monthly rent is RMB 63,703 (US $9,179).After that the agreement was renewed again from Nov 8, 2023 to Dec 7, 2024,the annual rental is RMB 722,341.30 (USD 101,355.63),which include rental free from Nov 8 2024 to Dec 7 2024.

Added

The lease period is from 8 February 2023 to 7 November 2023.Then the agreement was renewed again from Nov 8, 2023 to Dec 7, 2024,the annual rental is RMB 208,301.15 (USD 29,227.86),which include rental free from Nov 8 2024 to Dec 7 2024. The lease Space is 159.50 square meters.

Added

We believe the rented space is sufficient for our current operations. 71 Tianjin Information Sea Information Technology Co., Ltd. signed a lease contract with Shenzhen Lvjing Real Estate Development Co., Ltd. on August 11, 2020.

Added

On Nov 10 2023, Guohao Century (Beijing) Technology Co., Ltd terminated the agreement with Hangzhou Lanxin Real Estate Co., LTD On August 16 2024, Shuhai Jingwei (Shenzhen) Information Technology Co., Ltd. signed a leasing agreement with Shenzhen Xunmei Technology Co., LTD.

Added

The house is located in Unit 1102, 11th floor, Building 2, Xunmei Technology Plaza, No.8 Keyuan Road, Yuehai Street, Nanshan District, Shenzhen, with a construction area of 1013 square meters. The lease period is from August 16, 2024 to August 15, 2027, for a total of three years, with a rent-free period of 5 months.

Added

The rent for the first and second years is 47.62 yuan/m2 / month, and the total rent is RMB1,920,420.00, equivalent to USD269,464.55. The rent for the third year is RMB 47.62 / m2 / month, and the total rental is RMB 1,108,789.00, equivalent to US $155,580.20, the house deposit is RMB202,600.00, equivalent to USD28,427.90.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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2023 filing

2024 filing

Biggest changeNo director, officer or affiliate of the Company, and no owner of record or beneficial owner of more than 5.0% of the securities of the Company, or any associate of any such director, officer or security holder is a party adverse to the Company or has a material interest adverse to the Company with reference to pending litigation.

Added

Mine Safety Disclosures. Not applicable. 72 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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2023 filing

2024 filing

Biggest changeOn June 20, 2023, the stockholders of the Company approved a further amendment to the 2018 Plan to increase the number of shares of the Company’s common stock reserved for issuance under the 2018 Equity Incentive Plan from 14,000,000 shares of common stock to 24,000,000 shares of common stock.

We have not made any repurchases of the equity securities of Datasea for the period covered by this report. Holder We had 102 holders of record of our common stock as of September 20, 2023. Dividends We do not anticipate paying dividends on our common stock at any time in the foreseeable future.

We have not made any repurchases of the equity securities of Datasea for the period covered by this report. Holder We had 103 holders of record of our common stock as of September 24, 2024. Dividends We do not anticipate paying dividends on our common stock at any time in the foreseeable future.

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information Our common stock started trading on the NASDAQ Capital Market under the symbol “DTSS” in 2018. Based on the records of our transfer agent, we had 32,784,133 shares of common stock issued and outstanding as of September 20, 2023.

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information Our common stock started trading on the NASDAQ Capital Market under the symbol “DTSS” in 2018. Based on the records of our transfer agent, we had 5,154,778 shares of common stock issued and outstanding as of September 24, 2024.

Removed

The following table provides certain information with respect to all of our compensation plans in effect as of June 30, 2023: Plan Category (A) Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (B) Weighted Average Exercise Price of Outstanding Options, Warrants and Rights (C) Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (excluding securities reflected in column(A)) Equity Compensation Plans approved by stockholders $ 6.00 101,500 Equity Compensation Plans not approved by stockholders — — — Total $ 61

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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2023 filing

2024 filing

Biggest changeAs one of the leading service providers in China’s 5G communication field, Datasea has several primary products and services targeting different customers and needs, including 5G Integrated Messaging Marketing Cloud Platform (“5G IMMCP”), Smart Push (precision marketing solution) and 5G messaging Top Up business related applications applicable to various industries in China.

Biggest changeThe Company’s research and develop results include but are not limited to the following: As one of the leading service providers in China’s 5G AI multimodal digital field, Datasea has several primary products and services targeting different customers and needs, including: 5G AI multimodal new media marketing service platform,5G AI multimodal Smart Agriculture (Digital Rural) Service Platform, 5G AI multimodal platform for small and micro-enterprise services platform and 5G AI multimodal traffic top up platform. 5G AI multimodal digital business applications applicable to various industries in China, and payment system applications combined with artificial intelligence (AI), big prediction mode and data analysis capabilities. 99 Datasea has completed a revolutionary upgrade of its core 5G multimodal communication business with AI processing technology.

