UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~October~~January 31, ~~2024~~2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to _____________

Commission File Number: 001-38876

ATIF HOLDINGS LIMITED

(Exact Name of Registrant as Specified in Its Charter)

British Virgin Islands		Not Applicable
(State of Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)
25391 Commercentre Dr., Ste 200, Lake Forest, CA		92630
420 Goddard, Irvine, CA		92618
(Address of Principal Executive Offices)		(ZIP Code)

308-888-8888

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol		Name of exchange on which registered
Ordinary Shares		ATIF		The Nasdaq Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ YES ☐ NO

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ YES ☐ NO

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) ☐ YES ☒ NO

Indicate the number of shares outstanding of each of the issuer’s classes of stock, as of the latest practicable date.

As of ~~December~~March 1913, ~~2024~~2025, there were 1117,~~917~~317,452 of the registrant’s ordinary shares issued and outstanding.

TABLE OF CONTENTS

	Page
PART I-FINANCIAL INFORMATION	1
Item 1. Financial Statements	1
Item 2. Management’s Discussion And Analysis Of Financial Condition And Results Of Operations	1817
Item 3. Quantitative and Qualitative Disclosures About Market Risk	2322
Item 4. Controls and Procedures	2322
PART II-OTHER INFORMATION	2423
Item 1. Legal Proceedings	2423
Item 1A. Risk Factors	2524
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	2524
Item 3. Defaults Upon Senior Securities	2524
Item 4. Mine Safety Disclosures	2524
Item 5. Other Information	2524
Item 6. Exhibits	2625
SIGNATURES	2726

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains certain forward-looking statements. The statements herein which are not historical reflect our current expectations and projections about the Company’s future results, performance, liquidity, financial condition, prospects and opportunities and are based upon information currently available to us and our management and our interpretation of what we believe to be significant factors affecting our business, including many assumptions about future events. Such forward-looking statements include statements regarding, among other things:

●

our ability to produce, market and generate sales of our products and services;

●

our ability to develop and/or introduce new products and services;

●

our projected future sales, profitability and other financial metrics;

●

our future financing plans;

●

our anticipated needs for working capital;

●

the anticipated trends in our industry;

●

our ability to expand our sales and marketing capability;

●

acquisitions of other companies or assets that we might undertake in the future;

●

competition existing today or that will likely arise in the future; and

●

other factors discussed elsewhere herein.

Forward-looking statements, which involve assumptions and describe our future plans, strategies, and expectations, are generally identifiable by use of the words “may,” “should,” “will,” “plan,” “could,” “target,” “contemplate,” “predict,” “potential,” “continue,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “seek,” or “project” or the negative of these words or other variations on these or similar words. Actual results, performance, liquidity, financial condition and results of operations, prospects and opportunities could differ materially from those expressed in, or implied by, these forward-looking statements as a result of various risks, uncertainties and other factors, including the ability to raise sufficient capital to continue the Company’s operations. These statements may be found under Part I, Item 2-“Management’s Discussion And Analysis Of Financial Condition And Results Of Operations,” as well as elsewhere in this Quarterly Report on Form 10-Q generally. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors, including, without limitation, matters described in this Quarterly Report on Form 10-Q.

In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this Quarterly Report on Form 10-Q will in fact occur.

Potential investors should not place undue reliance on any forward-looking statements. Except as expressly required by the federal securities laws, there is no undertaking to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.

The forward-looking statements in this Quarterly Report on Form 10-Q represent our views as of the date of this Quarterly Report on Form 10-Q. Such statements are presented only as a guide about future possibilities and do not represent assured events, and we anticipate that subsequent events and developments will cause our views to change. You should, therefore, not rely on these forward-looking statements as representing our views as of any date after the date of this Quarterly Report on Form 10-Q.

This Quarterly Report on Form 10-Q also contains estimates and other statistical data prepared by independent parties and by us relating to market size and growth and other data about our industry. These estimates and data involve a number of assumptions and limitations, and potential investors are cautioned not to give undue weight to these estimates and data. We have not independently verified the statistical and other industry data generated by independent parties and contained in this Quarterly Report on Form 10-Q. In addition, projections, assumptions and estimates of our future performance and the future performance of the industries in which we operate are necessarily subject to a high degree of uncertainty and risk.

Potential investors should not make an investment decision based solely on our projections, estimates or expectations.

PART I.

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ATIF HOLDINGS LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS

	October 31, 2024			July 31, 2024
	Jan 31, 2025			Jul 31, 2024
	(unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	~~457~~5,~~764~~269,690		$	1,249,376
Accounts receivable – a related party		200,000			200,000
Accounts receivable - related parties		-			200,000
Deposits		~~3,000~~-			3,000
Investment in trading securities		4,174,290			424,148
Investments in securities		2,755,412			424,148
Due from a related party		900,000			900,000
Due from related parties		600,000			900,000
Prepaid expenses and other current assets		5014,~~224~~944			122,224
Total current assets		58,~~785~~640,~~278~~046			2,898,748
Property and equipment, net		~~53,765~~-			60,047
Right-of- use assets, net		45,475			53,793
Right-of-use lease assets, net		-			53,793
TOTAL ASSETS	$	5,884,518		$	3,012,588
Total Assets		8,640,046			3,012,588
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable, accrued expenses and other current liabilities	$	584,380		$	957,057
Accrued expenses and other current liabilities		500,943			957,057
Taxes payable		19,985			19,985
Operating lease liabilities, current		20,683			11,375
Lease liabilities, current		-			11,375
Total current liabilities		625,048			988,417
Current portion of long-term payables		250,000			-
Operating lease liabilities, noncurrent		11,790			20,417
Total current liabilities		770,928			988,417
Long-term payable		250,000			250,000
Lease liabilities, noncurrent		-			20,417
TOTAL LIABILITIES		886,838			1,258,834
Long-term payables		-			250,000
Total liabilities		770,928			1,258,834
Commitments
SHAREHOLDERS’ EQUITY
Equity
Ordinary shares, $0.001 par value, 100,000,000,000 shares authorized, 11,917,452 shares and 11,917,452 shares issued and outstanding as of October 31, 2024 and July 31, 2024, respectively		11,917			11,917
Ordinary shares, $0.001 par value, 100,000,000,000 shares authorized, 15,737,452 shares and 11,917,452 shares issued and outstanding as of January 31, 2025 and July 31, 2024, respectively		15,737			11,917
Additional paid-in capital		3640,~~210~~982,~~985~~060			32,599,985
Accumulated deficit		(3133,~~225~~128,~~222~~679	)		(30,858,148	)
Total Shareholders’ Equity		47,~~997~~869,~~680~~118			1,753,754
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	5,884,518		$	3,012,588
Total Liabilities and Shareholders’ Equity		8,640,046			3,012,588

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

ATIF HOLDINGS LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

	For the Three Months Ended October 31,
	For the three months ended January 31,						For the six months ended January 31,
	2024			2023
	2025			2024			2025			2024
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Revenues	$	-200,000		$	~~125~~25,000		$	200,000		$	150,000
Operating expenses:
Operating expenses
Selling expenses		72(48,000	)		72(93,000	)		(120,000	)		(165,000	)
General and administrative expenses		~~449~~(502,~~109~~797	)		~~709~~(479,~~779~~516	)		(951,906	)		(1,189,295	)
Total operating expenses		~~521~~(550,~~109~~797	)		~~781~~(572,~~779~~516	)		(1,071,906	)		(1,354,295	)
Loss from operations		(~~521~~350,~~109~~797	)		(~~656~~547,~~779~~516	)		(871,906	)		(1,204,295	)
Other income (expenses):
Other (expenses) income
Interest expenses, net		(18	)		-
Interest (expenses) income		3			23			(15	)		23
Other income, net		5,895			140,720
Other (expense) income		(265,941	)		59,185			(260,046	)		199,905
Gain (loss) from investment in trading securities		148,158			(109,404	)
Loss (gain) from investment in trading securities		(1,286,722	)		80,670			(1,138,564	)		(28,734	)
Total other income, net		154,035			31,316
Total (expenses) income		(1,552,660	)		139,878			(1,398,625	)		171,194
Loss before income taxes		(~~367~~1,~~074~~903,457	)		(~~625~~407,~~463~~638	)		(2,270,531	)		(1,033,101	)
Income tax provision		-			-			-			-
Net loss and comprehensive loss	$	(~~367~~1,~~074~~903,457	)	$	(~~625~~407,~~463~~638	)	$	(2,270,531	)	$	(1,033,101	)
Loss per share – basic and diluted	$	(0.0316	)	$	(0.0604	)	$	(0.19	)	$	(0.11	)
Weighted Average Shares Outstanding – Basic and diluted		1112,~~917~~145,~~452~~822			9,627,452			12,145,822			9,627,452

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

ATIF HOLDINGS LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE ~~THREE~~SIX MONTHS ENDED ~~OCTOBER~~JANUARY 31, ~~2024~~2025 AND ~~2023~~ 2024

	Ordinary Share				Additional Paid in		Accumulated
	Shares		Amount		Capital		deficit			Total
Balance at July 31, 2023		9,627,452	$	9,627	$	29,196,350	$	(27,666,624	)	$	1,539,353
Net loss		-		-		-		(625,463	)		(625,463	)
Balance at October 31, 2023 (unaudited)		9,627,452	$	9,627	$	29,196,350	$	(28,292,087	)	$	913,890
Balance at July 31, 2024		11,917,452	$	11,917	$	32,599,985	$	(30,858,148	)	$	1,753,754
Net loss		-		-		-		(367,074	)		(367,074	)
Capital contribution		-		-		3,611,000		-			3,611,000
Balance at October 31, 2024 (unaudited)		11,917,452	$	11,917	$	36,210,985	$	(31,225,222	)	$	4,997,680

For the three months ended January 31, 2025 and 2024

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

	Ordinary Share				Additional paid in		Accumulated
	Shares		Amount		capital		deficit			Total
Balance as at October 31, 2024 (unaudited)		11,917,452		11,917		36,210,985		(31,225,222	)		4,997,680
Net loss for the period		-		-		-		(1,903,457	)		(1,903,457	)
Issuance of ordinary shares		3,820,000		3,820		4,771,075		-			4,774,895

Balance as at January 31, 2025 (unaudited)		15,737,452		15,737		40,982,060		(33,128,679	)		7,869,118

Balance as at October 31, 2023 (unaudited)		9,627,452		9,627		29,196,350		(28,292,087	)		913,890
Net loss for the period		-		-		-		(407,638	)		(407,638	)

Balance as at January 31, 2024 (unaudited)		9,627,452		9,627		29,196,350		(28,699,725	)		506,252

3For the six months ended January 31, 2025 and 2024

ATIF HOLDINGS LIMITED

	Ordinary Share				Additional paid in		Accumulated
	Shares		Amount		capital		deficit			Total
Balance as at July 31, 2024		11,917,452		11,917		32,599,985		(30,858,148	)		1,753,754
Net loss for the period		-		-		-		(2,270,531	)		(2,270,531	)
Capital contribution		-		-		3,611,000		-			3,611,000
Issuance of ordinary shares		3,820,000		3,820		4,771,075		-			4,774,895

Balance as at January 31, 2025 (unaudited)		15,737,452		15,737		40,982,060		(33,128,679	)		7,869,118

Balance as at July 31, 2023		9,627,452		9,627		29,196,350		(27,666,624	)		1,539,353
Net loss for the period		-		-		-		(1,033,101	)		(1,033,101	)

Balance as at January 31, 2024 (unaudited)		9,627,452		9,627		29,196,350		(28,699,725	)		506,252

~~CONDENSED~~The accompanying ~~CONSOLIDATED~~notes ~~STATEMENTS~~are OFan ~~CASH~~integral ~~FLOWS~~part of these unaudited condensed consolidated financial statements.

	For the Three Months Ended October 31,
	2024			2023
	(unaudited)			(unaudited)
Cash flows from operating activities:
Net loss	$	(367,074	)		(625,463	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization		6,282			29,669
Amortization of right-of-use assets		7,926			113,116
Expected credit loss allowance		-			26,400
Gain (loss) from investment in trading securities		(148,158	)		109,403
Changes in operating assets and liabilities:
Accounts receivable		-			(30,000	)
Accounts receivable – a related party		-			600,000	)
Prepaid expenses and other current assets		72,000			57,030
Contract liabilities		-			(70,000	)
Accounts payable, accrued expenses and other current liabilities		(372,677	)		83,842
Lease liabilities		1,073			(98,644	)
Net cash (used in) provided by operating activities		(800,628	)		195,353
Cash flows from investing activities:
Purchase of property and equipment		-			(4,332	)
Investment in trading securities		-			(438,108	)
Proceeds from redemption of investment in trading securities		9,016			-
Loans made to a related party		-			(17,710	)
Collection of borrowings from a related party		-			20,000
Net cash provided by (used in) investing activities		9,016			(440,150	)
Net decrease in cash		(791,612	)		(244,797	)
Cash, beginning of period		1,249,376			606,022
Cash, end of period	$	457,764		$	361,225
Supplemental disclosure of cash flow information:
Cash paid for interest expenses	$	-		$	-
Cash paid for income tax	$	-		$	-
Supplemental disclosure of Non-cash financing activities
Capital contribution from a shareholder in the form of trading securities	$	3,611,000		$	-

~~The accompanying notes are an integral part of these~~ATIF ~~unaudited~~HOLDINGS ~~condensed consolidated financial statements.~~LIMITED

4CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

ATIF HOLDINGS LIMITED

	For the six months ended January 31,
	2025			2024
Cash flows from operating activities:

Net loss	$	(2,270,531	)		(1,033,101	)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		6,282			59,338
Amortization of right of use assets		9,000			223,285
Loss on disposal of property and equipment		53,765			-
Loss from early termination of an operating lease		13,000			7,600
Loss from investment in trading securities		1,138,564			28,734
Changes in operating assets and liabilities:
Accounts receivable		-			150,000
Accounts receivable - related parties		200,000			600,000
Deposits		3,000			(25,000	)
Prepaid expenses and other current assets		107,281			128,845
Deferred revenue		-			(70,000	)
Taxes payable		-			(6,915	)
Accrued expenses and other current liabilities		(456,114	)		134,679
Lease liabilities		-			(214,877	)
Net cash used in operating activities		(1,195,753	)		(17,412	)

Cash flows from investing activities:
Purchases of property and equipment		-			(5,086	)
Investment in short-term investments		141,172			(446,662	)
Loans made to a related party		-			(17,710	)
Collection of borrowings from a related party		300,000			20,000
Net cash provided by (used in) investing activities		441,172			(449,458	)

Cash Flows from Financing Activities:
Proceeds from issuance of ordinary shares		4,774,895			-
Net cash provided by financing activities		4,774,895			-

Effect of Exchange Rate Changes on Cash		-			-

Net increase (decrease) in Cash		4,020,314			(466,870	)
Cash, beginning of period		1,249,376			606,022
Cash, end of period	$	5,269,690			139,152

Supplemental disclosure of cash flow information:
Cash paid for interest expenses	$	-			-
Cash paid for income tax	$	-			6,915

Supplemental disclosure of Non-cash financing activities
Capital contribution from a shareholder in the form of trading securities	$	3,611,000			-

~~NOTES~~The accompanying TOnotes ~~UNAUDITED~~are ~~CONDENSED~~an ~~CONSOLIDATED~~integral ~~FINANCIAL STATEMENTS~~part of these unaudited condensed consolidated financial statements.

~~NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS~~4

ATIF ~~Holdings Limited (“ATIF” or the “Company”),~~ ~~formerly~~HOLDINGS known as Eternal Fairy International Limited and Asia Times Holdings Limited, was incorporated under the laws of the British Virgin Islands (“BVI”) on January 5, 2015, as a holding company to develop business opportunities in the People’s Republic of China (the “PRC” or “China”). The Company adopted its current name on March 7, 2019. The Company is primarily engaged in providing business advisory and financial consulting services to small and medium-sized enterprise customers.LIMITED

~~As of October 31, 2024, the Company’s unaudited~~NOTES ~~condensed~~TO ~~consolidated~~UNAUDITED ~~financial~~CONDENSED ~~statements~~CONSOLIDATED ~~reflect~~FINANCIAL ~~the operating results of the following entities:~~STATEMENTS

Name of Entity	Date of Incorporation	Place of Incorporation	% of Ownership	Principal Activities
Parent company:
ATIF Holdings Limited (“ATIF”)	January 5, 2015	British Virgin Islands	Parent	Investment holding
Wholly owned subsidiaries of ATIF
ATIF Inc. (“ATIF USA”)	October 26, 2020	USA	100%	Consultancy and information technology support
ATIF Investment LLC (“ATIF Investment”)	April 25, 2022	BVI	100%	Consultancy and information technology support
ATIF BD	December 22, 2021	USA	100% owned by ATIF USA	Consultancy and information technology support
ATIF BC	October 6, 2022	USA	100% owned by ATIF USA	Consultancy and information technology support
ATIF BM	October 6, 2022	USA	100% owned by ATIF USA	Consultancy and information technology support

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

ATIF Holdings Limited (“ATIF” or the “Company”), formerly known as Eternal Fairy International Limited and Asia Times Holdings Limited, was incorporated under the laws of the British Virgin Islands (“BVI”) on January 5, 2015, as a holding company to develop business opportunities in the People’s Republic of China (the “PRC” or “China”). The Company adopted its current name on March 7, 2019. The Company is primarily engaged in providing business advisory and financial consulting services to small and medium-sized enterprise customers.

~~ATIF~~As of ~~HOLDINGS~~January ~~LIMITED~~31, 2025 the Company’s unaudited condensed consolidated financial statements reflect the operating results of the following entities:

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Name of Entity	Date of Incorporation	Place of Incorporation	% of Ownership	Principal Activities
Parent company:
ATIF Holdings Limited (“ATIF”)	January 5, 2015	British Virgin Islands	Parent	Investment holding
Wholly owned subsidiaries of ATIF
ATIF Inc. (“ATIF USA”)	October 26, 2020	USA	100%	Consultancy and information technology support
ATIF Investment LLC (“ATIF Investment”)	April 25, 2022	BVI	100%	Consultancy and information technology support
ATIF BD	December 22, 2021	USA	100% owned by ATIF USA	Consultancy and information technology support
ATIF BC	October 6, 2022	USA	100% owned by ATIF USA	Consultancy and information technology support
ATIF BM	October 6, 2022	USA	100% owned by ATIF USA	Consultancy and information technology support

NOTE 2 – ~~LIQUIDITY~~SUMMARY ~~and~~OF ~~GOING~~SIGNIFICANT ~~CONCERN~~ACCOUNTING POLICIES

~~For the three months ended October 31, 2024 and~~Basis ~~2023, the Company reported a net loss~~ of ~~approximately~~Presentation ~~$0.4 million~~ and ~~$0.6~~Principles ~~million, respectively, and operating cash outflows approximately $0.8 million and operating cash inflows~~ of approximately $0.2 million. In assessing the Company’s ability to continue as a going concern, the Company monitors and analyzes its cash and its ability to generate sufficient cash flow in the future to support its operating and capital expenditure commitments. Because of a history of net losses from operations, cash out from operating activities, and the requirement of additional capital to fund our current operating plan at October 31, 2024, these factors indicate the existence of an uncertainty that raises substantial doubt about the Company’s ability to continue as a going concern.Consolidation

AsThe interim ofunaudited ~~October~~condensed ~~31,~~consolidated ~~2024,~~financial ~~the~~statements ~~Company~~are ~~had~~prepared ~~cash~~and ofpresented ~~approximately $0.5 million, short-term investments~~ in ~~trading~~accordance ~~securities~~with ofaccounting ~~approximately~~principles ~~$4.2 million, due from a related party of $0.9 million and accounts~~generally ~~receivables~~accepted ofin ~~$0.2 million due from a related party, which were highly liquid. On~~ the ~~other~~United ~~hand,~~States ~~the Company had current liabilities of approximately $0~~(“U.~~6 million~~S. ~~The Company’s cash and short-term investments in trading securities could well cover the current liabilities~~GAAP”). The Company’s ability to continue as a going concern is dependent on management’s ability to successfully execute its business plan, which includes increasing revenue while controlling operating cost and expenses to generate positive operating cash flows and obtain financing from outside sources.

