# EDGAR Filing Document

**Accession Number:** 0001781397
**File Stem:** 0001213900-25-079418
**Filing Date:** 2025-8
**Character Count:** 94914
**Document Hash:** f2ff79e5eed39d35dbdc00915e54de74
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-25-079418.hdr.sgml**: 20250821

**ACCESSION NUMBER**: 0001213900-25-079418

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 85

**CONFORMED PERIOD OF REPORT**: 20250331

**FILED AS OF DATE**: 20250821

**DATE AS OF CHANGE**: 20250821

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** EpicQuest Education Group International Ltd
- **CENTRAL INDEX KEY:** 0001781397
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-EDUCATIONAL SERVICES [8200]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 461605475
- **STATE OF INCORPORATION:** D8
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40280
- **FILM NUMBER:** 251241502

**BUSINESS ADDRESS:**
- **STREET 1:** 1209 N. UNIVERSITY BLVD.
- **CITY:** MIDDLETOWN
- **STATE:** OH
- **ZIP:** 45042
- **BUSINESS PHONE:** (513)835-5394

**MAIL ADDRESS:**
- **STREET 1:** 1209 N. UNIVERSITY BLVD.
- **CITY:** MIDDLETOWN
- **STATE:** OH
- **ZIP:** 45042

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Elite Education Group International Ltd
- **DATE OF NAME CHANGE:** 20190702

?xml version='1.0' encoding='ASCII'?

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER**

**PURSUANT TO RULE 13a-16 OR 15d-16 UNDER**

**THE SECURITIES EXCHANGE ACT OF 1934**

For the month of August 2025

Commission File Number: 001-40280

**EpicQuest Education Group International Limited** 

**(Translation of registrant's name into English)** 

**200 N. St. Clair Street, Suite 100, Toledo, OH 43604**

**(Address of Principal Executive Office)**

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Form 40-F ☐

**EXPLANATORY NOTE**

EpicQuest Education Group International Limited (the "Company") hereby furnishes under this Report of Foreign Private Issuer on Form 6-K (the "Form 6-K") the following: (i) unaudited condensed consolidated financial statements of the Company as of and for the six-months ended March 31, 2025, as Exhibit 99.1 to this Form 6-K; and (ii) Operating and Financial Review and Prospects, which discusses and analyzes the Company's operational and financial condition and results of operations as of and for the six-month period ended March 31, 2025, as Exhibit 99.2 to this Form 6-K.

Exhibits 99.1 and 99.2 this Report on Form 6-K shall be deemed to be incorporated by reference into the registration statements of the Company on Forms S-8 (Registration Numbers [333-258658](http://www.sec.gov/Archives/edgar/data/1781397/000121390021041139/ea145338-s8_eliteeducation.htm) and [333-273948](http://www.sec.gov/Archives/edgar/data/1781397/000121390023066310/ea183074-s8_epicquest.htm)) and Forms F-3 (Registration Numbers [333-264807](http://www.sec.gov/Archives/edgar/data/1781397/000121390022024947/ea159572-f3_eliteeducation.htm); [333-277859](http://www.sec.gov/Archives/edgar/data/1781397/000121390024021863/ea0201353-f3_epicquest.htm); and [333-288399](http://www.sec.gov/Archives/edgar/data/1781397/000121390025059085/ea0246795-f3_epicquest.htm)), to the extent not superseded by documents or reports subsequently filed or furnished by the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit** | **Description** |
| 99.1 | [Unaudited Condensed Consolidated Financial Statements for the six months ended March 31, 2025.](ea025325401ex99-1_epicquest.htm) |
| 99.2 | [Operating and Financial Review and Prospects](ea025325401ex99-2_epicquest.htm) |
| 101 | Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Unaudited Interim Consolidated Balance Sheets, (ii) Unaudited Interim Consolidated Statements of Operations and Comprehensive Loss, (iii) Unaudited Consolidated Statements of Changes in Shareholders' Equity, (iv) Unaudited Consolidated Statements of Cash Flows, and (v) related notes to these consolidated financial statements. |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

---

| | |
|:---|:---|
| **EpicQuest Education Group International Limited** | **EpicQuest Education Group International Limited** |
| By: | /s/ *Zhenyu Wu* |
|  | Zhenyu Wu<br> Chief Financial Officer |
|  | Zhenyu Wu<br> Chief Financial Officer |

---

Date: August 21, 2025

## Exhibit 99.1

?xml version='1.0' encoding='ASCII'?

**Exhibit 99.1**

**ePICQUEST EDUCATION GROUP international LIMITED**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**AS OF MARCH 31, 2025 AND SEPTEMBER 30, 2024**

**(US$, except share data and per share data, or otherwise noted)**

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **September 30,<br> 2024** |
|  | **US$** | **US$** |
|  | (Unaudited) | |
| **Assets** |  |  |
| Current Assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 334341 | 1150042 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 338712 | 338712 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 101396 | 85279 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivable | 542554 | 473271 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 554428 | 1305935 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | 44731 | 48470 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax receivable | 540165 | 889766 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | 2456327 | 4291475 |
| Non-current assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 673701 | 1597823 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term prepaids | 7500023 | 7500023 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets | 4354102 | 4464226 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets | 2401149 | 2785008 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 2652772 | 2652772 |
| **Total assets** | 20038074 | 23291327 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| **Liabilities:** |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | 3271837 | 3233471 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan payable | 409956 | 409956 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax payable | 11555 | 4294 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to related party | 140000 | 140000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities – current | 593150 | 641254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 1993629 | 5332194 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | 6420127 | 9761169 |
| Non-current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities – non current | 1936204 | 2181769 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax liabilities | 548469 | 470468 |
| **Total liabilities** | 8904800 | 12413406 |
| **Shareholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common shares, US$0.0015873 par value, 31,500,000 shares authorized, 13,608,173 and 13,113,173 shares issued and outstanding as of March 31, 2025 and September 30, 2024, respectively | 21600 | 20814 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 20571641 | 20142071 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated Deficit | (15190620) | (14958678) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (54647) | (35803) |
| **Total shareholders' equity** | 5347974 | 5168404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interests | 5785300 | 5709517 |
| **Total equity** | 11133274 | 10877921 |
| **Total liabilities and equity** | 20038074 | 23291327 |

---

See accompanying notes to condensed consolidated financial statements.

**ePICQUEST EDUCATION GROUP international LIMITED**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

**FOR THE SIX MONTHS ENDED MARCH 31, 2025 AND 2024**

**(US$, except share data and per share data, or otherwise noted)**

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **March 31,<br> 2024** |
|  | **US$** | **US$** |
|  | (Unaudited) | (Unaudited) |
| &nbsp;&nbsp;&nbsp;Revenues | 5367405 | 4162650 |
| &nbsp;&nbsp;&nbsp;Costs of services | 1951235 | 1759229 |
| **Gross profit** | 3416170 | 2403421 |
| **Operating costs and expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;Selling expenses | 869378 | 696052 |
| &nbsp;&nbsp;&nbsp;General and administrative | 4509893 | 5850927 |
| **Total operating costs and expenses** | 5379271 | 6546979 |
| **Loss from operations** | (1963101) | (4143558) |
| **Other (income) expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;Other income | (1890840) | (493554) |
| &nbsp;&nbsp;&nbsp;Interest income | (2673) | (19948) |
| **Total other (income) expenses** | (1893513) | (513502) |
| **Loss before provision for income taxes** | (69588) | (3630056) |
| &nbsp;&nbsp;&nbsp;Current income tax expense | 8570 | 5124 |
| &nbsp;&nbsp;&nbsp;Deferred income tax expense (benefit) | 78001 | (118266) |
| **Income taxes expense (recovery)** | 86571 | (113142) |
| **Net loss** | (156159) | (3516914) |
| &nbsp;&nbsp;&nbsp;Net income (loss) attributable to non-controlling interest | 75783 | (309542) |
| **Net loss attributable to common stockholders** | (231942) | (3207372) |
| &nbsp;&nbsp;&nbsp;Unrealized foreign currency translation adjustment | (18844) | (7686) |
| **Comprehensive loss** | (175003) | (3524600) |
| **Basic & diluted net loss per share** | (0.02) | (0.26) |
| **Weighted average number of ordinary shares-basic and diluted** | 13232953 | 12370905 |

---

See accompanying notes to condensed consolidated financial statements.

