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 SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.
FINANCIAL TABLES FOLLOW
EPICQUEST EDUCATION GROUP INTERNATIONAL LTD
CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2024 and SEPTEMBER 30, 2023
(US$, except share data and per share data, or otherwise noted)
March 31, September 30,
2024 2023
------------- -------------
US$ US$
Assets (Unaudited) (Audited)
Current Assets
Cash and cash equivalents 587,031 4,966,839
Restricted cash 338,712 338,712
Receivables, net 168,222 36,503
Other receivable 115,078 107,179
Prepaid expenses 8,626,693 2,326,185
Inventory 45,030 41,185
Income tax receivable 897,861 894,743
------------ -------------
Total current assets 10,778,627 8,711,346
Non-current assets
Property and equipment, net 1,653,409 2,041,242
Right-of-use assets 832,775 1,117,554
Intangible assets 4,575,135 4,686,228
Goodwill 2,652,772 2,652,766
------------ -------------
Total assets 20,492,718 19,209,136
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
Current liabilities
Accounts payable and other
liabilities 2,710,991 2,121,051
Loan payable 409,956 -
Income tax payable - 1,872
Due to related party 140,000 140,000
Lease liabilities -- current 424,704 559,375
Deferred revenue 2,627,427 4,057,517
------------ -------------
Total current liabilities 6,313,078 6,879,815
Non-current liabilities
Lease liabilities -- non current 406,289 571,131
Deferred income tax liabilities 706,214 824,480
------------ -------------
Total liabilities 7,425,581 8,275,426
Commitments and contingencies
Shareholders' equity
Common shares, US$0.0015873 par
value, 31,500,000 shares authorized,
12,818,173 and 11,998,173 shares
issued and outstanding as of March
31, 2024 and September 30, 2023,
respectively 20,347 19,045
Additional paid-in capital 19,388,914 18,232,263
Deficit (12,279,190) (9,071,818)
Accumulated other comprehensive loss (43,970) (36,284)
------------ -------------
Total shareholders' equity 7,086,101 9,143,206
Noncontrolling interests 5,981,036 1,790,504
------------ -------------
Total liabilities and shareholders'
equity 20,492,718 19,209,136
EPICQUEST EDUCATION GROUP INTERNATIONAL LTD
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
FOR THE SIX MONTHS ENDED MARCH 31, 2024 AND 2023
(US$, except share data and per share data, or otherwise noted)
For The For The
Six Months Six Months
Ended Ended
March 31, March 31,
2024 2023
------------ ------------
US$ US$
(Unaudited) (Unaudited)
Revenues 4,162,650 3,420,669
Costs of services 1,759,229 769,619
----------- -----------
Gross profit 2,403,421 2,651,050
Operating costs and expenses:
Selling expenses 696,052 474,169
General and administrative 5,850,927 5,367,085
----------- -----------
Total operating costs and expenses 6,546,979 5,841,254
----------- -----------
Income from operations (4,143,558) (3,190,204)
Other (income) expenses:
Other income (493,554) (1,655)
Interest income (19,948) (20,833)
Foreign exchange gain - (5)
----------- -----------
Total other (income) expenses (513,502) (22,493)
Loss before provision for income taxes (3,630,056) (3,167,711)
Current income tax expense 5,124 8,553
Deferred income tax expense (recovery) (118,266) (172,975)
----------- -----------
Income taxes expense (recovery) (113,142) (164,422)
----------- -----------
Net loss (3,516,914) (3,003,289)
----------- -----------
Net loss attributable to
noncontrolling interest (309,542) (305,928)
Net loss attributable to common
stockholders (3,207,372) (2,697,361)
Foreign currency translation
adjustment (7,686) (4,154)
----------- -----------
Total Comprehensive loss (3,524,600) (3,007,443)
----------- -----------
Basic & diluted net loss per share $ (0.26) $ (0.24)
Weighted average number of ordinary
shares-basic and diluted 12,370,905 11,469,800
EPICQUEST EDUCATION GROUP INTERNATIONAL LTD
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED MARCH 31, 2024 AND 2023
(US$, except share data and per share data, or otherwise noted)
For The For The
Six Months Six Months
Ended Ended
March 31, March 31,
2024 2023
------------- -----------
US$ US$
Cash Flows from Operating Activities: (Unaudited) (Unaudited)
Net loss (3,516,914) (3,003,289)
Adjustments for items not affecting
cash:
Depreciation and amortization 227,319 163,863
Stock-based compensation expenses 1,120,299 900,877
Accretion of finance lease - 3,546
Net (gain)/loss from disposal of fixed
assets (477,115) -
Deferred income tax expense (118,266) (172,975)
Changes in operating assets and
liabilities
Accounts receivable (139,617) 235,640
Operating leases (14,734) (51,592)
Inventory (3,845) (16,350)
Prepaid expenses (6,300,508) (176,420)
Accounts payable & accrued liabilities 589,942 (225,407)
Deferred revenue (1,430,090) (2,364,570)
Income tax(payable)/ receivable (4,990) 360,126
Student deposits - 6,000
------------ -----------
Net cash used in operating activities (10,068,519) (4,340,551)
------------ -----------
Cash Flows from Investing Activities:
Purchase of property and equipment (8,398) (7,641)
Long term investment received for
SouthGilmore 3,737,728
Net cash acquired from business
acquisitions - 562,791
Proceeds from sale of property and
equipment 757,115 -
------------ -----------
Net cash provided by investing
activities 4,486,445 555,150
------------ -----------
Cash Flows from Financing Activities:
Proceeds from financing offering 800,000 -
Proceeds borrowed from related parties 409,956 -
Repayment of lease liabilities - (15,001)
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