UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO

RULE 13A-16 OR 15D-16 UNDER THE SECURITIES

EXCHANGE ACT OF 1934

 

For the month of September, 2023

 

Commission File Number: 001-41353

 

Genius Group Limited

(Translation of registrant’s name into English)

 

8 Amoy Street, #01-01

Singapore 049950

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F ☒ Form 40-F ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ________.

 

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ________.

 

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

 

 

 
 

 

Exhibit Index

 

Exhibit

 

99.1

Genius Group Announces 120.76% Revenue Growth for First Half of 2023

99.2

Genius Group Ltd. announces 120.76% revenue growth at First Half of 2023 based on the unaudited financials

 

 
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  GENIUS GROUP LIMITED
     
Date: September 28, 2023    
  By: /s/ Roger James Hamilton
  Name: Roger James Hamilton
  Title:

Chief Executive Officer and Chairman

(Principal Executive Officer)

 

 

 

Exhibit 99.1

 

 

Genius Group Announces 120.76% Revenue Growth for First Half of 2023

 

SINGAPORE, September 29, 2023 -  Genius Group Limited (NYSE American: GNS) (“Genius Group” or the “Company”), a leading entrepreneur edtech and education group, today announced its financial results for the first half of 2023.

 

“We are extremely pleased with the revenue growth we have achieved in the first six months of 2023, and anticipate reporting even stronger numbers for the second half of the year. We believe that the revenue growth we have experienced exceeds the industry as a whole, and underlines the demand for our unique entrepreneur curriculum and the strength of our Edtech business model.” said Roger Hamilton, CEO of Genius Group.

 

“With the launch of our Genie AI and Genie Metaversity, providing AI-driven personalized learning and virtual global classrooms, we are well positioned towards our long-term goal of impacting 100 million students globally with the 21st century skills they need to succeed.”

 

Financial Highlights for the First Half of 2023

 

  First half revenue of $11.8 million, 120.76% growth over first half of 2022. The revenue on a pro forma basis was $9.0 million, which excludes the spin off entity, Entrepreneur Resorts Ltd
  First half gross margin of $6.2 million or 52.58% compared to $2.2 million or 41.75% in first half of 2022. The pro forma gross margin was $4.3 million or 48.33% for the six months ending June 30, 2023
  First half adjusted EBITDA net loss of ($7.3) million, or ($0.22) per basic and diluted share compared to adjusted EBITDA net loss of ($2.0) million or ($0.11) per basic and diluted share in first half of 2022. First half 2023 adjusted EBITDA net loss of ($7.3) million, or ($0.22) per basic and diluted share on a pro forma basis
  First half net loss of ($10.8) million, or ($0.32) per basic and diluted share compared to ($3.5) million, or ($0.20) per basic and diluted share. On a pro forma basis, first half 2023 net loss was ($10.8) million, or ($0.32) per basic and diluted share
  $2.6 million cash and equivalents as of June 30, 2023, compared to $5.7 million as of December 31, 2022
  Adjusting 2023 full year guidance to $26.0 million to $29.0 million

 

“While the company has put significant focus on various corporate actions and incur significant increased costs in 2023 to protect our shareholders, we have done so while growing our student base and gross margins.” Said Erez Simha, CFO of Genius Group. “We remain committed to achieving our revenue growth targets while cutting costs and moving towards a cash positive operating model.”

 

Student and Partner Growth Highlights for the First Half of 2023

 

The Company exceeded its growth targets for students and partners:

 

  Students and users growth of 21%, from 4.5 million students at the end of 2022 to 5.4 million students and users at the end of June 2023, representing an annualized growth rate of 41%
  Paying students and users growth of 4%, from 171,919 students and users at the end of 2022 to 179,149 paying students and users at the end of June 2023, representing an annualized growth rate of 8%
  Partner growth of 1% from 14,760 at the end of 2022 to 14,942 in June 2023, representing an annualized growth rate of 2%

 

 

 

 

Strategic and Operational Highlights for the First Half of 2023

 

  Genius Group won Real Leaders Impact awards in January 2023
  Launched California Business School at UAV and Global Entrepreneurship Program at GeniusU in February 2023
  Strategic partnership with Swiss School of Business Management to launch international DBA in March 2023
  Launched the Alpha and Beta version of the Genie AI in April and June 2023 to assist students throughout their learning journey on GeniusU
  Launch of Genius Metaversity in June 2023, a virtual reality learning environmental in partnership with Vatom to hold educational courses and summits in the Metaverse
  Launch of $1m entrepreneur scholarship fund for students at the University of Antelope Valley with AI Entrepreneur Certification in June 2023
  Launched legal action against illegal trading activities in company shares
  Distributed $10 NFT Coupon to Genius Group investors in March 2023
  Spin off of Entrepreneur Resorts was approved by the Board of Directors in January 2023, approved by shareholders in May 2023 and approved by the Singapore High Court in August 2023.

 

Recent Strategic and Operational Highlights

 

  Appointment of Jennifer Brady as Head of Digital Marketing to lead marketing efforts across our subsidiaries
  Appointment of Jason Jaingue as Head of Global Product to enhance our customer and partner experiences across all of our products
  Genius Group Launches Genius Metaversity 2.0 in Partnership with Vatom and GeniusX
  Signed, executed and delivered a bridge note with an accredited investor in the face amount of $3.2 million, which has a $200,000 original issue discount, out of it $2M were received by the company in July and August
  Senior Secured Convertible Note signed in August 2022 with Alto Opportunity Master Fund, SPC – Segregated Master Portfolio B has been reduced to current balance of US$53,344 as of August 2023
  Dual listed Genius Group on Upstream on April 6, 2023 but delisting expected on or about September 29, 2023 due to complex securities regulations arising from dual listing on Upstream and NYSE and de minimis use of Upstream by GNS shareholders
  ERL was dual listed on Upstream in September 2023 and the share dividend distribution and spin off date is expected to be on 2 October 2023

 

Financial Guidance

 

Genius Group changes its 2023 financial guidance:

 

  2023 revenue of $26 million to $29 million compared to 2022 revenue of $18.2 million
  2023 net loss of ($15.5) million to ($17.0) million compared to 2022 net loss of ($55.3) million (before expected adjustments writing back contingent liabilities at year end, which will reduce net loss)
  2023 adjusted EBITDA net loss of ($10.0) million to ($12.0) million compared to 2022 adjusted EBITDA net loss of ($7.8) million
  Number of students and users between 5.7 million and 6.0 million, a 27% to 33% increase from 4.5 million students and users in 2022

 

Changes in the financial guidance are mainly driven by:

 

  The exclusion of Entrepreneur Resorts Ltd financial performance due to the spin off
  The delay of several new product launches, partnerships and acquisitions
  Restructuring of business model of most recent acquisition
  Significant increase in professional cost due to spin-off, investigation and audit

 

Other

 

The audit opinion of its audited consolidated financial statements for the fiscal year ended December 31, 2022, included in the Company’s Annual Form on 20F filed with the Securities and Exchange Commission on June 6, 2023, contained a going concern qualification. The Company’s unaudited condensed consolidated financial statements as of June 30, 2023 have been prepared on a going concern basis.

