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Exam Code: CFE Practice test 2023 by Killexams.com team
CFE Certified Financial Examiner (CFE)

1. CFE designation requirement

To qualify for the CFE designation, you must have obtained the AFE designation or be applying for the AFE designation concurrently with the application for the CFE designation. A CFE designation will not be granted until the AFE designation is obtained. This may occur on the same day, but the AFE designation requirements must be met before the CFE can be obtained.



2. Education requirements

To qualify for the CFE designation, you must have:



Successfully completed three semester hours of a Management course from an accredited college or university or its demonstrable equivalent, and you must provide evidence of the successful completion of this course by either a certificate of completion or a college transcript.



Note that the Management courses offered by CPCU, LOMA, and CLU will satisfy this requirement. For more information about their courses in Management, visit their websites at www.aicpcu.org, www.loma.org, and www.theamericancollege.edu.



To qualify for the CFE designation, you must successfully complete the three CFE examinations administered by the Society of Financial Examiners. The three CFE exams are:



CFE1 - Examination Methods and Management

CFE2 - Enterprise Risk Management

CFE3 - Reinsurance



The information about registering for these examinations is provided at http://www.sofe.org/testing/. To assist in studying for these examinations, the Society provides study guides and textbook materials. A description of these study items is also provided at http://www.sofe.org/testing/. You are welcome to take CFE exams prior to receiving the AFE designation but must receive the AFE designation prior to receiving the CFE designation.



Conditional Credit Policy - Effective January 1, 2012, a candidate for the CFE designation will be subject to the conditional credit policy as stated below:



The passing grade for each of the tests of the CFE is 66 prior to July 1, 2014; thereafter it is 74. A candidate who passes any test of the CFE will earn conditional credit for that test. This conditional credit expires 36 months after the testing date. If a candidate does not successfully pass the remaining tests within the 36 months, the test associated with the conditional credit must be retaken.



An application reflecting fulfillment of all requirements for a designation must be submitted within thirty-eight months following the month in which the applicant passed his/her first test for that designation track.



4. Work-related experience requirements

To qualify for the CFE designation, you must be an insurance department employee, or self-employed with a contract for services directly with an insurance department, or be employed with a company that has a contract with a state insurance department and have three (3) years of continuous, responsible insurance department examination experience as a financial examiner. Note that the two years required for the AFE designation, qualify as the first two years of the requirement for the CFE, therefore, you only need to obtain one additional year.



5. Membership requirements

To qualify for the CFE designation, you must be an Accredited Member in good standing of the Society of Financial Examiners.



6. Application approval requirements

To receive the CFE designation, you must submit an application to SOFE headquarters and it must be approved first by the Membership Committee, who will then recommend it for approval by the Executive Committee of the Society. Upon approval by the Executive Committee, the designation will become effective.



Deadlines — The approval process of a properly completed designation application is typically between six to eight weeks, as follows: The completed application, with all required information and documentation must be submitted to SOFE by email, fax or mail, for arrival by the 3rd week of the month for inclusion in the next months Membership Committee review. Applicants recommended for approval by the Membership Committee are then submitted for vote by the Executive Committee, generally within 30 days of Membership Committee approval. Applications may be found on the Society's website at www.sofe.org under the link for SOFE Forms or under the Resource tab.

Certified Financial Examiner (CFE)
Financial Certified test prep
Killexams : Financial Certified test prep - BingNews https://killexams.com/pass4sure/exam-detail/CFE Search results Killexams : Financial Certified test prep - BingNews https://killexams.com/pass4sure/exam-detail/CFE https://killexams.com/exam_list/Financial Killexams : CFP test pass rate highest in 8 years but which states saw the most takers?

Almost seven in ten of the 2,926 candidates who took the CFP Certification test in July passed.

The CFP Board stats show that the 67% pass rate was the highest since July 2015 (70%), although the test blueprint has been updated twice since, in March 2016 and March 2022.

Ten states accounted for more than half (1,562) of those taking the test last month – California, Texas, Pennsylvania, Florida, Illinois, New York, North Carolina, Colorado, Ohio and Massachusetts – although the individual states’ pass rates is not reported.

Asked after the test why they wanted to gain CFP Certification, 41% said to demonstrate experience on the job (41%), and 25% said to distinguish themselves as a fiduciary.

Firms showed strong support for their candidates with 77% of test takers saying they had received some financial support from their employer during the examination process.

“As CFP Board continues to foster growth in the financial planning profession, we are committed to providing access to the tools CFP® certification candidates need to prepare for the exam,” said CFP Board CEO Kevin R. Keller, CAE. “Congratulations to candidates from across the country for passing this rigorous exam.”

Prepping for the exam

Exam takers from last month’s round were asked how they prepared for the examination.

The top answers included:

  • CFP Board Practice test 1
  • the test Candidate Handbook
  • the Candidate Preparation Toolkit.

Other resources used included CFP Board supplementary resources and guidance documents, the CFP Board Candidate Forum and webinars.

Wed, 16 Aug 2023 22:31:00 -0500 en-US text/html https://www.investmentnews.com/cfp-exam-pass-rate-highest-in-8-years-but-which-states-saw-the-most-takers-241155
Killexams : Lawsuits Against Google And Meta Allege Websites Are Spying On Taxpayers No result found, try new keyword!Users of tax prep websites in seven states have filed a class action lawsuit against Google, LLC, claiming the company engaged in wiretapping. Tue, 22 Aug 2023 23:16:50 -0500 en-us text/html https://www.msn.com/ Killexams : CFP Board Announces July 2023 CFP® Certification test Results

WASHINGTON, Aug. 15, 2023 /PRNewswire/ -- CFP Board today announced the results of the July 2023 CFP® Certification Exam. The test was administered during a July 11-18 testing window to 2,926 candidates, with 6% of candidates testing remotely. The pass rate for the July test was 67%.

Certified Financial Planner Board of Standards, Inc. Logo (PRNewsfoto/Certified Financial Planner Boa)

According to the July 2023 post-exam survey, the main reason exam-takers are pursuing CFP® certification is to demonstrate experience on the job (41%), followed by to distinguish themselves as a fiduciary (25%). Of the exam-takers, 77% reported receiving some level of financial support from their employers during the CFP® certification process.

Registration for the CFP® test showed that 71% of July candidates are under 40 years old and 38% are under 30 years old.

The top three CFP Board test preparation resources used by exam-takers were CFP Board Practice test 1, the test Candidate Handbook and the Candidate Preparation Toolkit. Other resources used included CFP Board supplementary resources and guidance documents, the CFP Board Candidate Forum and webinars. The 10 states with the most exam-takers were California, Texas, Pennsylvania, Florida, Illinois, New York, North Carolina, Colorado, Ohio and Massachusetts, with 1,562 candidates from these states sitting for the exam.

"As CFP Board continues to foster growth in the financial planning profession, we are committed to providing access to the tools CFP® certification candidates need to prepare for the exam," said CFP Board CEO Kevin R. Keller, CAE. "Congratulations to candidates from across the country for passing this rigorous exam."

Statistics from previous exams — including those from the July 2023 test — are available on CFP Board's test statistics webpage.

November 2023 Exam

The CFP® test is offered three times annually, in March, July and November. Registration for the November 2023 CFP® Certification test is now open. This test will be administered from October 31 through November 7, 2023. The registration deadline is October 17, and the Education Verification deadline is October 10. Testing appointments are scheduled on a first-come, first-served basis. We therefore encourage individuals to register for the exam at least 60 days in advance for the best date and site availability. Early registrants who schedule exams by September 5 are eligible for a discount.

To begin the path to certification, CFP® certification candidates should create accounts on CFP.net. Here, they can access resources for all stages of their certification journey.

ABOUT CFP BOARD
CFP Board is the professional body for personal financial planners in the U.S. CFP Board consists of two affiliated organizations focused on advancing the financial planning profession for the public's benefit. CFP Board of Standards sets and upholds standards for financial planning and administers the prestigious CERTIFIED FINANCIAL PLANNER™ certification — widely recognized by the public, advisors and firms as the standard for financial planners — so that the public has access to the benefits of competent and ethical financial planning. CFP® certification is held by more than 96,000 people in the U.S. CFP Board Center for Financial Planning addresses diversity and workforce development challenges and conducts and publishes research that adds to the financial planning profession's body of knowledge.

