Genius Group increases Net Asset Value to $54.6 million, reduces net loss per share by 74% in First Half of 2024.
Provides guidance of $75 million net asset value for Full Year with growth in Bitcoin Treasury.
SINGAPORE, Dec. 27, 2024 (GLOBE NEWSWIRE) -- Genius Group Limited (NYSE American: GNS) ("Genius Group" or the "Company"), a leading AI-powered, Bitcoin-first education group, today announced its financial results for the first half of 2024.
"Following a rationalization of our operations in the first half of the year, we are extremely pleased to report a stronger balance sheet and a reduction in operational expenses for the first six months of 2024. This trend has continued in the second half, with the launch of our Bitcoin-first strategy and growth of our Bitcoin Treasury." said Roger Hamilton, CEO of Genius Group.
Genius Group's unaudited first half financial results are for the operations of the Company excluding financials related to the LZGI transaction signed in January 2024. As previously reported, the Company has voted to rescind that transaction, and the matter is currently in arbitration. The financial highlights for the first half of 2024 is prior to the launch of the Company's Bitcoin Treasury strategy in the second half of 2024.
Financial Highlights for the First Half of 2024
| ? | First half revenue of $4.9 million, compared to $11.8 million for first half of 2023, due to the spin off of Entrepreneur Resorts Limited and closure of University of Antelope Valley. | |
| ? | First half operating expenses of $10.8 million, compared to $15.4 million for first half of 2023, due to the reduction in operational costs and rationalization of operations in anticipation at the time of the LZGI transaction. | |
| ? | First half total loss of ($8.8) million, compared to ($11.4) million for first half of 2023, a reduction of 22.8%. | |
| ? | First half loss per share of ($0.84) per basic and diluted share compared to loss per share of ($3.20) per basic and diluted share in first half of 2023, a reduction of 74%. | |
| ? | $0.50 million cash and equivalents as of June 30, 2024, compared to $0.6 million as of December 31, 2023. | |
| ? | First half total current assets of $41.2 million, compared to $9.6 million as of December 31, 2023, an increase of 329%, due to receivables from the reversal of the LZGI transaction. | |
| ? | First half total assets of $78.3 million, compared to $43.2 as of December 31, 2023, an increase of 81%. | |
| ? | First half net assets of $54.6 million, compared to $19.7 million as of December 31, 2023, an increase of 177%. | |
"While the company has put significant focus on various corporate actions, rationalizing its operations and reducing costs in 2024, we have done so while growing our core Edtech business." said Gaurav Dama, CFO of Genius Group. "We are finishing 2024 with a strong balance sheet and look forward to moving towards a sustainable cash positive operating model anchored by our Bitcoin Treasury plan in 2025."
Strategic and Operational Highlights for the First Half of 2023
| ? | Closing $8.25 million public offering in January 2024 | |
| ? | Launched AI Avatar Tutor Team on GeniusU and expanding AI powered Genius University | |
| ? | Launch of Genius City Singapore: Company's 1st Sovereign AI Education Ecosystem | |
| ? | Completion of Warrants Exercise for $3.8 Million Gross Proceeds in May 2024 | |
| ? | Launch of Abu Dhabi and Dubai Genius Cities, AI Hubs at Abu Dhabi University | |
| ? | Rationalization of operations, including closure of University of Antelope Valley | |
| ? | Announcement and subsequent decision to rescind asset purchase agreement with LZGI | |
Recent Strategic and Operational Highlights
| ? | Completion of reverse stock split in August 2024 | |
| ? | Closing $150 million ATM offering | |
| ? | Restructuring of the Board with appointment of Four new Board Members aligned with Company's Bitcoin-first strategy. | |
| ? | Launch of GeniusGroup.AI to Power Growth of Genius Cities and AI Education | |
| ? | Bitcoin Treasury Reserve Strategy and invested $20M to acquire 214 Bitcoin | |
| ? | Launched Sponsorship of Bitcoin MENA, Abu Dhabi and Bitcoin 2025, Las Vegas | |
| ? | Sponsorship of Consensus Hong Kong and Toronto, and Paris Blockchain Week | |
| ? | Acquisition of Bitcoin Learning Platform, XD Academy | |
| ? | Launch announcement of Bitcoin Academy and Blockchain Academy in Q1 2025 | |
Following the issues relating to the LZGI transaction, the Company previously withdrew guidance for the year 2024. With the restructuring and realignment of the company to its Bitcoin-first strategy in the second half of 2024, the Company anticipates its Net Asset Value to grow to $75 million for the full year, with over $20 million in its Bitcoin Treasury. The Company is committed to its current path towards profitable, cash positive operations and an initial Bitcoin Treasury target of 1,000 Bitcoin.
