{"url_path":"/sec/lhai/10-k/2026/item-7","section_key":"item-7","section_title":"Item 7 Management’s Discussion and","topic":"sec","document":{"doc_type":"10-K/A","doc_date":"2026-05-19","source_url":"https://www.sec.gov/Archives/edgar/data/2017758/0001213900-26-059081-index.html","accession_number":"0001213900-26-059081","cik":"0002017758","ticker":"LHAI","issuer_name":"Linkhome Holdings Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/2017758/0001213900-26-059081-index.html","primary_entity_key":"0002017758","primary_entity_name":"Linkhome Holdings Inc."},"word_count":8715,"has_tables":true,"body_markdown":"** **\n\n**Item 7. Management’s Discussion and\nAnalysis of Financial Condition and Results of Operations.**\n\n** **\n\n*This\nmanagement’s discussion and analysis of financial condition and results of operations contains forward-looking statements\nthat involve risks and uncertainties. See “Special Note Regarding Forward-Looking Statements” for a discussion of\nthe uncertainties, risks and assumptions associated with those statements. You should read the following discussion in conjunction with\n“Selected Historical Financial and Other Data” and our audited consolidated financial statements and related notes which are\nincluded elsewhere in this Annual Report on Form 10-K. Our actual results may differ materially from those discussed in the forward-looking statements\nas a result of various factors, including, but not limited to, those described under “Risk Factors” and included in other\nportions of this Annual Report on Form 10-K.*\n\n* *\n\n*This\nAnnual Report on Form 10-K includes forward-looking statements. We have based these forward-looking statements on\nour current expectations and projections about future events. These forward-looking statements are subject to known and unknown\nrisks, uncertainties, and assumptions about us that may cause our actual results, levels of activity, performance, or achievements to\nbe materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements.\nIn some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “could,”\n“would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,”\n“continue,” or the negative of such terms or other similar expressions. Factors that might cause or contribute to such a discrepancy\ninclude, but are not limited to, those described in our other Securities and Exchange Commission (“SEC”) filings. References\nto “we”, “us”, “our,” or the “Company” are to Linkhome Holdings Inc. and its subsidiary,\nexcept where the context requires otherwise.*\n\n** **\n\n**Overview**\n\n \n\nLinkhome Holdings Inc.\n(“Linkhome,” “Linkhome Holdings,” the “Company,” “we,” “our,” or “us”)\nis a holding company incorporated in the State of Nevada on November 6, 2023. The Company conducts substantially all of its operations\nthrough its wholly owned subsidiary, Linkhome Realty Group, a California corporation (“Linkhome Realty”).\n\n \n\nHeadquartered in Irvine,\nCalifornia, the Company currently focuses on the California markets and is gradually expanding its operations into additional markets\nacross the United States.\n\n \n\nLinkhome is developing\nan artificial intelligence–enabled real estate services platform designed to improve the efficiency, transparency and accessibility\nof residential real estate transactions. Our platform integrates traditional real estate brokerage services with technology-driven tools\nthat streamline property search, transaction coordination and related services for homebuyers and sellers.\n\n \n\nThrough our operating\nsubsidiary, Linkhome Realty, we provide a range of real estate-related services, including residential real estate brokerage services,\nfintech-enabled services, property management services and mortgage advisory services. Our objective is to provide clients with a comprehensive\nservice ecosystem that supports multiple stages of the real estate transaction lifecycle.\n\n \n\nIn addition, as part\nof our fintech initiatives, we operate a Cash Offer program designed to help homebuyers compete more effectively in competitive real estate\nmarkets by enabling them to present all-cash offers on properties. Under this program, the Company may temporarily acquire residential\nproperties using its own capital and subsequently transfer those properties to the end buyer within a short period of time. We believe\nthis program enhances our ability to attract clients and facilitates more efficient real estate transactions.\n\n \n\nHistorically, funding\nfor the Cash Offer program primarily came from investments made by our Chief Executive Officer and other shareholders. Following our initial\npublic offering in 2025, we expect to continue expanding the program using a combination of available capital, operating cash flows and\nother financing sources.\n\n \n\nOur long-term strategy\nis to continue developing a technology-driven real estate platform that integrates artificial intelligence with real estate and financial\nservices, enabling us to improve transaction efficiency, expand our service capabilities and support the long-term growth of our business.\n\n \n\n28\n\n \n\n \n\n**Technology and AI\nPlatform Strategy**\n\n \n\nWe are developing an\nartificial intelligence–enabled real estate platform designed to enhance the efficiency, transparency and accessibility of residential\nreal estate transactions. Our technology strategy focuses on integrating data, artificial intelligence and digital tools into the real\nestate transaction process to improve property discovery, transaction coordination and client engagement.\n\n \n\nOur platform is designed\nto support multiple stages of the real estate transaction lifecycle, including property search, client matching, transaction management\nand related financial services. By leveraging artificial intelligence and data analytics, we aim to provide users with more relevant property\ninformation, improve transaction efficiency and enhance the overall customer experience.\n\n \n\nOver time, we intend\nto expand the capabilities of our platform to include additional technology-enabled services, such as automated property analysis, intelligent\nclient matching and digital transaction management tools. We believe that integrating technology with traditional real estate services\nwill enable us to scale our operations more efficiently and strengthen our competitive position in the real estate market.\n\n \n\nOur long-term objective\nis to build a technology-driven real estate platform that connects property search, brokerage services and financial services within a\nunified ecosystem. We believe this approach will enable us to create a more streamlined and transparent path to homeownership while supporting\nthe long-term growth of our business.\n\n \n\n**Fintech-Enabled Cash\nOffer Program**\n\n \n\nIn competitive housing\nmarkets, sellers often prefer offers that are not contingent on mortgage financing. As part of our fintech-enabled services, we operate\na Cash Offer program designed to help clients present all-cash offers on residential properties, which may increase the likelihood that\ntheir offers are accepted.\n\n \n\nUnder this program, the\nCompany may temporarily acquire a residential property using its own capital and subsequently transfer the property to the client once\nthe client’s financing is finalized. These transactions are typically completed within a short time frame.