Revenue Performance - Net revenues in the fourth quarter of 2024 were $3.5 million, a 45.8% increase from $2.4 million in the same period of 2023, primarily due to the launch of HybriU[8] - For the full fiscal year 2024, net revenues increased by 2.2% to $9.4 million from $9.2 million in 2023, driven by revenue growth from HybriU[13] - Total net revenues for 2023 were $9,163,000, a decrease from $9,392,000 in 2024, reflecting a decline of approximately 2.4%[18] Profitability - Gross profit in the fourth quarter of 2024 was $2.3 million, with a gross profit margin of 65.7%, compared to $1.2 million and 50.0% in the fourth quarter of 2023[8] - Gross profit for fiscal year 2024 was $5.0 million, up from $2.5 million in 2023, attributed to increased revenues from HybriU and reduced payroll expenses[13] - Gross profit increased to $4,987,000 in 2024, up from $2,494,000 in 2023, representing a growth of 100%[18] - Net income attributable to ordinary shareholders in fiscal year 2024 was $0.3 million, or $0.005 per share, compared to a net loss of $3.2 million, or $0.06 per share in 2023[13] - Net income attributable to ordinary shareholders turned positive at $309,000 in 2024, compared to a net loss of $3,175,000 in 2023[18] - Net loss income per share improved to $0.0054 in 2024 from a loss of $0.06 in 2023[18] Operating Expenses - Operating expenses in the fourth quarter of 2024 decreased by 13.3% to $1.3 million from $1.5 million in the same period of 2023[8] - Total operating expenses decreased to $5,709,000 in 2024 from $6,799,000 in 2023, a reduction of approximately 16.1%[18] - Research and development expenses slightly decreased to $438,000 in 2024 from $484,000 in 2023[18] Loss and Improvement - Operating loss for fiscal year 2024 narrowed to $0.7 million, compared to a loss of $4.3 million in 2023[13] - Operating loss significantly reduced to $722,000 in 2024 from $4,305,000 in 2023, indicating an improvement of approximately 83.2%[18] Cash and Resources - As of December 31, 2024, the company maintained cash resources of $8.4 million, including cash and cash equivalents of $1.1 million and restricted cash of $7.3 million[13] Strategic Initiatives - The company plans to accelerate HybriU's adoption across U.S. and international markets in 2025, enhancing AI capabilities for greater partner value[5] - A $1.3 million HybriU licensing agreement was signed in the fourth quarter of 2024, marking continued expansion into international markets[3] Tax Benefits - The company experienced a significant increase in income tax benefit, rising to $839,000 in 2024 from an expense of $14,000 in 2023[18]