At this stage, Shuhai is carrying out the development, operation and promotion services of the Internet of Things market and increasing the effective combination of resources with Mobile Internet enterprises and the Internet of Things industrial chain.

At this stage, Shuhai Beijing is carrying out the development, operation and promotion services of the Internet of Things market and increasing the effective combination of resources with Mobile Internet enterprises and the Internet of Things industrial chain.

Cash Flow from Investing Activities Net cash used in investing activities totaled $113,131 for the year ended June 30, 2023, which consisted of cash paid for the acquisition of office furniture and equipment of $3,881, cash paid for acquisition and development of software systems of $80,438, and long-term investment into high-tech companies of $28,812.

Net cash used in investing activities totaled $113,131 for the year ended June 30, 2023, which consisted of cash paid for the acquisition of office furniture and equipment of $3,881, cash paid for acquisition and development of software systems of $80,438, and long-term investment into high-tech companies of $28,812.

The Company, together with these partners, is dedicated to conducting research on new topics and developing novel technology applications to drive advancements in the field of acoustics. To better achieve this goal, the Company collaborated for oint laboratories to enhance the integration and collaboration of research resources.

In the international market, Datasea precisely targets U.S. households and large corporate customers including hospitals, hotels, and schools with leading and high-quality ultrasonic air sterilization, bathroom and cloakroom sterilization and odor removal products, helping to diversify risks and provide broader growth opportunities.

In the international market, Datasea intends to target U.S. households and large corporate customers including hospitals, hotels, and schools with leading and high-quality ultrasonic air sterilization, bathroom and cloakroom sterilization and odor removal products, helping to diversify risks and provide broader growth opportunities.

There can be no assurance the Company will become profitable or obtain necessary financing for its business and investments or that it will be able to continue in business and investments. The consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties. As of June 30, 2023, the Company had cash of $19,728.

Going Concern The accompanying unaudited consolidated financial statements were prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. For the years ended June 30, 2023 and 2022, the Company had a net loss of approximately $9.48 million and $6.52 million, respectively.

Going Concern The accompanying unaudited consolidated financial statements were prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. For the years ended June 30, 2024 and 2023, the Company had a net loss of approximately $11.38 million and $9.48 million, respectively.

In 2023, the 5G phone recharge business of Shuhai Information accounts for a relatively big proportion of the total revenue, because, at this stage, the business belongs to the early stage of the development, operation and promotion services of the Internet of Things market, and the investment in all aspects is large.

In 2023, the 5G AI multimodal digital business of Shuhai Information accounts for a relatively big proportion of the total revenue, because, at this stage, the business belongs to the early stage of the development, operation and promotion services of the Internet of Things market, and the investment in all aspects is large.

You should be aware that our actual results could differ materially from those contained in the forward-looking statements due to several factors, including: ● uncertainties relating to our ability to establish and operate our business and generate revenue; ● uncertainties relating to general economic, political, and business conditions in China; ● industry trends and changes in demand for our products and services; ● uncertainties relating to customer plans and commitments and the timing of orders received from customers; ● announcements or changes in our advertising model and related pricing policies or that of our competitors; ● unanticipated delays in the development, market acceptance, or installation of our products and services; ● changes in Chinese government regulations; ● availability, terms and deployment of capital, relationships with third-party equipment suppliers; and Overview Company Structure Datasea Inc. is a global technology company incorporated in Nevada USA on September 26, 2014, with subsidiaries and operating entities located in Delaware and China, that provides intelligent acoustics (including ultrasound, infrasound, directional sound, and Schumann resonance), 5G messaging and other products and services to various corporate and individual customers.

You should be aware that our actual results could differ materially from those contained in the forward-looking statements due to several factors, including: ● uncertainties relating to our ability to establish and operate our business and generate revenue; ● uncertainties relating to general economic, political, and business conditions in China; ● industry trends and changes in demand for our products and service ； ● uncertainties relating to customer plans and commitments and the timing of orders received from customers; ● announcements or changes in our advertising model and related pricing policies or that of our competitors; ● unanticipated delays in the development, market acceptance, or installation of our products and services; ● changes in Chinese government regulations; and ● availability, terms and deployment of capital, relationships with third-party equipment suppliers Overview Company Structure Datasea Inc. is a technology company incorporated in Nevada, USA, on September 26, 2014, with subsidiaries and operating entities located in Delaware, US, and China.

On September 13, 2023, our Company announced the closing of an underwritten public offering of 5,000,000 shares of common stock at a public offering price of $0.40 per share, for aggregate gross proceeds of $1,635,000, after deducting underwriting discounts and other offering expenses.

