Visionary Education Technology Holdings Group Inc. Reports Fiscal Year 2022 Financial Results

MARKHAM, Canada, August 12, 2022 /PRNewswire/ — Visionary Education Technology Holdings Group Inc. (the “Company”) (Nasdaq: VEDU), a personal training supplier situated in Canada that gives high-quality training sources to college students across the globe, at present introduced its monetary outcomes for the fiscal 12 months ended March 31, 2022.

Fiscal Year 2022 Financial Highlights

• Revenues was $5.2 million in fiscal 12 months 2022, in comparison with $7.7 million in fiscal 12 months 2021.
• Gross revenue margin was 49.8% in fiscal 12 months 2022, in comparison with 55.2% in fiscal 12 months 2021.
• Income from operations was $1.0 million in fiscal 12 months 2022, in comparison with $3.7 million in fiscal 12 months 2021.
• Net loss was $56,474 in fiscal 12 months 2022, in comparison with web revenue of $2,913,646 in fiscal 12 months 2021.

Mr. David Xu, Chief Executive Officer and Chief Operating Officer of the Company, commented, “In fiscal 12 months 2022, we have now invested and consolidated our training sources and constructed a strong basis for our future improvement. On May 17, 2022, we accomplished our preliminary public providing, which was an essential milestone within the historical past of the Company. Becoming a publicly traded firm gives us with extra alternatives to proceed growing our training sources. We plan to spend money on extra worthwhile and better progress enterprise areas equivalent to highschool training for worldwide college students, built-in platform of know-how and training, on-line standardized synthetic intelligence pushed central platforms and offline customized training providers that are anticipated to drive exponential tuition income progress within the close to future. In addition, we intend to shut the acquisition of the properties at 95-105 Moatfield Drive, Toronto this month. This training facility is anticipated to generate about $10 million annual hire income. Looking ahead, we’ll proceed to supply high-quality training to college students, execute our strategic initiatives and broaden our market share. We consider our natural progress and strategic improvement will place us properly for the long run and we’re assured in creating long-term values and returns for our shareholders.”

The Company bought 8 a lot of vacant land in fiscal 12 months 2022 and generated income of roughly $2.3 million. The Company bought 19 a lot of vacant land in fiscal 12 months 2021 and generated income of roughly $6.6 million. As of March 31, 2022, the Company had no vacant land for future gross sales.

Gross Profit and Gross Margin

Total value of income decreased by $0.8 million to $2.6 million in fiscal 12 months 2022, from $3.4 million in fiscal 12 months 2021.

Gross revenue decreased by $1.7 million, or 5.5%, to $2.6 million in fiscal 12 months 2022, from $4.3 million in fiscal 12 months 2021. Overall gross margin was 49.8% in fiscal 12 months 2022, in comparison with  55.2% in fiscal 12 months 2021.

Gross margins for hire enterprise, training enterprise, building enterprise and gross sales of vacant land have been 42.5%, 52.2%, 42.6% and 56.4%, respectively, for fiscal 12 months 2022, in comparison with 61.9%, 65.2%, 75.0% and 53.8%, respectively, for fiscal 12 months 2021.

General and Administrative Expenses

General and administrative bills elevated by $305,054, or 230.7%, to $437,278 in fiscal 12 months 2022 from $132,224 in fiscal 12 months 2021. The improve was primarily  as a result of the Company recorded arrear curiosity of $172,993 in fiscal 12 months 2022 because of the late submitting of tax returns. In addition, there was elevated amortization and utility bills from the Company’s newly bought two workplace buildings in downtown Markham.

Professional Fees

Professional charges elevated by $139,119, or 65.8%, to $350,636 in fiscal 12 months 2022 from $211,517 in fiscal 12 months 2021. The improve was primarily because of the elevated authorized charges and accounting charges associated to the Company’s public providing course of.

Salaries and Compensations

Salaries and compensations elevated by $599,299, or 310.1%, to $792,546 in fiscal 12 months 2022 from $193,247 in fiscal 12 months 2021. The vital improve was primarily because of the enlargement of the Company’s academic enterprise and the elevated compensation that the Company paid throughout fiscal 12 months 2022 to draw and retain skilled senior administration {and professional} staff.

Interest Expense, Net

Interest expense elevated by $0.8 million, to $0.9 million in fiscal 12 months 2022 from $0.1 million in fiscal 12 months 2021. The vital improve was primarily on account of the next financial institution mortgage steadiness in reference to the acquisition of two workplace buildings situated in Downtown Markham, Ontario, Canada. The Company’s excellent financial institution mortgage steadiness was roughly $18.8 million and $6.4 million as of March 31, 2022 and 2021, respectively.

Government Subsidies

In fiscal 12 months 2022, the Company acquired $490,171 from the Canada Emergency Wage Subsidy program and Canada Emergency Rent Subsidy program. In fiscal 12 months 2021, the Company utilized for complete loans of $143,136 below the Canada Emergency Business Account (CEBA) program, of which $45,450 is anticipated to be forgiven. In addition, the Company acquired $39,207 from the Canada Emergency Wage Subsidy program in fiscal 12 months 2021. The improve of wage subsidy was per the rise of the Company’s wage and compensation bills.

Impairment Expenses

In fiscal 12 months 2022, the Company recorded impairment lack of $379,165 for the intangible property and goodwill in reference to the non-public excessive colleges and Conbridge College, a personal faculty as a result of the Company is within the strategy of enhancing the effectivity of the operations, streamlining the enterprise traces to concentrate on its core training sector, and optimizing the construction of the vocational academic enterprise.