Financial Performance - Net revenues decreased from $14.8 million in 2022 to $9.2 million in 2023, with a slight increase to $9.4 million in 2024[40]. - Seasonal fluctuations in student enrollment lead to expected lower revenues in the third quarter compared to other quarters, impacting overall financial performance[49]. - NewSchool's composite score for financial responsibility was 2.2 for the fiscal year 2023, exceeding the minimum required score of 1.5[89]. - Approximately 43.8% of NewSchool's consolidated net revenues in 2024 were derived from Title IV financial aid program funds, primarily federal student loans[95]. - The company may not be able to pay dividends on its Class A ordinary shares in the future, as dividend declarations depend on the Board of Directors' discretion and various financial factors[134]. Competition and Market Position - The company faces significant competition in each major program and geographic market, which could adversely affect market share and profitability[35]. - The company must continue to enhance its online programs and adapt to technological changes to avoid losing market share[26]. - The company faces significant competition from larger organizations with greater resources, which may impact its market position[211]. Regulatory and Compliance Risks - Legislative, regulatory, and economic uncertainties may impact future student enrollment and net revenues[28]. - The ongoing regulatory efforts aimed at for-profit post-secondary institutions could lead to additional legislation negatively affecting the industry[26]. - Compliance reviews by the Department of Education could lead to sanctions if material findings of noncompliance are identified, affecting participation in Title IV programs[125]. - If NewSchool fails to comply with U.S. regulatory requirements, it could face significant monetary liabilities and loss of access to federal student loans[75]. - Changes in accounting standards or taxation rules could adversely affect NewSchool's reported financial results and operations[73]. Technology and Innovation - The company has invested in the research and development of AI technology, specifically the commercialization of its AI-driven offering, HybriU[31]. - The company debuted HybriU, an AI-powered platform for digital education, aimed at revolutionizing educational content delivery and enhancing learning experiences[150]. - HybriU integrates AI technology to enhance student engagement and teaching effectiveness, allowing for real-time insights and adaptive teaching methods[169]. - The company aims to break down barriers in education and corporate environments through innovative, AI-driven solutions[161]. - HybriU's comprehensive management platform offers AI data analytics for strategic insights, optimizing educational resources and content delivery[184]. Operational Challenges - The integration of acquired businesses poses challenges that could disrupt operations and affect anticipated benefits[38]. - Natural disasters or public health epidemics could materially disrupt business operations and adversely affect results[44]. - The company relies heavily on the services of its senior management team, particularly the founder and CEO, Dr. Jin Huang, to maintain business stability and growth[45]. - The ongoing litigation regarding campus lease disputes could have a material adverse impact on the company's financial condition and operations[221]. Cybersecurity and Data Protection - Cybersecurity threats, including network interruptions and data breaches, pose significant risks to the company's operations and reputation[53][54]. - Compliance with evolving privacy and data protection laws is essential; failure to do so could result in significant fines and damage to the company's reputation[56][57]. - Reliance on third-party service providers introduces additional cybersecurity risks, potentially affecting the company's operations and data security[66]. - The company has limited resources for detecting and remediating vulnerabilities in information systems, which could lead to security incidents[67]. Legal Matters - NewSchool is currently involved in two lawsuits regarding leased property, with potential damages totaling $6,722,232.24, including $2,255,984.44 in past rent and $4,466,247.80 in breach of contract claims[70]. - The Department of Education's evaluation of NewSchool's financial responsibility could lead to sanctions, including the requirement to post a letter of credit or termination of eligibility for Title IV programs[90]. - The Department of Education's misrepresentation rules could expose the company to liability and sanctions, impacting its financial condition[128]. Future Outlook - The company anticipates a rapid increase in out-of-state and international student enrollment due to the deployment of HybriU[160]. - Future acquisitions may involve substantial risks and uncertainties, including hidden liabilities that could adversely affect the company's financial condition[117]. - Changes in the availability of Title IV funds by Congress could materially affect NewSchool's enrollment and financial condition[95].

Core Viewpoint - Ambow Education Holding Ltd. has achieved full-year profitability in 2024, driven by the adoption of its AI-powered platform, HybriU, which integrates physical and digital learning experiences [2][4]. Financial Performance - In Q4 2024, net revenues reached $3.5 million, up from $2.4 million in Q4 2023, primarily due to the launch of HybriU [8]. - Gross profit for Q4 2024 was $2.3 million, with a gross profit margin of 65.7%, compared to 50.0% in Q4 2023 [8]. - Operating expenses in Q4 2024 decreased by 13.3% to $1.3 million from $1.5 million in Q4 2023 [8]. - The company reported an operating income of $1.0 million in Q4 2024, a significant improvement from an operating loss of $0.3 million in Q4 2023 [8]. Yearly Financial Highlights - For the full fiscal year 2024, net revenues increased by 2.2% to $9.4 million from $9.2 million in 2023, driven by HybriU's revenue growth [9]. - Gross profit for the fiscal year 2024 was $5.0 million, up from $2.5 million in 2023, attributed to increased revenues from HybriU and reduced payroll expenses [9][10]. - Operating expenses for the fiscal year 2024 decreased by 16.2% to $5.7 million from $6.8 million in 2023 [14]. - The operating loss for the fiscal year 2024 narrowed to $0.7 million, compared to a loss of $4.3 million in 2023 [14]. - Net income attributable to ordinary shareholders in fiscal year 2024 was $0.3 million, or $0.005 per share, compared to a net loss of $3.2 million, or $0.06 per share in 2023 [14]. Strategic Outlook - The company plans to accelerate the adoption of HybriU in both U.S. and international markets in 2025, enhancing its AI capabilities to provide greater value to partners [4]. - Ambow is positioned for continued growth and increasing profitability due to a strong financial foundation and a differentiated first-to-market solution [4]. Company Overview - Ambow Education Holding Ltd. is an AI-driven technology company that offers phygital solutions for education, corporate conferencing, and live events through its flagship platform, HybriU [12].

