Revenue and Profitability - Revenue from logistics operations decreased by $19,882, representing a decline due to weakened demand for international shipping services, while overall revenue increased by $7,869 to $1,948,215 in Q3 2025 compared to Q3 2024 [3][8]. - Gross profit fell significantly from $277,707 in Q3 2024 to $57,983 in Q3 2025, attributed to increased shipping costs in serviced regions [4][12]. - The net loss for Q3 2025 increased to $959,409 from $38,797 in Q3 2024, largely driven by elevated general and administrative expenses [8][12]. - For the nine months ended April 30, 2025, the net loss was $1,162,328 compared to a net income of $55,805 for the same period in 2024 [14]. Expenses and Costs - General and administrative expenses surged from $134,473 in Q3 2024 to $960,583 in Q3 2025, primarily due to costs associated with the public offering [5][12]. - Net cash used in operating activities was $2,000,182, a significant decrease from the net cash provided of $121,476 in the prior year [14]. - The company incurred deferred offering costs of $219,125, slightly lower than $245,000 in the previous year [14]. Financing and Capital - The company completed a public offering of 1,750,000 common shares, raising net proceeds of $5,217,937, resulting in working capital of $4,509,290 as of April 30, 2025 [6][8]. - Cash increased to $3,630,884 as of April 30, 2025, compared to $413,129 as of July 31, 2024 [11]. - The total stockholders' equity attributable to Tianci International, Inc. rose to $4,470,701 as of April 30, 2025, from $741,831 as of July 31, 2024 [11]. - Cash flows from financing activities resulted in a net cash increase of $5,217,937, compared to $268,213 in the previous year [14]. - The company raised $5,439,333 from public or private offerings during the nine months ended April 30, 2025, compared to $513,213 in the prior year [14]. Accounts and Cash Management - The ending cash balance as of April 30, 2025, was $3,630,884, up from $646,031 at the same time in 2024 [14]. - Accounts receivable increased by $166,752, compared to an increase of $82,021 in the prior year [14]. - Income taxes payable decreased by $51,920, contrasting with an increase of $22,023 in the previous year [14]. - The company reported a non-cash activity of $714,481 for deferred offering costs net against proceeds from public offerings [14]. - The company had a significant adjustment of $158,412 for warrants issuance to a consultant during the period [14]. Strategic Focus - The company plans to focus on long-distance shipping lines to improve profit margins as it grows [4]. - The company anticipates using a significant portion of its working capital to expand its market presence in logistics services [6].
Tianci International Inc(CIIT) - 2025 Q3 - Quarterly Results