\n\n \n\nWe believe our Cash Offer\nprogram represents a fintech-enabled solution within the residential real estate transaction process, providing several strategic benefits:\n\n \n\n●improves our clients’ competitiveness in fast-moving\nhousing markets\n\n \n\n●enhances transaction efficiency for buyers and sellers\n\n \n\n●expands our ability to generate transaction-based revenue\n\n \n\n●strengthens client acquisition for our real estate services\nplatform\n\n \n\n**Key Factors that Affect Our Results of Operations**\n\n \n\n \n●\nMarket Conditions: Fluctuations in the residential real estate market, including changes in housing supply, buyer demand, mortgage interest rates, and general economic conditions, can significantly affect our business. Periods of rising interest rates may reduce home affordability and transaction volumes, while periods of stronger economic growth and consumer confidence may increase housing demand.\n\n \n\n \n●\nTechnology Development and AI Integration: We are investing in technology and artificial intelligence capabilities designed to enhance the real estate transaction process, including tools for property search, client engagement and transaction support. Our ability to effectively integrate technology into our services may influence our operational efficiency and long-term growth potential.\n\n \n\n \n●\nClient Preferences and Demands: Our Cash Offer program represents a key driver of our revenue growth. The volume of transactions completed through this program depends on market conditions, the availability of capital and the level of demand from homebuyers seeking to compete with cash offers in competitive housing markets.We continuously assess client feedback, market research and industry trends to improve our services.\n\n \n\n29\n\n \n\n \n\n \n●\nCompetitive Landscape: The residential real estate industry is highly competitive. We compete with traditional real estate brokerages as well as technology-enabled real estate platforms. Our ability to differentiate our services through technology, service quality and transaction efficiency is critical to maintaining and expanding our market position.\n\n \n\n \n●\nEconomic Factors: We aim to continuously evaluate macroeconomic factors, such as GDP growth, employment rates, inflation, which can influence real estate market dynamics and consumer behavior. When GDP growth and employment rates are strong, we typically see higher consumer confidence and   spending power. On the other hand, rising inflation can lead to increased interest rates, potentially reducing consumer buying power and making it more expensive for consumers to purchase homes.\n\n \n\n \n●\nOperational Efficiency: Real estate transactions involve multiple operational steps, including marketing, negotiation, escrow coordination and closing. Our ability to efficiently manage these processes, while leveraging technology to streamline workflows, is important to maintaining profitability and scaling our operations.\n\n** **\n\n**Related Party Transactions**\n\n** **\n\n**Related Parties**\n\n \n\nThe\nfollowing individuals are considered related parties due to their roles and shareholding in the Company:\n\n \n\n \n●\nHaiyan Ma: The Company’s shareholder.\n\n \n\n \n●\nZhen Qin: Chairman of the Board, Chief Executive Officer (“CEO”), and major shareholder. Zhen Qin is also a licensed real estate broker affiliated with the Company.\n\n \n\n \n●\nNa Li: Chief Financial Officer (“CFO”) and Director. Na Li is the spouse of Zhen Qin.\n\n \n\n**For the Years Ended\nDecember 31, 2025 and 2024**\n\n \n\nProperty Purchases\nand Sales Through Cash Offer\n\n \n\nFor\nthe year ended December 31, 2024, the Company purchased three properties in cash for $2,884,882 from unrelated parties and subsequently\nsold them to Haiyan Ma for $2,940,544.\n\n \n\nFor\nthe year ended December 31, 2024, the Company purchased a property in cash for $1,425,930 from Haiyan Ma, which included $1,420,000 paid\nto Haiyan Ma as the total consideration and $5,930 in title charges, escrow charges, and other related costs. The Company subsequently\nsold the property to Na Li for $1,670,000.\n\n \n\nReal Estate Agency\nService\n\n \n\nFor\nthe year ended December 31, 2025, the Company provided real estate agency services to Na Li, assisting with the sale of one property.\nThe Company earned $126,000 in real estate agency commission from Na Li but paid a referral fee of $28,440 to Haiyan Ma for introducing\nthe buyer, resulting in net revenue of $97,560 recognized by the Company.\n\n \n\nFor\nthe year ended December 31, 2024, the Company provided real estate agency services to Haiyan Ma, assisting with the sale of two properties\nand the purchase of one property, for which the Company earned a total of $62,650 in real estate agency commission.\n\n \n\n30\n\n \n\n \n\nFor\nthe year ended December 31, 2024, the Company provided real estate agency services to Zhen Qin and Na Li, assisting with the purchase\nof a property, for which the Company earned $50,000 in real estate agency commission. \n\n \n\nFor\nthe year ended December 31, 2024, the Company provided real estate agency services to two minority shareholders, assisting one shareholder\nwith selling a property and the other shareholder with purchasing a property, for which the Company earned real estate agency commission\nof $15,550 in total.\n\n \n\nProperty Management\nService\n\n \n\nFor\nthe year ended December 31, 2024, the Company provided tenant placement services to a minority shareholder, assisting with securing a\nrental property, for which the Company earned $1,800 in property management service revenue.\n\n \n\nHome Renovation Service\n\n \n\nFor\nthe year ended December 31, 2024, the Company provided home renovation services to Haiyan Ma on three home renovation projects, for which\nthe Company earned $53,012 in home renovation service revenue and incurred $43,332 in renovation costs.\n\n \n\nFor\nthe year ended December 31, 2024, the Company provided home renovation services to Na Li on four home renovation projects, for which the\nCompany earned $64,500 in home renovation service revenue and incurred $56,769 in renovation costs.\n\n \n\nCommission Expense\n\n \n\nFor\nthe year ended December 31, 2025, the Company incurred commission expenses of $45,000 paid to Na Li in connection with real estate transactions.\nThis amount was recorded in cost of revenues.\n\n \n\n**As of December\n31, 2025 and 2024**\n\n \n\nDue to Related Party\n\n \n\nOn\nMay 1, 2024, Zhen Qin lent $530,000 to the Company to support its operational needs. As of December 31, 2025, the Company had fully repaid\nthe outstanding balance to Zhen Qin, resulting in no amount due to the related party. As of December 31, 2024, the Company had repaid\n$475,000 to Zhen Qin, leaving an outstanding balance of $55,000.