KneoMedia Raises $2.9M, Expands KneoScience to 100,000 NYC Students with High School Launch

Corporate and Financial Resilience

KneoMedia Limited (ASX: KNM) has navigated a challenging period since its ASX trading suspension in March 2024, focusing on securing funding and meeting compliance requirements to resume trading. The company successfully completed a $1.25 million placement in September 2024, followed by a fully underwritten entitlement offer raising approximately $1.657 million in December. These capital injections, combined with growing sales revenue, have fortified KneoMedia’s working capital position, enabling the Board to reaffirm the Going Concern status in its FY 2024 Annual Report.

Operationally, the company reported positive net cash from operating activities for the quarter ended December 31, 2024, supported by a $726,000 licence renewal under the 'Connect All Kids' initiative. This renewal underscores the sustained demand for KneoMedia’s flagship KneoWorld platform, while also providing a cash flow foundation as the company scales its newer KneoScience Content Services Platform (CSP).

KneoScience Platform Expansion in New York City

The quarter saw significant progress in the deployment of KneoScience, a digital education platform co-developed with the New York City Department of Education (NYC DOE). Initially launched in October 2024 across three districts serving 35,000 elementary and middle school students, the platform has now expanded to six districts, reaching approximately 100,000 students. Five additional districts are actively reviewing the platform, signaling strong interest and potential for further adoption.

Crucially, KneoMedia is nearing finalisation of a contract with the NYC DOE for an initial deployment to 120,000 students, valued at an anticipated USD 3.6 million on a recurring annual licence basis. This contract, once confirmed, will solidify a significant revenue stream and validate the platform’s value proposition in a large, mandated education market.

Strategic Development: High School Biology Integration

Responding to DOE requests, KneoMedia has expanded its KneoScience platform to include Biology Investigations for high school students, adding a potential 300,000 students across 530 high schools. This extension represents a major strategic development, broadening the platform’s applicability and revenue potential substantially. Deployment to high schools is anticipated to commence in February 2025, further embedding KneoScience within the NYC education ecosystem.

The platform’s digital transformation of science investigations offers tangible benefits: improved student outcomes, significant time and cost savings for educators, real-time performance data, and secure, transferable student records. These advantages address critical pain points in the current paper-based system and align with NYC DOE’s goals to enhance science proficiency, which was notably low at 30% proficiency in the 2023-2024 state exams.

Investment in Intellectual Property and Future Outlook

KneoMedia invested $186,000 in intellectual property development during the quarter, focusing on enhancements to the KneoScience CSP. This ongoing R&D effort, conducted in close collaboration with the NYC DOE, is pivotal to maintaining the platform’s competitive edge and meeting evolving educational requirements.

With a $2 million equity line of credit facility available until January 2026 and a cash balance of $1.34 million at quarter-end, KneoMedia is well-positioned financially to support its growth initiatives. The company’s ability to convert director loans to equity as part of underwriting arrangements further demonstrates internal confidence in its prospects.

Looking ahead, the company’s near-term focus will be on securing the final DOE contract, expanding district deployments, and rolling out the high school biology component. These milestones will be critical in validating the platform’s scalability and revenue sustainability.