ATIF(ZBAI) - 2023 Q4 - Annual Report

Revenue Growth - Total revenue increased by $0.8 million, or 47$1.7 million in fiscal year 2022 to $2.5 million in fiscal year 2023[202]. - Revenue from third parties was$1,150,000 for the year ended July 31, 2023, representing a 27% increase from $905,310 in 2022[206]. - Revenue from related parties increased by$538,000, or 71%, from $762,000 in 2022 to$1,300,000 in 2023[206]. Profitability - Gross profit rose to $2,450,000 in 2023, a 143$1,007,310 in 2022[206]. - The company reported a net loss of $2,882,299 for the year ended July 31, 2023, a decrease of$488,800, or 14%, from the previous year[206]. - The company reported a net loss of $2.9 million for the year ended July 31, 2023, a decrease from a net loss of$3.4 million in the previous fiscal year[224]. Expenses Management - Selling expenses decreased by $362,291, or 64$569,529 in 2022 to $207,238 in 2023[210]. - General and administrative expenses decreased by$409,735, or 15%, from $2,651,361 in 2022 to$2,241,626 in 2023[212]. Cash Flow and Liquidity - Operating cash outflows from continuing operations were approximately $2.3 million for the year ended July 31, 2023, compared to$0.1 million in the prior year[226]. - As of July 31, 2023, the company had cash of $0.6 million and accounts receivable of$0.6 million, with current liabilities totaling $1.5 million[227]. - Net cash used in operating activities was$2.3 million for the fiscal year ended July 31, 2023, primarily due to the net loss and adjustments for provisions against receivables[233]. - Net cash provided by investing activities was $0.4 million in fiscal year 2023, mainly from the disposal of investments and collection of loans[235]. - Net cash provided by financing activities was$0.7 million in fiscal year 2023, sourced from borrowings from a related party[237]. Future Outlook and Plans - The company plans to expand operations to other Asian countries, including Malaysia, Vietnam, and Singapore, while continuing to focus on the North American market[200]. - The company plans to support future operations primarily through cash generated from operations and cash on hand, but may need to raise additional funds[225]. Going Concern and Dividends - The company reported a working capital deficit and indicated uncertainty regarding its ability to continue as a going concern[228]. - The company has not declared or paid any cash dividends to shareholders and does not plan to do so in the near future[230]. Taxation - The federal tax rate for the company's U.S. subsidiaries is 21%, with a state tax rate of 8.84%[223]. Other Achievements - The company successfully assisted three Chinese enterprises to be quoted on the U.S. OTC markets since its inception[200]. Provisions - The company provided a full provision of $2,654,767 against balances due from buyers of LGC for the year ended July 31, 2023[214].