**ePICQUEST EDUCATION GROUP international LIMITED**

**CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY**

**FOR THE SIX MONTHS ENDED MARCH 31, 2025 AND 2024**

**(US$, except share data and per share data, or otherwise noted)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common<br> shares** | **Common<br> shares<br> amount** | **Additional<br> paid-in<br> capital** | **Retained<br> earnings<br> (deficit)** | **Accumulated<br> other<br> comprehensive<br> loss** | **Non-controlling<br> interests** | **Total<br> equity** |
| **Balance as of September 30, 2023** | **11998173** | **19045** | **18232263** | **(9071818)** | **(36284)** | **1790504** | **10933710** |
| Net loss |  | - | - | (3207372) | - | (309542) | (3516914) |
| Issuance of common stock for cash | 400000 | 635 | 799365 | - | - | - | 800000 |
| Share-based compensation – common shares | 420000 | 667 | 524533 | - | - | - | 525200 |
| Share-based compensation – stock options |  | - | 595099 | - | - | - | 595099 |
| Investment in SouthGilmore |  | - | (762346) | - | - | 4500074 | 3737728 |
| Currency translation adjustment |  | - | - | - | (7686) | - | (7686) |
| **Balance as of March 31, 2024 (Unaudited)** | **12818173** | **20347** | **19388914** | **(12279190)** | **(43970)** | **5981036** | **13067137** |
| **Balance as of September 30, 2024** | **13113173** | **20814** | **20142071** | **(14958678)** | **(35803)** | **5709517** | **10877921** |
| Net loss |  |  | - | (231942) | - | 75783 | (156159) |
| Share-based compensation – common shares | 495000 | 786 | 421354 | - | - | - | 422140 |
| Share-based compensation – stock options |  | - | 8216 | - | - | - | 8216 |
| Currency translation adjustment |  | - | - | - | (18844) | - | (18844) |
| **Balance as of March 31, 2025 (Unaudited)** | **13608173** | **21600** | **20571641** | **(15190620)** | **(54647)** | **5785300** | **11133274** |

---

 

*The accompanying notes form an integral part of these condensed consolidated financial statements.*

 

 

**ePICQUEST EDUCATION GROUP international LIMITED**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**FOR THE SIX MONTHS ENDED MARCH 31, 2025 AND 2024**

**(US$, except share data and per share data, or otherwise noted)**

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2025** | **March 31,**<br>**2024** |
|  | **US$** | **US$** |
|  | (Unaudited) | (Unaudited) |
| Cash Flows from Operating Activities: |  |  |
| Net loss | (156159) | (3516914) |
| &nbsp;&nbsp;&nbsp;Adjustments for items not affecting cash: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 201635 | 227319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 430356 | 1120299 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain from disposal of fixed assets | (665389) | (477115) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain from settlement of student-deposit refunds with Renda | (1200000) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax expense | 78001 | (118266) |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable and other receivable | (85400) | (139617) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 751507 | (6300508) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease – lease liabilities and right of use assets | 90190 | (14734) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | 3739 | (3845) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable & accrued liabilities | 1238366 | 589942 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (3338565) | (1430090) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax receivable | 356862 | (4990) |
| Net cash used in operating activities | (2294857) | (10068519) |
| Cash Flows from Investing Activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment | - | (8398) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of fixed assets | 1498000 | 757115 |
| Net cash provided from investing activities | 1498000 | 748717 |
| Cash Flows from Financing Activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long term investment received for Gilmore | - | 3737728 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share issuances, net of issuance costs | - | 800000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds borrowed from third party | - | 409956 |
| Net cash provided from financing activities | - | 4947684 |
| Effect of exchange rate changes on cash and cash equivalents | (18844) | (7690) |
| Net decrease in cash, cash equivalents | (815701) | (4379808) |
| Cash and cash equivalents and restricted cash, beginning of year | 1488754 | 5305551 |
| Cash and cash equivalents and restricted cash, end of period | 673053 | 925743 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid | - | 40230 |

---

See accompanying notes to condensed consolidated financial statements.

**ePICQUEST EDUCATION GROUP international LIMITED**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**1. Organization and principal activities and going concern**

The Company was incorporated in the British Virgin Island ("BVI") on December 13, 2017. The Company principally engages in the business of foreign language education and university education. The Company's revenue is primarily derived from foreign education programs, university education programs and student accommodation services.

***Liquidity and Capital Resources***

The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. However, as of March 31, 2025, the Company has incurred recurring net losses and negative cash flows from operations, which raise substantial doubt about its ability to continue as a going concern within one year after the date that the condensed consolidated financial statements are issued. As of March 31, 2025, the Company had an accumulated deficit of $15,190,620 and a working capital deficit of $3,963,800.

Management has developed a plan to address these concerns, which includes the following actions:

● Cost reduction initiatives: The Company plans to implement some cost-cutting measures, including reductions in discretionary spending.

● Equity financing: The Company is actively seeking additional equity financing to fund operations and meet its obligations.

● Asset sales: The Company is exploring the sale of non-core assets to generate additional liquidity.

● New university programs: The Company is exploring strategic partnerships with more universities to introduce more educational programs and increase sources of revenues.

While management believes that these plans are feasible, there is no assurance that these actions will be successful in mitigating the substantial doubt about the Company's ability to continue as a going concern. If the Company is unable to obtain sufficient financing or generate adequate cash flows from operations, it may be required to curtail or cease operations, seek protection under applicable bankruptcy laws, or pursue other strategic alternatives.

The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**2. Summary of significant accounting policies**

***Basis of presentation***

The condensed consolidated financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

***Principal of consolidation***

The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries as of March 31, 2025. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br> activities** | **Percentage of<br> ownership** | **Date of<br> incorporation** | **Place of<br> incorporation** |
| EpicQuest Education Group International Limited **(the "Company" or "EpicQuest")** (formerly Elite Education International Co. Ltd.) | Investment holding |  | December 13, 2017 | BVI |
| Quest Holdings International LLC **("QHI")** | Foreign education programs and student dormitory services | 100% | December 19, 2012 | Ohio, US |
| Quest International Education Center LLC **("QIE")** (formerly Miami International Education Center LLC) | Collection of tuition payments from oversea students | 100% | January 23, 2017 | Ohio, US |
| Highrim Holding International Limited ("**HHI**") | Investing holding | 100% | July 9, 2021 | BC, Canada |
| Richmond Institute of Language Inc. ("**RIL**" or "EduGlobal College") | Academic services for college and university applications | 100% | April 18, 2008 | BC, Canada |
| Ameri-Can Education Group Corp. ("**Ameri-Can**") | Education services | 70% | November 17, 2019 | Ohio, US |
| Study Up Center, LLC ("**SUPC**") | Student education assistance | 100% | April 27, 2022 | Ohio, US |
| Davis University ("**DU**") | Education services | 70% | 1858 | Ohio, US |
| Skyward Holding International Limited ("**Skyward**") | Investment holding | 100% | June 13, 2023 | MB, Canada |
| Gilmore INV LLC ("**Gilmore**") | Investment holding | 100% | November 17, 2023 | Ohio, US |
| SouthGilmore LLC ("**SouthGilmor**e") | Sporting | 40% | November 20, 2023 | Ohio, US |

---

 ****

On November 17, 2023, the Company incorporated a wholly owned subsidiary, which is Gilmore INV LLC ("Gilmore") in Ohio. Gilmore owns 40% of SouthGilmore LLC ("SouthGilmore"), which was incorporated on November 20, 2023 in Ohio.

***Use of estimates***

The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. Actual amounts could differ from those estimates and differences could be material. Changes in estimates are recorded in the period they are identified.

Significant items subject to estimates include the recoverable amounts of goodwill and indefinite-lived intangible assets, the useful lives of long-lived assets, finite-lived intangible assets and long – term prepaids.

 ****

***Foreign currency and foreign currency translation***

The Company's reporting currency is the United States dollar ("US$" or "$"). The US$ is the functional currency of the Company and its subsidiaries of QHI, QIE, HHI, Ameri-Can, SUPC, DU, Skyward, Gilmore and SouthGilmore. The Canadian dollar ("C$") is the functional currency of the Company's subsidiary of RIL.

Transactions denominated in other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currency at the prevailing rates of exchange at the balance date. The resulting exchange differences are reported in the condensed consolidated statements of operations and comprehensive loss.

The assets and liabilities of the Company's subsidiary in the C$, which is RIL, are translated at the exchange spot rate at the balance sheet date, stockholders' equity is translated at the historical rates and the revenues and expenses are translated at the average exchange rates for the periods. The resulting translation adjustments are reported under other comprehensive income in the condensed consolidated statements of operations and comprehensive loss in accordance with ASC 220. The following are the exchange rates that were used in translating RIL's financial statements into the condensed consolidated financial statements:

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **March 31,<br> 2024** |
| Period-end spot rate | US$1=C$1.4379 | US$1=C$1.3540 |
| Average rate for six months period | US$1=C$1.4168 | US$1=C$1.3549 |

---

***Certain risks and concentration***

The Company's financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable and other receivable. As of March 31, 2025 and September 30, 2024, substantially all of the Company's cash and cash equivalents were held in major financial institutions located in the US and Canada.

