Antiaging Quantum Living Inc., formerly known as Achison Inc., has released its 2023 Form 10-K report, detailing significant changes in its business operations, financial performance, and strategic initiatives. The New York-based company, which transitioned from trading securities and commodities to focusing on online advertising, has expanded its operations into the Asia-Pacific and Chinese markets.
Financial Highlights
- Revenue: $7,499,000, a significant decrease of 44.86% compared to the previous year, primarily due to changes in business operations.
- Gross Profit: $6,728,000, reflecting a decline in line with the revenue decrease.
- Loss from Operations: $(413,017), a substantial increase in operating loss due to higher operating expenses, including increased professional fees and charitable donations.
- Net Loss: $(412,971), driven by higher operating expenses and reduced revenue.
- Earnings (Loss) per share: $(0.01), reflecting the overall financial performance and increased net loss for the year.
Business Highlights
- Company Overview: Antiaging Quantum Living Inc. focuses on online advertising through its website, www.dazhong368.com, targeting the Greater New York area.
- Change in Control: In 2023, Barry Wan acquired control of the company and appointed new leadership, including himself as CEO. The company was renamed Antiaging Quantum Living Inc.
- Operational Expansion: In December 2023, the company expanded into the Asia-Pacific and Chinese markets by establishing subsidiaries such as AAQL Inc. in the British Virgin Islands and AAQL HK Limited in Hong Kong.
- Service Offerings: The company provides website development, maintenance, and online business advertisement services, targeting small to medium-sized companies and professional individuals.
- Competitive Landscape: The online advertising industry is highly competitive. The company aims to compete by offering reliable, high-quality services cost-effectively.
- Future Outlook: Plans include improving the online platform and exploring new business opportunities to enhance profitability, with a focus on global expansion, particularly in the Asia-Pacific region.
Strategic Initiatives
- Global Expansion: The company has established multiple business entities in the Asia-Pacific and Chinese markets, including AAQL Inc. in the British Virgin Islands and AAQL HK Limited in Hong Kong.
- Capital Management: No cash dividends have been declared since inception. Future earnings are planned to be retained for business use. A shareholder loan of $83,300 was forgiven by the former President and recorded as additional paid-in capital. Advances totaling $613,843 were received from the current President for working capital purposes.
- Future Outlook: Management plans to improve business profitability and generate sufficient cash flow from operations to address substantial doubt about the company's ability to continue as a going concern. Additional working capital funds may be obtained from the majority shareholder if necessary.
Challenges and Risks
- Supply Chain Dependency: Reliance on a single supplier for key raw materials presents a significant risk of supply chain disruptions.
- Increased Operating Expenses: Higher rental expenses, employee wages, benefits, and professional fees have led to increased operating expenses and a net loss increase.
- Going Concern Doubts: Negative financial trends such as cash outflow from operating activities, operating losses, and an accumulated deficit raise substantial doubt about the company's ability to continue as a going concern. Management's strategy includes improving business profitability and executing the business plan to meet operating needs.
SEC Filing: