Financial Performance - Total revenues for the three months ended January 31, 2023, were $1,900,000, a significant increase from $7,680 in the same period of 2022[22]. - Net income attributable to ATIF Holdings Limited for the three months ended January 31, 2023, was $810,981, compared to a net loss of $1,082,653 in the same period of 2022[22]. - The company reported an operating income of $1,333,888 for the three months ended January 31, 2023, compared to an operating loss of $819,420 in the same period of 2022[22]. - For the six months ended January 31, 2023, the company reported a net income of $698,466 compared to a net loss of $2,253,694 for the same period in 2022, indicating a significant turnaround in performance[30]. - Total revenue from consulting services increased to $1.9 million for the three months ended January 31, 2023, compared to $7,680 for the same period in 2022, representing a growth of 24,640%[128]. - For the six months ended January 31, 2023, total revenue reached $2.2 million, a significant increase of 320% from $524,155 in the same period of 2022[140]. Assets and Liabilities - Total current assets increased to $6,793,260 as of January 31, 2023, up from $5,992,460 as of July 31, 2022[21]. - Total liabilities decreased to $3,314,748 as of January 31, 2023, from $3,784,348 as of July 31, 2022[21]. - The company’s total assets increased to $8,434,866 as of January 31, 2023, from $8,136,955 as of July 31, 2022[21]. - As of January 31, 2023, the company had cash of $829,387 and current liabilities of $2.5 million, highlighting liquidity challenges[32]. - The company had cash of $0.8 million as of January 31, 2023, while current liabilities amounted to $2.5 million[163]. Expenses - Total operating expenses for the three months ended January 31, 2023, were $566,112, down from $827,100 in the same period of 2022[22]. - General and administrative expenses decreased by 37% to $581,112 for the three months ended January 31, 2023, from $827,100 in the same period of 2022[131]. - Rent expense for the six months ended January 31, 2023, was $250,861, compared to $271,240 for the same period in 2022[87]. - The company had a depreciation and amortization expense of $73,311 for the six months ended January 31, 2023, down from $102,751 in the prior year[25]. Customer Concentration - As of January 31, 2023, three customers accounted for 34%, 34%, and 32% of the Company's consolidated revenue, highlighting a concentration risk[68]. - For the six months ended January 31, 2023, four customers accounted for 30%, 30%, 27%, and 14% of the Company's consolidated revenue, showing a shift in customer dependency compared to the previous year[69]. Internal Controls and Compliance - The company identified four "material weaknesses" in its internal control over financial reporting, including insufficient personnel with appropriate accounting knowledge and experience[178]. - The company is currently evaluating steps to improve its disclosure controls and procedures due to identified deficiencies[177]. - The company plans to hire additional qualified accounting personnel and implement continuous U.S. GAAP training programs to strengthen its financial reporting function[184]. - The company is in the process of hiring experts to improve and test its internal control and establish standard internal audit procedures by July 2023[180]. - The company has not established an internal control department and lacks adequate policies and procedures for its internal audit function[178]. Future Plans and Strategies - The company plans to finance future working capital requirements through cash generated from operating activities and equity financings[33]. - The company plans to transition its consulting services from PRC-based customers to more international customers to mitigate revenue concentration risks[71]. - The company aims to become an international financial consulting company with clients and offices throughout Asia[115]. - The company plans to expand operations to other Asian countries, including Malaysia, Vietnam, and Singapore, while maintaining a focus on the North American market[121]. Legal Matters - The company is currently involved in litigation with Boustead Securities, LLC regarding a breach of contract related to an acquisition transaction[188]. - The litigation with Boustead is in the pleadings stage, and the company believes it is premature to predict the outcome[193].