\n\n** **\n\n**Selected Income Statement\nItems**\n\n** **\n\n**Net Revenues**\n\n \n\nWe\nderive our net revenues from (i) real estate purchases and sales made through Cash Offer, and (ii) real estate services including\nacting as real estate agency for buying and selling properties, property management, home renovation and mortgage referral services. The\nfollowing table presents our net revenues by revenue stream for the periods presented: \n\n \n\n  \nYears Ended December 31, \n\n  \n2025  \n2024  \nChange \n\n  \nAmount  \n%  \nAmount  \n%  \nAmount  \n% \n\nRevenue from property purchases and sales through Cash Offer \n$20,154,262  \n 96.00% \n$6,568,404  \n 86.25% \n$13,585,858  \n 206.84%\n\nReal estate service revenue \n    \n    \n    \n    \n    \n   \n\nReal estate agency commission \n 657,914  \n 3.13% \n 781,351  \n 10.26% \n (123,437) \n (15.80)%\n\nProperty management service \n 35,148  \n 0.17% \n 16,276  \n 0.21% \n 18,872  \n 115.95%\n\nHome renovation service \n 82,769  \n 0.39% \n 245,226  \n 3.22% \n (162,457) \n (66.25)%\n\nMortgage referral fee \n 64,254  \n 0.31% \n 4,050  \n 0.05% \n 60,204  \n 1,486.52%\n\nTotal real estate service revenue \n 840,085  \n 4.00% \n 1,046,903  \n 13.75% \n (206,818) \n (19.76)%\n\nTotal net revenues \n$20,994,347  \n 100.00% \n$7,615,307  \n 100.00% \n$13,379,040  \n 175.69%\n\n \n\n31\n\n \n\n \n\nRevenue from Property Purchases and Sales\nThrough Cash Offer\n\n \n\nIn\na competitive real estate market, a buyer who pays in cash is more likely to secure a property. To give buyers an edge in competitive\nmarkets, we offer the Cash Offer program to enable buyers to make all-cash offers on properties, even if they require financing. Through\nthe Cash Offer program, we facilitate cash offers for clients and may temporarily acquire properties before transferring them to the clients\nwithin a short period of time. Our property purchases and sales through Cash Offer primarily involve residential properties.\n\n \n\nRevenue\nfrom property purchases and sales through our Cash Offer program accounted for 96.00% and 86.25% of net revenues for the years ended December\n31, 2025 and 2024, respectively. Our revenue from this program increased by $13,585,858, or 206.84%, from $6,568,404 for the year ended\nDecember 31, 2024 to $20,154,262 for the year ended December 31, 2025.\n\n \n\nFor\nthe years ended December 31, 2025 and 2024, we completed 20 and 6 property transactions, respectively, through the Cash Offer program.\nThe increase in revenue was primarily driven by the higher number of transactions and increased transaction volume. The average transaction\nprice was approximately $1.02 million and $1.08 million for the years ended December 31, 2025 and 2024, respectively.\n\n \n\nReal Estate Service\nRevenue\n\n \n\nWe\noffer comprehensive real estate services tailored to meet the diverse needs of our clients. Our real estate service revenue consists primarily\nof real estate agency commissions for buying and selling properties for clients, and revenue generated from property management, home\nrenovation and mortgage referral services.\n\n \n\nReal\nestate service revenue accounted for 4.00% and 13.75% of net revenues for the years ended December 31, 2025 and 2024, respectively. Real\nestate service revenue decreased by $206,818, or 19.76%, from $1,046,903 for the year ended December 31, 2024 to $840,085 for the year\nended December 31, 2025, primarily due to decreases in real estate agency commissions and home renovation service revenue, partially offset\nby increases in property management and mortgage referral services.\n\n \n\nReal\nestate agency commission revenue decreased by $123,437, or 15.80%, from $781,351 for the year ended December 31, 2024 to $657,914 for\nthe year ended December 31, 2025. The decrease was primarily driven by a decrease in the number of real estate transactions and overall\ntransaction volume. For the year ended December 31, 2025, we completed 22 real estate transactions with total transaction volume of approximately\n$29.5 million, compared to 46 transactions with total transaction volume of approximately $48.6 million for the year ended December 31,\n2024. The average transaction price increased from approximately $1.06 million in 2024 to $1.34 million in 2025. Gross commissions were\npartially offset by client rebates, which were $169,946 and $208,125 for the years ended December 31, 2025 and 2024, respectively, representing\napproximately 20.53% and 21.03% of gross commissions for the respective periods.\n\n \n\nRevenue\nfrom home renovation services decreased by $162,457, or 66.25%, from $245,226 for the year ended December 31, 2024 to $82,769 for the\nyear ended December 31, 2025. The decrease was primarily attributable to a lower number of renovation projects. We completed three renovation\nprojects in 2025, compared to 15 renovation projects in 2024.\n\n \n\nRevenue\nfrom mortgage referral services increased by $60,204, or 1,486.52%, from $4,050 for the year ended December 31, 2024 to $64,254 for the\nyear ended December 31, 2025. The increase was primarily driven by an increase in the number of mortgage referrals. We assisted 12 clients\nin securing mortgage loans in 2025, compared to one client in 2024.\n\n \n\nRevenue\nfrom property management services increased by $18,872, or 115.95%, from $16,276 for the year ended December 31, 2024 to $35,148 for the\nyear ended December 31, 2025. The increase was primarily attributable to growth in tenant placement services and the number of properties\nunder ongoing property management. We completed 10 tenant placements in 2025, compared to nine tenant placements in 2024. In addition,\nthe number of properties under ongoing property management increased to six properties as of December 31, 2025, compared to three properties\nas of December 31, 2024.\n\n** **\n\n32\n\n \n\n** **\n\n**Cost of Revenues**\n\n \n\nOur\ncost of revenues consists primarily of (i) costs related to property purchases made through the Cash Offer program, which properties are\nsubsequently sold to customers, and (ii) costs associated with real estate services, including commission expenses for real estate agents\nand renovation costs incurred for home renovation services.\n\n \n\nWe\nderive our cost of revenues from two revenue streams: (i) property purchases and sales through Cash Offer and (ii) real estate services.\nThe following table presents our cost of revenues by revenue stream for the periods presented.\n\n \n\n  \nYears Ended December 31, \n\n  \n2025  \n2024  \nChange \n\n  \nAmount  \n%  \nAmount  \n%  \nAmount  \n% \n\nCost of property purchases and sales through Cash Offer \n$20,004,797  \n 98.93% \n$5,928,865  \n 96.48% \n$14,075,932  \n 237.41%\n\nCost of real estate services \n 216,533  \n 1.07% \n 216,061  \n 3.52% \n 472  \n 0.22%\n\nTotal cost of revenues \n$20,221,330  \n 100.00% \n$6,144,926  \n 100.00% \n$14,076,404  \n 229.07%\n\n \n\nCost\nof property purchases and sales through Cash Offer increased by $14,075,932, or 237.41%, from $5,928,865 for the year ended December 31,\n2024 to $20,004,797 for the year ended December 31, 2025. The increase was primarily driven by a higher volume of Cash Offer transactions\nin 2025 compared to 2024.\n\n \n\nCost\nof real estate services remained relatively stable, increasing by $472, from $216,061 for the year ended December 31, 2024 to $216,533\nfor the year ended December 31, 2025. The change in cost of real estate services was primarily attributable to higher real estate agency\nservice costs, partially offset by lower home renovation service costs. Real estate agency service costs increased from $12,926 in 2024\nto $146,810 in 2025, primarily due to increased commission expenses associated with real estate agency transactions. In contrast, home\nrenovation service costs decreased from $201,017 in 2024 to $69,724 in 2025, reflecting the lower number of renovation projects in 2025\ncompared to 2024.