Half Year 2023 Genius Group Ltd Earnings Call

September 29, 2023

Operator 2: Greetings. Welcome to the Genius Group H1 2023 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the prepared presentation. If anyone should require operator assistance during the call, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. At this time, I would like to hand the call over to Flora Hewitt, Vice President of Investor Relations, Mergers and Acquisitions. Thank you. You may begin.

Operator: Greetings. Welcome to the Genius Group H1 2023 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the prepared presentation. If anyone should require operator assistance during the call, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. At this time, I would like to hand the call over to Flora Hewitt, Vice President of Investor Relations, Mergers and Acquisitions. Thank you. You may begin.

Greetings. Welcome to the Genius Group first half 2023 Financial Results Conference call. At this time, all participants are in a listen-only mode.

Flora Hewitt: Hi, everyone, and thank you for joining our H1 2023 earnings conference call. With me today is Roger Hamilton, Genius Group's Chief Executive Officer, and Erez Simha, our Chief Financial Officer. Following their prepared remarks, we will open the call for questions. Our press release, including financial tables, was issued pre-market opening and is posted on our investor relations website located at ir.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 gross percentages refer to year-over-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.

A question and answer session will follow the prepared presentation.

If anyone wants to require operator assistance during the call, please press star zero on your telephone keypad.

As a reminder, this conference is being recorded. At this time, I would like to hand the call over to Flora Hewitt, Vice President and Investor Relations, Mergers and Acquisitions. Thank you. You may begin.

Hi everyone and thank you for joining our first half 2023 earnings conference call. With me today is Roger Hamilton, business groups chief executive officer, and Eric Sinha or chief financial officer.

Following their prepared remarks we will open the call for questions.

Our press release, including financial tables, was issued premarket opening and is posted on our investor relations website located at ir.geniusgroup.net where this call is being simultaneously webcast and where versions of our prepared remarks and supplemental slides are available. For more information, please visit ir.geniusgroup.net.

Flora Hewitt: These 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.

During this call, we will present both ISRS and non-ISRS financial measures.

Please note that all growth percentages refer to year-over-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.

Their forward-looking statement includes, 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.

Roger Hamilton: Thank you, Flora, and good morning, everyone. I'm excited to be sharing with you the progress our company has made in 2023. Genius Group is an EdTech company that is disrupting the education industry by delivering a global AI-driven, personalized entrepreneur education system that prepares students for the 21st century. We're providing a lifelong learning curriculum that can be accessed anywhere, anytime, and at any age to prepare them for the future. We've been listed on the NYSE American for 18 months, and the company has had great results to date. In the H1 of 2023, we have grown our student and user base by 41% on an annualized growth rate. We've grown our revenue by 121% year-on-year and increased our gross margins to 52.6%.

Actual resultant events could differ materially from projections due to a number of risks and uncertainties discussed in our press release, SCP-Filing and Superminal Materials.

Their forward-looking statements are not guaranteed of future performance and plans, and investors should not place any reliance on them. We assume no obligation to update our forward-looking statements.

With that, I'd like to turn it over to Roger.

Thank you for, and good morning everyone. I'm excited to be showing you the progress our company has made in 2023. Students group are some Ed Pet company that is disrupting the education industry by delivering a global AI driven personalized entrepreneur education system that prepares students for the 21st century. And we're providing a lifelong learning curriculum that can be accessed anywhere, anytime at any age, to prepare them for the future.

Roger Hamilton: In the last six months, we've also signed multiple strategic partnerships, launched a million-dollar scholarship program, recruited new senior executives, and reached multiple technological milestones with the launch of the company Genie AI and Genius Metaversity, to only name a few. We have been holding monthly investor calls with our shareholders to be more transparent and provide detailed information about each of our company developments. Considering the large amount of activity in the past six months, we'll be providing an overview of our business and focus on our latest corporate updates and financial results. I also invite you to listen to our monthly investor calls on our investor relations website, so that you can have more details about each of our other corporate developments that have happened in the past six months. Our strong growth is underpinned by favorable industry dynamics and trends.

We've been listed on the New York Stock Exchange American for 18 months, and the company has had great results to date. In the first half of 2023, we have grown our student and user base by 41% on an annualized growth rate. We have grown our revenue by 121% year-in-year, and increased our gross margins to 52.6%. In the last 6 months, we also signed multiple strategic partnerships, launched a million-dollar scholarship program, recruited new senior executives, and reached multiple technological milestones with the launch of the company's Genie AI and Genie's Metiversity, to only name a few.

We have been holding monthly investor calls with our shareholders to be more transparent and provide detailed information about each of our company's developments. So considering the large amount of activity in the past six months, we'll be providing an overview of our business and focus on our latest corporate updates and financial results. But I also invite you to listen to our monthly investor calls on our investor relations website so that you can have more details about each of our other corporate developments that have happened in the past six months.

Roger Hamilton: The global education and training industry is one of the industries most in need of disruption and upgrading. The education market intelligence firm, HolonIQ, forecast the industry to grow by 4.3% CAGR to $10 trillion by 2030. This growth is driven by population growth in developing markets, which fuels expansion, and technology, which underpins unprecedented reskilling and upskilling in developed economies. According to HolonIQ, the next decade will see an additional 350 million post-secondary graduates and nearly 800 million more K-12 graduates than today. The world will need to add 1.5 million teachers per year on average, and the role of teacher will represent more of that of a mentor or coach.

As strong growth is unapied by favorable industry dynamics and trends. Global education and training industry is one of the industry's most in need of disruption and upgrading.

The education market intelligence firm, column IQ, forecast the industry to grow by 4.5, 4.3% tagger at $10 trillion by 2030. This growth is driven by population growth in developing markets, which fuels expansion and technology which underpins unprecedented rescaling and upskilling. The education market is driven by the education market, which is driven by the education market, which underpins unprecedented rescaling and upskilling.

Roger Hamilton: In addition to a strong growth in EdTech spending and the growing number of students globally, we believe that the entire schooling system is also being disrupted by the shift to more online learning. This growth to digital schooling is taking place alongside a surge in homeschooling as parents discover the benefits and ease of educating their children from home. This can be seen from the high penetration rate of online learning platforms in the next five years, as it will reach 11.4% by 2027. Another trend that is worth watching closely is the growing gig economy and entrepreneurship market.

in developed economies.

According to 100 IQ, the next decade will see an additional 350 million post-secondary graduates and nearly 800 million, more K-12 graduates than today. So the world will need to add 1.5 million teachers per year on average, and a roller teacher will represent more of that of a mentor or coach. In addition to a strong growth in ethics spending and the growing number of students globally, we believe that the entire schooling system is also being disrupted by the shift to more online learning. This growth to digital schooling is taking place alongside the Surgeon Home

Roger Hamilton: We have seen a constant growth in the number of new businesses being opened in the US over the past 10 years, and projected gross volume transactions of the gig economy is projected to grow at 17.4% CAGR by 2023. Moreover, Statista published that today 35% of US workers are involved in the on-demand gig economy, and this statistic will grow to 50% by 2027. Everyone who is seeking ways to generate their own income or additional income is seeking education on the best strategies to achieve this, and this is what Genius Group delivers. This growth in the gig economy is also reflected in our numbers as we are witnessing a growing demand for entrepreneurship and financial related courses on our program.

Another trend that is worth watching closely is the growing deep economy and entrepreneurship markets.

We have seen a constant growth in the number of new businesses being opened in the US over the past 10 years and projected gross volume transactions of the gig economy is projected to grow at 17.4% by 2023.

A more robust sister published that today, 35% of US workers are involved in the on demand gig economy, and this is a single grow to 50% by 2027.

Roger Hamilton: Our students are exploring avenues like initiating their own ventures, making strategic investments in the financial markets or real estate, or tapping into the gig economy by offering freelance services. This inclination to diversity in income source or to diversify income sources is a direct response to the economic challenges many face today. With inflation still driving the economy, high interest rates and salaries showing little to no growth, individuals are compelled to seek alternative means of income generation. The number of students and partners on our platform have been growing steadily over time, and at the end of June 2023, we had 5.4 million students and users on our platform. This represents a 41% annualized growth rate since December 2022.

