PART I Item 1. Financial Statements Presents unaudited condensed consolidated financial statements for Aether Holdings, Inc., detailing financial position, results of operations, cash flows, and notes, including a mitigated 'going concern' issue Condensed Consolidated Balance Sheets (Unaudited) | | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total Assets | $367,761 | $719,441 | | Total Liabilities | $964,061 | $603,361 | | Total Stockholders' Equity (Deficit) | ($596,300) | $116,080 | Condensed Consolidated Statements of Operations (Unaudited) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $341,906 | $365,220 | $696,549 | $730,633 | | Gross Profit | $232,290 | $255,635 | $479,375 | $507,749 | | Net Loss | ($390,181) | ($182,275) | ($712,380) | ($276,214) | | Loss per Share | ($0.04) | ($0.02) | ($0.07) | ($0.03) | Condensed Consolidated Statements of Cash Flows (Unaudited, Six Months Ended) | | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($361,771) | ($157,093) | | Net cash (used in) provided by financing activities | ($2,789) | $843,840 | | Net (decrease) increase in cash | ($364,560) | $686,747 | | Cash, end of the period | $193,263 | $784,853 | Note 1: Description of Business and Organization Aether Holdings provides proprietary research analytics via SentimenTrader.com, addressing 'going concern' issues and negative working capital with a successful April 2025 IPO - The company is principally engaged in providing proprietary research analytics, data, and tools for equity traders through its flagship platform, SentimenTrader.com33 - The financial statements were prepared on a going concern basis, but the company has incurred losses since inception, had negative working capital of $598,568 as of March 31, 2025, and an accumulated deficit35 - Subsequent to the reporting period, the company consummated an IPO on April 11, 2025, and a fully exercised Over-Allotment Option on April 16, 2025, generating total gross proceeds of $8,901,000. Management believes this significantly improves the company's financial position363738 Note 2: Summary of Significant Accounting Policies Outlines significant accounting policies including ASC 606 revenue recognition, capitalization of deferred IPO costs, and the company's single operating segment structure - The primary source of revenue is from online subscription services to the company's cloud-based software, recognized ratably over the contract term (typically one month to one year) under ASC 60655 - Deferred offering costs, including legal, accounting, and underwriter fees directly attributable to the IPO, are capitalized. For the six months ended March 31, 2025, the company recorded deferred offering costs of $161,80650 - The company operates as a single operating segment, with its Chief Executive Officer acting as the Chief Operating Decision Maker (CODM)47 Note 3: Deferred Revenue Details deferred revenue as a short-term liability, showing an increase to $395,077 by March 31, 2025, with $711,549 added and $696,549 recognized during the period Deferred Revenue Movement (Six Months Ended March 31, 2025) | | Amount | | :--- | :--- | | Opening balance (Oct 1, 2024) | $380,077 | | Additional deferred revenue accrual | $711,549 | | Revenue released from deferred revenue | ($696,549) | | Ending balance (Mar 31, 2025) | $395,077 | Note 7: Loan Payable Details a short-term, unsecured loan of $20,000 at 5% interest, with an outstanding balance of $20,516 as of March 31, 2025, subsequently settled post-IPO - The company entered into a short-term loan on March 16, 2025, with a 5% annual interest rate86 - As of March 31, 2025, the total outstanding loan payable was $20,516. The $20,000 principal was subsequently settled on April 15, 202586 Note 11: Related Party Transactions Details related party transactions, including $391,597 due to related parties and increased executive compensation of $361,002 for the six months ended March 31, 2025 Due to Related Parties | | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total due to related parties | $391,597 | $191,952 | Wages and Salaries for Executive Officers and Directors (Six Months Ended) | | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Total compensations | $361,002 | $159,100 | Note 15: Subsequent Events Highlights post-period events including the April 2025 IPO raising $8.9 million in gross proceeds and the incorporation of Alpha Edge Media Inc. for new newsletter services - The company consummated its IPO and fully exercised over-allotment option in April 2025, generating total gross proceeds of $8,901,000134135 - On April 30, 2025, the company incorporated a new wholly-owned subsidiary, Alpha Edge Media Inc., to support its investor relations and manage new newsletter services136 Management's Discussion and Analysis of Financial Condition and Results of Operations Discusses financial performance, noting a 4.7% revenue decrease, widened net loss due to higher G&A, declining subscribers, and improved