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EpicQuest Education Announces First Half Fiscal Year 2024 Financial Results and Operations Update

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EpicQuest Education Group International (NASDAQ: EEIQ) reported financial results for the first half of fiscal year 2024 ended March 31, 2024. The company saw a 22% increase in revenue to $4.16 million, primarily due to increased enrollment in international foundational and collaborative programs. However, gross profit decreased by 9.3% to $2.40 million, and gross margin fell to 57.7% from 77.5% in the prior year period.

Operating expenses rose 12.1% to $6.55 million, resulting in an operating loss of $4.14 million. Net loss increased to $3.52 million or $0.26 per share. The company's cash position decreased to $0.59 million as of March 31, 2024. EpicQuest Education is focusing on expanding its international programs and partnerships to drive future growth.

EpicQuest Education Group International (NASDAQ: EEIQ) ha riportato i risultati finanziari per la prima metà dell'anno fiscale 2024, conclusasi il 31 marzo 2024. L'azienda ha registrato un aumento del 22% dei ricavi, arrivando a $4.16 milioni, principalmente a causa dell'aumento delle iscrizioni ai programmi internazionali di base e collaborativi. Tuttavia, il profitto lordo è diminuito del 9,3%, scendendo a $2.40 milioni, e il margine lordo è sceso al 57,7% rispetto al 77,5% nello stesso periodo dell'anno precedente.

Le spese operative sono aumentate del 12,1%, raggiungendo $6.55 milioni, con una perdita operativa di $4.14 milioni. La perdita netta è aumentata a $3.52 milioni, ovvero $0.26 per azione. La liquidità dell'azienda è diminuita a $0.59 milioni al 31 marzo 2024. EpicQuest Education si sta concentrando sull'espansione dei suoi programmi e partnership internazionali per promuovere la crescita futura.

EpicQuest Education Group International (NASDAQ: EEIQ) informó sobre sus resultados financieros para la primera mitad del año fiscal 2024, que finalizó el 31 de marzo de 2024. La compañía vio un aumento del 22% en ingresos, alcanzando $4.16 millones, principalmente debido al incremento de inscripciones en programas internacionales fundamentales y colaborativos. Sin embargo, el beneficio bruto disminuyó un 9.3% a $2.40 millones y el margen bruto cayó al 57.7% desde el 77.5% en el mismo periodo del año anterior.

Los gastos operativos aumentaron un 12.1%, alcanzando $6.55 millones, lo que resultó en una pérdida operativa de $4.14 millones. La pérdida neta aumentó a $3.52 millones o $0.26 por acción. La posición de efectivo de la compañía disminuyó a $0.59 millones al 31 de marzo de 2024. EpicQuest Education se está centrando en expandir sus programas y asociaciones internacionales para impulsar el crecimiento futuro.

EpicQuest Education Group International (NASDAQ: EEIQ)는 2024 회계연도 전반기에 대한 재무 결과를 발표했습니다. 이 회계연도는 2024년 3월 31일로 종료됩니다. 회사는 22%의 매출 증가를 기록하여 416만 달러에 도달했으며, 이는 주로 국제 기초 및 협력 프로그램의 등록 증가에 기인합니다. 그러나 총 이익은 9.3% 감소하여 240만 달러가 되었고, 총 이익률은 전년 동기 대비 77.5%에서 57.7%로 하락했습니다.

운영 비용은 12.1% 증가하여 655만 달러에 달했으며, 이로 인해 운영 손실은 414만 달러에 달했습니다. 순손실은 352만 달러 또는 주당 0.26 달러로 증가했습니다. 2024년 3월 31일 기준으로 회사의 현금 보유량은 59만 달러로 감소했습니다. EpicQuest Education은 미래 성장을 위해 국제 프로그램 및 파트너십을 확장하는 데 주력하고 있습니다.

