Financial Performance - Total revenue for the six months ended September 30, 2025, was $293,929, a decrease of 83.2% compared to $1,750,043 in the same period of 2024[4] - Gross loss for the period was $42,614, compared to a gross profit of $1,250,951 in the prior year[4] - Net loss attributable to shareholders for the six months ended September 30, 2025, was $1,457,886, compared to a net income of $442,832 in 2024[4] - Revenue from the top five customers accounted for 53.3% of total revenue for the six months ended September 30, 2025, down from 61.4% in the same period of 2024[103] - The company recognized total revenues of $293,929 for the six months ended September 30, 2025, a decrease from $1,750,043 in the same period of 2024[133] - The effective tax rate for the six months ended September 30, 2025 was nil, compared to 18.01% for the same period in 2024[126] - For the six months ended September 30, 2025, the company reported a net loss of $434,912[159] Cash and Liquidity - Cash and cash equivalents increased to $11,476,898 as of September 30, 2025, from $2,066,102 at the end of March 2025[2] - The total cash at the end of the period was $9,246,488, reflecting a net increase in cash of $9,240,065[159] - The net cash provided by financing activities was $10,152,686, primarily from net proceeds of $9,778,479 from the IPO[159] - The net cash used in operating activities was $35,698[159] - The company incurred a net cash outflow of $876,923 from investing activities, including $326,923 for the subscription of new shares of a subsidiary and $550,000 for investment in equity security[159] Assets and Liabilities - Total assets rose to $12,105,398 as of September 30, 2025, compared to $4,681,560 as of March 31, 2025[2] - Total liabilities decreased slightly to $2,544,600 as of September 30, 2025, from $2,574,684 as of March 31, 2025[2] - Total shareholders' equity increased to $9,270,123 as of September 30, 2025, from $2,106,870 at the end of March 2025[2] - As of September 30, 2025, accounts receivable, net totaled $125,441, a decrease from $1,187,465 as of March 31, 2025, reflecting a significant reduction in gross accounts receivable from $1,288,000[95] - The allowance for expected credit loss for accounts receivable decreased to $88,969 as of September 30, 2025, from $100,535 as of March 31, 2025[96] - The total current assets as of September 30, 2025, amount to $9,425,822, compared to $262,269 as of March 31, 2025[156] Initial Public Offering (IPO) - The company raised $9,778,479 from its initial public offering during the period[10] - The Company completed its IPO on June 30, 2025, raising gross proceeds of $9,375,000 from the sale of 1,875,000 Class A ordinary shares at $5.00 per share[17] - Following the IPO, the underwriter exercised the Over-allotment option, resulting in total gross proceeds of $10,781,250[18] - The net proceeds from the IPO and Over-allotment option amounted to $8,621,139 after deducting underwriting discounts and expenses[19] - The IPO and the Over-allotment option generated total gross proceeds of $10,781,250, with net proceeds of $8,621,139 recorded as an increase to additional paid-in capital[121] Contractual Obligations and Revenue Recognition - The Company follows ASC 606 for revenue recognition, ensuring revenues reflect the transfer of goods or services to customers[41] - The Company recognizes revenue based on individual contract terms and applies a practical expedient for costs incurred to obtain contracts with customers, with no material incremental costs expected to benefit beyond one year[42] - The average initial deposit for IPO sponsorship services is 42% of the total contract price, with fees charged based on milestone achievements[45] - Contract assets related to general advisory services and compliance advisory services totaled $10,174 and $197,165 at September 30, 2025, respectively[75] - Contract liabilities for IPO sponsorship services, general advisory services, independent financial advisory services, and compliance advisory services amounted to $451,907 and $200,911 at September 30, 2025[76] - The Company recognizes revenue from compliance advisory services on a monthly basis as performance obligations are satisfied throughout the contract terms[74] - The average initial deposit for independent financial advisory services is 21% of the total contract price, with revenue recognized at the completion of services[65] - The Company accounts for all general advisory services as a single performance obligation due to their interdependent nature[58] - The Company uses the most likely amount method to estimate variable consideration for milestone payments, which are subject to significant uncertainty[53] Investments and Impairments - The company recognized an unrealized loss of approximately $370,666 on its investment in ALT5 Sigma Corporation, with a fair value of $179,334 as of September 30, 2025, down from an original cost of $550,000[99] - The investment in equity security is classified within Level 1 of the fair value hierarchy due to its active trading in the market[98] - The company had no significant influence over the investee, ALT5 Sigma Corporation, despite holding 66,667 shares[90] Employee and Operational Expenses - Employee benefit expenses paid to senior management totaled $504,731 for the six months ended September 30, 2025, compared to $145,513 for the same period in 2024[150] - Retirement benefits charged to the statements of operations for the six months ended September 30, 2025, amounted to $19,848, compared to $18,203 for the same period in 2024[79] - The company incurred total operating lease expenses of $95,754 for the six months ended September 30, 2025, compared to $82,934 in the same period of 2024[111] Regulatory and Compliance - The Company changed its name from Hero Intelligence Group Limited to Grande Group Limited effective May 22, 2024[13] - The Company did not recognize any impairment loss against its ROU asset for the six months ended September 30, 2025[32] - The company plans to adopt ASU 2023-09 for the year ending March 31, 2026, which will enhance income tax disclosures[91] - The company has no uncertain tax positions as of September 30, 2025, indicating a stable tax compliance status[129] - The company maintained capital levels significantly above the minimum liquid capital requirements set by the Securities and Futures Commission of Hong Kong[136] - The company's wholly-owned subsidiary, Grande Capital, is subject to minimum paid-up capital and liquid capital requirements imposed by the Hong Kong Securities and Futures Ordinance[162] Miscellaneous - The Company has prepared its financial statements in accordance with the same accounting policies as the consolidated financial statements[160] - As of September 30, 2025, there were no material contingencies or significant provisions of long-term obligations disclosed[163] - The maximum potential loss of accounts receivable and contract assets for the six months ended September 30, 2025, is $135,615[136] - Cash balances in bank accounts in Hong Kong are insured under the Deposit Protection Scheme for a maximum amount of $102,564 (HK$800,000)[137] - The loss allowance for other current assets as of September 30, 2025, and March 31, 2025, is $166[138] - A 1% increase or decrease in interest rates would have affected the Company's post-tax loss/profit for the six months ended September 30, 2025, by approximately $114,769[142] - The Company has entered into a Sale and Purchase Agreement to acquire 100% of Proplus Company Limited for HK$78,000,000 (approximately $10,000,000)[153]
Grande Group Ltd-A(GRAN) - 2026 Q2 - Quarterly Report