Other
The audit opinion of its audited consolidated financial statements for the fiscal year ended December 31, 2023, included in the Company's Annual Form on 20F filed with the Securities and Exchange Commission on May 15, 2024, prepared as going concern. The Company's unaudited condensed consolidated financial statements as of June 30, 2024 have been prepared on a going concern basis.
About Genius Group
Genius Group (NYSE: GNS) is a Bitcoin-first business delivering AI powered, education and acceleration solutions for the future of work. Genius Group serves 5.4 million users in over 100 countries through its Genius City model and online digital marketplace of AI training, AI tools and AI talent. It provides personalized, entrepreneurial AI pathways combining human talent with AI skills and AI solutions at the individual, enterprise and government level. To learn more, please visit 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, 2023, filed with the SEC on May 15, 2024. 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, 2024 | As of December 31, 2023 | |||||||
| (Unaudited) | (Audited) | |||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | 500,329 | 614,753 | ||||||
| Restricted cash | 711,026 | 711,026 | ||||||
| Accounts receivable, net | 1,834,827 | 1,868,931 | ||||||
| Other receivables | 36,875,097 | 50,465 | ||||||
| Due from related parties | 169,969 | 4,966,733 | ||||||
| Inventories | 574,464 | 755,284 | ||||||
| Prepaid expenses and other current assets | 489,296 | 666,673 | ||||||
| Total Current Assets | 41,155,301 | 9,633,865 | ||||||
| Property and equipment, net | 421,952 | 456,751 | ||||||
| Other investments | 4,454,338 | 28,698 | ||||||
| Investments in joint venture | 369 | 379 | ||||||
| Other receivables | 766,076 | 770,994 | ||||||
| Due from related parties | 5,602,470 | 5,628,298 | ||||||
| Goodwill | 11,405,622 | 11,425,148 | ||||||
| Intangible assets, net | 14,476,868 | 15,250,751 | ||||||
| Other non-current assets | 18,889 | 18,889 | ||||||
| Total Assets | 78,301,886 | 43,213,773 | ||||||
| Liabilities and Shareholders' Equity | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | 3,156,964 | 4,406,850 | ||||||
| Accrued expenses and other current liabilities | 2,575,505 | 2,419,205 | ||||||
| Contract Liability | 1,916,179 | 2,750,137 | ||||||
| Income tax payable | 225,663 | 174,738 | ||||||
| Loans payable - current portion | 4,185,652 | 2,467,656 | ||||||
| Due to related parties | 4,234,079 | 4,907,181 | ||||||
| Convertible debt obligations, current portion | - | - | ||||||
| Short term debt | 40,000 | 122,415 | ||||||
| Total Current Liabilities | 16,334,042 | 17,248,182 | ||||||
| Due to related parties | 1,807 | 1,820 | ||||||
| Loans payable - non-current portion | 1,343,664 | 254,455 | ||||||
| Deferred tax liability | 2,280,324 | 2,280,323 | ||||||
| Derivative liabilities | 3,714,000 | 3,714,000 | ||||||
| Total Liabilities | 23,673,838 | 23,498,780 | ||||||
| Commitments and Contingencies Shareholders' Equity: | ||||||||
| Contributed capital | 125,355,215 | 81,617,864 | ||||||
| Reserves | (8,031,640 | ) | (8,459,565 | ) | ||||
| Accumulated deficit | (68,362,461 | ) | (59,132,781 | ) | ||||
| Capital and reserves attributable to owners of Genius Group Ltd | 48,961,114 | 14,025,518 | ||||||
| Non controlling interest | 5,666,934 | 5,689,475 | ||||||
| Total Shareholders' Equity | 54,628,048 | 19,714,993 | ||||||
| Total Liabilities and Shareholders' Equity | 78,301,886 | 43,213,773 | ||||||
GENIUS GROUP LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In US Dollars)
| June 30, 2024 | June 30, 2023 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Revenue | $ | 4,880,309 | $ | 11,795,714 | ||||
