HONG KONG, March 27, 2025 (GLOBE NEWSWIRE) -- Prestige Wealth Inc. (Nasdaq: PWM) (the “Company” or “Prestige Wealth”), a wealth management and asset management services provider based in Hong Kong, today announced that the Company will change its business address and mailing address to Office Unit 6620B, 66/F, The Center, 99 Queen’s Road Central, Central, Hong Kong, effective March 27, 2025. The Company believes that the new, easily accessible location provides a conducive environment for the Company to mai ...

Core Viewpoint - Prestige Wealth Inc. has launched an AI-powered financial news intelligence agent through its subsidiary InnoSphere Tech Inc., aimed at enhancing market information delivery and sentiment analysis capabilities [1][2]. Company Overview - Prestige Wealth Inc. is a wealth management and asset management services provider based in Hong Kong [1]. - InnoSphere Tech Inc. is a wholly owned AI fintech subsidiary of Prestige Wealth Inc. [3]. Product Features - The AI financial news intelligence agent integrates advanced natural language processing technology with real-time market monitoring [2]. - It offers features such as personalized news push, intelligent summarization, sentiment analysis, and market impact forecasting [2]. - The system incorporates top-tier large language models like ChatGPT and LLaMA3, along with a proprietary financial knowledge base [3].

Core Insights - Prestige Wealth Inc. has announced a significant upgrade to its AI fintech subsidiary, InnoSphere Tech Inc., through the integration of DeepSeek, an advanced AI technology [1] - The integration includes top-tier large language models such as ChatGPT and LLaMA3, combined with real-time market data and a proprietary financial knowledge base [1] - This initiative aims to enhance the efficiency and productivity of fintech solutions for global clients [1] Company Developments - InnoSphere Tech Inc. is a wholly owned subsidiary of Prestige Wealth Inc. focused on AI fintech services [1] - The upgrade is part of a broader strategy to develop next-generation AI-powered fintech systems [1] - The integration of advanced AI technologies is expected to drive operational efficiency within the company [1]

Financial Reporting and Internal Controls - As of September 30, 2024, the company has engaged a qualified financial and accounting advisory team to improve internal control over financial reporting[129] - The effectiveness of internal controls is crucial to prevent fraud, and weaknesses may adversely affect the company's financial condition and share price[131] - Increased costs are anticipated as a result of being a public company, particularly after ceasing to qualify as an "emerging growth company"[147] - The Group's financial statements have been prepared on a "going concern" basis, indicating reliance on the successful commercialization of current services to achieve profitability[178] Compliance and Regulatory Risks - The company is exempt from certain Nasdaq corporate governance standards as a foreign private issuer, which may afford less protection to investors[134] - If the company fails to meet Nasdaq listing requirements, it could face delisting, negatively impacting share price and liquidity[135] - The company received a notification from Nasdaq on July 23, 2024, regarding non-compliance with the minimum bid price requirement, as the closing bid price was below $1.00 for 30 consecutive business days[170] - The company regained compliance with the minimum bid price requirement on December 18, 2024, with the closing bid price being $1.00 or greater for more than ten consecutive business days[170] - The company may face delisting risks if it fails to meet Nasdaq's continued listing standards, which could adversely affect liquidity and market price[168] - The company is subject to the Holding Foreign Companies Accountable Act (HFCAA), which could impact its ability to access U.S. capital markets if audit documentation cannot be inspected[154] - The PCAOB has determined it can inspect registered public accounting firms in mainland China and Hong Kong, but future access could be obstructed by PRC authorities[163] - The company may be affected by legislative changes that could reduce the time frame for delisting if its auditor is not subject to PCAOB inspections for two consecutive years[159] Market and Shareholder Considerations - The company qualifies as an "emerging growth company," allowing it to take advantage of reduced disclosure requirements, which may affect investor attractiveness[144] - The market price of the company's Class A Ordinary Shares may be volatile, influenced by various factors including market fluctuations unrelated to the company's performance[174] - The company’s Class A Ordinary Shares may be thinly traded, leading to potential difficulties in selling shares at desired prices[167] - The dual-class share structure allows Class B shareholders 20 votes per share compared to 1 vote for Class A, potentially limiting influence on corporate matters[179] - The potential conversion of Class B shares into Class A shares may have a dilutive effect on existing Class A shareholders, affecting market price[180] - The trading market for the company's Ordinary Shares may decline if analysts do not publish research or issue negative reports[173] Operational and Financial Risks - The company faces risks related to acquisitions, including management distraction and difficulties in retaining key employees and customers[130] - The Group limits credit risk by transacting with broker-dealers, banks, and regulated exchanges that have high credit ratings[644] - Liquidity risk is managed by monitoring liquid capital and maintaining adequate cash and bank balances to finance operations[646] - Interest rate risk is considered minimal as cash held with banks is short-term, with terms less than one month[647] - Inflation has not had a material impact on the Group's results of operations in recent years[648] - The Group may require additional financing to fund ongoing operations and expected business plans[178] - The Group's operations may be influenced by fluctuations in quarterly results and changes in financial estimates by analysts[177]