The Company does not have significant trades receivable related to students as they are required to prepay service fees.

Therefore, there was no significant concentration risk for the Company as at March 31, 2025 and September 30, 2024.

***Cash and cash equivalents***

Cash and cash equivalents consist of petty cash on hand and cash held in banks, which are highly liquid and have original maturities of three months or less and are unrestricted as to withdrawal or use.

***Restricted cash***

Restricted cash represents the cash that is held by the Department of Education on behalf of DU in order to meet the financial protection requirement for change of ownership of DU. This amount represents 25% of the Title IV, Higher Education Act ("HEA") program funds received by DU during its most recently completed fiscal year.

***Revenue recognition***

ASC 606 provides for a five-step model for recognizing revenue from contracts with customers. These five steps include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Identify the contract

(ii) Identify performance obligations

(iii) Determine transaction price

(iv) Allocate transaction price

(v) Recognize revenue

Under ASC 606, revenue is recognized when the customer obtains control of a good or service. A customer obtains control of a good or service if it has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. The Company's revenue streams contain the following services and performance obligations offered through the subsidiaries of RIL, QHI or DU:

**Foreign language education program offered through RIL**

● English education programs

● English education programs

● Dorm renewal services

● Professional career training programs

● College education programs

● Post-education training programs

● Collaboration education services provided to an oversea college

● Real estate training program

The transfers of controls of all of the Company's above services occur over time upon the delivery of the services to the students based on the terms of the semesters. Therefore, revenues for all these performance obligations are all recognized over time as the students simultaneously receive the services and consume the benefits provided by the Company's performance of the services.

Except for the revenues related to the collaboration education services provided to an oversea college and the real estate training program, the Company determined it acts as the principal for all the service performance obligations since it is in control of establishing the prices for the specified services, managing the major aspects of the service delivery processes, and assuming the risks of loss for delivery and collection. For services where the Company acts as principle, services revenues are presented on a gross basis in the condensed consolidated statements of operations and comprehensive loss. For revenues related to collaboration education services provided to an oversea college and the real estate training program, they are presented on a net basis since the Company only acts as an agent when providing for these services primarily due to the Company does not have the discretion in establishing the prices and the Company does not have the risk before the services has been transferred to the student, or after the transfer of control to the customer.

Funds received from students prior to provision of our education services are recognized as deferred revenue. The deferred revenue is subsequently released into revenue once the registered semester starts and is released using straight-line method based on the semester period, which is generally three months. The release of the deferred revenue is to match the timing of the cost of our services, which is generally also based on the semester term.

***Costs of services***

Costs of services for all our education programs are primarily comprised of the tuition fees paid to our partnered education institutions and salary expenses for our instructors and employees involved in the provisions of the services. These fees are charged into costs of services when such fees are incurred based on semester terms in direct relation to the education programs.

***Fair value measurement***

Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value as follows:

---

| | |
|:---|:---|
| Level 1: | Quoted prices (unadjusted) in active markets for identical assets or liabilities. |
| Level 2: | Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. |
| Level 3: | Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. |

---

The Company's financial instruments include cash and cash equivalents, restricted cash, accounts receivable, other receivable, accounts payable and accrued liabilities, due to related party, loan payable, income tax payable and lease liabilities. The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, other receivable, accounts payable and accrued liabilities, income tax payable and due to related party approximate their fair values due to the short-term nature of these instruments. For lease liabilities, fair value approximates their carrying value at the year-end, as the interest rates used to discount the host contracts approximate market rates.

The Company did not have transfers of financial instruments between levels during any of the periods presented. The Company did not have any instruments that were measured at fair value on a recurring nor non-recurring basis as of March 31, 2025 and September 30, 2024.

***Property and equipment***

Property and equipment are recorded at cost, less accumulated, depreciation and impairment. Depreciation of property and equipment is calculated on a straight-line basis, after consideration of expected useful lives and estimated residual values. The estimated annual deprecation rates of these assets are generally as follows:

---

| | | |
|:---|:---|:---|
| **Category** | **Depreciation <br> years** | **Estimated<br> residual value** |
| Buildings | 33 to 39 | $Nil |
| Machinery & equipment | 3 | $Nil |
| Vehicles | 5 | $Nil |
| Furniture and fixtures | 7 | $Nil |
| Software | 5 | $Nil |
| Leasehold improvement | Lesser of lease term or economic life | $Nil |

---

Expenditures for maintenance and repairs are expensed as incurred. Gains and losses on disposals are the differences between net sales proceeds and carrying amount of the relevant assets and are recognized in the condensed consolidated statements of operations and comprehensive loss.

***Intangible assets***

 ****

Intangible assets are measured at cost less accumulated amortization and accumulated impairment losses. Cost includes all expenditures that are directly attributable to the acquisition or development of the asset, net of any amounts received in relation to those assets.

Amortization is recognized in net earnings on a straight-line basis over the estimated useful lives of intangible assets from the date that they are available for use. The estimated useful lives are:

---

| | | |
|:---|:---|:---|
| **Asset** | **Basis** | **Rate / term** |
| University relationship | Straight-line | 10 years |
| Education license/certificate | Straight-line | 5 years |
| In-process course curriculum | Straight-line | 5 years |
| Accreditations and licensing | n/a | Indefinite life |
| Accredited curriculum | Straight-line | 10 years |
| Articulation agreement | Straight-line | 5 years |
| Brand related assets | n/a | Indefinite life |

---

 ****

***Leases***

 ****

The Company determines if an arrangement is a lease at inception. The Company may have lease agreements with lease and non-lease components, which are generally accounted for separately. Leases are classified as either operating leases or finance leases pursuant to ASC 842.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Operating leases

 ****

Operating leases are recognized as right-of-use assets ("ROU") in non-current assets and lease liabilities in non-current liabilities in the condensed consolidated balance sheets if the initial lease term is greater than 12 months. For leases with an initial term of 12 months or less the Company recognizes those lease payments on a straight-line basis over the lease term.

ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, management uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Management uses the implicit rate when readily determinable. Lease expense for lease payments is recognized on a straight-line basis over the lease term and are included in general and administrative ("G&A") expenses.

***Impairment of long-lived and indefinite-lived assets***

Long-lived assets, comprised of property and equipment, ROU assets, and intangible assets subject to amortization, are assessed for impairment whenever events or circumstances indicate that their carrying value may not be recoverable. For the purpose of impairment testing, long-lived assets are grouped and tested for recoverability at the lowest level that generates independent cash flows. An impairment loss is recognized when the carrying value of the assets or asset groups is greater than the future projected undiscounted cash flows. The impairment loss is calculated as the excess of the carrying value over the fair value of the asset or asset group. Fair value is based on valuation techniques or third party appraisals. Significant estimates and judgments are applied in determining these cash flows and fair values.

Indefinite-lived intangible assets are tested annually for impairment as of September 30, and between annual tests if indicators of potential impairment exist. The Company has the option of performing a qualitative assessment to first determine whether the quantitative impairment test is necessary. This involves an assessment of qualitative factors to determine the existence of events or circumstances that would indicate whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying value. If the qualitative assessment indicates it is not more likely than not that the fair value is less than its carrying value, a quantitative impairment test is not required. Where a quantitative impairment test is required, the procedure is to compare the indefinite-lived intangible asset's fair value with its carrying amount. An impairment loss is recognized as the difference between the indefinite-lived intangible asset's carrying amount and its fair value.

There were no impairment losses for the six months ended March 31, 2025 and 2024.

***Goodwill***

 ****

Goodwill represents the excess of the purchase price of an acquired enterprise over the fair value assigned to the assets acquired and liabilities assumed in a business combination.

Goodwill is not amortized, but it is tested annually for impairment at the reporting unit level as of September 30, and between annual tests if indicators of potential impairment exist. The Company has the option of performing a qualitative assessment of a reporting unit to first determine whether the quantitative impairment test is necessary. This involves an assessment of qualitative factors to determine the existence of events or circumstances that would indicate whether it is more likely than not that the fair value of the reporting unit to which goodwill belongs is less than its carrying value. If the qualitative assessment indicates it is not more likely than not that the reporting unit's fair value is less than its carrying value, a quantitative impairment test is not required.

If a quantitative impairment test is required, the procedure is to identify potential impairment by comparing the reporting unit's fair value with its carrying amount, including goodwill. The reporting unit's fair value is determined using various valuation approaches and techniques that involve assumptions based on what the Company believes a hypothetical marketplace participant would use in estimating fair value on the measurement date. An impairment loss is recognized as the difference between the reporting unit's carrying amount and its fair value. If the difference between the reporting units carrying amount and fair value is greater than the amount of goodwill allocated to the reporting unit, the impairment loss is restricted by the amount of the goodwill allocated to the reporting unit.

