Vasta Platform (US:VSTA)2025-08-06 20:20Unaudited Condensed Interim Consolidated Financial Statements This section presents the unaudited condensed interim consolidated financial statements and their accompanying notes for the period ended June 30, 2025 Unaudited Condensed Interim Consolidated Statements of Financial Position The Company's financial position as of June 30, 2025, shows decreased total assets and equity, with reduced cash and trade receivables | Metric | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | Change (R$ thousands) | % Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Total Assets | 7,096,696 | 7,205,155 | (108,459) | -1.50% | | Total Liabilities | 2,160,553 | 2,211,844 | (51,291) | -2.32% | | Total Shareholder's Equity | 4,936,143 | 4,993,311 | (57,168) | -1.14% | | Cash and cash equivalents | 14,257 | 84,532 | (70,275) | -83.13% | | Marketable securities | 300,942 | 111,313 | 189,629 | 170.36% | | Trade receivables | 725,258 | 863,244 | (137,986) | -15.98% | | Intangible assets and goodwill | 5,088,974 | 5,160,785 | (71,811) | -1.39% | Unaudited Condensed Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income or Loss The Company reported an increased net loss for the six-month period ended June 30, 2025, despite higher net revenue, due to increased operating expenses and negative finance results | Metric | June 30, 2025 (R$ thousands) | June 30, 2024 (R$ thousands) | Change (R$ thousands) | % Change | | :------------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | :------- | | Net revenue from sales and services | 788,892 | 755,068 | 33,824 | 4.48% | | Gross profit | 491,358 | 484,218 | 7,140 | 1.47% | | Operating income (expenses) | (465,468) | (431,502) | (33,966) | 7.87% | | Finance result (net) | (95,392) | (104,054) | 8,662 | -8.32% | | Loss for the period | (59,527) | (44,229) | (15,298) | 34.59% | | Basic Loss per share (R$) | (0.74) | (0.52) | (0.22) | 42.31% | | Diluted Loss per share (R$) | (0.74) | (0.52) | (0.22) | 42.31% | Unaudited Condensed Interim Consolidated Statements of Changes in Equity Total shareholder's equity decreased from R$4,993,311 thousand as of December 31, 2024, to R$4,936,143 thousand as of June 30, 2025, primarily due to the loss for the period | Metric | December 31, 2024 (R$ thousands) | June 30, 2025 (R$ thousands) | Change (R$ thousands) | | :-------------------------------- | :------------------------------- | :----------------------------- | :-------------------- | | Total Shareholder's Equity | 4,993,311 | 4,936,143 | (57,168) | | Loss for the period | - | (59,433) | (59,433) | | Share based compensation granted | - | 2,359 | 2,359 | Unaudited Condensed Interim Consolidated Statements of Cash Flows The Company experienced a net decrease in cash and cash equivalents for the six-month period ended June 30, 2025, primarily driven by significant cash used in investing activities | Metric | June 30, 2025 (R$ thousands) | June 30, 2024 (R$ thousands) | Change (R$ thousands) | % Change | | :-------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | :------- | | Net cash from operating activities | 171,317 | 82,596 | 88,721 | 107.41% | | Net cash used in investing activities | (228,614) | (82,654) | (145,960) | 176.59% | | Net cash used in financing activities | (12,978) | (44,938) | 31,960 | -71.12% | | Net decrease in cash and cash equivalents | (70,275) | (44,996) | (25,279) | 56.18% | | Cash and cash equivalents at end of period | 14,257 | 50,868 | (36,611) | -71.97% | Notes to the Unaudited Condensed Interim Consolidated Financial Statements This section provides detailed notes explaining the significant accounting policies, estimates, and financial risk management practices underlying the interim consolidated financial statements 1. The Company and Basis of Presentation Vasta Platform Limited, a Cayman Islands-incorporated company headquartered in São Paulo, Brazil, provides technology-powered educational content and digital solutions for K-12 private schools - Vasta Platform Limited is a publicly held company incorporated in the Cayman Islands, with headquarters in São Paulo, Brazil, providing technology-powered educational content and digital solutions for K-12 private schools12 - The Company is a subsidiary of Cogna Educação S.A. and its shares are traded on Nasdaq Global Select Market under ticker symbol 'VSTA' since July 31, 202013 2. Basis of accounting The interim financial statements for the six-month period ended June 30, 2025, are prepared in accordance with IAS 34 and presented in thousands of Brazilian Reais, consolidating entities where Vasta holds a controlling interest - Interim Financial Statements are prepared in accordance with IAS 34 – Interim Financial reporting – and presented in thousands of Brazilian Reais ("R$"), the Company's functional currency1415 | Company | Interest (June 30, 2025) | Interest (December 31, 2024) | | :------------------------------------------ | :----------------------- | :--------------------------- | | Somos Sistemas de Ensino S.A. | 100% | 100% | | Colégio Anglo São Paulo Ltda. | 100% | 100% | | MVP Consultoria e Sistemas Ltda. | 100% | 100% | | Sociedade Educacional da Lagoa Ltda | 100% | 100% | | EMME – Produções de Materiais em Multimídia Ltda | 100% | 100% | | Escola Start Ltda. | 51% | 51% | 3. Use of estimates and judgements Management applies judgments and estimates in preparing the interim financial statements, which affect reported amounts and are continuously evaluated, with fair value measurements categorized into Level 1, 2, or 3 inputs - Management makes judgments and estimates that affect the application of accounting policies and reported financial amounts, which are continually evaluated1920 - Fair value measurements are categorized into Level 1 (quoted market prices), Level 2 (observable inputs), and Level 3 (unobservable inputs), with third-party appraisers engaged for Level 2/3 valuations if needed2125 [4. Material accounting policies and new and not yet effective accounting standards](index=9&type=section&id=