Everyone who is seeking ways to generate their own income or additional income is seeking education on the best strategies to achieve this. And this is what Genius Group delivers.

This growth in the GME economy is also reflected in our numbers as we are witnessing a growing demand for entrepreneurship and financial-related courses on our program. As students are exploring avenues like initiating through adventures, making strategic investments in the financial markets or real estate, we're tapping into the gig economy by offering freelance services.

This inclination to diversity in income or to diversify income sources is a direct response to the economic challenges many face today.

Roger Hamilton: Similarly, our paying students grew to 139,149 in the last six months, representing an 8% annualized growth rate. The number of partners on GeniusU, they grew to 14,942 since December 2022, representing a 2% annualized growth rate. The continued increase in the number of students and partners in our platform is also a testament to the quality of our platform and courses across our subsidiaries. We expect to continuously increase the number of students and partners as we step up our organic growth efforts by mainly increasing marketing spend and improving our customer experience, and continue our inorganic growth by making further acquisitions. The education industry today faces challenges at all levels. The education system is a test-focused, classroom-based, and one-size-fits-all system.

With inflation still driving the economy, high interest rates, and salaries showing little to no growth, individuals are compelled to seek alternative means of income generation.

The number of students and partners on our platform have been growing steadily over time. And at the end of June 2023, we have 5.4 million students and users on our platform. This represents a 41% annualized growth rate since December 2022. And similarly, our paying students grew to 179,149 in the last 6 months, representing an 8% annualized growth rate.

The number of partners on GeniusU, they grew to 14,942 since December 2022, representing a 2% annualized growth rate.

So the continued increase in the number of students and partners in our platform is also a testament to the quality of our platform and courses across our subsidiaries. We expect to continuously increase the number of students and partners as we step up our organic growth efforts by mainly increasing market spend and improving our customer experience and continue our inorganic growth by making further acquisitions.

Roger Hamilton: Schools are generally local, inflexible with location, teachers, subjects, and standards. Schools and colleges are under-resourced. Colleges and universities are unaffordable. Teachers are underpaid and underappreciated. In summary, the current education system today is standardized, expensive, and out of date, and it is in need of a drastic change, where a new future education system is inclusive, universal, affordable, and relevant to the future of work. Genius Group is creating a new system where we deliver a universal, personalized, lifelong learning education system with an AI-driven EdTech platform and a 21st century curriculum to prepare students with the leadership, entrepreneurial, and life skills to succeed in today's market. On our EdTech platform, GeniusU, we give each student a personalized learning path at every stage of their education, with an intention for this to be delivered at every age, from early age to 100 years old.

The Education Industry today faces challenges at all levels. The Education System is a test focused, classroom-based and one-size-fits-all system. Schools are generally local, in flexible, with location, teachers, subject, and standards.

schools and colleges are under-resourced.

Colleges and universities are unaffordable. Teachers are underpaid and underappreciated.

In summary, the current education system today is standardized, expensive, and out of date, and it is in need of a drastic change, where a new future education system is inclusive, universal, affordable, and relevant for the future of work.

Junior Group is creating a new system where we deliver a universal, personalized, lifelong learning education system with an AI-driven, tech platform, and a 21st century curriculum to prepare students with a leadership, entrepreneurial, and life skills to succeed in today's market. On our tech platform, JuniorSU, we give each student a personalized learning path at every stage of their education, with an intention for this to be delivered at every age from early age to 100 years old. Currently, our platform includes personal profiles for students to present themselves, dashboards to measure progress, their learning and earning metrics, communication circles to connect with other students and mentors, and a full range of continually upgraded learning modalities and equipment tools to suit each student from micro courses to certifications and graduate degrees, delivered by a combination of global and local faculty.

Roger Hamilton: Currently, our platform includes personal profiles for students to present themselves, dashboards to measure progress, their learning and earning metrics, communication circles to connect with other students and mentors, and a full range of continually upgraded learning modalities and assessment tools to suit each student, from micro courses to certifications and graduate degrees, delivered by a combination of global and local faculty. AI has revolutionized the way we do business, and for the company to maintain a competitive edge in a dynamic EdTech landscape and to stay ahead of the competition in the EdTech industry, we ensured that AI integration became a cornerstone of our strategic planning and execution. In April 2023, it marked a significant milestone for us with the unveiling of our very own Genie AI. This AI tool is ingeniously designed to be an academic ally for students navigating their educational journey on GeniusU.

AI has revolutionized the way we do business and for the company to maintain a company's competitive edge in a dynamic attack landscape and to stay ahead of the competition in the air tech industry.

Roger Hamilton: At its core, Genie AI's objective is to harness the transformative capabilities of artificial intelligence to craft bespoke learning trajectories for our students. It factors in individual attributes like your talents, your passions, overarching purpose, your genius, and specific personal objectives to chart out the best learning journey for you. Since the launch of our first version of the Genie AI, we have witnessed an overwhelmingly positive response. The daily user count has soared, testament for the tool's efficacy and appeal. Genie AI offers a multifaceted experience, from curating daily learning suggestions tailored to individual needs, to fostering networking by connecting users with peers who share similar interests and ambitions. Perhaps most impressively, it operates as a virtual personal coach and mentor, dedicatedly assisting students in their quest to realize their professional aspirations.

we ensured that AI integration became a cornerstone of our strategic planning and execution. And in April of 2023, it marked a significant milestone for us with the unveiling of our very own GenieAI. This AI tool is ingeniously designed to be an academic ally for students navigating their educational journey on GenieSue. At its core, GenieAI's objective is to harness the transformative capabilities of artificial intelligence to craft bespoke learning trajectories for our students. It factors in individual attributes like your talents, your passions, overarching purpose, your genius, and specific personal objectives to chart out the best learning journey for you. Since the launch of our first version of the GenieAI, we have witnessed an overwhelmingly positive response. The daily use account has scored a sword, testament for the tool's efficacy and appeal. GenieAI offers a multifaceted experience from creating daily learning suggestions tailored to individual needs to fostering networking by connecting users with peers who share similar interests and ambitions. And perhaps most impressively, it operates as a virtual personal coach and mentor, dedicatedly assisting students in their quest to realize their professional aspirations.

Roger Hamilton: As the future of AI looks very promising, Genius Group will continue to embrace the technology, integrating the latest developments to provide our users and partners the best possible customer experience on our platform. The second key project has been the use of AI and improvements within our partner portal. In September 2023, we partnered with GrooveDigital, a leading software as a service platform for digital commerce, used by over 400,000 online educators, retailers, and service providers. They launched Groove AI, an AI-driven content builder, to accelerate the build time and optimization for digital entrepreneurs to launch and scale their businesses globally.

As the future of AI looks very promising, Genius Group will continue to embrace the technology integrating the latest developments to provide our users and partners the best possible customer experience on our platform.

Roger Hamilton: As we believe that it's far more effective to attract 100 influencers and thought leaders who believe in our mission and each have 1 million students to join our platform than to get to 100 million students student by student, our top priority was to strengthen our partner portal to give educators the tools they need. By signing a joint venture with GrooveDigital, we will be delivering AI-powered tools to GeniusU partners and faculty through the partner portal. The joint venture's plan is to launch a new AI-driven SaaS platform, Genius Groove Inc. The joint venture company under 50/50 ownership will integrate Groove Digital tools and Groove AI's large language model engine with GeniusU's partner portal to give all of our partners AI-driven tools to build their global classrooms.

The second key project is being the use of AI and the improvements within our partner portal. In September 2023, we partnered with Group Digital, a leading software as a service platform for digital commerce, used by over 400,000 online educators, retailers, and service providers. They launched Group AI and AI-driven content builder to accelerate the build time and optimization for digital entrepreneurs to launch and scale their businesses globally.

As we believe that it's far more effective to attract 100 influencers and thought leaders who believe in our mission and we each have a million students to join our platform that to get to a 100 million students student by student our top priority was to strengthen our PANDA portal to give educators the tools they need.