As of March 31, 2025, the Company performed a qualitative assessment for its goodwill under RIL's operation and concluded that there were no indicators of impairment. As of September 30, 2024, the Company performed a quantitative assessment for its goodwill under RIL's operation and concluded that there were no indicators of impairment.

As of March 31, 2025, the Company performed a qualitative assessment of its goodwill under DU's operation and concluded that there were no indicators of impairment. As of September 30, 2024, the Company performed a qualitative assessment of its goodwill under DU's operation and concluded that there were no indicators of impairment.

***Taxation***

Current income taxes are provided on the basis of net profit for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions.

Deferred income taxes are recognized for temporary differences between the tax bases of assets and liabilities and their reported amounts in the condensed consolidated financial statements, net operating loss carry forwards and credits. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided in accordance with the laws of the relevant taxing authorities. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in which temporary differences are expected to be reversed or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in the statement of operation and comprehensive income in the period of the enactment of the change.

The Company considers positive and negative evidence when determining whether a portion or all of its deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carry-forward periods, its experience with tax attributes expiring unused, and its tax planning strategies. The ultimate realization of deferred tax assets is dependent upon its ability to generate sufficient future taxable income within the carry-forward periods provided for in the tax law and during the periods in which the temporary differences become deductible. When assessing the realization of deferred tax assets, the Company has considered possible sources of taxable income including (i) future reversals of existing taxable temporary differences, (ii) future taxable income exclusive of reversing temporary differences and carry-forwards, (iii) future taxable income arising from implementing tax planning strategies, and (iv) specific known trend of profits expected to be reflected within the industry.

The Company recognizes a tax benefit associated with an uncertain tax position when, in its judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, the Company initially and subsequently measures the tax benefit as the largest amount that the Company judges to have a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority. The Company's liability associated with unrecognized tax benefits is adjusted periodically due to changing circumstances, such as the progress of tax audits, case law developments and new or emerging legislation. Such adjustments are recognized entirely in the period in which they are identified. The Company's effective tax rate includes the net impact of changes in the liability for unrecognized tax benefits and subsequent adjustments as considered appropriate by management. The Company classifies interest and penalties recognized on the liability for unrecognized tax benefits as income tax expense.

***Earnings per share***

Basic earnings per share is computed by dividing net income attributable to shareholders by the weighted average number of common shares outstanding during the period using the two-class method. Under the two-class method, net income is allocated between common shares and other participating securities based on their participating rights. Net loss is not allocated to other participating securities if based on their contractual terms they are not obligated to share in the losses. Diluted earnings per share is calculated by dividing net income attributable to common shareholders by the weighted average number of common and dilutive common equivalent shares outstanding during the period. Common equivalent shares are not included in the denominator of the diluted loss per share calculation when inclusion of such shares would be anti-dilutive.

***Defined contribution plans***

 ****

The Company contributes to defined contribution retirement schemes which are available to all employees. Contributions to the schemes by the Company and employees are calculated as a percentage of employees' basic salaries. The retirement benefit scheme cost charged to profit or loss represents contributions payable by the Company to the funds.

***Stock-Based Compensation***

The measure stock-based awards at fair value on the date of the grant and expense the awards in condensed consolidated statements of operations and comprehensive loss over the requisite service period of employees or consultants. The fair value of stock options is determined using the Black-Scholes valuation model. The fair value of stock-based awards is determined using the share price of the Company at the date of grant. Stock-based compensation expense related to all stock-based awards, including stock option, is recognized over the requisite service period on a straight-line basis. The amount of stock-based compensation expense recognized at any date must at least equal the portion of the grant-date value of the award that is vested at that date. Forfeitures are accounted for as they occur.

***Recently adopted accounting standards***

**ASU 2021-08**: In October 2021, the FASB issued ASU 2021-08 for Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The update primarily addresses the accounting for contract assets and contract liabilities from revenue contracts with customers acquired in a business combination. The update requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606 - Revenue from Contracts with Customers, whereas prior to the adoption of the update, contract assets acquired and contract liabilities assumed in a business combination were recognized at fair value on the acquisition date. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption of the amendments is permitted, including adoption in an interim period. An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application. The Company adopted the new standards for the fiscal year ending September 30, 2024. The adoption of the new standards did not have impact to the Company's condensed consolidated financial statements.

**ASU 2023-07:** In November 2023, the FASB issued ASU 2023-07 for Segment Reporting (Topic 280): The amendments in this Update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this Update:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss (collectively referred to as the "significant expense principle").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Require that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition. The other segment items category is the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Require that a public entity provide all annual disclosures about a reportable segment's profit or loss and assets currently required by Topic 280 in interim periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Clarify that if the CODM uses more than one measure of a segment's profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit. However, at least one of the reported segment profit or loss measures (or the single reported measure, if only one is disclosed) should be the measure that is most consistent with the measurement principles used in measuring the corresponding amounts in the public entity's condensed consolidated financial statements. In other words, in addition to the measure that is most consistent with the measurement principles under generally accepted accounting principles (GAAP), a public entity is not precluded from reporting additional measures of a segment's profit or loss that are used by the CODM in assessing segment performance and deciding how to allocate resources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Require that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Require that a public entity that has a single reportable segment provide all the disclosures required by the amendments in this Update and all existing segment disclosures in Topic 280.

The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company adopted the new standards for the six months ended March 31, 2025. The adoption of the new standards did not have impact to the Company's condensed consolidated financial statements.

***Recently issued accounting standards***

**ASU 2024-03:** In November 2024, the FASB issued ASU 2024-03 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) to improve the disclosures about a public business entity's expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions (such as cost of sales; selling, general, and administrative expenses; and research and development).

The objective of the amendments is to provide disaggregated information about public business entity's expenses to help investors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Better understand the entity's performance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Better assess the entity's prospects for future cash flows

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Compare an entity's performance over time and with that of other entities.

The amendments in the ASU require disclosure in the notes to financial statements of specified information about certain costs and expenses. The amendments require that at each interim and annual reporting period an entity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Disclose the amounts of (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and (e) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities (or other amounts of depletion expense) included in each relevant expense caption. A relevant expense caption is an expense caption presented on the face of the income statement within continuing operations that contains any of the expense categories listed in (a)–(e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Include certain amounts that are already required to be disclosed under current generally accepted accounting principles in the same tabular disclosure as the other disaggregation requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Disclose the total amount of selling expenses and, in annual reporting periods, an entity's definition of selling expenses.

The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is still in the process of evaluating the impact of this ASU to its condensed consolidated financial statements since the ASU will only apply to the Company fiscal year of 2027.

3. **Prepaid Expenses and Long-term Prepaids**

<u>Prepaid expenses consist of the following:</u>

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **September 30,<br> 2024** |
|  | **US$** | **US$** |
| Prepaid fees to Renda for Beijing office expenses | - | 73429 |
| Prepaid fees to Beijing University Graduate School of Education | 117688 | 670820 |
| Prepaid insurance | 31559 | 66930 |
| Security deposit | 144953 | 125259 |
| Prepaid tuition fees to Shanghai Jiao Tong University | 19161 | 144131 |
| Prepaid fees to Guangzhou Zhonghong Hean | 84018 | 100822 |
| Prepaid management fees to New Sky | 66159 | - |
| Other prepaid expenses | 90890 | 124544 |
| Total | 554428 | 1305935 |

---

Prepaid fees to Renda for Beijing office expenses represent the fees that the Company prepaid to Beijing Renda Finance and Education Technology Co., Ltd ("Renda") for services have yet to be provided by Renda. The prepaid fees will be recognized into costs of services when such fees are incurred based on the actual costs incurred by Renda on behalf of the Company's Beijing office.

Prepaid fees to Beijing University Graduate School of Education ("BUGSE") represent tuition fees that the Company paid to BUGSE for services that have yet to be provided by BUGSE. The Company has entered into a training agreement with BUGSE, pursuant to which BUGSE will provide some International Innovation Talent Training ("IIT") courses to students of the Company.

Prepaid tuition fees to Shanghai Jiao Tong University represent the fees that the Company prepaid to Shanghai Jiao Tong University for services have yet to be provided. The prepaid fees will be recognized into costs of services when such fees are incurred based on the actual costs incurred by Shanghai Jiao Tong University.

Prepaid fees to Guangzhou Zhonghong Hean represent the fees that the Company prepaid to Guangzhou Zhonghong Hean for consulting and agency services have yet to be provided. The prepaid fees will be charged into expenses when Guangzhou Zhonghong Hean provided the consulting and agency services to the Company.

