Exceed World, Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Exceed World, Inc. has filed its quarterly report (10-Q) for the period ending December 31, 2023, detailing its financial status and operations.</b>

AI Summary

Exceed World, Inc. (EXDW) filed a Quarterly Report (10-Q) with the SEC on February 16, 2024. Exceed World, Inc. filed a 10-Q report for the quarterly period ended December 31, 2023. The filing covers the period from October 1, 2023, to December 31, 2023. The company was incorporated in Delaware and has an IRS Employer Identification No. of 98-1339955. Its principal executive offices are located at 1-23-38-8F, Esakacho, Suita-shi, Osaka, Japan. The filing indicates the company has been subject to Section 13 or 15(d) filing requirements for the past 12 months.

Why It Matters

For investors and stakeholders tracking Exceed World, Inc., this filing contains several important signals. This 10-Q filing provides investors with an update on Exceed World, Inc.'s financial performance and operational status for the most recent fiscal quarter. The report is crucial for understanding the company's financial health, any changes in its business, and its compliance with SEC regulations.

Risk Assessment

Risk Level: low — Exceed World, Inc. shows low risk based on this filing. The filing is a standard 10-Q report, indicating routine disclosure rather than a significant event or financial distress.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to assess Exceed World, Inc.'s performance and outlook.

Key Numbers

• 2023-12-31 — Quarterly Period End Date (Reported period)
• 2023-10-01 — Quarterly Period Start Date (Reported period)
• 2024-02-16 — Filing Date (Date of submission)
• 000-55377 — SEC File Number (Commission file number)

Key Players & Entities

• Exceed World, Inc. (company) — Registrant name
• December 31, 2023 (date) — Quarterly period ended
• October 1, 2023 (date) — Start of quarterly period
• Delaware (jurisdiction) — State of incorporation
• 98-1339955 (identifier) — IRS Employer Identification No.
• 1-23-38-8F, Esakacho, Suita-shi, Osaka Japan (address) — Principal Executive Offices
• +81-6-6339-4177 (phone) — Issuer's telephone number
• 000-55377 (identifier) — Commission File Number

FAQ

Industry Context

Exceed World, Inc. operates within the educational services sector, as indicated by its SIC code.

Regulatory Implications

The filing is a Form 10-Q, which is a mandatory quarterly report for public companies under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the financial statements for revenue, expenses, and profitability for the quarter ended December 31, 2023.
2. Review any disclosures regarding business operations, risks, and legal proceedings.
3. Compare the current quarter's performance to previous periods to identify trends.

Key Dates

• 2023-12-31: Quarterly Period End — End date for the financial reporting period.
• 2024-02-16: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the period ending December 31, 2023, and no prior period comparison data is available within this specific document excerpt.

Key Financial Figures

• $26,000 — st of the Company at a consideration of $26,000. On September 26, 2018, the same date,
• $1 — any issued 12,700,000 common stock at US$1 each to Force Internationale. The resul
• $ — rrency is not US$ are translated into US$, using the exchange rate on the balance
• $122,247 — had income tax expenses of $ 7,174 and $122,247, respectively. Effective tax rate was (

Filing Documents

• exceed_10q124o.htm (10-Q) — 395KB
• ex31.htm (EX-31) — 12KB
• ex32.htm (EX-32) — 8KB
• 0001599916-24-000060.txt (&nbsp;) — 2140KB
• exdw-20231231.xsd (EX-101.SCH) — 18KB
• exdw-20231231_cal.xml (EX-101.CAL) — 11KB
• exdw-20231231_def.xml (EX-101.DEF) — 16KB
• exdw-20231231_lab.xml (EX-101.LAB) — 142KB
• exdw-20231231_pre.xml (EX-101.PRE) — 107KB
• exceed_10q124o_htm.xml (XML) — 269KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION ITEM 1

FINANCIAL STATEMENTS - UNAUDITED

FINANCIAL STATEMENTS - UNAUDITED F1 CONSOLIDATED BALANCE SHEETS - UNAUDITED F1 CONSOLIDATED F2 CONSOLIDATED F3 CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED F4 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS F5-F6 ITEM 2

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS 3 ITEM 3

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 3 ITEM 4

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 4

-OTHER INFORMATION

PART II-OTHER INFORMATION ITEM 1

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 5 ITEM 1A

RISK FACTORS

RISK FACTORS ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 5 ITEM 3 DEFAULTS UPON SENIOR SECURITIES 5 ITEM 4 MINE SAFETY DISCLOSURES 5 ITEM 5 OTHER INFORMATION 5 ITEM 6 EXHIBITS 5

