Antiaging Quantum Living Inc.

Antiaging Quantum Living Inc. operates in the online advertising industry, which is described as highly competitive, rapidly evolving, and subject to constant technological change and intense marketing by providers with similar products and services. The company also operates in the health and wellness sector through its subsidiaries, providing proprietary brand health products, dietary supplements, and offline physical therapy services. The filing does not disclose market size or growth rate for these industries.

The filing names no specific primary competitors but states that a few of the company's competitors have substantially greater financial, technical and marketing resources, larger customer bases, longer operating histories, greater name recognition and more established relationships in the industry. Management identifies the company's key competitive advantages as its ability to deliver reliable, high quality service in a cost-effective manner, though no assurance is provided that these advantages will enable success against comparable service offerings from competitors.

The company generates revenue from three streams: sales of health and beauty products, dietary supplements, and proprietary branded health foods through its mobile application, physical retail stores, and wholesale distribution to third-party e-commerce platforms; offline physical therapy and related health services provided through physical retail stores on a single-use or multi-session package basis; and historically, online platform technical operation support and maintenance services, which were formally ceased effective January 2026. Revenue is recognized on a gross basis as the company acts as principal for each revenue stream. Customer segments include direct consumers, wholesale partners, and professional individuals and small companies using the online advertising platform.

The company's product and service lines include sales of goods, which generated $180,950 ¹ in fiscal year 2026 from health and beauty products, dietary supplements, and proprietary branded health foods sold directly to consumers through the company's mobile application and physical retail stores, as well as distributed wholesale to third-party e-commerce platforms and partners. Offline physical therapy services generated $141,828 ² in fiscal year 2026, provided through physical retail stores on a single-use or multi-session package basis with a one-year validity period. The company also historically provided online platform technical operation support and maintenance services, which generated $711,607 ³ (or 68.8% ⁴ of total revenue) in fiscal year 2026 and $817,898 ⁵ (or 100% ⁶ of total revenue) in fiscal year 2025, before these services were formally ceased in January 2026.

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. Pursuant to board authorization in June 2025, the company ceased its online platform technical operation support and maintenance services in staggered phases, concluding in September 2025 and January 2026. On November 25, 2025, the company entered into four separate Assignment and Amendment of Promissory Note agreements, resulting in the automatic conversion of outstanding promissory notes into shares of Class A Common Stock at a fixed conversion price of $0.30 ⁷ per share, issuing an aggregate of 4,280,340 ⁸ shares of Class A Common Stock, consisting of 1,893,796 ⁹ shares issued to Atlantic Equity Holdings Inc. and 2,386,544 ¹⁰ shares issued to Empire Street Capital Inc. On June 6, 2024, the company filed a Certificate of Amendment to increase authorized shares from thirty million (30,000,000) ¹¹ shares of common stock, par value $0.001 ¹² per share, to six billion (6,000,000,000) ¹³ shares of common stock, par value $0.00001 ¹⁴ per share, categorized as 1,200,000,000 ¹⁵ Class A shares, 1,200,000,000 ¹⁶ Class B shares, 1,200,000,000 ¹⁷ Class C shares, 1,200,000,000 ¹⁸ Class D shares, and 1,200,000,000 ¹⁹ Class E shares.

For the fiscal year ended March 31, 2026, total revenues were $1,034,385 ²⁰, compared to $817,898 ²¹ in the prior year, representing an increase of 26.47% ²². Gross profit increased to $702,123 ²³ with a gross margin of 67.9% ²⁴, compared to gross profit of $428,517 ²⁵ with a gross margin of 52.4% ²⁶ in the prior year. Net loss was $837,646 ²⁷ compared to a net loss of $720,409 ²⁸ in the prior year, an increase of 16.27% ²⁹. The company had an accumulated deficit of $2,247,358 ³⁰ as of March 31, 2026, compared to $1,409,712 ³¹ as of March 31, 2025.

The company's primary growth vector is the strategic transition to focus exclusively on the supply and distribution of proprietary brand health products and therapy services, shifting away from third-party agency and technical platform operations. Management states this transition is a vital strategic pivot to enhance brand value and establish long-term control over the product supply chain. The new therapy services generated $141,828 ³² and proprietary health/beauty products generated $180,950 ³³ in fiscal year 2026, representing new revenue streams that did not exist in the prior year. The company has established multiple subsidiaries in the Asia-Pacific and Chinese markets, including AAQL Inc. (BVI Holding), AAQL HK Limited (Hong Kong Holding), Antiaging Doctor Hangzhou Holding LTD, Dao Ling Doctor (Zhejiang) Health Management Limited, and Dao Ling Doctor (Huzhou) Health Management Limited, to support this expansion.

