Q4 2022 Genius Group Limited Earnings Call

June 6, 2023

Operator 1: Greetings. Welcome to the Genius Group Full Year 2022 Financial Results. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. I will now turn the conference over to your host, Flora Hewitt, Vice President of Investor Relations, Mergers, and Acquisitions. You may begin.

Operator: Greetings. Welcome to the Genius Group Full Year 2022 Financial Results. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. I will now turn the conference over to your host, Flora Hewitt, Vice President of Investor Relations, Mergers, and Acquisitions. You may begin.

Speaker 2: Greetings. Welcome to the Genius Group full year 2022 financial results. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.

Speaker 2: I will now turn the conference over to your host, Flora Hewitt, Vice President of Invested Relations, Mergers, and Acquisitions. You may begin.

Flora Hewitt: Hi, everyone, and thank you for joining our Full Year 2022 Earnings Conference Call. With me today is Roger Hamilton, Genius Group's Chief Executive Officer, and Erez Simha, our Chief Financial Officer. Following the prepared remarks, we will open the call for questions. Our press release, including financial tables, was issued post-market closing, and is posted on our investor relations website, geniusgroup.net, where this call is being simultaneously webcast and where versions of our prepared remarks and supplemental slides are available. During this call, we will present both IFRS and non-IFRS financial measures. Please note that all growth percentages refer to year-on-year change unless otherwise specified. Additionally, all statements made during this call relating to future results and events are forward-looking statements based on current expectations.

Speaker 3: Hi everyone and thank you for joining our full year 2022 earnings conference call. With me today is Roger Hamilton, Genius Group's Chief Executive Officer and Erez Sinha, our Chief Financial Officer.

Speaker 3: Following the prepared remarks, we will open the call for questions.

Speaker 3: post market closing and it's posted on our investor relations website located on investorrelations.juniorsgroup.net where this goal is being simultaneously webcast and where versions of our prepared remarks and supplemental slides are available.

Speaker 3: During this goal, we will present both IFRS and non-IFRS financial measures. Please note that all gross percentages refer to year-on-year change unless otherwise specified.

Speaker 3: Additionally, all statements made during this call relating to future results and events are forward-looking statements based on current expectations.

Flora Hewitt: The forward-looking statements include, but are not limited to, statements regarding trends and their potential impact on our industry and our business, our ecosystem, platform, content, and partner relationships, our strategy and priorities, and our business model, mission, opportunities, outlook, and long-term financial framework. Actual results and events could differ materially from projections due to a number of risks and uncertainties discussed in our press release, SEC filings, and supplemental materials. These forward-looking statements are not guarantees of future performance and plans, and investors should not place undue reliance on them. We assume no obligation to update our forward-looking statements. With that, I'd like to turn it over to Roger.

Speaker 3: The forward-looking statements include but are not limited to statements regarding trends and their potential impact on our industry and our business, our ecosystem, platform, content and partner relationships, our strategy and priorities, and our business model, mission, opportunities, outlook, and long-term financial framework.

Speaker 3: Actual results and events could differ materially from projections due to a number of risks and uncertainties discussed in our press release, SDG filings, and supplemental materials. These forward-looking statements are not guarantees of future performance and plans, and investors should not place energy reliance on them.

Speaker 3: We assume no vacations to update our forward-looking statement. With that, I'd like to turn it over to Roger.

Roger Hamilton: Thank you, Flora, and good morning, everyone. Or good evening, wherever you are. First, I'd like to apologize for the delay in releasing our full year results. Due to the complexity of accounting treatment to write down the value of our recent acquisitions to align with our low share price and market cap in December 2022, our audit took longer than planned and this is the reason for the delay. However, our CFO, Erez Simha, will provide more details on this following my business summary. Genius Group has had a great year and we're excited to share the results with you today. I'm gonna start with a quick recap of the year, and we have come a long way since the IPO in April 2022.

Speaker 4: Thank you Flora and good morning everyone, or good evening wherever you are. First, I'd like to apologize for the delay in releasing our four-year results. Due to complexity of accounting treatment to write down the value of our recent acquisitions to line with our low share price and market cap in December 2022, we are currently in the mid-20th century.

Speaker 4: Our order took longer than planned and this is the reason for the delay. However, our CFO , Arisima, will provide more details on this following my business summary. Genius Group has had a great year and we're excited to share the results with you today. I'm going to start with a quick recap of the year and we have come a long way since the IPO in April 2022.

Roger Hamilton: We have established a strong leadership team with Erez Simha as our Chief Financial Officer and Rav Karwal as our Chief Revenue Officer. We've also got Richard Berman and Tim Murphy joining as new directors. These individuals bring a wide range of diversified corporate experience, which helped drive the growth of our business last year, and this continues in 2023. We have completed 5 acquisitions, the University of Antelope Valley, Property Investors Network, Education Angels, E-Squared, and Revealed Films, and we're in the process of integrating them into the Genius Group family, and we'll add their curriculum onto GeniusU. In 2022, GeniusU was named as a top 10 emerging giant in one of KPMG's reports, and we've signed a partnership with NASA as our sister UAV. We also gave details about each of these milestones in our previous earnings calls.

Speaker 4: wrote about business last year and this continues in 2023. We have completed five acquisitions, the University of Antelope Valley, Property Investors Network, Education Angels, eSquared and Revealed Films and we're in the process of integrating them into the Genius Group family. We'll add their curriculum onto GeniusU.

Speaker 4: In 2022, Jimmy Su was named as a top 10 emerging giant in one of KPMG's reports, and we signed a partnership with NASA as our social UAV. And we also gave details about each of these milestones in our previous earning course. So I invite you all to listen to our archive recordings for more information. Our achievements translate directly into the growth of students and partners.

Roger Hamilton: I invite you all to listen to our archive recordings for more information. Our achievements translate directly into the growth of students and partners that are joining our platform. First, let's focus on GeniusU. GeniusU increased in total numbers of students from 2.7 million in 2021 to 3.1 million in 2022, which represents a 17% growth year-on-year, and an average of 8,500 students joining the GeniusU platform each week in 2022. We've seen growth in the number of students on GeniusU in the range of 10% to 20% per year, and this growth is primarily due to three factors, organic growth through word-of-mouth and referrals, partners and our acquisitions attracting new students, and direct growth from paid digital advertising.

Speaker 4: that are joining our platform. First, let's focus on GeniusU. GeniusU increased in total numbers of students from 2.7 million in 2021 to 3.1 million in 2022, which represents a 70% growth year-in-year and an average of 8,500 students joining the GeniusU platform each week in 2022.

Speaker 4: We've seen growth in the number of students on GDSU in the range of 10 to 20% per year, and this growth is primarily due to three factors. Organic growth through word of mouth and referrals, partners and our acquisitions attracting new students, and direct growth from paid digital advertising. We have historically spent a low amount on advertising as we relied on word of mouth referrals and partners.

Roger Hamilton: We have historically spent a low amount on advertising as we've relied on word-of-mouth referrals and partners, but we plan on increasing marketing spend in the next few years to accelerate growth. GeniusU operates on a freemium model, where the majority of students receive free education from which a percent opt in to upgrade to paying students. Of the 3.1 million students on GeniusU in 2022, 3.06 million were free students, and 43,000 were paying students. In comparison, GeniusU had 37,000 paying students in 2021, which implies a 15% growth in paying students year-on-year. It also means that in 2022, GeniusU attracted 444,290 new students and 5,755 new paying students, representing a 1.3% conversion rate.

