Online education publisher KNeoMedia Limited (ASX: KNM*)*has secured a second $US1 million deployment of ‘Connect All Kids’ education initiative into New York City public schools.
Connect All Kids’ is an education initiative for New York City public schools and is a collaboration between the National Association of Coloured People (NAACP), KNeoMedia and Dell Technologies.
Chief Executive Officer James Kellett said to date, US$2 million of funding commitments have been secured for ‘Connect All Kids’ deployments from New York City Council and its members.
Mr Kellett said KNeoMedia has been through an extensive qualification process with the New York City Department of Education to achieve Approved Supplier status which ensures all future payments from sales are processed more rapidly.
The company and its US subsidiary KneoWorld and NAACP have completed an all- encompassing probity and validation checking process with various NYC government departments to achieve this status and it is therefore pre-qualified for future sales. This is a very noteworthy development.
The NYC DOE is the channel through which all funding commitments must be processed and now that KNeoMedia and ‘Connect All Kids’ is recognised in the system, commitments by Council and its members will now be funded more rapidly.
KNeoMedia and NAACP will also progress payments for the backlog of previously announced sales of Seat Licences to schools and lock in new deployments being pursued more widely throughout New York State.
It is very encouraging to lock in a second deployment for the ‘Connect All Kids’ initiative in New York City. It is excellent validation of ‘Connect All Kids’ and reflects its appeal among students and teachers,” Mr Kellett said.
“The NYC DOE is a large and respected department tasked with running New York City’s public education system and managing an annual budget of over US$34 billion. They have a responsibility to ensure their suppliers and partners are credible and deliver the best outcomes for students, teachers and parents. As such, NYC DOE have quite rightly put KNeoMedia through a very rigorous process so we qualify as a trusted and responsible provider. It’s a critical funding gateway that we have established, and it is clearly a major value catalyst.
“We will provide shareholders with a more comprehensive overview of the NYC DOE qualification process and the value this brings to KNM. The Board is aware of the need to explain fully to shareholders why previously reported deployments and sales did not immediately translate into customer receipts.
“As well, we look forward to sharing more news on sales with the objective of establishing a predictable and stable revenue base. Together with NAACP and Dell Technologies, we are working on a broader roll-out of ‘Connect All Kids’ throughout New York State as our next growth step.”