The shares must be held for a period of 180 days. On September 13, 2023, our Company announced the closing of an underwritten public offering of 5,000,000 shares of common stock at a public offering price of $0.40 per share, for net proceeds of $1,635,000, after deducting underwriting discounts and other offering expenses.

In accordance with such two agreements, Investor A shall pay a total purchase price of $5,712,000 in RMB, at an amount of RMB 40,000,000, no later than September 30, 2023. On September 21, the Company has received all of the payment of RMB 40,000,000.

In accordance with such two agreements, Investor shall pay a total purchase price of $5,712,000 in RMB, at an amount of RMB 40,000,000, no later than September 30, 2023.

Market diversification: In the domestic market, Datasea can continue to provide intelligent acoustics and 5G messaging products to various end users, such as corporate customers and household users, to ensure market diversification.

In addition, the gross profit of the phone charge recharging business is generally low. As a result, the annual gross profit margin decreased from the previous year.

In addition, the gross profit of the traffic top up business is generally low. As a result, the annual gross profit margin decreased from the previous year.

We believe these fundings demonstrate our investors’ confidence on our strategy and business. 73 If deemed necessary, management could seek to raise additional funds by the way of introducing strategic investors or private or public offerings, or by obtaining loans from banks or others, to support the Company’s research and development, procurement, marketing and daily operation.

If deemed necessary, management could seek to raise additional funds by the way of introducing strategic investors or private or public offerings, or by obtaining loans from banks or others, to support the Company’s research and development, procurement, marketing and daily operation.

The Company had an accumulated deficit of approximately $28.06 million as of June 30, 2023, and negative cash flow from operating activities of approximately $3.14 million and $5.14 million for the years ended June 30, 2023 and 2022, respectively.

The Company had an accumulated deficit of approximately $39.44 million as of June 30, 2024, and negative cash flow from operating activities of approximately $6.40 million and $3.14 million for the years ended June 30, 2024 and 2023, respectively.

Cash Flow from Financing Activities Net cash provided by financing activities was $3,109,207 during the year ended June 30, 2023, which was the net proceeds from loans payable of $2,197,400, and increase in due to related parties of $1,110,238, which was partly offset by repayment of loan payables of $198,431.

Net cash provided by financing activities was $3,109,207 during the year ended June 30, 2023, which was the net proceeds from loans payable of $2,197,400, and increase in due to related parties of $1,110,238, which was partly offset by repayment of loan payables of $198,431. 101 Loan from the unrelated parties On April 24, 2022, the Company entered a loan agreement with an unrelated party Mr.

Through the selective optimization and adjustment of the function of neurons through the magnetic induction of brain rhythm (MIBR), the monitor creates a natural frequency magnetic field similar to the Schumann frequency. 70 Key Features: 1) Reduce the impact of high-frequency radio waves on the human body, relieve anxiety and stress, and gradually relax the body and brain; 2) Resonate between the frequency of Device and the human body’s own frequency, induce brain waves to enter a deep sleep state, prolong the time of deep sleep, and improve the quality of deep sleep, thereby improving sleep and keeping users away from insomnia.

Key Features: 1) Reduce the impact of high-frequency radio waves on the human body, relieve anxiety and stress, and gradually relax the body and brain; 2) Resonate between the frequency of Device and the human body’s own frequency, induce brain waves to enter a deep sleep state, prolong the time of deep sleep, and improve the quality of deep sleep, thereby improving sleep and keeping users away from insomnia.

As of June 30, 2022, we had a working capital deficit of $867,774 or a current ratio of 0.59:1, and our current assets were $1,256,801. We expect the Company to continue to support its ongoing operations and financing through revenue growth and increased financing activities.

As of June 30, 2023, we had a working capital deficit of $3,617,058 or a current ratio of 0.26:1. Our current assets were $1,289,517. We expect the Company to continue to support its ongoing operations and financing through revenue growth and increased financing activities.

This includes incentives such as stock options for a publicly traded company (S-8) and equity holdings in core business subsidiaries. To date, the Company has consistently issued relevant stocks to directors, executives, employees, and external consultants as part of its stock incentive program.

We are treating the human capital as a key indicator to drive the business growth and technical innovation, also pursuing better integrated channels with related industries. Non-operating Income (Expenses), net Non-operating expense was $12,795 for the year ended June 30, 2023, consisting mainly of interest income of $219 and other expense of $13,014.

We are treating human capital as a key indicator to drive business growth and technical innovation, also pursuing better integrated channels with related industries.。 Non-Operating Expenses, net Non-operating expenses were $95,918 for the year ended June 30, 2024, consisting mainly of interest income of $1,975 and other expenses of $97,893.

