Wed, Jul 17, 10:45 AM (52 days ago)
Legacy Education Alliance, Inc. filed an amended 10-Q for Q1 2024, indicating financial challenges and operational disruptions. Key points include: 1. **Revenue and Profitability**: Revenue increased by 86% YoY to $133,000. However, the company reported a net loss of $786,000, slightly better than the $878,000 loss in Q1 2023. 2. **Operating Expenses**: Total operating expenses decreased by 7% to $919,000, driven by a significant reduction in general and administrative expenses. 3. **Cash Flow**: Net cash used in operating activities was $23,000, a decrease from $200,000 in Q1 2023. Financing activities provided $25,000. 4. **Going Concern**: The company highlighted substantial doubt about its ability to continue as a going concern due to an accumulated deficit, working capital deficit, and negative cash flow. 5. **Operational Adjustments**: The company has suspended live in-person events and is focusing on online operations and strategic initiatives, including potential spinoffs and acquisitions. 6. **Audit Issues**: The company's financial statements have not been reviewed by auditors due to the termination of their auditors in August 2023. 7. **Legal Proceedings**: The company is involved in multiple legal disputes which could impact future financial stability. These points underscore significant financial and operational uncertainties, impacting future performance and liquidity.