EpicQuest Education Group International (NASDAQ: EEIQ) a rapporté ses résultats financiers pour la première moitié de l'exercice fiscal 2024, se terminant le 31 mars 2024. L'entreprise a connu une augmentation de 22% des revenus, atteignant 4,16 millions de dollars, principalement en raison de l'augmentation des inscriptions aux programmes fondamentaux et collaboratifs internationaux. Cependant, le bénéfice brut a diminué de 9,3%, passant à 2,40 millions de dollars, et la marge brute est tombée à 57,7% contre 77,5% pendant la même période l'année précédente.

Les dépenses d'exploitation ont augmenté de 12,1% pour atteindre 6,55 millions de dollars, entraînant une perte opérationnelle de 4,14 millions de dollars. La perte nette a augmenté à 3,52 millions de dollars, soit 0,26 dollar par action. La position de trésorerie de l'entreprise a diminué à 0,59 million de dollars au 31 mars 2024. EpicQuest Education se concentre sur l'expansion de ses programmes et partenariats internationaux pour stimuler la croissance future.

EpicQuest Education Group International (NASDAQ: EEIQ) berichtete über die finanziellen Ergebnisse für die erste Hälfte des Geschäftsjahres 2024, das am 31. März 2024 endete. Das Unternehmen verzeichnete einen Umsatzanstieg von 22% auf 4,16 Millionen Dollar, hauptsächlich bedingt durch eine gestiegene Einschreibung in internationale Grund- und Kooperationsprogramme. Der Bruttogewinn hingegen sank um 9,3% auf 2,40 Millionen Dollar, und die Bruttomarge fiel von 77,5% im Vorjahreszeitraum auf 57,7%.

Die Betriebskosten stiegen um 12,1% auf 6,55 Millionen Dollar, was zu einem operativen Verlust von 4,14 Millionen Dollar führte. Der Nettoverlust erhöhte sich auf 3,52 Millionen Dollar oder 0,26 Dollar pro Aktie. Die liquidität des Unternehmens verringerte sich am 31. März 2024 auf 590.000 Dollar. EpicQuest Education fokussiert sich auf die Erweiterung internationaler Programme und Partnerschaften, um zukünftiges Wachstum voranzutreiben.

Positive
  • Revenue increased by 22% to $4.16 million compared to the year-ago period
  • Increased enrollment in international foundational and collaborative programs
  • Expansion of partnerships with prestigious universities like Peking University and Shanghai Jiao Tong University
  • Development of new collaborative programs with potential for increased student enrollment
Negative
  • Gross profit decreased by 9.3% to $2.40 million
  • Gross margin fell to 57.7% from 77.5% in the prior year period
  • Operating loss increased to $4.14 million from $3.19 million
  • Net loss widened to $3.52 million from $3.00 million
  • Cash and cash equivalents decreased by 88.2% to $0.59 million

Insights

The financial results for EpicQuest Education Group International (EEIQ) show mixed performance. Revenue increased by 22% to $4.16 million, primarily driven by growth in international foundational and collaborative programs. However, gross profit decreased by 9.3% to $2.40 million due to higher costs of services, resulting in a lower gross margin of 57.7% compared to 77.5% in the previous year.

Operating expenses increased by 12.1% to $6.55 million, leading to a wider operating loss of $4.14 million. The net loss expanded to $3.52 million, or $0.26 per share. The company's cash position declined significantly to $0.59 million, down 88.2% from the previous period.

While revenue growth is positive, the declining profitability and cash position are concerning. The company is seeking additional financing for new projects, which may be necessary given the current cash burn rate. The success of international programs and potential AI-powered learning platforms could be key to future growth, but financial stability remains a challenge in the near term.

EpicQuest Education's strategy of internationalization and focus on practical, career-oriented programs is well-aligned with current trends in higher education. The company's foundational and collaborative programs, particularly in China with prestigious institutions like Peking University and Shanghai Jiao Tong University, represent a significant opportunity for growth and a pipeline for future international students.

