EDC(US:EDUC)2024-07-11 20:00Financial Performance - Net revenues for the first quarter were $9.99 million, a decrease of 31.5% compared to $14.52 million in the prior year[3] - Net loss for the quarter was $(1.28) million, compared to $(0.87) million in the same quarter last year, representing a 46.6% increase in loss[3] - Loss per share was $(0.15), compared to $(0.11) in the prior year, indicating a 36.4% increase in loss per share[3] Operational Changes - Average active PaperPie Brand Partners decreased to 13,400 from 23,200 year-over-year, but increased to 15,015 as of February 29, 2024[1] - The company added over 3,700 new Brand Partners in June, increasing total active Brand Partners to 14,700[9] Cash Flow and Financing - The company generated $2.9 million in positive cash flows from inventory reductions, covering historically negative cash outflows[15] - A lease agreement for approximately half of the Hilti Complex is expected to generate $1.0 million in new cash flow annually, aiding in the return to profitability[2] - A sale/leaseback agreement for the Hilti Complex totaling $35.5 million is expected to fully pay back bank borrowings and minimize future borrowing needs[16] - The company maintains a $4.5 million line of credit post-building sale to ensure adequate financing for future operations[16] Strategic Focus - The company is focused on improving children's literacy and plans to share profitability with shareholders through dividends in the future[10]