Everybody Loves Languages Reports Financial Results for the Second Quarter Ended June 30, 2023

TORONTO, Aug. 29, 2023 /CNW/ - Everybody Loves Languages Corp. ("ELL")  (TSXV: ELL) (OTC: LMDCF) (FSE: LIMA), www.everybodyloveslanguages.com, an edtech language learning edutainment and content development company, announces its financial results for the second quarter ended June 30, 2023.  All figures are reported in Canadian Dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.

Q2 2023 Operational Highlights

• Online English Language Learning:
• Conducted two webinars as part of ELL's webinar series with hundreds of attendees.
• Finalized V.1 of ELL's AcadeMe Junior program:
• 8 Levels, 240 lesson interactive program using lessons built on movie scenes from Disney, Disney Pixar, Fox, Sony, and Marvel
• Project based learning, soft CLIL (STEAM related content) & CEFR
• Includes teacher access, reporting, and comprehensive lesson plans
• Integrated Planet Pop content from ELT Songs on the ELL platform.
• 348 Lessons, songs-based learning content (which generated 6 million views via ELT Songs)
• Aligned to Cambridge Young Learners curriculum.
• Utilized in-player student engagement.
• Certified 2 learning centers in Ecuador to act as Assessment Centers for ELL's Assessment Platform
• Entered into a partnership with ELT Songs to establish a joint venture 85% owned by ELL to be the global distributor of Sustainable Development Goals program based on the United Nations 17 SDG mandate.
• Content-Based English Language Learning:
• Continued to develop content for the latest revision of the PEP books.

Q2 2023 Financial Highlights

Second Quarter Ended June 30st	2023	2022
Revenue	$       967,747	$       980,664
Operating and development expenses	585,706	434,834
Income before amortization, share-based payments, depreciation, finance charges and taxes	382,041	545,830
Amortization, share-based payments, and depreciation	14,232	20,208
Finance charges, taxes, foreign exchange	(16,028)	(26,657)
Net profit	383,837	552,278
Total comprehensive income	$    390,668	$    536,024
Earnings per share	$          0.01	$          0.02

• Revenue for the second quarter ended June 30, 2023, totaled $967,747 as compared to $980,664 in Q2 2022.
• Operating and development expenses for the quarter ended June 30, 2023, totaled $585,706 compared to $434,834 in Q2 2022. Included as a reduction of selling, general and administrative expenses are government grants of $52,685 relating to the Company's publishing and software projects as compared to $107,721 for the same period in 2022. The Company invested $187,279 in product development in the second quarter of the fiscal year compared to the investment of $78,662 in Q2 2022.
• Net profit for the quarter ended June 30, 2023, was $383,837 or $0.01 earnings per share (basic) based on 35.6 million shares or $0.01 earning per share (diluted) based on 39 million shares as compared to a net profit of $552,278 for Q2 2022 or $0.02 earnings per share (basic) based on 35.5 million shares or $0.02 earnings per share (diluted) based on 36.1 million shares.
• Income before amortization, share-based payments, depreciation, finance charges and taxes was $382,041 in Q2 2023 compared to the income of $545,830 in Q2 2022.

Financial Highlights for the Six-Month Period Ended June 30, 2023

Six Month Period Ended June 30	2023	2022
Revenue	$ 1,214,794	$ 1,139,810
Operating and development expenses	1,217,811	846,233
Income (loss) before amortization, share-based payments, depreciation, finance charges and  taxes	(3,017)	293,577
Amortization, share-based payments and depreciation	28,654	53,305
Finance charges, taxes and foreign exchange	7,327	22,169
Net profit	(38,998)	218,102
Total comprehensive income (loss)	$   (31,660)	$    209,186
Earnings (Loss) per share	$       (0.00)	$          0.01

• Revenue for the six-month period ended June 30, 2023, totaled $1,214,794 compared to $1,139,810 for the same period in 2022.
• Operating and development expenses for the six-month period ended June 30, 2023, totaled $1,217,811 as compared to $846,233 for the same period in 2022. Included as a reduction of selling, general and administrative expenses are government grants of $104,481 relating to the Company's publishing and software projects. During 2022 same period, the Company recorded total grants of $175,097. The Company invested $331,973 in product development in 2023 compared to $134,167 in 2022 for the period ended June 30. The development cost is mainly attributed to the development of AcadeMe Junior and Planet Pop products.
• Net loss for the six-month period was $(38,998) as compared to net profit of $218,102 for the same period in 2022.
• Loss before amortization, share-based payments, depreciation, finance charges and taxes was $(3,017), as compared to $293,577 for the same period in 2022.

"Our commitment to improving and developing new products is coming to fruition with the releases of AcadeMe Junior, a Hollywood movie-based language learning and Planet Pop by ELT Songs. These solutions allow us to expand our sales into primary schools in our core markets. These products will be promoted during the coming months towards adoption in the following semesters. We are extremely excited by the prospects of both products as they introduce distinct competitive advantage and growth for the Company", said Gali Bar-Ziv, President & CEO of Everybody Loves Languages.

The unaudited condensed interim financial statements for the quarter ended June 30, 2023, and Management Discussion & Analysis are available at www.sedar.com.

About Everybody Loves Languages Corp. (TSX-V: ELL; OTC: LMDCF; FSE: LIMA):

Everybody Loves Languages Corp. is an edtech language-learning and content development company empowering language educators to easily transition from traditional teaching methods to digital learning by integrating education, edutainment, and technology.

The Company provides online and print-based solutions through two distinct business units: Everybody Loves Languages Inc. and Lingo Learning Inc. Everybody Loves Languages is a state-of-the-art technology platform that delivers personalized learning experiences in classrooms and online. Its programs provide innovative SaaS-based eLearning solutions, including online and offline content, a learning management system, assessments, real-time reports, speech recognition technology, and white-label tools. At the same time, Lingo Learning is the content development arm and co-publishes print-based English language learning materials in China. 

Everybody Loves Languages has established successful relationships with key government and industry organizations internationally, with a presence in LATAM and China, and continues to expand its product offerings and extend its market reach.

Follow Everybody Loves Languages on social media: 

Facebook: https://www.facebook.com/everybodyloveslanguages
Twitter:      twitter@elltechnologies
YouTube:  Everybody Loves Languages (ELL)
LinkedIn:   https://www.linkedin.com/company/elltechnologies

Portions of this press release may include "forward-looking statements" within the meaning of securities laws. These statements involve known and unknown risks, uncertainties or other factors that could cause actual results to differ materially from the results, performance, or expectations implied by these forward-looking statements. These statements are based on management's current expectations and involve certain risks and uncertainties.  Actual results may vary materially from management's expectations and projections and thus readers should not place undue reliance on forward-looking statements.  Everybody Loves Languages has tried to identify these forward-looking statements by using words such as "may," "should," "expect," "hope," "anticipate," "believe," "intend," "plan," "estimate" and similar expressions. Everybody Loves Languages' expectations depend upon general economic conditions, the continued and growth in demand for its products, retention of its key management and operating personnel, its need for and availability of additional capital and other uncontrollable or unknown factors. No assurance can be given that the actual results will follow the forward-looking statements. Except as otherwise required by securities laws, Everybody Loves Languages undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, changed circumstances or any other reason.  Certain factors that can affect the Company's ability to achieve projected results are described in the Company's filings with the Canadian securities regulators available on www.sedarplus.ca. 

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

SOURCE Everybody Loves Languages Corp.

Copyright 2023 Canada NewsWire