Quarterly report pursuant to Section 13 or 15(d)

Note 8 - Shareholders' Equity

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Note 8 - Shareholders' Equity
 6 Months Ended
Jul. 31, 2024
Notes to Financial Statements  
Equity [Text Block]

(8)    Shareholders’ Equity

 

Common Stock

 

As of July 31, 2024, the Company’s authorized share capital consisted of 18,750,000 shares of Class A common stock and 10,000,000 shares of preferred stock, with a par value $0.0001 each, and 8,504,829 shares of Class A common stock were issued and 8,205,052 shares were outstanding. As of July 31, 2024, the Company had no shares of preferred stock or Class C common stock outstanding. Except as required by law, holders of shares of Class C common stock are not entitled to vote any such shares.

 

Subject to applicable law, the Company may declare dividends to be paid ratably to holders of Class A common stock out of the Company’s assets that are legally available to be distributed as dividends in the discretion of the Company’s board of directors. Holders of Class C common stock are generally not entitled to dividends.

 

Warrants

 

Refer to Note 16 “Shareholders’ Equity” in our 2024 Form 10-K, for information related to the equity and liability-classified warrants.

 

Share Repurchase Authorization

 

On July 10, 2024, the Company’s board of directors authorized Skillsoft to repurchase up to $10 million of its Class A common stock, with an objective to manage potential dilution from future vesting of employee equity grants. The share repurchase authorization will terminate on July 11, 2028 and does not obligate the Company to purchase any minimum number of shares of Common Stock, and the authorization may be suspended, modified, or discontinued at any time without prior notice. As of July 31, 2024, no Class A common stock had been repurchased under the share repurchase authorization.

 

Accumulated Other Comprehensive Income (Loss)

 

Accumulated Other Comprehensive Income (Loss) associated with foreign currency translation adjustments consisted of the following (in thousands):

 

   

Three Months Ended July 31,

  
   

2024

    

2023

  
   

Before Tax

    

Income Tax

    

Net

    

Before Tax

    

Income Tax

    

Net

  

Balance as of beginning-of-period

   $ (15,937 )   $ —     $ (15,937 )   $ (13,919 )   $ —     $ (13,919 )

Translation adjustment

     64       —       64       496       —       496  

Balance as of end-of-period

   $ (15,873 )   $ —     $ (15,873 )   $ (13,423 )   $ —     $ (13,423 )

   

   

Six Months Ended July 31,

  
   

2024

    

2023

  
   

Before Tax

    

Income Tax

    

Net

    

Before Tax

    

Income Tax

    

Net

  

Balance as of beginning-of-period

   $ (13,050 )   $ —     $ (13,050 )   $ (14,794 )   $ —     $ (14,794 )

Translation adjustment

     (2,823 )     —       (2,823 )     1,371       —       1,371  

Balance as of end-of-period

   $ (15,873 )   $ —     $ (15,873 )   $ (13,423 )   $ —     $ (13,423 )