 

 

 

 

Webcast and Conference Call

 

Genius Group will host a live webcast to discuss the results Friday September 29 at 8:30 a.m. ET / 8:30 p.m. SGT. The webcast and supplemental information can be accessed on the investor relations section of the Genius Group website. An archive will be available after the conclusion of the live event and will remain available via the same link for 6 months.

 

Time: Friday, September 29, 2023, at 8:30 p.m. ET / 8:30 p.m. SGT

 

Webcast: Click on this link or go to the Investor Relations section of the Genius Group website to listen and view the slides.

 

Dial in: 877-407-0712 / +1 201 493 6716

 

About Genius Group

 

Genius Group is a leading entrepreneur Edtech and education group, with a mission to disrupt the current education model with a student-centered, life-long learning curriculum that prepares students with the leadership, entrepreneurial and life skills to succeed. Through its learning platform, GeniusU, the Genius Group has a member base of 5.4 million users in 200 countries, ranging from early age to 100.

 

For more information, please visit https://www.geniusgroup.net/.

 

Investor Notice

 

Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described in our most recent Annual Report on Form 20-F, as amended for the fiscal year ended December 31, 2022, filed with the SEC on June 6, 2023 and August 3, 2023. If any of these risks were to occur, our business, financial condition or results of operations would likely suffer. In that event, the value of our securities could decline, and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones facing us. Additional risks not presently known to us or that we currently deem immaterial may also impair our business operations. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. See “Forward-Looking Statements” below.

 

Forward-Looking Statements

 

Statements made in this press release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by the use of words such as “may,” “will,” “plan,” “should,” “expect,” “anticipate,” “estimate,” “continue,” or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading “Risk Factors” in the Company’s Annual Reports on Form 20-F, as may be supplemented or amended by the Company’s Reports of a Foreign Private Issuer on Form 6-K. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.

 

 
 

 

GENIUS GROUP LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(In US Dollars)

 

   As of
June 30, 2023
   As of
December 31, 2022
 
   (Unaudited)   (Audited) 
Assets          
Current Assets          
Cash and cash equivalents  $2,624,432   $5,720,569 
Restricted cash   -    11,108,816 
Accounts receivable, net   3,843,414    4,856,637 
Other receivables   88,594    120,304 
Income tax receivable   130,957    - 
Due from related parties   252,060    351,357 
Inventories   1,171,728    1,001,977 
Prepaid expenses and other current assets   1,238,196    1,090,787 
Total Current Assets   9,349,381    24,250,447 
Property and equipment, net   203,934    563,131 
Operating lease right-of-use asset   12,344,687    12,573,710 
Investments at fair value   44,413    29,071 
Other receivables   767,982    732,716 
Due from related parties   5,566,247    5,288,264 
Goodwill   31,677,406    31,688,887 
Intangible assets, net   15,421,531    16,107,293 
Other non-current assets   26,286    26,108 
Total Assets   75,401,867    91,259,627 
Liabilities and Stockholders’ Equity          
Current Liabilities          
Accounts payable   2,224,294    1,672,306 
Accrued expenses and other current liabilities   3,391,966    3,809,540 
Deferred revenue   5,050,855    6,391,993 
Operating lease liabilities – current portion   1,325,839    1,590,538 
Income tax payable   -    355,023 
Loans payable – current portion   330,108    334,391 
Loans payable – related parties – current portion   1,018,628    2,932,090 
Convertible debt obligations, current portion   3,773,790    5,752,328 
Short term debt   369,245    539,245 
Total Current Liabilities   17,484,725    23,377,454 
Due to related parties   1,812    1,729 
Operating lease liabilities – non-current portion   11,436,814    11,394,337 
Loans payable – non-current portion   412,121    428,025 
Convertible debt obligations, non-current portion   137,500    2,223,523 
Deferred tax liability   3,300,516    3,391,129 
Derivative liabilities   36,488,594    36,488,594 
Total Liabilities   69,262,082    77,304,791 
Commitments and Contingencies Stockholders’ Equity:          
Contributed capital   114,218,578    110,534,000 
Subscriptions receivable   (1,900,857)   (1,900,857)
Reserves   (33,697,262)   (32,933,714)
Accumulated deficit   (78,522,639)   (68,539,210)
Capital and reserves attributable to owners of Genius Group Ltd   (97,820)   7,160,219 
Non controlling interest   6,041,965    6,794,617 
Total Stockholders’ Equity   6,139,785    13,954,836 
Total Liabilities and Stockholders’ Equity   75,401,867    91,259,627 

 

 
 

 

GENIUS GROUP LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In US Dollars)

 

  

 

June 30, 2023

  

June 30, 2022

(Restated)

 
   (Unaudited)   (Unaudited) 
Revenue  $11,795,714   $5,343,247 
Cost of revenue   (5,593,340)   (3,112,654)
Gross profit   6,202,374    2,230,593 
Operating (Expenses) Income          
General and administrative   (13,672,668)   (5,249,054)
Depreciation and amortization   (919,568)   (178,807)
Other operating income   1,213    166,001 
Legal expenses   (776,867)   - 
Loss from foreign currency transactions   2,425    58,759 
Total operating expenses   (15,365,465)   (5,203,101)
Loss from Operations   (9,163,091)   (2,972,508)
(Expense) Income          
Interest expense, net   (1,999,361)   (99,298)
Impairment loss   -    (480,372)
Other expense   (5,227)   - 
Other income   68,311    30,713 
Total Other Expense   (1,936,277)   (548,957)
Loss Before Income Tax   (11,099,368)   (3,521,465)
Income Tax Benefit   324,666    24,238 
Net Loss   (10,774,702)   (3,497,227)
Other comprehensive income:          
Foreign currency translation   (599,818)   (69,375)
Total Comprehensive Loss   (11,374,520)   (3,566,602)
Total Comprehensive Loss is attributable to:          
Owners of Genius Group Ltd   (10,746,977)   (3,420,929)
Non controlling interest   (627,543)   (145,673)
Total Comprehensive Loss   (11,374,520)   (3,566,602)
Weighted-average number of shares outstanding, basic and diluted   33,668,483    17,794,634 
Basic and diluted loss per share from continuing operations   (0.32)   (0.20)

