KNeoMedia Raises $2.9M, Expands KneoScience to 180,000 NYC Students
KNeoMedia advances toward ASX reinstatement after raising nearly $2.9 million and expanding its KneoScience platform across New York City schools, including a significant new high school content rollout.
- Completed $2.9 million capital raises supporting working capital
- KneoScience platform deployed to 180,000 NYC students and 15,000 educators
- Anticipated $3.6 million recurring contract with NYC Department of Education
- New high school biology content added, expanding potential user base by 300,000 students
- Positive quarterly cash flow with ongoing intellectual property investment
Corporate Progress and Capital Raises
KNeoMedia Limited (ASX: KNM) has reported significant strides toward reinstatement on the ASX following a suspension that began in March 2024. The company successfully completed its FY2024 financial audit and secured working capital through two major capital raises: a $1.25 million placement in September 2024 and a fully underwritten entitlement offer raising $1.657 million in December 2024. These efforts, supported by director sub-underwriting and loan conversions, have positioned KNeoMedia near a sustainable financial footing.
Expanding Footprint in New York City Education
Operationally, KNeoMedia’s KneoScience platform continues to gain traction within the New York City Department of Education (NYC DOE). Initially deployed to three districts covering 35,000 elementary and middle school students, the platform has expanded to six districts, now serving approximately 180,000 students and 15,000 teachers and administrators. This exceeds the original deployment target of 120,000 students for the 2024-2025 school year, underpinning an anticipated contract value of USD 3.6 million on a recurring annual license basis.
Innovations and New Content Launch
In a notable development, KNeoMedia has added Biology Investigations content tailored for high school students at the request of the NYC DOE. This addition, planned for deployment in February 2025, potentially opens access to 530 high schools and an additional 300,000 students, significantly expanding the platform’s market opportunity. The company is actively negotiating contractual arrangements to formalize this expansion, which could materially increase recurring revenues.
Financial Health and Future Outlook
The quarter saw an inflow of approximately A$726,000 from customer receipts, contributing to positive operating cash flow. Investment in intellectual property continued robustly, with $351,000 spent on platform development, including mandated multilingual translations to serve New York City's diverse student population. KNeoMedia also maintains access to a $2 million equity line of credit, although drawdown is contingent on ASX reinstatement.
Directors reaffirm the company’s going concern status, citing achieved or progressing core assumptions. The finalization of key contracts and receipt of payments from the NYC DOE are expected imminently, which will be critical to lifting the ASX suspension and supporting future growth.
Bottom Line?
KNeoMedia’s near-term success hinges on contract finalization and ASX reinstatement, setting the stage for a pivotal growth phase.
Questions in the middle?
- When will the NYC Department of Education contract be formally signed and payments received?
- How will the addition of high school content impact revenue and deployment timelines?
- What are the company’s plans to leverage the $2 million equity line of credit post-ASX reinstatement?
