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]

Core Viewpoint - Prestige Wealth Inc. has announced the acquisition of SPW Global Inc. for a total purchase price of US$4,500,000, which will enhance its technology capabilities in the artificial intelligence sector and support the development of AI-driven wealth management solutions for clients [1]. Group 1: Acquisition Details - The acquisition agreement was signed on August 20, 2024, with a total purchase price of US$4,500,000, consisting of US$3 million in cash and US$1.5 million in shares [1]. - The share component includes 1,900,000 class A ordinary shares and 500,000 class B ordinary shares to be issued to the seller and key employees of Wealth AI [1]. - Key employees of Wealth AI will be retained post-acquisition, and the agreement includes non-competition and non-solicitation covenants for three years [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 in Asia [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: Wealth AI Overview - Wealth AI, based in Singapore, provides personalized and cost-effective wealth management solutions utilizing artificial intelligence [3]. - Founded in 2022 by AI experts from leading technology companies, Wealth AI aims to leverage the transformative potential of AI in the wealth management sector [3].

Core Viewpoint - Prestige Wealth Inc. has received a notification from Nasdaq indicating that it no longer meets the minimum bid price requirement for continued listing, with a compliance period until January 20, 2025, to regain compliance [1][2]. Group 1: Compliance Notification - The Company was notified by Nasdaq that it does not meet the continued listing requirement under Nasdaq Listing Rules 5550(a)(2) due to the closing bid price of its Class A ordinary shares for the last 33 consecutive business days [1]. - Nasdaq has granted the Company a compliance period of 180 calendar days, until January 20, 2025, to regain compliance with the minimum bid price requirement [2]. - If the Company fails to regain compliance within this period, it may be eligible for an additional 180 calendar days, provided it meets other listing standards and notifies Nasdaq of its intention to cure the deficiency [2]. Group 2: Company Actions and Intentions - The Company is currently evaluating options to regain compliance and is committed to making reasonable efforts to meet Nasdaq's continued listing requirements [3]. - There is no assurance that the Company will successfully regain compliance with the minimum bid price rule or other Nasdaq listing requirements [3]. 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 [4]. - The Company offers customized wealth management products and services, as well as asset management services through investment funds and discretionary account management [4].

Core Viewpoint - Prestige Wealth (NASDAQ: PWM) experienced a significant stock price surge due to a strong short squeeze, increasing by over 43% in regular trading and over 24% in extended hours, raising its market cap to over $15 million [1]. Group 1: Stock Performance - The stock price of Prestige Wealth has collapsed by more than 94% since July 2023, when it was previously recommended to avoid due to its poor performance compared to other Chinese companies [1]. - On a recent trading day, PWM stock's total volume reached over 1.8 million, significantly higher than its recent average of 104,000, with volumes of 164,000 and 34,200 on the preceding days [2]. Group 2: Financial Results - The company's net revenue for the first half of the year was reported at $565,000, a decline from $1.78 million in the same period the previous year, with net income dropping to $238,000 due to major headwinds [4]. Group 3: Market Dynamics - The surge in PWM stock price is attributed to its popularity among meme investors and day traders, making it easier to manipulate as a penny stock [4]. - Similar trends have been observed with other small Chinese stocks and cryptocurrencies, where traders have engaged in pump and dump activities [4].

Financial Reporting and Internal Controls - As of September 30, 2023, the company has engaged a qualified financial and accounting advisory team to strengthen its financial reporting function and address material weaknesses in internal controls [147]. - The company is subject to requirements for maintaining internal controls, and failure to do so may adversely affect its business, financial condition, and stock price [148]. - The company did not perform an evaluation of its internal control over financial reporting for the years 2021, 2022, and 2023, which raises concerns about potential undiscovered material weaknesses [149]. Nasdaq Listing and Compliance - The company is exempt from certain Nasdaq corporate governance standards, which may afford less protection to investors compared to U.S. domestic issuers [150]. - To maintain its Nasdaq listing, the company must comply with rules regarding minimum stockholders' equity and share price, among other requirements [154]. - If the company fails to satisfy Nasdaq's listing criteria, it risks delisting, which could negatively impact the trading price of its Ordinary Shares [153]. - The company may face delisting risks if the PCAOB cannot inspect its audit documentation located in mainland China, which could adversely affect the value of investments [177]. - The SEC may prohibit the company's securities from trading on U.S. exchanges if its auditor is not subject to PCAOB inspections for two consecutive years, potentially leading to delisting [187]. - The company may face significant material adverse consequences if it fails to meet Nasdaq's continued listing standards, including reduced liquidity and increased regulatory scrutiny [190]. - The company’s shares may be classified as "penny stock" if delisted from Nasdaq, leading to stricter trading rules and reduced trading activity [190]. Shareholder Structure and Control - Chi Tak Sze owns 5,135,788.8 Class B Ordinary Shares, representing 96.24% of the voting power, allowing control over major corporate decisions [200]. - 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 [198]. - The potential conversion of Class B shares into Class A shares could dilute existing Class A shareholders, impacting market prices [201]. Financial Position and Risks - The company has prepared its financial statements on a "going concern" basis, indicating reliance on the successful commercialization of its services for future operations [197]. - The company has raised gross proceeds of US$5.75 million from its initial public offering, with allocations including approximately US$0.5 million for brand promotion and US$0.6 million for product and service expansion [611]. - The company limits credit risk by transacting with high-rated broker-dealers and banks, ensuring a secure financial environment [607]. - Liquidity risk is managed by maintaining adequate cash and bank balances to finance operations effectively [608]. - Interest rate risk is considered minimal as the company's cash held with banks is short-term, with terms less than one month [609]. Market Conditions and Share Price Volatility - The market price of the company's Class A Ordinary Shares may be volatile, influenced by various factors including investor perception and economic conditions in Hong Kong and mainland China [194]. - The company may be subject to securities litigation due to significant price volatility in its Class A Ordinary Shares, which could divert management's attention and resources [196]. - The company is at risk of losing visibility in financial markets if analysts cease coverage or downgrade its stock, which could lead to a decline in share price [193]. - The PCAOB has determined it can secure access to inspect audit firms in mainland China and Hong Kong, but future obstructions could lead to new determinations affecting the company [185]. Future Plans and Costs - The company expects to incur significant legal, accounting, and compliance costs as it transitions from being an emerging growth company [170]. - The company does not intend to pay dividends for the foreseeable future, opting to retain earnings for business operations and expansion [192]. - The company may require additional financing to support ongoing operations and its business plan [197].