<u>Long-term Prepaids consist of the following:</u>

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **September 30,<br> 2024** |
|  | **US$** | **US$** |
| Prepaid for soccer games | 7500023 | 7500023 |

---

The prepaid for soccer games represents a service fee prepaid to Argentine Football Association (the "AFA"), On November 23, 2023, the Company's subsidiary, SouthGilmore, entered into an agreement (the "Agreement") with AFA, pursuant to which the parties agreed that hold certain international friendly matches between the Argentine men's national soccer team and similar opponents in China or Asia. Pursuant to the Agreement, SouthGilmore agreed to pay the AFA a total of $15.0 million, of which $7.5 million was prepaid by the Company in November 2023 in connection with the execution of the Agreement. In addition, pursuant to the Agreement, SouthGilmore agreed to assume the costs and obligations related to stadium charges, security, ticketing and all other matters generally related to the organization of the games. The friendly matches have not been held yet due to the delays in finding the proper components and the proper venues. In April 2024, the AFA confirmed to SouthGilmore that it was rescheduling the matches, which the AFA and SouthGilmore now plan to hold between October 2025 and March 2026 in the territory of the Asian Football Conference.

**4. Property and Equipment, net**

Property and equipment, net consist of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31<br> 2025** | **September 30,<br> 2024** |
|  | **US$** | **US$** |
| Land | 441462 | 721462 |
| Buildings | 84194 | 849961 |
| Machinery & equipment | 2008987 | 2008987 |
| Vehicles | 153996 | 153996 |
| Furniture and fixtures | 160349 | 160349 |
| Software | 870728 | 870728 |
| Leasehold improvement | 17329 | 17329 |
| Total | 3737045 | 4782812 |
| Less: Accumulated depreciation | $(3063344) | $(3184989) |
| Property and equipment, net | 673701 | 1597823 |

---

Depreciation expenses were recorded in general and administrative expenses. The Company recorded depreciation expenses of US$91,511 and US$116,231 for the six months ended March 31, 2025 and 2024, respectively.

**5. Intangible assets, net**

Intangible assets, net consist of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **September 30,<br> 2024** |
|  | **US$** | **US$** |
| University relationship | 377587 | 377587 |
| Education license/certificate | 28240 | 28240 |
| In-process course curriculum | 26067 | 26067 |
| Accreditations and licensing\* | 2202793 | 2202793 |
| Accredited curriculum | 1670461 | 1670461 |
| Articulation agreement | 53793 | 53793 |
| Brand related assets\* | 552580 | 552580 |
| Total | 4911521 | 4911521 |
| Less: Accumulated depreciation | (557419) | (447295) |
| Intangible assets, net | 4354102 | 4464226 |

---

*\** *(Indefinite-lived assets, not subject to amortization)*

Depreciation expenses were recorded in general and administrative expenses. The Company recorded depreciation expenses of US$110,124 and US$111,093 for the six months ended March 31, 2025 and 2024, respectively.

**6. Accounts Payable and Accrued Liabilities**

Accounts payable and accrued liabilities primarily consist of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **September 30,<br> 2024** |
|  | **US$** | **US$** |
| Accounts payable | 2315334 | 1206940 |
| Student refundable deposits | 166621 | 1403121 |
| Accrued commission expenses | 581911 | 420118 |
| Other payables | 207971 | 203292 |
| Total | 3271837 | 3233471 |

---

**7. Deferred revenue**

The movement of deferred revenue is as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2025** | **September 30,<br> 2024** |
|  | **US$** | **US$** |
| Opening balance | 5332194 | 4057517 |
| Additional deferred revenue accrual | 802055 | 5302014 |
| Revenue release from deferred revenue | (4140620) | (4027337) |
| Ending Balance | 1993629 | 5332194 |

---

For the six months ended March 31, 2025, $4,140,620 (2024: $4,027,337) revenue recognized in the current period was from prior period's ending deferred revenue balance.

**8. Loan payable**

Loan payable of US$409,956 represented a loan advanced from a third-party. The loan bears an annual interest of 2%. The loan subsequently matured on November 15, 2024 and it has been extended to November 15, 2026.

**9. Capital Stock**

*Common shares*

During the year ended September 30, 2024, the Company completed a unit offering private placement and issued 400,000 units with unit price of $2.00, raising total gross proceeds of $800,000. Each unit contains one share and one warrant. Each warrant is exercisable into one share at an exercise price of $2.00/share within 5 years from the issuance date.

During the year ended September 30, 2024, the Company issued 715,000 common shares to its directors, executives and employees for their services rendered to the Company. These common shares are based on certain vesting schedules (see "*Share-based awards*" below). An aggregate value of $834,399 related to the vested common shares was recognized in the year ended September 30, 2024.

During the six months ended March 31, 2025, the Company issued 495,000 common shares to its directors, executives and employees for their services rendered to the Company. These common shares are based on certain vesting schedules (see "*Share-based awards*" below). An aggregate value of $422,140 related to the vested common shares was recognized in the six months ended March 31, 2025.

*Warrants*

A continuity schedule of outstanding warrants at September 30, 2024 and March 31, 2025, and the changes during the periods, is as follows:

---

| | | |
|:---|:---|:---|
|  | **Number of<br> Warrants** | **Weighted<br> Average<br> Exercise<br> Price** |
|  | | **US$** |
| Balance, September 30, 2023 | 1562686 | 7.50 |
| Granted | 400000 | 2.00 |
| Exercised | - | - |
| Forfeited | - | - |
| Balance, September 30, 2024 and March 31, 2025 | 1962686 | 4.75 |

---

A summary of warrants outstanding and exercisable at September 30, 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **Exercisable** | **Weighted<br> Average<br> Exercise<br> Price** | **Weighted<br> Average<br> Remaining<br> Contractual<br> Life (Years)** |
|  | | **US$** | |
| **Grant date** | | | |
| March 29, 2021 | 1562686 | 7.50 | 1.49 |
| January 8, 2024 | 400000 | 2.00 | 4.27 |

---

A summary of warrants outstanding and exercisable at March 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **Exercisable** | **Weighted<br> Average<br> Exercise<br> Price** | **Weighted<br> Average<br> Remaining<br> Contractual<br> Life (Years)** |
|  | | **US$** | |
| **Grant date** | | | |
| March 29, 2021 | 1562686 | 7.50 | 0.99 |
| January 8, 2024 | 400000 | 2.00 | 3.77 |

---

*Stock options*

At March 31, 2025, the Company had one stock option plan, the 2019 Equity Incentive Plan (the "2019 Plan").

During the six months ended March 31, 2025, there was no stock options grant. During the year ended September 30, 2024, the Company granted 1,030,000 stock options, vesting in one-year or a three-year period, to certain officers and directors of the Company.

A continuity schedule of outstanding stock options at September 30, 2024 and March 31, 2025, and the changes during the periods, is as follows:

---

| | | |
|:---|:---|:---|
|  | **Number of<br> Stock<br> Options** | **Weighted<br> Average<br> Exercise<br> Price** |
|  | | **US$** |
| Balance, September 30, 2023 | 455000 | 3.73 |
| Granted | 1030000 | 1.16 |
| Exercised | - | - |
| Forfeited | - | - |
| Balance, September 30, 2024 and March 31, 2025 | 1485000 | 1.95 |

---

A continuity schedule of outstanding unvested stock options at September 30, 2024 and March 31, 2025, and the changes during the periods, is as follows:

---

| | | |
|:---|:---|:---|
|  | **Number of<br> Unvested<br> Stock<br> Options** | **Weighted<br> Average<br> Grant Date<br> Fair Value** |
|  | | **US$** |
| Balance, September 30, 2023 | 22500 | 2.11 |
| Granted | 1030000 | 1.10 |
| Vested | (775000) | 1.19 |
| Forfeited | - | - |
| Balance, September 30, 2024 | 277500 | 1.10 |
| Vested | (253750) | 1.16 |
| Forfeited | - | - |
| Balance, March 31, 2025 | 23750 | 1.10 |

---

At September 30, 2024, the aggregate intrinsic value of all outstanding stock options granted was estimated at $nil. At September 30, 2024, the unrecognized compensation cost related to unvested stock options was $32,861 expected to be recognized over 0.25 to 2.25 years.

At March 31, 2025, the aggregate intrinsic value of all outstanding stock options granted was estimated at $nil. At March 31, 2025, the unrecognized compensation cost related to unvested stock options was $24,646 expected to be recognized over 1.75 years.