Financial Performance - Net revenues for the six months ended March 31, 2024, were $497,629, representing a 59.01% increase from $312,964 in the same period of fiscal year 2023[3] - The loss from operations was $608,000, a significant decline from an income of $1,093 in the same period of fiscal year 2023[6] - Net loss for the six months ended March 31, 2024, was $503,429, compared to a net income of $25,560 in the same period of fiscal year 2023[8] - Total net revenue for the six months ended March 31, 2024, was $497,629, compared to $312,964 for the same period in 2023, representing a 59% increase[24] - The company reported a net loss of $503,429 for the six months ended March 31, 2024, compared to a net income of $25,560 in 2023[24] - Total comprehensive loss for the period was $502,748 in 2024, compared to a comprehensive income of $31,576 in 2023[24] Operating Costs - Operating costs and expenses surged to $1,105,629, a 254.51% increase from $311,871 in the prior year, primarily due to higher wages, depreciation, and audit fees[5] - Selling, general and administrative expenses surged to $1,105,629 in 2024, up from $311,871 in 2023, indicating a 254% increase[24] Revenue Breakdown - Net revenue from wealth management services decreased to $11,685, down from $74,875 in the prior year, attributed to fewer referral cases[9] - Net revenue from asset management services increased to $485,944, up from $238,089, driven by new client advisory services[9] - Advisory service fees increased significantly to $459,974 in 2024 from $212,486 in 2023, marking a 116% growth[24] Share Performance - Basic and diluted loss per share was $0.055, compared to earnings per share of $0.003 in the same period of fiscal year 2023[10] - Basic and diluted loss per ordinary share was $0.055 in 2024, compared to earnings of $0.003 in 2023[24] - The weighted average number of ordinary shares outstanding increased to 9,150,000 in 2024 from 8,000,000 in 2023[24] Cash and Other Income - As of March 31, 2024, cash and cash equivalents decreased to $294,548 from $431,307 as of September 30, 2023[11] - Other income for the six months ended March 31, 2024, was $118,580, compared to $3,335 in 2023[24] Acquisitions - The company completed the acquisition of SPW Global Inc. and its subsidiary Wealth AI, enhancing its technology-driven wealth management capabilities[16] - The company also acquired InnoSphere Tech Inc. and Tokyo Bay Management Inc., expanding its data collection and wealth management services in the Asia-Pacific region[17][18] Foreign Currency Impact - The foreign currency translation adjustment resulted in a gain of $681 in 2024, down from a gain of $6,016 in 2023[24]

Core Viewpoint - Prestige Wealth Inc. reported significant growth in net revenues for the first half of fiscal year 2024, driven by asset management services, despite a notable loss from operations and a decrease in wealth management revenues [2][4][10]. Financial Performance - Net revenues increased to $497.629 million for the six months ended March 31, 2024, from $312.964 million in the same period of 2023, marking a 59.01% increase [3][4]. - Operating costs and expenses surged to $1.105629 billion, up 254.51% from $311.871 million in the previous year [3][5]. - The company reported a loss from operations of $608,000, a significant decline from an income of $1,093 in the prior year [3][8]. - Net loss amounted to $503.429 million, compared to a net income of $25.560 million in the same period of 2023 [3][10]. - Basic and diluted loss per share was $0.055, a decrease from earnings per share of $0.003 in the previous year [3][11]. Revenue Breakdown - Wealth management services generated $11.685 million, down from $74.875 million, primarily due to a decrease in referral cases [4][7]. - Asset management services saw revenues rise to $485.944 million from $238.089 million, attributed to new client advisory services [4][7]. Cash Flow and Balance Sheet - Cash and cash equivalents decreased to $294.548 million as of March 31, 2024, from $431.307 million as of September 30, 2023 [12][24]. - Net cash used in operating activities was $2.996 million, contrasting with net cash provided of $454.660 million in the same period of 2023 [13]. - Total assets were reported at $6.642 billion, down from $6.864 billion as of September 30, 2023 [24]. Recent Developments - The company completed several strategic acquisitions in late 2024, including Wealth AI, InnoSphere Tech, and Tokyo Bay Management, aimed at enhancing its technology and service offerings in wealth management [17][19][20]. - These acquisitions are expected to leverage advanced technology and data analytics to improve service delivery and client engagement in the wealth management sector [18][19].

