Company: AOAO
Filing Date: 2025-09-16
Form Type: S-1/A
Source: 0001493152-25-013575
Chunk: 27

Company: Alpha One Inc.
Filing Date: 2025-09-16
Form: S-1/A
Chunk 27
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, there can be no assurance that the Company would not experience any significant cash flow mismatch which would affect the Company’s operating cash flow position as the Company may be required to provide prepayments pursuant to the arrangement with its suppliers. For the years ended March 31, 2025 and 2024 and for the three months ended June 30, 2025, the Company would in certain circumstances, depending on the scale of works required, provide its material suppliers with an advance payment of approximately 30% of the contract value as stipulated in the work order. Hence, if the Company undertakes a large number of projects, it would pose significant pressure on its cash flow and the Company may record net operating cash outflow.

Due to uncertainty of the timing of collection, we established an allowance for doubtful accounts based on account analysis and historical collection trends. We established a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect due amounts. The allowance is based on management’s best estimates of specific losses on the exposures and a provision on historical trends of collections. Based on the management of customers’ credit and ongoing relationship, management determines whether any balances outstanding at the end of the period will be deemed uncollectible, both on customer basis and through an aging analysis basis. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. As of March 31, 2025, we have accounts receivable of $9,070,199, 8% within 12 months, 56% within13 to 24 months, and 36% within 25 months and above and as of June 30, 2025, we have accounts receivable of $9,375,894, 10% within 12 months, 53% within 13 to 24 months and 37% within 25months and above past the original due date.

We have implemented policies and measures to enhance our credit risk management and improve the collection of overdue or long-outstanding accounts receivable. However, given the nature of our business, we cannot guarantee that our substantial accounts receivable position will not persist.

Any deterioration in the credit profile of our customers or delays in their payments could impact our cash flow. If we are required to rely on bank or other borrowings to meet our liabilities, it could place significant pressure on our operating cash flow. This may lead to adverse effects on our business operations, financial performance, and