The unaudited ~~accompanying~~condensed consolidated balance sheets as of January 31, 2025 and for the unaudited condensed consolidated statement of ~~financial~~operations ~~statements~~ and comprehensive loss for the three and six months ended January 31, 2025 and 2024 have been prepared onwithout aaudit, ~~going~~pursuant to ~~concern~~the ~~basis,~~rules ~~which~~and ~~contemplates~~regulations of the ~~realization~~SEC ofand ~~assets~~pursuant to Regulation S-X. Certain information and ~~satisfaction~~footnote ofdisclosures, which are normally ~~liabilities~~included in ~~the~~annual ~~ordinary~~financial ~~course~~statements ofprepared ~~business~~in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The unaudited condensed consolidated financial statements doshould ~~not~~be ~~include~~read ~~any~~in ~~adjustments~~conjunction ~~relating~~with to the ~~recoverability~~ audited financial statements and ~~classification~~the notes ofthereto, ~~recorded~~included ~~asset~~in ~~amounts~~the orForm 10-K for the ~~amounts~~fiscal ~~and~~year ~~classification~~ended ofJuly ~~liabilities~~31, ~~that~~2024, ~~might~~which ~~result~~was ~~from~~filed with the ~~outcome~~SEC ofon ~~the uncertainties~~November ~~described~~13, ~~above~~2024.

~~NOTE~~In the 3opinion –of ~~SUMMARY~~the OFmanagement, ~~SIGNIFICANT~~the ~~ACCOUNTING~~accompanying condensed consolidated financial statements reflect all normal recurring adjustments, ~~POLICIES~~which are necessary for a fair presentation of financial results for the interim periods presented. The Company believes that the disclosures are adequate to make the information presented not misleading. The accompanying condensed consolidated financial statements have been prepared using the same accounting policies as used in the preparation of the Company’s consolidated financial statements for the year ended July 31, 2024. The results of operations for the three and six months ended January 31, 2025 and 2024 are not necessarily indicative of the results for the full years.

~~Basis~~The unaudited condensed consolidated financial statements of ~~Presentation~~the ~~and~~Company ~~Principles~~include the accounts of ~~Consolidation~~the Company and its subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation.

~~The interim unaudited condensed consolidated financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).~~5

~~The unaudited condensed consolidated balance sheets~~ATIF asHOLDINGS of October 31, 2024 and for the unaudited condensed consolidated statement of operations and comprehensive loss for the three months ended October 31, 2024 and 2023 have been prepared without audit, pursuant to the rules and regulations of the SEC and pursuant to Regulation S-X. Certain information and footnote disclosures, which are normally included in annual financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and the notes thereto, included in the Form 10-K for the fiscal year ended July 31, 2024, which was filed with the SEC on November 13, 2024.LIMITED

~~In the opinion of the management, the accompanying~~NOTES ~~condensed~~TO ~~consolidated~~UNAUDITED ~~financial~~CONDENSED ~~statements~~CONSOLIDATED ~~reflect~~FINANCIAL all normal recurring adjustments, which are necessary for a fair presentation of financial results for the interim periods presented. The Company believes that the disclosures are adequate to make the information presented not misleading. The accompanying condensed consolidated financial statements have been prepared using the same accounting policies as used in the preparation of the Company’s consolidated financial statements for the year ended July 31, 2024. The results of operations for the three months ended October 31, 2024 and 2023 are not necessarily indicative of the results for the full years.STATEMENTS

~~The unaudited condensed consolidated financial statements~~NOTE of2 ~~the~~– ~~Company~~SUMMARY ~~include~~OF ~~the~~SIGNIFICANT ~~accounts~~ACCOUNTING ofPOLICIES ~~the Company and its subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation.~~(continued)

6Liquidity and going concern

~~ATIF~~For the ~~HOLDINGS~~six ~~LIMITED~~months ended January 31, 2025 and 2024, the Company reported a net loss of approximately $2.3 million and $1.0 million, respectively, and operating cash outflows approximately $1.2 million and approximately $0.02 million. In assessing the Company’s ability to continue as a going concern, the Company monitors and analyzes its cash and its ability to generate sufficient cash flow in the future to support its operating and capital expenditure commitments. Because of a history of net losses from operations, cash out from operating activities, and the requirement of additional capital to fund our current operating plan at January 31, 2025, these factors indicate the existence of an uncertainty that raises substantial doubt about the Company’s ability to continue as a going concern.

~~NOTES~~In January TO2025, ~~UNAUDITED~~the ~~CONDENSED~~Company ~~CONSOLIDATED~~issued ~~FINANCIAL~~and sold 3,820,000 ordinary shares to certain non-affiliated institutional investors at a price of US$1.25 ~~STATEMENTS~~per share for gross proceeds of US$4.8 million. The Company recorded net proceeds of approximately $4.8 million.

~~NOTE~~As of January 31, 2025, the Company had cash of approximately $5.3 –million, ~~SUMMARY~~short-term OFinvestments ~~SIGNIFICANT~~in ~~ACCOUNTING~~trading securities of approximately ~~POLICIES~~$2.8 ~~(continued)~~million and due from a related party of $0.6 million, which were highly liquid. On the other hand, the Company had current liabilities of approximately $0.8 million. The Company’s cash and short-term investments in trading securities could well cover the current liabilities. The Company’s ability to continue as a going concern is dependent on management’s ability to successfully execute its business plan, which includes increasing revenue while controlling operating cost and expenses to generate positive operating cash flows and obtain financing from outside sources.

~~Use~~The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of ~~Estimates~~assets and satisfaction of liabilities in the ordinary course of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described above.

~~In preparing the condensed consolidated financial~~Use ~~statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts~~ of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the condensed consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of accounts receivable, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets, revenue recognition, provision necessary for contingent liabilities and realization of deferred tax assets. Actual results could differ from those estimates. Estimates

~~Accounts~~In preparing ~~Receivable~~the condensed consolidated financial statements in conformity with U.S. GAAP, ~~net~~management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the condensed consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of accounts receivable, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets, revenue recognition, provision necessary for contingent liabilities and realization of deferred tax assets. Actual results could differ from those estimates.

~~On August 1, 2023, the Company adopted Accounting~~Accounts ~~Standards Update (“ASU”) No. 2016-13~~Receivable, ~~Financial~~ Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), using the modified retrospective transition method. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. Upon adoption, the Company changed the impairment model to utilize a forward-looking current expected credit losses (CECL) model in place of the incurred loss methodology for financial instruments measured at amortized cost and receivables resulting from the application of ASC 606, including contract assets. The adoption of the guidance had no impact on the allowance for credit losses for accounts receivable.net

~~After~~On August ~~the~~1, ~~adoption of ASU 2016-13~~2023, ~~The Company maintains an allowance for credit losses and records~~ the ~~allowance~~Company ~~for~~adopted ~~credit~~Accounting ~~losses~~Standards asUpdate an(“ASU”) ~~offset~~No. to2016-13, Financial ~~accounts~~Instruments-Credit ~~receivable and~~Losses ~~the~~(Topic ~~estimated~~326): ~~credit~~Measurement ~~losses~~of ~~charged~~Credit toLosses ~~the~~on ~~allowance~~Financial ~~is classified as~~ Instruments (“~~General~~ASU ~~and administrative expenses~~2016-13”), inusing the ~~condensed~~ ~~consolidated~~modified ~~statements~~retrospective transition ~~of operations and comprehensive loss~~method. ~~The~~ASU ~~Company uses loss~~2016-~~rate~~13 ~~methods~~replaces tothe ~~estimate~~existing ~~allowance~~incurred ~~for credit~~ loss. ~~The~~impairment ~~Company~~model ~~assesses~~with ~~collectability by reviewing accounts receivable on~~ an ~~individual~~expected ~~basis~~loss ~~because~~methodology, ~~the~~which ~~Company~~will ~~had~~result ~~limited~~in ~~customers~~more ~~and~~timely ~~each~~recognition of ~~them~~credit ~~has difference characteristics, primarily based on business line and geographical area~~losses. ~~In determining~~Upon ~~the amount of the allowance for credit losses~~adoption, the Company ~~multiplied~~changed the ~~loss~~impairment ~~rate~~model ~~with the amortized cost of accounts receivable. The loss rate refers~~ to ~~the~~utilize ~~corporate~~a ~~default~~forward-looking ~~rate published by credit rating companies, which considers~~ current ~~economic~~expected ~~conditions, reasonable and supportable forecasts of future economic conditions. Delinquent account balances are written-off against the allowance for~~ credit losses ~~after~~(CECL) ~~management~~model ~~has~~in ~~determined~~place ~~that~~of the ~~likelihood~~incurred ofloss ~~collection~~methodology isfor ~~not probable.~~financial ~~For~~instruments ~~the~~measured ~~three~~at ~~months~~amortized ~~ended~~cost ~~October~~and receivables ~~31,~~resulting ~~2023,~~from the ~~Company~~application ~~provided~~of ~~allowance~~ASC ~~for~~606, ~~credit~~including ~~losses~~contract ~~of $26,400~~assets. As ofThe ~~October~~adoption ~~31,~~of ~~2024,~~ the ~~accounts~~guidance ~~receivable~~had ~~was~~no ~~solely~~impact ~~from~~on ~~a related party, which committed to repay~~ the ~~outstanding balance in December 2024. The Company did not provide~~ allowance for credit losses for ~~the~~accounts ~~three months ended October 31, 2024~~receivable.

~~Investment~~After the adoption of ASU 2016-13, The Company maintains an allowance for credit losses and records the allowance for credit losses as an offset to accounts receivable and the estimated credit losses charged to the allowance is classified as “General and administrative expenses” in ~~Trading~~the ~~Securities~~condensed consolidated statements of operations and comprehensive loss. The Company uses loss-rate methods to estimate allowance for credit loss. The Company assesses collectability by reviewing accounts receivable on an individual basis because the Company had limited customers and each of them has difference characteristics, primarily based on business line and geographical area. In determining the amount of the allowance for credit losses, the Company multiplied the loss rate with the amortized cost of accounts receivable. The loss rate refers to the corporate default rate published by credit rating companies, which considers current economic conditions, reasonable and supportable forecasts of future economic conditions. Delinquent account balances are written-off against the allowance for credit losses after management has determined that the likelihood of collection is not probable.

Equity securities not accounted for using the equity method are carried at fair value with changes in fair value recorded in the condensed consolidated statements of operations and comprehensive income (loss), according to ASC 321 “Investments — Equity Securities”. During the three months ended October 31, 2024 and 2023, the Company purchased certain publicly-listed equity securities through various open market transactions and accounted for such investments as “investment in trading securities” and subsequently measure the investments at fair value. In addition, during the three months ended October 31, 2024, the Company was also granted ordinary shares of a listed company as capital contribution from a shareholder. The Company initially accounted for the share as “investment in trading securities” at fair value by reference to the prevailing market price on shares grant date, and subsequently measure the share awards at fair value. The Company recognized a gain of $148,158 and a loss of $109,404 from investments in trading securities for the three months ended October 31, 2024 and 2023.6

7ATIF HOLDINGS LIMITED

~~ATIF~~NOTES TO ~~HOLDINGS~~UNAUDITED ~~LIMITED~~CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~NOTES~~NOTE 2 TO– ~~UNAUDITED~~SUMMARY ~~CONDENSED~~OF ~~CONSOLIDATED~~SIGNIFICANT ~~FINANCIAL STATEMENTS~~ACCOUNTING POLICIES (continued)

~~NOTE~~Investment in 3Trading –Securities ~~SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)~~

~~Fair~~Equity securities ~~Value~~not accounted for using the equity method are carried at fair value with changes in fair value recorded in the condensed consolidated statements of ~~Financial~~operations ~~Instruments~~and comprehensive income (loss), according to ASC 321 “Investments — Equity Securities”. During the three and six months ended January 31, 2025 and 2024, the Company purchased certain publicly-listed equity securities through various open market transactions and accounted for such investments as “investment in trading securities” and subsequently measure the investments at fair value. In addition, during the six months ended January 31, 2025, the Company was also granted ordinary shares of a listed company as capital contribution from a shareholder. The Company initially accounted for the share as “investment in trading securities” at fair value by reference to the prevailing market price on shares grant date, and subsequently measure the share awards at fair value. For the three months ended January 31, 2025 and 2024, the Company recognized a loss of $1,286,722 and a gain of $80,670 from investments in trading securities, respectively. For the six months ended January 31, 2025 and 2024, the Company recognized a loss of $1,138,564 and $28,734 from investments in trading securities, respectively.

~~ASC 825-10 requires certain disclosures regarding the fair value of financial instruments.~~ Fair ~~value is defined as the price that would be received to sell an asset or paid to transfer~~ aValue liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of ~~observable~~Financial ~~inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:~~Instruments

●ASC 825-10 ~~Level~~requires 1certain –disclosures ~~inputs~~regarding to the ~~valuation~~fair ~~methodology~~value ~~are~~of ~~quoted~~financial ~~prices~~instruments. ~~(unadjusted)~~Fair ~~for~~value ~~identical~~is ~~assets~~defined oras ~~liabilities~~the inprice ~~active~~that ~~markets.~~would be ●received ~~Level~~to 2sell –an ~~inputs~~asset toor ~~the~~paid ~~valuation~~to ~~methodology~~transfer ~~include~~a ~~quoted~~liability ~~prices~~in ~~for~~an ~~similar~~orderly ~~assets~~transaction ~~and~~between ~~liabilities~~market inparticipants ~~active~~at ~~markets,~~the ~~quoted~~measurement date. ~~market~~A ~~prices~~three-level ~~for~~fair ~~identical~~value orhierarchy ~~similar~~prioritizes ~~assets~~the ininputs ~~markets~~used ~~that~~to ~~are~~measure ~~not~~fair ~~active,~~value. ~~inputs~~The ~~other~~hierarchy ~~than~~requires ~~quoted~~entities ~~prices~~to ~~that~~maximize the ~~are~~use of observable ~~and~~ inputs ~~derived~~and ~~from~~minimize orthe ~~corroborated~~use byof ~~observable~~unobservable ~~market data~~inputs. ●The ~~Level~~three 3levels –of inputs used to ~~the~~measure ~~valuation~~fair ~~methodology~~value are ~~unobservable.~~as follows:

~~Fair~~● ~~value~~Level of1 ~~investment~~– ininputs ~~trading~~to ~~securities~~the ~~are~~valuation ~~based~~methodology onare quoted prices in(unadjusted) ~~active~~for ~~markets.~~identical ~~The~~assets ~~carrying~~or ~~amounts~~liabilities ofin ~~the~~active ~~Company’s~~markets. ~~other~~● ~~financial~~Level ~~instruments~~2 ~~including~~– ~~cash~~inputs ~~and~~to ~~cash~~the ~~equivalents, accounts~~valuation ~~receivable~~methodology ~~due~~include ~~from~~quoted aprices ~~related~~for ~~party,~~similar ~~deposits,~~assets ~~due from related parties, accounts payable,~~ and ~~accrued expenses and other current~~ liabilities ~~approximate~~in ~~their~~active ~~fair~~markets, ~~values~~quoted ~~because~~market ofprices ~~the~~for ~~short-term~~identical ~~nature~~or ofsimilar ~~these~~ assets ~~and~~in ~~liabilities. For~~markets ~~lease~~that ~~liabilities~~are ~~and~~not ~~long-term payable~~active, ~~fair~~inputs ~~value~~other ~~approximates~~than ~~their~~quoted ~~carrying~~prices ~~value~~that atare ~~the~~observable ~~year-end~~and asinputs ~~the~~derived ~~interest~~from ~~rates~~or ~~used~~corroborated ~~to discount~~by ~~the~~observable ~~host contracts approximate~~ market ~~rates~~data. ~~For~~● ~~the~~Level ~~three~~3 ~~months~~– ~~ended~~inputs ~~October~~to ~~31,~~the ~~2024~~valuation ~~and~~methodology ~~2023, there~~ are ~~no transfers between different levels of inputs used to measure fair value~~unobservable.

~~Revenue~~Fair value ~~Recognition~~of investment in trading securities are based on quoted prices in active markets. The carrying amounts of the Company’s other financial instruments including cash and cash equivalents, accounts receivable due from a related party, deposits, due from related parties, accounts payable, and accrued expenses and other current liabilities approximate their fair values because of the short-term nature of these assets and liabilities. For lease liabilities and long-term payable, fair value approximates their carrying value at the year-end as the interest rates used to discount the host contracts approximate market rates. For the three and six months ended January 31, 2025 and 2024, there are no transfers between different levels of inputs used to measure fair value.

~~The Company recognizes revenue in accordance with ASC 606~~ Revenue ~~from Contracts with Customers (“ASC 606”).~~ Recognition

ToThe Company ~~determine~~recognizes revenue ~~recognition~~in ~~for~~accordance ~~contracts~~ with ~~customers,~~ ~~the~~ASC ~~Company~~606 ~~performs~~Revenue ~~the~~from ~~following~~Contracts ~~five steps: (i) identify the contract~~ with ~~the~~Customers ~~customer,~~ (~~ii) identify~~“ASC ~~the performance obligations in the contract, (iii~~606”) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

~~The~~To determine revenue recognition for contracts with customers, the Company ~~recognizes~~performs ~~revenue~~the ~~when~~following itfive ~~transfers~~steps: ~~its~~(i) identify the contract ~~goods~~with ~~and~~the ~~services~~customer, to(ii) identify ~~customers~~the inperformance anobligations ~~amount~~in ~~that~~the ~~reflects~~contract, (iii) determine the transaction price, including variable consideration to ~~which~~ the ~~Company~~extent ~~expects~~that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to bethe ~~entitled~~respective performance obligations in ~~such~~the ~~exchange~~contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

~~For~~The Company ~~the~~recognizes ~~three~~revenue ~~months~~when ~~ended~~it ~~October~~transfers ~~31,~~its ~~2023,~~goods ~~the~~and ~~Company primarily generated revenues from consulting~~ services to customers ~~who~~in ~~would~~an ~~like~~amount tothat goreflects ~~public. For~~ the ~~three~~consideration ~~months~~to ~~ended October 31, 2024, the~~which the Company ~~did~~expects ~~not~~to ~~generate~~be ~~revenues.~~entitled Asin ofsuch ~~October 31, 2024, amount of $400,000 was contracted but not yet recognized as revenues~~exchange.

~~The~~For the ~~Company~~three ~~provides~~and ~~various~~six ~~consulting~~months ~~services~~ended ~~to its~~January ~~members~~31, ~~especially~~2025 toand ~~those~~2024, ~~who have~~ the ~~intention~~Company toprimarily begenerated ~~publicly~~revenues ~~listed~~from inconsulting ~~the~~services ~~stock~~to ~~exchanges in the United States and other countries.~~customers ~~The~~who ~~Company~~would ~~categorizes~~like ~~its~~to ~~consulting~~go ~~services into three Phases:~~public.

~~Phase~~The Company Iprovides various consulting services ~~primarily~~to ~~include~~its ~~due diligence review~~members, ~~market~~especially ~~research~~to ~~and~~those ~~feasibility~~who ~~study,~~have ~~business~~the ~~plan~~intention ~~drafting,~~to ~~accounting~~be ~~record~~publicly ~~review,~~listed ~~and~~in ~~business analysis and recommendations.~~the ~~Management~~stock ~~estimates~~exchanges ~~that~~in ~~Phase~~the IUnited ~~normally~~States ~~takes~~and ~~about~~other ~~three~~countries. ~~months~~The toCompany ~~complete~~categorizes ~~based~~its onconsulting ~~its~~services ~~past~~into ~~experience.~~three Phases:

8Phase I consulting services primarily include due diligence review, market research and feasibility study, business plan drafting, accounting record review, and business analysis and recommendations. Management estimates that Phase I normally takes about three months to complete based on its past experience.