Roger Hamilton: This will provide unique AI-driven drag-and-drop components to enable Genius Group partners, faculty, and educators to rapidly build and scale global classrooms, integrating GeniusU's freemium and premium courses, building tools, and with Group's end-to-end marketing, video, communication building, and online commerce tools. The company anticipates Genius Group Inc. will be market-ready and delivering its AI educator SaaS solution to Genius's 14,000 partners and faculty by Q1 2024. Genius Group's AI educator SaaS solution will also be open to educators globally, from schools and universities to corporate trainers, speakers, authors, and influencers delivering online courses. The third major product release in the past six months is Genius Metaversity. We first launched it in June 2023 during our Impact Investor Summit in partnership with Vatom, and later on released our second version at the Global Entrepreneur Summit in September 2023 with the additional GeniusX partnership.

And by signing the Joint Venture with Group Digital, we will be delivering AI-POW tools to genius-view partners and faculty through the PANDA portal. The Joint Ventures plan is to launch a new AI-driven SaaS platform, Genius Group Inc. The Joint Venture company under 5050 ownership will integrate group digital tools and group AI's large language model engine with Genius-view's PANDA portal to give all of our partners AI-driven tools to build their global classrooms. And by signing the Joint Venture company under 5050 ownership, we will be delivering AI-driven tools to help us build our own AI-driven SaaS platform.

This will provide unique AI-driven drag-and-drop components to enable genius groups partners, faculty and educators to rapidly build and scale global classrooms, integrating geniuses premium and premium courses, building tools and with groups and marketing video communication building and online commerce tools.

The company anticipates junior grouping will be marked ready and delivering a AI-educated fast solution to geniuses 14,000 partners and faculty by Q1 2024. Genius groups AI-educated fast solution will also be open to educators globally from schools and universities to corporate trainers, speakers, authors, and influencers delivering online courses.

Roger Hamilton: This new version is inspired by Saga Atlantis, a city and mothership of discovery in virtual reality, enabling those on board to teleport to any part, place, or any time. Genius Metaversity 2.0 has a partner portal and 4 campuses: a school campus, university campus, entrepreneur campus, and investor campus. Each campus will have its own freemium and premium neighborhoods, Central Avenue with global classrooms run by their partners, and a main square for live master classes, workshops, and summits. Each student will be able to take courses, earn gems, connect with mentors and students in a combination of 2D and 3D environments while being guided by their Genie AI. We are excited to be partnering with 2 leaders in virtual reality and mixed reality for this Metaversity.

The third major product released in the past six months is genius metaburacy. We first launched it in June 2023 during an impact investment summit in partnership with Batham. And later on, we released our second version at the Global Entrepreneur Summit in September 2023 with the additional genius ex-parmature. This new version is inspired by target landlifts, a city and mothership of discovery and virtual reality enabling those on board to teleport to any part, place or anytime.

Jiggy's Metaverse 2.0 has a partner portal and four campuses, a school campus, university campus, entrepreneur campus, and investor campus. Each campus will have its own premium and premium neighborhoods, central avenue with global classrooms run by the partners and a main square for life master classes, workshops, and summits.

Roger Hamilton: Vatom is providing us with the operating system for the build as they are at the forefront of combining digital avatars with the most immersive virtual environments and blockchain-based assets. They achieve this in a seamless process that gives all our students an easy way to learn in the Metaverse without the need of a headset, as the 3D environment can be accessed on a laptop in the same way most players of Fortnite or Minecraft access their 3D gameplay on a 2D screen. Their plug-and-play system will allow us to give all of our partners the building tools and library of architecture, learning experiences, certificates, and rewards to build their own global classrooms in our campuses. Their blockchain-based assets have already been developed for the largest companies in the world to join the Metaverse, including Verizon, Vodafone, Unilever, Procter & Gamble, Nestlé, Intel, and PepsiCo.

Each student will be able to take courses, earn gems, connect with mentors and students in a combination of two DINI and 3D environments while being guided by their GNI AI.

We are excited to be partnering with two leaders in virtual reality and make sure reality for its metabursity.

That is providing us with the operating system for the build as they are at the forefront of combining digital avatars with the most immersive virtual environments and blockchain-based assets. They achieve this in a seamless process that gives all our students an easy way to learn in the metaverse without the need of a headset. As a 3D environment can be accessed on a laptop in the same way most players of Fortnite or Minecraft access to a 3D gameplay on a 3D screen.

Roger Hamilton: On the other hand, GeniusX is a leading company in mixed reality that built Retreat VR, a leading learning app on the Meta store. They have since built strategic relationships with the leading headset manufacturers in VR and AR, including Magic Leap and Apple. GeniusX will be working with Genius Group and Vatom on building out the architecture of our campuses, which we will be refreshing and updating on a quarterly basis as the world moves towards a rapidly changing learning environment led by AI and AR. We believe that by maintaining a first-mover advantage within these emerging technologies gives Genius Group, our partners, and our students an opportunity to be at the forefront of what we see as a coming education revolution. The immersive nature of the Metaverse has been captivating our students, igniting their curiosity, and motivating them to learn more.

Their plug and play system will allow us to give all of our partners the building tools and library of architecture, learning experiences, certificates, and rewards to build their own global classrooms in our campuses. And their blockchain-based assets have already been developed for the largest companies in the world to join the Metaverse, including Verizon, Photophone, Unilever, Procter and Granbull, Nestle, Intel, and PepsiCo. On the other hand, Genius X is a leading company in mixed reality that built, retreat, VR, a leading learning app on the Meta Store. They have since built strategic relationships with the leading headset manufacturers in VR and AR, including magically, and Apple. Genius X will be working with Genius Group and Batham on building out the architecture of our campuses, which we will be refreshing and updating on a coordinate basis as well as moves towards a rapidly changing learning environment led by AI and AR.

Roger Hamilton: Combined with our own Genie AI, which itself will continue to advance with AI technology, we'll be able to deliver on the promise of a truly personalized for each student, one that is globally accessible, reduces barriers to education, provides dynamic and relevant learning, and nurtures gamified and engaging connection between students, entrepreneurs, investors, and the companies seeking the talent they need to grow. The release of the three tech projects that I just discussed are strategic moves aimed at solidifying Genius Group's position in the industry and ensuring long-term growth and sustainability. Genius Group is a fully hybrid EdTech company with students and partners in more than 20,000 cities in 210 countries. Our courses are accessible both online and in person, as some of our subsidiaries have physical campuses.

We believe that by maintaining a first mover advantage within these emerging technologies gives genius group, our partners, and our students an opportunity to be at the forefront of what we see as a coming education revolution. The immersive nature of the metaverse has been captivating our students in nice and deurosity and motivating them to learn more. Combined with their own gene AI, which itself will continue to advance with AI technology, we'll be able to deliver on the promise of a truly strong speed.

transport each student. One that is globally accessible, reduces barriers to education, provides dynamic and relevant learning, and nurtures gamified and engaging connection between students, entrepreneurs, investors, and the companies seeking the talent they need to grow.

Roger Hamilton: This means that students from all continents can join our courses at any time of the day and the year. Moreover, the courses offered on our platform are decentralized, as the courses are ranked by our students in terms of popularity, relevance, and quality. This ensures that the most relevant courses are delivered to students at all times without having a centralized entity intervene in the curriculum. Also, we suggest courses to our students based on their interests and values, so that a personalized learning pathway can be delivered to them. Genius Group aims to have an educational system where learning is inclusive with a universal curriculum that is decentralized and personalized to every student. Our curriculum also applies to students of all ages. Our subsidiary, Education Angels, caters to early age students. E-Squared caters for K-12. UAV caters for university students. PIN caters for adults.

The release of the three tech projects that I just discussed are strategic moves and solidifying genius groups position in the industry.

and ensuring long-term growth and sustainability.

Students Group is a fully hybrid edtech company with students and partners in more than 20,000 cities in 200 countries our countries attend. Our courses are accessible both online and in person as some of our subsidiaries have physical campuses. This means that students from all continents can join our courses at any time of the day and the year. Moreover, the courses offered on our platform are decentralized as the courses are ranked by our students in terms of popularity, relevance, and quality. This ensures that the most relevant courses are delivered to students at all times without having a centralized entity intervene in the curriculum. Also, we suggest courses to our students based on their interests and values so that a personalized learning pathway can be delivered to them.

