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ATIF(ZBAI) - 2025 Q1 - Quarterly Report
ZBAIATIF(ZBAI)2024-12-19 14:29

Financial Performance - For the three months ended October 31, 2024, the company reported no revenues compared to 125,000inthesameperiodof2023,indicatingasignificantdecline[20].−ThenetlossforthethreemonthsendedOctober31,2024,was125,000 in the same period of 2023, indicating a significant decline [20]. - The net loss for the three months ended October 31, 2024, was 367,074, compared to a net loss of 625,463forthesameperiodin2023,representingareductionofabout41625,463 for the same period in 2023, representing a reduction of about 41% [20]. - Total revenue for the three months ended October 31, 2024, was nil, a decrease of approximately 0.1millionor1000.1 million or 100% compared to 0.1 million for the same period in 2023 [102][103][110]. - Net loss for the three months ended October 31, 2024, was approximately 0.4million,adecreaseofapproximately0.4 million, a decrease of approximately 0.2 million from a net loss of 0.6millionforthesameperiodin2023[116].−ThecompanyprovidedconsultingservicestononeandthreecustomersforthethreemonthsendedOctober31,2024,and2023,respectively[102][110].OperatingExpenses−TotaloperatingexpensesforthethreemonthsendedOctober31,2024,were0.6 million for the same period in 2023 [116]. - The company provided consulting services to none and three customers for the three months ended October 31, 2024, and 2023, respectively [102][110]. Operating Expenses - Total operating expenses for the three months ended October 31, 2024, were 521,109, down from 781,779intheprioryear,reflectingadecreaseofapproximately33781,779 in the prior year, reflecting a decrease of approximately 33% [20]. - General and administrative expenses decreased by approximately 0.3 million, or 37%, from approximately 0.7millionforthethreemonthsendedOctober31,2023,toapproximately0.7 million for the three months ended October 31, 2023, to approximately 0.4 million for the same period in 2024 [111]. - Total operating expenses decreased by approximately 0.3million,or330.3 million, or 33%, from approximately 0.8 million for the three months ended October 31, 2023, to approximately 0.5millionforthesameperiodin2024[108].−RentexpensesforthethreemonthsendedOctober31,2024,were0.5 million for the same period in 2024 [108]. - Rent expenses for the three months ended October 31, 2024, were 9,000, significantly lower than 125,679forthesameperiodin2023,reflectingareductioninleasetermsandspace[69].AssetsandLiabilities−AsofOctober31,2024,totalcurrentassetsincreasedto125,679 for the same period in 2023, reflecting a reduction in lease terms and space [69]. Assets and Liabilities - As of October 31, 2024, total current assets increased to 5,785,278 from 2,898,748asofJuly31,2024,markinganincreaseofapproximately992,898,748 as of July 31, 2024, marking an increase of approximately 99% [19]. - The company had current liabilities of approximately 625,048, down from 988,417asofJuly31,2024,adecreaseofabout37988,417 as of July 31, 2024, a decrease of about 37% [19]. - The company's cash and cash equivalents decreased to 457,764 as of October 31, 2024, from 1,249,376asofJuly31,2024,adeclineofabout631,249,376 as of July 31, 2024, a decline of about 63% [19]. - As of October 31, 2024, the company held cash and cash equivalents of 114,721 in U.S. banks and 343,043ininvestmentbankaccounts[57].−AsofOctober31,2024,prepaidexpensesandothercurrentassetstotaled343,043 in investment bank accounts [57]. - As of October 31, 2024, prepaid expenses and other current assets totaled 50,224, a decrease of 58.9% from 122,224asofJuly31,2024[65].CashFlow−Thecompanyreportedoperatingcashoutflowsofapproximately122,224 as of July 31, 2024 [65]. Cash Flow - The company reported operating cash outflows of approximately 800,628 for the three months ended October 31, 2024, compared to cash inflows of approximately 195,353inthesameperiodof2023[29].−OperatingcashoutflowsforthethreemonthsendedOctober31,2024,wereapproximately195,353 in the same period of 2023 [29]. - Operating cash outflows for the three months ended October 31, 2024, were approximately 0.8 million, while there were cash inflows of approximately 0.2millioninthesameperiodof2023[122].−Thenetcashprovidedbyinvestingactivitieswas0.2 million in the same period of 2023 [122]. - The net cash provided by investing activities was 9,016 for the three months ended October 31, 2024, compared to a net cash used of approximately 0.4millioninthesameperiodof2023[125].−TheCompanyhadanetdecreaseincashofapproximately0.4 million in the same period of 2023 [125]. - The Company had a net decrease in cash of approximately 791,612 for the three months ended October 31, 2024, compared to a decrease of approximately 244,797inthesameperiodin2023[122].ShareholderEquity−Shareholders′equityincreasedto244,797 in the same period in 2023 [122]. Shareholder Equity - Shareholders' equity increased to 4,997,680 as of October 31, 2024, from 1,753,754asofJuly31,2024,reflectinganincreaseofapproximately1851,753,754 as of July 31, 2024, reflecting an increase of approximately 185% [19]. - The company had a capital contribution of 3,611,000 from a shareholder in the form of trading securities during the three months ended October 31, 2024 [26]. - On October 28, 2024, the Company was granted 7,850,000 ordinary shares valued at 3,730,320asacapitalcontribution,subjecttorestrictionsuntilMarch2025[67].GoingConcern−Thecompanycontinuestofaceuncertaintyregardingitsabilitytocontinueasagoingconcernduetoahistoryofnetlossesandcashoutflowsfromoperatingactivities[29].−TheCompanyiscurrentlyfacinguncertaintiesregardingitsabilitytocontinueasagoingconcernduetoahistoryofnetlossesandcashoutflowsfromoperatingactivities[118].LegalandCompliance−TheCompanyiscurrentlyinvolvedinlegalproceedings,includingalawsuitfiledbyJ.P.MorganSecuritiesLLCfor3,730,320 as a capital contribution, subject to restrictions until March 2025 [67]. Going Concern - The company continues to face uncertainty regarding its ability to continue as a going concern due to a history of net losses and cash outflows from operating activities [29]. - The Company is currently facing uncertainties regarding its ability to continue as a going concern due to a history of net losses and cash outflows from operating activities [118]. Legal and Compliance - The Company is currently involved in legal proceedings, including a lawsuit filed by J.P. Morgan Securities LLC for 5,064,160 in damages related to a stock transaction [142]. - A settlement agreement was reached with Boustead, requiring the Company to pay a total of 1millioninthreeinstallments,withthefirstinstallmentof1 million in three installments, with the first installment of 250,000 due upon execution of the agreement [141]. - The company filed various certifications as part of its quarterly report, including those from the Chief Executive Officer and Chief Financial Officer [31.1][31.2][32.1][32.2]. - The certifications attached to the quarterly report comply with the Sarbanes-Oxley Act of 2002, ensuring regulatory adherence [32.1][32.2]. Strategic Plans - The company plans to transition its consulting services from PRC-based customers to more international customers to mitigate risks [59]. - The company aims to expand operations to other Asian countries, such as Malaysia, Vietnam, and Singapore, while continuing to focus on the North American market [101]. - The company has successfully helped nine Chinese enterprises to be quoted on the U.S. OTC markets since its inception [101]. Accounting and Reporting - The company is evaluating the impact of recent accounting updates on its consolidated financial statements [61][62]. - The company assesses collectability of accounts receivable on an individual basis due to having limited customers with different characteristics [39]. - The Company is in the process of evaluating steps to improve its disclosure controls and procedures, including hiring qualified accounting personnel and implementing training programs [130].