~~ATIF HOLDINGS LIMITED~~7

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL~~ATIF ~~STATEMENTS~~HOLDINGS LIMITED

~~NOTE~~NOTES TO 3UNAUDITED –CONDENSED ~~SUMMARY~~CONSOLIDATED OFFINANCIAL ~~SIGNIFICANT ACCOUNTING POLICIES (continued)~~STATEMENTS

~~Revenue~~NOTE 2 ~~Recognition~~– SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

~~Phase II consulting services primarily include reorganization,~~Revenue ~~pre-listing~~Recognition education and tutoring, talent search, legal and audit firm recommendation and coordination, VIE contracts and other public-listing related documents review, merger and acquisition planning, investor referral and pre-listing equity financing source identification and recommendations, and independent directors and audit committee candidate’s recommendation. Management estimates that Phase II normally takes about eight months to complete based on its past experience.(continued)

Phase II ~~III~~ consulting services primarily include ~~shell company~~reorganization, ~~identification~~pre-listing education and ~~recommendation~~tutoring, ~~for~~talent ~~customers~~search, ~~expecting~~legal toand ~~become~~audit ~~publicly~~firm ~~listed~~recommendation and ~~through~~coordination, ~~reverse~~VIE ~~merger~~contracts ~~transaction;~~and ~~assistance in~~other ~~preparation of customers’~~ public-listing ~~filings~~related ~~for~~documents ~~IPO~~review, ~~or reverse~~ merger ~~transactions;~~ and ~~assistance~~acquisition inplanning, ~~answering~~investor ~~comments~~ referral and ~~questions received~~pre-listing ~~from~~equity ~~regulatory~~financing ~~agencies.~~source ~~Management~~identification ~~believes~~and itrecommendations, isand ~~very~~independent ~~difficult~~directors toand ~~estimate~~audit ~~the~~committee ~~timing~~candidate’s recommendation. ofManagement ~~this~~estimates ~~phase~~that ofPhase ~~service~~II asnormally ~~the~~takes ~~completion of~~about ~~Phase~~eight ~~III~~months ~~services~~to iscomplete ~~not~~based ~~within~~on ~~the~~its ~~Company’s~~past ~~control~~experience.

~~Each~~Phase III ~~phase of~~ consulting services isprimarily ~~stand-alone~~include ~~and fees~~shell ~~associated~~company ~~with~~identification ~~each~~and ~~phase~~recommendation ~~are~~for ~~clearly~~customers ~~identified~~expecting into ~~service~~become ~~agreements. Revenue from providing Phase I and Phase II consulting services~~publicly tolisted ~~customers~~through isreverse ~~recognized~~merger ~~ratably~~transaction; ~~over~~assistance ~~the~~in ~~estimated~~preparation ~~completion period~~ of ~~each~~customers’ ~~phase~~public asfilings ~~the~~for ~~Company’s~~IPO ~~performance~~or ~~obligations~~reverse ~~related~~merger transactions; toand ~~these~~assistance ~~services~~in ~~are~~answering ~~carried~~comments ~~out~~and ~~over~~questions ~~the~~received ~~whole~~from ~~duration~~regulatory ~~of each Phase~~agencies. ~~Revenue~~Management ~~from~~believes ~~providing~~it ~~Phase~~is ~~III~~very ~~consulting~~difficult ~~services~~ to ~~customers~~estimate isthe ~~recognized~~timing ~~upon completion~~ of ~~the~~this ~~reverse~~phase ~~merger~~of ~~transaction~~service oras ~~IPO~~the ~~transaction~~completion ~~when~~of ~~the~~Phase ~~Company’s~~III ~~promised~~ services ~~are~~is ~~rendered and~~not within the Company’s ~~performance obligations are satisfied~~control. ~~Revenue that has been billed and not yet recognized is reflected as deferred revenue on the balance sheet.~~

~~Depending~~Each phase onof ~~the~~consulting ~~complexity~~services ofis ~~the~~stand-alone ~~underlying~~and ~~service arrangement~~fees ~~and~~associated ~~related~~with ~~terms~~each ~~and~~phase ~~conditions,~~are ~~significant~~clearly ~~judgments,~~identified ~~assumptions,~~in service agreements. Revenue from providing Phase I and ~~estimates~~Phase ~~may~~II beconsulting ~~required~~services to ~~determine~~customers ~~when~~is ~~substantial delivery~~recognized ofratably ~~contract~~over ~~elements~~the ~~has~~estimated ~~occurred,~~completion ~~whether~~period ~~any~~of ~~significant~~each phase ~~ongoing~~as ~~obligations~~the ~~exist~~Company’s ~~subsequent~~performance toobligations ~~contract~~related ~~execution,~~to ~~whether amounts~~these ~~due~~services are ~~collectible~~carried ~~and~~out over the ~~appropriate~~whole ~~period~~duration orof ~~periods~~each inPhase. Revenue ~~which,~~from orproviding ~~during~~Phase ~~which,~~III ~~the~~consulting services to customers is recognized upon completion of the ~~earnings~~reverse ~~process~~merger ~~occurs.~~transaction or ~~Depending~~IPO ontransaction when the ~~magnitude~~Company’s ofpromised ~~specific~~services ~~revenue~~are ~~arrangements,~~rendered ~~adjustment~~and ~~may~~the beCompany’s ~~made~~performance toobligations ~~the~~are ~~judgments,~~satisfied. Revenue ~~assumptions,~~that has been billed and ~~estimates~~not ~~regarding contracts~~yet ~~executed~~recognized inis ~~any~~reflected ~~specific~~as ~~period~~deferred revenue on the balance sheet.

~~Income~~Depending on ~~Taxes~~the complexity of the underlying service arrangement and related terms and conditions, significant judgments, assumptions, and estimates may be required to determine when substantial delivery of contract elements has occurred, whether any significant ongoing obligations exist subsequent to contract execution, whether amounts due are collectible and the appropriate period or periods in which, or during which, the completion of the earnings process occurs. Depending on the magnitude of specific revenue arrangements, adjustment may be made to the judgments, assumptions, and estimates regarding contracts executed in any specific period.

~~The Company accounts for income taxes under ASC 740.~~Income Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.Taxes

AnThe Company ~~uncertain~~accounts ~~tax~~for ~~position~~income istaxes ~~recognized~~under ~~only~~ASC if740. ~~it is~~Deferred ~~“more~~tax ~~likely~~assets ~~than~~and ~~not”~~liabilities ~~that~~are ~~the~~recognized ~~tax~~for ~~position~~the ~~would~~future ~~be sustained in a~~ tax ~~examination.~~consequences ~~The~~attributable to ~~amount~~differences ~~recognized~~between is the ~~largest amount~~consolidated offinancial ~~tax~~statement ~~benefit~~carrying ~~that~~amounts isof ~~greater~~existing ~~than~~assets ~~50%~~and ~~likely~~liabilities ofand ~~being~~their ~~realized~~respective tax ~~on examination~~bases. ~~For~~Deferred tax ~~positions~~assets ~~not~~and ~~meeting~~liabilities ~~the~~are ~~“more likely~~measured ~~than~~using ~~not”~~enacted ~~test, no~~ tax ~~benefit~~rates isexpected ~~recorded.~~to ~~Penalties~~apply ~~and interest incurred related~~ to ~~underpayment~~taxable of income ~~tax~~in ~~are~~the ~~classified~~years ~~as income tax expense~~ in ~~the~~which ~~period~~those ~~incurred.~~temporary ~~The~~differences ~~Company~~are ~~did~~expected ~~not~~to ~~have~~be ~~unrecognized~~recovered ~~uncertain tax positions~~ or ~~any~~settled. ~~unrecognized~~The ~~liabilities, interest~~effect oron ~~penalties~~deferred ~~associated with unrecognized~~ tax ~~benefit~~assets asand liabilities of ~~October~~a change ~~31,~~in ~~2024.~~tax Asrates ofis ~~October~~recognized ~~31,~~in ~~2024,~~income ~~all~~in of the ~~Company’s income~~period ~~tax~~including ~~returns~~the ~~for~~enactment ~~the~~date. ~~tax~~Valuation ~~years~~allowances ~~ended~~are ~~December 31~~established, ~~2019~~when ~~through December 31~~necessary, to ~~2023~~reduce ~~remain~~deferred ~~open~~tax ~~for~~assets ~~statutory~~to ~~examination by~~the ~~relevant~~amount ~~tax~~expected ~~authorities~~to be realized.

9An uncertain tax position is recognized only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. The Company did not have unrecognized uncertain tax positions or any unrecognized liabilities, interest or penalties associated with unrecognized tax benefit as of January 31, 2025. As of January 31, 2025, all of the Company’s income tax returns for the tax years ended December 31, 2019 through December 31, 2023 remain open for statutory examination by relevant tax authorities.

~~ATIF HOLDINGS LIMITED~~8

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL~~ATIF ~~STATEMENTS~~HOLDINGS LIMITED

~~NOTE~~NOTES TO 3UNAUDITED –CONDENSED ~~SUMMARY~~CONSOLIDATED OFFINANCIAL ~~SIGNIFICANT ACCOUNTING POLICIES (continued)~~STATEMENTS

~~Segment~~NOTE 2 ~~reporting~~– SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

~~Operating segments are defined as components of an~~Segment enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s CODM is Mr. Liu, the Chairman of the Board of Directors and CEO.reporting

~~The~~Operating segments ~~Company’s~~are ~~organizational~~defined ~~structure~~as iscomponents ~~based on~~of aan ~~number~~enterprise ofabout ~~factors~~which ~~that~~separate ~~the~~financial ~~CODM~~information ~~uses~~is toavailable ~~evaluate,~~that ~~view~~is ~~and~~evaluated ~~run~~regularly by ~~its~~the ~~business~~chief ~~operations~~operating ~~which~~decision ~~include~~maker (“CODM”), ~~but~~or ~~not~~decision ~~limited~~making togroup, ~~customer base,~~in ~~homogeneity~~deciding ofhow ~~service~~to allocate resources and ~~technology~~in assessing performance. The Company’s ~~operating segments are based on such organizational structure and information reviewed by the~~ CODM tois ~~evaluate the operating segment results~~Dr. ~~Based~~Kamran ~~on management’s assessment~~Khan, the ~~management~~Chairman ~~has~~of ~~determined that~~ the ~~Company~~Board ~~now operates in one operating segment with one reporting segment as~~ of ~~October~~Directors ~~31, 2024~~ and ~~July 31, 2024, which is the consulting service business~~CEO.

~~Risks~~The Company’s organizational structure is based on a number of factors that the CODM uses to evaluate, view and ~~Uncertainty~~run its business operations which include, but not limited to, customer base, homogeneity of service and technology. The Company’s operating segments are based on such organizational structure and information reviewed by the CODM to evaluate the operating segment results. Based on management’s assessment, the management has determined that the Company now operates in one operating segment with one reporting segment as of January 31, 2025 and July 31, 2024, which is the consulting service business.

~~(a)~~Risks and ~~Credit risk~~Uncertainty

~~As of October 31, 2024, the Company held cash and~~(a) ~~cash~~Credit equivalents of $114,721 deposited in the banks located in the U.S., which were insured by FDIC up to $250,000, and held cash and cash equivalents of $343,043 deposited in the investment bank accounts located in the U.S.risk

~~(b)~~As of ~~Concentration~~January ~~risk~~31, 2025, the Company held cash and cash equivalents of $5,242,239 deposited in the banks located in the U.S., which were insured by FDIC up to $250,000, and held cash and cash equivalents of $27,451 deposited in the investment bank accounts located in the U.S.

~~Accounts receivable are typically unsecured and derived~~(b) ~~from~~Concentration ~~revenue earned from customers, thereby exposed to credit~~ risk~~. The risk is mitigated by the Company’s assessment of its customers’ creditworthiness and its ongoing monitoring of outstanding balances.~~

~~The~~Accounts receivable ~~Company~~are ~~has~~typically aunsecured ~~concentration of its revenues~~ and ~~receivables with specific~~derived ~~customers.~~from ~~For~~revenue ~~the~~earned ~~three~~from ~~months ended October 31~~customers, ~~2024,~~thereby ~~the~~exposed ~~Company~~to ~~did~~credit ~~not generate revenues~~risk. ~~For~~The ~~the~~risk ~~three~~is ~~months ended October~~mitigated ~~31,~~by ~~2023,~~the ~~three~~Company’s ~~customers~~assessment ~~accounted~~of ~~for~~its ~~48%,~~customers’ ~~40%~~creditworthiness and ~~12%~~its ofongoing ~~the~~monitoring ~~Company’s~~of ~~consolidated~~outstanding ~~revenue, respectively~~balances.

AsThe Company has a concentration of ~~October~~its ~~31,~~revenues ~~2024~~and receivables with specific customers. For the three and ~~July~~six months ended January 31, ~~2024~~2025, one ~~and one related party~~ customer accounted for 100% ~~and~~of the Company’s consolidated revenue. For the three months ended January 31, 2024, one customer accounted for 100% of the Company’s consolidated ~~accounts~~revenue. ~~receivable~~For the six months ended January 31, ~~respectively~~2024, four customers accounted for 40%, 33%, 17% and 10% of the Company’s consolidated revenue.

~~For~~As of ~~the~~January ~~three months ended October~~ 31, ~~2023~~2025, ~~substantially all of the~~ Company’s ~~revenues~~accounts ~~was~~receivable ~~generated~~balance ~~from~~is ~~providing going public related consulting services to customers~~nil. ~~For~~As ~~the~~of ~~three~~July ~~months ended October~~ 31, 2024, ~~the~~one ~~Company~~related ~~did~~party ~~not~~customer ~~generate~~accounted ~~revenues.~~for 100% ~~The~~of ~~Company plans to mitigate~~ the ~~risks~~Company’s byconsolidated ~~transitioning~~accounts ~~its consulting services from the PRC based customers to more international customers~~receivable.

~~(c)~~For the ~~Other~~three ~~risks~~and six months ended January 31, 2025 and ~~uncertainties~~2024, substantially all of the Company’s revenues was generated from providing going public related consulting services to customers. The Company plans to mitigate the risks by transitioning its consulting services from the PRC based customers to more international customers.

~~The Company’s business, financial condition~~(c) ~~and~~Other ~~results of operations may also be negatively impacted by~~ risks ~~related to natural disasters, extreme weather conditions, health epidemics~~ and ~~other catastrophic incidents, which could significantly disrupt the Company’s operations.~~uncertainties

10The Company’s business, financial condition and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics and other catastrophic incidents, which could significantly disrupt the Company’s operations.

~~ATIF HOLDINGS LIMITED~~9

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL~~ATIF ~~STATEMENTS~~HOLDINGS LIMITED

~~NOTE~~NOTES TO 3UNAUDITED –CONDENSED ~~SUMMARY~~CONSOLIDATED OFFINANCIAL ~~SIGNIFICANT ACCOUNTING POLICIES (continued)~~STATEMENTS

~~Recent~~NOTE 2 ~~Accounting~~– ~~Pronouncements~~SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

~~In December 2023, the FASB issued ASU 2023-09,~~Recent ~~which~~Accounting is an update to Topic 740, Income Taxes. The amendments in this update related to the rate reconciliation and income taxes paid disclosures improve the transparency of income tax disclosures by requiring (1) adding disclosures of pretax income (or loss) and income tax expense (or benefit) to be consistent with U.S. Securities and Exchange Commission (the “SEC”) Regulation S-X 210.4-08(h), Rules of General Application — General Notes to Financial Statements: Income Tax Expense, and (2) removing disclosures that no longer are considered cost beneficial or relevant. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments in this update should be applied on a prospective basis. Retrospective application is permitted. The Company is in the process of evaluating the impact of ASU 2023-09 on the consolidated financial statements.Pronouncements

In ~~October~~ December 2023, the FASB issued ASU 2023-0609, ~~Disclosure~~ ~~Improvements~~which is an update to Topic ~~— Codification~~740, ~~Amendments~~Income Taxes. The amendments in ~~Response~~this update related to ~~SEC’s~~the ~~Disclosure~~rate ~~Update~~reconciliation and ~~Simplification~~income ~~Initiative which~~taxes ~~amend~~paid disclosures improve the ~~disclosure~~transparency orof ~~presentation~~income ~~requirements~~tax ofdisclosures ~~codification~~by ~~subtopic~~requiring (1) ~~230-10~~adding ~~Statement~~disclosures of ~~Cash~~pretax ~~Flows — Overall, 250-10 Accounting~~income ~~Changes~~(or loss) and ~~Error~~income ~~Corrections — Overall, 260-10~~tax ~~Earnings~~expense ~~Per~~(or ~~Share — Overall, 270-10 Interim~~benefit) ~~Reporting — Overall, 440-10~~to ~~Commitments — Overall, 470-10~~be ~~Debt — Overall, 505-10 Equity — Overall, 815-10~~consistent ~~Derivatives~~with U.S. Securities and ~~Hedging — Overall, 860-30~~Exchange ~~Transfers~~Commission ~~and~~(the ~~Servicing — Secured Borrowing~~“SEC”) ~~and Collateral,~~Regulation ~~932~~S-~~235~~X ~~Extractive~~210.4-08(h), ~~Activities — Oil~~Rules ~~and~~of ~~Gas~~General Application — General Notes to Financial Statements~~, 946-20 Financial~~: ~~Services — Investment~~Income ~~Companies — Investment~~Tax ~~Company Activities~~Expense, and ~~974-10~~ ~~Real Estate~~(2) ~~— Real Estate~~removing ~~Investment~~disclosures ~~Trusts — Overall.~~that ~~The~~no ~~amendments~~longer ~~represent~~are ~~changes~~considered tocost ~~clarify~~beneficial or ~~improve disclosure and presentation~~ ~~requirements~~relevant. ofFor ~~the~~public ~~above~~business ~~subtopics.~~entities, ~~Many of~~ the amendments ~~allow~~in ~~users~~this toUpdate ~~more~~are ~~easily~~effective ~~compare~~for ~~entities~~annual ~~subject~~periods tobeginning ~~the~~after ~~SEC’s existing~~December 15, ~~disclosures~~2024. ~~with~~For ~~those~~ entities ~~that~~other ~~were~~than ~~not~~public ~~previously~~business ~~subject to the SEC’s requirements. Also~~entities, the amendments ~~align~~are ~~the~~effective ~~requirements in~~for ~~the~~annual ~~codification~~periods ~~with~~beginning ~~the~~after ~~SEC’s regulations~~December 15, 2025. ~~For~~Early ~~entities~~adoption ~~subject~~is topermitted ~~existing~~for ~~SEC~~annual ~~disclosure requirements or those that must provide~~ financial statements tothat ~~the~~have ~~SEC~~not ~~for~~yet ~~securities~~been ~~purposes~~issued ~~without~~or ~~contractual~~made ~~transfer~~available ~~restrictions,~~for ~~the effective date aligns with the date when the SEC removes the related disclosure from Regulation S-X or Regulation S-K~~issuance. ~~Early~~ ~~adoption~~The ~~is not allowed.~~amendments ~~For~~in ~~all~~this ~~other~~update ~~entities,~~should ~~the amendments will~~ be ~~effective~~applied ~~two years~~on ~~later~~a ~~from~~prospective ~~the~~basis. ~~date~~Retrospective ofapplication ~~the~~is ~~SEC’s removal~~permitted. The Company is in the process of evaluating the impact of ASU 2023-0609 on the consolidated financial statements.

