EEIQ’s EduGlobal College Signs Agreements with Two Schools to Propel Student Advancement
The Agreements are a Key Element of EEIQ’s Growth Plan of Internationalization
MIDDLETOWN, Ohio, September 26, 2023 /PRNewswire/ -- EpicQuest Education Group International Limited (NASDAQ: EEIQ), (“EpicQuest Education”, “EEIQ” or the “Company”), a provider of comprehensive education solutions for domestic and international students seeking college and university degrees in the US, Canada and the UK, today announced that EduGlobal College (“EduGlobal”) signed a Memorandum of Understanding and Articulation Agreement with Corpus Christi College (“Corpus Christi”), located in Vancouver, Canada, and an Articulation Agreement with Academy of Learning, which has learning campuses throughout Canada. The agreements provide for ongoing collaborations between EduGlobal and the two institutions of higher learning.
Cam Parker, Director of EduGlobal College, commented, “We are pleased to enter into these agreements as it furthers our mission of providing our international students with the best possible options to further their academic journeys and professional development. EduGlobal is renowned for providing the very best of English proficiency courses, providing international students the linguistic skill set needed in an academic setting. We are pleased to have developed these academic pathways with these two outstanding institutions as it enhances our students’ choices to find the best avenues towards achieving their career goals. We at EduGlobal feel strongly that our greatest reward is the ongoing success of our students and their ability to find fulfillment in their personal and professional lives.”
The purpose of the MOU and Articulation Agreement between EduGlobal and Corpus Christi College is to promote Corpus Christi’s academic programs to students at EduGlobal and to facilitate admission and credit transfers for qualified international students from EduGlobal to an Associate of Arts Degree Program at Corpus Christi. The agreement commenced from August 1, 2023 and continues to August 1, 2027.
The purpose of the Articulation Agreement between EduGlobal and Academy of Learning is to promote Academy of Learning’s academic programs to students at EduGlobal and to facilitate admission and credit transfers for qualified international students from EduGlobal to certificate and diploma programs at Academy of Learning. The agreement commenced from July 15, 2023 and continues to July 15, 2025.
The Company believes that its collaborative programs with other schools constitute a vital element in its mission of internationalization. A vital component of EpicQuest Education’s growth plan is to have its operated colleges, Davis College and EduGlobal College, become increasingly connected to international programs in order to offer enhanced globalized learning to its students as well as pathways to achieve advanced degrees. The Company’s strategic growth plan is to achieve international expansion and to establish EEIQ as a truly international service provider of higher learning.
About Corpus Christi College
Corpus Christi College (“Corpus Christi”) is a liberal arts school located on the campus of the University of British Columbia (“UBC”) in Vancouver, Canada, western Canada’s largest university. Founded in 1990, the college offers classes in arts, business and science in small class sizes with close student-faculty interaction. Students at Corpus Christi are challenged to pursue an education that combines excellence in humanistic and cultural development with specialized professional training. Corpus Christi is recognized by UBC’s public universities with the option to supplement their studies with courses at UBC. Corpus Christi is a member of the Association of Catholic Colleges and Universities of Canada (ACCUC), a group that represents Canada’s leading Catholic institutions of higher education. For more information, please visit https://corpuschristi.ca/.
About Academy of Learning Career College
Academy of Learning Career College (“Academy of Learning”) has over 50 campuses with over 100,000 students from British Columbia to Prince Edward Island in Canada. The college was founded as a franchise system in 1987 and originally specialized in computer and business skills training for adult learners; it now provides programs that are Diploma-level and Certificate-level in business, healthcare, social work, web design, and others. Academy of Learning offers educational content to students in a traditional mode as well as online, utilizing online digital media, textbooks and software programs. The college is committed to providing its students with a high-quality curriculum and skills building to give them an edge in the workforce. For more information, please visit www.academyoflearning.com.
About EduGlobal College
EduGlobal College is a private college located in the Metro Vancouver area, British Columbia. EduGlobal College provides English language programs for international students who are seeking academic and career advancement and specializes in English for Academic Purposes (EAP) programs (also known as English as a Second Language, or ESL, programs) that focus on helping international students acquire the advanced competencies in academic English that will be necessary for them to complete their degree programs. In tandem with its EAP program, EduGlobal College offers first-year university courses and a Master’s Academic Preparation Program to help prepare international students who have completed a bachelor’s degree and aspire to pursue graduate studies at a Canadian university. EduGlobal College also offers students an innovative model for bridging the gap between private and public sector post-secondary education in Canada through its pathway program. EduGlobal College is approved by The Private Training Institutions Branch (PTIB) of the Ministry of Advanced Education and Skills Training in the Province of British Columbia. For more information, please visit https://eduglobalcollege.com/.
