Genius Group(GNS) - 2023 Q3 - Quarterly Report

Student Base and Growth - The total student base on the GeniusU platform reached 3.34 million as of June 30, 2023, with a 15% annual growth rate[6] - Paying students increased by 9% annually, totaling 45,038, while faculty and partners grew by 2% to 13,165[7] - The company has 5.7 million to 6.0 million students and users, reflecting growth in its user base[35] Revenue and Profitability - Group revenues surged by 120.5% from $5.3 million in the first half of 2022 to $11.8 million in the first half of 2023[12] - Education Revenue rose by 159.54% from $3.45 million to $8.96 million, while Campus Revenue increased by 50% from $1.89 million to $2.83 million[12] - The gross profit for Q2 2023 was $6.20 million, compared to $2.23 million in Q2 2022, indicating improved operational efficiency[38] - Total sales for the six months ended June 30, 2023, were $11.80 million, a significant increase from $5.34 million in the same period of 2022, reflecting a growth of approximately 120%[42] - The gross profit for the six months ended June 30, 2023, was $6.20 million, compared to $2.23 million in the prior year, indicating an increase of about 178%[42] Expenses and Losses - Operating expenses increased to $15.36 million in the first half of 2023, up from $5.68 million in the first half of 2022[16] - The Group reported a negative Adjusted EBITDA of $7.32 million in the first half of 2023, compared to a negative $1.96 million in the first half of 2022[22] - For the six months ended June 30, 2023, the company reported a net loss of $10.77 million, compared to a net loss of $3.50 million for the same period in 2022, representing an increase in loss of approximately 208%[42] Financial Position - Cash and cash equivalents decreased to $2.62 million as of June 30, 2023, down from $5.72 million as of December 31, 2022[23] - Current assets fell from $24.25 million to $9.35 million, resulting in a current ratio of 0.53[24] - Shareholders' equity declined from $13.95 million to $6.13 million due to a loss of $10.77 million in the first half of 2023[28] - Total current assets as of June 30, 2023, were $9.35 million, a decrease from $24.25 million at the end of 2022, representing a decline of approximately 61%[42] - The company had a total shareholders' equity of $6.14 million as of June 30, 2023, compared to $13.96 million at the end of 2022, reflecting a decrease of approximately 56%[42] Liabilities and Financial Management - Current liabilities decreased to $17.48 million from $23.38 million as of December 31, 2022, indicating improved financial management[37] - The total liabilities decreased to $69.26 million as of June 30, 2023, from $77.30 million at the end of 2022[37] - The company signed a bridge note for $3.2 million on July 26, 2023, with $1 million received in July and August[33] - The outstanding principal value of a secured convertible note was $53,343 as of August 31, 2023, with $11.03 million settled during July and August 2023[34] Future Projections - The company reported a 2023 annual revenue guidance of $26.0 million to $29.0 million, representing an increase from 2022's revenue of $18.2 million[35] - The net loss for 2023 is projected to be between $15.5 million and $17.0 million, a significant improvement compared to the 2022 net loss of $55.3 million[35]