Company: ATMCW
Filing Date: 2025-11-17
Form Type: DEFM14A
Source: 0001493152-25-023842
Chunk: 225

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-11-17
Form: DEFM14A
Chunk 225
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              |  19,230,769 |   |

The above financial metrics were included in HCYC’s projections that were provided to Newbridge Securities solely for purpose of rendering its fairness opinion, which opinion is materially related to the Business Combination. Further, the projections are disclosed in this proxy statement/prospectus in order to comply with Item 1015 of Regulation M-A regarding disclosure of Newbridge Securities’ analyses or substantive work. Accordingly, consistent with SEC guidance, the metrics provided to Newbridge Securities for purpose of rendering its fairness opinion are not deemed to be non-GAAP financial measures requiring reconciliation to GAAP and/or other additional disclosures. HCYC’s projected revenue and net profit are main financial metrics used for analysis, mainly because they can clearly and intuitively reflect HCYC’s performance.

However, HCYC did not achieve the projected financial results for its fiscal year ended March 31, 2024 and generated revenues of $10,887,830 while incurring an income from operations of $30,732 and net income of $18,206. HCYC attributes these results to the post-pandemic slowdown experienced in the Chinese economy, and that US Federal Reserve delay in Federal Fund Rates cut caused prospective customers to reallocate their wealth into other wealth management products that delivered higher yield than insurance products.

The board believes the assumptions underlying the projections are reasonable because the revenue of HCYC as of March 2024 indeeds increased significantly, although it did not completely align with the projections. HCYC believes it will be able to generate adequate cash inflows from its operating activities to support its operations and expansion. After a careful examination, management determined the smaller average check size for insurance products sold was the main reason the forecasted projections were not met. However, the board believes HCYC is still able to achieve the projections one year later by intensifying its sales and referral programs. HCYC believes it will be able to retain its existing customers, while also expanding its customer pool through sales and referral programs. Additionally, HCYC believes it will be able to continue to develop and maintain its relationships with insurance providers. HCYC aims to attract additional corporate referrers and utilize those referrers’ network to help it to continue to grow and expand.

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Assumptions and Basis for the Projected Financial Metrics Table

The HCYC Management Projections reflect numerous material estimates and assumptions made by HCYC management and believed to be reasonable with respect to expected future financial performance.