About EpicQuest Education Group International Limited
EpicQuest Education Group International Limited ("EpicQuest Education" or the "Company”) provides comprehensive education solutions for domestic and international students seeking university and college degrees in the US, Canada and the UK. The Company owns and operates EduGlobal College, based in British Columbia, Canada, which focuses on English proficiency educational programming for students pursuing academic degrees. The Company operates and is a 70% owner of Davis College, a career training college located in Toledo, Ohio. In addition, the Company has a recruiting relationship with the Miami University Regional campuses, where it maintains residential facilities, a full-service cafeteria, recreational facilities, shuttle buses and an office for the regional campuses that provides study abroad and post-study services for its students; these facilities are not owned, maintained, operated or are a part of Miami University. The Company is also a recruiting agent for the University of the West of Scotland (through The Education Group (London) Ltd) and Coventry University, both of which are located in the UK. For more information, please visit https://www.epicquesteducation.com/.
Safe Harbor Statement
Certain of the statements made in this press release are “forward-looking statements” within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this press release include, without limitation, the Company’s ability to implement its international strategy as described. Forward-looking
statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “point to,” “project,” “could,” “intend,” “target” and other similar words and expressions of the future.
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.
Contacts:
EpicQuest Education Group International Limited
+1 513-649-8350
Investor Relations:
Precept Investor Relations LLC
David Rudnick
+1 646-694-8538
Source: EpicQuest Education Group International Limited
EpicQuest Education to Present at the H.C. Wainwright 25th Annual Global Investment Conference
MIDDLETOWN, September 6, 2023 /PRNewswire/ -- EpicQuest Education Group International Limited (NASDAQ: EEIQ), (“EpicQuest Education”, “EEIQ” or the “Company”), a provider of comprehensive education solutions for domestic and international students seeking college and university degrees in the US, Canada and the UK, today announced that Zhenyu Wu, the Company’s Chief Financial Officer, will present virtually at the H.C. Wainwright 25th Annual Global Investment Conference being held from September 11-13, 2023.
The EpicQuest Education presentation, with CFO Zhenyu Wu and independent Board Member Craig Wilson presenting, will be available on-demand through the H.C. Wainwright conference portal beginning at 7:00 AM on Monday, September 11, 2023. The EpicQuest Education corporate presentation is available at the Company’s website at https://epicquesteducation.com/investor-relations/events-presentations.html
The EpicQuest Education management team will be available for one-on-one meetings during the conference. Registered attendees will be able to request in-person or virtual meetings via the conference portal. To register for the conference, please visit https://hcwevents.com/annualconference/.
About EpicQuest Education Group International Limited
EpicQuest Education Group International Limited ("EpicQuest Education" or the "Company”) provides comprehensive education solutions for domestic and international students seeking university and college degrees in the US, Canada and the UK. The Company owns and operates EduGlobal College, based in British Columbia, Canada, which focuses on English proficiency educational programming for students pursuing academic degrees. The Company operates and is a 70% owner of Davis College, a career training college located in Toledo, Ohio. In addition, the Company has a recruiting relationship with the Miami University Regional campuses, where it maintains residential facilities, a full-service cafeteria, recreational facilities, shuttle buses and an office for the regional campuses that provides study abroad and post-study services for its students; these facilities are not owned, maintained, operated or are a part of Miami University. The Company is also a recruiting agent for the University of the West of Scotland (through The Education Group (London) Ltd) and Coventry University, both of which are located in the UK. For more information, please visit www.epicquesteducation.com/.
Safe Harbor Statement
Certain of the statements made in this press release are “forward-looking statements” within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or
implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “point to,” “project,” “could,” “intend,” “target” and other similar words and expressions of the future.
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.
Contacts:
EpicQuest Education Group International Limited
+1 513-649-8350
Investor Relations:
Precept Investor Relations LLC
David Rudnick
+1 646-694-8538
Source: EpicQuest Education Group International Limited
EpicQuest Education’s Davis College Announces Articulation Agreement with Northeastern University – Ranked by US News as a Top 50 US University
EEIQ is Committed to Student Success at Davis College and EduGlobal College, its Two Owned and Operated Colleges
MIDDLETOWN, Ohio, July 31, 2023 /PRNewswire/ -- EpicQuest Education Group International Limited (NASDAQ: EEIQ), (“EpicQuest Education”, “EEIQ” or the “Company”), a provider of comprehensive education solutions for domestic and international students seeking college and university degrees in the US, Canada and the UK, today announced that on July 19, 2023, Davis College and Northeastern University signed an Articulation Agreement (the “Agreement”) whereby upon admission, Davis College students can transfer credits earned at Davis College to Northeastern University’s College of Professional Studies Bachelor of Science programs.
