Revenue and Profitability - Total revenue increased by $0.8 million, or 47%, from $1.7 million in fiscal year 2022 to $2.5 million in fiscal year 2023[196] - Revenue from related parties rose by $0.5 million, attributed to providing consulting services to more customers on behalf of related parties[203] - Gross profit for fiscal year 2023 was $2.45 million, a 143% increase from $1.01 million in fiscal year 2022[201] Expenses - Selling expenses decreased by $0.4 million, or 64%, from $0.6 million in fiscal year 2022 to $0.2 million in fiscal year 2023[204] - General and administrative expenses decreased by $0.4 million, or 15%, from $2.7 million in fiscal year 2022 to $2.2 million in fiscal year 2023[205] Loss and Provisions - The company provided a full provision of $2,654,767 against balances due from buyers of LGC, assessing it as remote to collect[206] - The company provided a full provision of $762,000 against accounts receivable due from a related party, Huaya, also deemed remote to collect[206] - Loss from operations improved to $(760,864) in fiscal year 2023 from $(2,213,580) in fiscal year 2022, a decrease of 66%[201] - Net loss for fiscal year 2023 was $(2,882,299), a 14% improvement compared to $(3,371,099) in fiscal year 2022[201] - For the year ended July 31, 2023, the company reported a net loss of $2.9 million, a decrease of $0.5 million from a net loss of $3.4 million in fiscal year 2022[212] Cash Flow and Investments - Net cash used in operating activities was $2.3 million for the year ended July 31, 2023, primarily due to a net loss of $2.9 million[220] - The company reported net cash provided by investing activities of $0.4 million for fiscal year 2023, compared to a net cash used of $1.6 million in fiscal year 2022[222] - Net cash provided by financing activities was $0.7 million in fiscal year 2023, sourced from borrowings from a related party[224] - The company recorded an investment gain of $0.2 million in trading securities for the year ended July 31, 2023, compared to a loss of $2.4 million in the previous year[207] Assets and Liabilities - As of July 31, 2023, the company had cash of $0.6 million and accounts receivable of $0.6 million due from a related party, with current liabilities totaling $1.5 million[215] Future Operations and Taxation - The company plans to expand operations to other Asian countries while continuing to focus on the North American market[194] - The company is subject to a federal tax rate of 21% and a state tax rate of 8.84% for its U.S. subsidiaries, with an income tax expense of $31,200 for the year ended July 31, 2023[211] - The company may need to raise cash flow from related parties to support future operations, indicating uncertainty about its ability to continue as a going concern[215] Dividends - The company has not declared or paid any cash dividends to shareholders and does not plan to do so from restricted net assets as of July 31, 2023[216]
ATIF (ATIF) - 2023 Q4 - Annual Report