• IaaS, SaaS & PaaS services contributed $5.46 million in cash inflows
• Negative operating cash flow due to prepaid inventory purchases
• Expects operating cash flow to improve in next quarter
• Collaborating with e-learning providers to promote content

Victor Group Holdings Ltd (ASX: VIG) has released its Appendix 4C cash flow report for the December 2024 quarter, providing an update on the key areas of activity during the period. The company's IaaS, SaaS & PaaS services contributed around $5.46 million in trade receivables collection, which was the sole cash inflow for the quarter. However, the company still recorded a negative operating cash flow due to the amount of prepaid inventory purchased for both software and online course packages. The management team estimates the operating cash flow will be improved in the next quarter. The cash and cash equivalents position of the consolidated entities at the end of this quarter is $842K, which is $292K more than the last quarter. As the group including its subsidiaries has no external debts, the management believes external fundraising is unnecessary at this stage. The company has also been collaborating with qualified and stable e-learning providers who are focused on IT vocational training and K12 extra-curriculum education, which has helped the company promote its e-learning content in the market. The management believes there will be further development in these areas, as the government aims to reduce the burden on students and increase the number of vocational trainees.

The management team estimates the operating cash flow will be improved in the next quarter. The company believes there will be further development in its e-learning and cloud education business, as the government aims to reduce the burden on students and increase the number of vocational trainees.