Tianci International Inc(CIIT) - 2023 Q3 - Quarterly Report

Revenue Performance - Revenues for the three months ended April 30, 2023, increased to $144,013, a 100$0 in the same period of 2022, primarily due to hardware product sales and software maintenance services [87]. - For the nine months ended April 30, 2023, revenues reached $367,113, a 4076$8,792 in the same period of 2022, attributed to hardware product sales and new service offerings [97]. Cost and Expenses - Cost of revenues surged by approximately 2788% to $260,700 for the three months ended April 30, 2023, compared to$9,026 in the same period of 2022, driven by increased sales [90]. - Total cost of revenues for the nine months ended April 30, 2023, increased by approximately 1828% to $448,055 from$23,245 in the same period of 2022 [100]. - Gross loss for the nine months ended April 30, 2023, was $80,942, an increase of 460$14,453 in the same period of 2022, indicating rising costs outpacing revenue growth [104]. - Operating expenses for the nine months ended April 30, 2023, were $238,876, significantly up from$43,598 in the same period of 2022, largely due to stock compensation [106]. Net Loss and Financial Position - Net loss attributable to Tianci for the three months ended April 30, 2023, was $296,194, reflecting a 1514$18,351 in the same period of 2022 [87]. - The company reported an operating loss of $322,037 for the nine months ended April 30, 2023, which included$211,208 in various noncash items [115]. - As of April 30, 2023, the company's working capital was $(252,291), with current assets of$434,707 and current liabilities of $686,998 [108]. Cash Flow - Net cash provided by operating activities for the nine months ended April 30, 2023, was$314,294, compared to a cash used of $(58,051) in the same period of 2022 [114]. - Net cash provided in operating activities for the nine months ended April 30, 2023, was primarily due to a decrease in accounts receivable by$622,659, offset by a decrease in accounts payable of $301,283 [115]. - Net cash used in financing activities for the nine months ended April 30, 2023, was$72,462, mainly due to repayment of a working capital advance of $341,884 [118]. Future Plans and Market Conditions - The company plans to enter the glass sales industry in 2023, which may require significant capital expenditure [112]. - The impact of the COVID-19 pandemic on the company's business has been very limited, despite ongoing global disruptions [121]. Accounting and Risk Disclosures - The company does not believe that any recently issued accounting standards would have a material effect on its financial statements [127]. - There were no quantitative and qualitative disclosures about market risk applicable to the company [128]. - As of April 30, 2023, no allowance for doubtful accounts was deemed necessary, as accounts receivable were current and creditors appeared credit-worthy [126]. - The company has no off-balance sheet arrangements that would affect liquidity or capital resources [120].