SINGAPORE–(BUSINESS WIRE)–$GNS #GNS–Genius Group Limited (�Genius Group or the Company) (NYSE American: GNS), a leading entrepreneur Edtech and education group, today announced its financial results for the nine months ended September 30, 2022.
Financial Highlights For the Nine Months ended September 30, 2022
Roger Hamilton, CEO of Genius Group, commented: Genius Group continues to deliver strong growth in number of students, paying students and partners, which allows the company to grow at a higher rate than the industry. This is a testament of our strong and loyal community which grows mainly through word of mouth.
Operational Highlights
Other Recent Highlights
Financial Guidance
We are maintaining our 2022 pro forma revenue guidance and revising our adjusted EBITDA guidance.
Webcast and Conference Call
Genis Group will host a live webcast to discuss the results today, November 30, 2022, at 8:00 a.m. EST / 9:00 p.m. SGT. The webcast and supplemental information can be accessed on the investor relations section of the Genius Group website at ir.geniusgroup.net. An archive will be available after the conclusion of the live event and will remain available via the same link for 6 months.
Time: | Wednesday, November 30, 2022, at 8:00 a.m. EST / 9:00 p.m. SGT | |
Webcast: | Go to the Investor Relations section of the Genius Group website to listen and view the slides. | |
Dial-in: | 877-407-0712 (U.S. Toll Free); +1 201-493-6716 (International) |
About Genius Group
Genius Group is a world 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 in todays market. The group has a group user base of 4.3 million users in 200 countries, ranging from ages 0 to 100.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the U.S. federal securities laws, including (without limitation) statements regarding our or our managements expectations, hopes, beliefs, intentions or strategies regarding the future and other statements that are other than statements of historical fact. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward-looking statements are generally identified by the words believe, project, expect, anticipate, estimate, intend, strategy, future, opportunity, plan, may, should, will, would, will be, will continue, will likely result and similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties.
Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: the Companys goals and strategies; the Companys future business development; changes in demand for online learning; changes in technology; fluctuations in economic conditions; the growth of the online learning industry the United States and the other markets the Company serves or plans to serve; reputation and brand; the impact of competition and pricing; government regulations; and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission (the SEC). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Companys filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that arise after the date hereof.
Key Business Metrics
We monitor the key business metrics and Non-IFRS financial measures 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 Managements 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.
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 share-based compensation expenses plus bad debt provision.
GENIUS GROUP LIMITED AND SUBSIDIARIES | ||||||||
CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION | ||||||||
(In US Dollars) | ||||||||
|
|
As of |
|
|
As of |
| ||
|
| 2022 |
|
| 2021 |
| ||
|
| (Unaudited) |
|
| (Audited) |
| ||
Assets |
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
| $ | 8,972,559 |
|
| $ | 1,784,938 |
|
Restricted Cash |
|
| 11,333,283 |
|
|
| – |
|
Accounts receivable, net |
|
| 7,074,898 |
|
|
| 1,018,003 |
|
Other receivables |
|
| 4,018,845 |
|
|
| 66,000 |
|
Due from related parties |
|
| 1,790,417 |
|
|
| 44,245 |
|
Inventories |
|
| 491,604 |
|
|
| 92,530 |
|
Prepaid expenses and other current assets |
|
| 2,543,792 |
|
|
| 3,490,446 |
|
Total Current Assets |
|
| 36,225,398 |
|
|
| 6,496,162 |
|
Property and equipment, net |
|
| 7,553,384 |
|
|
| 6,776,116 |
|
Operating lease right-of-use asset |
|
| 8,012,578 |
|
|
| 1,077,241 |
|
Investments at fair value |
|
| 247,599 |
|
|
| 29,069 |
|
Goodwill |
|
| 22,206,302 |
|
|
| 1,320,100 |
|
Intangible assets, net |
|
| 8,954,207 |
|
|
| 1,394,969 |
|
Other non-current assets |
|
| – |
|
|
| 501,750 |
|
Total Assets |
|
| 83,199,468 |
|
|
| 17,595,407 |
|
Liabilities and Stockholders Equity |
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
| 1,678,078 |
|
|
| 1,078,381 |
|
Accrued expenses and other current liabilities |
|
| 2,925,349 |
|
|
| 2,064,302 |
|
Deferred revenue |
|
| 5,942,897 |
|
|
| 2,561,912 |
|
Operating lease liabilities current portion |
|
| 643,866 |
|
|
| 436,271 |
|
Income tax payable |
|
| 261,217 |
|
|
| – |
|
Loans payable current portion |
|
| 65,964 |
|
|
| 65,415 |
|
Loans payable related parties current portion |
|
| 504,988 |
|
|
| 425,551 |
|
Convertible debt obligations, current portion |
|
| 4,193,078 |
|
|
| 507,765 |
|
Total Current Liabilities |
|
| 16,215,437 |
|
|
| 7,139,597 |
|
Due to related parties |
|
| 1,593 |
|
|
| – |
|
Operating lease liabilities non-current portion |
|
| 7,610,252 |
|
|
| 894,589 |
|
Loans payable non-current portion |
|
| 1,052,254 |
|
|
| 85,858 |
|
Convertible debt obligations, non-current portion |
|
| – |
|
|
| 766,245 |
|
Deferred tax liability |
|
| 2,203,632 |
|
|
| 723,122 |
|
Convertible note |
|
| 3,288,771 |
|
|
| – |
|
Total Liabilities |
|
| 30,371,939 |
|
|
| 9,609,411 |
|
Commitments and Contingencies Stockholders Equity: |
|
|
|
|
|
|
|
|
Contributed capital |
|
| 102,429,144 |
|
|
| 50,924,276 |
|
Subscriptions receivable |
|
| (1,954,415 | ) |
|
| (1,900,857 | ) |
Reserves |
|
| (35,999,824 | ) |
|
| (31,888,638 | ) |
Accumulated deficit |
|
| (18,502,842 | ) |
|
| (13,493,684 | ) |
Capital and reserves attributable to owners of Genius Group Ltd |
|
| 45,972,063 |
|
|
| 3,641,097 |
|
Non-controlling interest |
|
| 6,855,466 |
|
|
| 4,344,899 |
|
Total Stockholders Equity |
|
| 52,827,529 |
|
|
| 7,985,996 |
|
Total Liabilities and Stockholders Equity |
|
| 83,199,468 |
|
|
| 17,595,407 |
|
GENIUS GROUP LIMITED AND SUBSIDIARIES | ||||||||
CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||
(In US Dollars) | ||||||||
|
|
Nine Months
September |
|
|
September |
| ||
|
| 2022 |
|
| 2021 |
| ||
|
| (Unaudited) |
|
| (Unaudited) |
| ||
Revenue |
| $ | 14,415,681 |
|
| $ | 8,971,423 |
|
Cost of revenue |
|
| (9,519,540 | ) |
|
| (6,015,497 | ) |
Gross profit |
|
| 4,896,141 |
|
|
| 2,955,926 |
|
Operating (Expenses) Income |
|
|
|
|
|
|
|
|
General and administrative |
|
| (10,668,488 | ) |