“Our agreement with Northeastern University offers our students a pathway for achieving Bachelor of Science degrees in three distinct programs,” said Diane Brunner, President of Davis College. “Northeastern University is widely regarded as one of the most prestigious universities in the US, and we are pleased to enter this agreement given their history of academic excellence and commitment to innovation. And while Davis College will begin to offer a four-year Bachelor of Science in Business degree in the Fall of 2023, we are pleased to provide our students with an academic pathway with Northeastern University as both schools are well aligned in providing elite career-oriented professional training.”
“EpicQuest Education’s mission is to provide a cost-effective and a skills-based academic experience for its students. In addition, our numerous collaborations with institutions of higher learning in Malaysia, the Philippines, Singapore, Sri Lanka, China and the UK can potentially offer enriched multicultural experiences to our students,” continued Ms. Brunner. “In addition to our pathway programs, our core mission of internationalization helps Davis College students reach their full potential so as to better prepare them for careers in the global economy.”
As described in the Agreement with Northeastern University, Davis College students would be required to complete applicable Associate of Applied Business degrees. Upon admission to Northeastern University’s College of Professional Studies programs, Davis College students would be able to transfer the credits earned at Davis College towards achieving Bachelor of Science degrees at Northeastern University’s College of Professional Studies in Management, Digital Media and Communication, and Project Management. Northeastern University’s College of Professional Studies has full discretion as to the acceptance of each Davis College student into these programs. The Agreement is effective beginning in Spring 2023 and will be in effect for an initial period of three years, and will be automatically extended unless terminated by either party.
About Northeastern University
Northeastern University is a prominent private research university located on an urban campus in Boston, and is a global research university as well as a recognized leader in experiential lifelong learning. Northeastern University’s approach is to integrate real-world experience with education, research, and innovation that empowers its students. The university has one of the largest co-op programs in the world where students alternate periods of academic study with periods of professional employment related to their major. With more than 36,000 full-time and part-time students, Northeastern University offers undergraduate and graduate programs in 10 colleges and schools across its 14 campuses worldwide. Northeastern University is ranked #44 in the current US News annual ranking of top US universities, which can be seen online at https://www.usnews.com/best-colleges/rankings/national-universities. For more information about Northeastern University, please visit www.northeastern.edu.
About Davis College
Davis College was founded in 1858 and is a private career-training college located in Toledo, Ohio. Davis College offers a specialized professional career training curriculum in numerous fields, and its mission is to provide marketable skills that enhance the employability of its graduates. Davis College offers coursework flexibility to ensure program success as well as externship opportunities that provide its student population with real-world skill sets prior to graduation. In addition to its offering a four-year Bachelor of Science in Business degree, expected to begin in the Fall of 2023, Davis College has agreements with several four-year US universities for ‘transfer pathways’ that pave the way for its associate degree students to gain admission with the ability to transfer earned course credits. Davis College is accredited by The Higher Learning Commission and the Ohio State Board of Career Colleges and Schools with programs authorized by the Ohio Board of Higher Education. For more information, please visit www.daviscollege.edu/.
About EpicQuest Education Group International Limited
EpicQuest Education Group International Limited ("EpicQuest Education" or the "Company”) provides comprehensive education solutions for domestic and international students seeking university and college degrees in the US, Canada and the UK. The Company owns and operates EduGlobal College, based in British Columbia, Canada, which focuses on English proficiency educational programming for students pursuing academic degrees. The Company operates and is a 70% owner of Davis College, a career training college located in Toledo, Ohio. In addition, the Company has a recruiting relationship with the Miami University Regional campuses, where it maintains residential facilities, a full-service cafeteria, recreational facilities, shuttle buses and an office for the regional campuses that provides study abroad and post-study services for its students; these facilities are not owned, maintained, operated or are a part of Miami University. The Company is also a recruiting agent for the University of the West of Scotland (through The Education Group (London) Ltd) and Coventry University, both of which are located in the UK. For more information, please visit www.epicquesteducation.com/.
Safe Harbor Statement
Certain of the statements made in this press release are “forward-looking statements” within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “point to,” “project,” “could,” “intend,” “target” and other similar words and expressions of the future.
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.
Contacts:
EpicQuest Education Group International Limited
+1 513-649-8350
Investor Relations:
Precept Investor Relations LLC
David Rudnick
+1 646-694-8538
Source: EpicQuest Education Group International Limited
EpicQuest Education Group International Ltd. Announces First Half Fiscal Year 2023 Financial Results and Operations Update
MIDDLETOWN, Ohio, July 14, 2023 /PRNewswire/ -- EpicQuest Education Group International Limited (NASDAQ: EEIQ), ("EpicQuest Education", "EEIQ" or the "Company"), a provider of comprehensive education solutions for domestic and international students seeking college and university degrees in the US, Canada and the UK, today announced its first half financial results for the six months ended March 31, 2023 and an operations update.
