Exceed World, Inc. Files Q3 2024 10-Q

TL;DR

Exceed World (EXWD) filed its Q3 10-Q, check financials for educational services firm.

AI Summary

Exceed World, Inc. filed its 10-Q for the period ending June 30, 2024. The company, formerly Brilliant Acquisition, Inc., is based in Osaka, Japan, and operates in educational services. The filing covers financial data for the third quarter of fiscal year 2024, with comparisons to previous periods.

Why It Matters

This filing provides investors with the latest financial performance and position of Exceed World, Inc., crucial for understanding its current operational health and future prospects.

Risk Assessment

Risk Level: low — The filing is a standard quarterly report with no immediate red flags or significant negative disclosures.

Key Numbers

• 2024-06-30 — Reporting Period End Date (Indicates the end of the financial quarter being reported.)
• 2024-08-19 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Exceed World, Inc. (company) — Filer of the 10-Q
• Brilliant Acquisition, Inc. (company) — Former name of Exceed World, Inc.
• 20240630 (date) — End of the reporting period
• 20240819 (date) — Filing date

FAQ

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
• $156,790 — 2023, the Company's deferred income was $156,790 and $1,163,548 respectively. During the
• $1,163,548 — pany's deferred income was $156,790 and $1,163,548 respectively. During the nine months en

Filing Documents

• exceed_10q324o.htm (10-Q) — 485KB
• ex31.htm (EX-31) — 12KB
• ex32.htm (EX-32) — 8KB
• 0001599916-24-000209.txt ( ) — 2334KB
• exdw-20240630.xsd (EX-101.SCH) — 19KB
• exdw-20240630_cal.xml (EX-101.CAL) — 11KB
• exdw-20240630_def.xml (EX-101.DEF) — 16KB
• exdw-20240630_lab.xml (EX-101.LAB) — 146KB
• exdw-20240630_pre.xml (EX-101.PRE) — 109KB
• exceed_10q324o_htm.xml (XML) — 314KB

- 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 June 30, 2024 September 30, 2023 ASSETS Current Assets Cash $ 19,534,471 $ 18,165,169 Accounts receivable 130,373 49,860 Income tax recoverable 68,719 587,663 Prepaid expenses 158,584 112,363 Inventories 650,320 1,759,542 Other current assets 1,881 411,343 TOTAL CURRENT ASSETS 20,544,348 21,085,940 Non-current Assets Property, plant and equipment, net 581,937 310,943 Software, net 86,155 189,431 Operating lease right-of-use assets 601,618 623,650 Other intangible assets, net 112,463 120,852 Long-term prepaid expenses 30,567 34,527 Deferred tax assets 1,092,739 675,000 Insurance funds 54,058 53,796 Security deposits 176,350 189,630 TOTAL NON-CURRENT ASSETS 2,735,887 2,197,829 TOTAL ASSETS $ 23,280,235 $ 23,283,769 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $ 2,804,940 $ 642,483 Accrued expenses and other payables 1,257,811 592,740 Contingency liability 44,029 406,635 Income tax payable - 436,448 Deferred income 156,790 1,163,548 Finance lease obligations, current 17,756 13,925 Operating lease liabilities, current 297,754 299,947 Due to related parties 1,903,810 1,640,160 Due to director 741,248 741,248 Other current liabilities 847,623 410,106 TOTAL CURRENT LIABILITIES 8,071,761 6,347,240 Non-current Liabilities Finance lease obligations, non-current 69,210 27,020 Operating lease liabilities, non-current 277,698 295,566 TOTAL NON-CURRENT LIABILITIES 346,908 322,586 TOTAL LIABILITIES 8,418,669 6,669,826 Shareholders' Equity Preferred stock ($ 0.0001 par value, 20,000,000 shares authorized; 0 issued and outstanding as of June 30, 2024 and September 30, 2023) - - Common stock ($ 0.0001 par value, 500,000,000 shares authorized

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF June 30, 2024 (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 June 30, 2024, 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 September

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. Operating results in the future could vary from the amounts derived from management's estimates and assumptions. CONCENTRATION OF CREDIT RISK Financial instruments that potentially expose the Company to concentrations or credit risk consist primarily of cash. The Company places its majority of cash with financial institutions with high credit ratings and quality located in Japan. Cash balances in bank accounts in Japan are insured by the Deposit Insurance Corporation of Japan up to a limitation of JPY10 million per depositor per financial institution. 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 wh

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