Cision

View original content to download multimedia:https://www.prnewswire.com/news-releases/cfp-board-announces-july-2023-cfp-certification-exam-results-301901084.html

SOURCE Certified Financial Planner Board of Standards, Inc.

Tue, 15 Aug 2023 02:00:00 -0500 en-US text/html https://finance.yahoo.com/news/cfp-board-announces-july-2023-140000944.html
Killexams : 3 financial pros share the best way to budget for this school year — and the most common expenses that parents forget about No result found, try new keyword!Grades, like senior year, can be particularly expensive. Often times parents also forget to budget for sport registrations or after-school activities. Wed, 16 Aug 2023 06:24:01 -0500 en-us text/html https://www.msn.com/ Killexams : For this immigrant-led clean energy company, perspective is everything

A Chicago-area engineer and CEO with roots in Ghana, Senyo Ador has a unique perspective on promoting clean energy and sustainable development. 

“You can come into a space like Chicago that has been built, caught on fire and rebuilt, and you juxtapose that against Ghana, [which] still is more like a blank slate that’s continuing to build its own infrastructure,” said Ador, who is the co-founder of Sẽsẽnergi Eco Solutions Enterprise in Berwyn, Illinois. “It’s almost like I’m cheating because I’ve seen a finished product and now I’m in a space where I have access to a work in progress.” 

Sẽsẽnergi offers advisory and energy modeling services to developers to build, design, and finance net-zero or high-efficiency projects. Ador is also committed to providing career opportunities in the clean energy economy to members of BIPOC communities. 

Ador and his company collaborate with Elevate, a clean energy nonprofit based in Chicago. Through its workforce development program, Elevate provides financial and logistical support for community-based service providers like Sẽsẽnergi to increase diversity among clean-energy operations — and thereby increase employment opportunities for members of traditionally disinvested communities.

Elevate’s program recruits business owners from marginalized communities in a number of specialties, including general contracting, heating and cooling, electrification, weatherization and plumbing. Companies and their owners receive capacity and growth planning, community-based clean energy skills training, business development, job and life skills training, networking opportunities, and stipends to cover lost income and certification fees. The program also provides access to sources of vital working capital. 

Collaboration with Elevate has been vital for Ador and Sẽsẽnergi, providing additional support to help the company secure contracts that might otherwise have been out of reach. 

“Being able to stabilize yourself with a relationship [with] Elevate means a lot,” Ador said. “I think pairing [the two] together gives a lot of folks that are looking at a two-and-a-half-year-old company, and wondering how it’s going to work, some peace of mind.”

Moving into clean energy

Ador is a third-generation engineer. His grandfather was trained as a civil engineer in Germany, and his father worked as a welder on the first hydroelectric dam in Ghana. He began his career with GE building gas plants, and later worked on a rural electrification project through his family-owned business, TMG Ghana. 

“After 10 years, it really got me understanding process,” Ador said. “Like what is the cycle from saying, ‘Hey, I want to put a solar farm in this part of the world’ to your interconnection with a utility. From that I started to grow confidence and feel like this is something I could do. Not only on my own, but with people that have the same kind of worldview and background as myself.”

Even while working with projects using fossil fuels, Ador was inspired by the possibilities of clean energy. But it was while working on a rural electrification project in Ghana that Ador observed the transformational power of clean energy on the ground. 

“I would build gas turbines, but I was aware of wind turbines and so I would tinker,” Ador said. “I had an opportunity to visit a farm in Pembroke 10 years ago — maybe even more than that — Black Oaks Center for Sustainable Living. And they were really deep in the solar conversation, energy storage, biofuel. And to see folks from Chicago — African Americans with corporate backgrounds that just decided, ‘We’re going to unplug from the world as we know it, and just burrow down this adventure of clean energy and sustainability’ — it was inspiring.

“But the international piece was on the rural electrification projects that I was working on [in Ghana]. The grid could only go so far because of the terrain. You have to carry poles and wires and transformers deep into these areas. The only way to really get meaningful access to electricity to people is solar. 

“So, we started doing island communities there, and that’s what really got my wheels turning. I was like, okay, this is an island community that their livelihood is based around fishery. So, they need cold storage. Now [I was] moving out of the aid conversation into, ‘What’s your bottom line?’ And you guys are losing a bunch of fish because you can’t store it. This solution can actually impact your ability to store and sell fish that otherwise would’ve been considered a loss.” 

From left, Senyo Ador, Eliyah Payton, and Osei Andrews-Hutchinson, holding a certificate of completion, pose for a photo.
From left, Senyo Ador, Eliyah Payton, and Osei Andrews-Hutchinson at a graduation ceremony for Sẽsẽnergi’s workforce training program. Credit: Sẽsẽnergi Eco Solutions Enterprise / Courtesy

Workforce training 

Sẽsẽnergi, which has three full-time and four part-time employees, launched its workforce training program in 2021, recruiting cohorts of 10 to 14 trainees. The 16-week curriculum covers solar array installation, site assessment, system design and preparation for the North American Board of Certified Energy Practitioners exam. 

Sẽsẽnergi also provides cross-training, such as water heater and heat pump installation. To date, three cohort members have found employment within the company while six have landed external positions with an inverter manufacturer and a solar installer company. 

Providing clean energy workforce opportunities for members of environmental justice communities — where opportunities for formal employment are scarce — is an essential element of Sẽsẽnergi’s mission. Honoring this mission has meant that the bottom line has sometimes, at least temporarily, taken a back seat to grant grace to less-than-optimal employee performance. In one instance, a no-show employee put an important heater replacement job on the line. Nonetheless, the worker is still with the company, Ador said.

“Having somebody that’s 25 years old for 14 weeks, you get attached to them; you get attached to their potential,” Ador said. “You have a vision for what they can be in your company, but that’s 25 years of life that’s been lived. You have to afford people the opportunity to be human, with all that entails. 

“So, on that particular project, it was a no call, no show, [on] the pipeline deal. Obviously being disappointed and doing your best to try to smooth that over, so that you can maintain your book of business, but then also not throwing human beings away because one opportunity just didn’t work out. It’s a painful process, but it’s something that we’re committed to. It’s part of who we are and we can’t turn away from it.”

With his experience working on bigger projects, Ador recognizes there are limits to what a small company can take on. 

“Our team will get frustrated with having missed out on the opportunity and we’ll look in the mirror and say, ‘Hey, we know what it takes to ultimately be at that table,” Ador said. “It takes time; it takes tenacity and you can’t really quit.’” 

On the other hand, as a Black entrepreneur, Ador still encounters obstacles that White-owned companies may not deal with, despite his extensive expertise and experience. 

“I’m happy to see more and more of us [BIPOC] in those spaces,” Ador said. “But even with my experience, I can come on a job, and you will feel like you’re being shut out or frozen out or taken for granted in certain ways. So, it’s a constant fight, but I think that’s part of being an entrepreneur is not taking that fight sitting down.” 

Looking toward the future 

Collaboration with Elevate will continue to play a significant role in the future of the company as it continues to build capacity for hands-on projects, Ador said.

“I feel good about the company,” Ador said. “We’re a BIPOC company by makeup, but I think energy is an everybody issue and everybody needs those solutions. So, we want to cross-collaborate as much as possible. We obviously will always be in tune with the community’s needs. It’s not even a mandate. It’s part of our DNA that we’re going to be supporting Black and Brown communities and disenfranchised portions of not just Illinois, Chicago, the U.S., but globally.

“There’s always a continuing dialogue about how we can utilize sustainability as a tool to unlock value for the built environment, but also the human environment.”

