Ann: Change in substantial holding, page-12

Given its simple and predictable business model, it is not surprising KME has had positive operating cash flows {yellow bar above} for each of the last 6 years - I very doubt any other sub $15m m/cap company can lay claim to that.

Since the business has been refocussed (after the failed higher education experience - big blue bar write down in 2011), operating cash flows have been consistently trending higher.

Debt has been paid down, convertible notes converted,and investment into the online space has been self-funded.

The business has a lot of positive momentum behind it, so while you can never rule out a downgrade, the predictability of KME's earnings, and its business model, would suggest this to be unlikely.