\n\n* *\n\n**Selling, General\nand Administrative Expenses**\n\n \n\nOur\nselling expenses primarily consist of staging, advertising and marketing costs, including online and offline marketing, photography and\nvideography. We expect our selling expenses to increase in absolute amounts as we continue to expand our marketing activities; however,\nwe expect selling expenses as a percentage of net revenues to remain relatively stable or decrease over time as our revenues grow.\n\n \n\nOur\ngeneral and administrative expenses primarily consist of professional service costs, payroll and payroll-related costs, rent and other\noverhead costs. As a public company, we expect to incur additional costs associated with regulatory compliance, legal, accounting and\nother professional services. While these costs may increase our general and administrative expenses in absolute amounts, we expect our\ngeneral and administrative expenses as a percentage of net revenues to decrease over the long term as we continue to scale our operations\nand improve operating efficiency.\n\n \n\n33\n\n \n\n \n\n**Results of Operations**\n\n** **\n\n**Comparison of the\nYears Ended December 31, 2025 and 2024**\n\n \n\nThe\nfollowing table summarized our consolidated results of operations for the years ended December 31, 2025 and 2024:\n\n \n\n  \nYears Ended December 31, \n\n  \n2025  \n% of\nRevenues  \n2024  \n% of\nRevenues  \nChange  \nPercentage\nChange \n\nNet revenues \n$20,994,347  \n 100.00% \n$7,615,307  \n 100.00% \n$13,379,040  \n 175.69%\n\nCost of revenues \n 20,221,330  \n 96.32% \n 6,144,926  \n 80.69% \n 14,076,404  \n 229.07%\n\nGross profit \n 773,017  \n 3.68% \n 1,470,381  \n 19.31% \n (697,364) \n (47.43)%\n\nOperating expenses \n    \n    \n    \n    \n    \n   \n\nSelling expenses \n 34,141  \n 0.16% \n 15,754  \n 0.21% \n 18,387  \n 116.71%\n\nGeneral and administrative expenses \n 662,444  \n 3.16% \n 365,207  \n 4.80% \n 297,237  \n 81.39%\n\nTotal operating expenses \n 696,585  \n 3.32% \n 380,961  \n 5.01% \n 315,624  \n 82.85%\n\nOperating income \n 76,432  \n 0.36% \n 1,089,420  \n 14.30% \n (1,012,988) \n (92.98)%\n\nOther income (expenses), net \n 49,775  \n 0.24% \n (1,832) \n (0.02)% \n 51,607  \n (2,816.98)%\n\nIncome before income taxes \n 126,207  \n 0.60% \n 1,087,588  \n 14.28% \n (961,381) \n (88.40)%\n\nIncome tax expense \n 51,333 \n 0.24% \n 309,352  \n 4.06% \n (258,019) \n (83.41)%\n\nNet income \n$74,874  \n 0.36% \n$778,236  \n 10.22% \n$(703,362) \n (90.38)%\n\n** **\n\n**Net Revenues**\n\n \n\nNet\nrevenues for the years ended December 31, 2025 and 2024 were $20,994,347 and $7,615,307, respectively, representing an increase of $13,379,040,\nor 175.69%. This increase was primarily driven by a $13,585,858 increase in revenue from property purchases and sales through Cash Offer,\npartially offset by a $206,818 decrease in real estate service revenue. The growth in Cash Offer revenue was primarily attributable to\na higher number of property transactions completed through the Cash Offer program in 2025 compared to 2024.\n\n** **\n\n**Cost of Revenues**\n\n \n\n  \nYears Ended December 31, \n\n  \n2025  \n2024  \nChange  \nPercentage\nChange \n\nCost of property purchases and sales through Cash Offer \n$20,004,797  \n$5,928,865  \n$14,075,932  \n 237.41%\n\nCost of real estate services \n 216,533  \n 216,061  \n 472  \n 0.22%\n\nTotal cost of revenues \n$20,221,330  \n$6,144,926  \n$14,076,404  \n 229.07%\n\nAs a percentage of net revenues \n 96.32% \n 80.69% \n    \n   \n\n \n\nCost\nof revenues for the years ended December 31, 2025 and 2024 was $20,221,330 and $6,144,926, respectively, representing an increase of $14,076,404,\nor 229.07%. The increase was primarily driven by higher costs associated with property purchases and sales through the Cash Offer program\nas the number and value of Cash Offer transactions increased significantly in 2025 compared to 2024. Cost of real estate services remained\nrelatively stable, increasing slightly from $216,061 in 2024 to $216,533 in 2025.\n\n** **\n\n34\n\n \n\n** **\n\n**Gross Profit and\nGross Margin**\n\n \n\n  \nYears Ended December 31, \n\n  \n2025  \n2024 \n\n  \nGross Profit  \nGross Margin  \nGross Profit  \nGross Margin \n\nProperty purchases and sales through Cash Offer \n$149,465  \n 0.71% \n$639,539  \n 8.40%\n\nReal estate services \n 623,552  \n 2.97% \n 830,842  \n 10.91%\n\nTotal \n$773,017  \n 3.68% \n$1,470,381  \n 19.31%\n\n \n\nGross\nprofit for the years ended December 31, 2025 and 2024 was $773,017 and $1,470,381, respectively, representing a decrease of $697,364,\nor 47.43%. The blended gross margin was 3.68% for the year ended December 31, 2025, compared to 19.31% for the year ended December 31,\n2024. The decrease in gross margin was primarily attributable to lower margins on property purchases and sales through the Cash Offer\nprogram as the Company significantly increased transaction volume in 2025.\n\n \n\nGross\nprofit from property purchases and sales through the Cash Offer program decreased to $149,465 in 2025, compared to $639,539 in 2024, primarily\ndue to lower margins on these transactions. Gross profit from real estate services decreased from $830,842 in 2024 to $623,552 in 2025,\nprimarily due to lower home renovation service revenue and lower real estate agency commission revenue.\n\n** **\n\n**Selling Expenses**\n\n \n\nSelling\nexpenses for the years ended December 31, 2025 and 2024 were $34,141 and $15,754, respectively, representing an increase of $18,387, or\n116.71%. The increase was primarily attributable to higher advertising and marketing expenditures as the Company continued to expand its\nmarketing efforts to support the growth of its real estate transaction volume.\n\n** **\n\n**General and Administrative\nExpenses**\n\n \n\nThe\nfollowing table summarized our general and administrative expenses for the years ended December 31, 2025 and 2024:\n\n \n\n  \nYears Ended December 31, \n\n  \n2025  \n2024  \nChange  \nPercentage\nChange \n\nLegal and accounting expenses \n$218,250  \n$99,363  \n$118,887  \n 119.65%\n\nPayroll expense \n 180,834  \n 152,256  \n 28,578  \n 18.77%\n\nPayroll tax expense \n 16,469  \n 13,795  \n 2,674  \n 19.38%\n\nRent expenses \n 108,570  \n 46,572  \n 61,998  \n 133.12%\n\nDepreciation and amortization expenses \n 47,002  \n 18,762  \n 28,240  \n 150.52%\n\nOther general and administrative expenses \n 91,319  \n 34,459  \n 56,860  \n 165.01%\n\nTotal general and administrative expenses \n$662,444  \n$365,207  \n$297,237  \n 81.39%\n\nAs a percentage of net revenues \n 3.16% \n 4.80% \n    \n   \n\n \n\nGeneral\nand administrative expenses for the years ended December 31, 2025 and 2024 were $662,444 and $365,207, respectively, representing an increase\nof $297,237, or 81.39%. The increase was primarily driven by higher legal and accounting expenses, rent expenses, payroll and payroll\ntax expenses, depreciation and amortization expenses, and other general and administrative expenses.\n\n \n\n35\n\n \n\n \n\nLegal\nand accounting expenses increased by $118,887, primarily due to additional costs associated with regulatory compliance, legal, accounting\nand other professional services following the Company’s initial public offering. Rent expenses increased by $61,998, primarily due\nto the Company relocating to a new office in 2025 with higher lease costs, as well as additional technology-related lease arrangements.