Revenue Performance - Total revenues increased by $18,233 or 3%, from $521,241 in 2024 to $539,474 in 2025, primarily due to the restart of customized CRM system development services [464]. - Revenue from professional services accounted for $515,684 or 96% of total revenues in 2025, compared to $275,314 or 53% in 2024 [464]. - Revenue from customized CRM system development services increased by $285,188 or 100% from nil in 2024 to $285,188 in 2025 [465]. - Total revenue for the year ended September 30, 2025, was $539,474, a decrease of $374,737 or 42% from $895,978 in 2024 [482]. - Customer B accounted for 39% of net revenue in 2025, up from 26% in 2024, while total revenue from major customers increased to 85% in 2025 from 77% in 2024 [511]. Profitability and Loss - Gross profit for 2025 was $179,965, representing 33% of total revenues, compared to $341,593 or 66% in 2024 [463]. - Net loss for 2025 was $(9,646,142), a significant increase of 1,788% compared to $(1,280,661) in 2024 [463]. - The company reported a net loss of $9,646,142 for the year ended September 30, 2025, compared to a net loss of $1,280,661 in 2024 [480]. - Loss from investments was $2,736,514 in 2025, a significant increase from nil in 2024 [476]. Operating Expenses - Operating expenses totaled $(3,035,280) in 2025, an increase of 563% from $(1,730,409) in 2024 [463]. - Selling expenses increased by $36,311 or 38% to $130,792 in 2025, primarily due to a significant rise in advertising and promotion expenses [470]. - General and administrative expenses surged by $2,250,292 or 454% to $2,746,298 in 2025, mainly due to professional fees related to the IPO [472]. - Research and development expenses decreased by $981,732 or 86% to $158,190 in 2025, attributed to a reduction in labor-related costs [473]. Cash Flow and Financial Position - The company had approximately $9.9 million of unrestricted cash as of September 30, 2025, and will need to control operating costs to ensure sustainability [495]. - Net cash used in operating activities for the year ended September 30, 2025, was $3,913,752, compared to $728,066 for the year ended September 30, 2024, reflecting a net loss of $9,646,142 [498]. - Net cash used in investing activities was $3,028,941 for the year ended September 30, 2025, primarily due to the purchase of short-term investments totaling $3,800,000 [500]. - Net cash provided by financing activities increased to $16,790,704 for the year ended September 30, 2025, from $431,390 in 2024, driven by proceeds from the issuance of ordinary shares and follow-on offerings [502]. - The company reported a total net increase in cash and restricted cash of $9,893,604 for the year ended September 30, 2025, compared to a decrease of $356,029 in 2024 [497]. Legal and Tax Matters - The company is subject to a 25% enterprise income tax rate under PRC law for its subsidiaries in China [454]. - The company is involved in three separate legal cases as of September 30, 2025, with an accrued provision for ongoing litigation matters of $24,459 [519]. Other Financial Metrics - Cost of revenues for 2025 was $359,509, a decrease of $179,861 or 100% from $179,648 in 2024 [467]. - Other income fell by $134,263 or 100% to $539 in 2025, down from $134,802 in 2024 [474]. - As of September 30, 2025, the allowance for expected credit loss was nil, while it was $4,664 for September 30, 2024, and nil for September 30, 2023 [525]. - The valuation allowance for deferred tax assets as of September 30, 2025, 2024, and 2023 was $1.23 million, $1.17 million, and $3.00 million, respectively [526]. Inflation Impact - Inflation does not materially affect the company's business or results of operations [520]. Revenue Recognition - Customized CRM system development and cloud-based connectivity services are recognized as a single performance obligation, with revenue recognized over the contractual service period [524].
Youxin(YAAS) - 2025 Q4 - Annual Report