The introduction of co-op programs at EduGlobal College is a smart move, as it enhances the value proposition for students by combining academic learning with practical work experience. This could improve domestic recruitment efforts and student outcomes.

The development of an AI-powered tutoring and learning platform shows forward-thinking, potentially improving student engagement and learning outcomes. However, the effectiveness and implementation of such technology will be crucial.

While the company's diverse program offerings and international partnerships are promising, the financial challenges and increased operating costs suggest that scaling efficiently remains a significant hurdle. The success of these initiatives will depend on effective execution and financial management in the coming years.

Company Revenue Increases 22% as Compared to the Year-Ago Period

MIDDLETOWN, Ohio, Oct. 7, 2024 /PRNewswire/ -- EpicQuest Education Group International Limited (NASDAQ: EEIQ), ("EpicQuest Education", "EEIQ" or the "Company"), a provider of comprehensive education solutions for domestic and international students seeking college and university degrees in the US, Canada and the UK, today announced its first half financial results for the six months ended March 31, 2024 and an operations update.

"We are pleased to announce a 22% increase in revenue for first half of our fiscal year as compared to the year-ago period. This increase was primarily due to the success of our innovative foundational and collaborative programs that we offer abroad where international students study in their home countries as they prepare for possible study abroad. In addition to this representing a unique revenue stream for the Company, this also creates a potential pool of future students to attend our owned and operated Davis University and EduGlobal College," commented EpicQuest Education CEO Jianbo Zhang.

"Although our gross margin decreased due to establishing relationships with new recruitment agencies and higher administrative costs, we believe that we will achieve synergies in future periods that could lower our operating costs. We are confident that we are meeting the current challenges of the education sector by offering practical academic programming in an array of technical fields that lead to good and stable careers."

"We specialize in providing individualized academic journeys to our students which include co-op programs that can rationalize tuition costs while helping to secure employment. We are also in the process of developing an AI-powered tutoring and learning platform for adaptive learning and real-time feedback which has the potential to improve student engagement and achievement. We believe that our innovative business model offers a solid return on investment for both our students and our shareholders," concluded CEO Jianbo Zhang.

First Half 2024 Financial Results Ended March 31, 2024

Revenues were $4.16 million for the first half of fiscal 2024 compared to $3.42 million for the first half of fiscal 2023, representing an increase of $0.74 million, or 21.7%. The increase in revenue was mainly due to an increase in students enrolling in the Company's international foundational and collaborative programs that are offered by Davis University and EduGlobal College.

Gross profit was $2.40 million for the first half of fiscal 2024 compared to $2.65 million for the same period of 2023, representing a decrease of $0.25 million, or 9.3%. The decrease was primarily due to the $0.99 million increase in costs of services for the first half of fiscal 2024 compared to the same period of 2023. This was attributable to increased recruiting costs as our business returned to normal operations. As a result, our gross margin decreased to 57.7% for the first half ended March 31, 2024, from 77.5% for the same period of 2023.

Operating Expenses were $6.55 million for the first half of fiscal 2024 compared to $5.84 million for the same period of 2023, representing an increase of $0.71 million, or 12.1%. The increase was due to a 46.7% increase in selling expenses to $0.70 million from $0.47 million for the same period of 2023 and a 9.0% increase in general and administrative expenses to $5.85 million from $5.37 million. Selling expenses include marketing, advertising, commissions and travel expenses incurred due to an increase in recruiting activities. General and administrative expenses in both periods are due to non-cash expenses attributable to share-based compensation granted to directors, officers and employees for retention purposes following the Company's IPO in March of 2021, as well as professional fees that were primarily related to the Company's expansion efforts.

Operating loss was $4.14 million for the first half of fiscal 2024 compared to an operating loss of $3.19 million for the same period of 2023. This was due to the higher costs of services as well as higher operating costs and expenses in the current period.