Core Viewpoint - Ambow Education Holding Ltd. has filed its Annual Report on Form 20-F for the fiscal year ended December 31, 2024, with the SEC, highlighting its commitment to transparency and regulatory compliance [1]. Group 1: Company Overview - Ambow Education Holding Ltd. is an AI-driven educational technology company based in the U.S., providing phygital solutions for education, corporate conferencing, and live events [3]. - The company's flagship platform, HybriU, aims to transform learning, collaboration, and communication by delivering immersive and intelligent experiences across various industries [3]. Group 2: Financial Reporting - The Annual Report on Form 20-F is accessible on the company's investor relations website and the SEC's website, ensuring shareholders can easily obtain financial information [2]. - Shareholders and ADS holders can request a hard copy of the Annual Report, which includes audited consolidated financial statements, free of charge [2].

Company Overview - Ambow Education Holding Ltd is an AI-driven technology company focused on education and collaboration, headquartered in Cupertino, California [1] - The company provides advanced learning, lecture capture, connectivity, and 3D technologies through its patented HybriU platform [1] - Ambow aims to transform learning experiences, professional gatherings, and corporate operations by integrating AI into education and events [1] HybriU Platform - HybriU is a proprietary AI Digital Education Solution featuring sophisticated AI-powered software and hardware [6] - The platform creates hybrid classrooms and event spaces with advanced technologies like instant translation and simultaneous content creation [6] - HybriU enables precise offline image capture and accelerates the production of high-quality courses [6] - The Enterprise Synergy Suite promotes AI-driven collaborative solutions for centralized project brainstorming, decision making, and implementation [6] - The platform helps companies build libraries for long-term practices and significantly reduces operational costs by offering remote courses and events [6] Market Strategy - Ambow plans to invest in building sales infrastructure in the US while utilizing technology resellers and a partnering network [6] - Outside the US, the company aims to license its technology, as evidenced by a $1.3 million nonexclusive licensing agreement with Singapore-based Inspiring Futures Pte Ltd in October 2024 [6] Financial Position - As of June 30, 2024, Ambow had $9 million in cash resources and $4.5 million in working capital to support the commercial rollout of HybriU [6] - The company achieved positive net income for the first half of 2024 and has the potential to achieve full-year profitability as early as 2024 [6] Industry Context - Ambow is well-positioned to participate in the digitalization of the educational industry with its HybriU platform [6] - The platform's capabilities align with the growing trend of hybrid learning and remote collaboration solutions in both educational and corporate sectors [6]

Core Viewpoint - Ambow Education Holding Ltd. has achieved profitability and improved margins in the first half of 2024, driven by its AI-driven hybrid education platform, HybriU, which is positioned to capture significant market opportunities [2][3]. Financial Performance Second Quarter 2024 Highlights - Net revenues decreased by 11.1% to $2.4 million from $2.7 million in Q2 2023, primarily due to the closure of Bay State College [3]. - Gross profit increased by 8.3% to $1.3 million, with a gross profit margin of 54.2%, up from 44.4% in Q2 2023 [3]. - Operating expenses decreased by 35.0% to $1.3 million, leading to an operating income of $0.1 million, an improvement from a loss of $0.8 million in Q2 2023 [3]. - Net income attributable to ordinary shareholders improved to $0.1 million, or $0 per share, from a net loss of $1.0 million, or $0.02 per share, in Q2 2023 [3]. First Six Months 2024 Highlights - Net revenues decreased by 21.3% to $4.8 million from $6.1 million in the first half of 2023, again due to the closure of Bay State College [4]. - Gross profit increased by 30.0% to $2.6 million, with a gross profit margin of 54.2%, compared to 32.8% in the same period of 2023 [4]. - Operating expenses decreased by 23.1% to $3.0 million, resulting in an operating loss of $0.4 million, improved from a loss of $1.9 million in the first half of 2023 [4]. - Net income attributable to ordinary shareholders improved to $0.2 million, or $0 per share, from a net loss of $2.2 million, or $0.04 per share, in the first half of 2023 [4]. Strategic Initiatives - The company is focusing on its AI-driven hybrid education platform, HybriU, which aims to provide a unified learning experience globally [2]. - A recent licensing agreement worth $1.3 million for HybriU in overseas markets marks a significant step in expanding its market presence [2]. Cash Position - As of June 30, 2024, Ambow maintained cash resources of $9.0 million, consisting of cash and cash equivalents of $1.6 million and restricted cash of $7.4 million [3].