"Our operations provide a diversified revenue stream from our two owned and operated colleges as well from our recruiting relationships. We believe that EEIQ's educational niche provides practical educational programming that meaningfully connects to students who see our programs as an effective way to reach their career goals. However, the effects of the global Covid-19 pandemic severely hampered our recruiting activities in the year-ago period which, coupled with a heightened wave of the pandemic in China from November 2022 to February 2023, caused substantially lower foreign student in-person attendance at our US campuses, and resulted in an operating loss in the current period."
However, our costs decreased for the first six months of fiscal 2023 as compared to the year-ago period due to operational synergies, which resulted in an increase in our gross margin. With the worst of the pandemic expected to be behind us, we believe that our strong recruiting efforts and a normalized learning environment will result in improved top line results going forward, while cost synergies across our operations could continue to enhance our gross margin," continued CEO Jianbo Zhang.
"Our two acquired colleges, EduGlobal College and Davis College, have developed cross-border educational collaborations and created global academic programming designed to better serve our students' needs and have diversified our student base, which steps taken together are expected to improve our operating metrics over time. We believe that an enriched international academic experience will help our students reach their full potential and better prepare them for fulfilling careers. Further, our recently executed five-year agreement with Miami University to recruit for the MU Regional Campuses' English Language Center will continue to serve as a key cornerstone for our business. Our financial condition remains strong, and we plan to execute our international growth strategy through additional collaborations and by acquiring colleges that meet our growth criteria," CEO Jianbo Zhang concluded.
First Half 2023 Financial Results Ended March 31, 2023
Revenues were $3.42 million for the first half of fiscal 2023 compared to $4.06 million for the same period of 2022, representing a decrease of $0.64 million, or 15.6%. The decrease in revenue was mainly due to the effects of the global Covid-19 pandemic having severely hampered our recruiting activities in the year-ago period, which coupled with a heightened wave of the pandemic in China from December 2022 to February 2023, caused lower foreign student in-person attendance at our US campuses.
Gross profit was $2.65 million for the first half of fiscal 2023 compared to $2.73 million for the same period of 2022, representing a decrease of $0.08 million, or 2.8%. The decrease was primarily due to the decrease in revenue offset by a 42.0% decrease in the cost of services attributable to operating efficiencies implemented across our operations. As a result, our gross margin increased to 77.5% for the first half ended March 31, 2023 from 67.3% for the same period of 2022.
Operating Expenses were $5.84 million for the first half of fiscal 2023 compared to $6.06 million for the same period of 2022, representing a decrease of $0.22 million, or 3.6%. The decrease was due to a 37.4% decrease in selling expenses to $0.47 million from $0.76 million in the same period of 2022 which was offset by a 1.3% increase in general and administrative expenses to $5.37 million from $5.30 million. General and administrative expenses were somewhat higher in both periods due to non-cash expenses attributable to share-based compensation granted to directors, officers and employees for retention purposes following the Company's IPO in March of 2021, as well as professional fees that were primarily related to the Company's two major acquisitions and expansion efforts.
Operating loss was $3.19 million for the first half of fiscal 2023 compared to an operating loss of $3.33 million for the same period of 2022. This was due to lower revenue in the current period, which was offset by the year-over-year decrease in direct and indirect expenses.
Income tax recovery was $0.16 million for the first half of fiscal 2023 as compared to income tax expense of $0.01 million for the same period of 2022.
Net loss was $3.00 million for the first half of fiscal 2023 compared to a net loss of $2.54 million for the same period of 2022, which was due to factors as discussed above.
Net Loss Per Basic and Diluted Share for the first half of fiscal 2023 was $0.24 compared to a net loss of $0.23 per basic and diluted share for the same period of 2022. The weighted average number of shares used in the computation of basic and diluted earnings per share for the first half of 2023 was 11,469,800 shares compared to 10,835,956 shares for basic and diluted earnings per share in the prior year period.
Financial Condition
As of March 31, 2023, the Company had $5.86 million in cash and cash equivalents, a decrease of $5.58 million or 48.8% as compared to $11.44 million as of September 30, 2022. As of March 31, 2023, working capital was $4.39 million (current assets minus current liabilities) and the current ratio (current assets divided by current liabilities) was 2.0, as compared to working capital of $8.01 million and a current ratio of 2.3 as of September 30, 2022. Stockholders' equity as of March 31, 2023 was $11.64 million, a decrease of $3.46 million or 22.9% as compared to $15.10 million as of September 30, 2022.
Liquidity and Capital Resources
Net cash used in operating activities for the six months ended March 31, 2023 was $4.34 million as compared to $3.16 million for the six months ended March 31, 2022. This increase was primarily due to the changes in net income and other working capital balances. Changes in these balances are included in the changes in assets and liabilities presented in the consolidated statement of cash flows.