liquidity from the $8.9 million IPO Overview and Key Business Metrics Aether's key business metrics show significant declines in free and paid subscribers due to unrepeated marketing, offset by a 31.9% ARPU increase, alongside a recent IPO and new subsidiary - The company generates revenue from subscriptions to its cloud-based software platform, SentimenTrader.com, which provides research analytics for equity traders139142 - Post-period end, the company completed an IPO raising $8.9 million in gross proceeds and incorporated a new subsidiary, Alpha Edge Media, Inc., to expand its newsletter business143144 Key Business Metrics (Six Months Ended March 31) | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Free Subscribers | 593 | 5,085 | (88.3)% | | Paid Subscribers | 2,357 | 3,263 | (27.7)% | | Average conversion rate | 23.0% | 26.9% | (14.4)% | | Average Revenue Per User (ARPU) | $295 | $224 | 31.9% | Results of Operations Compares operating results, showing a 4.7% revenue decrease and a 157.9% wider net loss for the six months ended March 31, 2025, driven by higher G&A expenses Results of Operations Comparison (Six Months Ended March 31) | | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $696,549 | $730,633 | (4.7)% | | Gross Profit | $479,375 | $507,749 | (5.6)% | | General and administrative expenses | $1,107,790 | $703,624 | 57.4% | | Net Loss | ($712,380) | ($276,214) | 157.9% | - The decrease in revenue for the six months ended March 31, 2025 was primarily due to a decrease in normalized Paid Subscribers from approximately 2,520 to 2,357173 - The increase in general and administrative expenses for the six-month period was mainly due to a $100,242 increase in professional fees (for the IPO) and a $264,272 increase in salaries and benefits (from new executive appointments)180181182 Liquidity and Capital Resources Details negative working capital of $598,568 and increased cash used in operations, but highlights the $8.9 million IPO as sufficient liquidity for the next 12 months - As of March 31, 2025, the company had negative working capital of $598,568, with current assets of $365,493 and current liabilities of $964,061209 Cash Flow Summary (Six Months Ended March 31) | | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($361,771) | ($157,093) | | Net cash (used in) provided by financing activities | ($2,789) | $843,840 | | Cash, end of the period | $193,263 | $784,853 | - Management believes the successful IPO in April 2025, which generated gross proceeds of $8,901,000, has significantly improved the company's liquidity and financial position, providing sufficient capital for at least the next 12 months211 Quantitative and Qualitative Disclosures About Market Risk As a 'smaller reporting company,' the company is exempt from providing market risk disclosures - As a 'smaller reporting company' as defined by Item 10 of Regulation S-K, we are not required to provide information required by this Item218 Controls and Procedures Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level for the period covered by the report220 - There were no changes in internal control over financial reporting during the fiscal quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting222 PART II - OTHER INFORMATION Legal Proceedings The company is not currently involved in any legal proceedings or claims likely to materially adversely affect its business or financial condition - The company is not a party to, nor aware of, any legal proceedings, investigations or claims which are likely to have a material adverse effect on its business224 Risk Factors As a 'smaller reporting company,' risk factor information is not required in this 10-Q, referring readers to the Form S-1 Registration Statement - As a 'smaller reporting company', the company is not required to provide this information and refers to its Registration Statement on Form S-1 (File No. 333-284081) for risk factors225 Unregistered Sales of Equity Securities and Use of Proceeds No unregistered equity sales occurred; details use of $7.7 million net IPO proceeds for professional fees, loan repayment, and working capital, including back-paid salaries - No unregistered sales of equity securities were conducted during the three months ended March 31, 2025226 - The IPO in April 2025 generated net proceeds of $7,705,350 after deducting commissions and expenses228 - A portion of the IPO proceeds was used for working capital, including the back payment of $437,000 in salaries and director fees to officers and directors229 Other Items (Defaults, Mine Safety, Other Info, Exhibits) Confirms no defaults on senior securities, no mine safety disclosures, no other material information, and lists exhibits filed with the Form 10-Q - Item 3: No defaults upon senior securities are reported230 - Item 4: Mine and Safety Disclosure is not applicable231 - Item 6: A list of exhibits filed with the Form 10-Q is provided232233
Aether Holdings Inc(ATHR) - 2025 Q2 - Quarterly Report