Our Acoustics and 5G intelligent products and solutions are able to serve more than 48.42 million enterprises and businesses of all types (over 99% are SMEs) and households in China with digital and intelligent services.

Mergers and Acquisitions (M&A) and Joint Ventures: Datasea can expand its products and services portfolio by engaging in mergers and acquisitions or forming joint ventures to meet the growing market demands. Identifying companies that are related to or complementary to the Company’s existing domains of expertise can help Datasea rapidly expand its business and market scale.

On August 15, 2023, the Company entered into a subscription agreement with a non-U.S. investor to purchase an aggregate of 2,962,963 shares of common stock price at a $1.35 per share purchase price, with a total subscription price of $4,000,000. The shares must be held for a period of 180 days.

On September 21, the Company has received all of the payment of RMB 40,000,000. 95 On August 15, 2023, the Company entered into a subscription agreement with a non-U.S. investor to purchase an aggregate of 2,962,963 shares of common stock price at a $1.35 per share purchase price, with a total subscription price of $4,000,000.

Cash inflows generated from financing activities for the year ended June 30, 2023 were $3,307,638, compared to $7,781,640 in the same period last year. Although this year’s net cash inflows are 51% lower than last year’s net cash inflows from financing activities, this is entirely due to the company’s better financing outlook and more mature financing attitude.

Cash inflows generated from financing activities for the year ended June 30, 2024 were $6,839,577, compared to $3,109,207 in the same period last year. This year’s net cash inflows are 120% more than last year’s net cash inflows from financing activities, this is entirely due to the Company’s better financing outlook and more mature financing attitude.

However, such additional cash resources may not be available to us on desirable terms, or at all, if and when needed by us. As of June 30, 2023, we had working capital deficit of $3,617,058 or a current ratio of 0.26:1. Our current assets were $1,289,517.

However, such additional cash resources may not be available to us on desirable terms, or at all, if and when needed by us. As of March 31, 2024, we had a working capital deficit of $952,090 or a current ratio of 0.74:1, and our current assets were $2,647,892.

Leading laboratories, including the Wuhan Institute of Virology, have proven that this ultrasonic disinfection technology achieves 99.83% efficacy against Covid-19 within nine seconds and 99.99% efficacy against Staphylococcus Albus and E. coli.

This assessment was instrumental in understanding our ESG readiness and identifying our top ESG priorities. It served as the foundation for developing our ESG roadmap and implementation plan. Datasea’s ESG priority assessment is a cornerstone of our commitment to ESG integration. It helps us focus on the most significant ESG issues for both Datasea and our stakeholders.

It served as the foundation for developing our ESG roadmap and implementation plan. Datasea’s ESG priority assessment is a cornerstone of our commitment to ESG integration. It helps us focus on the most significant ESG issues for both Datasea and our stakeholders. Our priorities span environmental, social, and governance dimensions, ensuring a well-rounded approach.

The Company’s focus in this business is to integrate new resources, expand new businesses related to 5G, combine the Company’s years of deep cultivation and accumulation in 5G news, and take this opportunity to open up more 5G-related businesses to increase the Company’s revenue and new business. 75 In China’s mature and transparent market today, gross margins on services are far greater than those on hardware sales.

This year, the Company further segmented the market, planned eight regional headquarters, strengthened the collection control, and promoted the fund collection of contracted delivery projects, which led to the benign return of funds and had a far-reaching impact on the future.

This quarter, the Company further segmented the market, planned eight regional headquarters, strengthened the collection control, and promoted the fund collection of contracted delivery projects, which led to the benign return of funds and had a far-reaching impact on the future. 100 Liquidity and Capital Resources Historically, we have funded our operations primarily through the sale of our common stock and shareholder loans.

For example, the Company will provide the 5G IMMCP as SaaS software, customized and value-added services to improve profit margin. The Company will continue to increase the share of high gross profit products in the sales while increasing the revenue, so as to further improve the gross profit rate and give investors a better return on investment.

This will boost the profitability of the Company’s related businesses. The Company will continue to increase the share of high gross profit products in the sales while increasing the revenue, so as to further improve the gross profit rate and give investors a better return on investment.

In addition, the U.S. subsidiary, Datasea Acoustics, is actively acquiring U.S. patents, as well as international patents, and collaborating with U.S. universities and world-renowned research institutions. The Company holds an outstanding position in the field of acoustics, particularly in the areas such as ultrasound, infrasound, and directional sound.

The improvement of gross profit margin shows that the Company’s measures to improve gross profit margin are gradually showing effect: 1) costs will be reduced by economic scale over a larger number of customers base and the increase in production; 2) the Company, by adopting the differentiation strategy, grows brand recognition and customer loyalty, strengthening the Company’s pricing power; 3) after the commercialization of 5G messaging in the Chinese market (expected in the fourth quarter of 2022), the targeted customers and product will be expanded.