A summary of stock options outstanding and exercisable at September 30, 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **Exercisable** | **Weighted<br> Average<br> Exercise<br> Price** | **Weighted<br> Average<br> Remaining<br> Contractual<br> Life (Years)** |
|  | | **US$** | |
| **Grant date** | | | |
| November 1, 2021 | 365000 | 4.10 | 7.08 |
| December 30, 2022 | 90000 | 2.21 | 8.25 |
| October 19, 2023 | 752500 | 1.16 | 9.08 |

---

A summary of stock options outstanding and exercisable at March 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **Exercisable** | **Weighted<br> Average<br> Exercise<br> Price** | **Weighted<br> Average<br> Remaining<br> Contractual<br> Life (Years)** |
|  | | **US$** | |
| **Grant date** | | | |
| November 1, 2021 | 365000 | 4.10 | 6.58 |
| December 30, 2022 | 90000 | 2.21 | 7.75 |
| October 19, 2023 | 1006250 | 1.16 | 8.58 |

---

*Share-based awards*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the year ended September 30, 2023, the Company granted 300,000 share-based awards with a fair value of $1.63 per share, determined using the share price at the date of grant of February 7, 2023, to a consultant of the Company. These share-based awards vest according to the percentage of the consulting services rendered to the Company. As of September 30, 2023, only 50% of the services have been rendered to the Company. Therefore, only 150,000 shares have been issued to the consultant during the year ended September 30, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During the year ended September 30, 2024, the Company granted an aggregate of 440,000 share-based awards with a fair value of $1.16 per share, determined using the share price at the date of grant of October 19, 2023, to certain officers of the Company. These share-based awards vest in 4 equal instalments over each of the quarter end of the fiscal year. During the year ended September 30, 2024, all of the 440,000 shares have already been issued to these officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) During the year ended September 30, 2024, the remaining 150,000 shares from note (a) above were granted to the consultant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) During the year ended September 30, 2024, the Company granted 150,000 share-based awards with a fair value of $0.84 per share, determined using the share price at the date of grant of July 10, 2024, to a consultant of the Company. These share-based awards vest according to the percentage of the consulting services rendered to the Company. As of September 30, 2024, 75,000 shares have already been issued to the consultant.

(e) During the six months ended March 31, 2025, the remaining 75,000 share from note (d) above were granted to the consultant.

(f) During the six months ended March 31, 2025, the Company granted an aggregate of 200,000 performance-based share (the "Performance Shares") to Chief Executive Officer, Chief Financial Officer and Chief Operating Officer. The Performance Shares are subject to a one-year vesting provision whereby the total Performance Shares become exercisable at the end of September 30, 2024 if the Company's sales increase achieved a targeted percentage determined by the Company. Since the Company has met the sales increase target for the year ended September 30, 2024, the share-based compensation expense in relation to the Performance Shares have been recognized during the six months ended March 31, 2025.

(g) During the six months ended March 31, 2025, the Company announced to grant an aggregate of 440,000 share-based awards with a fair value of $0.54 per share, determined using the share price at the date of grant of August 6, 2025, to certain officers of the Company. These share-based awards vest in 4 equal instalments over each of the quarter end of the fiscal year. During the six months ended March 31, 2025, 220,000 shares have been issued to these officers.

*Investment in subsidiary*

On November 17, 2023, the Company incorporated a 100% owned subsidiary, Gilmore. Gilmore owns 40% of SouthGilmore, which was incorporated on November 20, 2023. The shareholders of SouthGilmore agreed to contribute a total investment of US$7,500,000 into the newly formed entity. The Company agreed to subscribe to 600 units of the total 1,500 units issued by SouthGilmore by contributing US$3,750,000 (actual contribution: US$3,762,395). The remaining 900 units will be subscribed by the other shareholders, who will contribute the remaining US$3,750,000 (actual contribution: US$3,737,727) into SouthGilmore.

The Company determined SouthGilmore qualifies as a variable interest entity (VIE) due to its 40% ownership interest and the presence of two Company board directors (Jianbo Zhang and Zhenyu Wu) occupying two of SouthGilmore's three board seats. The Company concluded that it has controlling financial interest in SouthGilmore since it has: i) the power to direct the activities of SouthGilmore and ii) the Company's equity pickup of the financial results (losses or benefits) of SouthGilmore could potentially be significant to the Company. Therefore, the Company should consolidate SouthGilmore based on the VIE model.

Since the Company only owns 40% of the interest in SouthGilmore although it is required to contribute the same amount of investment as the other non-controlling shareholders ("NCI"), the Company ownership in the total US$7,500,000 is still based on the 40% ownership. Therefore, its US$3,750,000 investment was diluted by the NCI's additional 10% more ownership. The dilution amount, calculated based on actual contributions from the Company and the NCI, is US$762,346. Since the dilution has not changed the Company's control over SouthGilmore, the dilution amount is accounted for as an equity transaction between the Company, controlling shareholder, and the NCI.

**10. Loss per share**

Basic and diluted net loss per share for each of the years presented are calculated as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2024** |
|  | **US$** | **US$** |
| **Numerator:** | | |
| Net loss attributable to ordinary shareholders—basic and diluted | (231942) | (3207372) |
| **Denominator:** |  |  |
| Weighted average number of ordinary shares outstanding—basic and diluted | 13232953 | 12370905 |
| Loss per share attributable to ordinary shareholders —basic and diluted | (0.02) | (0.26) |

---

**11. Related Party Transactions and Balances**

***Related Parties***

---

| | |
|:---|:---|
| **Name of related parties** | **Relationship with the Company** |
| Jianbo Zhang | Founder and ultimate controlling shareholder, CEO |

---

***Due to related party balance***

The related party balances of $140,000 as of September 30, 2024 and March 31, 2025 relate to IPO costs paid by Jianbo Zhang on behalf of the Company. The related party balance is unsecured, non-interest bearing and due on demand.

**12. Revenue, costs of sales and gross profit margin**

The following table sets forth the revenue, costs of sales and gross profit margin of the Company:

---

| | | |
|:---|:---|:---|
|  | **For The Six Months<br> Ended**<br>**March 31, 2025** | **For The Six Months<br> Ended**<br>**March 31, 2024** |
| &nbsp;&nbsp;&nbsp;Revenues – English education program (QHI) | $1550559 | $2178611 |
| &nbsp;&nbsp;&nbsp;Revenues – English education program (RIL) | 24304 | 203259 |
| &nbsp;&nbsp;&nbsp;Revenues – Professional education and training programs (DU) | 3792542 | 1780780 |
| &nbsp;&nbsp;&nbsp;Costs of services English education programs (QHI) | 325439 | 784060 |
| &nbsp;&nbsp;&nbsp;Costs of services English education programs (RIL) | 35599 | 98180 |
| &nbsp;&nbsp;&nbsp;Costs of services professional education and training programs (DU) | 1590197 | 876989 |
| **Gross profit** | 3416170 | 2403421 |
| **Gross profit margin %** | 64% | 58% |

---

**13. General and administrative expenses** 

 ****

General and administrative expenses consist primarily of the following expenses:

---

| | | |
|:---|:---|:---|
|  | **For the Six Month<br> Ended<br> March 31, 2025** | **For the Six Months<br> March 31, 2024** |
| Bank charges | $7885 | $12011 |
| Depreciation expenses | 200569 | 226704 |
| Insurance | 58835 | 50270 |
| Office expenses | 517659 | 264299 |
| Professional | 557756 | 641513 |
| Rental expenses | 616730 | 390447 |
| Repairs and maintenance | 27750 | 27461 |
| Salary and benefits | 764209 | 1118589 |
| Management service fee | 1200000 | 1718767 |
| Stock-based compensation | 382815 | 1212998 |
| Sundry | 74318 | 76489 |
| Tax and licenses | 72470 | 96702 |
| Vehicle expenses | 28897 | 35807 |
| Bad debt (recovery) | - | (21130) |
| **Total** | **4509893** | **5850927** |

---

**14. Other income**

Other income consists primarily of the following:

---

| | | |
|:---|:---|:---|
|  | **For the Six Month<br> Ended<br> March 31, 2025** | **For the Six Months<br> March 31, 2024** |
|  | **US$** | **US$** |
| Gain from settlement of student-deposit refunds with Renda\* | 1200000 | - |
| Gain from disposal of fixed assets | 665389 | 477115 |
| Others | 25451 | 16439 |
| **Total** | **1890840** | **493554** |

---

*\** On March 1, 2025, the Company entered into an agreement with Renda whereby Renda assumed full responsibility for $1.2 million of student deposit refunds related to Miami University of Ohio (Regional Campuses), which were previously recorded in the Company's accounts payable. Under this agreement, Renda will process and fulfill all refund requests directly, relieving the Company of this financial obligation.

**15. Segment Reporting**

During the six months ended March 31, 2025 and 2024, the Company operated in three primary reportable segments, which were the foreign language education (QHI), foreign language education (RIL) and the professional training programs. Other business activities that are currently not classified as a reportable segment is combined in the category of "Other", which includes the results of HHI, Skyward, Gilmore and SouthGilmore.

