KNeoMedia Limited (ASX: KNM) Provides Quarterly Update
Corporate Update
KNeoMedia Limited (ASX: KNM) has made significant strides since its shares were suspended from trading on 7 March 2024. The company focused on securing necessary funding and fulfilling listing requirements. A $1.25 million capital raising placement completed in September 2024 and a fully underwritten entitlement offer raised approximately $1.657 million on 6 December 2024. This financial backing, alongside ongoing sales revenue growth, gives the company confidence in meeting its business objectives for the next 12 months.
Financial and Operational Review
In the quarter ending 31 December 2024, KNeoMedia achieved a license renewal under the ‘Connect All Kids’ Initiative for its KneoWorld Platform, generating approximately AUD 726,000. Positive cash flow during this period has been bolstered by the successful implementation of KneoScience services, which saw further deployments in New York City public schools. The ongoing engagement of the New York City Department of Education (NYC DOE) highlights the appeal and marketability of KneoMedia’s EdTech solutions.
The company invested $186,000 in intellectual property development, focusing on the KneoScience Content Services Platform (CSP). Deployments have reached 100,000 students in New York City, with an anticipated agreement pending confirmation for an additional 120,000 students during the 2024-2025 school year. This could potentially translate to recurring revenue of USD 3.6 million.
Future Outlook
Anticipated expansions into high schools with biology investigations may increase deployment by another 300,000 students, further boosting revenue prospects.The company remains committed to providing world-class educational solutions, reflecting its strong focus on growth and development in the EdTech space.
KneoMedia has ensured compliance with the Listing Rules, demonstrating an ongoing commitment to transparency and accountability.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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