The company's second growth vector involves expanding its offline physical therapy services and health/beauty product sales through physical retail stores and its mobile application. The company began transitioning its business model in January 2026 to become a primary product supplier of proprietary brands to enhance control over the health and wellness supply chain. The company has repurposed its retained centralized corporate resources—including shared administrative personnel, centralized accounting and sales teams, and shared server infrastructure—to support the expansion and scaling of its continuing proprietary health products and therapy service lines.

Gross margin improved from 52.4% ³⁴ in fiscal year 2025 to 67.9% ³⁵ in fiscal year 2026, primarily because new therapy services and proprietary products carry higher profit margins compared to the labor-intensive technical operation support and maintenance services provided in the prior year. However, management warns that because centralized resources have been retained and absorbed by continuing operations, near-term margin compression is expected as retained organizational overhead is now supported by a smaller, albeit strategically refocused, revenue base. Operating expenses increased to $1,537,524 ³⁶ from $1,218,476 ³⁷ in the prior year, mainly due to increases in rental and facility costs.

The company's operational outlook involves the cessation of online platform technical operation support and maintenance services, which were phased out in staggered phases concluding in September 2025 and January 2026. The company has retained its shared personnel and infrastructural resources in their entirety and repurposed them to support the expansion of continuing proprietary health products and therapy service lines. The company maintains physical retail stores and a mobile application for direct-to-consumer sales, and distributes wholesale to third-party e-commerce platforms and partners. The company's principal executive office is at 135-27 38th Ave #388, Flushing, NY 11354, provided at no cost by the President.

The company's capital allocation includes purchases of fixed assets and intangible assets totaling $162,434 ³⁸ in fiscal year 2026, compared to $63,345 ³⁹ in fiscal year 2025. The company received advances of $460,000 ⁴⁰ from related parties for working capital purposes in fiscal year 2026, and $364,303 ⁴¹ in fiscal year 2025. The company borrowed $nil ⁴² from unrelated third parties in fiscal year 2026, compared to $803,734 ⁴³ in fiscal year 2025. The company has not declared any cash dividends on its common stock since inception and does not anticipate paying any dividends in the foreseeable future. The company does not have any equity compensation plans.

A key headwind is that the cessation of technical services will materially decrease consolidated revenues in the near term due to the loss of technical service revenue, while general and administrative expenses and overall operating cost structure will not experience a proportional decrease because centralized resources have been retained. The company expects near-term margin compression as retained organizational overhead is now supported by a smaller revenue base. The company has an accumulated deficit of $2,247,358 ⁴⁴ and a working capital deficit of $459,038 ⁴⁵ as of March 31, 2026, raising substantial doubt about its ability to continue as a going concern.

The company faces constraints related to its reliance on advances from a principal shareholder and director to finance operations and alleviate working capital deficiencies, with no formal written commitment or binding agreement in place for continued funding. The company's online advertising business faces intense competition from competitors with substantially greater financial, technical and marketing resources, larger customer bases, longer operating histories, greater name recognition and more established relationships. The company's Class A common stock trades on the OTC Markets and is subject to penny stock rules, which could impede sale of shares in the secondary market and reduce liquidity.

The company has incurred a net loss of $837,646 ⁴⁶ for the year ended March 31, 2026, has an accumulated deficit of $2,247,358 ⁴⁷, and a working capital deficit of $459,038 ⁴⁸, which raise substantial doubt about its ability to continue as a going concern. The company relies on advances from a principal shareholder and director to finance operations, with no formal written commitment or binding agreement in place for continued funding. The strategic transition away from technical services will materially decrease consolidated revenues in the near term while operating costs remain largely fixed, creating expected near-term margin compression. The online advertising industry is highly competitive, and competitors have substantially greater financial, technical and marketing resources. The company's common stock is subject to penny stock rules, which could impede secondary market sales and reduce liquidity.

Management's message emphasizes a strategic transition to shift the 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, describing this as a vital strategic pivot to enhance brand value and establish long-term control over the product supply chain. Management acknowledges that this shift materially impacts near-term consolidated financial results and the comparability of historical financial statements to future periods. Management states that while consolidated revenues will materially decrease in the near term due to the loss of technical service revenue, general and administrative expenses and overall operating cost structure will not experience a proportional decrease, and the company should expect near-term margin compression as retained organizational overhead is now supported by a smaller, albeit strategically refocused, revenue base. Management's plan to address substantial doubt about going concern includes attempting to improve business profitability, generate sufficient cash flow from operations, and obtain additional working capital funds from the majority shareholder and President.