Core Viewpoint - Ruanyun Edai Technology Inc. reported a decrease in total revenue for FY2025, but significant growth in software customization and content development, alongside improved profitability due to aggressive cost management and a strategic shift towards higher-margin AI-based services [3][4]. Financial Performance Highlights - Total revenues decreased by 27.0% to approximately $6.7 million in FY2025 from $9.2 million in FY2024 [4][6]. - Cost of revenues dropped by over 50% to approximately $2.9 million, leading to a gross profit increase of 29.1% to approximately $3.8 million, with gross margin improving to 56.7% [4][9]. - Net loss narrowed significantly to approximately $0.5 million in FY2025 from approximately $2.1 million in FY2024, reflecting a 75.3% improvement [4][15]. Revenue Breakdown - Revenue from SmartExam® solution increased by 15.5% to $0.7 million, while SmartHomework® solution revenue decreased by 29.8% to $6.0 million [7]. - Software customization and content development revenue surged by 3117% to approximately $2.4 million, and licensing revenue increased by 5492% to $153,666 [10][11]. - Digitalization services revenue decreased by 45.5% to approximately $2.9 million, primarily due to changes in Chinese education policies [10][11]. Cost Management and Operating Expenses - Operating expenses decreased by 15.4% to approximately $4.3 million, driven by reductions in selling and research and development expenses [12][14]. - Selling expenses decreased by 24.7% to approximately $1.8 million, while general and administrative expenses increased by 8.7% to approximately $1.6 million [13]. Recent Developments - Ruanyun announced partnerships to expand its AI-powered HanLink platform in Saudi Arabia and successfully launched the platform at a local school [17]. - The company completed its IPO on the Nasdaq, raising approximately $15 million, which supports its international business replication efforts [18]. Cash and Assets - As of March 31, 2025, cash balances were approximately $0.7 million, down from $1.1 million in the previous year [16]. - Total assets increased to approximately $5.87 million from $5.22 million, with current assets rising to approximately $4.28 million [21]. Liabilities and Equity - Current liabilities increased to approximately $6.38 million, primarily due to short-term bank loans rising to approximately $4.41 million [22]. - Total equity showed a decline, with accumulated deficit reaching approximately $15.63 million [22].