ZBAI earnings analysis
What we found in ZBAI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
ATIF reported Q3 revenue of $250,000 (up from $200,000 a year ago) and EPS of $(0.09). Liquidity materially improved with cash of $6,681,402 and trading securities of $1,134,482 as of April 30, 2025 following equity raises and a $3,611,000 capital contribution in trading securities. However, net loss widened to $1,589,040 in the quarter (nine-month loss $3,859,571) driven largely by a $1,400,028 (quarter) / $2,538,592 (nine months) loss on trading securities and operating cash outflows of $2,134,768 for the nine months. Management reiterates going-concern uncertainty and the need to increase revenue and/or obtain outside financing to achieve positive operating cash flows.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue increased YoY
- Quarterly revenue rose to $250,000 vs $200,000 in the three months ended April 30, 2024 (increase of $50,000).
- Strong cash balance after financings
- Cash and cash equivalents totaled $6,681,402 as of April 30, 2025, up from $1,249,376 at the beginning of the period (net increase in cash $5,432,026).
- Material capital contributions and financings
- Company recorded a $3,611,000 capital contribution in the form of trading securities and raised gross proceeds of $4.8 million (Jan 2025) and $2.5 million (Feb 2025, recorded net proceeds ~$2.1M).
- Liquid short-term investments
- Investments in trading securities were $1,134,482 as of April 30, 2025, up from $424,148 on July 31, 2024.
- Shareholders’ equity improved
- Total shareholders’ equity increased to $8,409,902 as of April 30, 2025 from $1,753,754 as of July 31, 2024.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Net loss widened significantly
- Net loss for the three months ended April 30, 2025 was $1,589,040 vs $807,588 in the prior-year quarter; nine-month net loss was $3,859,571 vs $1,840,689 prior year.
- Large losses from trading securities
- Loss from investment in trading securities was $1,400,028 in the quarter and $2,538,592 for the nine months ended April 30, 2025.
- Operating cash outflow
- Net cash used in operating activities was $(2,134,768) for the nine months ended April 30, 2025 versus $(84,188) in the prior-year period.
- Going concern uncertainty remains
- MD&A states factors 'indicate the existence of an uncertainty that raises substantial doubt about the Company’s ability to continue as a going concern' while reporting a nine-month net loss of $3,859,571 and operating cash outflows of $2,134,768.
- Revenue scale still small
- Quarterly revenue was $250,000 and nine-month revenue was $450,000, leaving the business still limited in scale relative to ongoing losses and investment volatility.
- Concentration of receivables / related-party balances
- Accounts receivable of $250,000 and due from related parties of $600,000 (as of April 30, 2025) indicate material balances with a small number of counterparties.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.09
- Operating margin
- -75.6048%
What they said about what is next.
The 10-Q contains forward-looking language but no explicit numeric guidance. MD&A states the Company 'needs additional capital' and that continuation depends on increasing revenue while controlling operating costs and obtaining outside financing; outlook is therefore deferred to future financing and operational results.
The filing reads worse than the one before it.
What came before.
- 10-Q · December 19, 2024
- ATIF reported zero revenue for the quarter (down from $125,000 a year earlier) and a net loss of $367,074 ($0.03 per share), an improvement from a $625,463 loss ($0.06 per share) in the prior-year quarter. Liquidity was…
- 10-K · November 13, 2023
- ATIF Holdings reports revenue growth to $2,450,000 for the year ended July 31, 2023, driven by new U.S. and Mexico clients after divesting its China/HK subsidiaries. Management executed a strategic shift (completed…
- 10-Q · December 15, 2022
- ATIF Holdings Limited reported a significant decline in revenue and increased operational expenses, leading to a smaller net loss compared to the previous year. The company generated $300,000 in revenue, down from…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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