[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) The unaudited financial statements for Alset Inc. as of September 30, 2023, reflect increased assets and liabilities, with a reduced net loss on significantly higher revenue driven by property sales [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheets show total assets increased to **$157.0 million**, driven by cash, while liabilities rose and equity decreased due to net loss Condensed Consolidated Balance Sheet Highlights (Unaudited) | Balance Sheet Item | Sep 30, 2023 ($) | Dec 31, 2022 ($) | | :--- | :--- | :--- | | **Assets** | | | | Cash | 28,038,818 | 17,827,383 | | Properties under Development | 8,775,951 | 23,449,698 | | Total Assets | 157,014,408 | 153,490,336 | | **Liabilities & Equity** | | | | Total Current Liabilities | 6,501,992 | 3,244,738 | | Total Liabilities | 8,149,184 | 4,827,221 | | Total Stockholders' Equity | 128,482,259 | 148,663,115 | | Total Liabilities and Stockholders' Equity | 157,014,408 | 153,490,336 | [Condensed Consolidated Statements of Operations and Other Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Other%20Comprehensive%20Loss) Statements of operations show a significant revenue increase to **$21.1 million**, primarily from property sales, leading to a reduced net loss of **$27.2 million** Statement of Operations Highlights (Unaudited) | Metric | Nine Months Ended Sep 30, 2023 ($) | Nine Months Ended Sep 30, 2022 ($) | | :--- | :--- | :--- | | Total Revenue | 21,070,983 | 3,600,482 | | (Loss) Income from Operations | 942,862 | (5,378,815) | | Net Loss | (27,162,596) | (30,994,705) | | Net Loss Attributable to Common Stockholders | (25,677,321) | (27,166,771) | | Net Loss Per Share - Basic and Diluted | (2.86) | (4.38) | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity declined to **$128.5 million** due to net loss and foreign currency translation, partially offset by common stock issuance - Stockholders' equity declined to **$128.5 million** due to a net loss of **$25.7 million** and other comprehensive losses, despite a **$3.4 million** capital infusion from a common stock issuance[6](index=6&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow statements show a positive shift in operating cash flow to **$8.3 million**, driven by property sales, and **$3.4 million** from financing activities Cash Flow Summary (Unaudited) | Cash Flow Activity | Nine Months Ended Sep 30, 2023 ($) | Nine Months Ended Sep 30, 2022 ($) | | :--- | :--- | :--- | | Net Cash Provided by (Used in) Operating Activities | 8,255,675 | (28,331,829) | | Net Cash Used in Investing Activities | (748,188) | (15,031,318) | | Net Cash Provided by Financing Activities | 3,408,560 | 5,996,133 | | **Net Increase (Decrease) in Cash** | **10,916,047** | **(37,367,014)** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes provide details on the company's diversified segments, accounting policies, related-party transactions, and recent consolidation events impacting financial results - The company operates through four segments: real estate, digital transformation technology, biohealth, and other business activities, managed largely via its **85.4%** owned subsidiary, Alset International Limited[13](index=13&type=chunk) - On May 1, 2023, the company's ownership in Alset Capital Acquisition Corp. increased to **58.0%**, leading to its consolidation and the recognition of a **$21.7 million** loss[79](index=79&type=chunk) - The company has significant influence over several publicly traded companies, including DSS Inc. (**44.8%** ownership), Value Exchange International Inc. (**48.7%** ownership), and Sharing Services Global Corp. (**33.4%** ownership), and accounts for them using the fair value option[24](index=24&type=chunk)[78](index=78&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant revenue growth from property sales, improved net loss, strengthened liquidity, and ongoing operational challenges - The company is a diversified holding company with four main segments: real estate development (EHome communities), financial services, digital transformation technologies, and biohealth/consumer products[115](index=115&type=chunk) - A significant portion of the business is managed through its **85.4%** owned subsidiary, Alset International Limited, which is traded on the Singapore Stock Exchange[115](index=115&type=chunk) - Management believes available cash and revenue from real estate projects are sufficient to fund operations for at least the next **12 months**[131](index=131&type=chunk) [Recent Developments](index=43&type=section&id=Recent%20Developments) Recent developments include the consolidation of Alset Capital, a **$3.3 million** public offering, and strategic real estate sales generating approximately **$18.1 million** - The