The improvement of gross profit margin shows that the Company’s measures to improve gross profit margin are gradually showing effect: 1) costs will be reduced by economic scale over a larger number of customers base and the increase in production; 2) the Company, by adopting the differentiation strategy, grows brand recognition and customer loyalty, strengthening the Company’s pricing power; 3) As the scale of 5G AI multimodal communicaiton traffic top up services and the number of serviced customers, along with service quality, continue to improve, customized and value-added services, as well as service fees, will gradually increase.

The increase in net loss was mainly due to the increase in operating expenses and decreased gross profit as explained above. Accounts receivable The operating revenue of the year ended June 30, 2023 was $7,045,311, the balance of accounts receivable was $255,725 at June 30, 2023.

The increase in net loss was mainly due to the increase in operating expenses which was partly offset by increased gross profit as explained above. Accounts receivable The operating revenue of the year ended June 30, 2024 was $23,975,867, the balance of accounts receivable was $718,546 at June 30, 2024.

We expect to generate revenues through expanding our current 5G messaging and acoustic intelligence business, and through continuous product innovation and development as well as various types of value-added services.

To enhance our ability to continue to operate as a going concern, we are dedicating resources to generate recurring revenues and sustainable operating cash flows. We expect to generate revenues through expanding our current 5G AI multimodal digital business and acoustic intelligence business, and through continuous product innovation and development as well as various types of value-added services.

Results of Operations Comparison of the years ended June 30, 2023 and 2022 The following table sets forth the results of our operations for the years ended June 30, 2023 and 2022, respectively, indicated as a percentage of net sales.

Significant Accounting Policies Please refer to our significant accounting policies in Note 2 to our consolidated financial statements included in this report. 96 Results of Operations Comparison of the Years ended June 30, 2024 and 2023 The following table sets forth the results of our operations for the years ended June 30, 2024 and 2023, respectively, indicated as a percentage of net sales.

In the same period last year, the operating revenue was $17,080,911, and the accounts receivable balance was $259,410 at June 30, 2022.

In the same period last year, the operating revenue was $3,640,690, and the accounts receivable balance was $255,725 at June 30, 2023.

Rapidly securing U.S. patents is crucial for maintaining competitive advantage and defending against potential infringement. This proactive patent acquisition strategy will ensure that Datasea’s intellectual property is protected in the U.S. market, while also creating opportunities for licensing and monetization. These strategies will further strengthen Datasea’s position in the global market and enhance its innovation capacity.

Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. 73 In some cases, you can identify forward-looking statements by terms such as “may,” “intend,” “might,” “will,” “should,” “could,” “would,” “expect,” “believe,” “anticipate,” “estimate,” “predict,” “potential,” or the negative of these terms.

This will help ensure that the Company gains a competitive advantage in global markets and creates sustainable value for its shareholders. Our Business Summary We deeply understand that the market needs new application areas, new technologies, and new requirements.

This will help ensure that the Company gains a competitive advantage in global markets and creates sustainable value for its shareholders. 77 Our Business Summary Acoustic business The company focuses on acoustic business with an emphasis on ultrasound, infrasound, and Schumann resonance technology .

Selling, General and Administrative, and Research and Development Expenses Selling expenses were $690,731 and $1,358,203 for the years ended June 30, 2023 and 2022, respectively, representing an decrease of $667,472 or 49%.

Selling, General and Administrative, and Research and Development Expenses Selling expenses were $3,279,627 and $372,639 for the years ended June 30, 2024 and 2023, respectively, representing an increase of $2,906,988 or 780.1%.

Gross Profit Gross profit for the year ended June 30, 2023 was $340,931 compared to $955,673 for the year ended June 30, 2022, which shows a $614,742 or 64% decrease by comparing with the same period of last fiscal year.

Gross Profit Gross profit for the year ended June 30, 2024 was $474,105 compared to $135,481 for the year ended June 30, 2023, which shows a $338,624 increase by comparing with the same period of last fiscal year. The increase in gross profit was mainly due to the increase in sales for the year ended June 30, 2024.

In some cases, you can identify forward-looking statements by terms such as “may,” “intend,” “might,” “will,” “should,” “could,” “would,” “expect,” “believe,” “anticipate,” “estimate,” “predict,” “potential,” or the negative of these terms. These terms and similar expressions are intended to identify forward-looking statements. The forward-looking statements in this report are based upon management’s current expectations, which it believes are reasonable.

These terms and similar expressions are intended to identify forward-looking statements. The forward-looking statements in this report are based upon management’s current expectations, which it believes are reasonable.

