Financial Performance - Total revenues for the six months ended September 30, 2024, were $704,339, a decrease of 6.1% compared to $750,626 in the same period of 2023[7] - Net loss for the six months ended September 30, 2024, was $3,274,725, compared to a net loss of $751,660 for the same period in 2023, representing a significant increase in losses[7] - Basic and diluted loss per share for the six months ended September 30, 2024, was $0.21, compared to $0.06 for the same period in 2023[7] - Total expenses for the six months ended September 30, 2024, were $3,984,302, significantly higher than $1,490,632 in the same period of 2023, indicating increased operational costs[7] - For the six months ended September 30, 2024, the net loss was $3,274,725, compared to a net loss of $751,660 for the same period in 2023, indicating an increase in losses of approximately 335%[14] Assets and Liabilities - Total current assets as of September 30, 2024, were $12,258,787, slightly up from $12,256,426 as of March 31, 2024[5] - Total liabilities increased to $8,711,379 as of September 30, 2024, compared to $7,298,345 as of March 31, 2024, indicating a rise in financial obligations[5] - Shareholders' equity decreased to $6,901,430 as of September 30, 2024, down from $9,285,488 as of March 31, 2024, reflecting the impact of the net loss[5] - Cash and cash equivalents decreased to $863,069 as of September 30, 2024, from $2,665,852 as of March 31, 2024, showing a decline in liquidity[5] Revenue Streams - The Group's principal revenue streams include advisory fees, brokerage commissions, due diligence service fees, handling income, and introducing and referral income[63] - Revenue from advisory fees is recognized over time, while brokerage commissions are recognized at a point in time upon transaction completion[65] - The Group's revenue from contracts with customers recognized at a point in time totaled $690.398 million for the six months ended September 30, 2024, compared to $746.318 million in 2023, a decrease of about 7.5%[85] - The Group's revenue from contracts with customers recognized over time was $7.826 million for the six months ended September 30, 2024, down from $321.558 million in 2023, indicating a significant decline of approximately 97.6%[85] Operating Activities - Net cash used in operating activities was $(809,604) for the six months ended September 30, 2024, a significant decrease from net cash provided by operating activities of $203,660 in 2023[14] - The Group's total employee benefit plan costs for the six months ended September 30, 2024, were $17.171 million, an increase from $12.833 million in 2023, reflecting a rise of approximately 33.5%[96] Share-Based Compensation - The company incurred share-based compensation expenses of $835,967 during the six months ended September 30, 2024, reflecting its commitment to incentivizing employees[14] - Share-based compensation expenses for the six months ended September 30, 2024, amounted to $835,967, compared to $0 in 2023, indicating a significant increase due to new awards granted[97] Regulatory and Compliance - The company has no operations and primarily serves as a holding company for its subsidiaries, which are engaged in investment advisory services and securities brokerage[21] - The reorganization of the legal structure of the group was completed on April 3, 2023, establishing the company as the holding entity for its subsidiaries[23] - I Win Securities Limited maintained a regulatory capital of $1,193,207 as of September 30, 2024, exceeding the minimum requirement of $386,109 by 309%[190] - I Win Asset Management Limited reported a regulatory capital of $62,936, which is 489% above the minimum requirement of $12,870 as of September 30, 2024[190] Credit Risk and Allowances - The allowance for expected credit losses was recorded at $48,387 for the six months ended September 30, 2024, indicating the company's proactive approach to managing credit risk[14] - The allowance for expected credit losses as of September 30, 2024, was $56,354, significantly increased from $7,668 as of March 31, 2024[130] - The Group has adopted the current expected credit loss model under ASC 326, which resulted in earlier recognition of losses compared to the incurred loss approach[45] IPO and Capital Structure - The company completed its initial public offering on December 1, 2023, raising gross proceeds of $11,500,000 by issuing 2,500,000 ordinary shares at $4.00 per share[22] - The Company completed its IPO on December 1, 2023, issuing 2,500,000 ordinary shares at $4 per share, raising net proceeds of $10,133,680 after expenses[160] - The Company had a total of 15,625,000 ordinary shares issued and outstanding as of December 5, 2023, after the IPO and over-allotment[161] Legal and Administrative Matters - There were no material legal or administrative proceedings involving the company as of September 30, 2024[192] - No subsequent events occurred that would require recognition or disclosure in the financial statements after September 30, 2024[196]
Garden Stage(GSIW) - 2024 Q2 - Quarterly Report