Company: AOAO
Filing Date: 2025-01-10
Form Type: S-1/A
Source: 0001493152-25-001624
Chunk: 99

Company: Alpha One Inc.
Filing Date: 2025-01-10
Form: S-1/A
Chunk 99
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      2023 |
|:---------------------------------------|:----|:--------------------|-----------:|:----|:--|----------:|
| Telecommunication engineering services |     | $                   |  5,968,562 |     | $ | 6,494,640 |
| Intelligent products                   |     |                     | 17,580,582 |     |   |         - |
| Total                                  |     | $                   | 23,549,144 |     | $ | 6,494,640 |

Contract liabilities

A contract liability is recognized when the customer pays consideration before the Company recognizes the related revenue. A contract liability would also be recognized if the Company has an unconditional right to receive consideration before the Company recognizes the related revenue. In such cases, a corresponding receivable would also be recognized. As of March 31, 2024 and 2023, the Company had contract liabilities of $8,112 and $339,796, respectively.

Cost of revenues

Amounts recorded as cost of revenues relate to direct expenses incurred in order to generate revenue. Cost of revenues consists primarily of (i) purchase of goods, (ii) costs of telecommunication construction services and (iii) taxes and surcharges.

General and administrative expenses

General and administrative expenses consist primarily of salary and welfare for general and administrative personnel, rental expenses, entertainment expenses, freight, general office expenses and professional service fees.

Research and development expenses

Research and development expenses consist primarily of payroll and related expenses for research and development employees involved in designing, developing and maintaining telecommunication information system, and technology infrastructure costs. The Company expects the research and development expenses to increase in absolute amounts in the foreseeable future as the Company continues to invest in technology and innovation to expand the technology capabilities.

Value-added taxes

Revenue is recognized net of value-added taxes (“VAT”). The VAT is based on gross sales price and VAT rates applicable to the Company is 13%. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded as VAT payable if output VAT is larger than input VAT and is recorded as VAT recoverable if input VAT is larger than output VAT. For entities that are qualified for VAT small taxpayers, entities are allowed to enjoy preferential tax rate from 3% to 1% for the period from January 1, 2022 to March 31, 2022 and preferential tax rate from 3% to