Technology Collaboration : Datasea can foster collaborations with renowned U.S. universities and research institutions through its U.S. subsidiary. By partnering with these institutions, the Company can engage in joint research and development initiatives to create and adopt cutting-edge acoustics high tech technologies.

To achieve this, we will disclose information about our ESG practices and performance through quarterly and annual ESG Reports and sustainability statements. Our progress in ESG integration and reporting during this quarter includes the followings: ESG Evaluation: In the third quarter of 2023, Datasea conducted a thorough ESG evaluation to assess our current performance and pinpoint areas for improvement.

Our progress in ESG integration and reporting during this fiscal year includes the followings: ESG Evaluation: In the second quarter of 2024, Datasea conducted a thorough ESG evaluation to assess our current performance and pinpoint areas for improvement. This assessment was instrumental in understanding our ESG readiness and identifying our top ESG priorities.

As part of our ongoing commitment to ESG, Datasea has adopted a comprehensive framework to align our operations with our values and priorities. This framework guides our decision-making processes andemphasized sustainable growth and long-term success. Transparency and accountability are central to our ESG approach. Starting from 2023, Datasea is committed to providing meaningful and accurate sustainability information to our stakeholders.

Moreover, it helps us foster positive relationships with stakeholders and enhance our reputation, giving Datasea a competitive advantage in an ever-evolving industry. 91 As part of our ongoing commitment to ESG, Datasea has adopted a comprehensive framework to align our operations with our values and priorities. This framework guides our decision-making processes andemphasized sustainable growth and long-term success.

However, there is no assurance that the Company will be able to secure such additional working capital on commercially viable terms or at all. 77 The following is a summary of cash provided by or used in each of the indicated types of activities during the years ended June 30, 2023 and 2022, respectively. 2023 2022 Net cash used in operating activities $ (3,136,081 ) $ (5,139,712 ) Net cash used in investing activities $ (113,131 ) $ (1,133,424 ) Net cash provided by financing activities $ 3,109,207 $ 6,379,304 Cash Flow from Operating Activities Net cash used in operating activities was $3,136,081 during the year ended June 30, 2023, compared to net cash used in operating activities of $5,139,712 during the year ended June 30, 2022, a decrease in cash outflow of $2,003,631.

The following is a summary of cash provided by or used in each of the indicated types of activities during the years ended June 30, 2024 and 2023, respectively. 2024 2023 Net cash used in operating activities $ (6,398,883 ) $ (3,136,081 ) Net cash used in investing activities $ (167,957 ) $ (113,131 ) Net cash provided by financing activities $ 6,839,577 $ 3,109,207 Cash Flow from Operating Activities Net cash used in operating activities was $6,398,883 during the year ended June 30, 2024, compared to net cash used in operating activities of $3,136,081 during the year ended June 30, 2023, an increase in cash outflow of $3,262,802.

Net cash provided by financing activities was $6,379,304 during the year ended June 30, 2022, which was the net proceeds from sale of our common stock through an equity financing of $7,681,796, proceeds from capital contribution from a major shareholder of $62,802, and increase in due to related parties of $37,042, but offset by repayment of loans payable of $1,402,336.

Cash Flow from Financing Activities Net cash provided by financing activities was $6,839,577 during the year ended June 30, 2024, which was the net proceeds from due to related parties of $360,804 and net proceeds from sale of our common stock through an equity financing of $8,061,286, which was partly offset by repayment of loan payables of $1,582,513.

China’s First White Paper on High-Tech Acoustic Industry.Additionally, the company has jointly released China’s first white paper on the high-tech acoustic industry with the Ministry of Industry and Information Technology, the Key Laboratory for Artificial Intelligence Technologies and Applications Evaluation, and the Cloud Computing and Big Data Research Institute of the China Academy of Information and Communications Technology.

The sales team of Shuhai Beijing and its subsidiaries cover the core economic zones of China in Beijing, Northeast China, the Yangtze River Delta, and the Guangdong Hong Kong Macao Greater Bay Area, promoting various products and services. 3) Online Distributors and Living Stream The Company expands its coverage and increases market penetration by collaborating with multiple online distributors, living stream platform and selling innovative products on major e-commerce platforms.

For the year ended June 30, 2023, the cost of 5G messaging was $6.57 million, the cost of intelligent acoustics business was $115,143, and the cost of other business was $14,844.

For the year ended June 30, 2023, the cost of 5G messaging was $3.41 million, the cost of Smart City business was $34,858, the cost of Acoustic Intelligence Business was $34,827 and the cost of other business was $25,083.

