Strategic Acquisitions and Market Headwinds
Conscious, also known as Begin Learning, acquired CodeSpark, KidPass, and Little Passports in 2021 to expand its educational software offerings for children ages 2 to 10. The acquisitions were funded with a combination of cash, earn-outs, common stock, and post-closing payments.
Despite raising “significant capital” and anticipating revenue growth, the company faced post-pandemic headwinds as consumer demand normalized. Shenoy cited rising customer acquisition costs, higher marketing expenses, and challenges in raising equity capital under shifting market conditions.
Creditors and Educational Mission
Conscious lists up to 1,000 creditors, including top unsecured claim holders Stella K. Ma ($6.9 million) and Amy Norman ($6.6 million), both tied to Little Passports’ post-closing notes.
The company provides educational programs for children focusing on social-emotional learning, reading, mathematics, coding, creativity, and enrichment, aiming to develop core 21st-century skills.
A representative for the debtor did not respond to requests for comment Thursday. Daniel Brogan of Bayard PA represents the filing.
The Conscious Content filed for Chapter 11 filing sets the stage for a significant restructuring aimed at stabilizing operations while maintaining its focus on educational technology for children.