Income tax recovery was $0.11 million for the first half of fiscal 2024 as compared to income tax recovery of $0.16 million for the same period of 2023.

Net loss was $3.52 million for the first half of fiscal 2024 compared to a net loss of $3.00 million for the same period of 2023, which was due to factors as discussed above.

Net Loss Per Basic and Diluted Share for the first half of fiscal 2024 was $0.26 compared to a net loss of $0.24 per basic and diluted share for the same period of 2023. The weighted average number of shares used in the computation of basic and diluted earnings per share for the first half of 2024 was 12,370,905 shares compared to 11,469,800 shares for basic and diluted earnings per share in the prior year period.

Financial Condition

As of March 31, 2024, the Company had $0.59 million in cash and cash equivalents, a decrease of $4.38 million or 88.2% as compared to $4.97 million as of September 30, 2023. As of March 31, 2024, working capital was $4.47 million (current assets minus current liabilities) and the current ratio (current assets divided by current liabilities) was 1.71, as compared to working capital of $1.83 million and a current ratio of 1.27 as of September 30, 2023. Stockholders' equity as of March 31, 2024 was $7.09 million, a decrease of $2.06 million or 22.5% as compared to $9.14 million as of September 30, 2023.

Liquidity and Capital Resources

Net cash used in operating activities for the six months ended March 31, 2024 was $10.07 million as compared to $4.34 million for the six months ended March 31, 2023. This increase was primarily due to the changes in net income and other working capital balances. Changes in these balances are included in the changes in assets and liabilities presented in the consolidated statement of cash flows.  

Net cash provided by investing activities was $4.49 million for the six months ended March 31, 2024 as compared to $0.56 million for the six months ended March 31, 2023. The net cash provided by investing activities for the six months ended March 31, 2024, was attributable to a joint venture related to two soccer games that is being scheduled for the Argentina World Cup Champion team. For the six months ended March 31, 2024, we received $3.74 million in cash for this joint venture, and $0.76 million in proceeds resulting from the sale of property and equipment adjacent to the campuses of Miami University Regionals.

Net cash provided by financing activities was $1.21 million for the six months ended March 31, 2024 as compared to net cash used in financing activities of $1.45 million for the six months ended March 31, 2023. For the six months ended March 31, 2024, we raised $0.8 million through equity financing, and we borrowed $0.41 million from a third  party. The net cash used in investing activities for the six months ended March 31, 2023 was attributable to the purchase price allocation of acquiring 70% of the holding company of Davis University on December 1, 2022, when the change of control on Davis College became effective. As the tuition and service fees are paid at the beginning of each academic year, the Company shall seek additional financing for the purpose of new projects, such as those related to an artificial intelligence-based learning platform.

Operations Update

Our current operations provide a diversified revenue stream that balances both our owned and operated colleges and our extensive recruiting relationships. We believe that our educational niche provides practical educational programming that meaningfully connects to students who may not ordinarily pursue higher education but who see our programs as an effective way to reach their career goals. We believe that this positive and effective business model is a successful one for providing a solid return on investment for our students.

North America Recruiting Update

We recruit domestically and internationally for our owned and operated schools. Our domestic recruitment for Davis University ("Davis"), located in Toledo, Ohio. extends to the entire state of Ohio, and we have enlisted industry and local partners to diversify our student population. Our domestic recruiting for EduGlobal College ("EduGlobal"), located in Vancouver, Canada, has been enhanced by our recently announced cooperative diploma programs. The co-op programs, which began for the Fall semester in September 2024, entail students alternating between attending academic semesters with working at paid, full-time jobs. We believe that this will enhance our domestic recruiting efforts since the co-op programs provides students with a great hybrid approach and students with a potentially high return on investment. We recruit international students directly for Davis and EduGlobal through our recruiting office based overseas in Sri Lanka, as well as through authorized recruiting agents, and offer international students the opportunity to study in our schools and other North America institutions through our innovative foundational programs.