Speaker 4: 3.06 million were free students and 43,000 were paying students. In comparison, Genius U had 37,000 paying students in 2021, which implies a 15% growth in paying students year and year. It also means that in 2022, Genius U attracted 444,219 new students, which is

Roger Hamilton: In comparison, our conversion rate from 2019 to 2021 was closer to 1%. This increase in conversion rate reflects improved marketing services and the growing strength of our sales team. We expect the improvement in conversion rate to be an important factor in the growth of paying students in the years to come. Overall, pro forma numbers for the group, including the acquisitions, reflected a 58% growth in total students and users in 2022 compared to 2021, with paying students and users growing by 137% in 2022 to 171,919 paying students. As we integrate the acquisitions, we're introducing our GeniusU freemium model into their student pathways as we introduce free courses and our student conversion model to the three acquisitions that have a more traditional education model.

Speaker 4: and 5,755 new paying students representing a 1.3% conversion rate. In comparison, our conversion rate from 2019 to 2021 was closer to 1%. This increase in conversion rate reflects improved marketing services and the growing strength of our sales team. We expect the improvement in conversion rate to be an important factor for growth of paying students.

Speaker 4: in the years to come. Overall, pro forma numbers for the group, including the acquisitions, reflected a 58% growth in total students and users in 2022 compared to 2021, with paying students and users growing by 137% in 2022 to 171,919% in 2021.

Speaker 4: paying students. As we integrate the acquisitions, we're introducing our GeniusU freemium model into their student pathways as we introduce free courses and our student conversion model to the three acquisitions that have a more traditional education model. These are UAB, Education Angels, and eSquad.

Roger Hamilton: These are UAV, Education Angels, and E-Squared. Currently, these three companies rely on enrollment directly into a full-time paid service or course, and as a result, they have a much lower student numbers at present. With this integration, we'll see great potential for student and revenue growth. The number of partners in GeniusU grew from 10,200 in 2021 to 13,000 in 2022, which represents a 27% growth year-on-year. Pro forma numbers for the group, including the acquisitions, grew from 11,400 in 2021 to 14,700 in 2022, which represents a 29% growth in total partners. We see the number of partners as a key measure for the scalability and the delivery of the Genius curriculum.

Speaker 4: Currently, these three companies rely on enrollment directly into a full-time paid service or course and as a result, they have a much lower student numbers at present. With this integration, we'll see great potential for student and revenue growth.

Speaker 4: The number of partners in GeniusU grew from 10,221 to 13,000 in 2022, which represents a 27% growth year on year. And performing numbers for the group, including the acquisitions, grew from 11,400 in 2021 to 14,722 in 2022, which represents a 29% growth year on year.

Speaker 4: in total partners.

Roger Hamilton: As each partner attracts their own students to GeniusU and as partners are joining from all parts of the world, we're able to overcome the two largest bottlenecks to the growth of most education companies, which is location and teachers. Going forward, we expect a growth of 10% to 20% in partners each year as we're maintaining a balance between growth and quality. As the 5 acquisitions this year are instrumental to our strategy, and as the integration process is currently ongoing, I believe that providing more color to this topic may be beneficial to all of you and for you to understand the potential synergies in more details. I'll use the integration of Entrepreneurs Institute into Genius Group as an example. Prior to its acquisition, Entrepreneurs Institute was delivering in-person events and mentoring to entrepreneurs. Student attendance was limited to where events and courses were held.

Speaker 4: We see the number of partners as a key measure for the scalability and the delivery of the Genius curriculum. As each partner attracts their own students to GeniusU and as partners are joining from all parts of the world, we are able to overcome the two largest bottlenecks to the growth of most education companies, which is location and teachers. Going forward, we expect a growth of 10 to 20 percent in partners each year as we are maintaining a balance.

Speaker 4: between growth and quality. As the five acquisitions this year are instrumental to our strategy and as the integration process is currently ongoing, I believe that providing more color to this topic may be beneficial to all of you and for you to understand the potential synergies in more details. I'll use the integration of Entrepreneur Institute into Genius Group as an example.

Speaker 4: Prior to its acquisition, Entrepreneurs Institute was delivering in-person events and mentoring to entrepreneurs. Student attendance was limited to where events and courses were held, course sizes were limited to the new space available, and the number of courses was limited to the number of faculty members who could teach.

Roger Hamilton: Course sizes were limited to venue space available, and the number of courses was limited to the number of faculty members who could teach. Following the acquisition, Entrepreneurs Institute courses and products were fully integrated into GeniusU. Students were able to join from anywhere at any time. Courses were digitized to be delivered part recorded and part facilitated. Faculty were able to join and get certified to deliver the courses from anywhere around the world. The conversion of Entrepreneurs Institute from an event-based training company to a freemium edtech model has resulted in an increased student intake from an average rate of less than 50 new students per week to over 2,000 students per week as of 31 December 2022. Also, an increased event registration from less than 1,000 attendees per year to over 20,000 attendees per year as of 31 December 2022.

Speaker 4: Following the acquisition, Onchiran Institute courses and products were fully integrated into GeniusU. Students were able to join from anywhere at any time, courses were digitized to be delivered part recorded and part facilitated, and faculty were able to join and get certified to deliver the courses from anywhere around the world. The conversion of Onchiran Institute from an event based training company was a great

Speaker 4: To a premium EdTech model has resulted in an increased student intake from an average rate of less than 15 new students per week to over 2000 students per week as of December thirty-first 2000 and twenty-two. Also, an increased event registration from less than 1010 dees per year to over two thousand andatten dees per year as of December thirty-first 2000 and twenty-two.

Roger Hamilton: We attracted over 1,000 faculty members that became flow consultants and performance consultants globally, as well as attracting country partners translating and delivering the courses in Japanese, Chinese, Thai, Mongolian, Spanish, French, Swedish, Polish, and Czech, and over 50 city leaders who are hosting regular events and online communities while marketing Entrepreneurs Institute products and courses in their cities. The model that we use to acquire, integrate, digitize, and distribute the courses and certifications for Entrepreneurs Institute is the model that we're now repeating for the 5 acquisitions that we made in 2022, with the goal of reducing the average marketing cost per student cost, increasing the student and partner intake and increasing the average revenue per student and partner. Prior to the completion of the 4 IPO acquisitions, each of the companies had been delivering certification and degree programs to the students in their respective locations.

Speaker 4: and we attracted over 1,000 faculty members that became flow consultants and performance consultants globally, as well as attracting country partners translating and delivering the courses in Japanese, Chinese, Thai, Mongolian, Spanish, French, Swedish, Polish, and Czech, and over 50 city leaders who are hosting regular events and online communities.

Speaker 4: while marketing entrepreneurs institute products and courses in their cities.

