Financial Performance - Total revenues for the three months ended January 31, 2025, were 200,000,asignificantincreasefrom25,000 in the same period of 2024, representing an increase of 700%[20] - The net loss for the six months ended January 31, 2025, was 2,270,531,comparedtoanetlossof1,033,101 for the same period in 2024, indicating a 120% increase in losses[20] - Loss from operations for the three months ended January 31, 2025, was 350,797,adecreasefrom547,516 in the same period of 2024, showing a reduction of 36%[20] - The company reported a loss per share of 0.16forthethreemonthsendedJanuary31,2025,comparedtoalosspershareof0.04 for the same period in 2024[20] - For the six months ended January 31, 2025, the Company reported a net loss of approximately 2.3million,comparedtoanetlossof1.0 million for the same period in 2024, indicating a 130% increase in losses year-over-year[33] - Net loss was approximately 1.9millionforthethreemonthsendedJanuary31,2025,anincreaseoflossofapproximately1.5 million from net loss of 0.4millionforthethreemonthsendedJanuary31,2024[126]−NetlossforthesixmonthsendedJanuary31,2025,wasapproximately2.3 million, an increase of loss of approximately 1.3millionfromnetlossof1.0 million for the six months ended January 31, 2024[136] Cash and Assets - Cash and cash equivalents increased to 5,269,690asofJanuary31,2025,upfrom1,249,376 as of July 31, 2024, reflecting a growth of 320%[18] - Total current assets rose to 8,640,046asofJanuary31,2025,comparedto2,898,748 as of July 31, 2024, marking an increase of 197%[18] - The total shareholders' equity increased to 7,869,118asofJanuary31,2025,from1,753,754 as of July 31, 2024, representing a growth of 348%[18] - As of January 31, 2025, the Company had cash of approximately 5.3millionandshort−terminvestmentsintradingsecuritiesofapproximately2.8 million, which could cover current liabilities of approximately 0.8million[35]−Cashattheendoftheperiodwasapproximately5.3 million, with current liabilities of approximately 0.8million,indicatingsufficientliquiditytocovercurrentobligations[140]ShareIssuance−Thecompanyissued3,820,000ordinarysharesduringtheperiod,raising4,774,895 in proceeds[23] - The Company issued and sold 3,820,000 ordinary shares at a price of 1.25pershareinJanuary2025,resultingingrossproceedsof4.8 million[34] - The company entered into a securities purchase agreement to sell 3,820,000 ordinary shares for gross proceeds of approximately 4.7million,withapurchasepriceof1.25 per share[79] Revenue Concentration and Services - For the three and six months ended January 31, 2025, one customer accounted for 100% of the Company's consolidated revenue, highlighting significant revenue concentration risk[60] - The Company plans to mitigate revenue concentration risks by transitioning its consulting services from PRC-based customers to more international customers[62] - The Company operates in one reporting segment, which is the consulting service business, as of January 31, 2025[57] - The company generated total revenue from consulting services of 0.2millionforthethreemonthsendedJanuary31,2025,comparedtoapproximately25,000 for the same period in 2024, indicating a significant increase[114] - For the six months ended January 31, 2025, total revenue from consulting services remained at approximately 0.2million,consistentwiththesameperiodin2024[114]LegalMatters−AsettlementagreementwithBousteadSecurities,LLCrequiresthecompanytopayatotalof1,000,000, with the first installment of 250,000dueuponexecutionoftheagreement[101]−ThecompanyiscurrentlyfacingalawsuitfromJ.P.MorganSecuritiesLLC,claiming5,064,160 in damages related to a stock transaction[102] - The company is currently involved in a lawsuit filed by J.P Morgan Securities LLC, claiming 5,064,160indamagesrelatedtoastocktransaction[164]−ThecompanyisintheprocessofevaluatingclaimsanddefensesrelatedtothelawsuitwithJ.PMorganSecuritiesLLC,whichhasledtomediationattempts[165]−Boustead′slawsuitclaimsdamagesof1,000,000, with payments structured in three installments: 250,000paidonSeptember24,2024,500,000 due by February 27, 2025, and the final 250,000payablebeforeDecember31,2025[163]Expenses−Sellingexpensesdecreasedby45,000, or 48%, from 93,000forthethreemonthsendedJanuary31,2024,to48,000 for the three months ended January 31, 2025[121] - General and administrative expenses increased by 23,281,or50.5 million for the three months ended January 31, 2024, to approximately 0.5millionforthethreemonthsendedJanuary31,2025[122]−SellingexpensesforthesixmonthsendedJanuary31,2025,were120,000, representing a decrease of 45,000,or27165,000 for the six months ended January 31, 2024[131] - Rent expenses for the three months ended January 31, 2025, were 3,000,significantlylowerthan120,692 for the same period in 2024[77] Investments and Fair Value - For the three months ended January 31, 2025, the Company recognized a loss of 1,286,722frominvestmentsintradingsecurities,comparedtoagainof80,670 for the same period in 2024[40] - For the six months ended January 31, 2025, the Company recognized a loss of 1,138,564frominvestmentsintradingsecurities,comparedtoalossof28,734 for the same period in 2024[40] - The company reported a decrease in fair value of investments of 1,286,722forthethreemonthsendedJanuary31,2025,comparedtoanincreaseof80,670 for the same period in 2024[74] - As of January 31, 2025, the fair value of 7,850,000 ordinary shares granted as a capital contribution was $2,570,090[73] Internal Controls and Compliance - The company has concluded that its disclosure controls and procedures were not effective as of January 31, 2025, due to insufficient qualified accounting personnel and lack of documented financial closing procedures[151] - The company is implementing steps to remediate the ineffectiveness of its disclosure controls, including hiring qualified accounting personnel and establishing an internal audit function[151] - There have been no changes in internal controls over financial reporting that materially affected the company during the three months ended January 31, 2025[152] - The company is not currently a party to any legal or arbitration proceeding that would materially affect its business, operating results, cash flows, or financial condition, except for the disclosed litigation[154] - The company has not identified any critical accounting policies and estimates that affect the preparation of its financial statements[149] - The company is not required to provide quantitative and qualitative disclosures about market risk as a smaller reporting company[150] Strategic Focus - The company has shifted its geographic focus from China to North America, emphasizing assistance to mid and small companies in becoming public on U.S. capital markets[112] - The company has established a new office in California and expanded its service models to include asset management and media services[111] - The company has provided consulting services to one customer primarily focused on going public in the U.S. through IPO, reverse merger, and acquisition[113] Tax and Accounting Standards - The company has implemented a 100% valuation allowance against its deferred tax assets due to uncertainty regarding their realization[90] - The company is actively monitoring the potential impact of recent U.S. tax reforms, with no material impact expected based on current analysis[88] - The company is evaluating the impact of recent accounting standards updates on its consolidated financial statements[69]