Net cash provided by investing activities was $0.56 million for the six months ended March 31, 2023 as compared to net cash used in investing activities of $0.18 million for the six months ended March 31, 2022. The net cash provided by investing activities for the six months ended March 31, 2023 was attributable to the purchase price allocation of acquiring 70% of the holding company of Davis College on December 1, 2022, when the change of control on Davis College became effective. For the six months ended March 31, 2022, we used $1.95 million in cash for business acquisitions, which was largely offset from proceeds resulting from the sale of property and equipment adjacent to the campuses of Miami University Regionals.
Net cash used in financing activities was $1.45 million for the six months ended March 31, 2023 as compared to net cash used in financing activities of $0.27 million for the six months ended March 31, 2022. For the six months ended March 31, 2023, we used $1.25 million in cash for a contractual share buyback, and for the six months ended March 31, 2022, we borrowed cash from related parties.
Operations Update
In March 2020, The World Health Organization declared the Covid-19 outbreak to be a global pandemic. The pandemic resulted in and continues to cause travel restrictions, related public health orders and economic uncertainties that affect the normal operations of many businesses, including our higher education company. The pandemic went through multiple waves, with the most recent surge occurring in the period from November 2022 to February 2023 in China – and which occurred during the Company's first six months of its fiscal year ended March 31, 2023.
For the six months ended March 31, 2023, our indicators of recruitment and enrollment for the English Language Program at the Miami University (MU) Regional Campuses were adversely impacted as compared to those for the year-ago period as the impact from the Covid-19 pandemic caused deferred consequences in the educational service industry.
- As of March 31, 2023, 100 students attended in-person classes in the English Language Program at the MU Regional Campuses, which was comprised of 79 students for the Fall 2022 term and 21 students for the Spring 2023 term; this compares to 142 students who attended the program online for the same two terms in the previous year.
Davis College showed promising results in its first year of the Company's control.
- As of March 31, 2023, for Davis College, 111 students were enrolled in the Winter Quarter (November 2023 - January 2023) and 99 students in the Spring Quarter (February 2023 - May 2023). The Company gained control over Davis College on December 1, 2022 via the conversion of the acquired holding company's loan into shares of Davis College common stock.
We have made significant steps to execute upon our strategic plan to become an international service provider of higher learning by acquiring colleges around the globe and by developing cross-border educational relationships.
- EEIQ operates and is a 70% owner of Davis College, a two-year career-training college located in Toledo, Ohio. Davis College offers career-training educational courses in business management, data science, nursing, electrical engineering, and other areas that most often lead to careers that are in high demand. In June 2023, its first Bachelor's degree program, a Bachelor of Science in Business, was approved by the Higher Learning Commission (HLC). The HLC accreditation extends our academic programming beyond our two-associate degree programs and potentially opens the door for our offering additional four-year Bachelor's degrees.
- In addition, Davis College is internationalizing its academic programming internationally and fostering a global experience for its students by entering into MOUs (Memoranda of Understandings) for a variety of bilateral academic activities. As previously announced, we entered into ten MOUs that encompass institutions of higher learning in Malaysia, the Philippines, Singapore, Sri Lanka, China and the UK. We believe that several of these MOUs will translate into agreements that will contribute to the EEIQ's mission of internationalization and increase student enrollment at Davis College.
To date, the Company's internationalization efforts have resulted in a 26% increase in the enrollment of international students for the first three of its four annual quarters of the 2022 – 2023 academic year (Fall, Winter and Spring) as compared the same quarters in the 2021 – 2022 academic year, and the Company expects a significantly higher increase in the enrollment of international students for fiscal 2024. As an illustration, as previously announced, Davis College signed an agreement whereby students from Chongqing Technology and Business Institute ("CTBI") will enroll in a joint Davis College and CTBI program. Per the agreement, a cohort of 46 students will enter the joint program at Davis College each year for three years beginning in September 2023, culminating in 96 CTBI students enrolling in the joint program at Davis College in September of 2025.
- EEIQ operates and is the 100% owner of EduGlobal College, located in Vancouver, Canada, which provides English language programs for international students to help them to achieve baccalaureate and graduate programs at Canadian universities. EduGlobal College launched its pioneering pathway program with Algoma University, located in Sault Ste. Marie, Ontario, Canada, that establishes a seamless pathway for our students to earn transferable university credits and complete their baccalaureate degrees and graduate certificates. In June 2023, EduGlobal College launched a pathway program with Yorkville University, based in Toronto, Canada. The academic pathway with Yorkville University enhances our students' choices as the pathway facilitates admission to their Bachelor's degree program and the opportunity for EduGlobal students to transfer applicable course credits to Yorkville. EduGlobal College's core mission is to attract a diverse student population from around the world and provide students with a well-rounded education that will enhance all areas of their personal and professional lives.