Speaker 4: The model that we use to acquire, integrate, digitize, and distribute the courses and certification for entrepreneurs in SHU is the model that we're now repeating for the five acquisitions that we made in 2022 with the goal of reducing the average marketing cost per student cost, increasing the student and partner intake, and increasing the average revenue per student and partner. Prior to the completion of the four IPO acquisitions, each of the companies...

Roger Hamilton: Students based in Lancaster for UAV, students in New Zealand for Education Angels, students in South Africa for E-Squared, and students from the UK for PIN. Since the completion of the acquisitions of these four companies, we're in the process of integrating each company's various certification and degree programs on GeniusU. This will enable us to provide an education offering from early childhood students all the way to adult learners, while linking our GeniusU conversion model to their products and courses. We believe that this integration model will result in multiple benefits, including the growth of our global student, partner, and faculty community globally, and the distribution of each company's courses around the world.

Speaker 4: had been delivering certification and degree programs to the students in their respective locations.

Speaker 4: Students based in Lancaster for UAB, students in New Zealand for Education Angels, students in South Africa for E2, and students in the UK for PIM.

Speaker 4: Since the completion of the acquisitions of these four companies, we're in the process of integrating each company's various certification and degree programs on GeniusU. This will enable us to provide an education offering from early childhood students all the way to adult learners, while linking our GeniusU conversion model to their products and courses.

Speaker 4: We believe that this integration model will result in multiple benefits, including the growth of our global student, partner and faculty community globally, and the distribution of each company's courses around the world.

Roger Hamilton: It will also enable us to provide our faculty with the option of teaching courses to students of all ages, either online or in person, with a small group or at any one of our campus venues with a large group. This flexibility in delivery for both faculty and students is an important part of our vision for our Genius curriculum. Moreover, UAV is our global center for curriculum development, and our long-term aspiration is to expand the campus to include innovation labs, accelerator camps, and courses delivered for all education stages of our lifelong learning curriculum. With regard to our fifth acquisition, Revealed Films, this acquisition is a good example of our acquisition strategy to target media companies that strengthen our premium model, as well as education companies that grow our accreditations, product, and course offerings.

Speaker 4: It will also enable us to provide our faculty with the option of teaching courses to students of all ages, either online or in person with a small group, or at any one of our campus venues with a large group. This flexibility and delivery for both faculty and students is an important part of our vision for our genius curriculum.

Speaker 4: Moreover, UAB is our global center for curriculum development and our long-term aspiration is to expand the campus to include innovation labs, accelerator camps, and courses delivered for all education stages of our lifelong learning curriculum.

Speaker 4: With regard to our fifth acquisition, Reveal Films, this acquisition is a good example of our acquisition strategy to target media companies that strengthen our premium model as well as education companies that grow our accreditations, product and course offerings.

Roger Hamilton: Prior to the acquisition, Revealed Films had been focused on producing documentaries and docuseries that are initially free to view and then lead to an upgrade to low-cost products and courses. This has resulted in a viewer database in the millions with a low revenue per viewer. We plan to integrate Revealed Films' film format model as a front-end pathway into GeniusU's lifelong learning pathways, turning viewers into students and increasing the lifetime value of each. Upcoming Revealed Films documentaries such as AI Revolution, that lead viewers to courses on GeniusU to master and use AI in their education, businesses, and investments, we believe will demonstrate the power of linking media, entertainment, and education. In terms of corporate actions, we announced in November 2022 that we had hired law firms to investigate the market activity on our stock.

Speaker 4: Prior to the acquisition, Redfield Films had been focused on producing documentaries and docuseries that are initially free to view and then lead to an upgrade to low-cost products and courses.

Speaker 4: This has resulted in the viewer database in the millions with a low revenue per viewer. We plan to integrate Reveal Films film format model as a front-end pathway into GeniusVue's lifelong learning pathways, turning viewers into students and increasing the lifetime value of each. We plan to integrate Reveal Films film format model as a front-end pathway into GeniusVue's

Speaker 4: Upcoming revealed film documentaries such as AI Revolution that lead viewers to courses on Genius U to mastering use AI in their education, businesses and investments.

Speaker 4: we believe will demonstrate the power of linking media, entertainment and education.

Speaker 4: In terms of corporate actions, we announced in November 2022 that we had hired law firms to investigate the market activity on our stock.

Roger Hamilton: The initial results of the investigation indicated that certain individuals and companies appeared to be part of a market manipulation scheme which artificially depressed the price of Genius Group shares. We decided to establish in January 2023 an illegal trading task force and launch legal action against those individuals and companies to seek to recover liquidated damages for the cost incurred to the company and to preserve shareholder value. This action is ongoing. We also implemented a list of corporate actions to address this issue. We organized an extraordinary general meeting in February 2023, where resolutions for a share buyback and a share consolidation were passed by shareholders. The company will only implement such resolutions if necessary and if it increases shareholder value.

Speaker 4: The initial results of the investigation indicated that certain individuals and companies appeared to be part of a market manipulation scheme which artificially depressed the price of Genius Group shares. We then decided to establish in January 2023 an illegal trading task force and launch legal action against those individuals and companies to seek to recover liquidated damages for the cost incurred to the company and to preserve shareholder value.

Speaker 4: We also implemented a list of corporate actions to address this issue. We organized an extraordinary general meeting in February 2023, where resolutions for a share buyback and a share consolidation were passed by shareholders. The company will only implement such resolutions if necessary and if it increases shareholder value. As an initiative to increase visibility of our shares and shareholders.

Roger Hamilton: As an initiative to increase visibility of our shares and shareholders, and to give shareholders the option of having their shares on the blockchain where they cannot be shorted, we issued a $10 digital discount coupon per share to all shareholders in March 2023 and dual-listed Genius Group in April 2023 on Upstream Exchange, a fully regulated global stock exchange for digital securities and NFTs. We also settled litigation with our lenders in an amicable settlement, canceling 36 million convertible note conversions and reaching an agreement between Genius Group and the lending party to invest in our next offering. Lastly, the board approved the spin-off of Entrepreneur Resorts Limited, which will provide all of Genius Group shareholders on the count date with shares in Genius Group's subsidiary, Entrepreneur Resorts Limited, which is listed on the MERJ Exchange in the Seychelles.

Speaker 4: for digital securities and NFTs.

Speaker 4: We also settled litigation with our lenders in an amicable settlement canceling 36 million convertible note conversions and Reaching an agreement between Genius Group and the lending parties to invest in our next offering and lastly The board approved the spin-off of entrepreneur resource limited which will which will fight all of genius group shareholders on the count date

Speaker 4: with shares in Genius Groups of Century, Entrepreneur Resource Limited, which is listed on the Merge Stock Exchange in the Seychelles. The spinoff was approved by shareholders during the extraordinary general meeting which took place on the 16th of May, 2023. The spinoff of Entrepreneur Resource will help streamline and rationalize the group's operations into Genius Group Limited with its EdTech focus and Entrepreneur Resource Limited with its hospitality focus under new ownership.

Roger Hamilton: The spin-off was approved by shareholders during the extraordinary general meeting, which took place on 16 May 2023. The spin-off of Entrepreneur Resorts will help streamline and rationalize the group's operations into Genius Group Limited with its edtech focus and Entrepreneur Resorts Limited with its hospitality focus under new ownership, which will enable each management team to grow their respective businesses more effectively, and it will also result in a full share count of bona fide Genius Group shares on the count date. Looking forward, our theme for 2023 is the AI revolution. From the launch of Genius Group, we have anticipated a period when education will be transformed by AI, with every mentor and student having a personalized path to learning with an AI assistant.

