Financial Performance - Revenues for the three months ended April 30, 2023, were $100,000, compared to $261,925 for the same period in 2022, indicating a decline of approximately 61.8%[13] - Net loss attributable to ATIF Holdings Limited for the three months ended April 30, 2023, was $(335,770), compared to a net income of $228,316 for the same period in 2022[13] - Total operating expenses for the three months ended April 30, 2023, were $(701,934), an increase from $(598,620) in the same period of 2022, reflecting a rise of approximately 17.2%[13] - The company reported a loss per share of $(0.03) for the three months ended April 30, 2023, compared to earnings per share of $0.02 for the same period in 2022[13] - The company had total other income of $274,263 for the three months ended April 30, 2023, compared to $597,456 for the same period in 2022, a decrease of approximately 54.1%[13] - For the nine months ended April 30, 2023, the company reported a net income of $362,696 compared to a net loss of $1,992,933 for the same period in 2022[21] Assets and Liabilities - Total current assets increased to $6,672,023, up from $5,992,460, representing a growth of approximately 11.3%[11] - Cash and cash equivalents stood at $467,586, compared to $1,750,137, showing a significant decrease of approximately 73.3%[11] - Total liabilities decreased to $3,383,237 from $3,784,348, a reduction of approximately 10.6%[11] - Total assets increased marginally to $8,167,585 from $8,136,955, reflecting a growth of approximately 0.4%[11] - The accumulated deficit as of April 30, 2023, was $(24,777,541), slightly improved from $(25,140,237) as of April 30, 2022[11] - Current liabilities stood at $2.6 million as of April 30, 2023, while the company expects to collect consulting service fees of $3.3 million over the next 12 months[29] Cash Flow and Financing - The company had cash of $467,586 as of April 30, 2023, down from $1,306,038 at the end of April 2022[21] - The company reported operating cash outflows of $1.4 million for the nine months ended April 30, 2023, compared to $0.3 million for the same period in 2022[28] - The management believes that the company will continue as a going concern for the next 12 months despite uncertainties in cash flow and customer payments[29] - The company intends to finance future working capital and capital expenditures from cash generated from operating activities and equity financings[30] Revenue Sources - Revenue from consulting services for the three months ended April 30, 2023, was $0.1 million, compared to $0.3 million for the same period in 2022, representing a decline of 66.67%[50] - Revenue from consulting services for the nine months ended April 30, 2023, was $2.3 million, an increase of 187.5% compared to $0.8 million for the same period in 2022[50] - For the three months ended April 30, 2023, one customer accounted for 100% of the Company's consolidated revenue, compared to 97% for the same period in 2022[62] - For the nine months ended April 30, 2023, four customers accounted for 28%, 28%, 26%, and 17% of the Company's consolidated revenue, while two customers accounted for 63% and 32% in the same period of 2022[62] Expenses and Depreciation - The company had a depreciation and amortization expense of $109,967 for the three months ended April 30, 2023[21] - Depreciation expense for the three months ended April 30, 2023, was $16,656, compared to $13,765 for the same period in 2022[72] - Amortization expense for the three months ended April 30, 2023, was $20,000, consistent with the same period in 2022[74] - Operating lease expenses for the three months ended April 30, 2023, were $121,655, compared to $101,580 for the same period in 2022[86] Legal Matters - On August 25, 2021, the United States District Court granted ATIF's motion to dismiss Boustead's first amended complaint, allowing Boustead to amend its claims for breach of contract only[116] - Boustead filed a second amended complaint on December 28, 2021, alleging only breach of contract and dropping all other claims[116] - On July 6, 2022, the Court denied ATIF's motion to dismiss the second amended complaint, and ATIF subsequently filed a motion to compel arbitration on August 3, 2022[117] - The Court has not yet ruled on ATIF's motion to compel arbitration or Boustead's request for a default judgment against LGC[117] - ATIF's management believes it is premature to assess the outcome of the ongoing Boustead litigation, which is currently in the pleadings stage[117]
ATIF (ATIF) - 2023 Q3 - Quarterly Report