Roger Hamilton: Revealed Films and Genius cater for all groups. Our students can therefore seemingly grow and learn within our group without interruption between each age group, and this allows for a high level of continuity in their personal learning journey. Moreover, from a business perspective, this allows Genius Group to have a longer customer life cycle where we can continuously sell our products as they grow on their journey with the group. We have a three-phase strategy that allows us to disrupt the education industry. Our first phase, which was from 2015 to 2020, was focused on educating entrepreneurs that are willing to self-fund their education. This has enabled us to grow globally to over 1.4 million members, and now, as you've just heard, over 5 million students, and to self-assess our growth with the same entrepreneurs that we have been educating.

Unit repaints to have an educational system where learning is inclusive with a universal curriculum that is decentralized and personalized to every student.

Our groupithm also applies to studentsable ages. Our subsitary education Angels caders, the early age students, each squared kers for K 12, UA kers for university students, P kers for adults and reveal films and Genius cada for or groups. Our students can therefore studly, grow and learn within our group without interstruactction between each age group, and this allows for a high level of continuity in the personal learning journey.

Moreover, from a business perspective, this allows Chinese groups to have a longer customer life cycle where we can continuously sell our products as they grow on their journey with the group.

Roger Hamilton: Our second phase from 2020 to 2025, which we're in now, is focused on expanding our curriculum to schools and colleges through acquisitions, partnerships, and licensing agreements with education companies that add valuable courses, content, accreditation, campuses, faculty, and students to the group while continuing to grow our Genius school programs. Our third phase, from 2025 to 2030, will be to have our Genius Group curriculum accredited in not just the US, but also the UK, as an alternative to the existing Cambridge and K-12 curriculums. This third stage is an aspirational goal, and it's not assured, as it's dependent on the success of our second phase and dependent on us succeeding in getting accreditation from the accrediting bodies in the relevant countries. We currently are in the second phase of our growth strategy, and our plan is to grow both organically and inorganically.

We have a three-phase strategy that allows us to disrupt the education industry. Our first phase which was from 2015 to 2020 was focused on educating entrepreneurs that are willing to self-fund their education. This has enabled us to grow globally to over 1.4 million members, and now as you just heard over 5 million students, and to self-assess our growth with the same entrepreneurs that we have been educating. Our second phase from 2020 to 2025 which we are in now is focused on expanding our curriculum to schools and colleges through acquisitions, partnerships, and licensing agreements with education companies that add valuable courses, content, accreditation, campuses, faculty, and students to the group while continuing to grow our junior school programs. And then our third phase from 2025 to 2030 will be to have our junior school curriculum accredited in not just the US but also the UK as an alternative to the existing Cambridge and K-12 curriculums. This third stage is an inspirational goal and it is not assured and it is dependent on the success of our second phase and dependent on us succeeding in getting accreditation from the accrediting bodies in the relevant countries.

Roger Hamilton: When we acquire a company, we go through a four-step process of acquisition, integration, digitization, and distribution. It's worth saying that while last year we had plenty of acquisitions, unlike this year, our financials are not including, at this point, any acquisitions or any that then take place in our Q4. By acquiring companies, we are able to combine each company's courses and products into our curriculum at GeniusU and tailor them to the needs of our students. We believe this will increase the lifetime value of our students and reduce the student and partner acquisition costs for each level of our curriculum. By digitizing the courses and products for online delivery, we aim to scale each company's product offerings globally.

We currently are in the second phase of our growth strategy and our plan is to grow both organically and organically. And when we acquired a company, we go through a four-step process acquisition, integration, digitization, and distribution. And it's worth saying that while yet last year, we had plenty of acquisitions. At this year, our financials are not including at this point any acquisitions or any that then take place in our final quarter. By acquiring companies, we are able to combine each company's courses and products into our curriculum and GDSU and tailor them to the needs of our students. We believe this will increase the lifetime value of our students and reduce the student and partner acquisition costs for each level of our curriculum. So by digitizing the courses and products for online delivery, we aim to scale each company's product offerings globally. And providing the courses in a modular form, we believe it provides partners and faculty with the opportunity to participate in marketing and facilitating the delivery of each company's courses and products. In the countries and cities where we have all of our genius communities.

Roger Hamilton: Providing the courses in a modular form, we believe it provides partners and faculty with the opportunity to participate in marketing and facilitating the delivery of each company's courses and products in the countries and cities where we have all of our Genius communities. The integration of acquired companies to GeniusU will help accelerate their speed, size, and scale, increasing their enrollments and capacity to deliver courses and increase their student retention through personalized education pathways. As we are integrating them into the same premium model and student and partner pathways on GeniusU, we are expecting them to improve on their operational metrics, such as the cost per student or partner, revenue per student or partner, and our RAS, which is our return on acquisition spend, which in turn will improve Genius Group's operational metrics.

The integration of acquired companies to GeniusU will help accelerate their speed, size, and scale, increasing their involvement and capacity to deliver courses and increase their student retention through personalized education pathways. And also, as we are integrating them into the same premium model and student and partner pathways on GeniusU, we are expecting them to improve on their operational metrics such as the cost per student or partner, revenue per student or partner, and our RAS, which is our return on acquisition spend, which in turn will improve Genius Group's operational metrics.

Roger Hamilton: This phase two of our growth strategy will continue over the next few years, and we aim to grow at a 50% rate year-on-year, with 30% coming from acquisitions and 20% from organic growth. As we mentioned earlier, all of the growth you're seeing right now is all from that organic growth. We will continue to grow inorganically by acquiring curriculum, campuses, and EdTech companies and integrating them onto our GeniusU platform, and we'll launch new products by GeniusU. We have already reached all of our internal goals for 2023 from a product point of view with the launch of Genius Metaversity, the Genie AI, and our MBA programs.

This phase 2 of our growth strategy will continue over the next few years, and we aim to grow at a 50% rate year on year, with 30% coming from acquisitions and 20% from organic growth. And as I mentioned earlier, all of the growth you are seeing right now is all from that organic growth. We will continue to grow inorganically by acquiring curriculum, campuses, and edtech companies, and integrating them onto our Genius U platform, and we will launch new products via Genius U. We have already reached all of our internal goals for 2023 from a product point of view with the launch of Genius Metiversity, the Genius AI, and also our MBA programs. And looking forward, we are already working on the development of the partner portal with Group AI and the improvements of our metaverse, but we will also be aiming to grow our specialist courses in areas of green tech, edtech, medtech, fintech, and space tech.

Roger Hamilton: Looking forward, we're already working on development of the partner portal with Groove AI and the improvements of our Metaversity, but we will also be aiming to grow our specialist courses in areas of green tech, EdTech, medtech, fintech, and space tech. We are very excited about what the next five years will bring us as we are already on the core technologies required for our growth strategies, and we will also continue to build upon them to improve our customer and partner experience. Since November 2022, the Group has been actively engaged in a series of notable corporate activities to defend our shareholder interests against potential manipulation of our shares.

Roger Hamilton: In November 2022, we hired two law firms to investigate the trading history of our ordinary shares, and in January 2023 announced the results of the investigation indicated that certain individuals and/or companies appear to have sold, but not delivered, a significant amount of the stock of the company. Following this announcement, the company created an internal task force to actively pursue all possible action to protect shareholders. One of the actions currently ongoing is legal action against anyone reasonably believed to be involved or suspected of being involved in any type of market manipulation relating to the company's ordinary shares to seek to recover liquidated damages for the cost incurred on the company.

We are very excited about what the next five years will bring us as we are already on the core technologies required for our growth strategies and we will also continue to build upon them to improve our customer and partner experience.

This November 2022, the group has been actively engaged in a series of notable corporate activities to defend our shareholder interests against potential manipulation of our shares. In November 2022, we hired two law firms to investigate the trading history of our ordinary shares and in January 2023 announced that results of the investigation indicated that certain individuals and or companies appear to have sold but not delivered a significant amount of the stock of the company. Following this announcement, the company created an internal task force to actively pursue.