- In May 2023, we entered into an agreement with Miami University to recruit international students residing outside of the US for admission to the English Language Center at the Miami University Regional Campuses. Our comprehensive 'One-Stop' services to international study abroad students include pick-up services, private housing, dining facilities, a gym, a student life center, safety guidance for freshmen, academic consulting, advice for further education, legal aid and medical escorting. The agreement is for five years as compared to the previous three-year agreements during the past decade, and it serves as a cornerstone for our business which we believe will help to propel us forward to fully implement our international plans.
As with other colleges and universities, we have adapted to the challenges that the Covid-19 pandemic has had on higher education. While we believe that in-person instruction and an on-campus social experience is best for our students, we believe that the new hybrid system of remote and in-person learning adopted by many colleges and universities will continue to evolve. Our creative approach to the currently modified education model is our development of numerous collaborations which include courses that can be taken both online and in-person from different countries and then applied as credit to programs while attending our schools in-person.
We believe that our current operations provide a diversified revenue stream that balances both our owned and operated colleges and our extensive recruiting relationships. We also believe that our educational niche provides practical educational programming that meaningfully connects to students who may not ordinarily pursue higher education but who see our programs as an effective way to reach their career goals. We believe that this positive and effective business model is a successful one for providing a solid return on investment for both our students as well as our shareholders.
Our strategic plan is to achieve sustainable growth through our strategy of internationalization. This refers to Davis College and EduGlobal College, our owned and operated colleges, as well as our recruiting relationship with Miami University. To achieve our strategic goals, we are focused on broadening our academic programming and diversifying and growing our student base. We believe that our strategy of internationalization, which also includes working collaborations around the world, brings out the very best in academia and student achievement.
About EpicQuest Education Group International Limited
EpicQuest Education Group International Limited ("EpicQuest Education" or the "Company") provides comprehensive education solutions for domestic and international students seeking university and college degrees in the US, Canada and the UK. The Company owns and operates EduGlobal College, based in British Columbia, Canada, which focuses on English proficiency educational programming for students pursuing academic degrees. The Company operates and is a 70% owner of Davis College, a career training college located in Toledo, Ohio. In addition, the Company has a recruiting relationship with the Miami University Regional campuses, where it maintains residential facilities, a full-service cafeteria, recreational facilities, shuttle buses and an office for the regional campuses that provides study abroad and post-study services for its students; these facilities are not owned, maintained, operated or are a part of Miami University. The Company is also a recruiting agent for the University of the West of Scotland (through The Education Group (London) Ltd) and Coventry University, both of which are located in the UK. For more information, please visit www.epicquesteducation.com/.
Safe Harbor Statement
Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.
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.
Contacts:
EpicQuest Education Group International Limited
+1 513-649-8350
Investor Relations:
Precept Investor Relations LLC
David Rudnick
+1 646-694-8538
|
FINANCIAL TABLES |
||||||||
|
CONSOLIDATED BALANCE SHEETS |
||||||||
|
AS OF MARCH 31, 2023 and SEPTEMBER 30, 2022 |
||||||||
|
(US$, except share data and per share data, or otherwise noted) |
||||||||
|
March 31, |
September 30, |
|||||||
|
US$ |
US$ |
|||||||
|
Assets |
(Unaudited) |
|||||||
|
Current Assets |
||||||||
|