Speaker 4: which will enable each management team to grow their respective businesses more effectively and it will also result in a full share count of Bonafide Team Inscript shares on the count date.

Speaker 4: Looking forward, our theme for 2023 is the AI revolution. From the launch of Genius Group, we have anticipated a period when education will be transformed by AI with every mentor and student having a personalized path to learning with an AI assistant. With the launch of GPT-3, GPT-4, and now AutoGPT, and the AI platforms all the major technology companies that are watching 2023.

Roger Hamilton: With the launch of GPT-3, GPT-4, and now AutoGPT, and the AI platforms, all the major technology companies that are launching in 2023, we are accelerating our AI plans. While there are schools and universities banning students from using ChatGPT and other artificial intelligence tools, we believe that new education systems will arise, and we expect all students to use AI. We believe the future of learning and the skills, jobs, and tasks we are learning for will require a high-tech, high-touch approach, which relies not only on the growth of AI, but the growth of our human intelligence as well to harness and pilot that artificial intelligence. This combination of AI and HI, we believe, can combine to create SI, superhuman intelligence. We believe that there is a significant opportunity for education companies to address this growing need and demand for global platforms for superhuman learning.

Speaker 4: We are accelerating our AI plans.

Speaker 4: While there are schools and universities banning students from using CharTPT and other artificial intelligence tools, we believe that new education systems will arise and we expect all students to use AI. We believe the future of learning and the skills, jobs and tasks we are learning for will require high tech.

Speaker 4: high touch approach which relies not only on the growth of AI but the growth of our human intelligence as well to harness and pilot that artificial intelligence. This combination of AI and HI we believe can combine to create SI, superhuman intelligence. We believe that there is a significant opportunity for education companies to address this growing need and demand for global platforms for superhuman learning.

Roger Hamilton: Our plan this year is to combine the AI capabilities of GPT-4 with the AI capabilities of Salesforce's Einstein AI to power Genius Group's Genie AI Virtual Assistant on GeniusU. Our Genie AI provides personalized pathways for students based on their talents, passions, purpose, and interests and will be linked to their assessment results and course progress, will also enable educators to constantly generate and update the curriculum. Now, we launched the alpha version of our Genie AI in Q1 this year, and launched the beta version to all GeniusU students last week at our AI Investor Summit. We plan on new versions of our Genie AI regularly to consistently improve the experience of our users. In addition, we are planning to make the use of artificial intelligence a requirement as part of our curriculum to ensure that all the students learn and embrace this new technology.

Speaker 4: Our plan this year is to combine the AI capabilities of GPC4 with the AI capabilities of Salesforce's Einstein AI to power Genius Group's Genie AI virtual assistant on GeniusU.

Speaker 4: Our Genie AI provides personalized pathways for students based on their talents, passions, purpose and interests and will be linked to their assessment results and course progress. We will also enable educators to constantly generate an updated curriculum and we launched the alpha version of our Genie AI in Q1 this year and launched the beta version to all Genie2 students last week at our AI investor summit. We plan on new versions of our Genie AI regularly to continuously improve our teachers' learning and learning opportunities. So, thank you very much for joining us this week and we look forward to seeing you in the next video. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you.

Roger Hamilton: We plan to integrate artificial intelligence within our curriculum and make learning with an AI assistant compulsory, and we're expecting our successful edtech companies to follow suit. The second strategic project that we're continuing to focus on is our Genius Metaversity. You already heard some details in the past earnings result calls about our plans on creating a Metaversity, which will combine gamified learning, a digital credit system, and augmented reality within a virtual engaging environment. This project is core to our vision, as we believe that Web 3.0 and the Metaverse will provide students and teachers with an enhanced way to interact and learn in a global classroom. We hosted an Impact Investor Summit last week, where we launched the beta version of our Genius Metaversity with a large audience.

Speaker 4: The strategic project that we're continuing to focus on is our genius, Metaversity.

Speaker 4: You already heard some details in the past earnings results course about our plans on creating a metaversity Which will combine gamified learning a digital credit system and augmented reality within a virtual engaging environment This project is core to our vision as we believe that web3 and the metaverse will provide students and teachers with an enhanced way To interact and learn in a global classroom. We hosted an impact investor summit last week where we launched the beta version

Roger Hamilton: This experience was a great success as we had more than 1,700 participants join our virtual reality event, experiencing the summit in our global classroom, where they could interact with each other, the summit speakers, and our partners from around the world. We'll continue to update the market with news on the progress of this project as the official launch plan continues to be finalized. Our M&A strategy in 2022 was to acquire education and edtech companies of small size, with revenues ranging from $5 million to $20 million. Our strategy has now evolved into acquiring fewer companies with higher values between $50 million and $100 million.

Speaker 4: of our genius metaversity with a large audience. This experience was a great success as we had more than 1,700 participants join our virtual reality event, experiencing the summit in our global classroom where they could interact with each other, the summit speakers, and our partners from around the world. We will continue to update the market with news on the progress of this project as the official launch plan for the summit will be released

Speaker 4: continues to be finalized.

Speaker 4: Our M&A strategy in 2022 was to acquire education and edtech companies of small size with revenues ranging from $5 million to $20 million. And our strategy has now evolved into acquiring fewer companies with high values between $50 million and $100 million. We have also added companies within the media industry as potential targets.

Roger Hamilton: We have also added companies within the media industry as potential targets, as we believe that we could acquire expertise related to our core competency, and great synergies could come out of combining media and education. Each acquisition, whether small or large, takes a similar amount of time and resources to complete. We therefore think that making fewer but larger acquisitions will be more effective and will allow us to grow faster and more efficiently. With regards to our other M&A criteria, we're looking at the same regions, including US, Europe, Asia, and Australia. We want to ensure that each acquisition that we make is not only acquiring services that are complementary, but also accretive for our shareholders. The global education, entertainment, and media markets are highly fragmented, and we believe that there are a wide range of players that could be a great fit for Genius Group.

Speaker 4: as we believe that we could acquire expertise related to our core competency and great synergies to come out of combining media and education.

Speaker 4: Each acquisition, whether small or large, takes a similar amount of time and resources to complete, and we therefore think that making fewer but larger acquisitions will be more effective and will allow us to grow faster, more efficiently.

Speaker 4: With regards to our other M&A criteria, we're looking at the same regions including the US, Europe , Asia and Australia. We want to ensure that each acquisition that we make is not only acquiring services that are complementary but also accretive for our shareholders. Our global education, entertainment and media markets are highly fragmented.

Roger Hamilton: If I was to summarize, there are several key factors that have contributed to positive growth and operational performance in 2022. They are the growth in our student and partner numbers, the global adoption of our Genius curriculum, the improvement and development of new technology on our GeniusU platform, and the ongoing integration of our acquisitions. Considering that 2022 was a challenging year globally for all businesses due to a broad-based economic slowdown, high inflation, multiple interest rate hikes, the war in Ukraine, and the crypto crash, among multiple other factors, and considering that we are still growing at a faster pace than the edtech industry, we're extremely pleased with the growth of Genius Group and its subsidiaries in 2022. Overall, as education is a defensive sector, education continues to be a top-performing industry during economic slowdowns.