\nPayroll and payroll tax expenses increased by $31,252, primarily due to the hiring of additional employees. Depreciation and amortization\nexpenses increased by $28,240, primarily due to purchases of furniture, leasehold improvements, and the capitalization and amortization\nof internally developed software, including the Company’s website and mobile application. Other general and administrative expenses\nincreased by $56,860, primarily due to higher administrative and operational costs associated with the expansion of the Company’s\nbusiness activities.\n\n** **\n\n**Other Income (Expenses),\nNet**\n\n \n\nOther\nincome (expenses), net was income of $49,775 for the year ended December 31, 2025, compared to expense of $1,832 for the year ended December\n31, 2024. Other income in 2025 primarily consisted of interest income and other miscellaneous income, partially offset by interest expense\nand realized loss on trading securities. Other expenses in 2024 primarily consisted of interest expense, partially offset by credit card\nrebates and bank rewards.\n\n** **\n\n**Income Tax Expense**\n\n \n\nIncome\ntax expense for the years ended December 31, 2025 and 2024 were $51,333 and $309,352, respectively, representing a decrease of $258,019,\nor 83.41%. The decrease in income tax expense was primarily attributable to lower net income before income taxes in 2025.\n\n** **\n\n**Net Income**\n\n \n\nNet\nincome for the years ended December 31, 2025 and 2024 were $74,874 and $778,236, respectively, representing a decrease of $703,362, or\n90.38%. The decrease in net income was primarily attributable to lower gross profit in 2025, partially offset by the increase in net revenues.\n\n \n\n**Liquidity and Capital\nResources**\n\n \n\nHistorically,\nthe Company has funded its operations and working capital requirements primarily through operating cash flows, shareholder contributions\nand equity financing.\n\n \n\nOur\nliquidity position improved significantly during 2025, primarily due to proceeds from the issuance of common stock in connection with\nour initial public offering. As of December 31, 2025, the Company had cash and cash equivalents of $7,018,931, compared to $1,670,949\nas of December 31, 2024.\n\n \n\nWe\nbelieve that our current cash position and expected operating cash flows will be sufficient to meet our working capital and operating\nrequirements for at least the next twelve months from the date of issuance of the consolidated financial statements.\n\n \n\nHowever,\nas we continue to expand our business, including potential investments in technology development and real estate transaction activities,\nwe may seek additional financing from time to time. Such financing may include equity financing, debt financing or other strategic funding\nsources.\n\n \n\nAny\nfinancing involving the issuance of equity securities or securities convertible into equity could result in dilution to our existing stockholders.\n\n \n\n36\n\n \n\n \n\n**Cash Flows For\nthe Years Ended December 31, 2025 and 2024**\n\n \n\nAs\nof December 31, 2025, we had cash and cash equivalents of $7,018,931, other current assets of $128,235, current liabilities of $2,082,601,\nnet working capital of $5,064,565, and a current ratio of 3.43:1. As of December 31, 2024, we had cash and cash equivalents of $1,670,949,\nother current assets of $1,652,699, current liabilities of $944,447, net working capital of $2,379,201, and a current ratio of 3.52:1.\n\n \n\nThe\nfollowing table presented a summary of our cash flows for the years ended December 31, 2025 and 2024:\n\n \n\n  \nYear\nEnded\nDecember 31,\n2025  \nYear\nEnded\nDecember 31,\n2024 \n\nNet cash provided by operating activities \n$524,430  \n$694,655 \n\nNet cash used in investing activities \n (927,726) \n (3,513)\n\nNet cash provided by financing activities \n 5,751,278  \n 327,896 \n\nNet increase in cash and cash equivalents \n 5,347,982  \n 1,019,038 \n\nCash and cash equivalents, beginning of period \n 1,670,949  \n 651,911 \n\nCash and cash equivalents, end of period \n$7,018,931  \n$1,670,949 \n\n \n\nNet Cash Provided\nby Operating Activities\n\n \n\nNet\ncash provided by operating activities was $524,430 for the year ended December 31, 2025, primarily derived from (i) net income of $74,874,\nadjusted for non-cash items including lease expense of $108,570, depreciation and amortization of $47,002, and a realized loss on trading\nsecurities of $2,651, partially offset by deferred tax benefit of $742, and (ii) net changes in operating assets and liabilities as of\nDecember 31, 2025 compared to December 31, 2024, primarily consisting of (a) an increase in other current liabilities of $1,040,459, (b)\na decrease in real estate held for sale of $907,061, (c) an increase in accounts payable of $72,435, and (d) a decrease in prepaid expenses\nand other receivables of $9,712, partially offset by (a) a decrease in operating lease liabilities of $999,140, (b) an increase in long-term\nprepaid expenses of $617,625, (c) an increase in accounts receivable of $91,808, and (d) an increase in security deposits of $29,019.\n\n \n\nNet\ncash provided by operating activities was $694,655 for the year ended December 31, 2024, primarily derived from (i) net income of\n$778,236, adjusted for non-cash items including lease expense of $45,347 and depreciation of $18,762, partially offset by a decrease\nin allowance for credit losses of $9,092; (ii) net changes in operating assets and liabilities as of December 31, 2024 compared to\nDecember 31, 2023, primarily consisting of (a) an increase in other current liabilities of $820,575 and (b) an increase in accounts\npayable of $4,597, partially offset by (a) an increase in real estate held for sale of $907,061, (b) a decrease in operating\nlease liabilities of $45,062, (c) an increase in accounts receivable of $8,676, and (d) an increase in prepaid expenses and other\nreceivables of $2,971.\n\n \n\nNet\ncash provided by operating activities was $524,430 for the year ended December 31, 2025, compared to $694,655 for the year ended December\n31, 2024, representing a decrease in cash inflow of $170,225. This decrease was primarily due to (i) an increase in cash outflow of $954,078\non operating lease liabilities, (ii) an increase in cash outflow of $617,625 on long-term prepaid expenses, (iii) a decrease in cash inflow\nof $600,898 on net income adjusted for noncash items, (iv) a decrease in cash inflow of $83,132 on accounts receivable, and (v) an increase\nin cash outflow of $29,019 on security deposits, partially offset by (i) a decrease in cash outflow of $1,814,122 on real estate held\nfor sale, (ii) a decrease in cash outflow of $219,884 on other current liabilities, (iii) a decrease in cash outflow of $67,838 on\naccounts payable, and (iv) a decrease in cash outflow of $12,683 on prepaid expenses.\n\n \n\nNet Cash Used in Investing\nActivities\n\n \n\nNet\ncash used in investing activities was $927,726 for the year ended December 31, 2025, which primarily consisted of capitalized internally\ndeveloped software and other intangible assets of $571,425, purchases of property and equipment of $303,650, purchases of trading securities\nof $274,718, and an investment under the cost method of $50,000, partially offset by proceeds from the sale of trading securities of $272,067.\n\n \n\nNet\ncash used in investing activities was $3,513 for the year ended December 31, 2024, which primarily consisted of purchases of property\nand equipment of $2,064 and purchases of trademarks of $1,449.