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EpicQuest Education Announces Fiscal Year 2024 Financial Results and an Operations Update

Core Insights - EpicQuest Education Group International Limited reported a 43% increase in revenue for the fiscal year 2024, primarily driven by the success of its international foundational programs [2][4] - The company is focusing on internationalization as a key strategy to enhance student enrollment and revenue streams [2][22] Financial Performance - Revenues for the fiscal year ended September 30, 2024, were $8.15 million, up from $5.71 million in the previous year, marking an increase of $2.44 million or 42.7% [4] - Gross profit increased to $5.31 million from $4.21 million, a rise of 26.1%, although gross margin decreased to 65.2% from 73.7% due to higher service costs [5] - Operating expenses rose to $12.7 million, an increase of 13.4% from $11.2 million, driven by higher general and administrative expenses and selling expenses [6] - The operating loss was $7.43 million, compared to a loss of $7.02 million in the previous year [7] - Net loss for the fiscal year was $6.57 million, an improvement from a net loss of $7.07 million in the prior year [8] Enrollment and Program Expansion - Davis University expanded its campus to downtown Toledo to accommodate expected growth in international student enrollment [3] - Enrollment in Davis University's foundational programs increased significantly, with 220 students for the 2024-2025 academic year compared to 102 students in the previous year [16] - The company has established agreements to enhance international student recruitment, including a new pathway for students from Southeast Asian and South American colleges to complete degrees at Davis University [18] Strategic Initiatives - The company is developing an AI-powered tutoring and learning platform to improve student engagement and achievement [3] - EpicQuest Education's internationalization strategy includes exporting educational programming to students in their home countries, creating a unique revenue stream [22] - The cooperative diploma programs at EduGlobal College are expected to enhance domestic recruiting efforts by providing students with practical work experience [19] Financial Condition - As of September 30, 2024, the company had $1.15 million in cash, a decrease of 76.9% from $4.97 million the previous year [10] - Working capital was negative $5.47 million, with a current ratio of 0.49x, down from a positive working capital of $1.83 million and a current ratio of 1.27x in the prior year [11] - Stockholders' equity decreased to $5.17 million, a drop of 43.4% from $9.14 million [11] Cash Flow and Financing - Net cash used in operating activities was $9.48 million, an increase from $5.25 million in the previous year [12] - The company generated $0.72 million from investing activities, primarily from the sale of property and equipment [13] - Net cash provided from financing activities was $4.95 million, with $0.8 million raised through equity financing [14]