Other revenue

The Company had different revenue of $20,709 in fiscal 12 months 2022. In fiscal 12 months 2021, the Company had different revenue of $245,109, primarily from the one-time gross sales of non-public protecting gear to 1 Canadian monetary establishment throughout the pandemic.

Provision for Income Taxes

Provision for revenue taxes decreased by $0.7 million, to $0.3 million for fiscal 12 months 2022 from $1.0 million for fiscal 12 months 2021. The lower was primarily because of the decreased revenue earlier than revenue taxes.

Net Income (Loss)

Net loss was $56,474 for fiscal 12 months 2022, as in comparison with web revenue of roughly $2.9 million for fiscal 12 months 2021.

Balance Sheet

As of March 31, 2022, the Company had money of $0.7 million, as in comparison with $1.2 million as of March 31, 2021.

Cash Flow

Net money offered by working money stream was $6.4 million in fiscal 12 months 2022, in comparison with $4.4 million for fiscal 12 months 2021.

Net money utilized in investing actions was $24.3 million in fiscal 12 months 2022, in comparison with $3.1 million in fiscal 12 months 2021. The improve in web money utilized in investing actions was primarily attributable to the acquisition of two workplace buildings for roughly $16.9 million in downtown Markham, the deposits of roughly $7.2 million paid to amass the properties situated on 95-105 Moatfield Drive, Toronto, in addition to the funds made to amass varied non-public faculty licenses and Max the Mutt College of Animation.

Net money offered by financing actions was $17.5 million in fiscal 12 months 2022, in comparison with web money utilized in financing actions of $0.4 million in fiscal 12 months 2021. The improve in web money offered by financing actions in fiscal 12 months 2022 was primarily attributable to the mortgages the Company obtained from HSBC Bank. In reference to the acquisition of the 2 workplace buildings, on April 15, 2021, the Company obtained financial institution loans of $7.2 million (C$9.0 million) and $5.6 million (C$7.0 million) respectively from HSBC Bank.

Recent Development

Initial Public Offering

On May 19, 2022, the Company closed its IPO of 4,250,000 Common Shares at a public providing worth of $4.00 per share for gross proceeds of $17.0 million. The complete web proceeds to the Company from the IPO, after deducting reductions, expense allowance, and bills, have been roughly $14.3 million. Following the closing of the Offering, the Company has a complete of 39,250,000 Common Shares issued and excellent. In reference to the providing, the Company’s widespread shares started buying and selling on the NASDAQ below the image “VEDU.”

Acquisition of Griggs International Academy China Co. Ltd.

On July 14, 2022, the Company entered right into a Capital Increase and Share Expansion Agreement (the “Contribution Agreement”) with Griggs International Academy China Co. Ltd. (“Griggs China“), a Hong Kong non-public consulting and funding holding firm providing United States Ok-12 diploma packages and providers of Griggs International Academy USA at 4 areas in China.. Pursuant to the Contribution Agreement, the Company has agreed to take a position $900,000 in Griggs China in trade for 9,000 newly issued shares of Griggs China, which can equal 90% of issued and excellent shares of Griggs China. This transaction closed on July 29, 2022.

On July 19, 2022, the Company signed a purchase order settlement with the 2 principal shareholders of Griggs China  to buy their 1,000 shares for a complete consideration of $50,000. The two shareholders will retain 10% of the dividend rights of the Company’s Griggs Program in trade for the sale of their unusual shares, and the Company assured to pay an annual minimal of $20,000 and $10,000, respectively, to the 2 shareholders as a retainer if no dividend is to be declared. The fee of the retainer commences September 1, 2022 and stays in impact till August 31, 2032. After finishing this transaction, the Company will personal 100% of Griggs China.

About Visionary Education Technology Holdings Group Inc.

Visionary Education Technology Holdings Group Inc., headquartered in Markham, Canada, is a personal training supplier situated in Canada that gives high-quality training sources to college students across the globe. The Company goals to supply entry to secondary, faculty, undergraduate and graduate and vocational training to college students in Canada by means of technological innovation in order that extra folks can be taught, develop and succeed to their full potential. As a totally built-in supplier of academic packages and providers in Canada, the Company has been serving and can proceed to serve each Canadian and worldwide college students. For extra info, go to the Company’s web site at https://ir.visiongroupca.com.   

Forward-Looking Statements

All statements apart from statements of historic truth on this announcement are forward-looking statements. These forward-looking statements contain identified and unknown dangers and uncertainties and are based mostly on the Company’s present expectations and projections about future occasions that the Company believes might have an effect on its monetary situation, outcomes of operations, enterprise technique and monetary wants. Investors can establish these forward-looking statements by phrases or phrases equivalent to “believes,” “expects,” “anticipates,” “estimates,” “intends,” “would,” “proceed,” “ought to,” “might,” or comparable expressions. The Company undertakes no obligation to replace or revise publicly any forward-looking statements to mirror subsequent occurring occasions or circumstances, or modifications in its expectations, besides as could also be required by regulation. Although the Company believes that the expectations expressed in these forward-looking statements are cheap, it can not guarantee you that such expectations will become appropriate, and the Company cautions traders that precise outcomes might differ materially from the anticipated outcomes and encourages traders to evaluation different elements that will have an effect on its future leads to the Company’s registration assertion and in its different filings with the SEC.

For extra info, please contact:

Visionary Education Technology Holdings Group Inc.
Investor Relations Department
Email: [email protected]    

Ascent Investors Relations LLC
Tina Xiao
President
Phone: +1 917-609-0333
Email: [email protected] 

  * Retroactively restated for impact of recapitalization

SOURCE Visionary Education Technology Holdings Group Inc.