Financial Performance - Revenues for the three months ended April 30, 2024, were $350,000, a significant increase from $200,000 in the same period of 2023, marking a 75% growth[14] - Net loss for the three months ended April 30, 2024, was $(807,588), compared to a net loss of $(335,770) for the same period in 2023, indicating a decline in profitability[14] - For the nine months ended April 30, 2024, the company reported a net loss of approximately $1.8 million compared to a net income of approximately $0.4 million for the same period in 2023[28] - The company reported a basic and diluted loss per share of $(0.08) for the three months ended April 30, 2024, compared to $(0.03) for the same period in 2023[14] Assets and Liabilities - Total current assets increased to $3,189,487 as of April 30, 2024, compared to $2,542,780 as of July 31, 2023, representing a growth of approximately 25.5%[12] - Total liabilities decreased to $228,860 as of April 30, 2024, from $2,229,217 as of July 31, 2023, reflecting a reduction of approximately 89.8%[12] - Cash and cash equivalents rose to $2,116,156 as of April 30, 2024, up from $606,022 as of July 31, 2023, showing an increase of about 249.5%[12] - As of April 30, 2024, the company had cash of approximately $2.1 million and current liabilities of approximately $0.2 million, indicating that current assets could cover current liabilities[29] Operating Expenses - Operating expenses for the three months ended April 30, 2024, totaled $(721,282), compared to $(701,934) for the same period in 2023, representing an increase of approximately 2.8%[14] - The company experienced operating cash outflows of $84,188 for the nine months ended April 30, 2024, compared to approximately $1.4 million for the same period in 2023[28] - The company reported a net cash used in operating activities of $84,188 for the nine months ended April 30, 2024, a significant improvement from $1,361,108 in the same period of 2023[20] Equity and Share Issuance - Total stockholders' equity increased to $3,104,589 as of April 30, 2024, from $1,539,353 as of July 31, 2023, reflecting a growth of approximately 102.5%[12] - The company issued 1,905,522 ordinary shares during the period to settle payroll payable, contributing to the increase in total shares outstanding[16] - The company issued 384,478 ordinary shares to settle accrued payroll expenses of $349,875, with a fair value of $0.91 per share on April 30, 2024[83] Tax and Legal Matters - For the nine months ended April 30, 2024, the Company did not incur income tax expenses, compared to $575,056 in income tax expenses for the same period in 2023[97] - The Company has established a 100% valuation allowance against deferred tax assets due to uncertainty in their realization[99] - The Company is involved in a legal proceeding with Boustead Securities, LLC, which alleges breach of contract and seeks compensation related to a transaction with LGC[105] - J.P Morgan Securities LLC has filed a lawsuit against the Company claiming $5,064,160 in damages related to a stock transaction[110] Customer Concentration - For the three months ended April 30, 2024, one customer accounted for 100% of the Company's consolidated revenue, while for the nine months, two customers accounted for 71% and 17% of the revenue, respectively[60] - The Company’s revenue is primarily generated from consulting services related to going public, with significant reliance on a few customers[61] Future Outlook and Risks - The company anticipates future performance will be subject to various risks and uncertainties, which may impact actual results compared to forward-looking statements[8] - The company anticipates needing to raise additional capital to fund its operations, indicating uncertainty about its ability to continue as a going concern[30]
ATIF (ATIF) - 2024 Q3 - Quarterly Report