Company: AOAO
Filing Date: 2025-09-16
Form Type: S-1/A
Source: 0001493152-25-013575
Chunk: 71

Company: Alpha One Inc.
Filing Date: 2025-09-16
Form: S-1/A
Chunk 71
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 devices is another significant market driver. As of early 2021, there were approximately 1.61 billion mobile connections in China, indicating a penetration rate exceeding the country’s population (https://www.worlddata.info/asia/china/telecommunication.php). This massive increase in mobile connectivity has led to a corresponding rise in data consumption, with mobile data traffic reportedly increasing by 40% during the COVID-19 pandemic. The emphasis on improving network capacity and reliability is essential for meeting consumer expectations and supporting the growing number of Internet of Things.

Telecom infrastructure engineering is critical to designing, constructing, and maintaining these data centers, which house servers that support everything from consumer internet applications to large-scale enterprise systems. As companies such as Huawei, Alibaba, and Tencent continue to expand their cloud services, the demand for infrastructure engineering related to cooling, power, network security, and server management increases.

| ● | Digital                         
 Transformation and Smart Cities |

The push toward digital China, including the development of smart cities, serves as another critical factor propelling the telecom infrastructure market within China. The Chinese government aims to integrate advanced technologies like cloud computing, artificial intelligence, and big data into everyday business operations and public services. This digital transformation necessitates robust telecom infrastructure to support new digital services and applications. The smart cities require robust telecom networks that can support the Internet of Things, autonomous transportation systems, and smart energy grids, which presents a growing need for engineering services that specialize in the integration of telecommunications technologies with urban infrastructure.

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Recently Issued Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), as amended, which generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. The Company adopted the new standard effective January 1, 2019 and elected the package of practical expedients permitted under the transition guidance, which allows to carry forward our historical lease classification, and initial direct costs for any leases that exist prior to adoption of the new standard. The Company will also keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. The Company estimates approximately $247,369 would be recognized as total right