 

 
 

 

GENIUS GROUP LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In US Dollars)

 

   For the Six months Ended 
   June 30, 2023   June 30, 2022 
   (Unaudited)   (Unaudited) 
Cash Flows from Operating Activities          
Net loss  $(10,774,701)  $(3,497,227)
Adjustments to reconcile net loss to net cash used in operating activities:          
Stock-based compensation   402,565    150,317 
Depreciation and amortization   1,208,772    835,757 
Provision for interest expense   1,277,162     
Provision for doubtful accounts   170,318     
Deferred income taxes       (29,679)
Impairment loss       480,372 
Gain on foreign exchange transactions   (2,425)   (58,759)
Interest expense on lease liabilities   444,553    58,026 
Changes in operating assets and liabilities:          
Accounts receivable   842,905    (480,438)
Other receivable   (3,556)    
Prepaid expenses and other current assets   (147,408)   (1,840,348)
Inventory   (169,751)   (3,651)
Accounts payable   551,988    430,633 
Accrued expenses and other current liabilities   (417,574)   (609,406)
Deferred revenue   (1,341,138)   82,841 
Deferred tax liability   (90,613)    
Income tax payable   (485,980)    
Other non-current asset   178     
Total adjustments   2,239,996    (984,335)
Net Cash Used in Operating Activities   (8,534,705)   (4,481,562)
Cash Flows from Investing Activities          
Internally developed software   (322,419)   (313,876)
Purchase of equipment   (111,151)   (79,455)
Acquisitions   (2,299,231)   (2,116,456)
Deposit on investment in UAV        (6,604,194)
Purchase of investment   (20,000)   (80,514)
Net Cash Used in Investing Activities   (2,752,801)   (9,194,496)
Cash Flows from Financing Activities          
Amount due to/from related party, net   726,648    (338,280)
Proceeds from IPO, net        18,060,447 
Proceeds from convertible debt, net of issuance costs   8,923,994    - 
Proceeds from equity issuances       2,605,215 
Issuance from convertible debt       (147,582)
Lease liabilities   (639,096)   (306,811)
Repayment of loan   (170,000)   (192,465)
Net Cash Provided by Financing Activities   8,841,547    19,680,524 
Effect of Exchange Rate Changes on Cash   (650,096)   (212,817)
Net (Decrease) Increase in Cash   (3,096,137)   5,791,649 
Cash – Beginning of year   5,720,569    1,784,938 
Cash – End of period   2,624,432    7,576,587 

 

 
 

 

Summary Combined Consolidated Financial Data

 

  

Unaudited Financials Six Months Ended

(USD 000’s)

   Audited Financials
Year Ended
(USD 000’s)
 
Summary Income Data:  June 30,
2023
  

June 30,
2022

(Restated)

   December 31,
2022
   December 31,
2021
 
Sales   11,796    5,343    18,194    8,295 
Cost of goods sold   (5,593)   (3,112)   (9,555)   (5,537)
Gross profit   6,203    2,231    8,639    2,757 
Other Operating Income   4    225    280    324 
Operating Expenses   (15,639)   (5,428)   (50,502)   (7,250)
Operating Loss   (9,162)   (2,972)   (41,583)   (4,168)
Other income   68    31    419    - 
Other Expense   (2,005)   (580)   (15,151)   (450)
Net Loss Before Tax   (11,099)   (3,521)   (56,315)   (4,618)
Tax Expense   325    24    1,064    129 
Net Loss After Tax   (10,774)   (3,497)   (55,252)   (4,489)
Other Comprehensive Income   (600)   (70)   (1,045)   230 
Total Loss   (11,374)   (3,567)   (56,297)   (4,259)
Net income per share, basic and diluted   (0.32)   (0.20)   (2.44)   (0.28)
Weighted-average number of shares outstanding, basic and diluted   33,668,483    17,794,634    22,634,366    16,155,812 

 

   Unaudited Financials
Six Months Ended,
(USD 000’s)
   Audited Financials Year Ended
(USD 000’s)
 
   June 30,
2023
   December 31,
2022
   December 31,
2021
 
Summary Balance Sheet Data:               
Total current assets   9,350    24,251    6,496 
Total non-current assets   66,052    67,009    11,099 
Total Assets   75,402    91,260    17,595 
Total current liabilities   17,486    23,378    7,140 
Total non-current liabilities   51,776    53,927    2,469 
Total Liabilities   69,262    77,305    9,609 
Total Shareholders’ Equity   6,140    13,955    7,986 
Total Liabilities and Shareholders’ Equity   75,402    91,260    17,595 

 

 
 

 

Pro Forma Financials

 

To provide an accurate discussion and analysis of financial condition and results of operation, the financial reports provided and discussed below are grouped in the following two sections:

 

Condensed financials for the Group including acquired companies results for acquisitions closed before June 30th 2023: Audited financials provided for the financial years ended December 31, 2022 and 2021 and unaudited condensed financials provided for the six-month period ended June 30, 2023 and June 30, 2022.

 

Pro forma financials for Genius Group (The full Group including the Group and all Acquisitions YTD): Unaudited pro forma financials provided for the six-month period ended June 30, 2023 for the full Group, including all the acquired companies YTD as if they were operating as one during these periods and include additional two acquisitions: University of Antelope Valley (acquired July 2022) and Revealed Film (acquired October 2022) and excluding Entrepreneur Resorts Ltd as spin off entity

 

  

Genius Group Unaudited Pro forma

Six Months Ended June 30, 2023

 
   Unaudited Financials   Entrepreneur Resorts   Acquisitions   Pro forma Financials 
   (USD 000’s)   (USD 000’s)   (USD 000’s)   (USD 000’s) 
Sales   11,796    (2,834)           -    8,962 
Cost of goods sold   (5,593)   963    -    (4,631)
Gross profit   6,203    (1,871)   -    4,331 
Other Operating Income   4    3    -    7 
Operating Expenses   (15,639)   1,613    -    (13,756)
Operating Loss from the continuing operations   (9,162)   255    -    (9,418)

 

  

Genius Group Unaudited Pro forma

Six Months Ended June 30, 2023

 
   Unaudited Financials   Entrepreneur Resorts   Pro forma
Adjustment
   Pro forma Financials 
   (USD 000’s)   (USD 000’s)   (USD 000’s)   (USD 000’s) 
Summary Balance Sheet Data:                                
Total current assets   9,350    3,229    -    12,580 
Total non-current assets   66,052    (946)   -    65,106 
Total Assets   75,402    2,283    -    77,686 
Total current liabilities   17,486    (2,527)   -    14,959 
Total non-current liabilities   51,776    (2,266)   -    49,511 
Total Liabilities   69,262    (4,793)   -    64,470 
Total Stockholders’ Equity   6,140    7,076    -    13,216 
Total Liabilities and Shareholders’ Equity   75,402    2,283    -    77,686 

 

 
 

 

Non-IFRS Financial Measure

 

We have included Adjusted EBITDA because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business.

 

We calculate Adjusted EBITDA as net profit / loss for the period plus income taxes and social contribution plus / minus finance revenue /expense result plus depreciation and amortization plus impairments plus revaluation adjustment of contingent liabilities plus share-based compensation expenses plus bad debt provision.

 

Derived from Financial Statements

 

  

Genius Group Unaudited Financials Six Months Ended

(USD 000’s)

   Group Audited Financials
Year Ended
(USD 000’s)
 
   June 30,
2023
   June 30,
2022
   December 31,
2022
   December 31,
2021
 
Net Income (Loss)   (10,775)   (3,497)   (55,252)   (4,489)
Tax Expense   (325)   (24)   (1,064)   129 
Interest Expense, net   1,999    99    1,312    450 
Depreciation and Amortization   1,209    836    2,351    1,575 
Impairments   0    480    28,246    0 
Revaluation adjustment of Contingent
Liabilities
   0    0    13,838    0 
Stock Based Compensation   403    150    1,309    294 
Bad Debt Provision   170    0    1,509    (39)
Adjusted EBITDA   (7,318)   (1,956)   (7,750)   (2,338)

 

Pro forma Financials

 

  

Genius Group Unaudited Pro forma

Six Months Ended June 30, 2023

 
   Unaudited Financials   Entrepreneur Resorts   Acquisitions   Pro forma Financials 
   (USD 000’s)   (USD 000’s)   (USD 000’s)   (USD 000’s) 
Net Loss   (10,775)   -               -    (10,775)
Tax Benefits   (325)   -    -    (325)
Interest Expense, net   1,999    -    -    1,999 
Depreciation and Amortization   1,209    (30)   -    1,179 
Impairment   -    -    -    - 
Revaluation Adjustment of Contingent Liabilities   -    -    -    - 
Stock Based Compensation   403         -    403 
Bad Debt Provision   170         -    170 
Adjusted EBITDA   (7,318)   (30)   -    (7,348)

 

Contacts

 

Investors:

Flora Hewitt, Vice President of Investor Relations and Mergers and Acquisitions

Email: investor@geniusgroup.net

 

Media Contacts: Adia PR

Email: gns@adiapr.co.uk

US Investors:

Dave Gentry, RedChip Companies Inc

1-800-RED-CHIP

GNS@redchip.com

 

 

 

 

 

Exhibit 99.2

 

Genius Group Ltd. announces 120.76% revenue growth at First Half of 2023 based on the unaudited financials

 

  First half revenue of $11.8 million, 120.76% growth over first half of 2022. The revenue on a pro forma basis was $9.0 million, which excludes the spin off entity, Entrepreneur Resorts Ltd.
     
  First half gross margin of $6.2 million or 52.58% compared to $2.2 million or 41.75% in first half of 2022. The pro forma gross margin was $4.3 million or 48.33% for the six months ending June 30, 2023.
     
  First half adjusted EBITDA net loss of ($7.3) million, or ($0.22) per basic and diluted share compared to adjusted EBITDA net loss of ($2.0) million or ($0.11) per basic and diluted share in first half of 2022. First half 2023 adjusted EBITDA net loss of ($7.3) million, or ($0.22) per basic and diluted share on a pro forma basis.
     
  First half net loss of ($10.8) million, or ($0.32) per basic and diluted share compared to ($3.5) million, or ($0.20) per basic and diluted share. On a pro forma basis, first half 2023 net loss was ($10.8) million, or ($0.32) per basic and diluted share.
     
  $2.6 million cash and equivalents as of June 30, 2023, compared to $5.7 million as of December 31, 2022.
     
  Adjusting 2023 full year guidance to $26.0 million to $29.0 million.

 

The unaudited financials are prepared in accordance with the standard financial statement requirement without including notes to financials. The unaudited financial statements are not reviewed nor have any other services been performed by the Company auditor. The pro forma revenue excludes the spin off entity, Entrepreneur Resorts Limited.

 

Singapore—(BUSINESS WIRE)— Genius Group Ltd. (NYSE American: GNS), a world-leading entrepreneur Edtech and education group, today announced financial results for the first half of 2023.

 

Summary - First Half 2023 Financial Results Compared to First Half 2022:

 

  First half revenue of $11.8 million, 120.76% growth over first half of 2022. The revenue on a pro forma basis was $9.0 million, which excludes the spin off entity, Entrepreneur Resorts Ltd.
     
  First half gross margin of $6.2 million or 52.58% compared to $2.2 million or 41.75% in first half of 2022. The pro forma gross margin was $4.3 million or 48.33% for the six months ending June 30, 2023.
     
  First half adjusted EBITDA net loss of ($7.3) million, or ($0.22) per basic and diluted share compared to adjusted EBITDA net loss of ($2.0) million or ($0.11) per basic and diluted share in first half of 2022. First half 2023 adjusted EBITDA net loss of ($7.3) million, or ($0.22) per basic and diluted share on a pro forma basis.
     
  First half net loss of ($10.8) million, or ($0.32) per basic and diluted share compared to ($3.5) million, or ($0.20) per basic and diluted share. On a pro forma basis, first half 2023 net loss was ($10.8) million, or ($0.32) per basic and diluted share.
     
  $2.6 million cash and equivalents as of June 30, 2023, compared to $5.7 million as of December 31, 2022.
     
  Adjusting 2023 full year guidance to $26.0 million to $29.0 million.

 

 

 

 

Key Business Metrics

 

We monitor the key business metrics and non-IFRS financial measures set forth below to help us evaluate our business and growth trends, set growth targets and budgets, and measure the effectiveness of our sales and marketing efforts. These key business metrics and non-IFRS financial measures are presented for supplemental informational purposes only, are not a substitute for IFRS financial measures, and may differ from similarly titled metrics or measures presented by other companies. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Key Business Metrics and Non-IFRS Financial Measures” for detailed descriptions of the measures and metrics shown below.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

Overview

 

We believe that we are a world leading entrepreneur Edtech and education group based on student numbers, with a student base of 3.34 million students at the end of June 30, 2023, and an average of 8,500 new students joining our GeniusU platform each week in 2023. Our mission is to disrupt the current education model with a personalized, student-centered, AI based lifelong learning curriculum that prepares students with the leadership, entrepreneurial and life skills to succeed in today’s market.

 

Of the 3.34 million students on GeniusU at June 30, 2023, 3.3 million were free students, 45,038 had upgraded to paying students and 13,165 had upgraded to become faculty or partners. Total students grew by 15% annually with 232,042 new students joining in the first half of the 2023, paying students grew by 9% annually and our faculty and partners grew by 2% annually as we released a range of new tools on GeniusU for teachers, trainers and mentors to create their own events, courses and products. These annual growth rates are in line with our historic annual growth rates for GeniusU, with our conversion rates from free to paying students remaining at 1% and our attrition level of members and partners remaining below 5%.

 

Our financial growth model is based on a combination of four main factors:

 

  1. Inorganic growth by acquisition of education companies that add valuable courses, content, accreditation, campuses, faculty and students to our Group.
     
  2. Growth of our Edtech platform GeniusU as a result of converting the content, accreditation, faculty and students of our acquisition companies into online courses that can be delivered globally.
     
  3. Additional internal growth of GeniusU, with its digital curriculum and global student base, via wholly owned curriculum, hosting partners, and their content.
     
  4. Accelerated growth of each of our companies within the Group, as a result of expanding the Edtech business model within each company and gaining the benefit of the AI, digital marketing, customer intelligence and global community that GeniusU provides.

 

To provide an accurate discussion and analysis of financial condition and results of operation, the financial reports provided and discussed below are grouped in the following two sections:

 

  Condensed financials for the Group including acquired companies results for acquisitions closed before June 30th 2023: Audited financials provided for the financial years ended December 31, 2022 and 2021 and unaudited condensed financials provided for the six-month period ended June 30, 2023 and June 30, 2022.
     
  Pro forma financials for Genius Group (The full Group including the Group and all Acquisitions YTD): Unaudited pro forma financials provided for the six-month period ended June 30, 2023 for the full Group, including all the acquired companies YTD as if they were operating as one during these periods and include additional two acquisitions: University of Antelope Valley (acquired July 2022) and Revealed Film (acquired October 2022) and excluding Entrepreneur Resorts Ltd as a spin off entity.

 

 

 

 

Results of Operations

 

Period Ended June 30, 2023, Compared to Period Ended June 30, 2022

 

The below discussion and analysis are for the unaudited financials of June 30, 2023 compared to June 30, 2022. For simplicity, any reference to the first half of 2023 is with reference to the 6 months financials as of and for the period ended June 30, 2023, and any reference to the first half of 2022 is with reference to the 6 months financials as of and for the period ended June 30, 2022.

 

Discussion and analysis are also included for the first half of 2023 pro forma financials and 2022 actual data for Genius Group, including the unaudited financials for the Group, and the financials all of the YTD Acquisitions (including the financials of University of Antelope Valley, Property Investors Network, Education Angels, E-Squared and Revealed Films) and excluding Entrepreneur Resorts Ltd.

 

For clarity, each section below has separate paragraphs with discussion and analysis first for the Group unaudited financials, followed by discussion and analysis for the Genius Group pro forma financials (including the Acquisitions).

 

Revenue: Our Group revenues increased from $5.3 million in first half of 2022 to $11.8 million in the first half of 2023. This was driven by an increase of 159.54% in our Education Revenue from $3.45 million to $8.96 million. The campus revenue increased by 50% from $1.89 million in first half of 2022 to $2.83 million in first half of 2023. This was due to increase in demand due to capacity expansion and operations coming back to normal after COVID and the acquisition of entities.

 

Our pro forma revenue in 2023 were $9.0 million in the first half of 2023.

 

Our two main revenue segments are Education Revenue and Campus Revenue. Education Revenue consists of Digital Education Revenue, where the courses are delivered virtually on GeniusU, and In-Person Education Revenue, where the courses are delivered to our students with the aid of our faculty in-person. Campus Revenue consists of revenue we generate from our locations through accommodation, food and beverage charges. The following table shows the breakdown of this revenue into segments for both Genius Group, on a pro forma basis and unaudited basis:

 

   Genius Group Unaudited Financials Six Months Ended (USD 000’s)   Group Proforma Unaudited Financials Six Months Ended (USD 000’s)   Group Audited Financials Year Ended (USD 000’s) 
   June 30,
2023
   June 30, 2022
(Restated)
   June 30,
2023
   December 31,
2022
   December 31,
2021
 
Digital Education Revenue    4,990    3,282    4,990    8,012    5,194 
In-Person Education Revenue    3,972    170    3,972    5,544    0 
Total Education Revenue     8,962    3,452    8,962    13,556    5,194 
Campus Revenue    2,834    1,891    -    4,638    3,101 
                          
Total Revenue     11,796    5,343    8,962    18,194    8,295 

 

Cost of Revenue: The Group’s cost of revenue was $5.59 million in first half of 2023 with $6.2 million in gross profit, giving us a 52.58% gross margin, compared to $3.11 million in first half of 2022 with $2.23 million in gross profit. Our cost of revenue declined in percentage terms in 2023 as a result of improved results from our campus business and the acquisitions which has a higher gross margin. The marketing spend and the investment on the development asset in first half of 2023 is consistent in comparison to the first half of 2022. To date we have been maintaining a balance between growth and a positive gross margin in which we are not being overly aggressive in our marketing spend and this is reflected in our current gross margin. By owning the majority of our own curriculum and courses across all companies and acquisitions, we are focused on maintaining a low cost of content and a high gross margin. The cost of revenue that we do incur is mainly our customer acquisition costs and our faculty costs.

 

In the first half of 2023, the pro forma cost of revenue was $4.63 million, giving us a 48.33% gross margin.

 

Operating Expenses: The Group had a net operating expense of $15.36 million in the first half of 2023 compared to $5.68 million in first half of 2022. Approximately 60% of our operating expense is our staff costs, with the remaining in development costs, marketing, rental, legal and general expenses. The increase in our operating expenses is the result of the growth in our operations, acquisition of companies, legal and professional expenses in our listed company. As with our cost of goods sold, historically we have been managing our overhead to maintain a sustainable growth rate, in order that additional funds raised may be invested largely in acquisitions.

 

In the first half of 2023, the pro forma operating expense was $13.75m.

 

Non-IFRS Financial Measure — Adjusted EBITDA: We have included Adjusted EBITDA because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business.

 

We calculate Adjusted EBITDA as net profit / loss for the period plus income taxes and social contribution plus / minus finance revenue /expense result plus depreciation and amortization plus impairments plus revaluation adjustment of contingent liabilities plus share-based compensation expenses plus bad debt provision.

 

 

 

 

Derived from Financial Statements

 

  

Genius Group
Unaudited Financials
Six Months Ended
(USD 000’s)

   Group Audited
Financials Year Ended
(USD 000’s)
 
   June 30,
2023
   June 30,
2022
   December 31,
2022
   December 31,
2021
 
Net Income (Loss)   (10,775)   (3,497)   (55,252)   (4,489)
Tax Expense   (325)   (24)   (1,064)   129 
Interest Expense, net   1,999    99    1,312    450 
Depreciation and Amortization   1,209    836    2,351    1,575 
Impairments   0    480    28,246    0 
Revaluation adjustment of Contingent Liabilities   0    0    13,838    0 
Stock Based Compensation   403    150    1,309    294 
Bad Debt Provision   170    0    1,509    (39)
Adjusted EBITDA   (7,318)   (1,956)   (7,750)   (2,338)

 

Pro forma Financials

 

Pro forma EBITDA is derived by reducing the financial impact of the spin off of Entrepreneur Resorts Ltd and adding back acquisition financials for the period prior to acquisition date.

 

  

Genius Group Unaudited Pro forma

Six Months Ended June 30, 2023

 
   Unaudited Financials   Entrepreneur Resorts   Acquisitions   Pro forma Financials 
   (USD 000’s)   (USD 000’s)   (USD 000’s)   (USD 000’s) 
Net Loss   (10,775)   -    -    (10,775)
Tax Benefits   (325)   -    -    (325)
Interest Expense, net   1,999    -    -    1,999 
Depreciation and Amortization   1,209    (30)   -    1,179 
Impairment   -    -    -    - 
Revaluation Adjustment of Contingent Liabilities   -    -    -    - 
Stock Based Compensation   403         -    403 
Bad Debt Provision   170         -    170 
Adjusted EBITDA   (7,318)   (30)   -    (7,348)

 

The Group had a negative Adjusted EBITDA of ($7.32) million in first half of 2023 compared to a negative of ($1.96) million in first half of 2022. The negative Adjusted EBITDA of ($7.32) million in first half of 2023 is partly due to further Group investments in development, marketing spend, increasing legal and professional services cost.

 

Cash and Cash Equivalents: The Group held $2.62 million in cash and cash equivalents as of June 30, 2023, and $5.72 million as of December 31, 2022.

 

Current Assets: The Group’s current assets decreased from $24.25 million as of December 31, 2022 to $9.35 million as of June 30, 2023 with a current ratio of 0.53 in first half of 2023 compared to 1.03 as of December 31, 2022. The primary reason for decline is usage of restricted cash for the repayment of convertible note, acquisition dues and operational losses in the first half of 2023. The largest current asset items in our Group are accounts receivable of $3.84 million, cash and cash equivalents of $2.62 million, prepaid expenses of $1.24 million and inventories of $1.17 million.

 

Non-Current Assets: The Group’s non-current assets reduced from $67.01 million as of December 31, 2022 to $66.05 million as of June 30, 2023. This is mainly due to the amortization of acquired intangible assets.

 

Current Liabilities: The Group’s current liabilities decreased from $23.38 million as of December 31, 2022 to $17.48 million as of June 30, 2023. The largest items in our current liabilities were deferred revenue of $5.05 million. The other significant components are convertible note of $3.77 million, accrued expenses and other current liabilities of $3.39 million, accounts payable of $2.22 million, operating lease liabilities of $1.33 million, due to related parties of $1.01 million and other remaining items contributes to $0.57 million.

 

Non-Current Liabilities: The Group’s non-current liabilities reduced from $53.92 million as of December 31, 2022 to $51.77 million as of June 30, 2023. The decrease was due to decrease in convertible loan payable balance of $0.13 million as of June 30, 2023 compared to $2.22 as of December 31, 2022 which is due to repayment and conversion of convertible loan during the first half of 2023.

 

Shareholders’ Equity: The Group’s shareholder’s equity reduced from $13.95 million as of December 31, 2022 to $6.13 million as of June 30, 2023. The reduction in equity is due to the loss of $10.77 million in the first half of 2023 and increase in capital by $3.68 million mainly due to conversion of convertible loan to equity and recording of stock-based compensation expenses.

 

   
 

 

Liquidity and Capital Resources

 

Our principal sources of liquidity are our cash and cash equivalents, short term investments, and cash generated from operations. Cash and cash equivalents and short-term investments consist mostly of cash on deposit with banks. As of June 30, 2023, we had cash and cash equivalents of $2.62 million maintained at various financial institutions compared to $5.72 million as of Dec 31, 2022.

 

Going Concern

 

Pursuant to IAS 1, Presentation of Financial Statements, the Company is required to and does evaluate at each annual and interim period whether there are conditions or events, considered in the aggregate, that raise substantial doubt about its ability to continue as a going concern within one year after the date that the consolidated financial statements are issued. Based on the definitions in the relevant accounting standards, and due to current liabilities exceeding current assets, management has determined that without additional capital raised, in the next twelve months, there is substantial doubt about the Company’s ability to continue as a going concern.

 

The Company’s unaudited condensed consolidated financial statements as of June 30, 2023 have been prepared on a going concern basis. Although the Company has taken, and plans to continue to take, proactive measures to enhance its liquidity position and provide additional financial flexibility, including discussions with lenders and bankers, there can be no assurance that these measures, including the timing and terms thereof, will be successful or sufficient.

 

The substantial doubt about the Company’s ability to continue as a going concern may negatively affect the price of the Company’s common stock, may impact relationships with third parties with whom the Company does business, including customers, vendors and lenders, may impact the Company’s ability to raise additional capital or implement its business plan.

 

Subsequent events

 

On July 26, 2023, Genius Group Ltd. signed executed and delivered a bridge note with an accredited investor in the face amount of $3.2 million, which has a $200,000 original issue discount. The company has received $1,000,000 in proceeds in July and August respectively.

 

As of August 31, 2023, the company has the outstanding principal value of $53,343 on the secured convertible note of $18.13 million closed on August 26, 2022. During July and August 2023, the company settled the outstanding principal value and accrued interest of $11.03 million and issued 22,192,694 shares in satisfaction to the liability.

 

ADJUSTED 2023 Guidance

 

2023 annual revenue of $26.0M - $29.0M compared to 2022 revenue of $18.2M

 

2023 net loss of $15.5-$17.0m compared to 2022 net loss of $55.3M

 

2023 adjusted EBITDA net loss of $10M - $12M compared to 2022 adjusted EBITDA net loss of $7.8M

 

Number of students (and users) 5.7M – 6.0M

 

   
 

 

GENIUS GROUP LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(In US Dollars)

 

   As of    As of  
   June 30, 2023   December 31, 2022 
   (Unaudited)   (Audited) 
Assets          
Current Assets          
Cash and cash equivalents  $2,624,432   $5,720,569 
Restricted cash   -    11,108,816 
Accounts receivable, net   3,843,414    4,856,637 
Other receivables   88,594    120,304 
Income tax receivable   130,957    - 
Due from related parties   252,060    351,357 
Inventories   1,171,728    1,001,977 
Prepaid expenses and other current assets   1,238,196    1,090,787 
Total Current Assets   9,349,381    24,250,447 
Property and equipment, net   203,934    563,131 
Operating lease right-of-use asset   12,344,687    12,573,710 
Investments at fair value   44,413    29,071 
Other receivables   767,982    732,716 
Due from related parties   5,566,247    5,288,264 
Goodwill   31,677,406    31,688,887 
Intangible assets, net   15,421,531    16,107,293 
Other non-current assets   26,286    26,108 
Total Assets   75,401,867    91,259,627 
Liabilities and Stockholders’ Equity          
Current Liabilities          
Accounts payable   2,224,294    1,672,306 
Accrued expenses and other current liabilities   3,391,966    3,809,540 
Deferred revenue   5,050,855    6,391,993 
Operating lease liabilities – current portion   1,325,839    1,590,538 
Income tax payable   -    355,023 
Loans payable – current portion   330,108    334,391 
Loans payable – related parties – current portion   1,018,628    2,932,090 
Convertible debt obligations, current portion   3,773,790    5,752,328 
Short term debt   369,245    539,245 
Total Current Liabilities   17,484,725    23,377,454 
Due to related parties   1,812    1,729 
Operating lease liabilities – non-current portion   11,436,814    11,394,337 
Loans payable – non-current portion   412,121    428,025 
Convertible debt obligations, non-current portion   137,500    2,223,523 
Deferred tax liability   3,300,516    3,391,129 
Derivative liabilities   36,488,594    36,488,594 
Total Liabilities   69,262,082    77,304,791 
Commitments and Contingencies Stockholders’ Equity:          
Contributed capital   114,218,578    110,534,000 
Subscriptions receivable   (1,900,857)   (1,900,857)
Reserves   (33,697,262)   (32,933,714)
Accumulated deficit   (78,522,639)   (68,539,210)
Capital and reserves attributable to owners of Genius Group Ltd   (97,820)   7,160,219 
Non controlling interest   6,041,965    6,794,617 
Total Stockholders’ Equity   6,139,785    13,954,836 
Total Liabilities and Stockholders’ Equity   75,401,867    91,259,627 

 

   
 

 

GENIUS GROUP LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In US Dollars)

 

   June 30, 2023  

June 30, 2022

(Restated)

 
   (Unaudited)   (Unaudited) 
Revenue  $11,795,714   $5,343,247 
Cost of revenue   (5,593,340)   (3,112,654)
Gross profit   6,202,374    2,230,593 
Operating (Expenses) Income          
General and administrative   (13,672,668)   (5,249,054)
Depreciation and amortization   (919,568)   (178,807)
Other operating income   1,213    166,001 
Legal expenses   (776,867)   - 
Loss from foreign currency transactions   2,425    58,759 
Total operating expenses   (15,365,465)   (5,203,101)
Loss from Operations   (9,163,091)   (2,972,508)
(Expense) Income          
Interest expense, net   (1,999,361)   (99,298)
Impairment loss   -    (480,372)
Other expense   (5,227)   - 
Other income   68,311    30,713 
Total Other Expense   (1,936,277)   (548,957)
Loss Before Income Tax   (11,099,368)   (3,521,465)
Income Tax Benefit   324,666    24,238 
Net Loss   (10,774,702)   (3,497,227)
Other comprehensive income:          
Foreign currency translation   (599,818)   (69,375)
Total Comprehensive Loss   (11,374,520)   (3,566,602)
Total Comprehensive Loss is attributable to:          
Owners of Genius Group Ltd   (10,746,977)   (3,420,929)
Non controlling interest   (627,543)   (145,673)
Total Comprehensive Loss   (11,374,520)   (3,566,602)
Weighted-average number of shares outstanding, basic and diluted   33,668,483    17,794,634 
Basic and diluted loss per share from continuing operations   (0.32)   (0.20)

 

   
 

 

GENIUS GROUP LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(In US dollars)

 

   Contributed   Non-controlling   Subscriptions   Foreign       Accumulated   Total 
   Capital   Interest   Receivable   Currency   Reserves   Deficit   Equity 
                             
Balance, January 1, 2023   110,534,000    6,794,617    (1,900,857)   983,653    (33,917,367)   (68,539,210)   13,954,836 
                                    
Net loss       (627,543)               (10,147,159)   (10,744,702)
Foreign currency translation adjustments               (763,548)       163,730    (599,818)
Shares issued for conversion of convertible notes   6,994,299                        6,994,299 
Convertible loan adjustment for outstanding note, net   (3,837,395)                       (3,837,395)
Shares issued by conversion from ERL and GeniusU   125,109    (125,109)                    
Share based compensation   402,565                        402,565 
                                    
Balance, June 30, 2023   114,218,578    6,041,965    (1,900,857)   220,105    (33,917,367)   (78,522,639)   6,139,785 

 

   Contributed   Non-controlling   Subscriptions   Foreign       Accumulated   Total 
   Capital   Interest   Receivable   Currency   Reserves   Deficit   Equity 
                             
Balance, January 1, 2022   50,924,276    4,344,899    (1,900,857)   2,028,729    (33,917,367)   (13,493,684)   7,985,996 
                                    
Net loss       (135,248)               (3,361,979)   (3,497,227)
Foreign currency translation adjustments               69,365            69,365 
Proceeds from IPO (net)   15,402,858                        15,402,858 
Share options Genius Group IPO April 2022   273,476                        273,476 
Shares issued for cash       2,556,739                    2,556,739 
Shares issued for conversion of convertible notes   229,237                        229,237 
Share issued for IPO acquisition   27,046,599                        27,046,599 
Adjustment against capital and retained earnings   (23)   89,076    (53,558)   (10,556)   (2,979,276)   331,854    (2,622,483)
2021 Genius Group Employee Share option   45,390                        45,390 
2022 Management Options   (1,758)                       (1,758)
Share based compensation   106,685                        106,685 
                                    