Tue, 22 Aug 2023 07:44:00 -0500 en-US text/html https://energynews.us/2023/08/22/for-this-immigrant-led-clean-energy-company-perspective-is-everything/ Killexams : Owner of Home Health Care Company to Plead Guilty to Tax Offense

BOSTON – A Certified Nurse Assistant who owns and operates a home health care company has been charged and has agreed to plead guilty to underreporting his income to the Internal Revenue Service (IRS).

Patrick S. Kityo, 43, of Newtonville, has agreed to plead guilty to one count of aiding the preparation of a false tax return. A plea hearing has not yet been scheduled by the Court.

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According to the charging documents, Kityo owned and operated a home health care company named Every Step Home Care Inc. (Every Step).  It is alleged that, during the years 2016 and 2017, Every Step’s total gross receipts were at least $2 million.  Kityo, however, allegedly failed to report all of Every Step’s gross receipts to his tax preparer.  Instead, it is alleged that Kityo only reported those gross receipts that Kityo deposited into Every Step’s business bank account and did not report those he received via checks written to Kityo personally.  As a result, Kityo allegedly caused his tax preparer to underreport nearly $2 million in gross receipts and Kityo allegedly failed to pay at least $306,603 in personal income taxes.

The charge of aiding the preparation of a false tax return provides for a sentence of up to three years in prison, one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Wed, 23 Aug 2023 01:02:00 -0500 en-US text/html https://finchannel.com/owner-of-home-health-care-company-to-plead-guilty-to-tax-offense/116835/crime/2023/08/
Killexams : Autonomous eVTOL Maker EHang Says It’s on the Cusp of Type Certification

For all of the FAA’s recent efforts to promote advanced air mobility (AAM) services in American airspace and chip away at China’s growing influence on the industry, the agency and U.S. lawmakers may be disappointed by a recent piece of news: A Chinese company appears set to obtain the world’s first electric vertical takeoff and landing (eVTOL) type certification.

EHang, a Guangzhou-based manufacturer of autonomous eVTOL aircraft for passenger transport and tourism services, announced it has completed all planned tests and flights of its EH216-S two-seater in the last phase of demonstrating compliance of its technology.

The flight test regimen included a definitive final demonstration for the Civil Aviation Authority of China (CAAC), which eliminated the last obstacle on the aircraft’s path to type certification, according to the company. EHang expects to obtain that approval “soon” after it wraps up a handful of final procedures.

“This achievement marks a significant, unprecedented milestone in the global emerging eVTOL industry, underscoring our unwavering dedication and pioneering advantages,” said Huazhi Hu, founder, chairman, and CEO of EHang. “Additionally, this sets the stage for us to secure the type certificate soon and proceed with our endeavors to initiate commercial operations.”

The CAAC also approved EHang’s Unmanned Aircraft Cloud System (UACS) for trial operations, representing another key step toward the entry into service Hu alluded to. The system is expected to be an important component of the company’s operations and will help customers orchestrate multiple aircraft, manage airspace and flight plans, and more.

The two announcements represent a blow to U.S. eVTOL firms and aviation regulators that are hoping to be the first to launch AAM services in 2025. EHang, however, is expected to enter service as early as this year or next, starting with China and Japan. 

The company currently ranks fifth on SMG Consulting’s AAM Reality Index, which measures an AAM manufacturer’s likelihood of certifying their aircraft, entering service, and producing thousands of units per year. It’s the top AAM company looking to serve the tourism industry.

Certifying the EH216-S

The next step for EHang will be obtaining type certification for its eVTOL, a small, wingless, fully autonomous design unlike most others in development. By and large, manufacturers, such as Archer Aviation and Lilium, are building larger, winged models to be flown by an onboard pilot.

EH216-S will carry two passengers at low altitude on short- and medium-haul routes. It has a 485-pound payload and an 18.5 sm (16 nm) range when fully loaded. The aircraft cruises at around 62 mph (54 knots) and can hit a top speed of 80 mph (69.5 knots), making it slower than most models expected to enter service.

A coaxial dual-propeller architecture makes the design light and reduces the space and structural components required to install propellers and motors. Its eight foldable arms house 18 lift-and-thrust rotors. Notably, it lacks fixed wings, a staple of most eVTOL models.

EHang’s three core design philosophies for EH216-S are full redundancy, an autonomous pilot, and a centralized command and control center. In addition to redundant batteries, the eVTOL includes backups for all major flight components, multiple flight control systems, and a built-in fail-safe system that allows a remote pilot to take over in case of emergency.

Though it’s capable of flying entirely on its own, EH216-S uses 4G and 5G wireless transmission to communicate with a command and control center. As mentioned, the center lets remote pilots step in as needed, but it also monitors and displays real-time flight data such as battery level, altitude, speed, and position. It centralizes the routing, dispatch, and management of multiple flight routes and aircraft flying simultaneously, giving operators a firm grip on their activities.

The CAAC officially accepted EHang’s type certification application for EH216-S in January 2021. Over the past 30-plus months, the company has completed over 9,300 low-altitude tourism flight trials in 18 Chinese cities, including the mega-metropolises of Guangzhou and Shenzhen. It also completed Japan’s first passenger-carrying flight of an autonomous eVTOL in February.

EHang has tested the aircraft’s load, durability, reliability, and environmental impact, flying it under low and high temperatures and in high humidity, salt spray, and even typhoon conditions. It also evaluated batteries, electronics, software, the data link to the ground control station, and other components to demonstrate they meet CAAC airworthiness and safety standards.

EH216-S’s recent demonstration before CAAC marked the final milestone before it can achieve type certification.

“I believe the remaining procedures will be finished very soon before the official authorization of the type certificate,” said Hu. “It will pave the way for our commercial operations in the next stage.”

UACS Approval Adds Momentum

Cloud software has become a critical safeguard for the secure and efficient operation of unmanned aircraft. Just about every eVTOL manufacturer has some form of this technology, and EHang is no exception.

The company’s UACS manages airspace, aircraft, and flight plans and operators, including “cluster management” for the safe operation of multiple aircraft in the same airspace. Now, a CAAC letter of approval for trials signifies it meets China’s civil aviation standards. According to EHang, the tech will be a key component of service following type certification.

“From unmanned aerial vehicle systems to the UACS, as well as operating teams and service platforms, EHang has made comprehensive and sufficient preparation for the upcoming commercial operations after years of planning,” said Hu. “With EHang’s long-term accumulated advantages, we are confident and well positioned to embark on a new chapter of UAM operations with our partners.”

Hu indicated that favorable CAAC rulemaking and an array of partnership with city governments position the company well to integrate and operate its services when the time comes. 

The most recent of those partnerships is an agreement with the Bao’an District Government of Shenzhen to jointly develop urban air mobility use cases and systems, as well as routes for low-altitude demonstrations. The Bao’an District will provide support for EH216-S procurement, financial leasing, infrastructure construction, and low-altitude operations in Shenzhen.

The ultimate goal of the partnership is to turn the metropolis into a “national low-altitude economy development demonstration city.” EHang plans to establish its first Operation Demonstration Center there and to eventually launch aerial tourism and sightseeing services with its eVTOL. The partners hope to develop more than 10 routes by year’s end.

If all goes according to plan, EHang will beat Archer, Joby Aviation, Wisk Aero, and other U.S. rivals to market—albeit outside of the U.S. and European markets. While that’s only part of the battle, the company appears well positioned to capitalize on its early entry. 

According to SMG, it had just over 1,400 EH216-S orders as of June—that’s more than every AAM manufacturer besides Embraer’s Eve Air Mobility and the U.K.’s Vertical Aerospace, which is now contending with a prototype accident that threatens to further delay certification.

Like this story? We think you’ll also like the Future of FLYING newsletter sent every Thursday afternoon. Sign up now.

