Financial Performance - Revenues for the three months ended January 31, 2025, were 25,000 for the same period in 2024, marking an increase of 700%[20] - For the six months ended January 31, 2025, total revenue from consulting services remained at approximately 0.2 million, or 700%, from 200,000 for the three months ended January 31, 2025[112] - For the six months ended January 31, 2025, total revenue increased by 0.15 million for the six months ended January 31, 2024, to approximately 0.16 for the three months ended January 31, 2025, compared to a loss per share of 2.3 million, an increase of loss of approximately 1.0 million for the six months ended January 31, 2024[128] - Net loss was approximately 1.5 million from net loss of 8,640,046 as of January 31, 2025, compared to 770,928 as of January 31, 2025, from 5,269,690 as of January 31, 2025, compared to 5.3 million and short-term investments of approximately 0.8 million[34] - Cash at the end of the period was approximately 0.8 million, indicating sufficient liquidity to cover current obligations[132] Shareholder Activity - The company issued 3,820,000 ordinary shares, increasing total shares outstanding to 15,737,452 as of January 31, 2025, up from 11,917,452 as of July 31, 2024[23] - The company issued 3,820,000 ordinary shares at a price of 4.8 million[33] - In January 2025, the company issued and sold 3,820,000 ordinary shares at a price of 4.8 million[131] - The Company has 100,000,000,000 authorized ordinary shares, with 15,737,452 shares issued and outstanding as of January 15, 2025[75] Operating Expenses - Operating expenses for the six months ended January 31, 2025, totaled 1,354,295 for the same period in 2024, a decrease of 21%[20] - Selling expenses decreased by 93,000 for the three months ended January 31, 2024, to 23,281, or 5%, from approximately 0.5 million for the three months ended January 31, 2025[115] Cash Flow - The company experienced a net cash used in operating activities of 17,412 for the same period in 2024[25] - Net cash used in operating activities was approximately 2.3 million[135] Legal Matters - A settlement agreement with Boustead Securities, LLC was reached, requiring the Company to pay a total of 250,000 due upon execution of the agreement[95] - The Company is currently facing a lawsuit from J.P. Morgan Securities LLC, claiming 5,064,160 in damages related to a stock transaction[155] - The company has agreed to mediate the dispute with J.P Morgan Securities LLC before proceeding to litigation, with mediation held on May 6, 2024[156] - The company is in the process of evaluating claims and defenses related to the lawsuit from J.P. Morgan Securities LLC[97] - The company acquired a 51.2% equity interest in Leaping Group Co., Ltd. (LGC) in April 2020, which led to a lawsuit from Boustead alleging breach of contract related to the acquisition[148] - Boustead's lawsuit seeks to recover an amount equal to a percentage of the value of the transaction conducted with LGC, claiming it was deprived of compensation due to the acquisition occurring during a lockup period[149] - The company is currently preparing for arbitration regarding the claims made by Boustead, with a hearing scheduled for February 29, 2024[153] Risk Management - The company plans to mitigate risks by transitioning its consulting services from PRC-based customers to more international customers[60] - For the three and six months ended January 31, 2025, one customer accounted for 100% of the company's consolidated revenue, highlighting a concentration risk[58] - The Company has a 100% valuation allowance against deferred tax assets due to uncertainty in realization[86] - The Company is evaluating the impact of ASU 2023-09 on its consolidated financial statements, which relates to income tax disclosures[62] - The Company is evaluating the impact of ASU 2023-06 on its consolidated financial statements, which includes amendments to various disclosure requirements[63] Internal Controls - 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[143] - The company is in the process of evaluating steps to remediate the ineffectiveness of its disclosure controls, including hiring qualified accounting personnel and implementing training programs[143] - The company has not reported any changes in internal controls over financial reporting that materially affected its operations during the three months ended January 31, 2025[144] - The company has not disclosed any critical accounting policies and estimates that affect the preparation of its financial statements[141] Business Strategy - 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[105] - The Company has established a new office in California and launched additional service models including asset management and media services[104] - The Company plans to expand operations to other Asian countries, such as Malaysia, Vietnam, and Singapore, while continuing to focus on the North American market[105] - The Company has successfully assisted nine Chinese enterprises to be quoted on the U.S. OTC markets since its inception[105]
ATIF(ZBAI) - 2025 Q2 - Quarterly Report