A summary of segment information for the six months ended March 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Foreign<br> language<br> education**<br> **- QHI -**  | **Foreign <br> language <br> education <br> - RIL -** | **Professional <br> education and training <br> programs** | **Other** | **Total** |
|  | **US$** | **US$** | **US$** | **US$** | **US$** |
| Revenue | 1550559 | 24304 | 3792542 | - | 5367405 |
| Segmented loss (profit) | 1893461 | 277201 | (562868) | 355307 | 1963101 |
| Other income |  |  |  |  | (1890840) |
| Interest income |  |  |  |  | (2673) |
| Loss before income taxes |  |  |  |  | 69588 |
| Income taxes expense |  |  |  |  | 86571 |
| **Net loss** |  |  |  |  | **156159** |

---

A summary of segment information for the six months ended March 31, 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Foreign<br> language<br> education**<br> **- QHI -**  | **Foreign <br> language <br> education <br> - RIL -** | **Professional <br> education and training <br> programs** | **Other** | **Total** |
|  | **US$** | **US$** | **US$** | **US$** | **US$** |
| Revenue | 2178611 | 203258 | 1780781 |  | 4162650 |
| Segmented loss | 2890508 | 192473 | 676298 | 384279 | 4143558 |
| Other income |  |  |  |  | (493554) |
| Interest income |  |  |  |  | (19948) |
| Loss before income taxes |  |  |  |  | 3630056 |
| Income taxes (recovery) |  |  |  |  | (113142) |
| **Net loss** |  |  |  |  | **3516914** |

---

As at March 31, 2025, total assets located in the U.S. and Canada were $18,618,515 or 93%, and $1,419,559 or 7% of the Company's total assets.

As at September 30, 2024, total assets located in the U.S. and Canada were $21,774,378 or 93%, and $1,516,949 or 7% of the Company's total assets.

**16. Subsequent Events**

The Company has evaluated the impact of events that have occurred subsequent to March 31, 2025, through the date the condensed consolidated financial statements were available to issue, and concluded that no subsequent events have occurred that would require recognition in the condensed consolidated financial statements or disclosure in the notes to the condensed consolidated financial statements except the following:

1) On January 22, 2025, the Company entered into an agreement with a buyer to sell one of its buildings located in Middletown, Ohio, for a sales price of $325,000. The sale has not been closed as it is subject to buyer's property inspection and obtaining financing. The sale is closed on April 28, 2025.

2) On May 27, 2025, the Company consummated pursuant to a Securities Purchase Agreement (the "Purchase Agreement") an offering with certain accredited investors for the sale by the Company of (i) 4,500,000 ordinary shares of the Company, par value $0.0016 per share (the "Ordinary Shares") and (ii) warrants to purchase up to an aggregate of 13,500,000 Ordinary Shares (the "Warrants"), in a private placement offering. The combined purchase price of one Ordinary Share and accompanying Warrants was $0.40. Subject to certain ownership limitations, the Warrants are exercisable upon issuance. Each Warrant is exercisable into one Ordinary Share at a price per share of $0.48 (as adjusted from time to time in accordance with the terms thereof) and will expire on the first anniversary of the date of issuance.

3) On August 6, 2025, the Company's board of directors approved to grant an aggregate of 440,000 share-based awards with a fair value of $0.54 per share, determined using the share price at the date of grant of August 6, 2025, to a certain officers of the Company. These share-based awards vest in 4 equal instalments over each of the quarter end of the fiscal year. During the six months ended March 31, 2025, 220,000 shares have been issued to these officers.

## Exhibit 99.2

**Exhibit 99.2**

**Operating and Financial Review and Prospects**

*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes that appear in Exhibit 99.1 of this Form 6-K. In addition to historical consolidated financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms including "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "projects," "should," "will," "would," or the negative of these terms or other similar expressions. Our actual results could differ materially from those discussed in the forward-looking statements due to certain factors, including, without limitation, the risks set forth under the caption "Risk Factors" in our most recent Annual Report on Form 20-F filed with the SEC on January 31, 2025, which are incorporated herein by reference as well as those business risks and factors described elsewhere in this report and in our other filings with the Securities and Exchange Commission (the "SEC"). All forward-looking statements speak only as of the date made, and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.* 

**Operating Results**

We were founded in 2012. Our revenue is primarily derived from English education programs and professional training programs for the six months ended March 31, 2025 and 2024.

Our revenue for the six months ended March 31, 2025 increased by US$1.2 million as compared to that of the six months ended March 31, 2024. The increase was mainly due to increase in revenue from professional training programs in Davis University, and also due to more training programs were implemented. Our operating expenses decreased by US$1.2 million compared to six months ended March 31, 2024 primarily due to the decrease in our general administrative expenses. Our net loss for the six months ended March 31, 2025 decreased by US$3.4 million as compared to that of the six months ended March 31, 2024.

As of March 31, 2025, our cash was US$0.7 million, including restricted cash. This represents a decrease of US$0.8 million from US$1.5 million as of September 30, 2024. The decrease is mainly due to the net operating loss in the six months ended March 31, 2025.

**Results of Operations**

***<u>Six Months Ended March 31, 2025 & 2024</u>***

---

| | | |
|:---|:---|:---|
|  | **For The Six<br> Months<br> Ended**<br>**March 31,<br> 2025** | **For The Six<br> Months<br> Ended**<br>**March 31,<br> 2024** |
| &nbsp;&nbsp;&nbsp;Revenues | $5367405 | $4162650 |
| &nbsp;&nbsp;&nbsp;Costs of services | 1951235 | 1759229 |
| **Gross profit** | 3416170 | 2403421 |
| **Operating costs and expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;Selling expenses | 869378 | 696052 |
| &nbsp;&nbsp;&nbsp;General and administrative | 4509893 | 5850927 |
| **Total operating costs and expenses** | 5379271 | 6546979 |
| **Loss from operations** | (1963101) | (4143558) |
| **Other income** | (1893513) | (513502) |
| **Loss before provision for income taxes** | (69588) | (3630056) |
| **Income taxes expense (recovery)** | 86571 | (113142) |
| **Net loss** | (156159) | (3516914) |

---

***Revenue***

 ****

Our revenues increased by US$1.2 million or 28.9% in the first half of fiscal 2025 compared to the same period in fiscal 2024. These increases were mainly due to increase in revenue from professional training programs in our Davis University subsidiary, and also due to more training programs were implemented.

***Costs of services***

Our costs of sales in six months ended March 31, 2025 increased by US$0.2 million or 10.9% compared to the same period in 2024, which is due to the increase in our revenue.

***Gross Profit***

Our gross profit was $3.4 million for the first half of fiscal 2025 compared to $2.4 million for the same period of 2024, representing an increase of $1.0 million, or 42.1%. The increase was primarily due to increase in our revenue. As a result, our gross margin in six months ended March 31, 2025 increased to 63.6% from 57.7% of the same period in 2024.

**Operating expenses** 

Our operating expenses consist of selling and marketing expenses, and general and administrative expenses.

The Company's selling expenses primarily relate to the student recruitment commission fees paid to agents who provide student recruitment services to the Company and expenses related to business development. The Company relies on agents to promote and recruit potential students to enroll in its English learning programs and professional training programs. Total selling expenses increased by US$0.2 million in the first half year of fiscal 2025 compared to the same period in fiscal 2024, which is consistent with the increase in sales revenue.

Our general administrative expenses decreased by $1.3 million in the first half year of fiscal 2025 compared to the same period in fiscal 2024, mainly due to the decrease in non-cash expenses attributable to share-based compensation granted to directors, officers and employees.

**Other income**

Other income of $1.9 million in the first half of fiscal 2025, and US$0.5 million in the same period in fiscal 2024 is mainly related to gain from disposal of fixed assets and gain from settlement of student-deposit refunds with Renda.

**Net income (loss)**

Net loss for the six months ended March 31, 2025 was US$0.1 million, compared to the net loss of US$3.5 million for the same period in fiscal 2024, representing a decrease in net loss of US$3.4 million.

**Liquidity and Capital Resources**

**Cash Flows and Working Capital**

To date, we have financed our operations primarily through cash raised from our last initial public offering, US$9.3 million, and cash investments from our investors. As of March 31, 2025 and September 30, 2024, we had US$0.7 million, and US$1.5 million, respectively, in cash, which primarily consists of cash deposited in banks.

The Company's working capital requirements mainly comprise cost of English learning and professional training program fees, student recruitment fees, office expenses, professional fees, rental expenses, and salary expenses. We expect that the Company's capital requirements will be met by cash generated from its own operating activities and equity financing.

On January 8, 2024, the Company completed a unit offering private placement and issued 400,000 units with unit price of $2.00 per unit (the "January Private Placement"). Each unit contains one share and one warrant. Each warrant is exercisable into one share at an exercise price of $2.00/share within 5 years from the issuance date. The gross proceeds to the Company from the private placement was $0.8 million, before deducting offering expenses, and excluding the proceeds, if any, from the exercise of the warrants.