Mon, 21 Aug 2023 10:23:00 -0500 en-US text/html https://www.flyingmag.com/autonomous-evtol-maker-ehang-says-its-on-the-cusp-of-type-certification/
Killexams : Which Professional Do I Need for the Tax Calculation of a Roth Conversion? A CFP, Financial Advisor or Tax Preparer? No result found, try new keyword!Which professional do I need for the tax calculation of a Roth conversion? A CFP, financial advisor or tax preparer? I’ve reached out to tax preparers before but they seemed to have no idea what I was ... Tue, 22 Aug 2023 01:44:13 -0500 en-us text/html https://www.msn.com/ Killexams : Liquidia Corporation Reports Second Quarter 2023 Financial Results and Provides Corporate Update

MORRISVILLE, N.C., Aug. 10, 2023 (GLOBE NEWSWIRE) -- Liquidia Corporation (NASDAQ: LQDA) (Liquidia or the Company) today reported financial results for the second quarter ended June 30, 2023. The Company will host a webcast at 8:30 a.m. ET to discuss the financial results and provide a corporate update.

Dr. Roger Jeffs, Liquidia’s Chief Executive Officer, said: “This quarter saw Liquidia significantly advance our mission to become the leading inhaled treprostinil provider for pulmonary hypertension patients. Achievements of note include: 1) the affirmation by the U.S. Court of Appeals for the Federal Circuit (CAFC) that all claims of the No. 9,593,066 (‘066 patent) are invalid or not infringed, 2) the filing of an amendment to add PH-ILD to the YUTREPIA label, and 3) the license of L606 from Pharmosa Biopharm to develop and commercialize a sustained-release liposomal formulation of treprostinil for twice-daily nebulization. With these achievements in mind, we we will continue to prepare for a potential launch of YUTREPIA in the near future, both for PAH and subsequently PH-ILD.”

Corporate Updates

Advanced litigation with United Therapeutics. With the decision of the CAFC issued in July with respect to the Hatch-Waxman litigation between Liquidia and United Therapeutics Corporation (UTHR), only one of the three patents originally asserted against Liquidia in Hatch-Waxman litigation, U.S. Patent No. 10,716,793 (‘793 Patent), remains gating to final approval for YUTREPIA. In July 2022, the Patent Trial and Appeal Board (PTAB) found the ‘793 Patent to be unpatentable due to the existence of prior art as cited in the inter partes review filed by Liquidia. The PTAB then re-affirmed that decision in February 2023, and UTHR appealed the decision to the CAFC. Briefing in the appeal should be completed in fourth quarter 2023 and oral arguments will be heard on the next available date in the oral argument calendar, expected to be late fourth quarter 2023 to early 2024. Once argued, the CAFC could rule within a few days, in the case of summary affirmance, or within a few months after oral argument if a full written opinion is issued. If affirmed by the CAFC, the PTAB’s decision would override any earlier finding of infringement, and Liquidia would immediately seek final regulatory approval for YUTREPIA.

Submitted amendment to add PH-ILD indication to tentatively approved new drug application (NDA) for YUTREPIA. The U.S. Food and Drug Administration (FDA) had previously confirmed that the additional PH-ILD indication would not require any new clinical efficacy data. If approved, YUTREPIA would be indicated for the treatment of both PAH and PH-ILD, though final approval of the PH-ILD indication cannot occur until the new clinical investigation exclusivity granted to Tyvaso® expires on March 31, 2024. Concurrent with this amendment, Liquidia also submitted a paragraph IV certification indicating that the patents listed for Tyvaso® in the FDA’s publication commonly known as the Orange Book are invalid and/or not infringed by YUTREPIA. All Orange Book patents previously asserted by United Therapeutics have already been found to be invalid or not-infringed as decided by U.S. District Court, confirmed on appeal, or by the PTAB, pending the appeal described above.

Expanded pipeline through partnership with Pharmosa Biopharm to develop L606 in North America. In June, Liquidia acquired an exclusive license to develop and commercialize L606, an inhaled, sustained-release, liposomal formulation of treprostinil currently being evaluated in a Phase 3 open-label clinical trial for the treatment of PAH and PH-ILD. L606 offers potential advantages of (a) less frequent dose administrations, (b) more consistent drug exposure over 24 hours, including sleeping hours, (c) improved tolerability via lower peak exposure, and (d) improved portability via a modern, next-gen nebulizer. Liquidia will be responsible for development, regulatory and commercial activities of L606 in North America, while Pharmosa will manufacture clinical and commercial supplies of L606 and support Liquidia’s effort to establishing a redundant global supply chain. Pending input from the FDA from a planned Type B meeting later this year, Liquidia intends to initiate a Phase 3 randomized, placebo-controlled study in 2024 to evaluate treatment of PH-LD patients with L606.

Second Quarter 2023 Financial Results

Cash totaled $88.2 million as of June 30, 2023, compared to $93.3 million as of December 31, 2022.

Revenue was $4.8 million for the three months ended June 30, 2023, compared to $3.9 million for the three months ended June 30, 2022. Revenue related primarily to the promotion agreement between Liquidia PAH and Sandoz Inc, sharing profit derived from the sale of Sandoz’s substitutable generic treprostinil injection (Treprostinil Injection) in the United States. The increase of $0.9 million was primarily due to favorable gross-to-net chargeback and rebate adjustments.

Cost of revenue was $0.7 million for both the three months ended June 30, 2023, and 2022. Cost of revenue related to the promotion agreement as noted above.

Research and development expenses were $17.7 million for the three months ended June 30, 2023, compared to $5.2 million for the three months ended June 30, 2022. The increase of $12.5 million or 239% was primarily due to a $10.0 million upfront payment owed to Pharmosa for the exclusive license in North America to develop and commercialize L606. Additionally, there was a $2.2 million increase in expenses related to our YUTREPIA program driven by higher manufacturing and supply costs.

General and administrative expenses were $9.2 million for the three months ended June 30, 2023, compared to $6.9 million for the three months ended June 30, 2022. The increase of $2.3 million or 33% was primarily due to a $1.3 million increase in consulting and personnel expenses in preparation for the potential commercialization of YUTREPIA, a $0.7 million increase in legal fees related to our ongoing YUTREPIA-related litigation, and a $0.6 million increase in stock-based compensation expense.

Total other expense, net was $0.7 million for the three months ended June 30, 2023, compared with $0.5 million for the three months ended June 30, 2022. Liquidia incurred an increase of $0.9 million in interest expense attributable to the higher borrowings under the Revenue Interest Financing Agreement with HealthCare Royalty Partners as compared to balances outstanding under the Amended and Restated Loan and Security Agreement with Silicon Valley Bank, and a $0.7 million increase in interest income attributable to higher money market yields.

Net loss for the three months ended June 30, 2023, was $23.5 million, or $0.36 per basic and diluted share, compared to a net loss of $9.4 million, or $0.15 per basic and diluted share, for the three months ended June 30, 2022.  

About YUTREPIA™(treprostinil) inhalation powder

YUTREPIA is an investigational, inhaled dry powder formulation of treprostinil delivered through a convenient, low-resistance, palm-sized device. On November 5, 2021, the FDA issued a tentative approval for YUTREPIA, which is indicated for the treatment of pulmonary arterial hypertension (PAH) to Excellerate exercise ability in adult patients with New York Heart Association (NYHA) Functional Class II-III symptoms. The FDA has confirmed that YUTREPIA may add the indication to treat pulmonary hypertension with interstitial lung disease (PH-ILD) without additional clinical studies. YUTREPIA was designed using Liquidia’s PRINT® technology, which enables the development of drug particles that are precise and uniform in size, shape, and composition, and that are engineered for enhanced deposition in the lung following oral inhalation. Liquidia has completed INSPIRE, or Investigation of the Safety and Pharmacology of Dry Powder Inhalation of Treprostinil, an open-label, multi-center phase 3 clinical study of YUTREPIA in patients diagnosed with PAH who are naïve to inhaled treprostinil or who are transitioning from Tyvaso® (nebulized treprostinil). YUTREPIA was previously referred to as LIQ861 in investigational studies.

About L606 (liposomal treprostinil) inhalation suspension

L606 is an investigational, liposomal formulation of treprostinil administered twice-daily with a short-duration next-generation nebulizer. The L606 suspension uses Pharmosa Biopharma’s proprietary liposomal formulation to encapsulate treprostinil which can be released slowly at a controlled rate into the lung, enhancing drug exposure over an extended period of time and reducing local irritation of the upper respiratory tract. L606 is currently being evaluated in an open-label study in the United States for treatment of pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD) with a planned pivotal study for the treatment of PH-ILD.

