EpicQuest Education Announces Fiscal Year End 2022 Financial Results
EpicQuest Education Group International Limited (NASDAQ: EEIQ) reported a 19% increase in revenue for fiscal year 2022, reaching $6.3 million compared to $5.3 million in 2021, with a gross profit of $4.3 million. Operating expenses rose sharply to $11.5 million, leading to an operating loss of $7.2 million. The net loss for the year was $6.2 million, up from $1.1 million in 2021, attributed to increased expenses and a net loss per share of $0.55. The company had $11.4 million in cash as of September 30, 2022, a decrease from the previous year. Despite challenges, CEO Jianbo Zhang highlighted optimism for future growth through international expansion and operational efficiencies.
- Revenue increased by 19%, totaling $6.3 million.
- Gross profit rose by 26.5%, reaching $4.3 million.
- Gross margin improved to 68.1%.
- The company entered seven educational partnerships for international expansion.
- Operating expenses surged by 134.7% to $11.5 million.
- Operating loss increased to $7.2 million.
- Net loss expanded to $6.2 million from $1.1 million.
- Net cash used in operating activities was $4.6 million.
"We are pleased to report a
"We are committed to our growth strategy of international expansion.
"We continue to engage in vigorous marketing and recruitment activities for all of our educational programs. Since
First Half 2022 Financial Results Ended
Revenues were
Gross profit was
Operating Expenses were
Operating loss was
Other income was
Net loss was
Net Loss Per Basic and Diluted Share for the fiscal year ended
Financial Condition
As of
Liquidity and Capital Resources
Net cash used in operating activities for the twelve months ended September 30, 2022 was
Net cash used in investing activities was
Net cash provided from financing activities was
About EpicQuest
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 in this press release include, without limitation, the Company's ability to implement its international strategy as described. 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
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FINANCIAL TABLES FOLLOW
EPICQUEST EDUCATION INTERNATIONAL CO., LTD CONSOLIDATED BALANCE SHEETS AS OF (US$, except share data and per share data, or otherwise noted) | ||||||||
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US$ | US$ | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | 11,443,059 | 16,537,174 | ||||||
Accounts receivables | 47,639 | 154,537 | ||||||
Prepaid expenses | 946,299 | 1,560,847 | ||||||
Notes receivable | 485,000 | 180,000 | ||||||
Income tax receivable | 1,147,213 | 1,149,506 | ||||||
Total current assets | 14,069,210 | 19,582,064 | ||||||
Non-current assets | ||||||||
Property and equipment, net | 2,205,084 | 3,479,922 | ||||||
Long term investment | 5,086,413 | - | ||||||
Deferred income tax assets | 411,934 | 321,057 | ||||||
Intangible assets | 398,794 | - | ||||||
Right-of-use assets | 976,404 | 626,596 | ||||||
854,887 | - | |||||||
Total assets | 24,002,726 | 24,009,639 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Liabilities: | ||||||||
Current liabilities | ||||||||
Accounts payable and other liabilities | 2,120,660 | 2,960,915 | ||||||
Student deposits | 46,040 | 681,818 | ||||||
Due to related party | 140,000 | 140,000 | ||||||
Lease liabilities – current | 461,161 | 259,297 | ||||||
Deferred revenue | 3,286,350 | 4,569,664 | ||||||
Total current liabilities | 6,054,211 | 8,611,694 | ||||||
Non-current liabilities | ||||||||
Lease liabilities – non current | 561,897 | 461,997 | ||||||
Deferred income tax liabilities | 107,674 | - | ||||||
Total liabilities | 6,723,782 | 9,073,691 | ||||||
Commitments and contingencies | ||||||||
Shareholders' equity | ||||||||
Common shares, | 18,017 | 16,528 | ||||||
Additional paid-in capital | 17,526,546 | 11,464,979 | ||||||
Subscription receivable | - | (200,000) | ||||||
Retained earnings (deficit) | (2,416,788) | 3,654,441 | ||||||
Accumulated other comprehensive loss | (28,939) | - | ||||||
Total shareholders' equity | 15,098,836 | 14,935,948 | ||||||
Non-controlling interests | 2,180,108 | - | ||||||
Total liabilities and shareholders' equity | 24,002,726 | 24,009,639 | ||||||
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AVAILABLE VIA FORM 20-F FILED WITH THE
EPICQUEST EDUCATION INTERNATIONAL CO., LTD CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE TWELVE MONTHS ENDED (US$, except share data and per share data, or otherwise noted) | ||||||||||||
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US$ | US$ | US$ | ||||||||||
Revenues | 6,330,428 | 5,341,850 | 9,063,137 | |||||||||
Costs of services | 2,021,058 | 1,934,237 | 2,342,276 | |||||||||
Gross profit | 4,309,370 | 3,407,613 | 6,720,861 | |||||||||
