Visual Education Technology signs a non-binding letter of intent to acquire the equity benefit of an online postgraduate teaching service provider.

QUALITY ONLINE EDUCATION GROUP INC. MANAGEMENTS MANAGEMENT Discussion and analysis of financial condition and results of operations (Form 10-K)

The next administration dialogue and evaluation (“MD&A”) needs to be learn along with the monetary statements of High quality On-line Training Group Inc.
(Ticker image: QOEG) for the years ended August 31, 2022 and 2021.

Protected Harbor Ahead-looking Statements

Sure statements included in MD&A represent forward-looking statements, together with these recognized by the expressions you count on, consider, plan, estimate, anticipate, intend, and related expressions to the extent they relate to
High quality On-line Training Group Inc. (ticker image: QOEG) or its administration. These forward-looking statements aren’t info, guarantees or warranties; Somewhat, it displays present expectations relating to future outcomes or occasions. These forward-looking statements are topic to dangers and uncertainties that would trigger precise outcomes, actions, efficiency or occasions to vary materially from present expectations. These embrace dangers associated to income progress, working outcomes, trade, merchandise, and litigation, in addition to issues mentioned in QOEG’s MD&A beneath Danger Components. Readers shouldn’t place undue reliance on any of those forward-looking statements. QOEG disclaims any obligation to publicly replace or revise any such statements to mirror any change within the Firm’s expectations or within the occasions, circumstances or circumstances on which such statements could also be based mostly, or that will have an effect on the chance that precise outcomes could differ from these set forth within the forward-looking statements.

The next dialogue of our monetary situation and outcomes of operations needs to be learn along with our monetary statements and associated notes contained on this report.

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Liquidity, capital sources and operations plan

Cares about

Our monetary statements that seem elsewhere on this prospectus have been ready on the going concern foundation, which considers realizing property and assembly liabilities within the regular course of enterprise. The Firm’s means to proceed as a going concern is dependent upon its means to lift extra capital as required. for the 12 months ended August 31, 2022The corporate incurred a internet lack of ($3,790,411). Initially, we intend to finance our operations via fairness financing.

Our auditors famous that these circumstances forged important doubts in regards to the Firm’s means to proceed as a going concern. These monetary statements don’t embrace any changes referring to the recoverability and classification of quantities or quantities of recorded property and classification of liabilities that will end result from this uncertainty.

There are not any exterior sources of liquidity.

Finance and securities affords

funding actions.

From inception, our main sources of working funds have been proceeds from fairness financing together with the sale of our frequent inventory to early buyers identified to administration and main shareholders of the corporate. We don’t count on our present money to fund our present operations. We might want to elevate the extra capital so as to ship on our marketing strategy and progress targets for no less than the subsequent twelve months thereafter. If the corporate is unable to lift sufficient extra funds, it should implement a slower progress trajectory than deliberate, scale back overhead and cut back its marketing strategy till sufficient extra capital is raised to assist additional growth and operational progress. There might be no assure that such a plan will succeed.

Enterprise technique

On-line Training High quality Group Based in August 2018 in Ontario, Canada With a worldwide attain. We offer complete on-line English classes for college kids everywhere in the world. The English language educating useful resource is unbalanced between areas. To satisfy this unmet want, we’ve got developed on-line and cellular studying platforms, custom-made content material and optimized advertising and marketing to supply top quality, inexpensive merchandise that allow college students all over the world to take stay English classes on-line with native English talking lecturers. We join our college students with extremely certified lecturers who’ve gone via a rigorous choice and coaching course of earlier than they provide classes. We recruit, practice and handle our lecturers from North Amarica And the Filipinos.

Our market consists of scholars from K12 to adults. Our classes deal with interplay and utility of the English language.

We have now efficiently launched the direct promoting mannequin via Mommy Influencer in numerous a part of Southeast Asia Nations. This enterprise mannequin is price efficient, gives us with nice gross sales and advertising and marketing and generates higher money move as in comparison with rivals who solely use internet advertising. With applicable growth of operations, coupled with iterating our direct promoting mannequin to worldwide goal areas over 200 cities all over the world, we count on to realize exponential progress charges.

Firm marketing strategy.

We’re launching small group classes, the place one instructor teaches 2-4 college students at a time on-line. The one-to-many mannequin has a decrease unit value than different rivals, and could also be inexpensive to extra college students, but ends in a better margin.

We intend to additional develop our gross sales platform by getting into extra cities within the
Southeast Asia And different nations that want instructional sources in English. Additionally, we plan to develop and launch new product traces akin to take a look at preparation coaching for IELTS and non-English sorts. Masking our present pupil base JapanAnd the
ThailandAnd the France And the Germany. We count on a higher revenue margin via rising pupil retention and launching new product traces, akin to group classes.