Regulatory Compliance: When expanding into international markets, the Company needs to closely adhere to regulations and laws in various countries and regions. Ensuring compliance is crucial for the long-term success. In summary, Datasea can pursue its business strategy through international business expansion, technological innovation, contracts and collaborations, and a sustainable growth approach.

In summary, Datasea can pursue its business strategy through international business expansion, technological innovation, contracts and collaborations, and a sustainable growth approach.

The Magnetic Induction of Brain Rhythm (MIBR) technology, which is mastered by the Company, can create a natural frequency magnetic field similar to Schumann frequency by selectively optimizing and regulating the function of neuronal cells through magnetic induction wave energy (MIBR).

“application scenarios supported by 5G are expanding from the Mobile Internet to the Mobile Internet of Things, and a new generation of high-speed, mobile, secure and ubiquitous information infrastructure will be built.” At the same time, 5G will accelerate the digital transformation of many industries and social life.” Combining the advantages of “Internet of Things+” intelligent terminals and 5G messaging industry chain, Shuhai Information is advancing with the time, taking the train of the 5G era, and developing 5G message/phone top up business.

Combining the advantages of “Internet of Things+” intelligent terminals and 5G messaging industry chain, Shuhai Beijing is advancing with the time, taking the train of the 5G era, and developing 5G Multimodal communication/phone top up business.

For a description of our corporate structure and contractual arrangements, see “Our Organizational Structure” on page 22 and “VIE Agreements” on page 4. 62 Datasea is not a Chinese operating company but a Nevada-based holding company with its Delaware subsidiary, Datasea Acoustics LLC, serving as our U.S.-based international business platform.

Datasea is not a Chinese operating company but a Nevada-based holding company with its Delaware subsidiary, Datasea Acoustics LLC, serving as our U.S.-based international business platform. Additionally, through the Company’s subsidiary in China – Tianjin Information Sea Information Technology Co., Ltd (“Shuhai Tianjin”) and the VIE, Shuhai Information Technology Co., Ltd.

Cost of Revenues We recorded $6,704,380 and $16,125,238 cost of revenues for the years ended June 30, 2023 and 2022, respectively, which shows a $9,420,858 or 58% decrease by comparing with the same period of 2022.

We incurred R&D expenses of $359,342 and $569,635 during the years ended June 30, 2024 and 2023, respectively, which shows a $210,293 or 36.9% decrease by comparing with the same period of 2023. Research and development expenses of $359,342 for year ended June 30, 2024.

These collaborations can encompass product sales, technical cooperation, and joint research and development, helping to stabilize revenue and expand market share. Compensation and Incentives: In recognition of the contributions made to the Company’s growth by its directors, executives, employees, consultants, and other external partners, the Company has established a multi-layered compensation and incentive system.

Industry Position of acoustics business The Company holds a prominent position in the field of acoustics, particularly in areas such as ultrasound, infrasound, and directional sound.

Focusing on the acoustic intelligence industry, we have established five key segments in the acoustic sector, leading the industry forward and providing cutting-edge acoustic intelligence technologies and products. 75 The Company holds an outstanding position in the field of acoustics, particularly in areas such as ultrasound, infrasound, and directional sound.

The decrease in gross profit was mainly due to the decrease in delivery of services related to the 5G SMS service platform in 2023. Gross margin is 4.8% for the year ended June 30, 2023 compared to 5.6% for the year ended June 30, 2022.

Gross margin is 2.0% and 3.7% for the years ended June 30, 2024 and 2023. The decrease in gross margin was mainly due to the lower gross profit margin of 5G AI multimodal digital service. Measures to improve the gross profit margin of enterprises: 1.

We pay more attention to financing planning issues and the cost of financing.

We pay more attention to financing planning issues and the cost of financing. Analysis of financial index For the years ended June 30, 2024, and 2023, revenue was $23,975,867 and $3,640,690, respectively.

For the year ended June 30, 2022, revenues mainly consisted of service fees from our 5G SMS service platform. From July 1, 2022 to June 30, 2023, the Company generated revenue of $7,045,311, including $6,686,691 from the 5G messaging business and $196,940 from the acoustic intelligence business, and $161,680 from other business.

From July 1, 2022 to June 30, 2023, the Company generated revenue of $3,640,690, including $3,437,713 from the 5G messaging business, $42,772 from Smart City Business and $81,275 from Acoustic Intelligence Business, and $78,930 from other business.

For the year ended June 30, 2023 and 2022, cost of revenues was mainly the 5G SMS service platform fees and Cloud Platform construction to suppliers. The decrease in cost of revenues was due mainly to the decrease sales of 5G SMS.