Roger Hamilton: Genius Group also got approval from the board and shareholders for a share buyback and reverse stock split, two corporate actions that can be used by the company at its discretion to discourage illegal trading activity. Genius Group also issued a $10 coupon per share to all shareholders in March 2023, and this coupon rewarded the investors of Genius Group with valuable credits that can be used towards Genius Group's range of entrepreneur education and investor education courses and products for a period of six months. Genius Group listed its shares on the blockchain exchange Upstream in March 2023 as a way for shareholders to hold their shares on the blockchain. We delisted from it in September due to complex securities regulations arising from the dual listing on Upstream and NYSE.

All possible actions protect shareholders. What are the actions currently ongoing is legal action against anyone recently believed to be involved

or suspected of being involved in any type of market manipulation relating to the company's ordinary shares to seek to recover liquidated damages for the costs incurred on the company. James Group also got approval from the board and shareholders for a share buyback and reverse stock split, two corporate actions that can be used by the company at its discretion to discourage illegal trading activity.

And Genius Group also issued a $10 coupon for trade for share to all shareholders in March of 2023. And this coupon rewarded the investors of Genius Group with valuable credits that can be used towards Genius Group's range of entrepreneur education and investor education courses and products for a period of six months.

Roger Hamilton: All those decisions were made with the vision for the future, ensuring the company's stability and growth, and assertively defending our shareholders' interests. The last corporate action that we have undertaken in the past six months is a spin-off of Entrepreneur Resorts. Entrepreneur Resorts is a leading group of resorts, cafes, and beach clubs where entrepreneurs can co-work, co-learn, and co-live in various locations around the world. Entrepreneur Resorts has been growing into a cafe and a hotel in Bali to game lodges in South Africa and a city center location called Genius Central in Singapore. Both Entrepreneur Resorts and Genius Group decided to spin off Entrepreneur Resorts to streamline and rationalize Genius Group's operations and focus 100% on EdTech and also enabling Entrepreneur Resorts to grow separately with a focus on scaling its hospitality licensing model.

Gee's Group listed its shares on the blockchain exchange upstream in March 2023 as a way for shareholders to hold their shares on the blockchain. We delisted from it in September due to complex securities regulations arising from the dual listing on upstream and NYC. And all those decisions were made with a vision for the future, ensuring the company's stability and growth, and assertively defending our shareholders' interests.

The last co-production that we have undertaken in the past six months is a spin-off of consumer results. Consumers are the leading group of resorts and cafes and beach clubs where entrepreneurs can co-work, co-learn and co-live in various locations around the world.

Roger Hamilton: The boards approved the spin-off in January 2023, and then in May, shareholders also gave their approval, and in early August 2023, the High Court of Singapore approved the corporate action. The spin-off will be completed on 2 October 2023, and from this date onwards, Genius Group will run completely independently from Entrepreneur Resorts, which means that Entrepreneur Resorts will have its own separate growth path and expansion plans while continuing its venue partnerships with Genius Group for retreats and programs run at Entrepreneur Resorts locations. Genius Group companies and Entrepreneur Resorts operated at arm's length over the past few years, charging Genius Group companies with accommodation, food, and beverage. After the spin-off, both companies will continue to operate closely with one another throughout the partnership.

Entrepreneur Resource has been growing into a cafe and a hotel in Bali to game lodges in South Africa and a city center location called Genius Central in Singapore. Both Entrepreneur Resource and Genius Group decided to spin off Entrepreneur Resource to streamline and rationalize Genius Group's operations and focus 100% on EdTech, and also enabling Entrepreneur Resource to grow separately with a focus on scaling its hospitality licensing model.

The boards approved the spinoff in January 2023, and then in May shareholders also gave their approval. And in early August 2023, the Singapore High Court approved the corporate action. The spinoff will be completed on October 2, 2023. And from this date onwards, Genius Group will run completely independently from Entrepreneur Resource which means that Entrepreneur Resource will have its own separate growth path and expansion plans while continuing its venue partnerships with Genius Group for retreats and programs run at Entrepreneur Resource locations.

Roger Hamilton: For example, we'll be running an upcoming Entrepreneur Dynamics Masters at Vision Villas in October and running an Impact Investor Retreat at Tao Game Lodge in South Africa in December, together with iLAB Entrepreneur Accelerator programs at all our locations later this year and in 2024. Now, I would like to turn it over to Erez so that he can give an overview of our financial performance.

Genius Group companies and Entrepreneur Resource operated at arm's length over the past few years, charging Genius Group companies with accommodation, food, and beverage. And after spin-off, both companies will continue to operate closely with one another throughout the partnership. For example, we'll be running an upcoming Entrepreneur Dynamics Masters at Vision Villas in October , and running an Impact Investor Retreat at Cal Game Lodge in South Africa in December , together with iLabs Entrepreneur Accelerator programs at all allocations later this year and in 2024. Now, I would like to turn it over to Erez so that he can give an overview of our financial performance.

Erez Simha: Thank you, Roger, and good morning, everyone. In H1 2023, we generated a total revenue of $11.8 million, which is a 120.7% increase from the $5.3 million in H1 2022. The strong growth was driven by an increase of 159.5% in education revenue to $8.96 million and a 50% increase in campus revenue to $2.83 million. The strong increase in two segments was due to the revenue for our acquisition and an increase in demand due to capacity expansion and operations coming back to normal after COVID. Our pro forma revenue in 2023 was $9 million in H1 2023 after excluding Entrepreneur Resorts revenue.

Thank you, Roger, and good morning, everyone.

In the first half of 2023, we generated a total revenue of $11.8 million.

which is 120.7% increase from the 5.3 million in the first half of 2022.

The strong goal was driven by an increase of 159.5% in education revenue to 8.96 million and a 50% increase in campus revenue to 2.8% in premium.

Erez Simha: The Group gross margin has increased to 52.6% in H1 2023 compared to 42% in H1 2022. Our cost of revenue declined in percentage terms in 2023 as a result of improved results from our campus business and the acquisitions, which has higher gross margin. The marketing spend and the investment in development assets in H1 2023 is consistent in comparison to H1 2022. To date, we have been maintaining a balance between growth and positive growth margin, in which we are not being overly aggressive in our marketing spend, and this is reflected in our current growth margin.

The strong increase in two segments was due to the revenue for our acquisition and an increase in demand due to capacity expansion and operations coming back to normal after COVID. Our portfolio revenue in 2023 was $9 million in the first half of 2023 after excluding LIBORIN Have you done any others predicted?

The group growth margin has increased to 52.6% in H1 2023 compared to 42% in the FERPA 2020.

Our cost of revenue declined a percentage in 2023 as a result of improved results from our campus business.

Erez Simha: In the H1 2023, the pro forma cost of revenue was $4.63 million, giving us a 48.33% gross margin. By owning the majority of our curriculum and coursework across all companies and acquisitions, we are focused on maintaining a low cost of content and a high gross margin. The cost of revenue, which we do incur, is mainly our customer acquisition cost and our property cost. In the future, we will continue to focus on further improving our overall gross margin through synergies and higher efficiencies. The group had net operating expenses of $13.36 million in the H1 2023, compared to $5.68 million in the H1 2022. On a pro forma basis, the operating expenses in the H1 2023 was $13.75 million.

and the acquisitions, which had higher growth model. The marketing experience and the investment in development assets in the first half of 2023 is consistent to comparison to the first half of 2022.

Today, we have been maintaining a balance between growth and positive growth margin in which we are not being overly aggressive in our marketing spend. This is reflected in our current growth margin.

In the third half of 2023, the performer cost of revenue was $4.63 million, giving up the 48.33% gross margin.

By owning the majority of our vehicles in the car store, across all companies and acquisitions, we are focused on maintaining a low cost of content and a high cost margin.

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

Erez Simha: Unfortunately, 4.40% of our operating expenses is our staff cost, with the remaining in development, marketing, rental, legal, audit, and general expenses. The increase in operating expenses is a result of growth in our operations, acquisitions of companies, legal and other professional expenses, which are required as a listed company. As with our cost of goods sold historically, we have been managing our overhead to maintain a sustainable growth rate to allow additional funds raised to be invested largely in acquisitions. The group has adjusted EBITDA of -$7.32 million in H1 2023, compared to adjusted EBITDA of -$1.96 million in H1 2022.