|
| (5,036,086 | ) |
Depreciation and amortization |
|
| (178,478 | ) |
|
| (316,721 | ) |
Other operating income |
|
| 140,082 |
|
|
| 28,921 |
|
Loss from foreign currency transactions |
|
| 104,577 |
|
|
| 36,117 |
|
Total operating expenses |
|
| (10,602,307 | ) |
|
| (5,287,769 | ) |
Loss from Operations |
|
| (5,706,166 | ) |
|
| (2,331,843 | ) |
(Expense) Income |
|
|
|
|
|
|
|
|
Interest expense, net |
|
| (83,196 | ) |
|
| (125,518 | ) |
Impairment loss |
|
| (480,272 | ) |
|
| |
|
Other income |
|
| 121,034 |
|
|
| 107,228 |
|
Total Other Expense |
|
| (442,434 | ) |
|
| (18,290 | ) |
Loss Before Income Tax |
|
| (6,148,600 | ) |
|
| (2,350,133 | ) |
Income Tax Benefit (Expense) |
|
| 59,616 |
|
|
| 37,713 |
|
Net Loss |
|
| (6,088,984 | ) |
|
| (2,312,420 | ) |
Other comprehensive income: |
|
|
|
|
|
|
|
|
Foreign currency translation |
|
| (42,423 | ) |
|
| (15,066 | ) |
Total Comprehensive Loss |
|
| (6,131,407 | ) |
|
| (2,327,486 | ) |
Total Comprehensive Loss is attributable to: |
|
|
|
|
|
|
|
|
Owners of Genius Group Ltd |
|
| (5,880,980 | ) |
|
| (2,232,424 | ) |
Non-controlling interest |
|
| (250,427 | ) |
|
| (95,062 | ) |
Total Comprehensive Loss |
|
| (6,131,407 | ) |
|
| (2,327,486 | ) |
Weighted-average number of shares outstanding, basic and diluted |
|
| 19,966,999 |
|
|
| 16,155,180 |
|
Basic and diluted earnings (loss) per share from continuing operations |
|
| (0.30 | ) |
|
| (0.14 | ) |
GENIUS GROUP LIMITED AND SUBSIDIARIES | ||||||||
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(In US Dollars) | ||||||||
|
|
For the Nine
September |
|
|
For the |
| ||
|
| (Unaudited) |
|
| (Audited) |
| ||
Cash Flows From Operating Activities |
|
|
|
|
|
|
|
|
Net loss |
| $ | (6,088,984 | ) |
| $ | (4,489,198 | ) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Stock-based compensation |
|
| 261,550 |
|
|
| 293,837 |
|
Depreciation and amortization |
|
| 1,452,431 |
|
|
| 1,574,913 |
|
Deferred tax liability |
|
| |
|
|
| 105,650 |
|
Amortization of debt discount |
|
| |
|
|
| 140,837 |
|
Provision for doubtful debts |
|
| |
|
|
| (39,108 | ) |
Amortization of tax liability |
|
| (65,057 | ) |
|
| |
|
Impairment loss |
|
| 480,372 |
|
|
| |
|
Loss on foreign exchange transactions |
|
| (104,577 | ) |
|
| 153,692 |
|
Interest expense on lease liabilities |
|
| 3,690 |
|
|
| 131,291 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
| (2,355,320 | ) |
|
| (30,554 | ) |
Other receivable |
|
| |
|
|
| (66,000 | ) |
Prepaid expenses and other current assets |
|
| (817,727 | ) |
|
| (1,927,176 | ) |
Inventory |
|
| (399,074 | ) |
|
| 20,013 |
|
Accounts payable |
|
| 256,835 |
|
|
| 256,562 |
|
Accrued expenses and other current liabilities |
|
| (1,444,596 | ) |
|
| 254,080 |
|
Deferred revenue |
|
| 2,072,996 |
|
|
| 1,015,200 |
|
Deferred tax liability |
|
| |
|
|
| (257,953 | ) |
Other non-current liabilities |
|
| |
|
|
| (217,291 | ) |
Total adjustments |
|
| (658,477 | ) |
|
| 1,407,993 |
|
Net Cash Used In Operating Activities |
|
| (6,747,461 | ) |
|
| (3,081,205 | ) |
Cash Flows From Investing Activities |
|
|
|
|
|
|
|
|
Purchase of intangible assets |
|
| (643,157 | ) |
|
| (804,314 | ) |
Proceeds from Sale/(Purchase) of equipment |
|
| 68,867 |
|
|
| (77,797 | ) |
Acquisition of PIN, EA and ESQ |
|
| (8,788,989 | ) |
|
| |
|
Deposit on investment in UAV |
|
| |
|
|
| |
|