About Treprostinil Injection

Treprostinil Injection is the first-to-file, fully substitutable generic treprostinil for parenteral administration. Treprostinil Injection contains the same active ingredient, same strengths, same dosage form and same inactive ingredients as Remodulin® (treprostinil) and is offered to patients and physicians with the same level of service and support, but at a lower price than the branded drug. Liquidia PAH promotes the appropriate use of Treprostinil Injection for the treatment of PAH in the United States in partnership with its commercial partner, who holds the Abbreviated New Drug Application (ANDA) with the FDA.

About pulmonary arterial hypertension (PAH)

Pulmonary arterial hypertension (PAH) is a rare, chronic, progressive disease caused by hardening and narrowing of the pulmonary arteries that can lead to right heart failure and eventually death. Currently, an estimated 45,000 patients are diagnosed and treated in the United States. There is currently no cure for PAH, so the goals of existing treatments are to alleviate symptoms, maintain or Excellerate functional class, delay disease progression, and Excellerate quality of life.

About pulmonary hypertension associated with interstitial lung disease (PH-ILD)

Pulmonary hypertension (PH) associated with interstitial lung disease (ILD) includes a diverse collection of up to 150 different pulmonary diseases, including interstitial pulmonary fibrosis, chronic hypersensitivity pneumonitis, connective tissue disease related ILD, and chronic pulmonary fibrosis with emphysema (CPFE) among others. Any level of PH in ILD patients is associated with poor 3-year survival. A current estimate of PH-ILD prevalence in the United States is greater than 60,000 patients, though population growth in many of these underlying ILD diseases is not yet known due to factors including underdiagnosis and lack of approved treatments until March 2021, when inhaled treprostinil was first approved for this indication.

About Liquidia Corporation

Liquidia Corporation is a biopharmaceutical company focused on the development and commercialization of products in pulmonary hypertension and other applications of its PRINT® Technology. The company operates through its two wholly owned subsidiaries, Liquidia Technologies, Inc. and Liquidia PAH, LLC. Liquidia Technologies has developed YUTREPIA™ (treprostinil) inhalation powder for the treatment of pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD). Liquidia Technologies is also developing L606, an investigational liposomal formulation of treprostinil administered twice-daily with a short-duration next-generation nebulizer, for use in North America. Liquidia PAH provides the commercialization for pharmaceutical products to treat pulmonary disease, such as generic Treprostinil Injection. For more information, please visit www.liquidia.com.

Tyvaso® is a registered trademarks of United Therapeutics Corporation.

Cautionary Statements Regarding Forward-Looking Statements

This press release may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical facts, including statements regarding our future results of operations and financial position, our strategic and financial initiatives, our business strategy and plans and our objectives for future operations, are forward-looking statements. Such forward-looking statements, including statements regarding clinical trials, clinical studies and other clinical work (including the funding therefor, anticipated patient enrollment, safety data, study data, trial outcomes, timing or associated costs), regulatory applications and related submission contents and timelines, including the potential for final FDA approval of the NDA for YUTREPIA, the timeline or outcome related to appeals arising from our patent litigation in the U.S. District Court for the District of Delaware or inter partes review proceedings conducted at the PTAB, the issuance of patents by the USPTO and our ability to execute on our strategic or financial initiatives, involve significant risks and uncertainties and actual results could differ materially from those expressed or implied herein. The favorable decisions of the PTAB in the IPR for the ’793 patent and of the Court and CAFC in the Hatch-Waxman litigation are not determinative of the outcome of any appeal of those decisions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “would,” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of risks discussed in our filings with the SEC, including the impact of the coronavirus (COVID-19) outbreak on our Company and our financial condition and results of operations, as well as a number of uncertainties and assumptions. Moreover, we operate in a very competitive and rapidly changing environment and our industry has inherent risks. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Nothing in this press release should be regarded as a representation by any person that these goals will be achieved, and we undertake no duty to update our goals or to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

Media & Investors:

Jason Adair

Chief Business Officer

919.328.4400

jason.adair@liquidia.com

Liquidia Corporation

Select Consolidated Balance Sheet Data

(in thousands)

    June 30,   December 31,
    2023   2022
Cash and cash equivalents   $ 88,196     $ 93,283  
Total assets   $ 121,597     $ 129,198  
Total liabilities   $ 60,940       38,776  
Accumulated deficit   $ (385,858 )     (350,596 )
Total stockholders’ equity   $ 60,657       90,422  

Liquidia Corporation

Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except share and per share amounts)

             
    Three Months Ended June 30,
    2023   2022
Revenue   $ 4,786     $ 3,918  
Costs and expenses:            
Cost of revenue     671       731  
Research and development     17,695       5,219  
General and administrative     9,245       6,938  
Total costs and expenses     27,611       12,888  
Loss from operations     (22,825 )     (8,970 )
Other income (expense):            
Interest income     734       65  
Interest expense     (1,426 )     (542 )
Loss on extinguishment of debt            
Total other expense, net     (692 )     (477 )
Net loss and comprehensive loss   $ (23,517 )   $ (9,447 )
Net loss per common share, basic and diluted   $ (0.36 )   $ (0.15 )
Weighted average common shares outstanding, basic and diluted     64,788,482       62,179,305  
Wed, 09 Aug 2023 22:01:00 -0500 en text/html https://www.bakersfield.com/ap/news/liquidia-corporation-reports-second-quarter-2023-financial-results-and-provides-corporate-update/article_25c1b4d9-df34-54fd-865b-0cb0889b9c45.html
Killexams : Sunlands Technology Group Announces Unaudited Second Quarter 2023 Financial Results

Q2 net revenues decreased by 5.2% year-over-year
Q2 gross billings (non-GAAP) decreased by 4.2% year-over-year
Q2 net income reached RMB173.9 million

BEIJING, Aug. 18, 2023 (GLOBE NEWSWIRE) -- Sunlands Technology Group STG ("Sunlands" or the "Company"), a leader in China's online post-secondary and professional education, today announced its unaudited financial results for the second quarter ended June 30, 2023.

Second Quarter 2023 Financial and Operational Snapshots

  • Net revenues were RMB526.4 million (US$72.6 million), representing a 5.2% decrease year-over-year.
  • Gross billings (non-GAAP) were RMB354.1 million (US$48.8 million), representing a 4.2% decrease year-over-year.
  • Gross profit was RMB466.9 million (US$64.4 million), representing a 0.7% increase year-over-year.
  • Net income was RMB173.9 million (US$24.0 million), as compared to RMB114.6 million in the second quarter of 2022.
  • Net income margin, defined as net income as a percentage of net revenues, increased to 33.0% from 20.6% in the second quarter of 2022.
  • New student enrollments1 were 154,209, representing a 27.7% increase year-over-year.
  • As of June 30, 2023, the Company's deferred revenue balance was RMB1,379.1 million (US$190.2 million).

_____________________________

1 New student enrollments for a given period refers to the total number of orders placed by students that newly enroll in at least one course during that period, including those students that enroll and then terminate their enrollment with us, excluding orders of our low-price courses. (In June 2019, we introduced low-price courses, including "mini courses" and "RMB1 courses," to strengthen our competitiveness and Excellerate customer experience. We offer such low-price courses mainly in the formats of recorded videos or short live streaming.)

"In Q2, our business showcased remarkable resilience and steady performance. Our second quarter net revenue reached RMB526.4 million, exceeding the high end of our guidance range. Net income experienced year-over-year increase, reaching RMB173.9 million in Q2, marking the ninth consecutive quarter of sustained profitability for our company. We maintain a positive outlook for the upcoming second half of the year," said Mr. Tongbo Liu, Chief Executive Officer of Sunlands.

