Visionary Education Technology Holdings Group Inc. Reports Fiscal Year 2023 Financial Results
- Revenues increased by $3.2 million to $8.4 million
- Net cash provided in financing activities increased to $63.4 million
- Gross profit margin decreased to 44.6%
- Net loss was $3.6 million
- Cash balance decreased to $651,490
- Net cash provided by operating activities decreased to $335,919
- Net cash used in investing activities increased to $63.4 million
Fiscal Year 2023 Financial Highlights
- Revenues was approximately
in fiscal year 2023, compared to$8.4 million in fiscal year 2022.$5.2 million - Gross profit margin was
44.6% in fiscal year 2023, compared to49.8% in fiscal year 2022. - Income from operations was
in fiscal year 2023, compared to$430,785 in fiscal year 2022.$1.0 million - Net loss was
in fiscal year 2023, compared to net loss of$3,572,108 in fiscal year 2022.$56,474
Fiscal Year 2023 Financial Results
Revenues
Revenues increased by
Revenue from rent increased by
Revenue from tuition income increased by
Gross profit and Gross Margin
Our gross profit increased by
Gross profit margin was
General and administrative expenses
General and administrative expenses increased by
Professional fees
professional fees increased by
Salaries and compensations
Salaries and compensations increased by
Interest expense, net
Interest expense increased by
Government subsidies
We received
Impairment expenses
In fiscal 2022, we recorded impairment loss of
Warrants expense
We recorded
Loss on convertible debenture valuation
In fiscal 2023, we recorded loss of
Other income
We had other income of
Loss before income taxes
We had loss before income taxes of approximately
Recovery for current and deferred income taxes
We had an income tax recovery of
Net income (loss)
We had net loss of
Balance Sheet
The Company had cash balance of
Cash Flow
Net cash provided by operating activities was approximately
- Due from related parties decreased by approximately
in fiscal 2023, compared with an increase of approximately$99,334 in fiscal 2022. The decrease in fiscal year is minimal.$2.1 million - Accrued liabilities increased by approximately
in fiscal 2023 compared with an increase of approximately$50,206 in fiscal 2022. The decrease was mainly due to high legal and professional expenses in connection with the initial public offering ("IPO") process in year 2022.$0.9 million
Offset by:
- The increase in our net loss. We had net loss of
in fiscal 2023, a decrease of approximately$3,572,108 from approximately 56,474 in fiscal 2022.$3.0 million
Net cash used in investing activities was approximately
Net cash provided in financing activities was approximately
Recent Development
On June 22, 2023, Visionary Education Technology Holdings Group Inc. (the "Company") sold its office building located at 41 Metropolitan Road E.,
In July 2023, the Company received offer for purchasing its two office buildings located at 200 and 260 Town Center,
On May 24, 2022, the Company entered a purchase agreement to purchase a property in
About Visionary Education Technology Holdings Group Inc.
Visionary Education Technology Holdings Group Inc., headquartered in
Forward-Looking Statements
All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "believes," "expects," "anticipates," "estimates," "intends," "would," "continue," "should," "may," or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and in its other filings with the SEC.
For more information, please contact:
Visionary Education Technology Holdings Group Inc.
Investor Relations Department
Email: ir@farvision.ca
VISIONARY EDUCATION TECHNOLOGY HOLDINGS GROUP INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(IN | ||||||||
March 31, | ||||||||
2023 | 2022 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash | $ | 651,490 | $ | 741,868 | ||||
Restricted cash – Current | 500,000 | – | ||||||
Short-term investments | 51,723 | 56,021 | ||||||
Accounts receivable, net | 89,248 | 1,653 | ||||||
Prepaid and other receivable | 525,429 | 179,647 | ||||||
Due from related parties | 191,595 | 432,676 | ||||||
Loan receivable - current | – | 131,036 | ||||||
Assets held for sale | 20,335,836 | – | ||||||
Total current assets | 22,345,321 | 1,542,901 | ||||||
Restricted cash – non-current | 140,391 | 67,821 | ||||||
Property, plant and equipment, net | 69,568,551 | 23,240,470 | ||||||
Right of use assets | 690,932 | 958,477 | ||||||
