Company: AOAO
Filing Date: 2025-07-30
Form Type: S-1/A
Source: 0001641172-25-021532
Chunk: 28

Company: Alpha One Inc.
Filing Date: 2025-07-30
Form: S-1/A
Chunk 28
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 collect due amounts. The allowance is based on management’s best estimates of specific losses on the exposures and a provision on historical trends of collections. Based on the management of customers’ credit and ongoing relationship, management determines whether any balances outstanding at the end of the period will be deemed uncollectible, both on customer basis and through an aging analysis basis. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. We have $6.25 million and $3.52 million overdues one year (aging over 360 days) as at September 30, 2024 and March 31, 2024 respectively.

We have implemented policies and measures to enhance our credit risk management and improve the collection of overdue or long-outstanding accounts receivable. However, given the nature of our business, we cannot guarantee that our substantial accounts receivable position will not persist.

Any deterioration in the credit profile of our customers or delays in their payments could impact our cash flow. If we are required to rely on bank or other borrowings to meet our liabilities, it could place significant pressure on our operating cash flow. This may lead to adverse effects on our business operations, financial performance, and potential liquidity risks in the future.

Failure to properly estimate the risks, time and cost involved in a project or delays in completion may lead to cost overruns and affect the Company’s financial conditions and profitability

When determining the offer price for its projects, the Company generally adopts a cost-plus pricing model after taking into account factors including, the nature, scale, complexity and location of the relevant project, as well as the estimated material, labour and equipment cost. As such, whether the Company is able to achieve its target profitability in any project is significantly dependent on its ability to accurately estimate and control these costs. The actual time taken and cost involved in implementing the Company’s project may be adversely affected by a number of factors, such as shortage or cost escalation of materials and labor, adverse weather conditions, accidents, and any other unforeseen problems and circumstances. As of the aforesaid factors may give rise to delays in completion of works or cost overruns, which in turn result in a lower profit margin or even a loss for a project, thereby materially and adversely affecting the Company’s financial condition, profitability or liquidity.

The Company’s performance depends on prevailing market conditions and trends in the Telecommunications Infrastructure Services industry, and Infrastructure Digitalisation Solution Services industry and in the overall state of economy in P