"Through proactive reassessment of our long-term strategic focus and implementation of a series of endeavors, our pursuit of developing valuable interest courses has continued to yield remarkable results. Specifically, our revenue in the professional certification preparation, professional skills and interest courses has surged by 32.7% year-over-year, and we have witnessed a 36.8% increase in new student enrollments in this sector. The robust market demands have instilled us with confidence and we remain committed to seizing emerging opportunities actively, promoting innovation and improvement to meet the diverse needs of adult learners, and achieving sustained growth and development," concluded Mr. Liu.

Mr. Hangyu Li, Financial Controller of Sunlands, commented, "We are delighted to announce that this quarter was also an excellent quarter in financial perspective. Our gross profit margin reached 88.7%, an increase of 5.1 percentage points compared with the same period last year. Thanks to our persistent efforts in cost controls, the operating expenses decreased by RMB40.1 million, or 11.4%, year-over-year and our net income margin increased 12.4 percentage points compared to the same period last year. Looking forward, we will keep our commitment to delivering value to our stakeholders and maintaining a competitive edge in the industry."

Financial Results for the second quarter of 2023

Net Revenues

In the second quarter of 2023, net revenues decreased by 5.2% to RMB526.4 million (US$72.6 million) from RMB555.0 million in the second quarter of 2022. The decrease was mainly driven by the year-over-year decline in gross billings in 2023.

Cost of Revenues

Cost of revenues decreased by 34.8% to RMB59.5 million (US$8.2 million) in the second quarter of 2023 from RMB91.2 million in the second quarter of 2022. The decrease was primarily due to declined compensation expenses related to headcount reduction of our cost of revenues personnel, including teachers and mentors.

Gross Profit

Gross profit increased by 0.7% to RMB466.9 million (US$64.4 million) in the second quarter of 2023 from RMB463.8 million in the second quarter of 2022.

Operating Expenses

In the second quarter of 2023, operating expenses were RMB311.0 million (US$42.9 million), representing an 11.4% decrease from RMB351.2 million in the second quarter of 2022.

Sales and marketing expenses decreased by 7.9% to RMB270.0 million (US$37.2 million) in the second quarter of 2023 from RMB293.0 million in the second quarter of 2022. The decrease was mainly due to declined compensation expenses related to headcount reduction of our sales and marketing personnel.

General and administrative expenses decreased by 29.1% to RMB33.1 million (US$4.6 million) in the second quarter of 2023 from RMB46.6 million in the second quarter of 2022. The decrease was mainly due to declined rental expenses due to the early termination of a lease contract.

Product development expenses decreased by 31.0% to RMB8.0 million (US$1.1 million) in the second quarter of 2023 from RMB11.6 million in the second quarter of 2022. The decrease was mainly due to declined compensation expenses related to headcount reduction of our product development personnel.

Net Income

Net income for the second quarter of 2023 was RMB173.9 million (US$24.0 million), as compared to RMB114.6 million in the second quarter of 2022.

Basic and Diluted Net Income Per Share

Basic and diluted net income per share was RMB25.12 (US$3.46) in the second quarter of 2023.

Cash, Cash Equivalents, Restricted Cash and Short-term Investments

As of June 30, 2023, the Company had RMB749.5 million (US$103.4 million) of cash, cash equivalents and restricted cash and RMB63.2 million (US$8.7 million) of short-term investments, as compared to RMB757.4 million of cash, cash equivalents and restricted cash and RMB70.5 million of short-term investments as of December 31, 2022.

Deferred Revenue

As of June 30, 2023, the Company had a deferred revenue balance of RMB1,379.1 million (US$190.2 million), as compared to RMB1,690.9 million as of December 31, 2022.

Capital Expenditures

Capital expenditures were incurred primarily in connection with information technology ("IT") infrastructure equipment and leasehold improvements necessary to support the Company's operations. Capital expenditures were RMB1.0 million (US$0.1 million) in the second quarter of 2023, as compared to RMB0.3 million in the second quarter of 2022.

Share Repurchase

On December 6, 2021, the Company's board of directors authorized a share repurchase program, under which the Company may repurchase up to US$15.0 million of Class A ordinary shares in the form of ADSs over the next 24 months. As of August 17, 2023, the Company had repurchased an aggregate of 456,118 ADSs for approximately US$2.1 million under the share repurchase program.

Financial Results for the First Six Months of 2023

Net Revenues

In the first six months of 2023, net revenues decreased by 6.4% to RMB1,093.2 million (US$150.8 million) from RMB1,168.3 million in the first six months of 2022.

Cost of Revenues

Cost of revenues decreased by 32.1% to RMB127.6 million (US$17.6 million) in the first six months of 2023 from RMB188.0 million in the first six months of 2022.

Gross Profit

Gross profit decreased by 1.5% to RMB965.6 million (US$133.2 million) from RMB980.3 million in the first six months of 2022.

Operating Expenses

In the first six months of 2023, operating expenses were RMB631.8 million (US$87.1 million), representing a 9.4% decrease from RMB697.0 million in the first six months of 2022.

Sales and marketing expenses decreased by 7.9% to RMB541.4 million (US$74.7 million) in the first six months of 2023 from RMB588.0 million in the first six months of 2022.

General and administrative expenses decreased by 14.5% to RMB72.7 million (US$10.0 million) in the first six months of 2023 from RMB85.1 million in the first six months of 2022.

Product development expenses decreased by 26.2% to RMB17.7 million (US$2.4 million) in the first six months of 2023 from RMB23.9 million in the first six months of 2022.

Net Income

Net income for the first six months of 2023 was RMB354.0 million (US$48.8 million), compared with RMB294.0 million in the first six months of 2022.

Basic and Diluted Net Income Per Share

Basic and diluted net income per share was RMB51.13 (US$7.05) in the first six months of 2023, compared with RMB43.95 in the first six months of 2022.

Capital Expenditures

Capital expenditures were incurred primarily in connection with IT infrastructure equipment and leasehold improvements necessary to support the Company's operations. Capital expenditures were RMB4.8 million (US$0.7 million) in the first six months of 2023, compared with RMB1.2 million in the first six months of 2022.

Outlook

For the third quarter of 2023, Sunlands currently expects net revenues to be between RMB470 million to RMB490 million, which would represent a decrease of 15.0% to 18.4% year-over-year. The above outlook is based on the current market conditions and reflects the Company's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to substantial uncertainty.

Exchange Rate

The Company's business is primarily conducted in China and all revenues are denominated in Renminbi ("RMB"). This announcement contains currency conversions of RMB amounts into U.S. dollars ("US$") solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB7.2513 to US$1.00, the effective noon buying rate for June 30, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on June 30, 2023, or at any other rate.

Conference Call and Webcast

Sunlands' management team will host a conference call at 7:30 AM U.S. Eastern Time, (7:30 PM Beijing/Hong Kong time) on August 18, 2023, following the quarterly results announcement.

For participants who wish to join the call, please access the link provided below to complete online registration 15 minutes prior to the scheduled call start time. Upon registration, participants will receive details for the conference call, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call.

Registration Link:
https://register.vevent.com/register/BI2fa7774d43e34ce697c1d5bd158f825d 

Additionally, a live webcast and archive of the conference call will be available on the Investor Relations section of Sunlands' website at https://ir.sunlands.com/.

About Sunlands

Sunlands Technology Group STG ("Sunlands" or the "Company"), formerly known as Sunlands Online Education Group, is the leader in China's online post-secondary and professional education. With a one to many live streaming platform, Sunlands offers various degree- or diploma-oriented post-secondary courses as well as professional certification preparation, professional skills and interest courses. Students can access the Company's services either through PC or mobile applications. The Company's online platform cultivates a personalized, interactive learning environment by featuring a virtual learning community and a vast library of educational content offerings that adapt to the learning habits of its students. Sunlands offers a unique approach to education research and development that organizes subject content into Learning Outcome Trees, the Company's proprietary knowledge management system. Sunlands has a deep understanding of the educational needs of its prospective students and offers solutions that help them achieve their goals.

About Non-GAAP Financial Measures

We use gross billings, EBITDA, non-GAAP operating cost and expense, non-GAAP income from operations and Non-GAAP net income per share, each a non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes.