| Cost of revenue | (3,149,970 | ) | (5,593,340 | ) | ||||
| Gross profit | 1,730,339 | 6,202,374 | ||||||
| Operating (Expenses) Income | ||||||||
| General and administrative | (9,510,000 | ) | (13,672,668 | ) | ||||
| Depreciation and amortization | (729,690 | ) | (919,568 | ) | ||||
| Other operating income | 19,238 | 1,213 | ||||||
| Legal expenses | (531,252 | ) | (776,867 | ) | ||||
| Loss from foreign currency transactions | (54,916 | ) | 2,425 | |||||
| Total operating expenses | (10,806,620 | ) | (15,365,465 | ) | ||||
| Loss from Operations | (9,076,281 | ) | (9,163,091 | ) | ||||
| (Expense) Income | ||||||||
| Interest expense, net | (223,614 | ) | (1,999,361 | ) | ||||
| Other expense | - | (5,227 | ) | |||||
| Other income | 47,673 | 68,311 | ||||||
| Total Other Expense | (175,941 | ) | (1,936,277 | ) | ||||
| Loss Before Income Tax | (9,252,222 | ) | (11,099,368 | ) | ||||
| Income Tax Benefit | - | 324,666 | ||||||
| Net Loss | (9,252,222 | ) | (10,774,702 | ) | ||||
| Other comprehensive income: | ||||||||
| Foreign currency translation | 427,926 | (599,818 | ) | |||||
| Total Comprehensive Loss | (8,824,296 | ) | (11,374,520 | ) | ||||
| Total Comprehensive Loss is attributable to: | ||||||||
| Owners of Genius Group Ltd | (8,801,755 | ) | (10,746,977 | ) | ||||
| Non controlling interest | (22,541 | ) | (627,543 | ) | ||||
| Total Comprehensive Loss | (8,824,296 | ) | (11,374,520 | ) | ||||
| Weighted-average number of shares outstanding, basic and diluted | 11,009,270 | 3,366,848 | ||||||
| Basic and diluted loss per share from continuing operations | (0.84 | ) | (3.20 | ) | ||||
GENIUS GROUP LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In US Dollars)
| For the Six months Ended | ||||||||
| June 30, 2024 | June 30, 2023 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net loss | $ | (9,252,222 | ) | $ | (10,774,702 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Stock-based compensation | 618,543 | 402,565 | ||||||
| Depreciation and amortization | 1,019,961 | 1,208,772 | ||||||
| Provision for interest expense | 223,614 | 1,277,162 | ||||||
| Provision for doubtful accounts | (321,898 | ) | 170,318 | |||||
| Gain on foreign exchange transactions | 54,916 | (2,425 | ) | |||||
| Interest expense on lease liabilities | - | 444,553 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 34,104 | 842,905 | ||||||
| Other receivable | (5,904,240 | ) | (3,556 | ) | ||||
| Prepaid expenses and other current assets | (177,083 | ) | (147,408 | ) | ||||
| Inventories | 180,820 | (169,751 | ) | |||||
| Accounts payable | (1,249,885 | ) | 551,988 | |||||
| Accrued expenses and other current liabilities | 156,300 | (417,574 | ) | |||||
| Contract Liability | (833,958 | ) | (1,341,138 | ) | ||||
| Deferred tax liability | - | (90,613 | ) | |||||
| Income tax payable | 50,926 | (485,980 | ) | |||||
| Other non-current asset | - | 178 | ||||||
| Total adjustments | (6,147,880 | ) | 2,239,996 | |||||
| Net Cash Used in Operating Activities | (15,400,102 | ) | (8,534,706 | ) | ||||
| Cash Flows from Investing Activities | ||||||||
| Internally developed software | (239,156 | ) | (322,419 | ) | ||||
| Purchase of property and equipment | (41,720 | ) | (111,151 | ) | ||||
| Acquisitions | - | (2,299,231 | ) | |||||
| Purchase of investment | (426,182 | ) | (20,000 | ) | ||||
| Net Cash Used in Investing Activities | (707,058 | ) | (2,752,801 | ) | ||||
| Cash Flows from Financing Activities | ||||||||
| Amount due to/from related party, net | 150,042 | 726,648 | ||||||
| Interest paid | (223,614 | ) | - | |||||