Cash and cash equivalents |
5,862,460 |
11,443,059 |
||||||
|
Restricted cash |
338,712 |
- |
||||||
|
Receivables, net |
331,179 |
47,639 |
||||||
|
Prepaid expenses |
1,431,012 |
946,299 |
||||||
|
Inventory |
36,365 |
- |
||||||
|
Notes receivable |
- |
485,000 |
||||||
|
Income tax receivable |
787,086 |
1,147,213 |
||||||
|
Total current assets |
8,786,814 |
14,069,210 |
||||||
|
Non-current assets |
||||||||
|
Property and equipment, net |
2,210,933 |
2,205,084 |
||||||
|
Long term investment |
- |
5,086,413 |
||||||
|
Deferred income tax assets |
578,919 |
411,934 |
||||||
|
Right-of-use assets |
1,308,503 |
976,404 |
||||||
|
Intangible assets |
2,226,609 |
398,794 |
||||||
|
Goodwill |
4,522,586 |
854,887 |
||||||
|
Total assets |
19,634,364 |
24,002,726 |
||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
|
Liabilities: |
||||||||
|
Current liabilities |
||||||||
|
Accounts payable and other liabilities |
2,108,462 |
2,120,660 |
||||||
|
Student deposits |
52,040 |
46,040 |
||||||
|
Due to related party |
140,000 |
140,000 |
||||||
|
Lease liabilities – current |
636,126 |
461,161 |
||||||
|
Deferred revenue |
1,459,886 |
3,286,350 |
||||||
|
Total current liabilities |
4,396,513 |
6,054,211 |
||||||
|
Non-current liabilities |
||||||||
|
Lease liabilities – non current |
760,799 |
561,897 |
||||||
|
Deferred income tax liabilities |
490,184 |
107,674 |
||||||
|
Total liabilities |
5,647,497 |
6,723,782 |
||||||
|
Commitments and contingencies |
||||||||
|
Shareholders' equity |
||||||||
|
Common shares, US$0.0015873 par value, 31,500,000 shares authorized, |
18,585 |
18,017 |
||||||
|
Additional paid-in capital |
17,220,527 |
17,526,546 |
||||||
|
Deficit |
(5,567,784) |
(2,416,788) |
||||||
|
Accumulated other comprehensive loss |
(33,093) |
(28,939) |
||||||
|
Total shareholders' equity |
11,638,235 |
15,098,836 |
||||||
|
Noncontrolling interests |
2,348,632 |
2,180,108 |
||||||
|
Total liabilities and shareholders' equity |
19,634,364 |
24,002,726 |
||||||
|
EPICQUEST EDUCATION GROUP INTERNATIONAL LTD |
||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
||||||||
|
FOR THE SIX MONTHS ENDED MARCH 31, 2023 AND 2022 |
||||||||
|
(US$, except share data and per share data, or otherwise noted) |
||||||||
|
For The |
For The |
|||||||
|
March 31, |
March 31, |
|||||||
|
US$ |
US$ |
|||||||
|
(Unaudited) |
(Unaudited) |
|||||||
|
Revenues |
3,420,669 |
4,055,213 |
||||||
|
Costs of services |
769,619 |
1,327,308 |
||||||
|
Gross profit |
2,651,050 |
2,727,905 |
||||||
|
Operating costs and expenses: |
||||||||
|
Selling expenses |
474,169 |
757,969 |
||||||
|
General and administrative |
5,367,085 |
5,299,119 |
||||||
|
Total operating costs and expenses |
5,841,254 |
6,057,088 |
||||||
|
Income from operations |
(3,190,204) |
(3,329,183) |
||||||
|
Other (income) expenses: |
||||||||
|
Other income |
(1,655) |
(797,411) |
||||||
|
Interest income |
(20,833) |
- |
||||||
|
Foreign exchange gain |
(5) |
(4,206) |
||||||
|
Total other (income) expenses |
(22,493) |
(801,617) |
||||||
|
Loss before provision for income taxes |
(3,167,711) |
(2,527,566) |
||||||
|
Current income tax expense |
8,553 |
- |
||||||
|
Deferred income tax expense (recovery) |
(172,975) |
13,741 |
||||||
|
Income taxes expense (recovery) |
(164,422) |
13,741 |
||||||
|
- |
- |
|||||||
|
Net loss |
(3,003,289) |
(2,541,307) |
||||||
|
Net loss attributable to noncontrolling interest |
(305,928) |
(57,782) |
||||||
|
Net loss attributable to common stockholders |
(2,697,361) |
(2,483,525) |
||||||
|
Foreign currency translation adjustment |
(4,154) |
(8,214) |
||||||
|
Total Comprehensive loss |
(3,007,443) |
(2,549,521) |
||||||
|
Basic & diluted net loss per share |
$ |
(0.24) |
$ |
(0.23) |
||||
|
Weighted average number of ordinary shares-basic and diluted |
11,469,800 |
10,835,956 |
||||||
|
EPICQUEST EDUCATION GROUP INTERNATIONAL LTD |
||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
FOR THE SIX MONTHS ENDED MARCH 31, 2023 AND 2022 |
||||||||
|
(US$, except share data and per share data, or otherwise noted) |
||||||||
|
For The |
For The |
|||||||
|
2023 |
2022 |
|||||||
|
US$ |
US$ |
|||||||
|
Cash Flows from Operating Activities: |
(Unaudited) |
(Unaudited) |
||||||
|
Net loss |
(3,003,289) |
(2,541,307) |
||||||
|
Adjustments for items not affecting cash: |
||||||||
|
Depreciation and amortization |
163,863 |
111,597 |