Speaker 4: and we believe that there are a wide range of players that could be a great fit for Genius Group. If I were to summarize, there are several key factors that have contributed to positive growth and operational performance in 2022. They are the growth in our student and partner numbers, the global adoption of our junior curriculum,

Speaker 4: the improvement and development of new technology on our Genesee platform, and the ongoing integration of our acquisitions. Considering that 2022 was a challenging year globally for all businesses due to a broad-based economic slowdown, high inflation, multiple interest rate hikes, the war in Ukraine, and a crypto crash among multiple other factors,

Speaker 4: and considering that we are still growing at a faster pace than the air tech industry, we are extremely pleased with the growth of Genius Group and its subsidiaries in 2022. Overall, as education is a defensive sector, education continues to be a top performing industry during economic slowdowns. So we plan to leverage this economic environment to attract new students and grow our platform.

Roger Hamilton: We plan to leverage this economic environment to attract new students and grow our platform. We will also coordinate to partner with high-profile companies implementing strategic projects such as our Genie AI and Genius Metaversity, and further integrate our past acquisitions and realize synergies to continue on this growth trajectory in 2023. Now, I'd like to turn it over to Erez so that he can give an overview of our financial performance.

Speaker 4: and further integrate our past acquisitions and realized synergies to continue on this growth trajectory in 2023.

Speaker 4: Now, I'd like to turn it over to Eric so that he can give an overview of our financial performance.

Erez Simha: Thank you, Roger, and good evening, everyone. I can only echo Roger's messaging about the company's great results this year. We have had strong growth in 2022. This can be seen in growth of revenue in students and partners that Roger presented earlier. The growth trends are stronger in our financial results. During Q1 2023, we updated our revenue recognition policy memo and uncovered an error in the implementation of accounting treatment for certain revenue recognition transactions with a third-party sales partner. We therefore believe that a restatement was necessary for our 2021 results. In accordance with IFRS, the restatement records revenue and expenses net for 2021 sales transactions, where the company was not the clear principal in transaction.

Speaker 4: Thank you Roger and good evening everyone. I can only echo Roger's messaging about the company's great result this year.

Speaker 5: We have had strong growth in 2022. This can be seen in growth of revenue students and partners that Roger presented earlier.

Speaker 5: the growth comes across from our financial results.

Speaker 5: During Q1, 2023, we updated our revenue recognition policy memo and uncovered an error in the implementation of accounting treatment for symptom revenue recognition transactions with a third party cell phone.

Speaker 5: We therefore believe that the statement was necessary for 2021 results. In accordance with IFRS, the restatement records revenue and expenses net for 2021 sales and transactions where the company was not declared principled in transactions. As a result, the restatement decreased revenue in 2021.

Erez Simha: As a result, the restatement decreased revenue in 2021 by $4.5 million, and decreased our cost of revenue by the same amount. In other words, this means that our revenue in 2021 has been restated from $12.8 million to $8.3 million, and our 2021 cost of revenue has been restated from $10 million to $5.5 million. Our 2021 gross profit, EBITDA, cash flow, and net profit has remained the same as what we previously presented to you. The decrease in revenue previously represents higher revenue growth year over year in 2022. Now onto our 2022 results.

Speaker 5: by 4.5 million dollars and decrease our cost of revenue by the same amount.

Speaker 5: In other words, this means that our revenue in 2021 has been reinstated from 12.8 to 8.3 million and our 2021 cost of revenue has been reinstated from 10 million to 5.5 million.

Speaker 5: Our 2021 gross profit, EBITDA, cash flow and net profit has remained the same as what we previously presented to you.

Speaker 5: The decrease in revenue in previous represents higher revenue growth year over year in 2022.

Erez Simha: The audited revenue increased from $8.3 million in 2021 to $18.2 million in 2022, which represents a 119% growth year-over-year. This is a much higher growth rate than the education industry growth rate of 4.3% and the edtech industry growth rate of 16.3%. This tremendous growth this year is a reflection of stable and fast-growing student and user-based growth on our platform and acquisition of new customers through the acquisition that we have closed this year. This growth was driven by an increase in education revenue of 161% from $5.2 million to $13.6 million. An increase in campus revenue by 60% from $3.1 million in 2021 to $4.6 million in 2022.

Speaker 5: Now, onto our 2022 results. The audited revenue increased from 8.3 in 2021 to 18.2 in 2022, which will present a 118% growth year over year. This is a much higher growth rate than the education industry growth rate of 4.3%. This is a much higher growth rate than the education industry growth rate of 4.3%. This is a much higher growth rate than the education industry growth rate of 4.3%.

Speaker 5: and the ad-tech industry growth rate of 16.3%.

Speaker 5: This tremendous growth this year is a reflection of stable and fast-growing student and user-based growth on our platform and acquisition of new customers through the acquisition that we have created here.

Speaker 5: This growth was driven by an increasing educational revenue of 161% from 5.2 to 13.6 million and increasing clean performance by 50% from 3.1 in 2021 to 4.6 in 2022.

Erez Simha: The large increase in educational revenue is divided into two sections. A 56% increase in digital education revenue, driven by a growth in our students and user base, and the return of the in-person education since the completion of the acquisition. The increase in campus revenue is mainly driven by the reopening of our campus venues in line with the easing of pandemic restrictions and customers being more willing to go out and travel. On pro forma basis, Genius Group achieved revenue of $28.1 million in 2022. Our $28.1 million revenue is a combination of $9.5 million in revenue from the pre-IPO group and $18.6 million in revenue from the five acquisitions. As explained earlier, we had to restate our revenue for 2021.

Speaker 5: The large increase in education revenue is divided into two sections. A 56% increase in digital education revenue driven by a growth in our students and user base and the return of in-person education since the completion of the acquisition. The increase in campus revenue is mainly driven by the reopening of our campus venues in line with the easing of pandemic restrictions.

Speaker 5: and customers being more willing to go out and travel. On a performer basis Genius Group achieved a revenue of 28.1 million in 2022.

Speaker 5: Our 28.1 million revenue is a combination of 9.5 million in revenue from the pre-APL group and 18.6 million in revenue from the FIFER acquisition.

Erez Simha: However, 2022 guidance that we had provided to the market was based on the old 2021 revenue accounting treatment, which had expected a similar amount of revenue from that third-party sales partner. Our 2022 pro forma revenue guidance includes approximately $5 million of revenue from this specific partner. Our original 2022 pro forma revenue guidance was $35 to 38 million, and therefore, we believe that it would be more accurate to compare our 2022 results with 2022 pro forma revenue guidance of $30 to 33 million, elimination of those $5 million. With regard to margins, our gross profit margin increased from 33% in 2021 to 47% in 2022.

Speaker 5: As explained earlier, we had had to restate our revenue for 2021. However, 2022 guidance that we have provided to the market was based on the old 2021 revenue counting treatment.

which had expected a similar amount of revenue from that third-party self-partner. Our 2022 Pro Forma Revenue Guidance includes approximately $5 million of revenue from this specific partner.

