Durrant Pate/Contributor

Digital learning provider One-on-One Educational Services is facing challenges with implementing its J$250-million Teacher Availability Solution (TAS), which is being rolled out in 100 schools for the current school year.

The software system is a leading-edge digital solution, which leverages technology, expert teachers, and facilitators to deliver highly engaging and quality lessons to classrooms across Jamaica. The company plans to expand this system into other countries within the Caribbean in the near future.

TAS is an integral part of One-on-One’s One Academy ecosystem, which has been meticulously developed over the last two years and a half years in collaboration and consultations with various principals, teachers, and other education stakeholders and agencies islandwide.

The digital learning institution has admitted to the challenges faced with implementing the new software during the November 2023 first quarter.

No revenue earned yet from the software

In addition, no revenue was earned from TAS during the quarter, which witnessed a marked decline in revenues. The company is reporting revenues of J$54.6 million for the first quarter, down 32.6 per cent or a decline of J$26.4 million compared to the same quarter in 2022.

“This decline is primarily attributed to a strategic shift towards building recurring revenue through the OneAcademy revenue lines for the Teacher Availability Solution…However, the company maintained its annual recurring business based on existing contracts, excluding short-term contracts that did not recur in the quarter.”

With direct costs totalling J$13.8 million, representing a J$1.1 million reduction from the previous year’s comparative quarter, One-on-One ended the quarter with a gross profit of J$40.6 million, reflecting a 38.4 per cent reduction compared to the same quarter in 2022. Operating expenses for the review period jumped by J$4.0 million, or 7.3 per cent compared to the 2022 comparative quarter.

The rise in expenses is mainly attributed to increased staff costs, driven by the need to support its existing product development, amortisation costs related to right-of-use assets for leased building space, and depreciation charges due to additions to property, plant, and equipment to support the companies recurring revenue business line under development.

At the end of the first, the company incurred a net loss of J$21.5 million, representing a significant decline from the net profit of J$11.2 million in the comparable period of 2022.

Decline in cash balances

Overall, One-on-One saw a decline in its cash and bank balances for the quarter, resulting mainly from the delay in receivables collection. The cash used in investment activities was J$13.5 million, compared to J$18.7 million in 2021, in addition to its intellectual property that is used to generate revenues.

The net cash used in financing activities for the quarter was J$13.9 million, compared to J$13.8 million in the comparable quarter of 2021. The cash used in financing activities was used to service existing loan obligations of the company.