We also recruit for the English Language Center of Miami University which offers international students the potential entrée into an elite US university with world-class facilities and an outstanding academic faculty. We have a long-term recruitment relationship with the Miami University Regionals for the Middletown and Hamilton campuses which dates back to 2013. The English Language Center at Miami University Regionals continues to be a popular option for international students as it offers a clear pathway to achieving both a bachelor's and advanced university degrees. In 2024, 100 students are expected to attend in-person classes in the English Language Program at the Miami University Regional Campuses Our recruitment of international students for enrollment at our owned and operated schools, as well as for Miami University Regionals, represents an important revenue stream for the company.

International Foundational and Collaborative Programs

We have established several programs internationally that provide a current revenue stream for the company while developing an internationally based recruitment pool for our owned and operated Davis University and EduGlobal College. Foundational programs are a course of study for international students to acquire the skills needed to ensure their success at colleges and universities. We believe that Davis' two-year foundational programs are able to secure sustainable revenue because the retention rate of students from the first to the second year is usually close to 100%. In addition, our collaborative programs represent academic programs that are developed in collaboration with elite educational institutions around the world intended to create premier academic programming in specific courses of study. Our current international foundational and collaborative programs include:

Peking University. We expect to have up to 80 students registered for enrollment in our foundational program in 2024 at Peking University, a preeminent university in China. This compares with only 12 students that were enrolled in our foundational program at Peking University in September 2023, though recruiting for this new Company program only began in August 2023.

Shanghai Jiao Tong University. An agreement was entered into to establish a foundational program on one of its main campuses, effective May 8, 2024 to December 31, 2026. It is expected that 50 students will enroll in this first year of the program in 2024. Starting in the 2025 academic year, the program is expected to consist of at least 100 students. The two-year program enables students to apply for admission to Davis University and attend two years at its Toledo, Ohio campus where they can apply their course credits to achieve a four-year bachelor's degree. It can also serve as a means of admission to one of Davis' pathway programs with schools such as Northeastern University, Central Michigan University and Sofia University, among others.

Davis University Collaborative Programs Update

Chongqing Institute of Technology and Business. Davis has an ongoing collaboration program with Chongqing Institute of Technology and Business for graphic design which provides Davis students the opportunity to take coursework at Chongqing College for three years with no additional coursework required on Davis' campus in Toledo. As of September 2024, there were 150 Davis students enrolled in both the first and second year of the program, with an additional 100 students expected to enroll in September of 2025. Upon completion of the program, Davis students receive a diploma from Chongqing College and an associate degree certificate from Davis. In addition, upon graduation, Davis students can choose to transfer to its Bachelor of Science program in Toledo, Ohio, or university partners to pursue bachelor's degrees.

Shijiazhuang College of Applied Technology. A recently announced agreement between Davis and Shijiazhuang College of Applied Technology ("Shijiazhuang College") outlines a proposed collaboration for the two schools to mutually develop an Advertising and Art Design diploma program, to be taught in both Toledo, Ohio, and Hebei Province, China; the goal is to enroll 100 students every year for seven years. The program's recruitment in China will be officially included in China's National Admission Plan to General Universities and Colleges, and student candidates who achieve the general diploma admission score will be selected for this program through the official admission procedure in China. Graduates of the three-year program will receive a Hebei Province Higher Vocational College Graduation Certificate from Shijiazhuang College and an Associate's Degree from Davis.

Guangdong Communications Polytechnic. A recently announced agreement between Davis and Guangdong Communications Polytechnic outlines a proposed collaboration for the two schools to jointly run the Modern Logistics Management specialty education program at Davis. This program has been formally approved by the Guangdong Provincial Department of Education which enables Davis to recruit up to 100 students starting in September 2025 through September 2027; up to 300 students in total may be enrolled into this program.