~~Recently~~In October 2023, the FASB issued ~~ASUs~~ASU 2023-06, byDisclosure Improvements — Codification Amendments in Response to SEC’s Disclosure Update and Simplification Initiative which amend the ~~FASB~~disclosure or presentation requirements of codification subtopic 230-10 Statement of Cash Flows — Overall, 250-10 ~~except~~Accounting Changes and Error Corrections — Overall, 260-10 Earnings Per Share — Overall, 270-10 Interim Reporting — Overall, 440-10 Commitments — Overall, 470-10 Debt — Overall, 505-10 Equity — Overall, 815-10 Derivatives and Hedging — Overall, 860-30 Transfers and Servicing — Secured Borrowing and Collateral, 932-235 Extractive Activities — Oil and Gas — Notes to Financial Statements, 946-20 Financial Services — Investment Companies — Investment Company Activities, and 974-10 Real Estate — Real Estate Investment Trusts — Overall. The amendments represent changes to clarify or improve disclosure and presentation requirements of the above subtopics. Many of the amendments allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the SEC’s requirements. Also, the amendments align the requirements in the codification with the SEC’s regulations. For entities subject to existing SEC disclosure requirements or those that must provide financial statements to the SEC for securities purposes without contractual transfer restrictions, the ~~ones~~effective date aligns with the date when the SEC removes the related disclosure from Regulation S-X ~~mentioned~~or ~~above~~Regulation S-K. Early adoption is not allowed. For all other entities, ~~have~~the noamendments ~~material~~will ~~impact~~be oneffective two years later from the ~~Company~~date of the SEC’s ~~condensed~~removal. ~~consolidated~~The ~~results~~Company is in the process of ~~operations~~evaluating orthe impact of ASU 2023-06 on the consolidated financial ~~position~~statements.

11In November 2023, the FASB issued ASU 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which focuses on improving reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. A public entity shall disclose for each reportable segment the significant expense categories and amounts that are regularly provided to the CODM and included in reported segment profit or loss. ASU 2023-07 also requires public entities to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Entities are permitted to disclose more than one measure of a segment’s profit or loss if such measures are used by the CODM to allocate resources and assess performance, as long as at least one of those measures is determined in a way that is most consistent with the measurement principles used to measure the corresponding amounts in the consolidated financial statements. ASU 2023-07 is applied retrospectively to all periods presented in financial statements, unless it is impracticable. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

~~ATIF~~In November ~~HOLDINGS~~2024, ~~LIMITED~~the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures, which emphasizes the importance of providing more granular and detailed expense information in financial statements. The update requires entities to disaggregate expenses by nature and function on the income statement, offering a clearer picture of an entity's cost structure and operational efficiency. This enhanced disclosure is intended to improve the transparency and comparability of financial reporting. Entities must apply the new guidance retrospectively to all periods presented in the financial statements. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is in the process of assessing the impact of these changes on its financial reporting and will implement the necessary adjustments to comply with the updated standards.

~~NOTES~~Recently issued TOASUs ~~UNAUDITED~~by ~~CONDENSED~~the ~~CONSOLIDATED~~FASB, ~~FINANCIAL~~except for the ones mentioned above, have no material impact on the Company’s condensed consolidated results ~~STATEMENTS~~of operations or financial position.

~~NOTE 4 – PREPAID EXPENSES AND OTHER CURRENT ASSETS~~10

~~Prepaid expenses and other current assets consisted~~ATIF ofHOLDINGS ~~the following:~~LIMITED

	October 31, 2024		July 31, 2024
	(unaudited)
Prepayment for advertising service fee (a)	$	48,000	$	120,000
Others		2,224		2,224
Total	$	50,224	$	122,224

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~(a)~~NOTE 3 ~~Prepayment~~– ~~for~~PREPAID ~~advertising~~EXPENSES ~~services~~AND ~~represent~~OTHER ~~the~~CURRENT ~~advance payments made by the Company to a third party advertising company for producing advertising contents. These prepayments are typically expensed over the period when the services are performed.~~ASSETS

~~NOTE~~Prepaid expenses 5and –other ~~PROPERTY,~~current ~~PLANT~~assets ~~AND~~consisted ~~EQUIPMENT,~~of ~~NET~~the following:

Property and equipment, net consisted of the following:

	January 31, 2025		July 31, 2024
	(unaudited)
Prepayment for advertising service fee (a)	$	-	$	120,000
Others		14,944		2,224
Total	$	14,944	$	122,224

	October 31, 2024			July 31, 2024
	(unaudited)
Furniture, fixtures and equipment	$	209,290		$	209,290
Less: accumulated depreciation		(155,525	)		(149,243	)
Property and equipment, net	$	53,765		$	60,047

(a)	Prepayment for advertising services represent the advance payments made by the Company to a third party advertising company for producing advertising contents. These prepayments were expensed in the second quarter when the services were performed.

~~Depreciation expense was $6,282 and $9,669 for the~~NOTE ~~three~~4 ~~months~~– ~~ended October 31~~PROPERTY, ~~2024~~PLANT ~~and~~AND ~~2023~~EQUIPMENT, ~~respectively.~~NET

~~NOTE~~Property and 6equipment, –net ~~INVESTMENTS~~consisted INof ~~TRADING~~the ~~SECURITIES~~following:

As of October 31, 2024 and July 31, 2024, the balance of investments in trading securities represented (i) certain equity securities of listed companies purchased through various open market transactions by the Company during the relevant periods. The investments are initially recorded at cost, and subsequently measured at fair value with the changes in fair value recorded in other income (expenses), net in the condensed consolidated statement of operations and comprehensive loss, and (ii) 7,850,000 ordinary shares of a listed company granted by a shareholder as capital contribution. The ordinary shares were granted on October 28, 2024 and were subject to 1933Act restrictions until March 2025. As of October 31, 2024, the fair value of the 7,850,000 ordinary shares was $3,730,320. The Company initially accounted for the share as “investment in trading securities” at fair value by reference to the prevailing market price on shares grant date, and subsequently measure the share awards at fair value.

	January 31, 2025		July 31, 2024
	(unaudited)
Furniture, fixtures and equipment	$	-	$	209,290
Less: accumulated depreciation		-		(149,243	)
Property and equipment, net	$	-	$	60,047

~~For~~Depreciation expense was nil and $9,669 for the three months ended ~~October~~January 31, ~~2024~~2025 and ~~2023~~ 2024, ~~the~~respectively. ~~Company~~Depreciation ~~recognized~~expense anwas ~~increase~~$6,282 inand ~~fair value of investments of~~ $~~148~~19,~~158~~338 for ~~and~~the asix ~~decrease~~months inended ~~fair~~January ~~value~~31, of2025 ~~$109~~and 2024,~~404,~~ respectively.

12In November 2024, the lease agreement with related party lessor was terminated prematurely, resulting in the disposal of all furniture, fixtures, and equipment located at the leased premises. Loss on disposal of the property and equipment was $53,765, which was recorded as other (expense) income in the consolidated statements of operations and comprehensive loss as of January 31, 2025.

~~ATIF~~NOTE ~~HOLDINGS~~5 – ~~LIMITED~~INVESTMENTS IN TRADING SECURITIES

~~NOTES~~As of TOJanuary ~~UNAUDITED~~31, ~~CONDENSED~~2025 ~~CONSOLIDATED~~and ~~FINANCIAL~~July 31, 2024, the balance of investments in trading securities represented (i) certain equity securities of ~~STATEMENTS~~listed companies purchased through various open market transactions by the Company during the relevant periods. The investments are initially recorded at cost, and subsequently measured at fair value with the changes in fair value recorded in other income (expenses), net in the condensed consolidated statement of operations and comprehensive loss, and (ii) 7,850,000 ordinary shares of a listed company granted by a shareholder as capital contribution. The ordinary shares were granted on October 28, 2024 and were subject to 1933Act restrictions until March 2025. As of January 31, 2025, the fair value of the 7,850,000 ordinary shares was $2,570,090. The Company initially accounted for the share as “investment in trading securities” at fair value by reference to the prevailing market price on shares grant date, and subsequently measure the share awards at fair value.

~~NOTE~~For the 7three –months ~~OPERATING~~ended ~~LEASES~~January 31, 2025 and 2024, the Company recognized a decrease in fair value of investments of $1,286,722 and an increase in fair value of $80,670, respectively. For the six months ended January 31, 2025 and 2024, the Company recognized a decrease in fair value of investments of $1,138,564 and $28,734, respectively.

~~As of October 31, 2024, the Company leases offices space under one non-cancelable operating lease with a related party lessor (Note 10).~~11

~~The Company’s lease agreements do not contain~~ATIF ~~any~~HOLDINGS ~~material residual value guarantees or material restrictive covenants. Rent expenses for the three months ended October 31, 2024 and 2023 were $9,000 and $125,679, respectively.~~LIMITED

~~The Company elected the package of practical expedients,~~NOTES ~~which~~TO ~~allows~~UNAUDITED ~~the~~CONDENSED ~~Company~~CONSOLIDATED toFINANCIAL not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company combines the lease and non-lease components in determining the right-of-use (“ROU”) assets and related lease obligation. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities as disclosed below. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term.STATEMENTS

~~The~~NOTE ~~following table presents the operating lease related~~6 ~~assets~~– ~~and~~OPERATING ~~liabilities recorded on the balance sheets as of October 31, 2024 and July 31, 2024.~~ LEASES

	October 31, 2024		July 31, 2024
	(unaudited)
Right-of- use assets	$	45,475	$	53,793
Operating lease liabilities, current		20,683	$	11,375
Operating lease liabilities, noncurrent		11,790		20,417
Total operating lease liabilities	$	32,473	$	31,792

The Company leased offices space under one non-cancelable operating lease with a related party lessor (Note 10). This lease agreement was terminated in November 2024, resulting in a loss from early termination amounting to $13,000. The loss comprised prepaid rental and lease deposit that were non-recoverable upon early termination, was recorded under other (expense) income in the consolidated statement of operations and comprehensive loss for the three and six months ended January 31, 2025.

~~The~~Rent expenses ~~weighted~~for ~~average~~the ~~remaining~~three ~~lease~~months ~~terms~~ended January 31, 2025 and ~~discount rates~~2024 ~~for~~were ~~all~~$3,000 ofand ~~operating~~$ ~~leases~~120,692, ~~were~~respectively. asRent ~~follows~~expenses asfor ofthe ~~October~~six months ended January 31, 2025 and 2024 were $12,000 and ~~July~~$ 31246,371, ~~2024:~~respectively.

	October 31, 2024			July 31, 2024
	(unaudited)
Remaining lease term and discount rate
Weighted average remaining lease term (years)		1.33			1.58
Weighted average discount rate		8.50	%		8.50	%

NOTE 7 – ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES, AND OTHER LONG-TERM LIABILITIES

13Accounts payable, accrued expenses and other current liabilities consisted of the following:

ATIF HOLDINGS LIMITED

	January 31, 2025		July 31, 2024
	(unaudited)
Accounts payable, accrued expenses and other current liabilities:
Accrued litigation fee, current (a)	$	500,000	$	750,000
Investment securities payable		-		69,621
Others		943		137,436
	$	500,943	$	957,057
Current portion of long-term payables:
Accrued litigation fee, noncurrent (a)	$	250,000	$	250,000

~~NOTES~~(a) TOOn ~~UNAUDITED~~September ~~CONDENSED~~24, ~~CONSOLIDATED~~2024, ~~FINANCIAL STATEMENTS~~the Company and Boustead Securities, LLC (“Boustead”) entered into a settlement agreement, pursuant to which the Company would compensate Boustead in the amount of $1,000,000. The compensation is payable in three instalments, with first instalment of $250,000 payable with execution of settlement agreement, the second instalment of $500,000 payable before March 1, 2025, and the final instalment of $250,000 payable before December 31, 2025. In September 2024, the Company paid the first instalment. Accordingly, the Company recorded accrued litigation fees of $500,000 and $750,000 as current liabilities as of January 31, 2025 and July 31, 2024, respectively. The remaining $250,000 was recorded as noncurrent liabilities as of January 31, 2025 and July 31, 2024.

NOTE 8 7 – ~~OPERATING~~COMMON ~~LEASES (continued)~~STOCK

~~The~~On January ~~following~~15, is2025, athe ~~schedule~~Company ofentered ~~maturities~~into certain securities purchase agreement with certain non-affiliated institutional investors pursuant to which the Company agreed to sell 3,820,000 of ~~lease~~its ordinary shares in a registered direct offering, for gross proceeds of ~~liabilities~~approximately as$4.7 million. The purchase price for each Ordinary Share is $1.25. As of ~~October~~January 3115, ~~2024~~2025, the Company had 100,000,000,000 authorized ordinary shares, and ~~July~~15,737,452 31ordinary shares were issued and outstanding, ~~2024:~~respectively.

	October 31, 2024			July 31, 2024
	(unaudited)
2025	$	14,000		$	14,000
2026		21,000			21,000
Total lease payments		35,000			35,000
Less: imputed interest		(2,527	)		(3,208	)
Present value of lease liabilities	$	32,473		$	31,792

NOTE 9 – ADDITIONAL PAID-IN CAPITAL

~~NOTE~~On October 828, –2024, ~~ACCOUNTS~~the ~~PAYABLE~~Company was granted 7,850,000 ~~ACCRUED~~ordinary ~~EXPENSES~~shares of a listed company by a shareholder as capital contribution. The ~~AND~~ordinary ~~OTHER~~shares ~~CURRENT~~were ~~LIABILITIES~~subject to 1933 Act restrictions until March 2025. The Company initially accounted for the share as “investment in trading securities” at fair value of $3,611,000, ~~AND~~with ~~OTHER~~corresponding ~~LONG~~account charged to “additional paid-~~TERM~~in ~~LIABILITIES~~capital”.

~~Accounts payable, accrued expenses and other current liabilities consisted of the following:~~12

	October 31, 2024		July 31, 2024
		(unaudited)
Accounts payable, accrued expenses and other current liabilities:
Accrued litigation fee, current (a)	$	500,000	$	750,000
Investment securities payable		-		69,621
Others		84,380		137,436
	$	584,380	$	957,057
Other long-term liabilities:
Accrued litigation fee, noncurrent (a)	$	250,000	$	250,000

ATIF HOLDINGS LIMITED

~~(a)~~NOTES TO OnUNAUDITED ~~September~~CONDENSED ~~24,~~CONSOLIDATED ~~2024,~~FINANCIAL the Company and Boustead Securities, LLC (“Boustead”) entered into a settlement agreement, pursuant to which the Company would compensate Boustead in the amount of $1,000,000. The compensation is payable in three instalments, with first instalment of $250,000 payable with execution of settlement agreement, the second instalment of $500,000 payable before March 1, 2025, and the final instalment of $250,000 payable before December 31, 2025. In September 2024, the Company paid the first instalment. Accordingly, the Company recorded accrued litigation fees of $500,000 and $750,000 as current liabilities as of October 31, 2024 and July 31, 2024, respectively. The remaining $250,000 was recorded as noncurrent liabilities as of October 31, 2024 and July 31, 2024.STATEMENTS

NOTE 10 9 – ~~ADDITIONAL~~RELATED ~~PAID-IN~~PARTY ~~CAPITAL~~TRANSACTIONS

On1) ~~October~~Nature ~~28, 2024, the Company was granted 7,850,000 ordinary shares~~ of arelationships listed company by a shareholder as capital contribution. The ordinary shares were subject to 1933 Act restrictions until March 2025. The Company initially accounted for the share as “investment in trading securities” at fair value of $3,611,000, with ~~corresponding~~related ~~account charged to “additional paid-in capital”.~~parties

14The table below sets forth the major related parties and their relationships with the Company, with which the Company entered into transactions during the three months ended January 31, 2025 and 2024, or recorded balances as of January 31, 2025 and July 31, 2024:

~~ATIF~~Name ~~HOLDINGS~~Relationship ~~LIMITED~~with the Company Mr. Jun Liu The Chief Executive Officer of the Company Huaya Wholly owned by Mr. Pishan Chi, the former Chief Executive Officer of the Company Asia International Securities Exchange Co., Ltd. Wholly owned by Mr. Jun Liu Zachary Group LLC (“Zachary Group”) Wholly owned by Mr. Jun Liu

~~NOTES~~2) TOTransactions ~~UNAUDITED~~with ~~CONDENSED~~related ~~CONSOLIDATED FINANCIAL STATEMENTS~~parties

~~NOTE~~In June 102022, –the ~~RELATED~~Company ~~PARTY~~entered ~~TRANSACTIONS~~into an office lease agreement (“Lease Agreement”) with Zachary Group. Pursuant to the agreement, the Company would lease the office space for a lease term of 5 years, matured in May 2027. The monthly rental fee was $20,000, payable on a monthly basis. On March 1, 2024, the Company and Zachary Group modified the lease agreement to reduce the lease term and office space. The modified agreement was for a lease term of 2 years through February 2026, and monthly rental fee was $3,000, payable on a monthly basis. On November 30, 2024, the Company entered into an agreement with Zachary Group and agreed that the Lease Agreement would be terminated effective November 1, 2024.

1)For the ~~Nature~~three months ended January 31, 2025 and 2024, the Company recorded rental expenses of ~~relationships~~$3,000 and ~~with~~$60,000, ~~related~~respectively. ~~parties~~For the six months ended January 31, 2025 and 2024, the Company recorded rental expenses of $12,000 and $120,000, respectively.

~~The table below sets forth~~ For the ~~major~~three ~~related parties~~ and ~~their~~six ~~relationships~~months ~~with~~ended ~~the~~January ~~Company~~31, ~~with~~2025, ~~which~~ the Company ~~entered~~collected ~~into~~loans ~~transactions~~of ~~during the three months ended October 31~~$93,013 ~~2024~~ and ~~2023,~~repaid orloans ~~recorded balances as~~ of ~~October 31~~$93,013 ~~2024~~to ~~and~~Mr. ~~July~~Jun ~~31, 2024:~~Liu.

~~Name Relationship with~~ For the ~~Company~~three ~~Mr.~~and ~~Jun~~six ~~Liu~~months ~~The~~ended ~~Chief~~January ~~Executive~~31, ~~Officer~~2024, of the Company ~~Huaya~~repaid ~~Wholly~~loans ~~owned~~of ~~by Mr. Pishan Chi~~$17,710 ~~the~~to ~~former Chief Executive Officer of the Company~~ Asia International Securities Exchange Co., Ltd. The ~~Wholly~~loans ~~owned~~were byinterest Mrfree and was repayable on demand. ~~Jun~~For ~~Liu~~the ~~Zachary~~three ~~Group~~and ~~LLC~~six ~~(“Zachary~~months ~~Group”)~~ended ~~Wholly~~January ~~owned~~31, by2024, ~~Mr.~~the ~~Jun~~Company ~~Liu~~collected loans of $20,000 from Huaya.

23) ~~Transactions~~Balances with related parties

	October 31, 2024		July 31, 2024
	(unaudited)
Provision of consulting services to related parties
Asia International Securities Exchange Co., Ltd.	$	-	$	200,000
	$	-	$	200,000

As of January 31, 2025 and July 31, 2024, the balances due from related parties were as follows:

In June 2022, the Company entered into an office lease agreement with Zachary Group. Pursuant to the agreement, the Company would lease the office space for a lease term of 5 years, matured in May 2027. The monthly rental fee was $20,000, payable on a monthly basis. On March 1, 2024, the Company and Zachary Group modified the lease agreement to reduce the lease term and office space. The modified agreement was for a lease term of 2 years through February 2026, and monthly rental fee was $3,000, payable on a monthly basis. For the three months ended October 31, 2024 and 2023, the Company recorded rental expenses of $9,000 and $60,000, respectively.

	January 31, 2025		July 31, 2024
	(unaudited)
Accounts receivable:
Asia International Securities Exchange Co., Ltd.	$	-	$	200,000
	$	-	$	200,000
Due from related parties:
Asia International Securities Exchange Co., Ltd. (a)	$	-	$	900,000
Mr. Jun Liu		600,000
	$	600,000	$	900,000

~~For~~a) ~~the~~The ~~three~~balance ~~months~~due ~~ended~~from ~~October~~Asia ~~31,~~International ~~2024~~Securities Exchange Co., Ltd. represented a prepayment for security purchase. However the ~~Company~~transaction ~~did~~was ~~not~~subsequently ~~collected or~~canceled. ~~repaid~~The ~~loans~~Company tofully ~~related~~collect ~~parties~~the prepayments.

