Core Viewpoint - China Liberal Education Holdings Limited reported a decline in revenue for the first half of fiscal year 2024, primarily due to the completion of two technological consulting projects for smart campus solutions. However, the company maintained a strong gross margin and improved cash position, indicating resilience in its business model [2][3]. Financial Performance - Revenue decreased by $0.5 million, or 34.8%, to $0.89 million for the six months ended June 30, 2024, compared to $1.36 million for the same period last year [3][5]. - Gross profit was $0.75 million, down 12.6% from $0.86 million in the same period last year, while gross margin increased to 84.8%, up 21.5 percentage points from 63.2% [3][10]. - Loss from operations was $4.56 million, a significant increase of 515.7% compared to a profit of $0.74 million in the same period last year [3][4]. - Net loss was $4.72 million, compared to a net income of $0.38 million for the same period last year, resulting in a basic and diluted loss per share of $2.04 [3][17]. Revenue Breakdown - Revenue from technological consulting services for smart campus solutions decreased by $0.4 million, or 97.4%, to $0.01 million due to the completion of two projects compared to six in the previous year [6][7]. - Revenue from tailored job readiness training services decreased by $83,297, or 8.8%, to $0.86 million, attributed to the loss of certain customers [5]. - Revenue from textbook and course material sales increased by $13,476, or 100%, to $13,476, driven by increased demand [8]. Cost and Expenses - Cost of revenue decreased by $0.36 million, or 73%, to $0.14 million, primarily due to reduced project sizes in technology consulting [9]. - Selling expenses decreased by $0.07 million, or 59.8%, to $0.04 million, while general and administrative expenses increased by $1.2 million, or 84.5%, to $2.7 million, mainly due to share-based compensation [12]. Cash Position - As of June 30, 2024, the company had cash of $84.15 million, a significant increase from $20.34 million as of December 31, 2023 [18]. - Net cash used in operating activities was $1.28 million, compared to $1.72 million for the same period last year [18]. Allowance for Doubtful Accounts - The allowance for doubtful accounts increased to $2.56 million from $24,554, primarily related to expected collectability issues with two colleges [11].
China Liberal Education Holdings Limited Reports Financial Results for the First Six Months of Fiscal Year 2024