Cost of Revenues We recorded $23,501,762 and $3,505,209 cost of revenues for the years ended June 30, 2024 and 2023, respectively, which shows a $19,996,553 increase by comparing with the same period of 2023. For the year ended June 30, 2024, cost of revenues was mainly the 5G AI multimodal digital platform fees and Cloud Platform construction to suppliers.

Sound waves stimulate photosynthesis and nutrient absorption, promoting plant growth, development, and fruit quality, creating a pesticide-free or minimal pesticide environment in the plant farm. 83 Sales and Distribution As of the date of this report, our acoustic products are mainly developed and produced in China, and the products we sell in China are mainly through multi-channels and extensively cooperating with new media.

Net cash used in investing activities totaled $1,133,424 for the year ended June 30, 2022, which consisted of cash paid for the acquisition of office furniture and equipment of $51,340, cash paid for acquisition and development of software systems of $1,051,111, and long-term investment into high-tech companies of $30,973.

Cash Flow from Investing Activities Net cash used in investing activities totaled $167,957 for the year ended June 30, 2024, which consisted of cash paid for the acquisition of office furniture and equipment of $6,868, cash paid for acquisition of intangible assets by $161,054, and cash loss due to disposal of subsidiary of $35.

Our Products and Future Plans As date of the financial year ended June 30, 2023, our acoustic products primarily consist the “HailiJia” series of ultrasonic air sterilization products, including 1) In-door models (floor and desktop models) suitable for different areas and functions, and 2) In-vehicle models; 3) Restroom and Cloakroom purification and deodorization.

Indoor models suitable for different areas and functions (floor-standing and desktop types); 2. In-vehicle models; 3. Products for restroom and cloakroom purification and deodorization. Application Scenarios : Professional sterilization products suitable for environments such as hospitals, airports, hotels, transportation vehicles, and residential areas. Strategic Positioning : Purification of living environments.

New products planned: Skin Repair Robot (Coming soon): 6) Ultrasonic and Contactless 7) A purely physical way to repair damaged skin 8) shorten skin repair period 9) Artificial intelligence robotic arm with more precise control 10) AI real-time diagnosis Sleep Monitor (Coming soon): Hailijia Sleep Monitor adopts ultra-low frequency, weak intensity, and Magnetic induction of brain rhythm (MIBR), which is a magnetic induction of brain rhythm technology.

Datasea Tianer – Non-contact Sleep Aid Sleep Monitor (Coming soon) Sleep Monitor adopts ultra-low frequency, weak intensity, and Magnetic induction of brain rhythm (MIBR), which is a magnetic induction of brain rhythm technology.

Shuhai Beijing possesses cutting-edge products and solutions in intelligent acoustics and 5G messaging applications to support a wide range of commercial enterprises, households and individuals in China. Internationalization has always been a crucial strategy for the Company. Datasea incorporated a wholly-owned subsidiary, Datasea Acoustics LLC, based in the State of Delaware, USA.

The development and internationalization of acoustic products, including acoustic industry, acoustic agriculture, acoustic medicine, and acoustic health, have always been a crucial strategy for the Company. Following the establishment of its wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware in July 2023, the Company has actively implemented its global strategy.

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Datasea’s common stock currently listed on the Nasdaq Capital Market are shares of our Nevada holding company that maintains service agreements with the associated operating companies which instead enable us to consolidate the financial results of the VIE and its subsidiaries with Datasea’s corporate group under U.S. GAAP, making Datasea the primary beneficiary of the VIE for accounting purposes.

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Additionally, through the Company’s subsidiary in China, Tianjin Information Sea Information Technology Co., Ltd (“Shuhai Tianjin”) and the VIE, Shuhai Information Technology Co., Ltd. (“Shuhai Beijing”), we carry out business activities in China, along with its subsidiary entities.

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Datasea Acoustics LLC, established on July 31, 2023, represents our strategy of targeting the global market, including the U.S. market, and provides “intelligent acoustics” technology and products, which is a transformative blend of acoustics and artificial intelligence.

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For the fiscal year ending June 30, 2024, our revenue was $23,975,867, reflecting a 558.6% increase compared to the same period in 2023. This revenue growth is primarily due to the rapid expansion of our 5G AI multimodal communication business in China, with the company’s 5G AI digital business maintaining a leading position in the industry.

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Our growing customer base continues to support substantial business growth. 74 Additionally, as of the date of September 20, 2024, the company has received approximately RMB 152.40 million (equivalent to $21.37 million) in cash prepayments from large customers of our 5G AI multimodal digital business.

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Top changes in DATASEA INC.'s 2024 10-K

Item 1. Business

Item 1A. Risk Factors

Item 2. Properties

Item 3. Legal Proceedings

Item 5. Market for Registrant's Common Equity

Item 7. Management's Discussion & Analysis

Other DTSS 10-K year-over-year comparisons