Intangible assets, net | 966,533 | 1,082,061 | ||||||
Acquisition deposits | 760,000 | 7,364,241 | ||||||
Deferred tax assets | 778,552 | – | ||||||
Goodwill | 951,346 | 1,030,399 | ||||||
Deferred offering cost | – | 940,214 | ||||||
TOTAL ASSETS | $ | 96,201,626 | $ | 36,226,584 | ||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 1,025,892 | $ | 278,544 | ||||
Accrued liabilities | 1,820,872 | 1,465,318 | ||||||
Other tax payable | 932,402 | 1,435,045 | ||||||
Due to related parties | 4,165,912 | 7,219,022 | ||||||
Deferred revenue | 1,321,673 | 532,520 | ||||||
Lease liability - current | 196,996 | 211,600 | ||||||
Liabilities related to assets held for sale | 19,709,383 | – | ||||||
Bank loans - current | 47,694,700 | 542,264 | ||||||
Other loan payable- current | 467,976 | – | ||||||
Convertible notes | 1,214,375 | – | ||||||
Derivative liability - current | 378,132 | – | ||||||
Income tax payable | 1,528,630 | 1,598,153 | ||||||
Total current liabilities | 80,456,943 | 13,282,466 | ||||||
Deferred tax liabilities | 225,060 | 243,762 | ||||||
Lease liability, non-current | 493,936 | 746,877 | ||||||
Bank loans, non-current | – | 18,278,316 | ||||||
Other loan payable, non-current | 741,469 | – | ||||||
Derivative liability, non-current | 1,565,570 | – | ||||||
TOTAL LIABILITIES | 83,482,978 | 32,551,421 | ||||||
Commitments | ||||||||
EQUITY | ||||||||
Common shares, no par value, unlimited shares authorized, 39,250,000 | 14,106,238 | 665,985 | ||||||
(Deficits) retained earnings | (886,765) | 2,587,747 | ||||||
Accumulated other comprehensive (loss) income | (549,736) | 185,179 | ||||||
Total shareholders' equity attributable to the Company | 12,669,737 | 3,438,911 | ||||||
Noncontrolling interest | 48,911 | 236,252 | ||||||
Total shareholders' equity | 12,718,648 | 3,675,163 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 96,201,626 | $ | 36,226,584 |
VISIONARY EDUCATION TECHNOLOGY HOLDINGS GROUP INC. | ||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (LOSS) | ||||||||||||
AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||
(IN | ||||||||||||
For the Years Ended March 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Revenue – rent | $ | 7,090,140 | $ | 2,298,198 | $ | 674,898 | ||||||
Revenue – tuition | 1,342,371 | 669,442 | 358,241 | |||||||||
Revenue – construction | – | 8,117 | 78,219 | |||||||||
Revenue – sales of land | – | 2,272,704 | 6,613,863 | |||||||||
Total Revenues | 8,432,511 | 5,248,461 | 7,725,221 | |||||||||
Cost of revenue – rent | 3,899,012 | 1,322,188 | 256,981 | |||||||||
Cost of revenue – tuition | 770,179 | 319,913 | 124,762 | |||||||||
Cost of revenue – construction | – | 4,663 | 19,529 | |||||||||
Cost of revenue – sales of land | – | 990,261 | 3,058,175 | |||||||||
Total cost of revenues | 4,669,191 | 2,637,025 | 3,459,447 | |||||||||
Gross Profit | 3,763,320 | 2,611,436 | 4,265,774 | |||||||||
Operating expenses: | ||||||||||||
General and administrative expenses | 1,227,424 | 437,278 | 132,224 | |||||||||
Professional fees | 968,435 | 350,636 | 211,517 | |||||||||
Salaries | 1,136,676 | 792,546 | 193,247 | |||||||||
Total operating expenses | 3,332,535 | 1,580,460 | 536,988 | |||||||||
Income from operations | 430,785 | 1,030,976 | 3,728,786 | |||||||||
Other (expense) income | ||||||||||||
Interest expense | (2,955,008) | (906,398) | (141,690) | |||||||||
Accretion interest | (320,497) | – | – | |||||||||
Impairment loss | – | (379,165) | – | |||||||||
Government subsidies | 109,723 | 490,171 | 84,657 | |||||||||
Loss on warranties | (1,565,570) | – | – | |||||||||
Loss on convertible debenture valuation | (157,010) | – | – | |||||||||
Other income | 23,605 | 20,709 | 245,019 | |||||||||
Total other (expense) income, net | (4,864,757) | (774,683) | 187,986 | |||||||||
Income (loss) before income taxes | (4,433,972) | 256,293 | 3,916,772 | |||||||||
Provision for income taxes - current | 64,768 | (312,767) | (1,003,126) | |||||||||
Recovery for income taxes - deferred | 797,096 | – | – | |||||||||
Net (loss) income | (3,572,108) | (56,474) | 2,913,646 | |||||||||
Less: net loss (income) attributable to | 97,596 | 66,223 | (46,789) | |||||||||
Net (loss) income attributable to Visionary | (3,474,512) | 9,749 | 2,866,857 | |||||||||
Other comprehensive (loss) income: | ||||||||||||
Foreign currency translation (loss) gain | (750,768) | 26,333 | 164,684 | |||||||||