||||||
|
Stock-based compensation expenses |
900,877 |
2,629,603 |
||||||
|
Accretion of finance lease |
3,546 |
- |
||||||
|
Net (gain)/loss from disposal of fixed assets |
- |
(813,064) |
||||||
|
Deferred income tax expense |
(172,975) |
13,740 |
||||||
|
Changes in operating assets and liabilities |
||||||||
|
Accounts receivable |
235,640 |
150,110 |
||||||
|
Operating leases |
(51,592) |
11,070 |
||||||
|
Inventory |
(16,350) |
- |
||||||
|
Prepaid expenses |
(176,420) |
178,295 |
||||||
|
Accounts payable & accrued liabilities |
(225,407) |
(618,187) |
||||||
|
Deferred revenue |
(2,364,570) |
(2,267,475) |
||||||
|
Income tax receivable |
360,126 |
(9,768) |
||||||
|
Student deposits |
6,000 |
- |
||||||
|
Net cash used in operating activities |
(4,340,551) |
(3,155,386) |
||||||
|
Cash Flows from Investing Activities: |
||||||||
|
Purchase of property and equipment |
(7,641) |
(30,147) |
||||||
|
Notes receivable |
- |
180,000 |
||||||
|
Due from related party |
- |
(296,199 |
||||||
|
Net cash acquired from (used for) business acquisitions |
562,791 |
(1,954,145) |
||||||
|
Proceeds from sale of property and equipment |
- |
1,920,861 |
||||||
|
Net cash provided by (used in) investing activities |
555,330 |
(179,630) |
||||||
|
Cash Flows from Financing Activities: |
||||||||
|
Proceeds borrowed from related parties |
- |
(269,893) |
||||||
|
Repayment of lease liabilities |
(15,001) |
- |
||||||
|
Share buyback |
(1,250,007) |
- |
||||||
|
Acquisition of additional interest in subsidiary |
(187,505) |
- |
||||||
|
Net cash used in financing activities |
(1,452,513) |
(269,893) |
||||||
|
Effect of exchange rate change on cash |
(4,153) |
- |
||||||
|
Net decrease in cash, cash equivalents and restricted cash |
(5,241,887) |
(3,604,909) |
||||||
|
Cash, cash equivalents and restricted cash, beginning of period |
11,443,059 |
16,537,174 |
||||||
|
Cash, cash equivalents and restricted cash, end of period |
6,201,172 |
12,932,265 |
||||||
|
EPICQUEST EDUCATION GROUP INTERNATIONAL LTD |
|||||||||||||||||||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY |
|||||||||||||||||||||||||||||||||||||
|
SIX MONTHS ENDED MARCH 31, 2023 AND 2022 |
|||||||||||||||||||||||||||||||||||||
|
(US$, except share data and per share data, or otherwise noted) |
|||||||||||||||||||||||||||||||||||||
|
Common |
Common |
Additional |
Subscription |
Accumulated |
NCI |
Deficit |
Total |
||||||||||||||||||||||||||||||
|
Balance as of |
11,350,704 |
18,017 |
17,526,546 |
- |
(28,939) |
2,180,108 |
(2,416,788) |
17,278,944 |
|||||||||||||||||||||||||||||
|
Net loss |
- |
(305,928) |
(2,697,361) |
(3,003,289) |
|||||||||||||||||||||||||||||||||
|
Share buyback |
(201,614) |
(320) |
(1,249,687) |
- |
- |
- |
- |
(1,250,007) |
|||||||||||||||||||||||||||||
|
Share-based |
559,083 |
888 |
1,028,592 |
- |
- |
- |
- |
1,029,480 |
|||||||||||||||||||||||||||||
|
Stock option |
- |
- |
123,397 |
- |
- |
- |
- |
123,397 |
|||||||||||||||||||||||||||||
|
Acquisition of |
- |
- |
- |
- |
- |
453,635 |
(453,635) |
- |
|||||||||||||||||||||||||||||
|
Acquisition of |
- |
- |
(208,321) |
- |
- |
20,817 |
- |
(187,504) |
|||||||||||||||||||||||||||||
|
Translation |
- |
- |
- |
- |
(4,154) |
- |
- |
(4,154) |
|||||||||||||||||||||||||||||
|
Balance as of |
11,708,173 |
18,585 |
17,220,527 |
- |
(33,093) |
2,348,632 |
(5,567,784) |
13,986,867 |
|||||||||||||||||||||||||||||
|
Common |
Common |
Additional |
Subscription |
Accumulated |
NCI |
Retained |
Total |
||||||||||||||||||||||||||||||
|
Balance as of |
10,412,843 |
16,528 |
11,464,979 |
(200,000) |
- |
- |
3,654,441 |
14,935,948 |
|||||||||||||||||||||||||||||
|
Net loss |
- |
(57,782) |
(2,483,525) |
(2,541,307) |
|||||||||||||||||||||||||||||||||
|
Share issued for |
201,614 |
320 |
1,249,687 |
- |
- |
2,344,995 |
- |
3,595,002 |
|||||||||||||||||||||||||||||
|
Share-based |
430,856 |
684 |
2,628,919 |
- |
- |
- |
- |
2,629,603 |
|||||||||||||||||||||||||||||
|
Translation |
- |
- |
- |
- |
(8,214) |
- |
- |
(8,214) |
|||||||||||||||||||||||||||||
|
Balance as of |
11,045,313 |
17,532 |
15,343,585 |
(200,000) |
(8,214) |
2,287,213 |
1,170,916 |
18,611,032 |
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Source: EpicQuest Education Group International Limited
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- EpicQuest Education’s Davis College Signs MOUs with Two China-based Organizations