Firstly, I would like to disclose I am not a current...

Firstly, I would like to disclose I am not a current shareholder. I am someone who works in the education sector and passionate about investing in education stocks. My current position is in GEM and CQE. I am interested with OLL but have some concerns about the following:

1) Negative operating cash outflow for current quarter 30 Sept 2020 of -$1.2m. If conditions persist, with a current cash balance of $4.7m, they can only survive for a further 4.7/1.2=3.9 quarters or 12 months. Cash is everything. You can have $100m of sales but the moment you have $0 cash, you are bankrupt by all definitions.




2. Supporting point 1, Auditor drew attention the material uncertainty related to going concern. Its fancy pants language for there is a probability the business to go bust within 12 months. This accounting definition of going concern is the ability to pay debts for the upcoming 12 months.

1st time was the annual report 2019:

Agian, this was highlighted in half-year 2020.



3) My gut feeling is that online learning is still boring and perceived as lower quality than in-class learning no matter the improvement. Education research shows ICT is a complemantary tool, and not meant to be a medium of learning. Universities has their own in-house education researchers, they would be the 1st to develop online tools to do so. I was a graduate in a G8 uni and many teaching staff while are expert in their field, are not expert in teaching. With high casualisation of uni workforce, there is minimal teaching motivation or financial incentives offered to put themselve to the screen.

4) It is also entirely unclear what exactly does OLL sell? I been through its financial reports and I have a perception it is a gumtree for degrees. Academic routing had been rampart throughout the years, online degrees will only make it worse. Since online programs can be replicated unlimitedly, this might end up as a listed degree-mill.