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Income

throughout the 12 months ended August 31, 2022The corporate billed our prospects
$2.70 million And achieved a income of $1.67 million In comparison with $481,561 For the 12 months ending 2021. Gross margin for the 12 months ending August 31, 2022 I used to be
$961,424 or 57.3% in comparison with $45,365 or 9.4% for the 12 months ended August 31, 2021. Increased common promoting costs and decrease free trial tiers for primarily prospects elevated gross margin.

The decrease gross margin for the durations ended 2020 and 2021 is primarily attributable to:

1) Present trial lessons and free trial lessons to college students for a greater market

adoption;

2) Our costs have been intentionally lowered within the aggressive marketplace for prospects

gravity.

We have now completed holding the one VIE in September 2021and stopped buying college students from the mainland China in December 2021and stopped offering tutoring companies to college students on the mainland China On the finish of the April 2022. Our focus is on
North AmaricaAnd the Southeast Asia And the Europe markets. We’re ambitiously searching for extra abroad enterprise companions, and researched and developed our studying platform higher for purchasers. In consequence, we don’t count on companies to college students to be interrupted China It would negatively have an effect on our income sooner or later.

Working bills

The next is the breakdown of working bills for 12 months ended of 8/31/22
and eight/31/21:

                                     For 12 months ended       For 12 months ended
                                       8/31/2022            8/31/2021
Working bills:
Promoting & Advertising and marketing                       67,414               59,739
Depreciation                                   3,599               68,842
Fee                                   412,664               82,729
Enterprise consulting                        3,962,795               30,828
Basic & Administrative bills            119,447              355,178
Authorized & Skilled charges                     93,408              134,633
Payroll & Advantages                            92,508            1,408,434
Complete working bills                   4,751,835            2,140,383


working bills have been $4,751,835 for the 12 months ended August 31, 2022 In comparison with
$2,140,383 for the 12 months ended August 31, 2021. Working bills elevated by 122% throughout the 12 months ended August 31, 2022 It was primarily pushed by enterprise consulting bills.

Promoting and advertising and marketing

Promoting and advertising and marketing bills are related to selling the corporate and the service to our potential prospects. for the 12 months ended August 31, 2022The corporate incurred promoting and advertising and marketing bills of Rs $67,414 In comparison with $59,739 for a similar interval of the earlier 12 months. The rise is principally attributable to elevated utilization of companies from social media channels and advertising and marketing firms.

Consumption

Depreciation pertains to computer systems, workplace furnishings and tools. for the 12 months ended August 31, 2022The corporate incurred depreciation expense $3,599In comparison with $68,842 for a similar interval of the earlier 12 months. The lower in depreciation expense is as a result of termination of VIE with Tianjin Zhipin Training Expertise Co., Ltd.

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Fee

Fee bills are related to gross sales made by our mother influencers and gross sales groups. for the 12 months ended August 31, 2022The Firm has incurred fee expense
$412,664In comparison with $82,729 for a similar interval of the earlier 12 months. The rise in fee expense was primarily pushed by the recruitment of extra salespeople on a fee foundation.

Enterprise consulting

Enterprise consulting bills are related to skilled companies supplied by contractors. for the 12 months ended August 31, 2022the corporate incurred enterprise consulting charges $3,962,795 In comparison with $30,828 for a similar interval of the earlier 12 months. The numerous improve is primarily attributable to bills associated to the service contract with Tianjin Zhipin Training Expertise Co., Ltd.which supplied on-line schooling market analysis, enterprise and knowledge know-how consulting companies.

Basic and administrative bills

Administrative and common bills relate to hire, workplace bills, utilities, meals, and leisure. for the 12 months ended August 31, 2022The corporate incurred common and administrative bills of Rs $119,447In comparison with
$355,178 for a similar interval of the earlier 12 months. The decline is primarily as a result of termination of VIE with Tianjin Zhipin Training Expertise Co., Ltd.

Authorized {and professional} charges

Authorized {and professional} charges relate to skilled companies supplied by attorneys and accountants. for the 12 months ended August 31, 2022The corporate incurred authorized {and professional} bills of Rs $93,408 In comparison with $134,633 for a similar interval of the earlier 12 months. There was a rise within the earlier 12 months as a result of audit charges paid by the corporate for the earlier years.

Salaries and advantages

for the 12 months ended August 31, 2022have been the salaries and advantages $92,508In comparison with
$1,408,434 for the earlier 12 months. The numerous drop was primarily attributed to the termination of VIE’s contract with VIE Tianjin Zhipin Training Expertise Co., Ltd.

Contractual obligations, liabilities and contingencies

As of date no.

steadiness sheet preparations

We did not have it throughout the durations proven, and we do not presently have any off-balance sheet preparations.

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