Peking University School of Education. Davis entered into an agreement with Peking University School of Education in August 2023 for a two-year continuing education and training program. During the first two years of the program, Davis College students take course work on the main campus of Peking University; the remainder of the course work is to be taken at the Davis campus in Toledo, Ohio. The education program with Peking University, a preeminent university in China, began on September 1, 2023, with an enrollment to be capped at 50 Davis students. Peking University is regarded as one of the largest and highest ranked universities in China.

Our strategic plan is to achieve sustainable growth through our strategy of internationalization. This refers to Davis and EduGlobal, our owned and operated colleges, as well as our recruiting relationship with Miami University. To achieve our strategic goals, we are focused on broadening our academic programming and diversifying and growing our student base. We believe that our strategy of internationalization, which also includes working collaborations around the world, brings out the very best in academia and student achievement.

About EpicQuest Education Group International Limited 

EpicQuest Education Group International Limited ("EpicQuest Education" or the "Company") provides comprehensive education solutions for domestic and international students seeking university and college degrees in the US, Canada and the UK. The Company owns and operates EduGlobal College, based in British Columbia, Canada, which focuses on English proficiency educational programming for students pursuing academic degrees. The Company operates and is a 70% owner of Davis College, a career training college located in Toledo, Ohio. In addition, the Company has a recruiting relationship with the Miami University Regional campuses, where it maintains residential facilities, a full-service cafeteria, recreational facilities, shuttle buses and an office for the regional campuses that provides study abroad and post-study services for its students; these facilities are not owned, maintained, operated or are a part of Miami University. The Company is also a recruiting agent for the University of the West of Scotland (through The Education Group (London) Ltd) and Coventry University, both of which are located in the UK. EpicQuest Education has also established a wholly owned subsidiary, Gilmore Inv LLC, in Ohio, that will offer international educational programs related to kinesiology and recreation education. The Company also established a company in Ohio, SouthGilmore LLC that has been formed to organize sports-related entertainment projects, which is 40% owned by Gilmore. For more information, please visit www.epicquesteducation.com/.

Safe Harbor Statement

Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, without limitation, the ability of the Company to achieve the enrollment goals outlined and the ability of the Company to achieve meaningful future revenue increases. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our most recent Form 20-F and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

FINANCIAL TABLES FOLLOW

EPICQUEST EDUCATION GROUP INTERNATIONAL LTD

CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2024 and SEPTEMBER 30, 2023
(US$, except share data and per share data, or otherwise noted)



March 31,
2024



September 30,
2023




US$



US$


Assets


(Unaudited)



(Audited)


Current Assets







Cash and cash equivalents



587,031




4,966,839


Restricted cash



338,712




338,712


Receivables, net



168,222




36,503


Other receivable



115,078




107,179


Prepaid expenses



8,626,693




2,326,185


Inventory



45,030




41,185


Income tax receivable



897,861




894,743


Total current assets



10,778,627




8,711,346


Non-current assets









Property and equipment, net



1,653,409




2,041,242


Right-of-use assets



832,775




1,117,554


Intangible assets



4,575,135




4,686,228


Goodwill



2,652,772




2,652,766


Total assets



20,492,718




19,209,136











LIABILITIES AND SHAREHOLDERS' EQUITY









Liabilities:









Current liabilities









Accounts payable and other liabilities



2,710,991




2,121,051


Loan payable



409,956




-


Income tax payable



-




1,872


Due to related party



140,000




140,000


Lease liabilities – current



424,704




559,375


Deferred revenue



2,627,427




4,057,517


Total current liabilities



6,313,078




6,879,815


Non-current liabilities









Lease liabilities – non current



406,289




571,131


Deferred income tax liabilities



706,214




824,480


Total liabilities



7,425,581




8,275,426











Commitments and contingencies









Shareholders' equity









Common shares, US$0.0015873 par value, 31,500,000 shares authorized,
12,818,173 and 11,998,173 shares issued and outstanding as of March 31,
2024 and September 30, 2023, respectively