Our original 2022 performer revenue guidance was 35 to $38 million and therefore we believe that it would be more accurate to compare our 2022 results to the 2022 performer revenue guidance of $30 to $33 million elimination of those five new products.

With regard to margins, our gross profit margin increased from 33% in 2021 to 47% in 2022.

Erez Simha: The increase is a result of inclusion of higher gross margin acquisitions within the group and cost synergy from those acquisitions. Most of the cost synergies came from putting costs from the acquisition companies on GeniusU and using GeniusU's more efficient technology and sales force. On a pro forma basis, our gross margin remained stable at 53%. As we own the majority of the curriculum and courses across all companies, 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 2022, majority of the acquisitions were yet implementing any of the growth strategies utilized by the pre-IPO group.

The increase is the result of concluding higher gross margin acquisitions within the group and cost synergies from those acquisitions. Most of the cost synergies came from putting costs from the acquisition companies on Genesee and using Genesee's more efficient technology and self-promote. On a pro forma basis, our gross margin remains stable.

at 53%. As we own the majority of the code we could room and courses across all companies, we are focused on maintaining a low cost of content in a high gross margin.

The cost of revenue that we're doing here is mainly our customer acquisition costs and our faculty costs.

In 2022, the majority of the acquisitions were yet implementing any of the growth strategies utilized by the pre-APO group.

Erez Simha: As we further integrate the acquisitions into Genius Group family and apply the same customer acquisition strategy within each company, we expect cost of revenue to decrease and gross margin to expand in 2023. The group had operating expenses of $15.5 million in the fiscal year ended December 31, 2022, compared to $7.3 million in 2021. Approximately 56% of our operating expenses is due to goodwill impairment loss of $28.2 million, and the remaining 44% is due to general and administrative expenses. The calculation of the impairment loss on goodwill is closely linked to the company's market capitalization as of December 31, 2022.

as we further integrate the acquisitions into Genius Group family and apply the same customer strategy within each company.

We expect cost of revenue to decrease and growth margin to expand in 2023.

The group had operating expenses of 15.5 million in the fiscal year ended December 31, 2022, compared to 7.3 million in 2021. Approximately 56% of operating expenses is due to goodwill impairment loss of 28.2 million and the remaining 44%.

is due to general and administrative expenses. The calculation of the internment loss on goodwill is closely linked to the company's market capitalization as of December 31, 2022. As Genius Group share price decreased to less than $0.50 in December 2022, it had an impact on the amount of internment loss and goodwill.

Erez Simha: As Genius Group share price decreased to less than $0.60 in December 2022, it had an impact on the amount of impairment loss and goodwill. The company recorded a total of $28.2 million. Company administrative expenses of $21.1 million include cost of our staff, professional and consulting fees, development costs, share-based compensation, marketing, rental, and general expenses. The increase in our operating expenses from 2020 to 2021 is the result of the growth in our operations, increased costs due to the return to the physical events, the expansion of our curriculum and IPO, legal, and listing expenses. On a pro forma basis, the group had operating expenses of $57 million in 2022.

The company recorded a total of $28.2 million. Company administrative expenses of 21.1 include cost of our staff, professional and consulting fees, development costs, share-based compensation, marketing, rental and general expenses. We are increasing our operating expenses from 20 to 21.

is the result of the growth in our operations, increased costs due to the return to the physical events, the expansion of our curriculum and IPO, legal and listing expenses. On a pro-forma basis, the group had an operating expense of 50,000 million in 2022.

Erez Simha: As we continue integrating the acquired company with the Genius Group family, we are expecting a decrease in costs across the group in each of the acquired companies. Such cost reduction will mainly come from synchronization and also standardization of processes and centralization of certain functions. The group had additional income of $0.4 million in 2022, as per the audited accounts of $1.2 million on the pro forma basis. This additional income is the result of recording $0.8 million benefit from the write-off of a loan from the pre-acquisition owner, compared to $1.2 million in additional income for forgiveness of a note payable through the Paycheck Protection Program under the CARES Act in 2021.

As we continue integrating the acquired company with the genius group family, we are expecting a decreasing cost across the group in each of the acquired companies. Such cost reduction will mainly come from synchronization of processes and simplization of certain functions. The group had...

Additional income of $0.4 million in 2022 has brought the audited account of $1.2 million on the performer basis.

This additional income is the result of recording 0.8 million benefits from the write-off of a loan from the pre-acquisition owner, compared to 1.2 million in additional income for forgiveness of a not payable through the Paycheck Protection Program under the CARE Act in 2021.

Erez Simha: The group also had $15.2 million in other expenses in 2022, compared to $0.5 million in 2021. The increase was due mainly to a change in fair value of contingent consideration of $14.8 million, and interest expenses with convertible loan of $1.3 million. On the pro forma basis, we had $15.2 million in other expenses. This resulted in the group having a net loss after tax of $55.3 million in 2022 in the audited accounts, compared to a loss of $4.5 million in 2021. On the pro forma basis, the loss was $54.9 million in 2022.

The group also had $15.2 million in other expenses in 2022 compared to $0.5 million in 2021.

The increase was due mainly to a change in sale value of competent considerations.

of 14 and 13.8 million and interest expenses of convertible loan of 1.3 million. On the performer basis we had 15.2 million in other expenses.

This results in the group having a net loss after tax of $55.3 million in 2022 in the audited account compared to a loss of $4.5 million in 2021. On the performer basis, the loss was $54.9 million in 2020. What a result it should be.

Erez Simha: Such result should, of course, be adjusted for one-time, irregular, and non-recurring items. As such, the items which increased our operating expenses, including the revaluation adjustment of contingent liability, goodwill impairment, and others need to be taken out of the calculated adjusted EBITDA. On such basis, our adjusted EBITDA is -$7.8 million on our audited account and -$7.3 million on a pro forma basis. In 2023, we expect to improve our EBITDA as we recalibrate our cost for the post-pandemic environment, realize cost synergies from the integration of the acquired company. I will now be discussing our balance sheet and cash performance. The group's current assets increased to $24.3 million.

of course be adjusted for one time, irregular and non-recurring items. As such, the items which increase our opening expenses, including the revaluation adjustment of contingent liability, goodwill impairment and other needs to be taken out of the calculated adjusted dividend.

Our adjusted EVDA is 7.8 million loss on our audited account and 7.3 loss on a performer basis. In 2023 we expect to improve our EVDA as we recalibrate our costs for the post pandemic environment and realize cost energies from the integration of the acquired company. I will now be discussing our balance sheet in cash performance.

Erez Simha: The largest current asset item on our group is cash and cash equivalents of $5.7 million, unrestricted cash of $11.1 million, and accounts receivable of $4.9 million. The group pro forma non-current assets grew from $11.1 million in 2021 to $67 million in 2022, mainly due to the five acquisition. The non-current assets are largely the result of goodwill, intangible assets, and right-of-use assets related to the acquisition. The group pro forma current liabilities increased from $7.1 million in 2021 to $23.4 million in 2022, with the largest item being deferred revenue of $6.4 million, convertible debt obligation of $5.8 million, and accrued expenses of $3.8 million.

