has increased 20% annually, outpacing the less than 1% average K-12 enrollment growth over the same period.”° K-12 Charter Schools and Enrollment (1995 to 2004) 4,000 1,000,000 % 3,000 750,000 3 = ® 2,000 500,000 & g 7 = 1,000 250,000 oo 0 : 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 gee Schools == Students Note: Number of students in 1999-2000 school year was estimated. Source: Harris Nesbitt, Education and Training, September 2005 and Charter Schoo! Leadership Council and Center for Education Reform. Supplementary Education Market. For parents who continue to enroll their children in traditional public and private schools, there is a growing demand for supplemental education services. According to the U.S. Department of Education, 31% of elementary school children, or more than 10 million students nationwide, are enrolled in after-school programs. According to Eduventures, the U.S. supplementary education market was estimated to be approximately $8.1 billion in 2003. Additionally, under the No Child Left Behind (NCLB) Act, some children in poorly performing schools will be eligible for taxpayer- financed supplemental educational services. These supplemental educational services can be provided by state-approved non-profit or for-profit entities as well as private schools and public schools (including public charter schools). More parents want to spend educational time with their children, but lack access to high quality supplemental material that is effective and integrated into a comprehensive plan that is easy for a parent to deliver and manage. The virtual school market is a relatively new area within the broader K-12 education market. As a result, there is a growing need for a high quality, trusted, national education offering for this demographic. Furthermore, parents are seeking much more robust and comprehensive ongoing assessments than is currently offered in the public schools, in order to assess their children’s progress both on a relative