For the three months ended October 31, 2023, the Company repaid loans of $17,710 to Asia International Securities Exchange Co., Ltd. The loans were interest free and was repayable on demand. For the three months ended October 31, 2023, the Company collected loans of $20,000 from Huaya.13

3)ATIF HOLDINGS ~~Balances with related parties~~LIMITED

~~As of October 31, 2024 and July 31, 2024, the balances~~NOTES ~~due~~TO ~~from~~UNAUDITED ~~related~~CONDENSED ~~parties~~CONSOLIDATED ~~were~~FINANCIAL ~~as follows:~~STATEMENTS

	October 31, 2024		July 31, 2024
	(unaudited)
Accounts receivable:
Asia International Securities Exchange Co., Ltd.	$	200,000	$	200,000
	$	200,000	$	200,000
Other receivable:
Asia International Securities Exchange Co., Ltd. (a)	$	900,000	$	900,000
	$	900,000	$	900,000

NOTE 11 – TAXES

a) The Company ~~balance~~is ~~due~~subject ~~from~~to ~~Asia~~income ~~International~~taxes ~~Securities~~on ~~Exchange~~an ~~Co.,~~entity ~~Ltd.~~basis ~~represented~~on aincome ~~prepayment~~arising ofin ~~$900,000~~or ~~for~~derived ~~security~~from ~~purchase. However~~ the ~~transaction~~tax ~~was~~jurisdiction ~~subsequently~~in ~~canceled.~~which ~~The~~each ~~Company~~entity is ~~fully collect the prepayments as of the date of this report~~domiciled.

15British Virgin Islands

Under the current laws of the British Virgin Islands, the Company and ATIF ~~HOLDINGS~~Investment ~~LIMITED~~are not subject to tax on income or capital gains in the British Virgin Islands. Additionally, upon payments of dividends to the shareholders, no British Virgin Islands withholding tax will be imposed.

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~USA

~~NOTE~~For 11the –US ~~TAXES~~jurisdiction, ATIF Inc., ATIF BC, ATIF BM are subject to federal and state income taxes on its business operations. The federal tax rate is 21% and state tax rate is 8.84%. ATIF BD has Nil State coporation tax, but franchise tax instead. The Company also evaluated the impact from the recent tax reforms in the United States, including the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and Health and Economic Recovery Omnibus Emergency Solutions Act (“HERO Act”), which both were passed in 2020, no material impact on the Company is expected based on the analysis. The Company will continue to monitor the potential impact going forward.

~~The~~For the ~~Company~~three isand ~~subject~~six tomonths ~~income~~ended ~~taxes~~January on31, an2025 ~~entity basis~~and on2024, ~~income~~the ~~arising~~Company indid ornot ~~derived~~incur ~~from~~income ~~the~~ tax ~~jurisdiction in which each entity is domiciled~~expenses.

~~British~~The Company’s ~~Virgin~~deferred ~~Islands~~tax assets primarily derived from the net operating loss (“NOL”). The Company periodically evaluates the likelihood of the realization of deferred tax assets, and reduces the carrying amount of the deferred tax assets by a valuation allowance to the extent it believes a portion or all of the deferred tax assets will not be realized. The Company considers many factors when assessing the likelihood of future realization of the deferred tax assets, including its recent cumulative earnings experience, expectation of future income, the carry forward periods available for tax reporting purposes, and other relevant factors. As of January 31, 2025 and July 31, 2024, management believes that the realization of the deferred tax assets appears to be uncertain and may not be realizable in the near future. Therefore, a 100% valuation allowance has been provided against the deferred tax assets.

~~Under the current laws of the British Virgin Islands,~~Uncertain ~~the Company and ATIF Investment are not subject to~~ tax ~~on income or capital gains in the British Virgin Islands. Additionally, upon payments of dividends to the shareholders, no British Virgin Islands withholding tax will be imposed.~~positions

~~USA~~The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. Interest and penalties related to uncertain tax positions are recognized and recorded as necessary in the provision for income taxes. In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. There were no uncertain tax positions as of January 31, 2025 and July 31, 2024 and the Company does not believe that its unrecognized tax benefits will change over the next twelve months.

For the US jurisdiction, ATIF Inc., ATIF BC, ATIF BM, ATIF BD are subject to federal and state income taxes on its business operations. The federal tax rate is 21% and state tax rate is 8.84%. The Company also evaluated the impact from the recent tax reforms in the United States, including the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and Health and Economic Recovery Omnibus Emergency Solutions Act (“HERO Act”), which both were passed in 2020, no material impact on the Company is expected based on the analysis. The Company will continue to monitor the potential impact going forward. 14

~~For the three months ended October 31, 2024 and 2023, the Company did~~ATIF ~~not~~HOLDINGS ~~incur income tax expenses.~~LIMITED

~~The Company’s deferred tax assets primarily~~NOTES ~~derived~~TO ~~from~~UNAUDITED ~~the~~CONDENSED ~~net~~CONSOLIDATED ~~operating~~FINANCIAL loss (“NOL”). The Company periodically evaluates the likelihood of the realization of deferred tax assets, and reduces the carrying amount of the deferred tax assets by a valuation allowance to the extent it believes a portion or all of the deferred tax assets will not be realized. The Company considers many factors when assessing the likelihood of future realization of the deferred tax assets, including its recent cumulative earnings experience, expectation of future income, the carry forward periods available for tax reporting purposes, and other relevant factors. As of October 31, 2024 and July 31, 2024, management believes that the realization of the deferred tax assets appears to be uncertain and may not be realizable in the near future. Therefore, a 100% valuation allowance has been provided against the deferred tax assets.STATEMENTS

~~Uncertain~~NOTE ~~tax~~12 – ~~positions~~CONTIGENCIES

~~The Company accounts for uncertainty in income taxes~~From ~~using~~time ~~a two-step approach~~ to ~~recognizing~~time, ~~and~~the ~~measuring~~Company ~~uncertain~~is ~~tax~~a ~~positions.~~party ~~The first step is~~ to ~~evaluate~~various ~~the~~legal ~~tax~~actions ~~position~~arising ~~for~~in ~~recognition by determining if~~ the ~~weight~~ordinary ofcourse ~~available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution~~ of ~~related appeals or litigation processes, if any~~business. The ~~second~~Company ~~step~~accrues iscosts ~~to measure the tax benefit as the largest~~associated ~~amount~~with ~~that~~these ismatters ~~more~~when ~~than~~they ~~50%~~become ~~likely~~probable ~~of being realized upon settlement. Interest~~ and ~~penalties related to uncertain tax positions are recognized and recorded as necessary in~~ the ~~provision~~amount ~~for~~can ~~income~~be ~~taxes.~~reasonably ~~In the case of transfer pricing issues, the statute of limitation is ten years~~estimated. ~~There~~Legal iscosts noincurred ~~statute of limitation~~ in ~~the~~connection ~~case~~with ofloss contingencies ~~tax~~are ~~evasion.~~expensed ~~There were no uncertain tax positions~~ as ~~of October 31, 2024 and July 31, 2024 and the Company does not believe that its unrecognized tax benefits will change over the next twelve months~~incurred.

16Pending Legal Proceeding with Boustead Securities, LLC (“Boustead”)

~~ATIF~~On May ~~HOLDINGS~~14, ~~LIMITED~~2020, Boustead filed a lawsuit against the Company and LGC for breaching the underwriting agreement Boustead had with each of the Company and LGC, in which Boustead was separately engaged as the exclusive financial advisor to provide financial advisory services to the Company and LGC.

~~NOTES~~Boustead’s Complaint TOalleges ~~UNAUDITED~~four ~~CONDENSED~~causes ~~CONSOLIDATED~~of ~~FINANCIAL~~action against the Company, including breach of contract; breach of the implied covenant of good faith ~~STATEMENTS~~and fair dealing; tortious interference with business relationships and quantum meruit.

~~NOTE~~On October 6, 2020, ATIF filed a motion to dismiss Boustead’s Complaint pursuant to Federal Rule of Civil Procedure 12(b)(6) –and ~~CONTIGENCIES~~ 12(b)(5). On October 9, 2020, the United States District Court for the Southern District of New York directed Boustead to respond to the motion or amend its Complaint by November 10, 2020. Boustead opted to amend its complaint and filed the amended complaint on November 10, 2020. Boustead’s amended complaint asserts the same four causes of action against ATIF and LGC as its original complaint. The Company filed another motion to dismiss Boustead’s amended complaint on December 8, 2020.

~~From~~On August ~~time~~25, 2021, the United States District Court for the Southern District of New York granted ATIF’s motion to ~~time~~dismiss Boustead’s first amended complaint. In its order and opinion, the ~~Company~~United isStates aDistrict ~~party~~Court for the Southern District of New York allowed Boustead to ~~various~~move for leave to amend its causes of action against ATIF as to breach of contract and tortious interference with business relationships, ~~legal~~but ~~actions~~not ~~arising~~breach inof the ~~ordinary~~implied ~~course~~covenant of ~~business~~good faith and fair dealing and quantum meruit. ~~The~~On ~~Company~~November ~~accrues~~4, ~~costs~~2021, ~~associated~~Boustead ~~with~~filed ~~these~~a ~~matters~~motion seeking ~~when~~leave ~~they~~to ~~become~~file ~~probable~~a second amended complaint to amend its cause of action for Breach of Contract. The Court granted Boustead’s motion for leave and Boustead filed the ~~amount~~second ~~can~~amended becomplaint ~~reasonably~~on ~~estimated.~~December ~~Legal~~28, ~~costs~~2021 ~~incurred~~alleging only breach of contract and dropping all other causes of action alleged in ~~connection~~the ~~with~~original ~~loss~~complaint. ~~contingencies~~On ~~are~~January ~~expensed~~18, as2022, ~~incurred~~the Company filed a motion to dismiss Boustead’s second amended complaint. Boustead filed its opposition on February 1, 2022 and the Company replied on February 8, 2022.

~~Pending~~On July ~~Legal~~6, ~~Proceeding~~2022, ~~with~~the ~~Boustead~~Court ~~Securities~~denied our motion to dismiss the second amended complaint. Thereafter, on August 3, 2022, the Company filed a ~~LLC~~motion (“to compel arbitration of Boustead”)’s claims in California. Briefing on the Company’s motion to compel concluded on August 23, 2022. Since the agreement between ATIF and Boustead contains a valid arbitration clause that applies to Boustead’s breach of contract claim, and the parties have not engaged in discovery, on February 14, 2023, the Court ordered that ATIF’s motion to compel arbitration is granted and this case is stayed pending arbitration.

On March ~~May 14~~10, ~~2020~~2023, Boustead, filed aDemand ~~lawsuit~~ for Arbitration against ATIF (the ~~Company~~Respondent) before JAMS in California and ~~LGC~~the assigned JAMS case Ref. No. is 5220002783. On May 25, 2023, ATIF filed its answer to deny Boustead’s Demand for ~~breaching~~Arbitration, which was unsuccessful and the ~~underwriting~~arbitration ~~agreement~~process was initiated. The arbitrator ordered a motion to be filed by Boustead ~~had~~for ~~with~~a ~~each~~determination of contact interpretation, prior to extensive discovery into issues such as the ~~Company~~alleged merits and ~~LGC~~damages, inand ~~which~~to determine whether the contract interpretation should allow the matter to further proceed. Boustead had filed the Motion for Contract Interpretation Determination. ATIF filed its opposition to that Motion on October 16, 2023. The hearing on the motion was ~~separately~~held ~~engaged~~on asNovember 8, 2023, during which the ~~exclusive~~arbitrator ~~financial~~extended ~~advisor~~the hearing to ~~provide~~February ~~financial~~29, ~~advisory~~2024. ~~services~~The arbitrator also established December 15, 2023, as the deadline for Boustead to submit its reply regarding the contract interpretation issues raised by the Company. ~~and~~Simultaneously, ~~LGC~~the Company was granted until February 12, 2024, to present its response brief.

Boustead’s Complaint alleges four causes of action against the Company, including breach of contract; breach of the implied covenant of good faith and fair dealing; tortious interference with business relationships and quantum meruit.15

~~On October 6, 2020,~~ ATIF ~~filed a motion to dismiss~~ ~~Boustead’s~~HOLDINGS Complaint pursuant to Federal Rule of Civil Procedure 12(b)(6) and 12(b)(5). On October 9, 2020, the United States District Court for the Southern District of New York directed Boustead to respond to the motion or amend its Complaint by November 10, 2020. Boustead opted to amend its complaint and filed the amended complaint on November 10, 2020. Boustead’s amended complaint asserts the same four causes of action against ATIF and LGC as its original complaint. The Company filed another motion to dismiss Boustead’s amended complaint on December 8, 2020.LIMITED

~~On August 25, 2021, the United States District~~NOTES ~~Court~~TO ~~for~~UNAUDITED ~~the~~CONDENSED ~~Southern~~CONSOLIDATED ~~District~~FINANCIAL of New York granted ATIF’s motion to dismiss Boustead’s first amended complaint. In its order and opinion, the United States District Court for the Southern District of New York allowed Boustead to move for leave to amend its causes of action against ATIF as to breach of contract and tortious interference with business relationships, but not breach of the implied covenant of good faith and fair dealing and quantum meruit. On November 4, 2021, Boustead filed a motion seeking leave to file a second amended complaint to amend its cause of action for Breach of Contract. The Court granted Boustead’s motion for leave and Boustead filed the second amended complaint on December 28, 2021 alleging only breach of contract and dropping all other causes of action alleged in the original complaint. On January 18, 2022, the Company filed a motion to dismiss Boustead’s second amended complaint. Boustead filed its opposition on February 1, 2022 and the Company replied on February 8, 2022.STATEMENTS

~~On July 6, 2022, the Court denied our motion to~~NOTE ~~dismiss~~12 ~~the~~– ~~second~~CONTIGENCIES amended complaint. Thereafter, on August 3, 2022, the Company filed a motion to compel arbitration of Boustead’s claims in California. Briefing on the Company’s motion to compel concluded on August 23, 2022. Since the agreement between ATIF and Boustead contains a valid arbitration clause that applies to Boustead’s breach of contract claim, and the parties have not engaged in discovery, on February 14, 2023, the Court ordered that ATIF’s motion to compel arbitration is granted and this case is stayed pending arbitration.(continued)

On September ~~March 10~~24, ~~2023~~2024, ~~Boustead, filed Demand for Arbitration against ATIF (~~the ~~Respondent)~~Company ~~before JAMS in California~~ and ~~the~~Boustead ~~assigned~~entered ~~JAMS~~into ~~case~~a ~~Ref.~~settlement ~~No. is 5220002783. On May 25~~agreement, ~~2023, ATIF~~pursuant ~~filed its answer~~ to ~~deny Boustead’s Demand for Arbitration,~~ which ~~was unsuccessful and~~ the ~~arbitration~~Company ~~process~~shall ~~was~~pay ~~initiated. The arbitrator ordered~~ a ~~motion~~total ~~to be filed by Boustead for a determination~~ amount of ~~contact interpretation~~$1, ~~prior to extensive discovery into issues such as the alleged merits and damages~~000,000 ~~and~~ to ~~determine whether the contract interpretation should allow the matter to further proceed.~~ Boustead ~~had filed the Motion for Contract Interpretation Determination~~. ~~ATIF~~The ~~filed~~payment ~~its~~is ~~opposition~~made toin ~~that~~three ~~Motion on October 16~~instalments, ~~2023. The hearing on~~ the ~~motion~~first ~~was~~instalment ~~held~~of on$250,000 ~~November~~is 8,payable ~~2023,~~upon ~~during~~execution ~~which~~of the settlement ~~arbitrator~~agreement, ~~extended~~ the ~~hearing~~second toinstalment ~~February~~of 29$500,000 ~~2024. The~~is ~~arbitrator~~payable ~~also~~before ~~established~~March ~~December 15~~1, ~~2023~~2025, asand the ~~deadline~~final ~~for~~instalment ~~Boustead~~of to$250,000 ~~submit~~is ~~its reply regarding the contract interpretation~~payable ~~issues~~before ~~raised~~December ~~by the Company. Simultaneously~~31, ~~the Company was granted until February 12, 2024, to present its response brief~~2025.

~~On September 24, 2024, the Company and Boustead entered into a settlement~~Pending ~~agreement,~~Legal ~~pursuant~~Proceeding towith ~~which the Company shall pay a total amount of $1,000,000 to Boustead~~J.P ~~The~~Morgan ~~payment~~Securities isLLC made in three instalments, the first instalment of $250,000 is payable upon execution of the settlement agreement, the second instalment of $500,000 is payable before March 1, 2025, and the final instalment of $250,000 is payable before December 31, 2025.(“JPMS”)

~~Pending~~On December ~~Legal~~22, ~~Proceeding~~2023, ~~with~~ J.P Morgan Securities LLC (“JPMS”) filed a lawsuit in the Superior Court of California, County of Orange, bearing Case Number 30-2023-01369978-CU-FR-CJC against ATIF Holdings Limited (“Holdings”), ATIF Inc., ATIF-1 GP, LLC (ATIF-1 GP”), and two officers of Holdings and ATIF Inc., Jun Liu and Zhiliang “Ian” Zhou, alleging and asserting that it is entitled to recover $5,064,160 in damages plus interest and attorneys’ fees relating to a stock transaction by ATIF-1 GP.

OnThe parties ~~December~~have 22agreed to attempt to mediate the dispute before proceeding to litigation. A mediation was held on May 6, ~~2023~~2024, Jbut the parties could not come to a resolution.P ~~Morgan~~The ~~Securities~~Defendants’ ~~LLC~~time ~~(“JPMS”)~~to respond to the lawsuit was May 20, 2024. On May 15, 2024, the Defendants filed a ~~lawsuit~~Petition inwith the Superior Court of California, ~~County~~seeking ofto ~~Orange,~~compel ~~bearing~~arbitration ~~Case~~under ~~Number~~the ~~30-2023-01369978-CU-FR-CJC~~operative ~~against~~agreements ~~ATIF~~and ~~Holdings~~stay ~~Limited~~the ~~(“Holdings”),~~underlying ~~ATIF~~State ~~Inc~~Court action., ~~ATIF-1~~On GPor about August 16, ~~LLC~~2024, (the parties agreed that JPMS and ATIF-1 GP”), ~~and~~LLC ~~two~~would ~~officers~~submit ofany ~~Holdings~~disputes between ~~and~~the ~~ATIF~~two ~~Inc.~~of them only, ~~Jun~~to ~~Liu~~FINRA arbitration, and ~~Zhiliang~~ ~~“Ian”~~stay ~~Zhou,~~the ~~alleging~~California ~~and~~state ~~asserting~~court ~~that~~case itpending issuch ~~entitled~~arbitration. toAt ~~recover~~this $5time,~~064,160 in~~ the ~~damages~~management ~~plus~~is ~~interest~~still ~~and~~in ~~attorneys’ fees~~the ~~relating~~process toof aevaluating ~~stock~~the ~~transaction~~claims byand ~~ATIF-1 GP~~defenses.

~~The parties have agreed to attempt to mediate the~~On ~~dispute~~January ~~before proceeding to litigation. A mediation was held on May 6~~22, ~~2024~~2025, ~~but~~Jun ~~the~~Liu ~~parties~~resigned ~~could~~from ~~not~~his ~~come~~position toas ~~a resolution. The Defendants’ time to respond to~~ the ~~lawsuit~~Chief ~~was~~Executive ~~May 20~~Officer, ~~2024.~~director Onand ~~May~~Chairman ~~15,~~of ~~2024,~~ the ~~Defendants~~board ~~filed a Petition with the Superior Court~~ of ~~California seeking to compel arbitration under the operative agreements and stay the underlying State Court action. On or about~~directors ~~August 16, 2024, the parties agreed that JPMS and ATIF-1 GP, LLC would submit any disputes between the two~~ of ~~them only, to FINRA arbitration, and stay~~ the ~~California state court case pending such arbitration. At this time~~“Company, ~~the~~effective ~~management is still in the process of evaluating the claims and defenses~~immediately.