In the future, we will continue to focus on further improving our work with marking, with energy and higher efficiency.

The group had net operating expressions of 15.36 million in the first half of 2023, compared to 5.68 million in the first half of 2022.

On a pro forma basis, the operating experience in the first half of 2023 was 13.75 million.

Unfortunately, 40% of our operating expenses is our staff costs, with the remaining in development, marketing, rental, legal, audit, and general expense.

The increasing operating expenses, there is lots of growth in our operations, acquisitions of companies, legal and other professional expenses, it has required a delicious company.

Erez Simha: The negative adjusted EBITDA of -$7.32 million in H1 2023 is partially due to further group investment in development, marketing spend, increased legal and audit and professional service costs. Turning to our cash performance and the balance sheet. The group current assets decreased from $24.25 million in December 2022 to $9.33 million in June 2023. The primary reason for the decline is usage of restricted cash for the repayment of convertible loans, acquisition fees, and operational losses in H1 2023. The largest current assets item now is our accounts receivable of $3.84 million, cash and cash equivalents of $2.62 million, prepaid expenses of $1.24 million, and inventory of $1.30 million.

As with our course of good thought, historically, we have been managing our whole world to maintain a sustainable growth rate.

to allow additional fund raise to be invested.. afloat in..

The group has a negative adjusted D-bit of 7.32 million the first half of 2023, compared to a negative adjusted D-bit of 1.96 million H1-2022.

The next day will be the 7.62 million in the first of 2013, 1323, this part is due to further group investment in development, marketing spend and green, and again, all the construction of 7.2.

journalers will catch performan at the bus.

The Group Kine Asset decreased from $24.25 million in December 2022 to $9.73 million in June 2023.

Erez Simha: The group non-current assets decreased from $67.01 million in December 2022 to $66.05 million in June 2023. The decrease is mainly due to the amortization of acquired intangible assets. The group current liabilities decreased from $23.38 million in December 2022 to $17.48 million in June 2023. The largest item in our current liabilities was deferred revenue of $5.05 million, convertible notes of $3.77 million, and accrued expenses and other current liabilities of $3.39 million. Accounts payable of $2.22 million, operating lease liability of $1.33 million, due to related party of $1.01 million, and other remaining items contributed to $0.55 million.

The final reason for decline is usage of restricted cache for the repayment of convertible note acquisitions due and operational losses in the first half of 2023.

The largest account asset item in our group. Our accounts receivable of $3.84 million. Cash and cash equivalents of $2.62 million. Repat expenses of $1.24 million. Inventory of $1.17 million.

The Group non-current assets be created from 67.01 million in December 2022 to 66.05 million in June 2023.

The degree is mainly due to the modification of the acquired tangible assets.

The group counter ability decreased from 23.38 million in December 2022 to 17.48 million in June 2023.

Erez Simha: The Group non-current liabilities decreased from $53.92 million in December 2022 to $51.77 million in June 2023. The decrease was due to decrease in convertible loans payable balance of $0.13 million in June 30, 2023, compared to $2.22 million in December 2022, which was due to repayment and conversion of convertible loans during H1 2023. The Group's equity decreased from $13.95 million in December 2022 to $6.13 million in June 2023. The reduction in equity is due to the loss of $10.77 million in H1 2023, and an increase in capital by $3.68 million, mainly due to the conversion of convertible loans to equity, and the recording of stock-based compensation expenses.

The largest item in our account's liability was the shared revenue of $5.05 million, convertible note of $3.77, and accrued expenses and other account's liabilities of $3.39 million, account payable of $2.22 million, operating leases I believe, your fund from $3 million.

Due to the latest policy of 1.01 million, the remaining items contributed to 0.5 million.

The group non-carnage liability decreased from 53.92 million in December 2022 to 51.77 million in June 2023.

The decrease was due to the tuition convertible loan payable balance of $0.13 million in June 30, 2023, compared to $2.22 million in December 2022, which was due to repayment and conversion of convertible loans during the first half of 2020.

Erez Simha: In July 2023, Genius Group signed, executed and delivered a bridge note with an accredited investor with a face value of $3.2 million, which has $200,000 original issue discount. The company received $1 million in interest payments in July and August respectively. As of 31 August 2023, the company had an outstanding principal value of $53,343 in the secured convertible note out of the original amount of $18.13 million, which was closed in August 2020. During July and August, the company settled the outstanding principal value and accrued interest of $11.03 million and issued 22,192,694 shares as a result of the debt conversion by the lender.

The group shareholder decreased from 13.95 million in December 2022 to 6.13 million in June 2023.

The reduction in equity is due to the loss of $10.77 million in the first half of 2023 and an increase in the copy type by $3.68 million, mainly due to the conversion of convertible loans directly to the recording of stock-based consumption compensation expenses.

In July 2020, Spiritunis Group signed a magnitude and a limit at bridge note with an accredited investor with a face value of $3.2 million, which has 200,000 original issue discounts. The company has received $1 million in proceeds in July and August expected.

As of August 31, 2023, the company had an outstanding principal value of $53,343 in flyer after being told that they had just had speeches.

Erez Simha: Looking ahead to the future, we remain steadfast in our initial operations focus, which predicts an engagement of between 5.7 to 6 million students and users by the end of 2020. The confidence stems from a persistently high demand we have witnessed with our range of services and courses offering, which specialize in entrepreneurial and financial education, which is in line with the trend that Roger mentioned earlier. Despite strong demand in our services, we have decided to review our financial guidance for 2023 due to the range of different internal controls. First, we are in the process of spinning out our subsidiary, Entrepreneur Resorts Ltd. This strategic move is consequential in shaping the financial direction of reporting the Genius Group.

which was grown in August 2020.

During July and August , the company set up the same principal value and accrued interest of $11.03 million and issued 22,192,394 shares as a result of a debt conversion by the lender.

Looking ahead to the future, we will make a T-SAT in our initial operations focus, which predicts an engagement of between 5.7 to 6 million students and users by the end of 2022.

The confidence stems from the persistently high demands we have witnessed with our range of services and courses offering, specializing in the renewables and financial education, which is in line with the trend that Rodolf mentioned earlier.

Erez Simha: In light of this investment, we found it imperative to make adjustments to our financial guidance, which means that the previously projected revenue and profit, which incorporate Entrepreneur Resorts Ltd contribution, will now be excluded. As Roger explained earlier, the release of three new tech products this year, which was the result of a reprioritization of some of our projects, which resulted in delays in certain product launches and the establishment of partnerships and acquisitions, it was therefore necessary for us to revise our initial revenue projections, with the applicable revenue shifted from 2023 to 2024. We also decided to restructure the business model of our past acquisition, Revealed Films, to ensure the quality and integrity of our services.

Despite strong demand in our services, we have decided to review our financial guidance for 2023 due to the range of different internal problems.

First, we are in the process of spinning out our subsidiary Entrepreneur's Resolve activity. This strategic move is controversial in shaping the financial direction of reporting and reporting a genius group. So in light of this investment, we found it imperative to make adjustments to our financial guidance which means that the previously projected revenue and profit that incorporate Entrepreneur's Resolve activity contributions will now be excluded.

Also, as Roger explained earlier, there is a fairly new tech product this year, which was the result of a reauthorization of some of our projects, which resulted in delays in certain product launches and the establishment of partnerships and acquisitions. It was therefore necessary for us to revise our initial revenue projections where the applicable revenue shifted from 2023 to 2024. We also decided to restructure the business model of our plastic revision review term to ensure the quality and integrity of our steps. As a result to this approach, we have had to realign some of our top line projections and cost energies, moving them from 2023 to 2024.

Erez Simha: As a result of this approach, we have had to realign some of our top-line projections and cost synergies, moving them from 2023 to 2024. Lastly, Roger enumerated the series of corporate activities undertaken by Genius Group to defend the shareholders' interest, which resulted in an increase of professional costs, which impact our bottom line 2023 financial year. It is crucial to understand that all of those decisions made by Genius Group, while having immediate financial implication, are made with the vision for the future, ensuring the group's stability and growth. We previously announced that the 2023 earnings would be heavily weighted towards H2. This aspect of the financial guidance has remained the same.