| Proceeds from convertible debt, net of issuance costs | - | 8,923,994 | ||||||
| Proceeds from equity issuances | 13,457,414 | - | ||||||
| Lease liabilities | - | (639,096 | ) | |||||
| Proceeds from loan | 4,970,269 | - | ||||||
| Repayment of loan | (2,245,479 | ) | (170,000 | ) | ||||
| Net Cash Provided by Financing Activities | 16,108,632 | 8,841,546 | ||||||
| Effect of Exchange Rate Changes on Cash | (115,896 | ) | (650,176 | ) | ||||
| Net (Decrease) in Cash | (114,424 | ) | (3,096,135 | ) | ||||
| Cash - Beginning of year | 614,753 | 5,720,569 | ||||||
| Cash - End of period | 500,329 | 2,624,432 | ||||||
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, 2024 | June 30, 2023 | December 31, 2023 | December 31, 2022 | ||||||||||||
| Revenue | 4,880 | 11,796 | 23,063 | 18,194 | ||||||||||||
| Cost of revenue | (3,150 | ) | (5,593 | ) | (11,127 | ) | (9,555 | ) | ||||||||
| Gross profit | 1,730 | 6,203 | 11,936 | 8,639 | ||||||||||||
| Other Operating Income | 19 | 4 | 344 | 144 | ||||||||||||
| Operating Expenses | (10,826 | ) | (15,369 | ) | (48,347 | ) | (51,121 | ) | ||||||||
| Operating Loss | (9,077 | ) | (9,162 | ) | (36,067 | ) | (42,338 | ) | ||||||||
| Other income | 48 | 68 | 32,981 | 418 | ||||||||||||
| Other Expense | (224 | ) | (2,005 | ) | (3,704 | ) | (15,151 | ) | ||||||||
| Net Loss Before Tax | (9,253 | ) | (11,099 | ) | (6,790 | ) | (57,070 | ) | ||||||||
| Tax Expense | - | 325 | 1,079 | 1,063 | ||||||||||||
| Net Loss After Tax | (9,253 | ) | (10,774 | ) | (5,711 | ) | (56,007 | ) | ||||||||
| Other Comprehensive Income | 428 | (600 | ) | (204 | ) | 290 | ||||||||||
| Total Loss | (8,825 | ) | (11,374 | ) | (5,915 | ) | (56,297 | ) | ||||||||
| Net income per share, basic and diluted | (0.84 | ) | (3.20 | ) | (1.00 | ) | (24.7 | ) | ||||||||
| Weighted-average number of shares outstanding, basic and diluted | 11,009,270 | 3,366,848 | 5,550,197 | 2,263,437 | ||||||||||||
| Unaudited Financials Six Months Ended, (USD 000's) | Audited Financials Year Ended (USD 000's) | |||||||||||
| June 30, 2024 | December 31, 2023 | December 31, 2022 | ||||||||||
| Summary Balance Sheet Data: | ||||||||||||
| Total current assets | 41,155 | 9,634 | 24,251 | |||||||||
| Total non-current assets | 37,147 | 33,580 | 67,009 | |||||||||
| Total Assets | 78,302 | 43,214 | 91,260 | |||||||||
| Total current liabilities | 16,334 | 17,248 | 23,378 | |||||||||
| Total non-current liabilities | 7,340 | 6,251 | 53,927 | |||||||||
| Total Liabilities | 23,674 | 23,499 | 77,305 | |||||||||
| Total Shareholders' Equity | 54,628 | 19,715 | 13,955 | |||||||||
| Total Liabilities and Shareholders' Equity | 78,302 | 43,214 | 91,260 | |||||||||
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, 2024 | June 30, 2023 | December 31, 2023 | December 31, 2022 | |||||||||||||
| Net (Loss) | (9,253 | ) | (10,775 | ) | (5,711 | ) | (56,007 | ) | ||||||||
| Tax Expense | - | (325 | ) | (1,079 | ) | 1,064 | ||||||||||
| Interest Expense, net | 224 | 1,999 | 3,695 | 1,312 | ||||||||||||
| Depreciation and Amortization | 1,020 | 1,209 | 3,271 | 2,351 | ||||||||||||
| Legal expense (non recurring) | 531 | - | 1,178 | - | ||||||||||||
| Impairments | - | - | 15,372 | 28,246 | ||||||||||||
| Revaluation adjustment of Contingent Liabilities | - | - | (32,775 | ) | 13,838 | |||||||||||
| Stock Based Compensation | 619 | 403 | 10 | 1,309 | ||||||||||||
| Bad Debt Provision | 210 | 170 | 2,822 | 1,509 | ||||||||||||
| Adjusted EBITDA | (6,650 | ) | (7,319 | ) | (13,217 | ) | (8,505 | ) | ||||||||
Contacts
Investors:
Investor Relations Team
Email: investor@geniusgroup.net
Media Contacts:
MZ Group - MZ North America
(949) 259-4987
GNS@mzgroup.us
www.mzgroup.us