17NOTE 13 – SUBSEQUENT EVENTS

~~ITEM~~On February 4, 2025, the Company entered into certain securities purchase agreement with certain non-affiliated institutional investor (the “Purchaser”) pursuant to which the Company agreed to sell (1) 1,580,000 ordinary shares, par value $0.001 per share, and (2) certain pre-funded warrants to purchase up to 887,553 Ordinary Shares (the “Pre-Funded Warrants”) in a registered direct offering, and (3) in a concurrent private placement, restricted warrants to purchase an aggregate of up to 2,467,553 Ordinary Shares, for aggregate gross proceeds of approximately $2.5 ~~MANAGEMENT’S~~million. ~~DISCUSSION~~Each ~~AND~~Pre-Funded ~~ANALYSIS~~Warrant OFis ~~FINANCIAL~~exercisable ~~CONDITION~~for ~~AND~~one ~~RESULTS~~Ordinary OFShare ~~OPERATIONS~~at an exercise price of USS0.01. The Company are offering the Pre-Funded Warrants to the Purchaser whose purchase of the Ordinary Shares in this offering would otherwise result in such purchase, together with its affiliates and certain related parties, beneficially owning more than 4.99% (or, at the election of the purchase, 9.99%) of outstanding Ordinary Shares immediately following the consummation of this offering. The Pre-Funded Warrants are exercisable immediately and may be exercised at any time until all of the Pre-Funded Warrants are exercised in full.

~~The following discussion and~~On ~~analysis~~February ~~should~~20, be2025, ~~read~~Yue ~~together~~Ming ~~with~~resigned ~~the~~from ~~Company’s~~her ~~annual~~positions ~~report~~as ~~on Form 10-K for~~ the ~~fiscal~~Chief ~~year~~Financial ~~ended~~Officer ~~July 31, 2024~~ and ~~the~~director ~~consolidated financial~~of ~~statements and notes included therein (collectively,~~ the ~~“2024~~board ~~Annual~~of ~~Report”),~~directors ~~as well as~~ the Company~~’s condensed~~, ~~consolidated~~effective ~~financial statements and the related notes included in this report~~immediately. ~~Pursuant~~Effective toFebruary ~~Instruction 2 to paragraph (b) of Item 303 of Regulation S-K promulgated by the SEC~~20, ~~in preparing this discussion and analysis~~2025, the ~~Company~~Board ~~has~~appointed ~~presumed~~Shibin ~~that~~Yu ~~readers~~as ~~have access to and have read~~ the ~~disclosure~~Chief ~~under~~Financial ~~the~~Officer ~~same~~of ~~heading contained in~~ the ~~2024~~Company ~~Annual Report. This discussion~~ and ~~analysis contains forward-looking~~director ~~statements.~~of ~~Please see~~ the ~~cautionary~~Board, ~~note~~to ~~regarding~~fill ~~these~~the ~~statements~~vacancy atcreated by the ~~beginning~~resignation of ~~this~~Yue ~~report~~Ming.

~~Business~~On March ~~Overview~~ 2, 2025, the Company entered into a lease agreement with Sat Hing Pat for a term of one year, securing office space with a monthly rental fee of $1000.

We offer financial consulting services to small and medium-sized enterprise customers in Asia and North America. Our goal is to become an international financial consulting company with clients and offices throughout Asia. Since our inception in 2015, the focus of our consulting business has been providing comprehensive going public consulting services designed to help SMEs become public companies on suitable markets and exchanges. 16

~~On January 4, 2021, we established~~ITEM ~~an office in California, USA, through our wholly owned subsidiary ATIF Inc~~2., aMANAGEMENT’S ~~California~~DISCUSSION ~~corporation,~~AND ~~and~~ANALYSIS ~~launched,~~OF inFINANCIAL ~~addition~~CONDITION toAND ~~our business~~RESULTS ~~consulting~~OF ~~services,~~OPERATIONS additional service models consisting of asset management, investment holding and media services to expand our business with a flexible business concept to achieve a goal of high growth revenue and strong profit growth.

~~Our~~The following discussion and analysis should be read together with the Company’s annual report on Form 10-K for the fiscal year ended July 31, 2024 and the consolidated financial ~~consulting~~statements ~~services~~ and notes included therein (collectively, the “2024 Annual Report”), as well as the Company’s condensed consolidated financial statements and the related notes included in this report. Pursuant to Instruction 2 to paragraph (b) of Item 303 of Regulation S-K promulgated by the SEC, in preparing this discussion and analysis, the Company has presumed that readers have access to and have read the disclosure under the same heading contained in the 2024 Annual Report. This discussion and analysis contains forward-looking statements. Please see the cautionary note regarding these statements at the beginning of this report.

~~We launched our consulting services~~Business in 2015. Our aim was to assist Chinese enterprises by filling the gaps and forming a bridge between PRC companies and overseas stock markets and exchanges. We have a team of qualified and experienced personnel with legal, regulatory, and language expertise in several jurisdictions outside the U.S. Our services were designed to help small and medium-sized enterprises (“SME”) in China achieve their goal of becoming public companies. In May 2022, we shifted our geographic focus from China to North America emphasizing on helping mid and small companies in North America become public companies on the U.S. capital markets. We would create a going public strategy for each client based on many factors of such client, including our assessment of the client’s financial and operational situations, market conditions, and the client’s business and financing requirements. Since our inception and up to the date of this report, we have successfully helped nine Chinese enterprises to be quoted on the U.S. OTC markets and are currently assisting our other clients in their respective going public efforts. Most of our current and past clients have been Chinese, U.S. and Mexican companies, and we plan to expand our operations to other Asian countries, such as Malaysia, Vietnam, and Singapore with continuing focus on the North American market in the coming years.Overview

~~For~~We ~~the~~offer ~~three~~financial ~~months ended October 31, 2024 and 2023, we provided~~ consulting services to ~~none~~small and ~~three~~medium-sized enterprise customers, ~~respectively,~~in ~~which primarily~~Asia ~~engaged~~and ~~the~~North ~~Company~~America. toOur ~~provide~~goal ~~consulting~~is ~~services relating~~ to ~~going~~become ~~public~~an international infinancial ~~the~~consulting UScompany ~~through~~with ~~IPO,~~clients ~~reverse~~and ~~merger~~offices ~~and acquisition~~throughout Asia. ~~From~~Since ~~April~~our ~~2022~~inception ~~through~~in 2015, the ~~date~~focus of ~~this~~our ~~report,~~consulting business ~~the~~has ~~Company~~been ~~entered~~providing ~~into~~comprehensive going public consulting ~~agreements~~services ~~with~~designed ~~nine customers, among~~to ~~which~~help ~~three~~SMEs ~~are~~become ~~based~~public incompanies ~~the~~on ~~North~~suitable markets ~~America~~and exchanges.

~~Our~~On January ~~total~~4, ~~revenue~~2021, ~~generated~~we ~~from~~established an office in California, USA, through our wholly owned subsidiary ATIF Inc., a California corporation, and launched, in addition to our business consulting services, ~~amounted~~additional toservice ~~$nil~~models consisting of asset management, investment holding and ~~approximately~~media ~~$0.1~~services ~~million~~to ~~for~~expand ~~the~~our ~~three~~business ~~months~~with ~~ended~~a ~~October~~flexible ~~31,~~business ~~2024~~concept to achieve a goal of high growth revenue and ~~2023,~~strong ~~respectively~~profit growth.

18Our financial consulting services

~~Key~~We launched ~~Factors~~our ~~that~~consulting ~~Affect~~services in 2015. Our aim was to assist Chinese enterprises by filling the gaps and forming a bridge between PRC companies and overseas stock markets and exchanges. We have a team of qualified and experienced personnel with legal, regulatory, and language expertise in several jurisdictions outside the U.S. Our services were designed to help small and medium-sized enterprises (“SME”) in China achieve their goal of becoming public companies. In May 2022, we shifted our ~~Business~~geographic focus from China to North America emphasizing on helping mid and small companies in North America become public companies on the U.S. capital markets. We would create a going public strategy for each client based on many factors of such client, including our assessment of the client’s financial and operational situations, market conditions, and the client’s business and financing requirements. Since our inception and up to the date of this report, we have successfully helped nine Chinese enterprises to be quoted on the U.S. OTC markets and are currently assisting our other clients in their respective going public efforts. Most of our current and past clients have been Chinese, U.S. and Mexican companies, and we plan to expand our operations to other Asian countries, such as Malaysia, Vietnam, and Singapore with continuing focus on the North American market in the coming years.

WeFor the ~~believe~~three ~~the~~and ~~following~~six ~~key~~months ~~factors~~ended January 31, 2025 and 2024, we provided consulting services to one customer, which primarily engaged the ~~may~~Company ~~affect~~to ~~our~~provide consulting services: relating to going public in the US through IPO, reverse merger and acquisition.

Our total ~~business~~revenue ~~success~~generated ~~depends~~from onconsulting ~~our~~services ~~ability~~amounted to ~~acquire~~$0.2 ~~customers~~million and approximately $25,000 for the three months ended January ~~effectively~~31, 2025 and 2024, respectively. Our total revenue generated from consulting services amounted to $0.2 million and approximately $0.2 million for the six months ended January 31, 2025 and 2024, respectively.

~~Our~~Key ~~customer acquisition channels~~Factors primarily include our sales and marketing campaigns and existing customer referrals. In order to acquire customers, we have made significant efforts in building mutually beneficial long-term relationships with local government, academic institutions, and local business associations. In addition, we also market our consulting services through social media, such as WeChat and Weibo. If any of our current customer acquisition channels becomes less effective, we are unable to continue to use any of these channels or we are not successful in using new channels, we may not be able to attract new customers in a cost-effective manner or convert potential customers into active customers or even lose our existing customers to our competitors. To the extent that ~~our~~Affect ~~current customer acquisition and retention efforts become less effective,~~ our ~~service revenue may be significantly impacted, which would have a significant adverse effect on our revenues, financial condition, and results of operations.~~Business

~~Our~~We believe ~~consulting~~the ~~business~~following ~~faces~~key ~~strong~~factors ~~market~~may ~~competition.~~affect our consulting services:

~~We are currently facing intense~~Our ~~market~~business ~~competition.~~success ~~Some~~depends ofon our current or potential competitors have significantly more financial, technical, marketing, and other resources than we do and may be able to devote greater resources to the development, promotion, and support of their customer acquisition and retention channels. In light of the low barriers to entry into the financial consulting industry, we expect more players to enter this market and increase the level of competition. Our ability to ~~differentiate~~acquire ~~our~~customers ~~services from other competitors will have a significant impact on our business growth in the future~~effectively.

Our customer acquisition channels primarily include our sales and marketing campaigns and existing customer referrals. In order to acquire customers, we have made significant efforts in building mutually beneficial long-term relationships with local government, academic institutions, and local business ~~depends~~associations. onIn addition, we also market our ~~ability~~consulting services through social media, such as WeChat and Weibo. If any of our current customer acquisition channels becomes less effective, we are unable to continue to use any of these channels or we are not successful in using new channels, we may not be able to attract new customers in a cost-effective manner or convert potential customers into active customers or even lose our existing customers to our competitors. To the extent that our current customer acquisition and ~~retain~~retention ~~key~~efforts ~~personnel~~become less effective, our service revenue may be significantly impacted, which would have a significant adverse effect on our revenues, financial condition, and results of operations.

We rely heavily on the expertise and leadership of our directors and officers to maintain our core competence. Under their leadership, we have been able to achieve rapid expansion and significant growth since our inception in 2015. As our business scope increases, we expect to continue to invest significant resources in hiring and retaining a deep talent pool of financial consultancy professionals. Our ability to sustain our growth will depend on our ability to attract qualified personnel and retain our current staff.17

19Our consulting business faces strong market competition.

~~Results~~We are currently facing intense market competition. Some of ~~Operations~~our current or potential competitors have significantly more financial, technical, marketing, and other resources than we do and may be able to devote greater resources to the development, promotion, and support of their customer acquisition and retention channels. In light of the low barriers to entry into the financial consulting industry, we expect more players to enter this market and increase the level of competition. Our ability to differentiate our services from other competitors will have a significant impact on our business growth in the future.

~~The following table summarizes~~Our ~~the~~business ~~results~~depends ofon our ~~operations~~ability ~~for~~to ~~the~~attract ~~three months ended October 31, 2024~~ and ~~2023,~~retain ~~respectively,~~key ~~and provides information regarding the dollar and percentage increase or (decrease) during such periods~~personnel.

	For the three months ended						Changes
	October 31, 2024			October 31, 2023			Amount Increase (Decrease)			Percentage Increase (Decrease)
Revenues	$	-		$	125,000		$	(125,000	)		(100	)%
Operating expenses:
Selling expenses		72,000			72,000			-			0	%
General and administrative expenses		449,109			709,779			(260,670	)		(37	)%
Total operating expenses		521,109			781,779			(260,670	)		(33	)%
Loss from operations		(521,109	)		(656,779	)		(135,670	)		(21	)%
Other income (expenses):
Interest expenses, net		(18	)		-			18			100	%
Other income, net		5,895			140,720			(134,825	)		(96	)%
Gain (loss) from investment in trading securities		148,158			(109,404	)		(257,562	)		(235	)%
Total other income, net		154,035			31,316			122,719			392	%
Loss before income taxes		(367,074	)		(625,463	)		(258,389	)		(41	)%
Income tax provision		-			-			-			0	%
Net loss	$	(367,074	)	$	(625,463	)	$	(258,389	)		(41	)%

~~Revenues. Our~~Results ~~total~~of ~~revenue decreased by approximately $0.1 million, or 100%, from approximately $0.1 million for the three months ended October 31, 2023, to $nil in for the three months ended October 31, 2024.~~Operations

~~For the three months ended~~Comparison ~~October~~of ~~31,~~Operation ~~2024,~~Results wefor ~~did not provided services to customers and did not recognize revenues. For~~ the ~~three~~Three ~~months~~Months ended ~~October~~January 31, ~~2023, we~~2025 ~~provided certain IPO assistance services to three customers~~ and ~~recognized revenues of $0.1 million.~~2024

~~General and administrative~~The ~~expenses.~~following ~~Our~~table ~~general~~summarizes ~~and~~the ~~administrative~~results ~~expenses~~of ~~decreased~~our byoperations ~~approximately $0.3 million, or 37%, from approximately $0.7 million~~ for the three months ended ~~October~~January 31, ~~2023,~~2025 toand ~~approximately~~2024, ~~$0.4~~respectively, ~~million~~and ~~for~~provides information regarding the ~~three~~dollar ~~months~~and ~~ended~~percentage ~~October~~increase ~~31,~~or ~~2024~~(decrease) during such periods.

	For the three months ended January 31,						Changes
	2025			2024			Amount Increase (Decrease)			Percentage Increase (Decrease)

Revenues		200,000			25,000			175,000			700	%

Operating expenses
Selling expenses		(48,000	)		(93,000	)		45,000			(48	)%
General and administrative expenses		(502,797	)		(479,516	)		(23,281	)		5	%
Total operating expenses		(550,797	)		(572,516	)		21,719			(4	)%

Loss from operations		(350,797	)		(547,516	)		196,719			(36	)%

Other (expenses) income
Interest (expenses) income		3			23			(20	)		(87	)%
Other (expense) income		(265,941	)		59,185			(325,126	)		(549	)%
(Loss) gain from investment in trading securities		(1,286,722	)		80,670			(1,367,392	)		(1695	)%
Total other (expense) income		(1,552,660	)		139,878			(1,692,538	)		(1210	)%

Loss before income taxes		(1,903,457	)		(407,638	)		(1,495,819	)		367	%

Income tax expenses		-			-			-
Net loss		(1,903,457	)		(407,638	)		(1,495,819	)		367	%

Revenues. Our ~~general~~total ~~and~~revenue ~~administrative expenses~~increased ~~primarily~~by ~~consisted~~approximately of$0.2 ~~salary and welfare expenses of management and administrative team~~million, ~~professional~~or ~~expenses~~700%, ~~office~~from ~~expenses~~$25, ~~operating~~000 ~~lease~~for ~~expenses.~~the ~~The~~three ~~decrease~~months inended ~~general~~January ~~and~~31, ~~administrative expenses was primarily due~~ 2024, to ~~a decrease of approximately~~ $0.2 million in ~~payroll~~for ~~expenses~~the ~~because~~three wemonths ~~adjusted~~ended ~~monthly~~January ~~payroll expenses to Mr. Jun Liu from $20~~31,~~000~~ ~~to $1 since February 2024, and a decrease of approximately $0~~2025.~~1 million in office expenses.~~

~~Gain (loss) from investment~~For inthe ~~trading~~three ~~securities.~~months ~~Loss~~ended ~~from~~January ~~investment~~31, in2025, ~~trading~~we ~~securities~~provided ~~represented~~IPO ~~fair~~assistance ~~value~~services ~~changes~~to ~~from~~one ~~investment~~customer inand ~~trading~~recognized ~~securities, which~~revenues ~~was~~of ~~measured at market price~~$0.2 million. For the three months ended ~~October~~January 31, 2024 ~~and 2023~~, we ~~recorded~~provided anIPO ~~investment~~assistance ~~gain~~services ofto ~~approximately $0.1~~one ~~million~~customer and anrecognized ~~investment~~revenues ~~loss~~ of ~~approximately~~ $~~0.1 million~~25, ~~respectively~~000.

Income taxes. We are incorporated in the British Virgin Islands. Under the current laws of the British Virgin Islands, we are not subject to tax on income or capital gains in the British Virgin Islands. Additionally, upon payments of dividends to the shareholders, no British Virgin Islands withholding tax will be imposed.18

~~ATIF Inc, ATIF BD, ATIF BC and~~Selling ~~ATIF BM were established in the U~~expenses.S ~~and~~Our ~~are~~selling ~~subject~~expenses toprimarily ~~federal~~consisted ~~and~~of ~~state~~advertising ~~income taxes on its business operations. The federal tax rate is 21%~~ and ~~state~~promotion ~~tax rate is 8~~expenses.~~84%.~~ WeFor ~~also evaluated~~ the ~~impact~~three ~~from~~months ~~the~~ended ~~recent tax reforms in the United States, including the Coronavirus~~January ~~Aid~~31, ~~Relief~~2025, ~~and~~our ~~Economic~~selling ~~Security~~expenses ~~Act~~was ~~(“CARES~~$48,000, ~~Act”)~~representing ~~and~~a ~~Health~~decrease ~~and~~of ~~Economic~~$45,000, ~~Recovery~~or ~~Omnibus~~48%, ~~Emergency~~from ~~Solutions Act (“HERO Act”)~~$93,000 ~~which~~for ~~were~~the ~~both~~three ~~passed~~months inended ~~2020~~January 31, No2024. ~~material~~The ~~impact~~decrease onwas ~~the~~primarily ~~ATIF~~due USto isa ~~expected~~decrease ~~based~~of onamortization ~~our~~expenses ~~analysis.~~of We$45,000 ~~will~~for ~~continue~~TV ~~to monitor~~promotion ~~the potential impact going forward~~videos.

~~For~~General and administrative expenses. Our general and administrative expenses primarily consisted of salary and welfare expenses of management and administrative team, professional expenses, office expenses, operating lease expenses. Our general and administrative expenses increased by $23,281, or 5%, from approximately $0.5 million for the three months ended ~~October~~ January 31, 2024, ~~and~~to ~~2023,~~$0.5 wemillion ~~did~~for ~~not~~the ~~recognized~~three ~~income~~months ended ~~tax~~January ~~expenses~~31, 2025.

