Antiaging Quantum Living Inc. 2025 Annual Report Review

In this in-depth review, we dissect Antiaging Quantum Living Inc.’s ("AAQL") Form 10-K for the fiscal year ended March 31, 2025. We’ll explore the company’s history, business model, financial performance, risks, and management’s strategic vision. Dive in for a comprehensive analysis and actionable insights.

Warren.AI 💰 2.3 / 10

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Table of Contents

1. Company Overview & History
2. Business Segments & Services
3. Recent Corporate Transactions
4. Financial Highlights

• Revenue & Profitability Trends
• Cash Flow & Liquidity
• Balance Sheet Strength

1. Risks & Concentrations
2. Management & Governance
3. Going Concern & Outlook
4. Investment Takeaways

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1. Company Overview & History

Antiaging Quantum Living Inc., formerly Achison Inc., is a smaller reporting company incorporated in New York on December 29, 2014. Over time, AAQL evolved from a holding trader of U.S. securities, foreign spot silver, and UK whisky into a digital advertising and tech services provider.

Key Milestones:

• July 2019: Control pivot—Principal shareholder and CEO changed, shifting focus to an online advertising portal (dazhong368.com).
• April 2023: New majority stakeholder (Barry Wan via New Lite Ventures LLC) takes 97.4% ownership; management revamp and corporate rebranding to AAQL.
• Late 2023: Creation of offshore holding structure (BVI Holding, Hong Kong Holding) and PRC subsidiaries ("Dao Ling Doctor" entities) to enter Asian digital health and tech services.
• June 2024: Authorized share capital expansion from 30 million to 6 billion shares to fuel future capital raises and strategic acquisitions.

2. Business Segments & Services

AAQL now operates three core service lines:

1. Digital Advertising Platform

• Local advertising portal in Greater New York targeting real estate, legal, accounting, professional services.

1. E-commerce Sales of Health & Beauty Products

• Direct‐to‐consumer via proprietary mobile app.

1. Online Platform Tech Operation & Maintenance

• Technical support, website development, cloud hosting, data analytics and security software for corporate clients.

Through its PRC arm (Dao Ling Doctor), AAQL also offers:

• Health Consulting (non-medical)
• Network & Information Security Software Solutions
• Big Data Services & Technical Licensing Fees

3. Recent Corporate Transactions

• Ownership Consolidation: Barry Wan acquired 29.215 million shares (97.4%) on April 10, 2023.
• New Holdings: Established AAQL Inc. (BVI) → AAQL HK → Dao Ling Doctor Hangzhou → Dao Ling Doctor (Zhejiang & Huzhou).
• Promissory Notes & Debt Assignment (Dec 2024 – Mar 2025): Converted ~$1.3 million of short‐term debt to long‐term promissory notes (maturity 2029) and assigned to related party (CEO).
• Authorized Share Increase: Expanded authorized common stock to 6 billion shares on June 6, 2024.

4. Financial Highlights

Revenue & Profitability Trends

Fiscal Year Ended Mar 31	2025	2024	% Change
Revenue, net	$817,898	$7,499	+10,807%
Cost of Revenue	$389,381	$771	+50,403%
Gross Profit	$428,517	$6,728	+6,269%
Gross Margin	52.4%	89.7%	—
SG&A Expenses	$1,218,476	$419,745	+190%
Operating Loss	$(789,959)	$(413,017)	+91%
Net Loss	$(720,409)	$(412,971)	+74%

• Revenue Surge: From $7.5K in FY 2024 to $818K in FY 2025—driven exclusively by tech operation & maintenance services.
• Margin Compression: Gross margin down from 89.7% to 52.4% due to new cost structure in technical services.
• Loss Expansion: Operating loss doubled and net loss climbed to $720K as SG&A costs ballooned for marketing, staffing, and R&D.

Cash Flow & Liquidity

• Operating Cash Burn: $(900K) in FY 2025 (vs. $(649K) in FY 2024).
• Investing Activities: $(63K) capex on equipment & software.
• Financing Inflows: $1.17 million in shareholder and third‐party loans.
• Cash at Year End: $371K (up from $167K).
• Working Capital: $133K positive vs. $(647K) deficiency.

Balance Sheet Strength

• Total Assets: $1.59 million (Cash, receivables, PP&E, intangible assets, lease ROU).
• Total Liabilities: $2.72 million (Notes & loans to related parties, lease obligations, payables).
• Shareholders Deficit: $(1.13 million) due to accumulated losses.

5. Risks & Concentrations

1. Going Concern Doubt

• Recurring operating losses, negative cash flows, accumulated deficit.
• Management plans: expense control, profitability initiatives, shareholder funding.

1. Single‐Customer Concentration

• 100% of FY 2025 revenue derived from one client—major business risk if relationship dissolves.

1. Related‐Party Funding

• $1.67 million in related‐party notes not immediately repayable but cloud CFO independence.

1. Limited Operating History

• Pre‐2025 revenue of $7,499, no historical track record beyond tech support pivot.

1. Regulatory & Currency Risks

• Offshore structure exposes AAQL to PRC, HK tax regimes, currency translation volatility.

6. Management & Governance

• CEO / CFO / President: Barry Wan (sole director)—serial entrepreneur in real estate, ecommerce, digital health technology.
• Director Independence: Not established—sole director is controlling shareholder.
• Audit & Nominating Committees: None; Board of one handles all corporate governance.

7. Going Concern & Outlook

• Substantial Doubt: Auditors and management flag going‐concern. Mitigants include:
• New revenue stream ramp–tech maintenance (FY2025 launch).
• PRC subsidiaries targeting high‐growth Asia Pacific digital health segment.
• Extended debt maturities (2029) for working capital runway.
• Critical Uncertainties: Customer concentration, market acceptance, funding adequacy.

8. Investment Takeaways

Pros	Cons
Proven pivot to tech services	Staggering net loss of $720K
Rapid revenue growth	Single‐customer dependency
Institutional overhead under control	Weak governance with sole director
PRC market expansion potential	Going concern risk & accumulated deficit

Score: 2.3/10—AAQL is at an early pivot stage with strong top‐line growth in a new service line but suffers from heavy losses, single‐customer risk, and governance red flags. Deep due diligence is required before considering participation.

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Net Loss for FY 2025: $(720,409)

Full Form 10-K Access: SEC.gov or company website

Note: The investment score reflects a balanced view of high growth potential versus serious financial and governance drawbacks.