{"url_path":"/sec/shaz/10-q/2026/item-1a","section_key":"item-1a","section_title":"Item 1A Risk Factors**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/2068385/0001493152-26-023769-index.html","accession_number":"0001493152-26-023769","cik":"0002068385","ticker":"SHAZ","issuer_name":"SharonAI Holdings Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/2068385/0001493152-26-023769-index.html","primary_entity_key":"0002068385","primary_entity_name":"SharonAI Holdings Inc."},"word_count":576,"has_tables":true,"body_markdown":"**Item\n1A. Risk Factors**\n\n \n\nRisk\nfactors that affect our business and financial results are discussed in Part I, Item 1A “Risk Factors,” in our Annual Report\non Form 10-K for the year ended December 31, 2025 as filed with the SEC on March 31, 2026 (“Annual Report”). Except as set\nforth below, there have been no material changes in our risk factors from those previously disclosed in our Annual Report. You should\ncarefully consider the risks described in our Annual Report, which could materially affect our business, financial condition or future\nresults. The risks described in our Annual Report are not the only risks we face. Additional risks and uncertainties not currently known\nto us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, and/or operating\nresults. If any of the risks actually occur, our business, financial condition, and/or results of operations could be negatively affected.\n\n \n\n**Changes\nto United States trade, tariff, import/export regulations or AI-related laws which may require SharonAI to restrict or terminate customer\nrelationships**\n\n \n\nThe\nUnited States has recently enacted and proposed to enact significant new tariffs. Additionally, President Trump has directed various\nfederal agencies to further evaluate key aspects of U.S. trade policy and there has been ongoing discussion and commentary regarding\npotential significant changes to U.S. trade policies, sanctions, export controls, treaties, tariffs, national security and the use and\ndeployment of artificial intelligence technologies. There continues to exist significant uncertainty about the future relationship between\nthe U.S. and other countries with respect to such trade policies, sanctions, export controls, treaties, tariffs, national security and\nthe use and deployment of artificial intelligence technologies. These developments, or the perception that any of them could occur, may\nhave a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce\nglobal trade and, in particular, trade between the impacted nations and the U.S. Any of these factors could depress economic activity\nand restrict the Company’s access to suppliers or customers and have a material adverse effect on the Company’s business,\nfinancial condition and results of operations.\n\n \n\nAdditionally,\nthe United States has proposed and implemented laws and policy measures that restrict the provision of AI related technology, services\nor infrastructure to entities connected with certain countries and jurisdictions.\n\n \n\nIf\nnew or expanded US or any other foreign government laws, regulations or government directives are introduced, or existing measures are\namended or interpreted more restrictively, the Company may be required to limit, suspend or terminate its ability to provide services\nto certain customers, including customers that are otherwise compliant under Australian law. This may occur with limited notice and irrespective\nof existing contractual arrangements.\n\n \n\nThe\ntermination or restriction of customer relationships could result in lost revenue, contract disputes, increased compliance costs, reputational\ndamage and operational disruption. In some circumstances, the Company may also be exposed to penalties, fines, sanctions or enforcement\naction if it fails to comply with applicable laws and regulations, including export controls and trade restrictions. The Company may\nalso face increased costs associated with monitoring and adapting to rapidly evolving regulatory requirements. Any such outcomes could\nmaterially and adversely affect the Company’s financial performance, growth prospects and business operations. There can be no\nassurance that the Company will be able to identify and comply with all applicable laws and regulations in a timely manner, or that compliance\nwill not require significant expenditure of management time and financial resources."}