~~Net~~Loss (gain) ~~income~~from investment in trading securities. Loss (~~loss~~gain). from investment in trading securities represented fair value changes Asfrom ainvestment ~~result~~in oftrading ~~foregoing~~securities, ~~net~~which ~~loss~~ was ~~approximately~~measured ~~$0.4~~at ~~million~~market ~~for~~price. For the three months ended ~~October~~January 31, 2025 and 2024, awe ~~decrease~~recorded an investment loss of approximately $01.23 million ~~from~~and ~~net~~an ~~loss~~investment gain of approximately $0.61 million ~~for the three months ended October 31~~, ~~2023~~respectively.

~~Liquidity~~Income taxes. ~~and~~We ~~Capital~~are ~~Resources~~incorporated in the British Virgin Islands. Under the current laws of the British Virgin Islands, we are not subject to tax on income or capital gains in the British Virgin Islands. Additionally, upon payments of dividends to the shareholders, no British Virgin Islands withholding tax will be imposed.

ToATIF Inc, ~~date~~ATIF BD, weATIF ~~have~~BC ~~financed~~and ~~our operations~~ATIF ~~primarily~~BM ~~through~~were ~~cash~~established ~~flows~~in ~~from~~the ~~operations,~~U.S ~~working~~and ~~capital~~are ~~loans~~subject ~~from~~to ~~our~~federal ~~major~~and ~~shareholders,~~state ~~proceeds~~income ~~from~~taxes ~~our~~on ~~initial~~their business ~~public~~operations. ~~offering,~~The ~~and~~federal ~~equity~~tax ~~financing~~rate ~~through~~is ~~public~~21% ~~offerings~~and ofstate ~~our~~tax ~~securities~~rate is 8.84%. WeATIF ~~plan~~BD, toa ~~support~~corporation ~~our~~registered ~~future~~in ~~operations~~Delaware ~~primarily~~is ~~from~~subject to a franchise ~~cash~~tax. ~~generated~~We also evaluated the impact from ~~our~~the ~~operations~~recent ~~and~~tax ~~cash~~reforms onin ~~hand.~~the United ~~However~~States, including the ~~Company~~Coronavirus ~~may~~Aid, ~~need~~Relief, toand ~~raise~~Economic ~~the~~Security ~~cash~~Act ~~flow~~(“CARES ~~from~~Act”) ~~related~~and ~~parties,~~Health and ~~there~~Economic isRecovery noOmnibus ~~assurance~~Emergency ~~that~~Solutions ~~the~~Act ~~Company~~(“HERO ~~will~~Act”), bewhich ~~able~~were toboth ~~obtain~~passed ~~funds~~in 2020, No material impact on ~~commercially~~the ~~acceptable~~ATIF ~~terms,~~US is ifexpected atbased ~~all~~on our analysis. We will continue to monitor the potential impact going forward.

~~Liquidity~~For the three months ended January 31, 2025 and ~~Going~~2024, ~~concern~~we did not recognize income tax expenses.

~~For the three months ended~~Net ~~October~~income ~~31,~~(loss). ~~2024~~As ~~and 2023, the Company reported~~ a ~~net~~result ~~loss~~ of ~~approximately $0.4 million and $0.6 million~~foregoing, ~~respectively,~~net ~~and~~loss ~~operating cash~~was ~~outflows~~ approximately $01.89 million ~~and~~for ~~operating cash inflows of approximately $0.2 million. In assessing~~ the ~~Company’s~~three ~~ability to~~months ~~continue~~ended asJanuary ~~a going concern~~31, ~~the Company monitors and analyzes its cash and its ability to generate sufficient cash flow in the future~~2025, toan ~~support~~increase ~~its operating and capital expenditure commitments. Because~~ of aloss ~~history~~ of ~~net~~approximately ~~losses~~$1.5 ~~from~~million ~~operations, cash out~~ from ~~operating activities,~~net ~~and~~loss ~~the requirement~~ of ~~additional~~$0.4 ~~capital~~million tofor ~~fund~~the ~~our~~three ~~current~~months ~~operating~~ended ~~plan~~January ~~at October~~ 31, 2024~~, these factors indicate the existence of an uncertainty that raises substantial doubt about the Company’s ability to continue as a going concern~~.

~~As of October 31, 2024, the~~Comparison ~~Company had cash~~ of ~~approximately~~Operation ~~$0.5~~Results ~~million,~~for short-term investments in trading securities of approximately $4.2 million, due from a related party of $0.9 million and accounts receivables of $0.2 million due from a related party, which were highly liquid. On the ~~other hand,~~Six ~~the~~Months ~~Company~~ended ~~had~~January current liabilities of approximately $0.6 million. The Company’s cash and short-term investments in trading securities could well cover the current liabilities. The Company’s ability to continue as a going concern is dependent on management’s ability to successfully execute its business plan31, ~~which~~2025 ~~includes increasing revenue while controlling operating cost~~ and ~~expenses to generate positive operating cash flows and obtain financing from outside sources.~~2024

The ~~unaudited condensed consolidated~~ ~~financial~~following ~~statements have~~table ~~been~~summarizes ~~prepared on a going concern basis, which contemplates~~ the ~~realization~~results of ~~assets~~our ~~and~~operations ~~satisfaction~~for ~~of liabilities in~~ the ~~ordinary~~six ~~course~~months ofended ~~business.~~January ~~The~~31, ~~financial~~2025 ~~statements~~and do2024, ~~not~~respectively, ~~include~~and ~~any adjustments relating to the recoverability~~provides ~~and~~information ~~classification~~regarding ~~of recorded asset amounts or~~ the ~~amounts~~dollar and ~~classification~~percentage ofincrease ~~liabilities~~or ~~that~~(decrease) ~~might~~during ~~result~~such ~~from the outcome of the uncertainties described above~~periods.

	For the six months ended January 31,						Changes
	2025			2024			Amount Increase (Decrease)			Percentage Increase (Decrease)

Revenues		200,000			150,000			50,000			33	%

Operating expenses
Selling expenses		(120,000	)		(165,000	)		45,000			(27	)%
General and administrative expenses		(951,906	)		(1,189,295	)		237,389			(20	)%
Total operating expenses		(1,071,906	)		(1,354,295	)		282,389			(21	)%

Loss from operations		(871,906	)		(1,204,295	)		332,389			(28	)%

Other income (expenses)
Interest (expenses) income		(15	)		23			(38	)		(165	)%
Other (expense) income		(260,046	)		199,905			(459,951	)		(230	)%
Loss from investment in trading securities		(1,138,564	)		(28,734	)		(1,109,830	)		3862	%
Total other (expense) income		(1,398,625	)		171,194			(1,569,819	)		(917	)%

Loss before income taxes		(2,270,531	)		(1,033,101	)		(1,237,430	)		120	%

Income tax expenses		-			-			-
Net loss		(2,270,531	)		(1,033,101	)		(1,237,430	)		120	%

~~We have not declared nor paid any cash dividends to our shareholders. We do not plan to pay any dividends out of our restricted net assets as of October 31, 2024.~~19

~~Cash~~Revenues. Our ~~Flow~~total revenue increased by $50,000 from approximately $0.2 million for the six months ended January 31, 2024, to $0.2 million in six months ended January 31, 2025.

~~The~~During the ~~following~~six ~~table~~months ~~sets~~ended ~~forth~~January ~~summary~~31, 2025, we provided IPO assistance services to one customer and recognized revenues of ~~our~~$0.2 ~~cash~~million. For ~~flows~~the ~~for~~six ~~the~~months ~~periods~~ended ~~indicated:~~January 31, 2024, we provided certain IPO assistance services to four customers and recognized revenues of $150,000.

	For the Three Months Ended October 31,
	2024			2023
Net cash (used in) provided by operating activities		(800,628	)		195,353
Net cash provided by (used in) investing activities		9,016			(440,150	)
Net decrease in cash		(791,612	)		(244,797	)
Cash, beginning of period		1,249,376			606,022
Cash, end of period	$	457,764		$	361,225

Selling expenses. Our selling expenses primarily consisted of advertising and promotion expenses. For the six months ended January 31, 2025, our selling expenses was $120,000, representing a decrease of $45,000, or 27%, from $165,000 for the six months ended January 31, 2024. The decrease was primarily due to a decrease of amortization expenses for TV promotion videos.

~~Operating~~As a ~~Activities~~percentage of sales, our absolute amount of selling expenses were 60% and 110% of our total revenues for the six months ended January 31, 2025 and 2024, respectively.

~~Net~~General and ~~cash~~administrative ~~used~~expenses. inOur ~~operating activities~~general ~~was~~and ~~approximately~~administrative ~~$0.8~~expenses ~~million~~primarily inconsisted ~~three~~of ~~months~~salary ~~ended~~and ~~October~~welfare ~~31,~~expenses ~~2024.~~of management ~~Net~~and ~~cash~~administrative ~~used~~team, inoffice expenses, operating ~~activities~~lease ~~was~~expenses, ~~primarily comprised~~and ofprofessional ~~net~~fees ~~loss~~such ofas ~~approximately~~audit $0and legal fees.4 Our ~~million,~~general ~~adjusted~~and ~~for~~administrative ~~gain~~expenses ofdecreased from approximately $0.1.2 million ~~from~~in ~~investment~~the insix ~~trading~~months ~~securities~~ended January 31, 2024 to ~~and~~approximately ~~net~~$1.0 ~~changes~~million in ~~our~~the ~~operating~~same ~~assets~~period ~~and~~of ~~liabilities~~2025, ~~principally~~which ~~comprising~~was ofprimarily adue to decrease of ~~approximately~~payroll ~~$0.4~~expenses ~~million~~from inthe ~~accounts~~compensation ~~payable,~~adjustments ~~accrued~~following ~~expenses~~changes ~~and~~in ~~other~~executive ~~current~~leadership ~~liabilities because we paid litigation liabilities of approximately $0~~roles.~~3 million.~~

~~Net cash provided by operating activities~~As ~~was $0.2 million in the three months ended October 31, 2023. Net cash used in operating activities was primarily comprised of net loss of $0.6 million, adjusted for~~ a ~~loss~~percentage of ~~$0.1 million from investment in trading securities~~sales, ~~and net changes in~~ our ~~operating~~general ~~assets~~ and ~~liabilities,~~ ~~principally~~administrative ~~comprising~~expenses ofwere ~~(i)~~476% aand ~~increase~~793% of ~~accounts~~our ~~receivable~~total ofrevenues ~~$0.6~~for ~~million due from a related party because we collected outstanding balance from~~ the ~~related~~six ~~party;~~months ~~(ii)~~ended ~~a decrease of $57,030 in prepaid expenses and other current assets because we amortized~~January ~~prepaid promotion expenses in the amount of $72~~31,~~000;~~ ~~(iii)~~2025 ~~a decrease of $70,000 in deferred revenues because the customers terminated agreements with the Company~~ and ~~the Company would not refund the advances from customers; and (iv) a decrease of $83~~2024,~~842~~ ~~in accrued expenses and other current liabilities~~respectively.

~~Investing~~Loss from ~~Activities~~investment in trading securities. Loss from investment in trading securities represented fair value changes from investment in trading securities, which was measured at market price. For the six months ended January 31, 2025 and 2024, we recorded an investment loss of approximately $1.1 million and $28,374, respectively.

~~Net~~Income taxes. ~~cash~~We ~~provided~~are byincorporated ~~investing activities~~in ~~was~~the ~~$9,016~~British ~~for~~Virgin Islands. Under the ~~three~~current ~~months~~laws ~~ended~~of ~~October~~the 31British Virgin Islands, ~~2024~~we are not subject to tax on income or capital gains in the British Virgin Islands. Additionally, ~~primarily~~upon ~~consisting~~payments of ~~proceeds~~dividends ofto $9the shareholders,~~016~~ no British Virgin Islands withholding tax will be imposed. ATIF Inc, ATIF BD, ATIF BC and ATIF BM were established in the U.S and are subject to federal and state income taxes on its business operations. The federal tax rate is 21% and state tax rate is 8.84%. We also evaluated the impact from ~~redemption~~the ofrecent ~~investment~~tax reforms in the United States, including the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and Health and Economic Recovery Omnibus Emergency Solutions Act (“HERO Act”), which were both passed in ~~trading~~2020, No ~~securities~~material impact on the ATIF US is expected based on our analysis. We will continue to monitor the potential impact going forward. For the six months ended January 31, 2025 and 2024, we did not recognized income tax expenses.

Net loss. ~~cash~~As ~~used~~a inresult ~~investing~~of ~~activities~~ foregoing, net loss was approximately $02.43 million infor the ~~three~~six months ended ~~October~~January 31, ~~2023~~2025, ~~primarily~~an ~~consisting~~increase of loss of ~~payments~~approximately $1.3 million from net loss of $01.40 million asfor ~~investments~~the insix ~~trading securities~~months ended January 31, 2024.

22Liquidity and Capital Resources

~~Critical~~To date, ~~Accounting~~we ~~Policies~~have financed our operations primarily through cash flows from operations, working capital loans from our major shareholders, proceeds from our initial public offering, and ~~Estimate~~ equity financing through public offerings of our securities. We plan to support our future operations primarily from cash generated from our operations and cash on hand. However, the Company may need to raise the cash flow from related parties, and there is no assurance that the Company will be able to obtain funds on commercially acceptable terms, if at all.

~~We prepare our audited consolidated~~Liquidity ~~financial statements in accordance with U.S. GAAP, which requires our management to make estimates that affect the reported amounts of assets, liabilities~~ and ~~disclosures~~Going of contingent assets and liabilities at the balance sheet dates, as well as the reported amounts of revenues and expenses during the reporting periods. As a result, management is required to routinely make judgments and estimates about the effects of matters that are inherently uncertain. Actual results may differ from these estimates under different conditions or assumptions.Concern

~~Critical~~For the ~~accounting~~six ~~policy~~months ~~is both~~ended ~~material~~January to31, ~~the~~2025 ~~presentation~~and of2024, ~~financial~~we ~~statements~~reported ~~and~~a ~~requires~~net ~~management~~loss toof ~~make~~approximately ~~difficult,~~$2.3 ~~subjective~~million orand ~~complex~~$1.0 ~~judgments~~million, ~~that~~respectively, ~~could~~and ~~have~~operating acash ~~material~~outflows ~~effect~~approximately on$1.2 ~~financial~~million ~~condition~~and orapproximately ~~results~~$0.02 ~~of operations~~million. ~~Accounting~~In ~~estimates~~assessing ~~and~~the ~~assumptions~~ability ~~may~~to ~~become~~continue ~~critical~~as a going ~~when~~concern, ~~they~~we ~~are~~monitors ~~material~~and ~~due~~analyzes cash and our ability to generate sufficient cash flow in the ~~levels~~future ofto ~~subjectivity~~support its operating and ~~judgment~~capital expenditure ~~necessary~~commitments. toBecause ~~account~~of ~~for~~a ~~highly~~history ~~uncertain~~of ~~matters~~net orlosses from operations, cash out from operating activities, and the ~~susceptibility~~requirement of ~~such~~additional ~~matters~~capital to ~~change~~fund our current operating plan at January 31, ~~and~~2025, these factors indicate the existence of an uncertainty that ~~have~~raises asubstantial ~~material~~doubt ~~impact~~about onour ~~financial~~ability ~~condition~~to orcontinue ~~operating~~as ~~performance~~a going concern.

Critical accounting estimates are estimates that require us to make assumptions about matters that were highly uncertain at the time the accounting estimate were made and if different estimates that we reasonably could have used in the current period, or changes in the accounting estimate that are reasonably likely occur from period to period, have a material impact on the presentation of our financial condition, changes in financial condition or results of operations. Due to the level of activity and lack of complex transactions, we believe there are currently no critical accounting policies and estimates that affect the preparation of our financial statements.20

~~Item~~In January 2025, we issued and sold 3,820,000 ordinary shares to certain non-affiliated institutional investors at a price of US$1.25 ~~Quantitative~~per share ~~and~~for ~~Qualitative~~gross ~~Disclosures~~proceeds ~~about~~of ~~Market~~US$4.8 ~~Risk~~million. We recorded net proceeds of approximately $4.8 million.

As of January 31, 2025, we had cash of approximately $5.3 million, short-term investments in trading securities of approximately $2.8 million and due from a ~~smaller~~related ~~reporting~~party ~~company~~of $0.6 million, which were highly liquid. On the other hand, we ~~are~~had ~~not~~current ~~required~~liabilities of approximately to$0.8 ~~provide~~million. The cash and short-term investments in trading securities could well cover the ~~information~~current ~~required~~liabilities. byOur ~~this~~ability ~~item~~to continue as a going concern is dependent on management’s ability to successfully execute its business plan, which includes increasing revenue while controlling operating cost and expenses to generate positive operating cash flows and obtain financing from outside sources.

~~Item~~We have 4not declared nor paid any cash dividends to our shareholders. ~~Controls~~We ~~and~~do ~~Procedures~~not plan to pay any dividends out of our restricted net assets as of January 31, 2025.

~~Disclosure Controls and~~Cash ~~Procedures~~ Flow

~~Under~~The ~~the~~following ~~supervision~~table ~~and~~sets ~~with~~forth ~~the~~summary ~~participation~~ of our ~~management,~~cash ~~including~~flows ~~our~~for ~~chief executive officer and chief financial officer, we carried out an evaluation of~~ the effectiveness of our disclosure controls and procedures, which is defined in Rules 13a-15(e) of the Exchange Act, as of October 31, 2024. Based on that evaluation, our management has concluded that, as of October 31, 2024, our disclosure controls and procedures were not effective in ensuring that the information required to be disclosed by us in the reports that we file and furnish under the Exchange Act was recorded, processed, summarized, and reported, within the time periods specified in the SEC’s rules and forms, and that the information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. Our conclusion is based on the fact that we do not have sufficient full-time accounting and financial reporting personnel with appropriate levels of accounting knowledge and experience to monitor the daily recording of transactions, to address complex U.S. GAAP accounting issues and the related disclosures under U.S. GAAP. In addition, there was a lack of sufficient documented financial closing procedure and a lack of risk assessment in accordance with COSCO 2013 framework. Our management is currently in the process of evaluating the steps necessary to remediate the ineffectiveness, such as (i) hiring more qualified accounting personnel with relevant U.S. GAAP and SEC reporting experience and qualifications to strengthen the financial reporting function and to set up a financial and system control framework, and (ii) implementing regular and continuous U.S. GAAP accounting and financial reporting training programs for our accounting and financial reporting personnel, and (iii) establishing an internal audit function and standardizing the Company’s semi-annual and year-end closing and financial reporting processes.indicated:

Changes in Internal Control over Financial Reporting

	For the Six Months Ended January 31,
	2024			2023
Net cash used in operating activities		(1,195,753	)		(17,412	)
Net cash provided by (used in) investing activities		441,172			(449,458	)
Net cash provided by financing activities		4,774,895			-
Net decrease in cash		4,020,314			(466,870	)
Cash, beginning of period		1,249,376			606,022
Cash, end of period	$	5,269,690		$	139,152

~~Except as disclosed above, there have been no changes in our internal~~Operating controls over financial reporting that occurred during three months ended October 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Activities

23Net cash used in operating activities was approximately $1.2 million in six months ended January 31, 2025. Net cash used in operating activities was primarily comprised of net loss of approximately $2.3 million, adjusted for loss of approximately $1.1 million from investment in trading securities, and net changes in our operating assets and liabilities, principally comprising of a decrease of $0.2 million in accounts receivable and a decrease of approximately $0.5 million in accounts payable, accrued expenses and other current liabilities because we paid litigation liabilities of approximately $0.3 million.

~~PART~~Net cash IIused in operating activities was $17,413 in the six months ended January 31, 2024. Net cash used in operating activities was primarily comprised of net loss of approximately $1.0 million, adjusted for amortization of right of use assets of approximately $0.2 million, and net changes in our operating assets and liabilities, principally comprising of (i) a decrease of accounts receivable of approximately $0.2 million and $0.6 million, respectively, due from third party customers and related party customers as a result of collection of consulting fees from customers.