company's sponsored SPAC, Alset Capital Acquisition Corp., is working to close a business combination with HWH International Inc., an indirect subsidiary of the company[116](index=116&type=chunk) - In February 2023, the company closed a public offering of **1,727,273** shares of common stock at **$2.20** per share, with net proceeds of approximately **$3.3 million**[118](index=118&type=chunk) - The company closed the sale of **335** lots from its Black Oak project in the first half of 2023, generating approximately **$18.1 million** in revenue[127](index=127&type=chunk) [Results of Operations](index=46&type=section&id=Results%20of%20Operations) Results of operations show a **485%** revenue increase to **$21.1 million**, driven by real estate sales, improving gross margin and reducing net loss Revenue by Segment - Nine Months Ended Sep 30 | Segment | 2023 Revenue ($) | 2022 Revenue ($) | % Change | | :--- | :--- | :--- | :--- | | Real Estate | 20,227,362 | 2,494,707 | 711% | | Biohealth | 12,786 | 771,847 | -98% | | Digital Transformation Technology | 28,094 | 14,066 | 100% | | Other | 802,741 | 319,862 | 151% | | **Total Revenue** | **21,070,983** | **3,600,482** | **485%** | Cost of Revenues by Segment - Nine Months Ended Sep 30 | Segment | 2023 Cost of Revenues ($) | 2022 Cost of Revenues ($) | % Change | | :--- | :--- | :--- | :--- | | Real Estate | 12,755,702 | 1,880,914 | 578% | | Biohealth | 21,516 | 512,931 | -96% | | Digital Transformation Technology | 9,145 | 4,574 | 100% | | Other | 222,470 | 80,177 | 177% | | **Total Cost of Revenues** | **13,008,833** | **2,478,596** | **425%** | - The change in net loss was primarily driven by volatility in securities investments and a **$21.7 million** loss on the consolidation of Alset Capital Acquisition Corp. in Q2 2023[131](index=131&type=chunk) [Liquidity and Capital Resources](index=49&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity improved with cash increasing to **$28.0 million**, primarily from operating activities driven by real estate sales and financing activities Summary of Cash Flows - Nine Months Ended | Cash Flow Activity | 2023 ($) | 2022 ($) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | 8,255,675 | (28,331,829) | | Net cash used in investing activities | (748,188) | (15,031,318) | | Net cash provided by financing activities | 3,408,560 | 5,996,133 | - The positive shift in operating cash flow in 2023 was mainly due to property sales from the Black Oak project[133](index=133&type=chunk) [Item 3. Quantitative and Qualitative Disclosure About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) As a smaller reporting company, the company is exempt from providing quantitative and qualitative disclosures about market risk - As a "smaller reporting company," the company is exempt from providing disclosures about market risk[139](index=139&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of September 30, 2023, with no material changes to internal controls during the quarter - Management concluded that the company's disclosure controls and procedures were not effective as of September 30, 2023[139](index=139&type=chunk) - No material changes to internal controls over financial reporting occurred during the quarter[139](index=139&type=chunk) [PART II OTHER INFORMATION](index=51&type=section&id=PART%20II%20OTHER%20INFORMATION) This section covers other required information including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings for the period - The company reported no legal proceedings for the period[139](index=139&type=chunk) [Item 1A. Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, this section on risk factors is not applicable - As a smaller reporting company, this section is not applicable[139](index=139&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds - The company reported no unregistered sales of equity securities[139](index=139&type=chunk) [Item 6. Exhibits](index=52&type=section&id=Item%206.%20Exhibits) The report includes standard filings such as CEO and CFO certifications and Inline XBRL data files - Exhibits filed include certifications from the CEO and CFOs pursuant to Sarbanes-Oxley Act Sections 302 and 906[140](index=140&type=chunk) - Inline XBRL instance documents and related taxonomy files were also filed as part of the report[140](index=140&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to _________ 001-39732 Commission File Number Alset Inc. (Exact name of registrant as specified in its charter) TEXAS 83-1079861 State or other jurisdiction of ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to _________ 001-39732 Commission File Number Alset Inc. (Exact name of registrant as specified in its charter) TEXAS 83-1079861 State or other jurisdiction of ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 001-39732 ALSET INC. (Exact name of registrant as specified in its charter) Texas 83-1079861 | --- | --- | --- | |-- ...

