Galaxy Next Generation, Inc. (OTCQB:GAXY), and its founders have been successfully innovating the education market for 50 years, harkening back to the days of typewriters, copiers, and calculators.  Gary LeCroy, and his father before him, have seen the evolution of learning needs, and develop products that meet the growing demands of both students and teachers. Galaxy sees 2020 as a pivotal year for the niche market they cater to and recognize their place in it.  Their recent acquisitions empower the mass fulfillment of immediate educational technology needs, and they plan to capitalize on the margins available to them.

Publicly traded education stocks, in general, have been tricky investments this millennium. Often they are the darlings of the market, and more often, are widely misunderstood.  The fact is that these companies have a regenerative cycle which loosely follows Moore’s Law as it relates to the semiconductor cycle. The EdTech sector also has a consistent influx of funds coming into the sector, backed by the government. As we enter this new decade of educating our students, we also find ourselves in a new era of technology-supported education, which may finally give teachers the ability to better educate students, due to efficiencies which will increase productivity in the classroom by utilizing the same technology all students use in their everyday lives.

With Galaxy’s recent acquisitions, they now sell a variety of products such as audio devices through the Interlock brand which ensures that every student can hear the entire session without the teacher straining or repeating. This is one simple change in communication that levels the playing field for all students in every classroom, regardless of impairment or teacher’s voice volume. 

If we think back to the days where students who could not see or hear sat conspicuously in the front row, 2020 technology balances this by providing audio clarity via products that Interlock spent years developing. The evolution of microphones for our teachers and collaborative panel technology will change the way our children learn.  Moreover, official government support via funding to integrate these new technologies into our education system is one of the more exciting developments of this new decade.

We spoke with Gary LeCroy the President at Galaxy, and he said, “ We feel like we understand the landscape for our business, the demand cycle for products is changing and so is legislation, we see a great opportunity ahead for our shareholders ”. 

Both LeCroy and the CFO,  Megan McGahee, see the demand for change happening in their niche market and are not sitting on their hands. The 2019 acquisition of Interlock Concepts and Ehlert Solutions Group, generated $4.4 million and $4.1 million of revenues, respectively in 2018 and 2019, positively reinforced Galaxy’s financial position. They also reduced combined operating losses by 60% for this measured period. McGahee went onto say, “We felt like these initial acquisitions allow us to generate excellent revenue and margins, and we believe there are other targeted acquisitions for us in the future ”.

It is clear from our discussion with Galaxy Next Generation, Inc. (OTCQB:GAXY) that this public company has big ideas, in a marketplace that needs big ideas. Mr. LeCroy and Ms.McGahee have a clear vision, combined with an acute understanding of the marketplace. They share a common goal of bridging technology with old-world education methods so our children can be smarter, and create a rising tide of educational technology in an advanced world. Galaxy knows that this is the time and watershed moment where the tools teachers have is equivalent to the way the students operate in our day to day world and can finally arrive in their classrooms. Our children, after all, will work and go on vacation in outer space.