Financial Performance - Revenues for the three months ended October 31, 2023, were $125,000, a decrease of 58.33% compared to $300,000 in the same period of 2022[12] - Total operating expenses for the same period were $781,779, an increase of 37.5% from $567,896 in the prior year[12] - Loss from operations was $(656,779), compared to a loss of $(267,896) in the same quarter of 2022, reflecting a significant increase in operational losses[12] - Net loss for the period was $(625,463), compared to $(112,515) in the same period last year, indicating a substantial decline in profitability[12] - Basic and diluted loss per share for the three months ended October 31, 2023, was $(0.06), compared to $(0.01) for the same period in 2022[12] - For the three months ended October 31, 2023, the company reported a net loss of approximately $0.6 million, compared to a net loss of $0.1 million for the same period in 2022[26] Assets and Liabilities - Total current assets decreased to $1,953,257 as of October 31, 2023, from $2,542,780 as of July 31, 2023, representing a decline of approximately 23.2%[10] - Total liabilities decreased slightly to $2,126,704 as of October 31, 2023, from $2,229,217 as of July 31, 2023[10] - Cash and cash equivalents were reported at $361,225 as of October 31, 2023, down from $606,022 as of July 31, 2023[10] - The accumulated deficit increased to $(28,292,087) as of October 31, 2023, compared to $(27,666,624) as of July 31, 2023[10] - Total assets decreased to $3,040,594 as of October 31, 2023, from $3,768,570 as of July 31, 2023, indicating a decline of approximately 19.4%[10] Cash Flow - Operating cash inflows for the three months ended October 31, 2023, were approximately $0.2 million, down from $0.4 million in the prior year[26] - The net cash provided by operating activities for the period was $195,353, a decrease from $363,709 in the previous year[1] - The net cash used in investing activities was $440,150, compared to $242,837 in the prior year[1] - The company experienced a net decrease in cash of $244,797, contrasting with an increase of $120,872 in the previous year[1] Operational Insights - The company operates in one reporting segment, focusing solely on consulting services as of October 31, 2023[51] - For the three months ended October 31, 2023, the company generated revenues primarily from consulting services related to going public, with significant customer concentration where three customers accounted for 48%, 40%, and 12% of consolidated revenue[52] - The company has not shifted the nature of its operations despite the sale of its equity interest in ATIF GP for $50,000[22] Expenses and Provisions - Rent expense for the three months ended October 31, 2023, was $125,679, slightly increasing from $120,692 in the same period of 2022[64] - The company recorded an expected credit loss allowance of $26,400 for the period[1] - The company provided a full provision of $762,000 against accounts receivable due from Huaya due to remote collection prospects[81] - Amortization expense for intangible assets remained constant at $20,000 for both the three months ended October 31, 2023, and 2022[60] Receivables and Payables - As of October 31, 2023, accounts receivable from Asia International Securities Exchange Co., Ltd. remained at $600,000, unchanged from July 31, 2023[80] - Other receivables from Huaya decreased to $20,539 as of October 31, 2023, down from $40,539 as of July 31, 2023[80] - Other payables to Asia International Securities Exchange Co., Ltd. decreased slightly to $712,258 as of October 31, 2023, from $729,968 as of July 31, 2023[82] Taxation and Valuation - The company did not incur income tax expenses for the three months ended October 31, 2023, and 2022, due to net operating losses[86] - Management believes that the realization of deferred tax assets appears uncertain, leading to a 100% valuation allowance against these assets[88]
ATIF (ATIF) - 2024 Q1 - Quarterly Report