Based on the provided financial report articles, I generated the title for the article: **"AAQL's Financial Report for Q1 2027: Stock Purchase Agreements, Common Stock, and Accumulated Other Comprehensive Income"** Please note that the title is generated based on the content provided, and it may not be the exact title used in the original article.
Based on the provided financial report articles, I generated the title for the article: **"AAQL's Financial Report for Q1 2027: Stock Purchase Agreements, Common Stock, and Accumulated Other Comprehensive Income"** Please note that the title is generated based on the content provided, and it may not be the exact title used in the original article.
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Overview
Quantum Living Inc. (formerly known as Achison Inc.) is a company that was incorporated in the State of New York on December 29, 2014. During the fiscal year ended March 31, 2026, the company initiated a strategic transition to shift its core business model away from third-party agency and technical platform operations to focus exclusively on the supply and distribution of proprietary brand health products and therapy services.
This transition was a vital strategic pivot to enhance the company’s brand value and establish long-term control over its product supply chain. However, this shift has materially impacted the company’s near-term consolidated financial results and the comparability of its historical financial statements to future periods.
Results of Operation for the three months ended June 30, 2026 and 2025
| Metric | Q1 2026 | Q1 2025 | $ Change | % Change |
|---|---|---|---|---|
| Revenue | $730,117 | $291,438 | $438,679 | 150.52% |
| Cost of revenues | $417,227 | $56,706 | $360,521 | 635.77% |
| Gross profit | $312,890 | $234,732 | $78,158 | 33.30% |
| Gross margin | 42.85% | 80.54% | (37.69%) | - |
| Selling, general and administrative expenses | $635,966 | $372,935 | $263,031 | 70.53% |
| Loss from operations | $(323,076) | $(138,203) | $(184,873) | 133.77% |
| Other income (loss) | $4,567 | $10,831 | $(6,264) | (57.83%) |
| Income tax expenses | $- | $6,000 | $(6,000) | (100.00%) |
| Net loss | $(318,509) | $(133,372) | $(185,137) | 138.81% |
During the three months ended June 30, 2026, the company generated revenues of $730,117, an increase of $438,679 compared to the same period in 2025. This increase was a direct result of the company’s strategic transition, as its revenue now comes entirely from proprietary health/beauty products ($743,969) and therapy services ($(13,852)), compared to legacy online platform services in the prior year period.
Cost of revenues increased to $417,227 in Q1 2026 from $56,706 in Q1 2025, leading to a decrease in gross margin from 80.54% to 42.85%. This was primarily due to the shift from high-margin online platform services to the sale of physical health and beauty products.
Operating expenses increased to $635,966 in Q1 2026 from $372,935 in Q1 2025, mainly due to higher rental and facility costs. The company’s net loss for the three months ended June 30, 2026 was $318,509, compared to a net loss of $133,372 in the same period of 2025.
Equity and Capital Resources
As of June 30, 2026, the company had an accumulated deficit of $2,565,867 and a working capital deficit of $477,410. The increase in the working capital deficit was primarily driven by a $712,859 increase in accounts receivables.
Historically, the company has financed its operations and alleviated working capital deficiencies primarily through advances from a principal shareholder and director, who has indicated the intent to continue providing financial support.
Promissory Notes and November 2025 Assignments and Amendments
During fiscal 2025 and 2026, the company funded a portion of its operations through the issuance of several promissory notes to multiple lenders. On November 25, 2025, the company entered into agreements to assign these notes to Atlantic Equity Holdings Inc. or Empire Street Capital Inc., and the notes were amended to provide for the automatic conversion of the outstanding principal balances into shares of the company’s Class A Common Stock at a fixed conversion price of $0.30 per share.
Going Concern Assessment
The company demonstrates adverse conditions that raise substantial doubt about its ability to continue as a going concern, including negative financial trends, operating losses, accumulated deficit, and other adverse key financial ratios. Management’s plan to alleviate this includes attempts to consummate a business combination, generate sufficient cash flow from operations, and obtain additional working capital funds as loans from the majority shareholder and the President of the company.
Critical Accounting Policies
The company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires making estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses, as well as the related disclosure of contingent assets and liabilities.