The Company's condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. However, as of March 31, 2025, the Company has incurred recurring net losses and negative cash flows from operations, which raise substantial doubt about its ability to continue as a going concern within one year after the date that the condensed consolidated financial statements are issued. As of March 31, 2025, the Company had an accumulated deficit of $15,190,620 and a working capital deficit of $3,963,800.

Management has developed a plan to address these concerns, which includes the following actions:

● Cost reduction initiatives: The Company plans to implement some cost-cutting measures, including reductions in discretionary spending.

● Equity financing: The Company is actively seeking additional equity financing to fund operations and meet its obligations.

● Asset sales: The Company is exploring the sale of non-core assets to generate additional liquidity.

● New university programs: The Company is exploring strategic partnerships with more universities to introduce more educational programs and increase sources of revenues.

While management believes that these plans are feasible, there is no assurance that these actions will be successful in mitigating the substantial doubt about the Company's ability to continue as a going concern. If the Company is unable to obtain sufficient financing or generate adequate cash flows from operations, it may be required to curtail or cease operations, seek protection under applicable bankruptcy laws, or pursue other strategic alternatives.

The Company's condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Cash Flow Summary**

***Six Months Ended March 31, 2025 and 2024***

 ****

---

| | | |
|:---|:---|:---|
|  | **For the Six <br> Months Ended <br> March 31, <br> 2025** | **For the Six <br> Months Ended <br> March 31, <br> 2024** |
| Net cash provided by (used in) operating activities | (2294857) | (10068519) |
| Net cash provided by (used in) investing activities | 1498000 | 748717 |
| Net cash provided by (used in) financing activities |  | 4947684 |
| Effect of exchange rate changes on cash | (18844) | (7690) |
| Net increase (decrease) in cash | (815701) | (4379808) |
| Cash at beginning of period | 1488754 | 5305551 |
| Cash at end of period | 673053 | 925743 |

---

We had a balance of cash and cash equivalents of US$0.7 million (including restricted cash) as of March 31, 2025, US$0.9 million as of March 31, 2024.

*<u>Operating Activities:</u>*

Net cash used in operating activities was US$2.3 million for the six months ended March 31, 2025, compared to net cash used in operating activities of US$10.1 million for the same period ended March 31, 2024, representing a US$7.8 million decrease in the net cash outflow in operating activities. The decrease in net cash outflow in operating activities was primarily due to the following:

1) We had a net loss of US$0.1 million for the six months ended March 31, 2025. For the six months ended March 31, 2024, we had a net loss of US$3.5 million which led to a US$3.4 million decrease in net cash outflow in operating activities.

2) Change in prepaid expenses and long-term prepaids generated US$0.8 million cash inflow for the six months ended March 31, 2025. For the six months ended March 31, 2024, change in prepaid expenses used US$6.3 million cash outflow, which led to a US$7.1 million increase in net cash inflow from operating activities.

3) Change in accounts payable and accrued liabilities generated US$1.2 million net cash inflow for the six months ended March 31, 2025. For the six months ended March 31, 2024, change in accounts payable and accrued liabilities generated net cash inflow of US$0.6 million, which led to a US$0.6 million increase in net cash inflow from operating activities.

4) Change in deferred revenue used US$3.3 million net cash outflow for the six months ended March 31, 2025. For the six months ended March 31, 2024, change in deferred revenue used net cash outflow of US$1.4 million, which led to a US$1.9 million increase in net cash outflow from operating activities.

6) Change in income tax receivable provided US$0.4 million net cash inflow for the six months ended March 31, 2025. For the six months ended March 31, 2024, the change was a net cash outflow of US$0.01 million, which led to a US$0.4 million increase in net cash inflow from operating activities.

7) Change in non-cash items, including depreciation and amortization, gain/loss from disposal of fixed assets, gain from settlement of student-deposit refunds with Renda, deferred income taxes and stock-based compensation expenses, provided a total of US$1.1 million net cash outflow for the six months ended March 31, 2025. For the six months ended March 31, 2024, the change was a net cash inflow of US$0.8 million, which led to a US$1.9 million decrease in net cash inflow in operating activities.

 

*<u>Investing Activities:</u>*

Net cash generated in investing activities was US$1.5 million for the six months ended March 31, 2025. It was the proceeds from sale of a real estate property.

Net cash generated in investing activities was US$0.7 million for the six months ended March 31, 2024. It was the proceeds from sale of a real estate property.

*<u>Financing Activities:</u>*

For the six months ended March 31, 2025, the Company had net cash provided by financing activities of US$Nil million.

For the six months ended March 31, 2024, the Company had net cash provided by financing activities of US$5.0 million, which was attributable to the net result of: 1) US$0.8 million from the January Private Placement; 2) US$0.4 million debt financing from a third party; and 3) US$3.7 million investment received for SouthGilmore subsidiary.

**Off-balance Sheet Arrangements**

The Company had not entered into any off-balance sheet transactions or arrangements as at the latest practicable date.

**Research and development, patents and licenses**

As an education service provider, our business does not rely on research and development. Therefore, we have not incurred research and development expenses for the six months ended March 31, 2025 and 2024.

**Trend Information**

Other than as disclosed elsewhere in this semi-annual report, we are not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on our net revenues, income from continuing operations, profitability, liquidity or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial condition or results of operations.

**Critical Accounting Estimates** 

We prepared our condensed consolidated financial statements in accordance with U.S. GAAP, which requires us to make judgments, estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the reported amounts of revenues and expenses during each reporting period. We continually evaluate these estimates and assumptions based on historical experience, knowledge and assessment of current business and other conditions, expectations regarding the future based on available information and reasonable assumptions, which together form a basis for making judgments about matters not readily apparent from other sources.

The following discussion of critical accounting policies and estimates is intended to supplement the significant accounting policies presented in the notes to our condensed consolidated financial statements included in "Item 18: Financial Statements" presented in this Form 6-K, which summarize the accounting policies and methods used in the preparation of those consolidated financial statements. The policies and the estimates discussed below are included here because they require more significant judgments and estimates in the preparation and presentation of our condensed consolidated financial statements than other policies and estimates. Actual amounts could differ materially from those estimated by us at the time our condensed consolidated financial statements are prepared.

**Goodwill**

Goodwill is not amortized, but it is tested annually for impairment as of September 30, or more frequently if events or changes in circumstances indicate that those assets might be impaired. Goodwill is tested for impairment at a reporting unit level, which is at the same level or one level below an operating segment. The reporting units that contain goodwill include Professional Training Program reporting unit and Other reporting unit.

We have the option of performing a qualitative assessment of a reporting unit to determine whether a quantitative impairment test is necessary. A qualitative assessment involves evaluating factors to determine the existence of events or circumstances that would indicate whether it is more likely than not that the fair value of the reporting unit to which goodwill belongs is less than its carrying amount. If the qualitative assessment indicates that the fair value of the reporting unit is more likely than not less than the carrying amount, then a quantitative impairment test would be performed.

If a quantitative impairment test is required, the process is to identify potential impairment by comparing the reporting unit's fair value with its carrying amount. The reporting unit's fair value is determined using various valuation methodologies including assets-based, income or market approaches. In determining the reporting unit's fair value, management is required to make judgments and assumptions relating to future cash flows, growth rates and economic and market conditions.

*Goodwill under Professional Training Program reporting unit* 

 

For the six months ended March 31, 2025, we performed a qualitative assessment of the professional education and training program reporting unit and we concluded there were no indicators of impairment that existed.

*Goodwill under Other reporting unit*

 

For the six months ended March 31, 2025, we performed a qualitative assessment of the goodwill from other reporting unit and we concluded there were no indicators of impairment that existed.

**Indefinite-lived intangible assets**

Indefinite-lived intangible assets are not amortized but instead tested annually for impairment as of September 30, and between semi-annual tests if indicators of potential impairment exist. The Company has the option of performing a qualitative assessment to first determine whether the quantitative impairment test is necessary. This involves an assessment of qualitative factors to determine the existence of events or circumstances that would indicate whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying value. If the qualitative assessment indicates it is not more likely than not that the fair value is less than its carrying value, a quantitative impairment test is not required. Where a quantitative impairment test is required, the procedure is to compare the indefinite-lived intangible asset's fair value with its carrying amount. An impairment loss is recognized as the difference between the indefinite-lived intangible asset's carrying amount and its fair value.

*Indefinite-lived intangible assets under Professional Training Program reporting unit*

For the six months ended March 31, 2025, we performed a qualitative assessment of the professional education and training program reporting unit and we concluded there were no indicators of impairment that existed.