ATIF Holdings Reports Revenue Growth but Significant Net Loss for Three and Nine Months Ended April 30, 2025

ATIF Holdings Limited reported its financial results for the three and nine months ended April 30, 2025, revealing a revenue increase but a significant net loss. The company generated revenues of $250,000 for the three months ended April 30, 2025, a 25% increase from $200,000 in the same period last year. For the nine months, revenues rose to $450,000 from $350,000, marking a 29% increase. Despite this growth in revenue, ATIF recorded a net loss of approximately $1.6 million for the three months, up from a loss of $807,588 in the prior year, and a net loss of $3.9 million for the nine months, compared to a loss of $1.8 million in the same period last year.

The company's operating expenses decreased significantly, with total operating expenses for the three months ending April 30, 2025, at $439,012, down from $721,282 in the previous year, primarily due to a reduction in general and administrative expenses. Selling expenses were eliminated entirely in the latest quarter, compared to $86,000 in the same period last year. However, losses from investments in trading securities increased sharply, with a loss of $1.4 million reported for the three months ended April 30, 2025, compared to $309,521 in the prior year.

In terms of strategic developments, ATIF has been focusing on expanding its consulting services, particularly in assisting small and medium-sized enterprises (SMEs) in North America to go public. The company has shifted its geographic focus from China to North America and is also exploring opportunities in the Bitcoin sector, with plans to accumulate 1,000 BTC over the next five years. As of the report date, ATIF had purchased 0.19 BTC and is planning to establish mining operations in West Texas.

Operationally, ATIF's customer base has seen a decline, with consulting services provided to only one customer in the latest quarter, down from four customers in the same period last year. The company aims to mitigate risks associated with customer concentration, as a single customer accounted for 100% of its revenue in the latest quarter. As of April 30, 2025, ATIF had cash and cash equivalents of approximately $6.7 million, which, along with short-term investments, is expected to cover its current liabilities of about $0.3 million.

Looking ahead, ATIF's management has expressed concerns regarding its ability to continue as a going concern due to ongoing net losses and cash outflows. The company plans to focus on increasing revenue while controlling operating costs to generate positive cash flows. Additionally, ATIF has raised capital through the issuance of ordinary shares, generating approximately $6.9 million in financing activities during the nine months ended April 30, 2025. The company is actively seeking to enhance its operational capabilities and financial reporting processes to improve its overall performance.