Company: AOAO
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001493152-25-018240
Chunk: 106

Company: Alpha One Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 106
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 than RMB by the Company in the PRC must be processed through the PBOC or other Company foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance.

The Company maintains certain bank accounts in the PRC. On May 1, 2015, the PRC’s new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as commercial banks, established in the PRC are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them. Such Deposit Insurance Regulation would not be effective in providing complete protection for the Company’s accounts, as its aggregate deposits are much higher than the compensation limit, which is RMB500,000 for one bank. However, the Company believes that the risk of failure of any of these Chinese banks is remote. Bank failure is uncommon in the PRC and the Company believes that those Chinese banks that hold the Company’s cash and cash equivalents are financially sound based on public available information.

Other than the deposit insurance mechanism in the PRC mentioned above, the Company’s bank accounts are not insured by Federal Deposit Insurance Corporation insurance or other insurance.

Concentration and credit risk

Financial instruments that potentially subject the Company to the concentration of credit risks consist of cash and short-term investments. The maximum exposures of such assets to credit risk are their carrying amounts as of the balance sheet dates. The Company deposits its cash and cash equivalents with financial institutions located in jurisdictions where the subsidiaries are located. The Company believes that no significant credit risk exists as these financial institutions have high credit quality.

The Company also exposures to credit risk associated with its trading and other activities is measured on an individual counterparty basis, as well as by Company of counterparties that share similar attributes. Concentrations of credit risk can be affected by changes in political, industry, or economic factors. To reduce the potential for risk concentration, the Company generally requires payment after delivery of the serviceswithin 90 to 120 days and advanced payment acquired before delivery of goods. Credit limits are established and exposure is monitored in light of changing counterparty and market conditions. For the year ended March 31, 2025, two customers accounted for more than 10% of the Company’s total revenues which totaled of 23% revenue and accounted for 97% of the Company’s total accounts receivable. For the year ended March 31, 2024, three customers accounted for more than 10% of the Company’s total revenues which totaled of 68% revenues and 32% accounts