Core Viewpoint - Ambow Education's stock price experienced a significant decline of 18.91% to $3.26 in pre-market trading after a previous surge of 226.83% in the last trading session [1] Group 1: Stock Performance - The stock price fell to $3.26, marking an 18.91% decrease in pre-market trading [1] - This decline follows a substantial increase of 226.83% in the previous trading session [1] Group 2: Business Development - Ambow Education has entered into a $1.3 million non-exclusive, annually renewable licensing agreement with Inspiring Futures Pte. LTD [1] - The agreement allows Inspiring Futures to produce and sell the HybriU AI UniBox, an AI-driven educational solution, in international markets [1]

Core Insights - Ambow Education Holding Ltd. has entered into a $1.3 million non-exclusive, annually renewable licensing agreement with Inspiring Futures Pte. LTD for the production and sale of the HybriU AI UniBox in international markets [1][2] - The partnership aims to enhance HybriU's presence in the global digital education sector, allowing Ambow to focus on expanding its footprint in key U.S. markets [2] - HybriU is positioned as a unique 5-in-1 total solution that integrates AI across five domains: teaching, learning, connectivity, recording, and management, providing a unified learning experience [2] Company Overview - Ambow Education Holding Ltd. is an AI-driven educational technology company based in the U.S., dedicated to empowering educational institutions and students through advanced AI and connectivity solutions [4] - The company operates the New School of Architecture & Design in San Diego, California, and is committed to delivering personalized and impactful career education services [4] Strategic Partnerships - Inspiring Futures, based in Singapore, has extensive experience in the education sector and aims to expand internationally, targeting regions with high demand for quality education and technology integration [3] - The partnership with Ambow is part of Inspiring Futures' strategy to deliver innovative solutions and establish itself as a trusted partner in the global education landscape [3]

Financial Performance - Net revenues from continuing operations in Q4 2023 were $2.4 million, down 27.3% from $3.3 million in Q4 2022[3] - Full-year 2023 net revenues from continuing operations decreased by 37.8% to $9.2 million from $14.8 million in 2022, mainly due to the closure of Bay State College[6] - Net revenues for the three months ended September 30, 2023, were $671 million, a decrease from $2,351 million for the same period in 2022[17] - Educational program and services revenue for the three months ended December 31, 2023, was $9,163 million, down from $14,840 million for the same period in 2022[20] Profitability - Gross profit in Q4 2023 was $1.2 million, with a gross margin of 50.0%, compared to a gross loss of $0.7 million and a negative margin of 21.2% in Q4 2022[3] - Full-year 2023 gross profit increased to $2.5 million from $0.3 million in 2022, attributed to stringent cost controls[6] - Gross profit for the three months ended September 30, 2023, was $1,208 million, compared to a gross loss of $729 million for the same period in 2022[17] Operating Expenses and Losses - Operating expenses in Q4 2023 increased by 87.5% to $1.5 million from $0.8 million in Q4 2022, primarily due to expenditures related to the new product HybriU[3] - Operating loss for the full year 2023 improved to $4.3 million from a loss of $9.5 million in 2022[6] - Operating loss for the three months ended September 30, 2023, was $2,204 million, an increase from $4,002 million for the same period in 2022[17] - Operating loss for the three months ended December 31, 2023, was $4,305 million, compared to a loss of $9,488 million for the same period in 2022[20] - Total operating expenses for the three months ended December 31, 2023, were $6,799 million, down from $9,772 million for the same period in 2022[20] Net Income and Loss - Net income attributable to ordinary shareholders in Q4 2023 was $1.3 million, or $0.02 per share, compared to a loss of $0.9 million in Q4 2022[5] - Net loss attributable to ordinary shareholders from continuing operations for the three months ended September 30, 2023, was $4,068 million, compared to a loss of $2,235 million for the same period in 2022[18] - Net loss for the three months ended December 31, 2023, was $3,175 million, a decrease from $14,308 million for the same period in 2022[20] - Net loss from continuing operations per share for the three months ended December 31, 2023, was $(0.06), compared to $(0.19) for the same period in 2022[21] Cash Position - As of December 31, 2023, the company had cash resources of $10.0 million, including cash and cash equivalents of $4.8 million and restricted cash of $5.2 million[7] Product Launch and Future Outlook - The company launched its AI-driven product HybriU in July 2023, targeting the hybrid and digital education market[1] - Ambow expects continued financial momentum and profitability for the full year 2024 as it expands its AI technology in higher education and workforce training[2]

