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GENIUS GROUP LIMITED AND SUBSIDIARIESCONDENSED 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 SUBSIDIARIESCONDENSED 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 SUBSIDIARIESCONDENSED 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.
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.