~~OTHER INFORMATION~~Investing Activities

~~ITEM~~Net cash 1provided by investing activities was $0.4 ~~LEGAL~~million ~~PROCEEDINGS~~for the six months ended January 31, 2025, primarily consisting of net collection of borrowings from a related party of $0.3 million.

~~From~~Net ~~time~~cash toused ~~time, we may become involved~~ in ~~various~~investing ~~lawsuits~~activities ~~and~~was ~~legal~~approximately ~~proceedings which arise in the ordinary course of business~~$0.4 ~~However, litigation~~million ~~is subject to inherent uncertainties and an adverse result~~ in ~~these or other matters may arise from time to time that may harm our business. Except for~~ the ~~litigation~~six ~~disclosed~~months ~~below,~~ended weJanuary ~~are not currently a party to any legal or arbitration proceeding the outcome of which~~31, ~~if ‘determined adversely to us~~2024, ~~would~~primarily ~~individually~~used or in ~~the aggregate be reasonably expected to have a material adverse~~investment ~~effect~~in ontrading ~~our~~securities ~~business,~~of ~~operating~~approximately ~~results,~~$0.4 ~~cash flows, or financial condition~~million.

~~On May~~Financing 14, 2020, Boustead filed a lawsuit against the Company and Leaping Group Co., Ltd. a limited liability organized under the laws of Cayman Islands (“LGC”) for breaching the underwriting agreement Boustead had with each of the Company and LGC, in which Boustead was separately engaged as the exclusive financial advisor to provide financial advisory services to the Company and LGC.Activities

~~In April~~Net ~~2020,~~cash ~~the~~provided ~~Company~~by ~~acquired~~financing ~~51.2%~~activities ~~equity~~was ~~interest~~approximately ~~in LGC after LGC terminated its efforts to launch an IPO on its own~~$4.8 ~~Boustead~~million ~~alleged that~~in the ~~acquisition~~six ~~transaction~~months ~~between~~ended ~~the~~January ~~Company and LGC was entered into during the lockup period of the exclusive agreement between Boustead and LGC~~31, ~~and therefore deprived Boustead of compensation that Boustead would otherwise have been entitled to receive under its exclusive agreement with LGC. Therefore~~2024, ~~Boustead~~which isrepresented ~~attempting to recover~~ proceeds from ~~the~~issuance ~~Company an amount equal to a percentage~~ of ~~the~~ordinary ~~value of the transaction it conducted with LGC~~shares.

Boustead’s Complaint alleged four causes of action against the Company, including breach of contract; breach of the implied covenant of good faith and fair dealing; tortious interference with business relationships and quantum meruit.21

~~On October~~Critical 6,Accounting ~~2020,~~Policies ~~we filed a motion to dismiss Boustead’s Complaint pursuant to Federal Rule of Civil Procedure 12(b)(6)~~ and 12(b)(5). On October 9, 2020, the United States District Court for the Southern District of New York directed Boustead to respond to the motion or amend its Complaint by November 10, 2020. Boustead opted to amend its complaint and filed the amended complaint on November 10, 2020. Boustead’s first amended complaint asserted the same four causes of action against LGC and us as its original complaint. We filed another motion to dismiss Boustead’s amended complaint on December 8, 2020.Estimate

~~On August~~We ~~25,~~prepare ~~2021,~~our ~~the~~audited ~~United~~consolidated ~~States~~financial ~~District~~statements ~~Court~~in ~~for~~accordance ~~the~~with ~~Southern District of New York granted ATIF’s motion to dismiss Boustead’s first amended complaint~~U.S. ~~In its order and opinion~~GAAP, ~~the~~which ~~United~~requires ~~States~~our ~~District~~management ~~Court~~to ~~for~~make ~~the~~estimates ~~Southern District of New York allowed Boustead~~that toaffect ~~move~~the ~~for~~reported ~~leave~~amounts ~~to amend its causes~~ of ~~action~~assets, ~~against~~liabilities usand asdisclosures ~~to breach~~ of ~~contract~~contingent assets and ~~tortious~~liabilities ~~interference~~at ~~with~~the ~~business~~balance ~~relationships~~sheet dates, as ~~but~~well ~~not~~as ~~breach of~~ the ~~implied~~reported ~~covenant~~amounts of ~~good~~revenues ~~faith~~ and ~~fair~~expenses ~~dealing~~during ~~and~~the ~~quantum~~reporting ~~meruit~~periods. OnAs ~~November~~a 4result, ~~2021,~~management ~~Boustead~~is ~~filed~~required ~~a motion seeking leave~~ to ~~file a second amended complaint to amend its cause of action for Breach of Contract. The Court granted Boustead’s~~routinely ~~motion~~make ~~for~~judgments ~~leave~~ and ~~Boustead~~estimates ~~filed~~about the ~~second~~effects ~~amended complaint on December 28, 2021 alleging only breach~~ of ~~contract~~matters ~~and~~that ~~dropping~~are ~~all other~~inherently ~~causes of action alleged in the original complaint~~uncertain. OnActual ~~January~~results ~~18,~~may ~~2022,~~differ ~~the~~from ~~Company~~these ~~filed a motion to dismiss Boustead’s~~estimates ~~second~~under ~~amended~~different ~~complaint.~~conditions ~~Boustead~~or ~~filed its opposition on February 1, 2022 and the Company replied on February 8, 2022~~assumptions.

~~On July~~Critical 6,accounting ~~2022,~~policy ~~the~~is ~~Court~~both ~~denied~~material ~~our motion~~ to ~~dismiss~~ the ~~second~~presentation ~~amended~~of ~~complaint.~~financial ~~Thereafter,~~statements onand ~~August~~requires 3,management ~~2022,~~to ~~the~~make ~~Company~~difficult, ~~filed a motion~~subjective toor ~~compel~~complex ~~arbitration.~~judgments ~~Briefing~~that oncould ~~the~~have ~~Company’s~~a ~~motion~~material toeffect ~~compel~~on ~~concluded~~financial oncondition ~~August~~or ~~23,~~results ~~2022~~of ~~Since~~operations. ~~the~~Accounting ~~agreement~~estimates ~~between~~and ~~ATIF~~assumptions ~~and~~may ~~Boustead~~become ~~contains~~critical awhen ~~valid~~they ~~arbitration~~are ~~clause~~material ~~that~~due ~~applies~~ to ~~Boustead’s~~the ~~breach~~levels of ~~contract~~subjectivity ~~claim,~~ and ~~the~~judgment ~~parties~~necessary ~~have~~to ~~not~~account ~~engaged in~~for ~~discovery,~~highly onuncertain ~~February~~matters or ~~14,~~the ~~2023,~~susceptibility ~~the~~of ~~Court~~such ~~ordered~~matters ~~that~~to ~~ATIF’s~~change, ~~motion~~and tothat ~~compel~~have ~~arbitration~~a ismaterial ~~granted~~impact ~~and~~on ~~this~~financial ~~case~~condition isor ~~stayed pending~~operating ~~arbitration~~performance.

24Critical accounting estimates are estimates that require us to make assumptions about matters that were highly uncertain at the time the accounting estimate were made and if different estimates that we reasonably could have used in the current period, or changes in the accounting estimate that are reasonably likely occur from period to period, have a material impact on the presentation of our financial condition, changes in financial condition or results of operations. Due to the level of activity and lack of complex transactions, we believe there are currently no critical accounting policies and estimates that affect the preparation of our financial statements.

~~On March~~Item ~~10, 2023, Boustead, filed Demand for Arbitration against ATIF (the Respondent) before JAMS in California and the assigned JAMS case Ref~~3. ~~No.~~ isQuantitative ~~5220002783. On May 25, 2023, ATIF filed its answer to deny Boustead’s Demand for Arbitration, which was unsuccessful~~ and ~~the~~ ~~arbitration~~Qualitative ~~process~~Disclosures ~~was~~about ~~initiated.~~Market The arbitrator ordered a motion to be filed by Boustead for a determination of contact interpretation, prior to extensive discovery into issues such as the alleged merits and damages, and to determine whether the contract interpretation should allow the matter to further proceed. Boustead had filed the Motion for Contract Interpretation Determination. ATIF filed its opposition to that Motion on October 16, 2023. The hearing on the motion was held on November 8, 2023, during which the arbitrator extended the hearing to February 29, 2024. The arbitrator also established December 15, 2023, as the deadline for Boustead to submit its reply regarding the contract interpretation issues raised by the Company. Simultaneously, the Company was granted until February 12, 2024, to present its response brief. Risk

~~On September 24, 2024, the~~As ~~Company and Boustead entered into~~ a ~~settlement~~smaller ~~agreement,~~reporting ~~pursuant~~company towe ~~which~~are ~~the~~not ~~Company~~required ~~shall pay a total amount of $1,000,000~~ to ~~Boustead.~~ ~~The~~provide ~~payment is made in three instalments,~~ the ~~first~~information ~~instalment~~required ofby ~~$250,000 is~~this ~~payable upon execution of the settlement agreement, the second instalment of $500,000 is payable before March 1, 2025, and the final instalment of $250,000 is payable before December 31, 2025~~item.

~~On December~~Item ~~22, 2023, J~~4.P ~~Morgan~~Controls Securities LLC (“JPMS”) filed a lawsuit in the Superior Court of California, County of Orange, bearing Case Number 30-2023-01369978-CU-FR-CJC against ATIF Holdings Limited (“Holdings”), ATIF Inc., ATIF-1 GP, LLC (ATIF-1 GP”), and ~~two officers of Holdings and ATIF Inc~~Procedures.~~, Jun Liu and Zhiliang “Ian” Zhou,alleging and asserting that it is entitled to recover $5,064,160 in damages plus interest and attorneys’ fees relating to a stock transaction by ATIF-1 GP.~~

~~The parties have agreed to attempt to mediate the dispute before proceeding~~Disclosure toControls litigation. A mediation was held on May 6, 2024, but the parties could not come to a resolution. The Defendants’ time to respond to the lawsuit was May 20, 2024. On May 15, 2024, the Defendants filed a Petition with the Superior Court of California seeking to compel arbitration under the operative agreements and stay the underlying State Court action. On or about August 16, 2024, the parties agreed that JPMS and ATIF-1 GP, LLC would submit any disputes between the two of them only, to FINRA arbitration, and stay the California state court case pending such arbitration. At this time, the management is still in the process of evaluating the claims and defenses.Procedures

~~ITEM~~Under the 1Asupervision and with the participation of our management, including our chief executive officer and chief financial officer, we carried out an evaluation of the effectiveness of our disclosure controls and procedures, which is defined in Rules 13a-15(e) of the Exchange Act, as of January 31, 2025. ~~RISK~~Based ~~FACTORS~~on that evaluation, our management has concluded that, as of January 31, 2025, our disclosure controls and procedures were not effective in ensuring that the information required to be disclosed by us in the reports that we file and furnish under the Exchange Act was recorded, processed, summarized, and reported, within the time periods specified in the SEC’s rules and forms, and that the information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. Our conclusion is based on the fact that we do not have sufficient full-time accounting and financial reporting personnel with appropriate levels of accounting knowledge and experience to monitor the daily recording of transactions, to address complex U.S. GAAP accounting issues and the related disclosures under U.S. GAAP. In addition, there was a lack of sufficient documented financial closing procedure and a lack of risk assessment in accordance with COSCO 2013 framework. Our management is currently in the process of evaluating the steps necessary to remediate the ineffectiveness, such as (i) hiring more qualified accounting personnel with relevant U.S. GAAP and SEC reporting experience and qualifications to strengthen the financial reporting function and to set up a financial and system control framework, and (ii) implementing regular and continuous U.S. GAAP accounting and financial reporting training programs for our accounting and financial reporting personnel, and (iii) establishing an internal audit function and standardizing the Company’s semi-annual and year-end closing and financial reporting processes.

~~As a~~Changes ~~smaller~~in ~~reporting~~Internal ~~company~~Control weover ~~are~~Financial ~~not required to provide the information required by this item.~~Reporting

~~ITEM~~Except as 2.disclosed ~~UNREGISTERED~~above, ~~SALE~~there OFhave ~~EQUITY~~been ~~SECURITIES~~no ~~AND~~changes ~~USE~~in OFour ~~PROCEEDS~~internal controls over financial reporting that occurred during three months ended January 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

~~Not applicable.~~22

~~ITEM 3. DEFAULT UPON SENIOR SECURITIES.~~PART II

~~Not~~OTHER ~~applicable.~~INFORMATION

ITEM 4 1. ~~MINE~~LEGAL ~~SAFETY DISCLOSURE.~~PROCEEDINGS

~~Not~~From ~~applicable~~time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may harm our business. Except for the litigation disclosed below, we are not currently a party to any legal or arbitration proceeding the outcome of which, if ‘determined adversely to us, would individually or in the aggregate be reasonably expected to have a material adverse effect on our business, operating results, cash flows, or financial condition.

~~ITEM~~On May 514, 2020, Boustead filed a lawsuit against the Company and Leaping Group Co., ~~OTHER~~Ltd. ~~INFORMATION~~a limited liability organized under the laws of Cayman Islands (“LGC”) for breaching the underwriting agreement Boustead had with each of the Company and LGC, in which Boustead was separately engaged as the exclusive financial advisor to provide financial advisory services to the Company and LGC.

~~None~~In April 2020, the Company acquired 51.2% equity interest in LGC after LGC terminated its efforts to launch an IPO on its own. Boustead alleged that the acquisition transaction between the Company and LGC was entered into during the lockup period of the exclusive agreement between Boustead and LGC, and therefore deprived Boustead of compensation that Boustead would otherwise have been entitled to receive under its exclusive agreement with LGC. Therefore, Boustead is attempting to recover from the Company an amount equal to a percentage of the value of the transaction it conducted with LGC.

25Boustead’s Complaint alleged four causes of action against the Company, including breach of contract; breach of the implied covenant of good faith and fair dealing; tortious interference with business relationships and quantum meruit.

~~ITEM~~On October 6, 2020, we filed a motion to dismiss Boustead’s Complaint pursuant to Federal Rule of Civil Procedure 12(b)(6) and 12(b)(5). On ~~EXHIBITS~~October 9, 2020, the United States District Court for the Southern District of New York directed Boustead to respond to the motion or amend its Complaint by November 10, 2020. Boustead opted to amend its complaint and filed the amended complaint on November 10, 2020. Boustead’s first amended complaint asserted the same four causes of action against LGC and us as its original complaint. We filed another motion to dismiss Boustead’s amended complaint on December 8, 2020.

On August 25, 2021, the United States District Court for the Southern District of New York granted ATIF’s motion to dismiss Boustead’s first amended complaint. In its order and opinion, the United States District Court for the Southern District of New York allowed Boustead to move for leave to amend its causes of action against us as to breach of contract and tortious interference with business relationships, but not breach of the implied covenant of good faith and fair dealing and quantum meruit. On November 4, 2021, Boustead filed a motion seeking leave to file a second amended complaint to amend its cause of action for Breach of Contract. The ~~following~~Court ~~exhibits~~granted ~~are~~Boustead’s motion for leave and Boustead filed ~~herewith:~~the second amended complaint on December 28, 2021 alleging only breach of contract and dropping all other causes of action alleged in the original complaint. On January 18, 2022, the Company filed a motion to dismiss Boustead’s second amended complaint. Boustead filed its opposition on February 1, 2022 and the Company replied on February 8, 2022.

Exhibit
Number		Description of Exhibit
31.1		Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934
31.2		Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934
32.1*		Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*		Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

On July 6, 2022, the Court denied our motion to dismiss the second amended complaint. Thereafter, on August 3, 2022, the Company filed a motion to compel arbitration. Briefing on the Company’s motion to compel concluded on August 23, 2022 Since the agreement between ATIF and Boustead contains a valid arbitration clause that applies to Boustead’s breach of contract claim, and the parties have not engaged in discovery, on February 14, 2023, the Court ordered that ATIF’s motion to compel arbitration is granted and this case is stayed pending arbitration.

* The certifications attached as Exhibits 32.1 and 32.2 accompany this quarterly report on Form 10-Q pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not be deemed “filed” by the Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.23

26On March 10, 2023, Boustead, filed Demand for Arbitration against ATIF (the Respondent) before JAMS in California and the assigned JAMS case Ref. No. is 5220002783. On May 25, 2023, ATIF filed its answer to deny Boustead’s Demand for Arbitration, which was unsuccessful and the arbitration process was initiated. The arbitrator ordered a motion to be filed by Boustead for a determination of contact interpretation, prior to extensive discovery into issues such as the alleged merits and damages, and to determine whether the contract interpretation should allow the matter to further proceed. Boustead had filed the Motion for Contract Interpretation Determination. ATIF filed its opposition to that Motion on October 16, 2023. The hearing on the motion was held on November 8, 2023, during which the arbitrator extended the hearing to February 29, 2024. The arbitrator also established December 15, 2023, as the deadline for Boustead to submit its reply regarding the contract interpretation issues raised by the Company. Simultaneously, the Company was granted until February 12, 2024, to present its response brief.

~~SIGNATURES~~On September 24, 2024, the Company and Boustead entered into a settlement agreement, pursuant to which the Company shall pay a total amount of $1,000,000 to Boustead. The payment is made in three instalments, the first instalment of $250,000 was paid on September 24, 2024, the second instalment of $500,000 was paid on February 27, 2025, and the final instalment of $250,000 is payable before December 31, 2025.

~~Pursuant~~On December to22, ~~the~~2023, ~~requirements of~~J.P ~~the~~Morgan Securities ~~Exchange~~LLC ~~Act~~(“JPMS”) filed a lawsuit in the Superior Court of ~~1934~~California, ~~the~~County ~~registrant~~of ~~has~~Orange, bearing ~~duly~~Case ~~caused~~Number ~~this~~30-2023-01369978-CU-FR-CJC ~~report~~against toATIF beHoldings ~~signed~~Limited on(“Holdings”), ~~its~~ATIF ~~behalf~~Inc., byATIF-1 ~~the~~GP, ~~undersigned~~LLC (ATIF-1 GP”), ~~thereunto~~and two officers of Holdings and ATIF Inc., Jun Liu and Zhiliang “Ian” Zhou,alleging and asserting that it is ~~duly~~entitled ~~authorized~~to recover $5,064,160 in damages plus interest and attorneys’ fees relating to a stock transaction by ATIF-1 GP.

	ATIF HOLDINGS LIMITED
December 19, 2024	By:	/s/ Jun Liu
		Jun Liu
		Chief Executive Officer

The parties have agreed to attempt to mediate the dispute before proceeding to litigation. A mediation was held on May 6, 2024, but the parties could not come to a resolution. The Defendants’ time to respond to the lawsuit was May 20, 2024. On May 15, 2024, the Defendants filed a Petition with the Superior Court of California seeking to compel arbitration under the operative agreements and stay the underlying State Court action. On or about August 16, 2024, the parties agreed that JPMS and ATIF-1 GP, LLC would submit any disputes between the two of them only, to FINRA arbitration, and stay the California state court case pending such arbitration. At this time, the management is still in the process of evaluating the claims and defenses.

	ATIF HOLDINGS LIMITED
December 19, 2024	By:	/s/ Yue Ming
		Yue Ming
		Chief Financial Officer

ITEM 1A. RISK FACTORS

27As a smaller reporting company we are not required to provide the information required by this item.

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Not applicable.

ITEM 3. DEFAULT UPON SENIOR SECURITIES.

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURE.

Not applicable.

ITEM 5. OTHER INFORMATION.

None.

ITEM 6. EXHIBITS

The following exhibits are filed herewith:

Exhibit
Number		Description of Exhibit
31.1		Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934
31.2		Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934
32.1*		Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*		Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

The certifications attached as Exhibits 32.1 and 32.2 accompany this quarterly report on Form 10-Q pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not be deemed “filed” by the Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ATIF HOLDINGS LIMITED

March 13, 2025	By:	/s/ Dr. Kamran Khan
		Dr. Kamran Khan
		Chief Executive Officer

	ATIF HOLDINGS LIMITED

March 13, 2025	By:	/s/ Shibin Yu
		Shibin Yu
		Chief Financial Officer

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