20,347




19,045


Additional paid-in capital



19,388,914




18,232,263


Deficit



(12,279,190)




(9,071,818)


Accumulated other comprehensive loss



(43,970)




(36,284)


Total shareholders' equity



7,086,101




9,143,206


Noncontrolling interests



5,981,036




1,790,504


Total liabilities and shareholders' equity



20,492,718




19,209,136


 

EPICQUEST EDUCATION GROUP INTERNATIONAL LTD

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
FOR THE SIX MONTHS ENDED MARCH 31, 2024 AND 2023
(US$, except share data and per share data, or otherwise noted)



For The
Six Months
Ended



For The
Six Months
Ended




March 31,
2024



March 31,
2023




US$



US$




(Unaudited)



(Unaudited)


Revenues



4,162,650




3,420,669


Costs of services



1,759,229




769,619











Gross profit



2,403,421




2,651,050











Operating costs and expenses:









Selling expenses



696,052




474,169


General and administrative



5,850,927




5,367,085


Total operating costs and expenses



6,546,979




5,841,254











Income from operations



(4,143,558)




(3,190,204)











Other (income) expenses:









Other income



(493,554)




(1,655)


Interest income



(19,948)




(20,833)


Foreign exchange gain



-




(5)


Total other (income) expenses



(513,502)




(22,493)











Loss before provision for income taxes



(3,630,056)




(3,167,711)











Current income tax expense



5,124




8,553


Deferred income tax expense (recovery)



(118,266)




(172,975)


Income taxes expense (recovery)



(113,142)




(164,422)











Net loss



(3,516,914)




(3,003,289)


Net loss attributable to noncontrolling interest



(309,542)




(305,928)


Net loss attributable to common stockholders



(3,207,372)




(2,697,361)


Foreign currency translation adjustment



(7,686)




(4,154)


Total Comprehensive loss



(3,524,600)




(3,007,443)











Basic & diluted net loss per share


$

(0.26)



$

(0.24)











Weighted average number of ordinary shares-basic and diluted



12,370,905




11,469,800


 

EPICQUEST EDUCATION GROUP INTERNATIONAL LTD

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED MARCH 31, 2024 AND 2023

(US$, except share data and per share data, or otherwise noted)



For The
Six Months
Ended
March 31,



For The
Six Months
Ended
March 31,




2024



2023




US$



US$


Cash Flows from Operating Activities:


(Unaudited)



(Unaudited)


Net loss



(3,516,914)




(3,003,289)


Adjustments for items not affecting cash:









Depreciation and amortization



227,319




163,863


Stock-based compensation expenses



1,120,299




900,877


Accretion of finance lease



-




3,546


Net (gain)/loss from disposal of fixed assets



(477,115)




-


Deferred income tax expense



(118,266)




(172,975)


Changes in operating assets and liabilities









Accounts receivable



(139,617)




235,640


    Operating leases



(14,734)




(51,592)


    Inventory



(3,845)




(16,350)


    Prepaid expenses



(6,300,508)




(176,420)


Accounts payable & accrued liabilities



589,942




(225,407)


Deferred revenue



(1,430,090)




(2,364,570)


Income tax(payable)/ receivable



(4,990)




360,126


Student deposits



-




6,000


Net cash used in operating activities



(10,068,519)




(4,340,551)











Cash Flows from Investing Activities:









Purchase of property and equipment



(8,398)




(7,641)


Long term investment received for SouthGilmore



3,737,728






Net cash acquired from business acquisitions



-




562,791


Proceeds from sale of property and equipment



757,115




-


Net cash provided by investing activities



4,486,445




555,150











Cash Flows from Financing Activities:









Proceeds from financing offering



800,000




-


Proceeds borrowed from related parties



409,956




-


Repayment of lease liabilities



-




(15,001)


Share buyback



-




(1,250,007)


Acquisition of additional interest in subsidiary



-




(187,505)