\n\n \n\n37\n\n \n\n \n\nNet Cash Provided\nby Financing Activities\n\n \n\nNet\ncash provided by financing activities was $5,751,278 for the year ended December 31, 2025, which primarily consisted of proceeds from\nthe issuance of common stock of $6,203,000 and proceeds from related party advances of $465,347, partially offset by repayments of related\nparty advances of $520,347, payment of offering costs of $388,624, and repayments of auto loan principal of $8,098.\n\n \n\nNet\ncash provided by financing activities was $327,896 for the year ended December 31, 2024, which primarily consisted of proceeds from equity\nfinancing of $980,000 and proceeds from related party advances of $880,000, partially offset by repayments of related party advances of\n$825,000, payment of offering costs of $699,499, and repayments of auto loan principal of $7,605.\n\n**  **\n\n**Contractual Obligations**\n\n \n\nOur\ncontractual obligations as of December 31, 2025 were as follows:\n\n \n\n  \n1 Year or\nLess  \nMore Than\n1 Year  \nTotal \n\nOperating lease liabilities \n$109,711  \n$266,282  \n$375,993 \n\nAuto loan payable \n 8,631  \n 26,754  \n 35,385 \n\nTotal \n$118,342  \n$293,036  \n$411,378 \n\n** **\n\n**Off-Balance Sheet\nArrangements**\n\n \n\nWe\ndid not have any off-balance sheet arrangements as of December 31, 2025 and 2024.\n\n** **\n\n**Trend Information**\n\n \n\nOther\nthan as disclosed elsewhere in this Annual Report on Form 10-K, we are not aware of any trends, uncertainties, demands, commitments, or\nevents that are reasonably likely to have a material effect on our revenue, income from operations, net income, liquidity, or capital\nresources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial\ncondition.\n\n** **\n\n**Inflation**\n\n \n\nInflation\nand rising interest rates have significantly influenced the economic environment, impacting our operations and financial performance.\nMonetary authorities, in response to heightened inflationary pressures, have raised interest rates, which has increased borrowing costs\nand reduced the availability of financing. These changes have directly affected the real estate market by making mortgages less affordable\nfor potential homebuyers, leading to decreased demand for real estate. We continue to monitor inflation, monetary policy changes, and\ntheir potential adverse effects on our business. Despite these challenges, higher interest rates have reduced competition among buyers,\nwhich may create opportunities for certain buyers in the real estate market.** **\n\n** **\n\n**Critical Accounting Policies and Estimates**\n\n \n\nOur\ndiscussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements. These\nfinancial statements are prepared in accordance with U.S. GAAP, which requires us to make estimates and assumptions that affect the\nreported amounts of our assets and liabilities and revenue and expenses, to disclose contingent assets and liabilities on the date of\nthe consolidated financial statements, and to disclose the reported amounts of revenue and expenses incurred during the financial reporting\nperiod. We continue to evaluate these estimates and assumptions that we believe to be reasonable under the circumstances. We rely on these\nevaluations as the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other\nsources. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those\nestimates. Some of our accounting policies require higher degrees of judgment than others in their application. We believe that the critical\naccounting policies disclosed in this Annual Report on Form 10-K reflect the more significant judgments and estimates used in preparation\nof our consolidated financial statements. Further, as an emerging growth company, we have elected to use the extended transition period\nfor complying with new or revised accounting standards that have different effective dates for emerging growth companies until the earlier\nof the date that we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended\ntransition period provided in the JOBS Act. As a result, these financial statements contained in our subsequent filings with the SEC may\nnot be comparable to other public companies.\n\n \n\n38\n\n \n\n \n\nThe\nfollowing critical accounting policies rely upon assumptions and estimates and were used in the preparation of our consolidated financial\nstatements:** **\n\n \n\n**Use of Estimates**\n\n \n\nThe\npreparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions\nthat affect the reported amounts of assets and liabilities as of the dates of the consolidated financial statements, as well as the reported\namounts of revenues and expenses during the reporting period. These estimates and judgments include, but are not limited to, revenue recognition,\nallowance for credit losses, income taxes, the useful lives of long-lived assets and assumptions used in assessing impairment of\nlong-lived assets. Management bases its estimates on historical experience and on various other assumptions believed to be reasonable\nunder the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities.\nAlthough actual amounts may differ from the estimated amounts, such differences are not likely to be material.\n\n** **\n\n**Revenue Recognition**\n\n \n\nIn\naccordance with ASC 606, “Revenue from Contracts with Customers,” revenue is recognized when a customer obtains control\nof promised goods or services. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to\nreceive in exchange for these goods or services. The Company recognizes revenues following the five-step model prescribed under ASU\nNo. 2014-09: (i) identifies contract(s) with a customer; (ii) identifies the performance obligations in the contract;\n(iii) determines the transaction price; (iv) allocates the transaction price to the performance obligations in the contract;\nand (v) recognizes revenues when (or as) it satisfies the performance obligation.\n\n \n\nThe\nCompany derives its revenues primarily from real estate services and real estate purchases and sales through Cash Offer.\n\n \n\nReal Estate Service\nRevenue\n\n \n\nThe\nCompany’s real estate service revenue consists primarily of real estate agency commission for buying and selling properties for\nclients, revenue generated from property management service, home renovation service, and mortgage referral service.\n\n \n\nThe\nCompany earns agency commission revenue, usually at a fixed percentage of property’s selling price, through facilitating the buy\nor sale of various types of properties, including residential, commercial, and land parcels. The Company is considered an agent for these\nservices provided, and reports service revenue earned through these transactions on a net basis. Revenue is recognized when the agency\nservice is provided, usually at the closing of the escrow.\n\n \n\nPrior to November 17, 2023, the Company conducted real estate transactions\nthrough a licensed third-party brokerage firm. On November 17, 2023, Linkhome Realty obtained its own real estate broker license, allowing\nthe Company to conduct brokerage transactions independently.\n\n \n\n39\n\n \n\n \n\nThe\nCompany provides property management services, which include two primary activities: tenant placement and ongoing property management.