Company: AOAO
Filing Date: 2025-02-24
Form Type: S-1/A
Source: 0001493152-25-008010
Chunk: 136

Company: Alpha One Inc.
Filing Date: 2025-02-24
Form: S-1/A
Chunk 136
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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 goods
within 90 to 120 days. Credit limits are established and exposure is monitored in light of changing counterparty and market
conditions. For the quarterly ended September 30, 2024, two customers accounted for more than 10% of the Company’s total
revenues which totaled of 92% revenues and 55% accounts receivable. For the quarterly ended September 30, 2023, three customers
accounted for more than 10% of the Company’s total revenues which totaled of 77% revenues and 38% accounts receivable. For the
quarterly ended September 30, 2024, the Company had one supplier (a related party) that accounted for more than 10% of the
Company’s total cost of revenues, which totaled of 40% cost of revenue and 4% due to related parties. For the quarterly ended
September 30, 2023, the Company had three suppliers that accounted for more than 10% of the Company’s total cost of revenues
which totaled of 54% cost of revenue and 53% accounts payable.

Interest rate risk

Fluctuations in market interest rates may negatively affect our financial condition and results of operations. The Company is exposed to floating interest rate risk on cash deposit and floating rate borrowings, and the risks due to changes in interest rates is not material. The Company has not used any derivative financial instruments to manage our interest risk exposure.

Related party transaction

A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls,