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
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION(In US Dollars)
|
|
As of June 30, |
|
|
As of December 31, |
|
|
|
2023 |
|
|
|
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
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS(In US
Dollars)
|
|
June 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
|
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
SUBSIDIARIESCONDENSED 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 FinancialsYear
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 FinancialsSix Months
Ended,(USD 000’s) |
|
|
Audited FinancialsYear
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 UnauditedPro
formaSix Months EndedJune 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 UnauditedPro
formaSix Months EndedJune 30,
2023 |
|
|
|
Unaudited Financials |
|
|
Entrepreneur Resorts |
|
|
Pro formaAdjustment |
|
|
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 GroupUnaudited
FinancialsSix Months Ended(USD
000’s) |
|
|
Group Audited
FinancialsYear 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
ContingentLiabilities |
|
|
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 GroupUnaudited Pro
formaSix 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 AcquisitionsEmail: investor@geniusgroup.net
Media Contacts: Adia PREmail: gns@adiapr.co.uk
US Investors: Dave Gentry, RedChip Companies
Inc1-800-RED-CHIPGNS@redchip.com
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