Core Viewpoint - Prestige Wealth Inc. has regained compliance with Nasdaq's minimum bid price requirement, allowing it to continue its listing on the Nasdaq Capital Market [1][3]. Group 1: Compliance with Nasdaq Requirements - On July 23, 2024, Nasdaq notified Prestige Wealth Inc. that its Class A ordinary shares had been below the minimum bid price of $1.00 for 33 consecutive business days, resulting in non-compliance with Nasdaq Listing Rule 5550(a)(2) [2]. - To regain compliance, the company needed to maintain a minimum closing bid price of $1.00 or more for at least 10 consecutive business days [2]. - Nasdaq confirmed that from December 4, 2024, to December 17, 2024, the closing bid price of the company's shares was at or above $1.00, thus closing the compliance matter [3]. Group 2: Company Overview - Prestige Wealth Inc. is a wealth management and asset management services provider based in Hong Kong, focusing on high-net-worth and ultra-high-net-worth clients in Asia [4]. - The company offers customized wealth management products and tailored value-added services, along with asset management services through managed investment funds and discretionary account management [4].

Core Insights - Prestige Wealth Inc. has completed the acquisition of InnoSphere Tech Inc. and Tokyo Bay Management Inc. on December 16, 2024, enhancing its service offerings in wealth management and asset management [1][2]. Company Overview - Prestige Wealth Inc. is a wealth management and asset management services provider based in Hong Kong, focusing on high-net-worth and ultra-high-net-worth clients in Asia [3]. - The company offers customized wealth management products and tailored value-added services, along with asset management services through managed investment funds and discretionary account management [3]. InnoSphere Tech Overview - InnoSphere Tech specializes in web scraping technology to collect financial and wealth management data, enabling the training of specialized large models for the wealth management industry [4]. - This technology provides significant foundational support to clients in the financial sector, surpassing traditional general-purpose models [4]. Tokyo Bay Overview - Tokyo Bay Management Inc. is based in Tokyo, Japan, and has built a strong client base and local market knowledge over the years [5]. - The company provides wealth management services, family affairs services, lifestyle management services, and related value-added services to high-net-worth clients in Japan [5].

Core Viewpoint - Prestige Wealth Inc. has entered into a definitive acquisition agreement to purchase Tokyo Bay Management Inc. for a total price of US$1,500,000, enhancing its strategy in the Asian wealth management industry [1]. Group 1: Acquisition Details - The acquisition involves the purchase of all shares of Tokyo Bay, with the total purchase price being US$1,500,000 [1]. - The payment will be made in the form of 2,500,000 newly issued Class B ordinary shares at a price of US$0.60 per share, along with warrants to purchase 1,875,000 Class A ordinary shares at an exercise price of US$0.72 [1]. - Key employees of Tokyo Bay will be retained post-acquisition, and there will be non-competition and non-solicitation covenants for three years from the seller parties [1]. Group 2: Company Background - Prestige Wealth Inc. is a wealth management and asset management services provider based in Hong Kong, focusing on high-net-worth and ultra-high-net-worth clients [2]. - The company offers customized wealth management products and tailored value-added services, along with discretionary account management and asset management-related advisory services [2]. Group 3: Tokyo Bay Overview - Tokyo Bay is based in Tokyo, Japan, and has built a strong client base and local market knowledge, providing wealth management and lifestyle management services to high-net-worth clients [3].

Group 1: Acquisition of InnoSphere Tech Inc. - Prestige Wealth Inc. announced the acquisition of InnoSphere Tech Inc. for a total purchase price of US$2,100,000, which will be paid in the form of 3,500,000 newly issued Class B ordinary shares at a price of US$0.60 per share [1] - The acquisition includes warrants to purchase 2,625,000 Class A ordinary shares at an exercise price of US$0.72, which will become exercisable six months after issuance and expire five years later [1] - The acquisition is expected to close in the fourth quarter of 2024 and aims to enhance PWM's technology capabilities in the artificial intelligence sector, particularly for wealth management services [1] Group 2: Acquisition of SPW Global Inc. - On November 4, 2024, Prestige Wealth Inc. completed the acquisition of SPW Global Inc., which wholly owns Wealth AI PTE LTD, a company based in Singapore [2] Group 3: Company Overview - Prestige Wealth Inc. is a wealth management and asset management services provider based in Hong Kong, focusing on high-net-worth and ultra-high-net-worth clients in Asia [3] - The company offers customized wealth management products and asset management services, including discretionary account management and advisory services [3] Group 4: InnoSphere Tech Overview - InnoSphere Tech specializes in web scraping technology to collect data relevant to finance and wealth management, enabling the training of specialized large models for the wealth management industry [4] Group 5: Wealth AI Overview - Wealth AI, founded in 2022 by AI experts, provides personalized and cost-effective wealth management solutions using artificial intelligence [5]