SIGNATURES

SIGNATURES 6 -2- Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION ITEM 1

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS EXCEED WORLD, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) As of As of December 31, 2023 September 30, 2023 (Unaudited) ASSETS Current Assets Cash $ 17,963,261 $ 18,165,169 Accounts receivable 52,636 49,860 Income tax recoverable 833,260 587,663 Prepaid expenses 154,561 112,363 Inventories 1,689,804 1,759,542 Other current assets 432,482 411,343 TOTAL CURRENT ASSETS 21,126,004 21,085,940 Non-current Assets Property, plant and equipment, net 314,858 310,943 Software, net 165,162 189,431 Operating lease right-of-use assets 572,263 623,650 Other intangible assets, net 127,635 120,852 Long-term prepaid expenses 35,859 34,527 Deferred tax assets 705,403 675,000 Insurance funds 58,380 53,796 Security deposits 200,273 189,630 TOTAL NON-CURRENT ASSETS 2,179,833 2,197,829 TOTAL ASSETS $ 23,305,837 $ 23,283,769 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $ 824,459 $ 642,483 Accrued expenses and other payables 494,885 592,740 Contingency liability 270,125 406,635 Income tax payable - 436,448 Deferred income 679,985 1,163,548 Finance lease obligations, current 11,379 13,925 Operating lease liabilities, current 281,857 299,947 Due to related parties 1,772,752 1,640,160 Due to director 741,248 741,248 Other current liabilities 589,189 410,106 TOTAL CURRENT LIABILITIES 5,665,879 6,347,240 Non-current Liabilities Finance lease obligations, non-current 26,805 27,020 Operating lease liabilities, non-current 260,691 295,566 TOTAL NON-CURRENT LIABILITIES 287,496 322,586 TOTAL LIABILITIES 5,953,375 6,669,826 Shareholders' Equity Preferred stock ($ 0.0001 par value, 20,000,000 shares authorized; 0 issued and outstanding as of December 31, 2023 and September 30, 2023) - - Common stock ($ 0.0001 par value, 500,000

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF December 31, 2023 (UNAUDITED) NOTE 1 - ORGANIZATION, DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Exceed World, Inc. (the "Company"), was incorporated under the laws of the State of Delaware on November 25, 2014. On September 26, 2018, e-Learning Laboratory Co., Ltd. ("e-Learning"), a direct wholly owned subsidiary of Force International Holdings Limited, which was incorporated in Hong Kong with limited liability ("Force Holdings"), entered into a share purchase agreement with Force Internationale Limited ("Force Internationale"), the holding company of Force Holdings, in which e-Learning agreed to sell and Force Internationale agreed to purchase 74.5% equity interest of the Company at a consideration of $26,000. On September 26, 2018, the same date, Force Internationale entered into a share purchase agreement with the Company, in which Force Internationale agreed to sell and the Company agreed to purchase 100% equity interest of Force Holdings. In consideration of the agreement, the Company issued 12,700,000 common stock at US$1 each to Force Internationale. The results of these transactions are that Force Internationale is an 84.4% owner of the Company and the Company is a 100% owner of Force Holdings. On December 6, 2018, the Company entered into a share contribution agreement with Force Internationale. Under this agreement, the Company transferred 100% of the equity interest of School TV Co., Ltd. ("School TV"), to Force Internationale without consideration. This agreement was approved by the board of directors of the Company, Force Internationale and School TV. Upon the completion of the disposal, School TV was deconsolidated from the Company's consolidated financial statements. As of December 31, 2023, the Company operates through our wholly owned subsidiaries, which are engaged in provision of the educational services through an internet platform called "Force Club". The Company has elected Se

financial statements for the year ended September 30, 2023, included in our Form 10-K

financial statements for the year ended September 30, 2023, included in our Form 10-K. NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. Inter-company accounts and transactions have been eliminated. USE OF ESTIMATES The presentation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as the date of the financial statements and the reported amounts of revenue and expenses reported in those financial statements. Certain accounting policies that contain subjective management estimates and assumptions include those related to write-down in value of inventory, useful lives and impairment of long-lived assets and legal contingencies. The extent to which the COVID-19 pandemic may directly or indirectly impact our business, financial condition, and results of operations is highly uncertain and subject to change. Due to the high uncertainty of the evolving situation, the Company has limited visibility on the full impact brought upon by the COVID-19 pandemic and the related financial impact cannot be estimated at this time. Operating results in the future could vary from the amounts derived from management's estimates and assumptions. 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, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations betw

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View this 10-Q filing on SEC EDGAR