That's it.

Roger enumerated the series of corporate inactivity undertaken by Gini's group to defend the shareholders.

which resulted in an increase of professional costs which impact our bottom line in 2023 financially.

Erez Simha: As we accelerate the integration of our acquired company, we will have a growing operating leverage driven by top-line synergy from our EdTech platform and the digitization of our portfolio products. All these factors combined reinforce our confidence in H2 weighting of our 2023 earnings and our strategic direction as well. Overall, we are happy with the Genius Group's corporate and financial development for the H1 of 2023. We continue to expand our operations, content, and customer base. We are innovating and launching new technologies to continue to be the technology leader in the education space, and we believe that the fruit of those investments will be reflected in our operational and financial metrics over time. With that, we thank you for joining the call today, and I would like to open it up now for questions, operator.

It is crucial to understand that all of those decisions made by Genius Group, while having immediate financial implications, are made with divisions for the future, ensuring the group stability involves.

Please stay non –

The 2023 element would be heavily rated towards the second half of the year.

This aspect of the financial guidance has remained the same.

As we accelerate the integration of our acquired company, we have a growing operating leverage driven by toplink synergy from our ad-tech platform and the digitization of our portfolio product. All these factors combined reinforce our confidence in the second half weighting of our 2023 year economy and provide us with something great as a product ofhm Bermuda USA.

in our strategic direction.

Overall, we are happy with the GBS Group of Code 3D and financial developments for the first six months of 2023.

Operator 2: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. The 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 key. One moment please, while we poll for your questions. Our first questions come from the line of Hunter Diamond with Diamond Equity Research. Please proceed with your questions.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. The 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 key. One moment please, while we poll for your questions. Our first questions come from the line of Hunter Diamond with Diamond Equity Research. Please proceed with your questions.

We continue to expand our operations content and customer base. We are innovating and launching new technologies to continue to be the technology leader in the education space. We believe that the fruit of those investments will be reflected.

in our operational and financial metrics over time.

We dead.

We thank you for joining the call today, and I would like to open it up now for questions.

Thank you. We will now be conducting a question and answer session.

If you would like to ask a question, please press star one on your telephone keypad.

Hunter Diamond: Hi, everyone. Congratulations on the strong quarter. My first question, I wanted to see if I could get more color on the joint venture with Groove Digital. You touched on it, but more importantly, how investors should think about the ventures going forward in the business, and whether we can expect more ventures over the near term.

The confirmation tone will indicate your line is in the question queue.

You may press star 2 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 key.

One moment please while we poll for your questions.

Our first questions come from the line of Hunter Diamond with Diamond Equity. Please proceed with your questions.

Erez Simha: Hi, Hunter. Thanks for the question. Yes, the relationship with Groove Digital, I think is a perfect example of the kind of way that we start with partnerships that provide content, and then from there, it then leads into the partnerships that could be joint ventures and then eventually even potential acquisitions. In the case of Groove Digital, which was founded by Mike Filsaime. Mike Filsaime is a veteran in the industry when it comes to digital marketing. He's amassed a big following on his own, and we actually had him as one of our mentors.

Hi everyone, congratulations on the strong quarter. My first question, I wanted to see if I could get more color on the joint venture with Group Digital, you touched on it, but more importantly how investors should think about the ventures going forward in the business and whether we can expect more ventures over the near term. Is the moment good enough for industry candidates?

Hi, Hanzo. Thanks for the question. Yes, the relationship with Group Digital I think is a perfect example of the kind of way that we start with partnerships that provide content, and then from there it leads into the partnerships that could be joint ventures, and then eventually even potential acquisitions. So, in the case...

Roger Hamilton: Within our Mastermind program before we even approached him in terms of a joint venture. This is what we are seeing, is that many of the companies that are already providing exactly the kind of tools that those who are looking to be able to build their businesses or supplement their incomes, that they're seeing us as a key attraction point, for them to come and build their programs into what then can be accredited curriculums.

of Group Visual which was founded by Mike Gossain. Mike Gossain is a veteran in the industry when it comes to digital marketing. He's amassed a big following on his own. And we actually had him as one of our mentors within our mastermind program before we even approached him in terms of a joint venture. And this is what we are seeing is that many of the companies that are already providing …

Roger Hamilton: For example, in the case of Mike Filsaime, he had just launched his Groove AI, which basically allows anyone who might have a retail store online or anyone who has, you know, a course, programs online, that they can now use the AI to build out their webpages, create their ads, answer the customers they have, you know, create their emails, all the good things that we see online that AI can now do. He was already in the advanced stages of building that. Of course, he has done that with a huge team. He's got 40 in this development team just building this out.

exactly the kind of tools that those who are looking to be able to build their businesses or something with their incomes, they are seeing us as a key attraction point for them to come and build their programs into what then can be accredited curriculums. So for example, in the case of Michael Tseng, he had just launched his Groove AI which basically allows anyone who might have a retail store online, or anyone who has a course programs online that they can now use the AI to build out their webpages, create their ads.

Roger Hamilton: When we said, "Well, this is exactly what we're looking for as well, and rather than us building it all ourselves, which comes with great expense, let's joint venture together where we can take all of the value he's built and his IP and connect it directly towards educators with a similar SaaS solution," what we provide to that is our entire community globally, and we can build and grow that together. Because we're also building our own reputation within the circles of influencers that are attracting students, best-selling authors that are attracting students, then from there it was just a natural fit for us to build the 50/50 partnership. We can see that in itself by keeping it as a separate company, but that can also be building substantial value within the group.

answer the customers they have, create their emails, all the good things that we see online that AI can now do.

he was already in the advanced stages of building that. And of course, he has done that with a huge team. He's got a 40 minute development team just building this out. And so when we said, well, this is exactly what we're looking for as well,

and rather than us building it all ourselves which comes with great expense, let's join venture together where we can take all of the value we've built and this IP and connect it directly towards educators with a similar fast solution. And then what we provide to that is our entire community globally, and then we can build and grow that together. And because we are also building our own reputation within the circles of influences that are attracting students, best selling authors that are attracting students, then from there it was the natural fit for us to build the 50-50 partnership. So we can see that in itself by keeping it as a separate company, but that can also be building substantial value within the group. And the answer is yes, you can definitely expect to see many more of these joint ventures. Where it makes sense for us to have acquisitions, and this is the first year in some time we have not been doing any acquisitions, largely acquisitions have a lot to do with can we find the right fit based on our share price which will make sense. And if we are in the process of recovering share price, does it make more sense to have a joint venture at this point, and still get all the benefits for our students by us actually working together with the best in the industry. So hopefully that answers the question.

Roger Hamilton: The answer is yes, you can definitely expect to see many more of these joint ventures, where it makes sense for us to have acquisitions. This is the first year in some time we have not been doing any acquisitions. Largely, acquisitions have a lot to do with can we find the right fit based on our share price which will make sense. If we're in a process of recovering share prices, it makes more sense to have a joint venture at this point, and still get all the benefits for our students, by us actually working together with the best in the industry. Hopefully that answers the question.

Erez Simha: Yeah.

Roger Hamilton: Yeah.

Erez Simha: I want to add one more point, and I think it's one of the consideration that we had was buy versus make, right? Once we agreed on the direction, we were looking for the fastest way to go to the market. In a way that it's a win-win for both sides. I think that the deal and the joint venture position us really, really well in going much faster to the market than doing it ourselves.

I want to add one more point. I think that one of the considerations that we had was buy versus make. Once we agreed on the direction, we were looking for the fastest way to go to the market. In a way, it's win-win for both sides. I think the data and the joint venture position are really, really well in going much faster to the market than doing it.

Hunter Diamond: Great. No, that makes perfect sense, and appreciate the color from both of you. I guess my second question then I'll open up the line. Can you discuss student growth and partner growth? I know those are metrics you disclose to investors and are monitored. Do you expect sort of just the growth to continue along historical levels? Would you expect sort of the student growth to outpace the partner growth given it's a larger market? I'm just curious how you view investors should look at those sort of metrics. Not formal guidance, but just, you know, the industry or how do you expect growth largely?