Financial Performance - Net revenues from continuing operations decreased from $14.8 million in 2022 to $9.2 million in 2023, primarily due to the closure of Bay State College in August 2023[199]. - The net loss from continuing operations narrowed to $3.2 million in 2023 from $9.3 million in 2022[199]. - Gross profit margin increased from 1.9% in 2022 to 27.2% in 2023, attributed to a decrease in cost of revenues following the closure of Bay State College[209]. - Deferred revenue decreased from $0.8 million in 2022 to $0.5 million in 2023, reflecting a reduction in tuition received in advance from students[221]. - Net revenues from continuing operations decreased by 37.8% from $14.8 million in 2022 to $9.2 million in 2023, primarily due to the permanent closure of Bay State College on August 31, 2023[240]. - Cost of revenues from continuing operations decreased by 53.8% from $14.5 million in 2022 to $6.7 million in 2023, also attributed to the closure of Bay State College[240]. - Total operating expenses from continuing operations decreased by 30.6% from $9.8 million in 2022 to $6.8 million in 2023, due to stringent expense controls[241]. - Selling and marketing expenses decreased by 26.7% from $1.5 million in 2022 to $1.1 million in 2023, reflecting improved operating efficiency[241]. - Other net income from continuing operations increased to $1.1 million in 2023 from $0.2 million in 2022, primarily due to a $1.4 million gain on disposal of assets[242]. - Net loss improved from $14.3 million in 2022 to $3.2 million in 2023, reflecting the aforementioned factors[242]. Operational Changes - The closure of Bay State College was finalized on August 31, 2023, after the New England Commission of Higher Education announced the withdrawal of its accreditation[201]. - The company completed the sale of Ambow China for $12.0 million on December 31, 2022, following regulatory changes prohibiting foreign investments in private schools in China[203]. - The number of student enrollments is influenced by demand for educational programs, fees charged, marketing effectiveness, and competition[206]. - The company plans to continue adding new offerings to attract a diverse student base and enhance cross-selling opportunities[206]. Research and Development - Research and development expenses increased in 2023, primarily due to a $0.5 million increase associated with the development of the new product, HybriU[213]. - Research and development expenses increased from nil in 2022 to $0.5 million in 2023, mainly due to the development of the new product, HybriU[242]. Cash Flow and Liquidity - Net cash used in operating activities from continuing operations was $0.3 million in 2023, a significant decrease from $5.6 million in 2022[247]. - As of December 31, 2023, the company had $4.8 million in unrestricted cash and cash equivalents, indicating a focus on liquidity management[244]. - Cash, cash equivalents, and restricted cash at the end of the year from continuing operations was $10.1 million as of December 31, 2023[246]. - Net cash provided by financing activities from continuing operations was $2.8 million in 2023, slightly down from $3.0 million in 2022[251]. - The company raised $2.0 million through private investments of ordinary shares and warrants in February 2023[253]. - The company expects to require additional capital to execute its longer-term business plan, indicating potential future financing needs[244]. Shareholder and Equity Information - As of December 31, 2023, the Group granted up to 7,305,222 Class A ordinary shares to employees, outside directors, and consultants under the Amended 2010 Equity Incentive Plan[291]. - The maximum number of shares that may be issued under the Amended 2010 Plan is 6,500,000 Class A ordinary shares, plus additional shares from expired or forfeited options[290]. - The Board of Directors approved the grant of 5.2 million fully vested Class A ordinary shares to senior employees for past services on June 30, 2022[276]. - The company has entered into indemnification agreements with directors and executive officers for protection against costs and expenses incurred in their roles[331]. - Major shareholders include New Flourish Holdings Limited with 21.42% and CEIHL Partners (I) Limited with 5.20% of Class A ordinary shares[320]. - The executive officers and directors collectively own 1.84% of Class A ordinary shares and 9.99% of total ordinary shares[319]. Tax and Regulatory Information - The Cayman Islands impose no income, corporate, or capital gains tax on the creation, issuance, or delivery of ADSs or ordinary shares[344]. - The company has obtained a 20-year tax undertaking from the Governor of the Cayman Islands, ensuring no new taxes will be levied on profits or income during this period[345]. - U.S. Holders must include cash dividends as ordinary income, with dividends treated as such if paid from current or accumulated earnings and profits[353]. - Non-corporate U.S. Holders may benefit from a lower long-term capital gains tax rate on cash dividends if certain conditions are met, including the ADSs being readily tradable on an established securities market[354]. Internal Controls and Governance - The management concluded that internal control over financial reporting was effective as of December 31, 2023[395]. - There were no significant changes in internal controls over financial reporting during the reporting period that materially affected the effectiveness[396]. - The company’s audit committee financial expert is Yanhui Ma, an independent director[397].