PART I FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) Presents unaudited consolidated financial statements for Q2 2021, showing increased assets and a significant net loss [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Highlights the balance sheet as of June 30, 2021, showing increased total assets, cash, liabilities, and stockholders' equity Consolidated Balance Sheet Highlights (Unaudited) | Metric | June 30, 2021 ($) | December 31, 2020 ($) | | :--- | :--- | :--- | | **Total Assets** | **127,338,547** | **107,713,745** | | Cash | 59,529,026 | 24,965,946 | | Properties under Development | 16,279,723 | 20,505,591 | | **Total Liabilities** | **12,273,761** | **9,718,930** | | **Total Stockholders' Equity** | **115,064,786** | **97,994,815** | [Consolidated Statements of Operations and Other Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Other%20Comprehensive%20Income%20(Loss)) Details the income statement for H1 2021, showing significant revenue growth but a substantial net loss due to other expenses Statement of Operations Summary (Six Months Ended June 30) | Metric | 2021 ($) | 2020 ($) | | :--- | :--- | :--- | | **Total Revenue** | **12,150,346** | **5,030,996** | | Real Estate Revenue | 8,478,673 | 5,001,794 | | Biohealth Revenue | 3,671,673 | 29,202 | | **Operating Loss** | **(5,082,288)** | **(2,550,454)** | | Total Other Income (Expense), Net | (79,161,996) | 2,843,419 | | **Net (Loss) Income** | **(84,696,885)** | **178,312** | | Net (Loss) Income Per Share (Basic & Diluted) | (7.42) | 0.05 | [Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Shows the increase in stockholders' equity driven by capital raising activities, despite a net loss for the period - Total stockholders' equity increased to **$115.1 million** at June 30, 2021, from **$98.0 million** at January 1, 2021[14](index=14&type=chunk)[15](index=15&type=chunk) - The increase was primarily due to capital raising activities, including the issuance of **8,389,324 shares** of common stock for **$39.3 million** and conversion of related party notes, which offset the net loss for the period[14](index=14&type=chunk)[15](index=15&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash flows for H1 2021, indicating significant cash generation from financing activities offsetting operating cash usage Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2021 ($) | 2020 ($) | | :--- | :--- | :--- | | Net Cash from Operating Activities | (10,649,851) | 204,205 | | Net Cash from Investing Activities | 2,234,619 | 220,979 | | Net Cash from Financing Activities | 43,898,095 | 4,706,192 | | **Net Increase in Cash and Restricted Cash** | **34,482,863** | **5,131,376** | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations of accounting policies, diversified operations, going concern status, related party transactions, and equity financing - The company operates in four segments: real estate, digital transformation technology, biohealth, and other business activities[24](index=24&type=chunk)[104](index=104&type=chunk) - Management concluded that initial substantial doubt about the company's ability to continue as a going concern has been alleviated due to a high cash balance (**$59.5 million**), an **$8 million** credit line, and positive revenue from operations[26](index=26&type=chunk)[27](index=27&type=chunk) - The company engaged in significant related-party transactions, including the purchase of warrants, stock, and companies from its CEO, Chan Heng Fai, settled via convertible promissory notes totaling **$63.9 million**[35](index=35&type=chunk)[133](index=133&type=chunk) - In May 2021, the company completed an underwritten public offering, raising net proceeds of **$39.3 million** through the sale of common units and pre-funded units[146](index=146&type=chunk)[148](index=148&type=chunk)[150](index=150&type=chunk) - A subsequent public offering in July 2021 raised approximately **$28.8 million** in net proceeds[192](index=192&type=chunk)[197](index=197&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analyzes the company's financial condition, operations, and liquidity, highlighting significant revenue growth, a substantial net loss, and improved cash position [Business Overview](index=47&type=section&id=Business%20Overview) Describes Alset EHome International as a diversified global holding company with key segments including EHome communities and biohealth - The company is a diversified holding company with operations in the US, Singapore, Hong Kong, South Korea, and Australia[201](index=201&type=chunk) - Key business segments include EHome communities, real estate, financial services, digital