We define gross billings for a specific period as the total amount of cash received for the sale of course packages, net of the total amount of refunds paid in such period. Our management uses gross billings as a performance measurement because we generally bill our students for the entire course tuition at the time of sale of our course packages and recognize revenue proportionally over a period. EBITDA is defined as net income excluding depreciation and amortization, interest expense, interest income, and income tax expenses. We believe that gross billings and EBITDA provide valuable insight into the sales of our course packages and the performance of our business.

These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, their most directly comparable financial measure prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP measure has been provided in the tables included below. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP financial measures. As gross billings, EBITDA, operating cost and expenses excluding share-based compensation expenses, general and administrative expenses excluding share-based compensation expenses, sales and marketing expenses excluding share-based compensation expenses, product development expenses excluding share-based compensation expenses, non-GAAP net income exclude share-based compensation expenses, and basic and diluted net income per share excluding share-based compensation expenses have material limitations as an analytical metric and may not be calculated in the same manner by all companies, it may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider gross billings and EBITDA as a substitute for, or superior to, their respective most directly comparable financial measures prepared in accordance with GAAP. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.

Safe Harbor Statement

This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Sunlands may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about Sunlands' beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: Sunlands' goals and strategies; its expectations regarding demand for and market acceptance of its brand and services; its ability to retain and increase student enrollments; its ability to offer new courses and educational content; its ability to Excellerate teaching quality and students' learning results; its ability to Excellerate sales and marketing efficiency and effectiveness; its ability to engage, train and retain new faculty members; its future business development, results of operations and financial condition; its ability to maintain and Excellerate technology infrastructure necessary to operate its business; competition in the online education industry in China; relevant government policies and regulations relating to Sunlands' corporate structure, business and industry; and general economic and business condition in China Further information regarding these and other risks, uncertainties or factors is included in the Sunlands' filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Sunlands does not undertake any obligation to update such information, except as required under applicable law.

For investor and media enquiries, please contact:

Sunlands Technology Group
Investor Relations
Email: sl-ir@sunlands.com
SOURCE: Sunlands Technology Group

SUNLANDS TECHNOLOGY GROUP
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except for share and per share data, or otherwise noted)
 
    As of December 31,   As of June 30,
    2022   2023
    RMB   RMB   US$
ASSETS            
Current assets                        
Cash and cash equivalents     753,642       746,770       102,984  
Restricted cash     3,762       2,705       373  
Short-term investments     70,542       63,209       8,717  
Prepaid expenses and other current assets     98,272       116,157       16,019  
Deferred costs, current     42,886       23,238       3,205  
Total current assets     969,104       952,079       131,298  
Non-current assets                        
Property and equipment, net     813,783       799,804       110,298  
Intangible assets, net     1,509       1,784       246  
Right-of-use assets     274,643       139,732       19,270  
Deferred costs, non-current     78,839       72,789       10,038  
Long-term investments     73,513       66,419       9,160  
Deferred tax assets     26,799       20,270       2,795  
Other non-current assets     37,880       35,342       4,874  
Total non-current assets     1,306,966       1,136,140       156,681  
TOTAL ASSETS     2,276,070       2,088,219       287,979  
                         
LIABILITIES AND SHAREHOLDERS' DEFICIT                        
                         
LIABILITIES                        
Current liabilities                        
Accrued expenses and other current liabilities     436,339       367,034       50,616  
Deferred revenue, current     986,086       716,647       98,830  
Lease liabilities, current portion     17,065       7,394       1,020  
Long-term debt, current portion     38,654       38,654       5,331  
Total current liabilities     1,478,144       1,129,729       155,797  
SUNLANDS TECHNOLOGY GROUP
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS-continued
(Amounts in thousands, except for share and per share data, or otherwise noted)
 
    As of December 31,   As of June 30,
    2022   2023
    RMB   RMB   US$
Non-current liabilities                        
Deferred revenue, non-current     704,860       662,426       91,353  
Lease liabilities, non-current portion     316,844       161,215       22,233  
Deferred tax liabilities     5,984       4,555       628  
Other non-current liabilities     6,770       6,870       947  
Long-term debt, non-current portion     143,319       123,992       17,099  
Total non-current liabilities     1,177,777       959,058       132,260  
TOTAL LIABILITIES     2,655,921       2,088,787       288,057  
                         
SHAREHOLDERS' DEFICIT                        
Class A ordinary shares (par value of US$0.00005, 796,062,195 shares                        
authorized; 2,982,516 and 3,131,807 shares issued as of December 31, 2022                        
and June 30, 2023, respectively; 2,618,698 and 2,740,119 shares                        
outstanding as of December 31, 2022 and June 30, 2023, respectively)     1       1       -  
Class B ordinary shares (par value of US$0.00005, 826,389 shares                        
authorized; 826,389 and 826,389 shares issued and outstanding                        
as of December 31, 2022 and June 30, 2023, respectively)     -       -       -  
Class C ordinary shares (par value of US$0.00005, 203,111,416 shares                        
authorized; 3,481,353 and 3,332,062 shares issued and outstanding                        
as of December 31, 2022 and June 30, 2023, respectively)     1       1       -  
Treasury stock     -       -       -  
Accumulated deficit     (2,812,114 )     (2,458,125 )     (338,991 )
Additional paid-in capital     2,309,740       2,308,277       318,326  
Accumulated other comprehensive income     127,885       155,161       21,398  
Total Sunlands Technology Group shareholders' (deficit)/equity     (374,487 )     5,315       733  
Non-controlling interest     (5,364 )     (5,883 )     (811 )
TOTAL SHAREHOLDERS' DEFICIT     (379,851 )     (568 )     (78 )
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT     2,276,070       2,088,219       287,979  
                         
SUNLANDS TECHNOLOGY GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except for share and per share data, or otherwise noted)
 
    For the Three Months Ended June 30,
    2022   2023
    RMB   RMB   US$
Net revenues     554,991       526,353       72,587  
Cost of revenues     (91,237 )     (59,491 )     (8,204 )
Gross profit     463,754       466,862       64,383  
                         
Operating expenses                        
Sales and marketing expenses     (292,978 )     (269,969 )     (37,230 )
Product development expenses     (11,578 )     (7,992 )     (1,102 )
General and administrative expenses     (46,635 )     (33,085 )     (4,563 )
Total operating expenses     (351,191 )     (311,046 )     (42,895 )
Income from operations     112,563       155,816       21,488  
Interest income     3,842       7,561       1,043  
Interest expense     (2,552 )     (2,046 )     (282 )
Other income, net     4,750       8,171       1,127  
Gain on disposal of a subsidiary     -       247       34  
Income before income tax (expenses)/benefit
                       
and (loss)/gain from equity method investments     118,603       169,749       23,410  
Income tax (expenses)/benefit     (3,652 )     1,404       194  
(Loss)/gain from equity method investments     (391 )     2,730       376  
Net income     114,560       173,883       23,980  
                         
Less: Net loss attributable to non-controlling interest     (52 )     -       -  
Net income attributable to Sunlands Technology Group     114,612       173,883       23,980  
Net income per share attributable to ordinary shareholders of                        
Sunlands Technology Group:                        
Basic and diluted     16.89       25.12       3.46  
Weighted average shares used in calculating net income                        
per ordinary share:                        
Basic and diluted     6,784,685       6,921,304       6,921,304  
SUNLANDS TECHNOLOGY GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands)
 
    For the Three Months Ended June 30,
    2022   2023
    RMB   RMB   US$
Net income     114,560       173,883       23,980  
Other comprehensive income, net of tax effect of nil:                        
Change in cumulative foreign currency translation adjustments     31,807       29,603       4,082  
Total comprehensive income     146,367       203,486       28,062  
Less: comprehensive loss attributable to non-controlling interest     (52 )     -       -  
Comprehensive income attributable to Sunlands Technology Group     146,419       203,486       28,062  
SUNLANDS TECHNOLOGY GROUP
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands)
 
