ATIF(ZBAI) - 2023 Q3 - Quarterly Report

Financial Performance - Total revenues for the three months ended April 30, 2023, were $100,000, a decrease of 61.8$261,925 for the same period in 2022[19] - Operating expenses for the three months ended April 30, 2023, were $701,934, an increase of 17.3$598,620 in the same period of 2022[19] - The net loss attributable to ATIF Holdings Limited for the three months ended April 30, 2023, was $335,770, compared to a net income of$228,316 for the same period in 2022[19] - The company reported a comprehensive loss of $335,770 for the three months ended April 30, 2023, compared to a comprehensive income of$269,055 for the same period in 2022[19] - For the nine months ended April 30, 2023, net income was $362,696 compared to a net loss of$1,992,933 for the same period in 2022[23] - The company reported a net loss of $335,770 for the three months ended April 30, 2023, compared to a net income of$228,316 for the same period in 2022[20] - Cash flows from operating activities resulted in a net cash used of $1,361,108 for the nine months ended April 30, 2023, compared to a net cash used of$283,267 for the same period in 2022[23] - The company had a cash balance of $467,586 at the end of April 30, 2023, down from$1,306,038 at the end of April 30, 2022[23] Assets and Liabilities - Total current assets as of April 30, 2023, were $6,672,023, an increase of 11.4$5,992,460 as of July 31, 2022[18] - Total liabilities as of April 30, 2023, were $3,383,237, a decrease of 10.6$3,784,348 as of July 31, 2022[18] - Total assets decreased from $5,733,173 at April 30, 2022, to$4,784,348 at April 30, 2023[20] - The Company had cash of $0.5 million as of April 30, 2023, against current liabilities of$2.6 million[30] - The balance of due from buyers of LGC as of April 30, 2023, was $2,654,767, which includes principal of$2,300,000 and interest of $354,767[74] - The balance due to third parties increased to$1,092,828 as of April 30, 2023, from $500,000 as of July 31, 2022, indicating a significant rise of 118.6$467,586, reflecting a decrease from previous periods[18] - As of April 30, 2023, the company had cash of $0.5 million, down from$1.8 million as of July 31, 2022, indicating a significant decrease in liquidity[62] - The Company expects to collect consulting service fees of $3.3 million over the next 12 months from four service-in-progress agreements[30] - The Company intends to finance future working capital requirements through cash generated from operating activities and equity financings[31] Operational Insights - The company anticipates future sales and profitability to be influenced by its ability to develop and introduce new products and services[16] - The company plans to expand its sales and marketing capabilities and may consider acquisitions in the future[16] - The company has experienced operating cash outflows of$1.4 million for the nine months ended April 30, 2023, compared to $0.3 million for the same period in 2022[28] - The management believes that the Company will continue as a going concern for the next 12 months despite uncertainties regarding cash flows[30] - The Company operates primarily through ATIF Inc. following the disposal of ATIF HK and Huaya on May 31, 2022[56] Revenue Concentration - For the three months ended April 30, 2023, one customer accounted for 100$109,967, compared to $136,516 for the same period in 2022[23] - Depreciation expense for the three months ended April 30, 2023, was$16,656, compared to $13,765 for the same period in 2022, indicating an increase in asset depreciation[76] - The company's intangible assets as of April 30, 2023, were valued at$93,331, down from $153,331 as of July 31, 2022, reflecting a decrease in intangible asset value[77] Lease Obligations - Operating lease expenses for the three months ended April 30, 2023, were$121,655, compared to $101,580 for the same period in 2022, representing an increase of approximately 19.9$181,414, a decrease of 51.4% from $372,820 in the same period of 2022[83] - Right-of-use assets, net, decreased to$1,170,495 as of April 30, 2023, from $1,383,464 as of July 31, 2022, reflecting a decline of approximately 15.4$1,225,937 as of April 30, 2023, from $1,418,310 as of July 31, 2022, a reduction of about 13.5$193,459, with $64,486 due for the three months ending July 31, 2023[86]