Investment at fair value |
|
| (218,530 | ) |
|
|
|
|
Net Cash Used In Investing Activities |
|
| (9,581,809 | ) |
|
| (882,111 | ) |
Cash Flows From Financing Activities |
|
|
|
|
|
|
|
|
Amount due to/from related party |
|
| (128,941 | ) |
|
| (154,345 | ) |
Proceeds from sale of future shares |
|
| |
|
|
| 953,087 |
|
Proceeds from equity issuances, net of issuance costs |
|
| 2,605,215 |
|
|
| 3,127,442 |
|
Proceeds from IPO, net |
|
| 18,060,447 |
|
|
| |
|
Proceeds from convertible debt, net of issuance costs |
|
| 4,155,495 |
|
|
| |
|
Issuance from convertible debt |
|
| (147,582 | ) |
|
| |
|
Operating lease liability payments |
|
| (678,039 | ) |
|
| (758,522 | ) |
Proceeds/ (Repayments) of loans payable |
|
| (425,804 | ) |
|
| (71,967 | ) |
Net Cash Provided By Financing Activities |
|
| 23,440,791 |
|
|
| 3,095,695 |
|
Effect of Exchange Rate Changes on Cash |
|
| 76,100 |
|
|
| 379,408 |
|
Net Increase (Decrease) In Cash |
|
| 7,187,621 |
|
|
| (488,213 | ) |
Cash Beginning of year |
|
| 1,784,938 |
|
|
| 2,273,151 |
|
Cash End of period |
|
| 8,972,559 |
|
|
| 1,784,938 |
|
Pro Forma Financials
Pro forma financials for Genius Group (The full Group including the Group and all the Acquisitions YTD): Unaudited pro forma financials provided for the period ended September 30, 2022, for the full Group, including all acquired companies YTD as if they were operating as one during these periods. The acquisitions included in the table below are Property Investors Network (acquired April 30, 2020), Education Angels (acquired April 30, 2022), E-Square (acquired May 31, 2022), University of Antelope Valley (acquired July 07, 2022) and Revealed Films (acquired October 04, 2022).
|
|
Genius Group | ||
Summary Income Statement |
| September 30, 2022 | ||
Sales |
|
| 24,667 | |
Cost of goods sold |
|
| (12,992) | |
Gross profit (Loss) |
|
| 11,675 | |
Other Operating Income |
|
| 245 | |
Operating Expenses |
|
| (17,495) | |
Operating profit (Loss) |
|
| (5,575) | |
Other income |
|
| 879 | |
Other Expense |
|
| (625) | |
Net Income (Loss) Before Tax |
|
| (5,321) | |
Tax Expense |
|
| 60 | |
Net Income (Loss) After Tax |
|
| (5,261) | |
Other Comprehensive Income |
|
| (43) | |
Total Income (Loss) |
|
| (5,304 ) | |
Net income per share, basic and diluted |
|
| (0.26) | |
Weighted-average number of shares outstanding, basic and diluted |
|
| 19,966,999 |
|
|
Genius Group | |
Adjusted EBITDA |
|
September 30, | |
Net Loss |
| (5,262) | |
Tax Expense |
| (60) | |
Interest Expense, net |
| 145 | |
Depreciation and Amortization |
| 1,426 | |
Goodwill Impairments |
| 480 | |
Stock Based Compensation |
| 262 | |
Bad debt Provision |
| 21 | |
Adjusted EBITDA |
| (2,988) |
|
|
Genius Group | |
|
|
September 30, | |
Summary Balance Sheet Data: |
|
|
|
Total current assets |
|
| 33,962 |
Total non-current assets |
|
| 57,983 |
Total Assets |
|
| 91,945 |
Total current liabilities |
|
| 17,382 |
Total non-current liabilities |
|
| 14,317 |
Total Liabilities |
|
| 31,699 |
Total Shareholders Equity |
|
| 60,246 |
Total Liabilities and Shareholders Equity |
|
| 91,945 |
Contacts
Investors:
Flora Hewitt, Vice President of Investor Relations and Mergers and Acquisitions
Email: investor@geniusgroup.net
Media:
Ruth Shearman, Senior Account Manager, Adia PR
Email: gns@adiapr.co.uk
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