transformation, and biohealth[201](index=201&type=chunk) [Results of Operations](index=48&type=section&id=Results%20of%20Operations) Analyzes revenue growth across segments for H1 2021, noting a substantial net loss primarily due to unrealized investment losses and finance costs Revenue by Segment - Six Months Ended June 30 | Segment | 2021 Revenue ($) | 2020 Revenue ($) | Change (%) | | :--- | :--- | :--- | :--- | | Real Estate | 8,478,673 | 5,001,794 | 70% | | Biohealth | 3,671,673 | 29,202 | 12,473% | | **Total** | **12,150,346** | **5,030,996** | **142%** | - The net loss for the six months ended June 30, 2021, was **$84.7 million**, a significant increase from a loss of **$183,073** in the same period of 2020[209](index=209&type=chunk)[228](index=228&type=chunk) - The increased loss was primarily due to a **$79.2 million** 'Other Expense,' which included a **$30.7 million** unrealized loss on securities investment and **$50.8 million** in finance costs[222](index=222&type=chunk) [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) Details the company's improved liquidity, driven by significant cash generation from financing activities, despite cash usage in operations - Cash increased from **$24,965,946** (Dec 31, 2020) to **$59,529,026** (June 30, 2021)[229](index=229&type=chunk) - Net cash from financing activities was **$43.9 million** for the six months ended June 30, 2021, mainly from stock issuance and warrant exercises[233](index=233&type=chunk) - Net cash used in operating activities was **$10.6 million** for the six months ended June 30, 2021[231](index=231&type=chunk) [Item 3. Quantitative and Qualitative Disclosure About Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) The company is exempt from providing market risk disclosures as a smaller reporting company - As a "smaller reporting company," the company is exempt from providing quantitative and qualitative disclosures about market risk[239](index=239&type=chunk) [Item 4. Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of June 30, 2021, with no material changes to internal controls - Management concluded that disclosure controls and procedures were not effective as of June 30, 2021[240](index=240&type=chunk) - No material changes were made to internal controls over financial reporting during the quarter[241](index=241&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings for the period covered by this report - Not Applicable for the period covered by this report[242](index=242&type=chunk) [Item 1A. Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) This section is not applicable as the company is a smaller reporting company - Not applicable to smaller reporting companies[242](index=242&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details equity transactions including a public offering raising $29.2 million and unregistered exchanges with the CEO, utilizing proceeds for subsidiary warrant exercises - In May 2021, the company completed an underwritten public offering of common units and pre-funded units, raising net proceeds of approximately **$29.2 million**[245](index=245&type=chunk)[247](index=247&type=chunk) - The company conducted several unregistered equity exchanges with its CEO, Chan Heng Fai, involving the conversion of common stock to preferred stock and back, and the conversion of a **$13 million** note payable into Series B Preferred Stock[242](index=242&type=chunk)[243](index=243&type=chunk) - On June 14, 2021, CEO Chan Heng Fai converted over **$51.2 million** in convertible promissory notes and accrued interest into **9,163,965 shares** of common stock[247](index=247&type=chunk) [Item 3. Defaults Upon Senior Securities](index=55&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[248](index=248&type=chunk) [Item 4. Mine Safety Disclosures](index=55&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not Applicable[248](index=248&type=chunk) [Item 5. Other Information](index=55&type=section&id=Item%205.%20Other%20Information) The company reported no other information - None[248](index=248&type=chunk) [Item 6. Exhibits](index=56&type=section&id=Item%206.%20Exhibits) Lists all documents filed as part of the report, including agreements, certificates, and officer certifications - Lists various agreements and certifications filed with the report, such as the Underwriting Agreement, Certificates of Designation for Series A and B Preferred Stock, and Sarbanes-Oxley certifications[250](index=250&type=chunk) [Signatures](index=58&type=section&id=SIGNATURES) The report was signed on August 16, 2021, by the Chairman and CEO, Co-CEO, and two Co-CFOs - The report was signed on August 16, 2021, by Chan Heng Fai (Chairman & CEO), Chan Tung Moe (Co-CEO), Rongguo Wei (Co-CFO), and Lui Wai Leung Alan (Co-CFO)[253](index=253&type=chunk)