AIS Holdings Reports Decreased Current Assets, Increased Shareholders' Deficit, and Net Loss in Latest Quarter

As of September 30, 2024, AIS Holdings Group, Inc. reported total current assets of $1,193,000, a decrease from $1,265,000 as of March 31, 2024. The company's total shareholders' deficit increased to $(139,922,000) from $(100,969,000) during the same period.

For the three months ended September 30, 2024, AIS Holdings recorded total operating expenses of $9,822,000, a reduction from $11,757,000 in the same quarter of 2023. However, the net loss from continuing operations for this period was $(13,847,000), slightly higher than the $(13,783,000) loss reported in the prior year. For the six-month period ending September 30, 2024, the net loss escalated to $(40,918,000), significantly higher than the $(27,826,000) loss for the same period in 2023. The total comprehensive loss for the three months ended September 30, 2024, was $(38,329,000), compared to $(18,828,000) in the previous year.

Cash and cash equivalents at the end of the reporting period were $1,002,000, down from $2,842,000 at the end of the same period in 2023. The company reported a cumulative net operating loss carry forward of approximately $23,166,000, which will begin to expire in 2043. Additionally, as of September 30, 2024, AIS Holdings had $141,115,000 due to related party Takehiro Abe, with no repayments made during the period.

The company expressed concerns regarding its ability to continue as a going concern due to ongoing losses, negative cash flows, and a net capital deficiency. As of the same date, AIS Holdings had no off-balance sheet arrangements that materially affect its financial condition. The company prepares its unaudited interim financial statements in accordance with GAAP, relying on estimates and judgments based on historical experience and current trends.

An evaluation of disclosure controls and procedures revealed material weaknesses, including the absence of a functioning audit committee and inadequate segregation of duties. Management indicated that these weaknesses did not impact financial results but could lead to material misstatements in future periods. No significant changes to internal controls over financial reporting occurred during the last fiscal quarter. The company reported no legal proceedings against it and is unaware of any contemplated proceedings. There have been no unregistered sales of equity securities in the past two fiscal years, and there are no defaults upon senior securities.