M&A: DH ENCHANTMENT, INC.

Form Type: 10-Q/A

Filing Date: 2024-12-27

Corporate Action: Merger

Type: Update

Accession Number: 000168316824009008

Comments: This document is an amendment of DH Enchantment, Inc.'s Quarterly Report on Form 10-Q for the period ended September 30, 2024, originally filed on November 19, 2024. The amendment is intended to restate the company's consolidated financial statements due to errors found in the original filing. The document reports that on September 16, 2024, the company completed a merger with OAC, with OAC being the surviving entity as a wholly-owned subsidiary of DH Enchantment, and the transaction was recorded as a reverse merger for accounting purposes. Several errors were identified, including misstatements related to bank borrowings, reclassifications of portions of these borrowings, adjustments for accumulated losses, and reclassification of revenue sources. Importantly, these errors did not affect the company's cash position, revenues, or earnings per share. The amendment also updates certain financial statement components and discusses the company's holdings structure and operational risks associated with its subsidiaries in Hong Kong and Taiwan, emphasizing regulatory environments and the implications of such for operational flexibility and investment attractiveness.

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