Comprehensive (loss) income | (4,322,876) | (30,141) | 3,078,330 | |||||||||
Less: comprehensive loss (income) attributable to | 113,451 | 61,774 | (23,626) | |||||||||
Comprehensive (loss) income attributable to Visionary | $ | (4,209,425) | $ | 31,633 | $ | 3,054,704 | ||||||
Earnings (Loss) Per share | ||||||||||||
Basic and diluted | $ | (0.09) | $ | (0.00) | $ | 0.08 | ||||||
Weighted Average Shares Outstanding* | ||||||||||||
Basic and diluted | 38,689,560 | 35,000,000 | 35,000,000 |
VISIONARY EDUCATION TECHNOLOGY HOLDINGS GROUP INC. | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(IN | ||||||||||||
For the Years Ended March 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net (loss) income | $ | (3,572,108) | $ | (56,474) | $ | 2,913,646 | ||||||
Adjustments to reconcile net income to net cash | ||||||||||||
Depreciation and amortization | 1,361,211 | 494,729 | 53,763 | |||||||||
Gain recognized on government subsidy | – | 22,883 | (45,450) | |||||||||
Amortization on finance fee on bank loan | 173,180 | – | – | |||||||||
Amortization of intangible assets | 33,285 | – | – | |||||||||
Loss on warrants | 1,565,570 | – | – | |||||||||
Amortization on convertible notes valuation | 157,010 | – | – | |||||||||
Deferred income tax recovery | (797,096) | – | – | |||||||||
Accretion cost | 320,497 | – | – | |||||||||
Impairment loss on intangible assets and goodwill | – | 379,165 | – | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | (89,812) | 202,741 | (174,982) | |||||||||
Accounts receivable from related party | 113,504 | 167,550 | (272,700) | |||||||||
Inventories | – | 842,346 | 2,686,597 | |||||||||
Prepayments and other current assets | (368,129) | (97,322) | (77,657) | |||||||||
Due from related party | 99,334 | 2,114,745 | (2,692,545) | |||||||||
Accounts payables | 787.029 | 227,370 | 37,367 | |||||||||
Accrued liabilities | 50,206 | 854,071 | 114,453 | |||||||||
Other tax payable | (401,894) | 406,999 | 877,215 | |||||||||
Deferred revenue | 849,778 | 329,113 | 9,796 | |||||||||
Taxes payable | 54,354 | 473,607 | 1,010,214 | |||||||||
Net cash provided by operating activities | 335,919 | 6,361,523 | 4,439,717 | |||||||||
Cash flows from investing activities: | ||||||||||||
Acquisition of business | – | (471,550) | (151,500) | |||||||||
Acquisition deposit | – | (17,016,884) | (2,378,418) | |||||||||
Purchase of property, plant and equipment | (62,701,573) | |||||||||||
Purchase additional shares from NCI | (75,650) | – | (31,808) | |||||||||
Loan advance to related parties | – | 425,770 | (377,785) | |||||||||
Refund of land deposit | – | 52,668 | – | |||||||||
Short-term investment | – | (55,860) | – | |||||||||
Loan advance from (to) unrelated parties | 123,864 | (2,979) | (121,200) | |||||||||
Acquisition deposits | (760,000) | (7,215,396) | – | |||||||||
Net cash used in investing activities | (63,413,359) | (24,284,231) | (3,060,711) | |||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from bank loan | 22,506 | 85,909 | 136,350 | |||||||||
Proceeds from mortgage | 45,390,000 | 12,768,000 | 6,060,000 | |||||||||
Finance costs on mortgage | (445,665) | (49,928) | (30,300) | |||||||||
Proceed from private mortgage | 6,808,500 | – | – | |||||||||
Repayment of other loan | (231,820) | – | – | |||||||||
Proceed from issue of convertible notes | 1,115,000 | – | – | |||||||||
Proceeds from initial public offering, net of | 14,380,467 | (451,049) | – | |||||||||
Repayment of mortgage principal | (721,261) | (469,921) | (2,565,470) | |||||||||
Proceeds (Repayment) of shareholder advance | (2,446,085) | 5,652,248 | (3,995,358) | |||||||||
Net cash provided by (used in) financing activities | 63,871,642 | 17,535,259 | (394,778) | |||||||||
Effect of exchange rate changes on cash | (312,010) | 6,522 | 96,528 | |||||||||
Net increase (decrease) in cash | 482,192 | (380,927) | 1,080,756 | |||||||||
Cash and restricted cash, beginning of the year | 809,689 | 1,190,616 | 109,860 | |||||||||
Cash and restricted cash, end of the year | $ | 1,291,881 | $ | 809,689 | $ | 1,190,616 | ||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW | ||||||||||||
Cash paid for income tax | $ | 28,753 | $ | – | $ | – | ||||||
Cash paid for interest | $ | 2,538,486 | $ | 906,398 | $ | 117,708 |
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SOURCE Visionary Education Technology Holdings Group Inc.