Exro Technologies Inc T.EXRO

The difference between a subsidiary and a parent company:

[Danno13]

1. Subsidiary:

   • A subsidiary is a corporation that another organization fully owns or holds a controlling interest in.
   • It can be an existing company acquired by a parent company or a new entity created by the parent company to expand its consumer base.
   • Subsidiaries operate as independent legal entities, not divisions of the parent company.
   • In some cases, a subsidiary can even control its own subsidiary companies.
   • Parent companies may file consolidated tax returns, simplifying tax calculations for both the parent and its subsidiaries.

2. Parent Company:

   • A parent company has control over its subsidiaries.
   • It is usually larger and more established than its subsidiaries.
   • The parent company may be located in a different country from its subsidiaries.

[Danno13]

With a wholly-owned subsidiary, the parent company owns all of the common stock. As such, there are no minority shareholders, and its stock is not traded publicly. Despite this, it still remains an independent legal body—a corporation with its own organized framework and administration.

[sorrenson]

You are miising some key notes.  They will likely register this in Delaware as SEA is . This gives them a lot of protection.   But one thing they could do is sell off the whole division  as someone  has noted on here. Im sure what ever happens the insiders will be taking care of themselves as usual.