The group current assets increased to $24.3 million. The largest current assets earned on our group is cash in cash equivalents of $5.7 million, restricted cash of $11.1 million and accounts receivable of $4.9 million. The group performer non-current assets grew from $11.1 million to $12.5 million.

in 2021 to 67 in 2022, mainly due to the Fife acquisition. The non-current assets are largely the result of goodwill in tangible assets and right of views assets related to the acquisition.

The group of former account liabilities increased from $7.1 million in 2021 to $23.4 million in 2022, which is the largest item being the third revenue of $6.4 million, considerable debt, an obligation of $5.8 million and accrued expenses of $3.8 million.

Erez Simha: The group pro forma non-current liability increased from $2.5 million to $53.9 million due to an increase in operating lease liability, derivative liability related to call options, and contingent liability as a result of multiple acquisitions. The group shareholders equity group grew from $8 million to $14 million. Our principal sources of liquidity are our cash and cash equivalents, short-term investments, and cash generated from operations. We have funded our operations primarily through cash flow from operations and have raised capital for the purpose of business acquisitions and development of technology platforms. In April 2022, the company completed its IPO and listing on NYSE American. Total gross proceeds from IPO was $22.5 million, which was used to pay the IPO expenses, acquisitions payouts, and growth of the business.

The group performance non-count liability increased from 2.5 million to 53.9 million due to an increase in operating lease liability and derivative liability related to call options and contingent liability as a result of multiple acquisitions.

The group shareholders' equity group grew from $8 million to $14 million. Our principal sources of liquidity are cash and cash equivalent, short-term investments, and cash generated from operations.

We have funded our operations primarily through cash, platform operations, and have raised capital for the purpose of business acquisition and development of technology platforms. In April 2022, the company completed its IPO enlisting on New York Stock and Trade. Total gross proceeds from IPO was $22.5 million.

Erez Simha: Further, in September 2022, the company closed convertible round of $70 million, of which gross proceeds of $5.8 million was received in the cash and cash equivalents during the year of 2022. To the extent that current and anticipated future sources of liquidity are insufficient to fund our future business activities and requirements, we may be required to raise additional equity or debt financing. We released our 2023 financial guidance in January 2023, with an estimated student and user base of 5.7 to 6 million, annual revenue of $48 to 52 million, and adjusted EBITDA of $0.5 to 1 million.

which was used to pay the IPO expenses acquisitions pay out and growth of the business. Shared in September 2022 the company closed convertible round of $70 million of which gross proceeds of $5.8 million was receiving cash and cash appearance during the pandemic.

used to pay the IPO expenses, acquisitions payouts, and growth of the business. Shared in September 2022, the company closed convertible rounds of $70 million, of which gross postage of $5.8 million was receiving the cash in cash approval during the year of 2022.

To the extent that current and anticipated future sources of liquidity are insufficient to fund our future business activities and requirements, we will be required to raise additional equity or debt financing. We released our 2023 Financial Guidance in January 2023.

with an estimated student and user base of $5.7 to $6 million, annual revenue of $48 to $52 million, and adjusted EBITDA of $0.5 to $1 million. Our 2023 financial guidance is heavily weighted towards the second half of the year as we accelerate the integration of the acquired companies and expect growing operating leverage driven by top-right synergies from our EdTech platform.

Erez Simha: Our 2023 financial guidance is heavily weighted towards the H2 of the year as we accelerate the integration of the acquired companies and expect growing operating leverage driven by top-line synergies from our edtech platform and digitization of our portfolio of products. Looking forward, the short-term and long-term drivers for our business have not changed. Individuals are increasingly turning to online learning and complement their education and supply themselves with the digital skills required in today's economy. We believe the current trends in the economy, job market, and investment market will lead to an increased demand in entrepreneurial and skill-based education that we provide. In 2023, we are expecting Genius Group to continue its strong growth trajectory, and we are focused on managing our costs and achieving positive EBITDA. We have a strong management team in place.

and digitization of our portfolio products. Looking forward, the short term and long term drivers for business have not changed.

individuals are increasingly turning to online learning and complement their education and supply themselves with the digital skills required in today's economy.

We believe the current trends in the economy's job market and investment market will lead to an increased demand in entrepreneurial and skill-based education that we provide.

So in 2023 we are expecting Genius Group to continue its strong work trajectory and we are focused on managing our costs and achieving positive evidence. We have a strong management team in place. Our integration process is all.

Erez Simha: Our integration process of our five acquisitions in 2022 is underway, and we are looking forward to a successful 2024. With that, we thank you for joining the call, and I would like to open it up now for questions.

of our FICE acquisition in 2022 is underway. And we are looking forward to a successful 2024.

With that, we thank you for joining the call and I would like to open it up now for questions.

Operator 1: At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question comes from the line of Hunter Diamond with Diamond Equity. Please proceed with your question.

Operator: At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question comes from the line of Hunter Diamond with Diamond Equity. Please proceed with your question.

At this time we will be conducting a question and answer session. If you would like to ask a question, please press star one on your cell phone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start key.

Our first question comes from the line of Hunter Diamond with Diamond Equity. Please proceed with your question.

Hunter Diamond: Hi, everyone. Congratulations on the strong results. My question relates to why the shift to the larger acquisitions? Maybe you could describe why you're focused on larger deals and kind of the impetus behind that change.

Hi everyone, congratulations on the strong results. So my question relates to why the shift to the larger acquisitions, maybe you could describe why you're focused on larger deals and kind of the impetus behind that change.

Erez Simha: Hi, Hunter. Thanks very much for the question. It's been very interesting seeing the amount of companies that are on the market at the moment, especially with the depressed prices on companies in general. What we're seeing is that whereas before, there were certainly companies, which includes public listed companies, that wouldn't really consider an acquisition or a merger, we have seen a very big change in mood of that this year. Earlier this year, I started having quite a number of conversations with CEOs of public listed companies. We're not just talking about companies that may be listed in the US, these could be companies that are listed in other parts of the world as well.

Hi, thanks very much for the question. It's been very interesting seeing the amounts of companies that are on the market at the moment, especially with the depressed prices on companies in general.

and what we're seeing is that whereas before, there were certainly companies, which includes public listed companies, that wouldn't really consider an acquisition or a merger. We have seen a very big change in mood of that this year. Earlier this year, I started having quite a number of conversations with CEOs.

Erez Simha: Of course, if you are doing due diligence and going into detail on companies which already are publicly listed themselves, they obviously are larger, but also there's already been a lot more compliance systems, talent that have all been built in those companies as well. Really, this does not mean that the focus on the larger ones means that if good opportunities come along on smaller companies, we won't still consider them. Certainly the market itself, we believe, has changed, and that's allowed us to be able to actually be looking now at these larger potential targets as well.

already are public listed themselves. They obviously are larger, but also there's already been a lot more compliance systems, talent, that have all been built in those companies as well. So really, this does not mean that the focus at the larger ones means that if good opportunities come on smaller companies, we won't still consider them.

but certainly the Market itself we believe the change and that's allowed us to be able to actually be looking now at these larger Potential targets as well

Roger Hamilton: Hope that answers the question.

Erez Simha: Hope that answers the question.