Balance, June 30, 2022   94,026,740    6,855,466    (1,954,415)   2,087,538    (36,896,643)   (16,523,809)   47,594,877 

 

   
 

 

GENIUS GROUP LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In US Dollars)

 

   For the Six months Ended 
   June 30, 2023   June 30, 2022 
   (Unaudited)   (Unaudited) 
Cash Flows from Operating Activities          
Net loss  $(10,774,701)  $(3,497,227)
Adjustments to reconcile net loss to net cash used in operating activities:          
Stock-based compensation   402,565    150,317 
Depreciation and amortization   1,208,772    835,757 
Provision for interest expense   1,277,162     
Provision for doubtful accounts   170,318     
Deferred income taxes       (29,679)
Impairment loss       480,372 
Gain on foreign exchange transactions   (2,425)   (58,759)
Interest expense on lease liabilities   444,553    58,026 
Changes in operating assets and liabilities:          
Accounts receivable   842,905    (480,438)
Other receivable   (3,556)    
Prepaid expenses and other current assets   (147,408)   (1,840,348)
Inventory   (169,751)   (3,651)
Accounts payable   551,988    430,633 
Accrued expenses and other current liabilities   (417,574)   (609,406)
Deferred revenue   (1,341,138)   82,841 
Deferred tax liability   (90,613)    
Income tax payable   (485,980)    
Other non-current asset   178     
Total adjustments   2,239,996    (984,335)
Net Cash Used in Operating Activities   (8,534,705)   (4,481,562)
Cash Flows from Investing Activities          
Internally developed software   (322,419)   (313,876)
Purchase of equipment   (111,151)   (79,455)
Acquisitions   (2,299,231)   (2,116,456)
Deposit on investment in UAV        (6,604,194)
Purchase of investment   (20,000)   (80,514)
Net Cash Used in Investing Activities   (2,752,801)   (9,194,496)
Cash Flows from Financing Activities          
Amount due to/from related party, net   726,648    (338,280)
Proceeds from IPO, net        18,060,447 
Proceeds from convertible debt, net of issuance costs   8,923,994    - 
Proceeds from equity issuances       2,605,215 
Issuance from convertible debt       (147,582)
Lease liabilities   (639,096)   (306,811)
Repayment of loan   (170,000)   (192,465)
Net Cash Provided by Financing Activities   8,841,547    19,680,524 
Effect of Exchange Rate Changes on Cash   (650,096)   (212,817)
Net (Decrease) Increase in Cash   (3,096,137)   5,791,649 
Cash – Beginning of year   5,720,569    1,784,938 
Cash – End of period   2,624,432    7,576,587 

 

   
 

 

Summary Combined Consolidated Financial Data

 

   Unaudited Financials Six Months Ended (USD 000’s)   Audited Financials
Year Ended
(USD 000’s)
 
Summary Income Data:  June 30,
2023
  

June 30,
2022

(Restated)

   December 31,
2022
   December 31,
2021
 
Sales   11,796    5,343    18,194    8,295 
Cost of goods sold   (5,593)   (3,112)   (9,555)   (5,537 
Gross profit   6,203    2,231    8,639    2,757 
Other Operating Income   4    225    280    324 
Operating Expenses   (15,639)   (5,428)   (50,502)   (7,250 
Operating Loss   (9,162)   (2,972)   (41,583)   (4,168 
Other income   68    31    419    - 
Other Expense   (2,005)   (580)   (15,151)   (450 
Net Loss Before Tax   (11,099)   (3,521)   (56,315)   (4,618 
Tax Expense   325    24    1,064    129 
Net Loss After Tax   (10,774)   (3,497)   (55,252)   (4,489 
Other Comprehensive Income   (600)   (70)   (1,045)   230 
Total Loss   (11,374)   (3,567)   (56,297)   (4,259 
Net income per share, basic and diluted   (0.32)   (0.20)   (2.44)   (0.28)
Weighted-average number of shares outstanding, basic and diluted   33,668,483    17,794,634    22,634,366    16,155,812 

 

   Unaudited Financials
Six Months Ended,
(USD 000’s)
   Audited Financials
Year Ended
(USD 000’s)
 
   June 30,
2023
   December 31,
2022
   December 31,
2021
 
Summary Balance Sheet Data:               
Total current assets   9,350    24,251    6,496 
Total non-current assets   66,052    67,009    11,099 
Total Assets   75,402    91,260    17,595 
Total current liabilities   17,486    23,378    7,140 
Total non-current liabilities   51,776    53,927    2,469 
Total Liabilities   69,262    77,305    9,609 
Total Shareholders’ Equity   6,140    13,955    7,986 
Total Liabilities and Shareholders’ Equity   75,402    91,260    17,595 

 

   
 

 

Pro forma Financials

 

Pro forma financials are derived by reducing the financial impact of spin off of Entrepreneur Resorts Ltd and adding back acquisition financials for the period prior to acquisition date. Due to the intercompany receivable from Entrepreneur Resorts Ltd, the balance sheet effect of spin-off results in an increase in assets (current assets) which is reflected by a negative balance under Entrepreneur Resorts Ltd.

 

  

Genius Group Unaudited Pro forma

Six Months Ended June 30, 2023

 
   Unaudited Financials   Entrepreneur Resorts   Acquisitions   Pro forma Financials 
   (USD 000’s)   (USD 000’s)   (USD 000’s)   (USD 000’s) 
Sales   11,796    (2,834)   -    8,962 
Cost of goods sold   (5,593)   963    -    (4,631)
Gross profit   6,203    (1,871)   -    4,331 
Other Operating Income   4    3    -    7 
Operating Expenses   (15,639)   1,613    -    (13,756)
Operating Loss from the continuing operations   (9,162)   255    -    (9,418)

 

  

Genius Group Unaudited Pro forma

Six Months Ended June 30, 2023

 
   Unaudited Financials   Entrepreneur Resorts   Pro forma
Adjustment
   Pro forma Financials 
   (USD 000’s)   (USD 000’s)   (USD 000’s)   (USD 000’s) 
Summary Balance Sheet Data:                    
Total current assets   9,350    3,229    -    12,580 
Total non-current assets   66,052    (946)   -    65,106 
Total Assets   75,402    2,283    -    77,686 
Total current liabilities   17,486    (2,527)   -    14,959 
Total non-current liabilities   51,776    (2,266)   -    49,511 
Total Liabilities   69,262    (4,793)   -    64,470 
Total Stockholders’ Equity   6,140    7,076    -    13,216 
Total Liabilities and Shareholders’ Equity   75,402    2,283    -    77,686 

 

   

 


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