    For the Three Months Ended June 30,
    2022   2023
    RMB   RMB
Net revenues     554,991       526,353  
Less: other revenues     (31,088 )     (42,377 )
Add: tax and surcharges     17,209       9,779  
Add: ending deferred revenue     1,998,062       1,379,073  
Add: ending refund liability     199,028       107,319  
Less: beginning deferred revenue     (2,170,948 )     (1,513,896 )
Less: beginning refund liability     (197,494 )     (112,188 )
Gross billings (non-GAAP)     369,760       354,063  
                 
                 
                 
Net income     114,560       173,883  
Add: income tax expenses/(benefit)     3,652       (1,404 )
depreciation and amortization     9,274       7,677  
interest expense     2,552       2,046  
Less: interest income     (3,842 )     (7,561 )
EBITDA (non-GAAP)     126,196       174,641  
SUNLANDS TECHNOLOGY GROUP
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands, except for share and per share data, or otherwise noted)
 
    For the Three Months Ended June 30,
    2022   2023
    RMB   RMB
Cost of revenues     (91,237 )     (59,491 )
Less: Share-based compensation expenses in cost of revenues     -       -  
Non-GAAP cost of revenues     (91,237 )     (59,491 )
                 
Sales and marketing expenses     (292,978 )     (269,969 )
Less: Share-based compensation expenses in sales and marketing expenses     (4,088 )     -  
Non-GAAP sales and marketing expenses     (288,890 )     (269,969 )
                 
General and administrative expenses     (46,635 )     (33,085 )
Less: Share-based compensation expenses in general and administrative expenses     (2,725 )     -  
Non-GAAP general and administrative expenses     (43,910 )     (33,085 )
                 
Operating costs and expense     (442,428 )     (370,537 )
Less: Share-based compensation expenses     (6,813 )     -  
Non-GAAP operating costs and expense     (435,615 )     (370,537 )
                 
Income from operations     112,563       155,816  
Less: Share-based compensation expenses     (6,813 )     -  
Non-GAAP  income from operations     119,376       155,816  
                 
Net income attributable to Sunlands Technology Group     114,612       173,883  
Less: Share-based compensation expenses     (6,813 )     -  
Non-GAAP net income attributable to Sunlands Technology Group     121,425       173,883  
                 
Net income per share attributable to ordinary shareholders of                
Sunlands Technology Group:                
Basic and diluted     16.89       25.12  
Non-GAAP net income per share attributable to ordinary shareholders of                
Sunlands Technology Group:                
Basic and diluted     17.90       25.12  
                 
Weighted average shares used in calculating net income                
per ordinary share:                
Basic and diluted     6,784,685       6,921,304  
Weighted average shares used in calculating Non-GAAP net income                
per ordinary share:                
Basic and diluted     6,784,685       6,921,304  
SUNLANDS TECHNOLOGY GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except for share and per share data, or otherwise noted)
 
    For the Six Months Ended June 30,
    2022   2023
    RMB   RMB   US$
Net revenues     1,168,305       1,093,229       150,763  
Cost of revenues     (187,957 )     (127,646 )     (17,603 )
Gross profit     980,348       965,583       133,160  
                         
Operating expenses                        
Sales and marketing expenses     (587,975 )     (541,383 )     (74,660 )
Product development expenses     (23,933 )     (17,672 )     (2,437 )
General and administrative expenses     (85,095 )     (72,725 )     (10,029 )
Total operating expenses     (697,003 )     (631,780 )     (87,126 )
Income from operations     283,345       333,803       46,034  
Interest income     7,008       14,122       1,948  
Interest expense     (5,277 )     (4,170 )     (575 )
Other income, net     14,342       16,969       2,340  
Gain on disposal of a subsidiary     -       247       34  
Impairment loss on long-term investments     (500 )     -       -  
Income before income tax expenses                        
and loss from equity method investments     298,918       360,971       49,781  
Income tax expenses     (4,343 )     (6,327 )     (873 )
Loss from equity method investments     (604 )     (654 )     (90 )
Net income     293,971       353,990       48,818  
                         
Less: Net (loss)/income attributable to non-controlling interest     (1,279 )     1       -  
Net income attributable to Sunlands Technology Group     295,250       353,989       48,818  
Net income per share attributable to ordinary shareholders of                        
Sunlands Technology Group:                        
Basic and diluted     43.95       51.13       7.05  
Weighted average shares used in calculating net income                        
per ordinary share:                        
Basic and diluted     6,717,836       6,923,858       6,923,858  
                         
SUNLANDS TECHNOLOGY GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands)
    For the Six Months Ended June 30,
    2022   2023
    RMB   RMB   US$
Net income     293,971       353,990       48,818  
Other comprehensive income, net of tax effect of nil:                        
Change in cumulative foreign currency translation adjustments     29,188       27,276       3,762  
Total comprehensive income     323,159       381,266       52,580  
Less: comprehensive (loss)/income attributable to non-controlling interest     (1,279 )     1       -  
Comprehensive income attributable to Sunlands Technology Group     324,438       381,265       52,580  
SUNLANDS TECHNOLOGY GROUP
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands)
 
    For the Six Months Ended June 30,
    2022   2023
    RMB   RMB
Net revenues     1,168,305       1,093,229  
Less: other revenues     (57,995 )     (84,224 )
Add: tax and surcharges     44,421       27,774  
Add: ending deferred revenue     1,998,062       1,379,073  
Add: ending refund liability     199,028       107,319  
Less: beginning deferred revenue     (2,348,179 )     (1,690,946 )
Less: beginning refund liability     (243,236 )     (133,066 )
Gross billings (non-GAAP)     760,406       699,159  
                 
                 
                 
Net income     293,971       353,990  
Add: income tax expenses     4,343       6,327  
depreciation and amortization     19,161       15,267  
interest expense     5,277       4,170  
Less: interest income     (7,008 )     (14,122 )
EBITDA (non-GAAP)     315,744       365,632  
SUNLANDS TECHNOLOGY GROUP
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands, except for share and per share data, or otherwise noted)
 
    For the Six Months Ended June 30,
    2022   2023
    RMB   RMB
Cost of revenues     (187,957 )     (127,646 )
Less: Share-based compensation expenses in cost of revenues     (33 )     -  
Non-GAAP cost of revenues     (187,924 )     (127,646 )
                 
Sales and marketing expenses     (587,975 )     (541,383 )
Less: Share-based compensation expenses in sales and marketing expenses     (4,166 )     -  
Non-GAAP sales and marketing expenses     (583,809 )     (541,383 )
                 
General and administrative expenses     (85,095 )     (72,725 )
Less: Share-based compensation expenses in general and administrative expenses     (2,982 )     -  
Non-GAAP general and administrative expenses     (82,113 )     (72,725 )
                 
Operating costs and expense     (884,960 )     (759,426 )
Less: Share-based compensation expenses     (7,181 )     -  
Non-GAAP operating costs and expense     (877,779 )     (759,426 )
                 
Income from operations     283,345       333,803  
Less: Share-based compensation expenses     (7,181 )     -  
Non-GAAP income from operations     290,526       333,803  
                 
Net income attributable to Sunlands Technology Group     295,250       353,989  
Less: Share-based compensation expenses     (7,181 )     -  
Non-GAAP net income attributable to Sunlands Technology Group     302,431       353,989  
                 
Net income per share attributable to ordinary shareholders of                
Sunlands Technology Group:                
Basic and diluted     43.95       51.13  
Non-GAAP net income per share attributable to ordinary shareholders of                
Sunlands Technology Group:                
Basic and diluted     45.02       51.13  
                 
Weighted average shares used in calculating net income                
per ordinary share:                
Basic and diluted     6,717,836       6,923,858  
Weighted average shares used in calculating Non-GAAP net income                
per ordinary share:                
Basic and diluted     6,717,836       6,923,858  

 


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Thu, 17 Aug 2023 20:20:00 -0500 text/html https://www.benzinga.com/pressreleases/23/08/g33909892/sunlands-technology-group-announces-unaudited-second-quarter-2023-financial-results
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