Financial Performance - Revenues for the three months ended January 31, 2024, were 25,000,asignificantdecreasefrom1,900,000 for the same period in 2023, indicating a decline of approximately 98.7%[22] - Net loss for the six months ended January 31, 2024, was 1,033,101,comparedtoanetincomeof698,466 for the same period in 2023, marking a shift of approximately 248.5%[26] - For the three months ended January 31, 2024, the Company reported a net loss of approximately 0.4million,comparedtoanetincomeofapproximately0.8 million for the same period in 2023, indicating a significant decline in performance[31] - For the six months ended January 31, 2024, the Company reported a net loss of approximately 1.0million,whileforthesameperiodin2023,itreportedanetincomeofapproximately0.7 million[31] - Total revenue decreased by approximately 1.9million,from1.9 million for the three months ended January 31, 2023, to 25,000forthethreemonthsendedJanuary31,2024,representinga992.0 million, from 2.2millionforthesameperiodin2023toapproximately150,000, a 93% decrease[126][128] - Net loss for the three months ended January 31, 2024, was approximately 0.4million,achangeofapproximately1.2 million from net income of 0.8millionforthesameperiodin2023,representinga1501.0 million, a change of 1.7millionfromnetincomeofapproximately0.7 million for the same period in 2023, representing a 248% decrease[137] Assets and Liabilities - Total current assets decreased from 2,542,780asofJuly31,2023,to1,619,991 as of January 31, 2024, representing a decline of approximately 36.3%[19] - Total liabilities decreased from 2,229,217asofJuly31,2023,to1,982,467 as of January 31, 2024, reflecting a reduction of about 11.1%[20] - Total assets decreased from 3,768,570asofJuly31,2023,to2,488,719 as of January 31, 2024, a decline of approximately 34%[20] - Cash and cash equivalents dropped from 606,022asofJuly31,2023,to139,152 as of January 31, 2024, a decrease of approximately 77%[19] - Current liabilities amounted to approximately 1.5million,withapproximately0.7 million due to related parties, raising concerns about the Company's liquidity[32] - The accumulated deficit increased from (27,666,624)asofJuly31,2023,to(28,699,725) as of January 31, 2024, representing a deterioration of approximately 3.7%[19] Operating Expenses - Operating expenses for the three months ended January 31, 2024, totaled 572,516,slightlyhigherthan566,112 for the same period in 2023, indicating a marginal increase of about 1%[22] - Selling expenses for the three months ended January 31, 2024, increased by 45,000,or9493,000 from 48,000forthesameperiodin2023[117]−SellingexpensesforthesixmonthsendedJanuary31,2024,increasedby112,000, or 211%, to 165,000from53,000 for the same period in 2023[129] - General and administrative expenses for the three months ended January 31, 2024, were approximately 479,516,adecreaseof38,596, or 7%, from 518,112forthesameperiodin2023[119]−GeneralandadministrativeexpensesforthesixmonthsendedJanuary31,2024,increasedfromapproximately1.1 million in 2023 to approximately 1.2millionin2024,primarilyduetoincreasedpayrollexpenses[131]CashFlow−TheCompanyreportedoperatingcashoutflowsof17,413 for the six months ended January 31, 2024, compared to approximately 0.8millionforthesameperiodin2023[31]−NetcashusedinoperatingactivitiesforthesixmonthsendedJanuary31,2024,was17,413, compared to 754,714forthesameperiodin2023,indicatingasignificantreductionincashoutflow[147][148]−TheCompanyexperiencedanetdecreaseincashof466,870 for the six months ended January 31, 2024, compared to a decrease of 920,750forthesameperiodin2023[147]RevenueRecognition−Revenueisprimarilygeneratedfromconsultingservicesforclientsintendingtogopublic,withservicescategorizedintothreephases[49][50][51]−RevenuefromPhaseIandPhaseIIconsultingservicesisrecognizedratablyovertheestimatedcompletionperiod,whilePhaseIIIrevenueisrecognizeduponcompletionofthetransaction[53]−AsofJanuary31,2024,onecustomeraccountedfor1005,064,160 related to a stock transaction[102] - The company has a pending legal proceeding with Boustead Securities, LLC, which alleges breach of contract and is currently in arbitration[100] - The Company is involved in ongoing legal proceedings, including a lawsuit filed by Boustead, which may have material adverse effects on its business and financial condition[160][170] Future Outlook - The Company anticipates needing to raise additional capital immediately to continue funding its operations, indicating substantial doubt about its ability to continue as a going concern[33] - The Company’s ability to continue as a going concern is dependent on management's ability to successfully execute its business plan, which includes increasing revenue while controlling operating costs[143][144] - The company plans to expand operations to other Asian countries, including Malaysia, Vietnam, and Singapore, while continuing to focus on the North American market[108] Miscellaneous - The Company adopted ASU No. 2016-13 for credit loss measurement, which had no impact on the allowance for credit losses for accounts receivable upon adoption[41] - The financial statements have been prepared on a going concern basis, reflecting the Company's ability to realize assets and satisfy liabilities in the ordinary course of business[34] - The Company has established several subsidiaries, including ATIF Business Consulting LLC and ATIF Business Management LLC, to expand its business advisory and financial consulting services[27] - The Company has not declared or paid any cash dividends to shareholders and does not plan to do so from its restricted net assets as of January 31, 2024[146] - The Company is currently evaluating steps to remediate the ineffectiveness of its disclosure controls and procedures, including hiring qualified accounting personnel and implementing training programs[157] - The certifications attached to the quarterly report comply with the Sarbanes-Oxley Act of 2002[177] - The report was signed by the Chief Executive Officer and Chief Financial Officer on March 18, 2024[181][182]
