Less cash used in investing activities year-to-date

Durrant Pate/Contributor

One on One Educational Services has seen its cash flow negatively impacted over the half year period, ended February 28, 2023

This resulted in its net cash used in operating activities being greater than cash provided from operating activities. During the period under review, the online educational institution saw its net cash used in operating activities totalling J$38.1 million compared to cash provided from operating activities in the prior comparable period of 2021 amounting to J$29.3 million.

This caused an increase in receivables, One on One Educational Services collections took longer to come in as the balances were mainly due to government contracts along with expenditure to increase inventory. For the half-year in review, cash used in investing activities was J$25.0 million compared to J$34.3 million in 2022.

Beefing up intellectual property

This use of cash was primarily for addition to the company’s intellectual property, which is a key component of its revenue generating activities. Net cash used in financing activities for the quarter was $5.0 million compared to $7.4 million provided by financing activities in the comparable period of 2022. 

The cash used in financing activities was used to service existing loan obligations of the company. One on One Educational Services had an overall decrease in its cash and bank balances for the half year period by J$68.0 million, resulting mainly from the delay in our receivables collection, inventory sale and investment in our intellectual property.

The total asset of the company jumped to J$634.9 million, representing a 9.3% increase from J$580.7 million for 2022-year end, due mainly to the increase in its intangible assets, as it continues to develop its intellectual property for revenue generation.

Studio developed for income activities

As part of the drive for revenue generation, the company sought to employ greater use of  assets such as real estate, as its building was rented to develop studios for recording, receivables due primarily to government contracts and a special arrangement with a client for payment and inventory, as new perpetual licenses were acquired to be used on the classroom in a box device and off the shelf licenses for content material.