\nTenant placement services involve marketing the property, identifying suitable tenants, and facilitating the rental agreement. For these\nservices, the Company acts as an agent and charges a rental commission, either as a percentage of the first year’s rent or a fixed\nfee. Revenue from tenant placement is recognized at a point in time when a tenant is secured, and the lease contract is executed. Additionally,\nthe Company provides ongoing property management services, which may include collecting rent on behalf of the landlord, coordinating maintenance\nand repairs, and addressing tenant inquiries during the lease term. For these services, the Company also acts as an agent and charges\na service fee. Revenue from ongoing property management is recognized over time as the services are rendered, as the landlord simultaneously\nreceives and consumes the benefits of the Company’s efforts.\n\n \n\nThe\nCompany also offers a full range of home renovation services, from bathroom and kitchen renovations to customized home renovations and\nextensions, helping clients prepare their homes for sale or personalize newly purchased properties. The Company considers itself as a\nprincipal for this service as it has control of the specified service at any time before it is transferred to the customer, which is evidenced\nby (i) the Company is primarily responsible for fulfilling the promises to provide home renovation services meeting customer specifications,\nand assumes fulfilment risk (i.e., risk that the performance obligation will not be satisfied); and (ii) the Company has discretion\nin selecting third-party renovation contractors and establishing the price, and bears the risk for services that are not fully paid\nfor by customers. The renovation period is usually within one to three months; the Company recognizes revenue when the renovation\nservice is completed, on a gross basis with corresponding costs incurred.\n\n  \n\nIn addition, the Company collaborates with lending institutions and\nmortgage brokers to assist clients in seeking and securing mortgage services, and aiding clients in the process of obtaining loans or\nfinancing for property purchases. Revenue is recognized when the related loan transaction is completed and the Company becomes entitled\nto the referral fee.\n\n \n\nRevenue from Property\nPurchases and Sales through Cash Offer\n\n \n\nThe Company’s revenue from purchases and sales through its Cash\nOffer program primarily consists of purchasing residential properties and subsequently reselling those properties to customers within\na short period of time. Under the Cash Offer program, the Company may purchase residential properties using its own capital, with title\ntransferred to Linkhome Realty, and subsequently resell the properties to customers. Both purchase and sales transactions go through an\nescrow company. The Company is the principal of these transactions and recognizes revenue and cost when the property purchased is sold\nand escrow is closed. This type of revenue does not contain a financing component due to there being no difference between the amount\nof promised consideration and the cash selling price of the promised goods or services, and the length of time between when the Company\ntransfers the promised goods or services to the customer and when the customer pays for those goods is very short, usually within a few weeks\nor a few months.\n\n** **\n\n**Credit Losses**\n\n \n\nOn\nJanuary 1, 2023, the Company adopted ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit\nLosses on Financial Instruments” (“ASC 326”). This standard replaced the incurred loss methodology with an expected\nloss methodology that is referred to as the current expected credit loss (“CECL”) methodology. CECL requires an estimate of\ncredit losses for the remaining estimated life of the financial asset using historical experience, current conditions, and reasonable\nand supportable forecasts and generally applies to financial assets measured at amortized cost, including loan receivables and held-to-maturity\ndebt securities, and some off-balance sheet credit exposures such as unfunded commitments to extend credit. Financial assets measured\nat amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. In addition, CECL\nmade changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as\nan allowance rather than as a write-down on available-for-sale debt securities if management does not intend to sell and does not believe\nthat it is more likely than not they will be required to sell.\n\n \n\nThe\nCompany adopted ASC 326 and all related subsequent amendments thereto effective January 1, 2023, using the modified retrospective approach\nfor all financial assets measured at amortized cost and off-balance sheet credit exposures. There was no transition adjustment upon the\nadoption of CECL.\n\n \n\n40\n\n \n\n \n\nThe\nCompany’s accounts receivable and prepaid expense in the consolidated balance sheets are within the scope of ASC Topic 326. As the\nCompany has limited customers and debtors, the Company uses the loss-rate method to evaluate the expected credit losses on an individual\nbasis. When establishing the loss rate, the Company makes the assessment on various factors, including historical experience, creditworthiness\nof customers and debtors, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors\nthat may affect its ability to collect from the customers and debtors. The Company also provides specific provisions for allowance when\nfacts and circumstances indicate that the receivable is unlikely to be collected.\n\n \n\nExpected\ncredit losses are recorded as an allowance for credit losses, which is netted against accounts receivable in the consolidated balance\nsheets, and are recognized as an expense in the consolidated statements of income. Receivables are written off against the allowance when\nall collection efforts have been exhausted and recovery is deemed remote. If the Company recovers amounts that were previously written\noff, the recovered amounts are recognized as a reduction to the provision for credit losses in the consolidated statements of income.\n\n** **\n\n**Accounts Receivable,\nNet**\n\n \n\nAccounts receivable represent\nthe amounts that the Company has an unconditional right to consideration, which are stated at the historical carrying amount net of allowance\nfor credit losses. The Company maintains allowances for credit losses for estimated losses. The Company reviews the accounts receivable\non a periodic basis and makes allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability\nof individual receivable balances, the Company considers many factors, including historical losses, the age of the receivable balance,\nthe customer’s historical payment pattens and creditworthiness, current economic conditions, and reasonable and supportable forecasts\nof future economic conditions. Accounts are written off against the allowance after all means of collection have been exhausted and the\npotential for recovery is considered remote. As of December 31, 2025 and 2024, the Company had no allowances for credit losses.\n\n** **\n\n**Impairment of Long-lived Assets**\n\n \n\nLong-lived assets,\nwhich include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances\nindicate the carrying amount of an asset may not be recoverable. The recoverability of long-lived assets to be held and used is measured\nby comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If\nthe carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount\nby which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset’s\nexpected future discounted cash flows or market value, if readily determinable.