Roger Hamilton: That's a great question. What I would say on that one is everything that we are doing right now stems right back to when we first launched the company. Some five years ago, we said if we could be growing at 50% a year, and continue on that growth plan, then we would hit 100 million students by the time we get to 2030, right? So that was like an aspirational goal. We have some of our partners and our faculty members that already have reached that goal. For example, Salman Khan, who was one of our summit speakers, was sharing how he got Khan Academy up to 100 million students, and that was specifically just on K-12. We definitely believe there's a great market out there.

Roger Hamilton: The real question is, you know, what is the smartest way for us to be able to get to that number where we are able to support that number of people, especially because there are so many different partners out there that are already reaching, you know, those same groups. You notice that, you know, the fact that we've had, you know, this 41% growth, you know, within six months, which far out, you know, outstrips anyone else that we're seeing as a public company in the tech industry. A large part of that is because we are actually looking not just for the partners that are coming in that may have no students and then are partnering with others on the platform or those who basically have got already a large group of students.

Roger Hamilton: We're seeing examples of where you'll have someone we partner with that will have many students. I mean, give an example like Groove AI, where they already have got many different educators on their platform, and those educators also have got their students. We haven't counted any of the activity happening within the Groove Digital side and what that could create. That, that's just starting with one partner. Don't expect the partner growth to be the same as the student growth because the partners that we are bringing on board, each can bring on board many, many more students with them.

Roger Hamilton: As we grow, we believe that we're gonna see partners that could be bringing, you know, tens, hundreds of thousands or even maybe potentially millions of students with them, on their platform. To give you know, some examples without going into the details of things we haven't yet announced, if anyone was to look at where their own children might be learning from, there's a very good chance that they're not learning from textbooks, they're learning from YouTube, or they're learning from TikTok or Instagram, or they're picking up a book from a best-selling author who has got, you know, some incredible learnings that they're actually sharing out at scale.

can bring on board many, many more students with them.

And as we grow, we believe that we are going to see partners that could be bringing tens, hundreds of thousands, or even maybe potentially millions of students with them on their platform. To give you some examples without going into the details of things we haven't yet announced yet, if anyone was to look at where their own children might be learning from, there's a very good chance that they are not learning from textbooks. They are learning from YouTube, or they are learning from TikTok, or Instagram, or they are picking up a book from a best-selling author who has got some incredible learning that they are actually sharing out at scale. And when that is happening, and you are getting those types of people including podcasters that are actually out there interviewing others, and they are learning when they are actually going through that. But they are not getting any credits. They are not getting any contribution towards their own high school diploma or their university degree. Imagine a world where they are, and eventually what we are providing can be an entire alternative to basically having to go to school and then do your learning in your spare time. So to answer the question, you definitely can see both grow, but the students will grow at a faster rate as we get bigger and bigger partners on board. And in fact, I just have one other thing on this as well when we talk about partners.

Roger Hamilton: When that's happening and you're getting those types of people, including podcasters that are actually out there interviewing others and they're learning when they're actually going through that, but they're not getting any credits, right? They're not getting, you know, any contribution towards their own high school diploma or their university degree. Imagine a world where they are, and eventually, what we are providing can be an entire alternative to basically having to go to school and then do your learning in your spare time. Yes, to answer the question, you definitely can see both grow, but the students will grow at a faster rate as we get bigger and bigger partners on board.

Roger Hamilton: If I can just add one other thing on this as well, when we talk about partners, I think it's important because we didn't go into depth in our presentation, but for anyone listening and thinking, "Okay, well it's interesting that we're talking about education," we're not talking about teachers, we're talking about partners. That's because we believe that education has got three big bottlenecks that each get solved with partnerships. Yes, one of them is that we do need more teachers around the world, 1.5 million per year. We see those as what we call faculty partners.

Roger Hamilton: Faculty partners are those who say, "I don't need to bring the content because I'm already getting world-class content, and I don't need to be connected to a school because I could have schools around the world that could actually be using me as a teacher. But as long as I'm on the platform with my profile, with a good ranking, then if someone wants to pick me as their mentor or their teacher, then they can do that. If the AI recommends me, then great, and I can then be building an entire community of students that I can be serving from my hometown, wherever I happen to be in the world by doing this virtually." As a result, any good teacher anywhere can get a global classroom.

I think it's important because we didn't go into depth.

in our presentation. But for anyone listening and thinking, okay, what's interesting that we're talking about education, we're not talking about teachers, we're talking about partners. That's because we believe that education has got three big bottlenecks.

that each get Solve Group partnerships.

So yes, one of them is that we do need more teachers around the world, $1.5 million per year. We see those as what we call faculty partners. So faculty partners are those who say, I don't need to bring the content, because I'm already getting world-class content, and I don't need to be connected to a school, because I could have schools around the world that could actually be using me as a teacher. But as long as I'm on the platform with my profile, with a good rating, then if someone wants to pick me as their mentor, as their teacher, then they can do that. If the AI recommends me, then great. And I can then be building an entire community of students that I can be serving from my hometown, wherever I happen to be in the world, by doing this virtually. And so as a result, any good teacher anywhere can get a global classroom.

Roger Hamilton: The second type of partnership, those are where we have many people every single day. That's why we went from 12,000 to 14,000 partners. Most of those were fitting in the category of the faculty partners. There's a second type of partner, which are the content partners. The content partners are the ones as you're hearing me talk about things like bestselling authors. The people who have the content but don't have the time to be actually teaching everyone one-on-one. When you connect the content partners who bring in their content, and we then run full customer pathways, and we've had examples of that this year. We've announced Peter Diamandis, who runs the XPRIZE and Singularity University, who basically now is bringing his content on the platform.

Roger Hamilton: Salim Ismail, who already consults with the top exponential organizations around the world, who's bringing his products on the platform. You know, Mike Filsaime was a good example I gave earlier. These are all people that actually would like to have an army of teachers around the world that can be sharing what they have to share in places they wouldn't otherwise reach, and also in different languages. That is the content partners. The third type of partners are the ones who are the delivery partners or what we call the community partners, and they fit in two categories.

Roger Hamilton: One are the people who say, "Well, I'm not gonna be the one teaching, and I'm not gonna be the one that has the content, but I am gonna be the one that has a local school, even if it's just a micro-school at a café, you know, a group of children at my home." So anyone can sign up to what we call a community partner, where they can be a city leader, a country leader, or just basically have their own school. We take the three big bottlenecks, which is that in education generally, the best teachers cannot be reached by everyone. This breaks up that bottleneck. The best content, you know, isn't accessed by everyone or isn't even allowed in the curriculum, in the textbook. That gets solved by this.

Roger Hamilton: Finally, there are people in places where they can't access the best schools, they can now actually create their own schools and build from there. Obviously, the other part of delivery is technology, and that's where all these different technology partnerships that we've been talking about can allow us to scale dramatically as well. Final thing I'll just say on technology partnerships, I think many people may have seen yesterday that there was a podcast with Lex Fridman, and the founder of Meta, Mark Zuckerberg, which was conducted fully in virtual reality. We are seeing this massive growth and shift in this area. Just knowing that by our partnerships with Vatom and GeniusX, we are already at the forefront of the development that's taking place towards this new world of learning.

Roger Hamilton: That's super exciting because it means that we can continue on this growth path, and just continue to find the right partnerships that we can get traction as we go forward. Whereas a lot right now is about positioning, but we're very lucky because while most technology companies in the same field are early revenue, we are positioning while at the same time generating revenue, and building our student and partner base as well.

Hunter Diamond: Great. No, thank you for the comprehensive answer. Again, congratulations on the results, and I appreciate you taking my questions.

Roger Hamilton: Thank you.

Erez Simha: Thanks very much.

Operator 2: Thank you. We have reached the end of our question and answer session. With that, this does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

Operator: Thank you. We have reached the end of our question and answer session. With that, this does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

Great, no thank you thank you for the comprehensive answer and again congratulations on the results and appreciate you taking my questions.

Thank you very much.

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