Hunter Diamond: No, makes perfect sense. My second question, and it was a fairly comprehensive call, so I just have two today. In terms of AI, I guess what are you seeing the opportunities in education? I know it's had sort of mixed results on different equities. For instance, Chegg, I think it's sort of had a negative impact. Other companies like Microsoft, NVIDIA, it's been very positive. I mean, I guess just where are you seeing the opportunities in education. How much do you think you're gonna invest your own cash in sort of the R&D of the AI versus kinda leveraging, you know, ChatGPT, other software that's sort of out there, you know, that's fairly robust?

Does that answer the question? No, it makes perfect sense. And my second question, and it was a fairly comprehensive call, so I just have two today, in terms of AI, I guess what are you seeing the opportunities in education? I know it's had sort of mixed results on different equities. For instance, Chegg, I think it sort of had a negative impact on other companies like Microsoft, Nvidia.

it's been very positive. I mean, I guess just where are you seeing, how much do you think you're gonna invest your own cash in sort of the R&D of the AI versus kind of leveraging, you know, Chat GBT, other software that's sort of out there, you know, that's fairly robust? Yeah, that's a great question. And I'll answer that in two parts.

Roger Hamilton: Yeah, that's a great question, and I'll answer that in two parts. The first one is, you're absolutely right. There are companies out there, you know, when you look at all of edtech, there are certainly companies out there who are providing courses or programs, or even accelerated access to doing homework. Like, things that basically in the past, you'd need to be paying subscriptions to get access to various content. Obviously, with ChatGPT, with the way that AI is growing, you don't need that anymore because why go and pay for that content when you're actually able to get it for free? More importantly, if you're getting it from AI that is able to be more personalized for yourself, then even better.

even accelerated access to doing homework, like things that basically in the past you'd need to be paying subscriptions to get access to various content. Obviously with ChatGPT, with the way that AI is growing.

you don't need that anymore because why go and pay for that content when you're actually able to get it for free and more importantly if you're getting it from AI that is able to to be more personalized for yourself then even better so I definitely think there's going to be certain platforms which includes edtech platforms that will find things more challenging as we all start to find AI being more and more useful.

Roger Hamilton: I definitely think there's gonna be certain platforms, which includes edtech platforms, that will find things more challenging as we all start to find AI being more and more useful. There's also the other side, you know, actually, you know, seeing some of the companies that also are really focusing at personalized learning. When I met with Salman Khan from Khan Academy, where he has over 100 million students already, the amount of time and effort they put into having their own basically personalized tutor that can help you along your way. When we basically had a look at what they were doing, we thought that was fantastic as an example.

There's also the other side, you know, actually, you know, seeing some of the companies that also are really focusing at personalized learning. When I met with Simon Kahn from Kahn Academy, where he has over 100 million students already, the amount of time and effort they put into having their own basically personalized tutor that can help you along the way.

Roger Hamilton: We also saw that what we had, which was really a big step up, was the fact that a large amount of the students that come and join us, they come because they want the personalized learning. They take the passion test, they take the genius test that we have, the purpose test. Our Genie AI gets to know exactly who you are. I recommend you give it a go. If you actually go onto GeniusU now, you can straight away see on the left-hand side that Genie is there waiting to speak to you. If you're logged in, it's not like ChatGPT, which basically starts by, like, just being a prompt and asking, you know, what you want to ask. It actually starts, Hi, Roger.

when we basically had a look at what they were doing. We thought that was fantastic as an example. But we also saw that what we had, which was really a big step up, was the fact that a large amount of the students that come and join us, they come because they want the personalized learning. They take the passion test, they take the genius test that we have, the purpose test.

Roger Hamilton: So how can I help you today?" Anything that I ask my Genie, it will give me a different answer too, for example, if you ask your Genie because it's answering based on my passions, my purpose. I can be asking what mentor should I connect with today? Or who's in the city that I'm in at the moment that could help me on my path? It would actually be able to look up everything within GeniusU, everything's permission-based within our community, and give us information which no other AI is able to provide because it's a combination of not just the intelligence of the AI, but also with all the data that the student has actually provided to have a personalized path.

just being a prompt and asking, you know, what you want to ask. It actually starts, hi Roger, so how can I help you today? And anything that I ask my genie, it will give me a different answer to, for example, if you ask your genie, because it's answering based on my passions, my purpose, and I can be asking, what mentor should I connect with today? Or.

or who's in the city that I'm in at the moment that could help me on my part. And it would actually be able to look up everything within GeniusU, everything's permission-based within our community, and give us information which no other AI is able to provide because it's a combination of not just the intelligence of the AI, but also with all the data that the student has actually provided.

Roger Hamilton: Any edtech platform that is focusing at being more personalized, that is, being more relevant, and being more meaningful to that person's life, I think is going to find AI to be a very powerful point of difference. We definitely have already seen that with, even the first early days of us launching our Genie AI as well. On the second part of your question, which was to what extent are we, you know, investing in building our own platforms or to what extent are we leveraging, with the very best that's out there already, both in terms of the AI and also in terms of our Metaverse? We have seen some major launches from the biggest platforms, and that's everything from Microsoft and Google through to Apple even this week.

to have a personalized path. So any AirTech platform that is focusing at being more personalized, that is being more relevant and being more meaningful to that person's life, I think is going to find AI to be a very powerful point of difference. And we definitely have already seen that with even the first early days.

of us launching our Genie AI as well. On the second part of your question which was, to what extent are we investing in building our own platforms, or to what extent are we leveraging with the very best that's out there already, both in terms of the AI, and also in terms of our metaversity, we have seen some major launches from the biggest platforms.

Roger Hamilton: We are leveraging on all of these platforms so that anyone who, as a student, starts to embrace any of these platforms will find that they seamlessly integrate in with our GeniusU platform as well. We wanna continue at the forefront of that because this was always part of our vision from the very beginning when we first launched Genius Group.

and that's everything from Microsoft and Google through to Apple even this week. And we are leveraging on all of these platforms so that anyone who as a student starts to embrace any of these platforms will find that they seamlessly integrate with our GeniusDU platform as well. And we want to continue.

at the forefront of that because this was always part of our vision from the very beginning when we first launched Genius Group. Absolutely, no it seems like you're moving towards where educational technology is heading. So you're positioning the company in a very favorable way for the way education is changing.

Hunter Diamond: Absolutely. No, it seems like you're moving towards sort of where education technology is heading. You know, you're positioning the company in a very favorable way for, you know, the way education is changing. Again, thank you for taking my questions, and I look forward to watching the continued progress.

Roger Hamilton: That's fantastic. Thanks a lot, Hunter.

Again, thank you for taking my questions and look forward to watching the continued progress. That's fantastic. Thanks a lot, Amta. We have reached the end of the question and answer session. Also, this concludes today's conference. You may disconnect your lines at this time.

Thank you for taking my questions and look forward to watching the continued progress. That's fantastic. Thanks a lot, Amta. We have reached the end of the question and answer session. Also, this concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.

Operator 1: We have reached the end of the question and answer session. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Operator: We have reached the end of the question and answer session. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Roger Hamilton: Thank you.

Flora Hewitt: Thank you.

Thank you.

Q4 2022 Genius Group Limited Earnings Call

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