\n\n \n\nThe\nCompany evaluates events and changes in circumstances that could indicate the carrying amounts of long-lived assets may not be recoverable.\nWhen such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether\nthe carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future undiscounted\ncash flows is less than the carrying amount of those assets, the Company records an impairment charge in the period in which such a determination\nis made. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying\namount of the assets exceeds the fair value of the assets. Based on the above analysis, no impairment loss was recognized related to these\nassets for the years ended December 31, 2025 and 2024.\n\n** **\n\n**Income Taxes**\n\n \n\nThe\nCompany uses the asset and liability method of accounting for income taxes in accordance with FASB ASC Topic 740, “Income Taxes.”\nUnder this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current period and (ii)\ndeferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements\nor tax returns. Deferred tax assets also include the prior years’ net operating losses carried forward. Deferred tax assets and\nliabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences\nare expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the\nresults of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets\nreported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the\ndeferred tax assets will not be realized.\n\n \n\n41\n\n \n\n \n\nThe\nCompany follows FASB ASC Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement\nof a tax position taken or expected to be taken in a tax return. FASB ASC Topic 740 also provides guidance on recognition of income tax\nassets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties\nassociated with tax positions, accounting for income taxes in interim periods, and income tax disclosures.\n\n \n\nUnder\nthe provisions of FASB ASC Topic 740, when tax returns are filed, it is likely some positions taken would be sustained upon examination\nby the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position\nthat would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which,\nbased on all available evidence, management believes it is more likely than not that the position will be sustained upon examination,\nincluding the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions.\nTax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more\nthan 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated\nwith tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits\nin the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon\nexamination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling,\ngeneral and administrative expenses in the statements of income. For the years ended December 31, 2025 and 2024, the Company did not take\nany uncertain positions that would necessitate recording a tax related liability.\n\n \n\nPrior\nto January 1, 2024, Linkhome Realty filed its income tax return under Subchapter S of the Internal Revenue Code (“IRS”) as\na S-corporation, and elected to be taxed as a pass-through entity, for which the income, losses, deductions, and credits flow through\nto the shareholders of the company for federal income tax purposes. Effective January 1, 2024, Linkhome Realty’s tax status became\nC-corporation, and is subject to a federal income tax rate of 21% and California state income tax rate of 8.84%. As a parent holding company\nof Linkhome Realty, Linkhome Holdings was incorporated in the State of Nevada on November 6, 2023, and is only subject to a federal income\ntax rate of 21%. Effective for the tax year beginning January 1, 2024, and continuing thereafter unless revoked, Linkhome Holdings and\nLinkhome Realty have elected to file a consolidated federal income tax return.\n\n \n\n**New Accounting Pronouncements**\n\n \n\nThe Company considers the\napplicability and impact of all ASUs and periodically reviews new accounting standards that are issued. Under the Jumpstart Our Business\nStartups Act of 2012, as amended (the “JOBS Act”), the Company meets the definition of an emerging growth company\nand has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these\naccounting standards until they would apply to private companies.\n\n \n\nRecently Adopted Accounting Pronouncements\n\n \n\nIn November 2023, the FASB\nissued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The amendments in the\nASU are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment\nexpenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit\nor loss. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple\nsegment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain\nother disclosure requirements. The purpose of the amendments is to enable “investors to better understand an entity’s overall\nperformance” and assess “potential future cash flows.” The amendments in ASU 2023-07 are effective for all public entities\nfor fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company\nadopted ASU 2023-07 for the year ended December 31, 2024, and the adoption did not have a material impact on its consolidated financial\nstatements and related disclosures.\n\n \n\n42\n\n \n\n \n\nIn December 2023, the FASB\nissued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires enhanced income tax\ndisclosures, including additional information in the rate reconciliation and income taxes paid by jurisdiction. ASU 2023-09 is\neffective for fiscal years beginning after December 15, 2024. The Company adopted ASU 2023-09 for the year ended December 31,\n2025, and the adoption did not have a material impact on its consolidated financial statements and related disclosures.\n\n \n\nRecent Accounting Pronouncements Pending Adoption\n\n  \n\nIn November 2024, the FASB\nissued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40),”\nwhich is intended to improve disclosures about a public business entity’s expenses and provide more detailed information about the\nnature of expenses included in commonly presented expense captions, such as cost of revenues and selling, general and administrative expenses.\nThe amendments require entities to disclose, in the notes to the financial statements, specified information about certain expense categories,\nincluding employee compensation, depreciation, and amortization, within relevant income statement captions. The amendments also require\ntabular disclosures of such disaggregated expense information, as well as qualitative descriptions of the remaining amounts not separately\ndisaggregated.\n\n \n\nIn January 2025, the FASB issued ASU 2025-01, which clarifies the effective\ndate of ASU 2024-03. As clarified, the amendments are effective for annual reporting periods beginning after December 15, 2026, and interim\nreporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently\nevaluating the impact that the adoption of ASU 2024-03 will have on its consolidated financial statements and related disclosures.\n\n \n\nThe Company does not believe\nthat any other recently issued but not yet effective authoritative guidance, if adopted currently, would have a material impact on its\nconsolidated financial statements or related disclosures."}