Operating costs and expenses: | ||||||||||||
Selling expenses | 952,888 | 1,732,758 | 2,310,188 | |||||||||
General and administrative | 10,521,551 | 3,148,256 | 3,115,120 | |||||||||
Total operating costs and expenses | 11,474,439 | 4,881,014 | 5,425,308 | |||||||||
Income (loss) from operations | (7,165,069) | (1,473,401) | 1,295,553 | |||||||||
Other (income) expenses: | ||||||||||||
Other income | (819,135) | (71,640) | (55,000) | |||||||||
Interest income | (26,463) | (9,537) | (35,293) | |||||||||
Foreign exchange gain | - | (743) | (23,262) | |||||||||
Total other (income) expenses | (845,598) | (81,920) | (113,555) | |||||||||
Income (loss) before provision for income taxes | (6,319,471) | (1,391,481) | 1,409,108 | |||||||||
Current income tax expense (recovery) | 16,459 | 13,889 | 397,553 | |||||||||
Deferred income tax expense (recovery) | (99,814) | (321,057) | - | |||||||||
Income taxes expense (recovery) | (83,355) | (307,168) | 397,553 | |||||||||
Net income (loss) | (6,236,116) | (1,084,313) | 1,011,555 | |||||||||
Net income (loss) attributable to non-controlling interest | (164,887) | - | - | |||||||||
Net income (loss) attributable to common stockholders | (6,071,229) | (1,084,313) | 1,011,555 | |||||||||
Unrealized foreign currency translation adjustment | (28,939) | - | - | |||||||||
Comprehensive income | (6,265,055) | (1,084,313) | 1,011,555 | |||||||||
Basic & diluted net income per share | $ | (0.55) | $ | (0.12) | 0.13 | |||||||
Weighted average number of ordinary shares-basic and diluted | 11,010,240 | 9,160,447 | 7,938,000 | |||||||||
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AVAILABLE VIA FORM 20-F FILED WITH THE
EPICQUEST EDUCATION INTERNATIONAL CO., LTD CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE TWELVE MONTHS ENDED (US$, except share data and per share data, or otherwise noted) | ||||||||||||
2022 | 2021 | 2020 | ||||||||||
US$ | US$ | US$ | ||||||||||
Cash Flows from Operating Activities: | ||||||||||||
Net income (loss) | (6,236,116) | (1,084,313) | 1,011,555 | |||||||||
Adjustments for items not affecting cash: | ||||||||||||
Depreciation and amortization | 252,097 | 126,234 | 87,593 | |||||||||
Share-based compensation | 4,813,049 | - | - | |||||||||
Non-cash adjustment to lease expenses | (25,643) | 94,698 | - | |||||||||
Deferred income tax expense | (99,814) | (321,057) | - | |||||||||
Gain from disposal of fixed assets | (813,064) | (4,000) | - | |||||||||
Changes in operating assets and liabilities | ||||||||||||
Accounts receivable | 118,608 | (5,176) | 89,521 | |||||||||
Prepaid expenses | 614,548 | 71,800 | 428,592 | |||||||||
Long-term prepaid expenses | - | 159,382 | 584,356 | |||||||||
Accounts payable & accrued liabilities | (1,320,563) | 1,117,184 | 545,606 | |||||||||
Deferred revenue | (1,283,314) | 961,426 | (3,221,807) | |||||||||
Income tax receivable | 2,293 | (480,866) | (664,399) | |||||||||
Student deposits | (635,778) | (313,122) | 994,940 | |||||||||
Net cash provided from (used in) operating activities | (4,613,697) | 322,190 | (144,043) | |||||||||
Cash Flows from Investing Activities: | ||||||||||||
Purchase of property and equipment | (51,410) | (618,529) | (288,555) | |||||||||
Notes receivable | (305,000) | 100,000 | - | |||||||||
Long-term investment | (270,000) | - | - | |||||||||
Net cash used for business acquisitions | (1,945,931) | - | - | |||||||||
Proceeds from sale of fixed assets | 1,920,861 | 4,000 | - | |||||||||
Net cash used in investing activities | (651,480) | (514,529) | (288,555) | |||||||||
Cash Flows from Financing Activities: | ||||||||||||
Deferred costs related to initial public offering | - | - | (432,035) | |||||||||
Share issuances, net of issuance costs | 200,000 | 9,321,523 | - | |||||||||
Net cash provided from (used in) financing activities | 200,000 | 9,321,523 | (432,035) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (28,938) | - | - | |||||||||
Net increase/(decrease) in cash, cash equivalents | (5,094,115) | 9,129,184 | (864,633) | |||||||||
Cash and cash equivalents, beginning of period | 16,537,174 | 7,407,990 | 8,272,623 | |||||||||
Cash and cash equivalents, end of period | 11,443,059 | 16,537,174 | 7,407,990 | |||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | ||||||||||||
Interest paid | - | - | - | |||||||||
Income taxes paid | 14,166 | 490,250 | 1,053,360 | |||||||||
Non-cash investing activities – acquisition of operating lease | 574,483 | - | - | |||||||||
Non-cash investing activities – assumption of operating lease | 574,483 | - | - | |||||||||
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AVAILABLE VIA FORM 20-F FILED WITH THE
Source: EpicQuest Education Group International Limited
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