Net cash provided by (used in) financing activities



1,209,956




(1,452,513)











Effect of exchange rate change on cash



(7,690)




(3,973)


Net decrease in cash, cash equivalents and restricted cash



(4,379,808)




(5,241,887)


Cash, cash equivalents and restricted cash, beginning of period



5,305,551




11,443,059


Cash, cash equivalents and restricted cash, end of period



925,743




6,201,172


 

EPICQUEST EDUCATION GROUP INTERNATIONAL LTD

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
SIX MONTHS ENDED MARCH 31, 2023 AND 2024



Common
shares



Common
shares
amount



Additional
paid-in capital



Accumulated
other
comprehensive
loss



NCI



Deficit



Total
equity


Balance as of
September 30, 2022



11,350,704




18,017




17,526,546




(28,939)




2,180,108




(2,416,788)




17,278,944


Net loss



-




-




-




-




(305,928)




(2,697,361)




(3,003,289)


Share buyback



(201,614)




(320)




(1,249,687)




-




-




-




(1,250,007)


Share-based compensation



559,083




888




1,028,592




-




-




-




1,029,480


Stock option compensation



-




-




123,397




-




-




-




123,397


Acquisition of business



-




-




-




-




453,635





(453,635)



-


Acquisition of
additional interest in
subsidiary



-




-




(208,321)




-




20,817




-




(187,504)


Translation adjustment



-




-




-




(4,154)




-




-




(4,154)


Balance as of March
31, 2023 (unaudited)



11,708,173




18,585




17,220,527




(33,093)




2,348,632




(5,567,784)




13,986,867
































 



Common
shares



Common
shares
amount



Additional
paid-in capital



Accumulated
other
comprehensive
loss



 

NCI


Retained
earnings


Total
equity


Balance as of September 30, 2023



11,998,173




19,045




18,232,263





(36,284)




1,790,504




(9,071,818)




10,933,710


Net loss



-




-




-





-




(309,542)




(3,207,372)




(3,516,914)


Share issued for acquisition



400,000




635




799,365





-




-




-




800,000


Share-based compensation



420,000




667




524,533





-




-




-




525,200


Stock option compensation



-




-




595,099





-




-




-




595,099


Long term investment received for Gilmore



-




-




(762,346)





-




-




-




(762,346)


Acquisition of 40% interest in SouthGilmore



-




-




-





-




4,500,074




-




4,500,074


Translation adjustment



-




-




-





(7,686)




-








(7,686)


Balance as of March 31, 2024 (unaudited)



12,818,173




20,347




19,388,914





(43,970)




5,981,036




(12,279,190)




13,067,137







































Contacts:

EpicQuest Education Group International Limited
+1 513-649-8350
info@epicquesteducation.com

Investor Relations:

Precept Investor Relations LLC

David Rudnick
+1 646-694-8538
david.rudnick@preceptir.com

Source: EpicQuest Education Group International Limited

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/epicquest-education-announces-first-half-fiscal-year-2024-financial-results-and-operations-update-302269008.html

SOURCE EpicQuest Education Group International Limited

FAQ

What was EEIQ's revenue growth in the first half of fiscal 2024?

EEIQ reported a 22% increase in revenue to $4.16 million for the first half of fiscal 2024 compared to the same period in the previous year.

How did EEIQ's gross margin change in the first half of fiscal 2024?

EEIQ's gross margin decreased to 57.7% for the first half of fiscal 2024, down from 77.5% in the same period of 2023.

What was EEIQ's net loss per share for the first half of fiscal 2024?

EEIQ reported a net loss of $0.26 per basic and diluted share for the first half of fiscal 2024.

How many students are expected to enroll in EEIQ's foundational program at Peking University in 2024?

EEIQ expects up to 80 students to register for enrollment in their foundational program at Peking University in 2024.

EpicQuest Education Group International Limited

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10.01M
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Education & Training Services
Consumer Defensive
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United States of America
Middletown