Greetings, and welcome to the Genius Group First Half 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to Flora Hewitt, Vice President of Investor Relations and Mergers and Acquisitions. Thank you. You may begin.

Hi, everyone, and thank you, for joining our first half 2022 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 table, 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 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. 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.

Thank you, Flora, and good morning, everyone. Our listing on the New York Stock Exchange American represented a major milestone in the ongoing growth of Genius Group and our GeniusU Edtech platform. So I'd like to start this call by saying that I am very proud of our entire team and global community who have played a role in making this as even possible. So I'm going to start by highlighting a few important hires that we have made recently. After having joined our Board of Directors in January, 2022, we appointed Mr. Richard Berman as our Audit Committee Chair in March, 2022. Richard's business career spans over 35 years of venture capital, senior management, and merger and acquisitions experience, and over the past decade, he has served on the Board of five companies that have each reached over a $1 billion in market capitalization, and they are Cryoport, Advaxis, EXIDE, Internet Commerce Corporation, and Ontrak, and he is currently is a Director of four public NASDAQ companies, Cryoport Inc, COMSovereign Holding Corp., BioVie Inc, and Context Therapeutics Inc. We are thrilled that Richard has taken the important role of Audit Chair and believe that his appointment is a tremendous addition to our Board of Directors and that his extensive public company experience will be greatly beneficial to Genius Group. Second addition to our Board of Directors is Mr. Tim Murphy in September, 2022. Tim has 30 years of leadership in the global law enforcement, compliance, intelligence, and business communities. He currently is the President and CEO of Consortium Networks, a cybersecurity and networking company, and serves on the Board of Western Union and Ferris State University. He previously was the President of Thomson Reuters Special Services and a Special Agent and Executive in the FBI where he held a…

Thank you, Roger, and good morning, everyone. We continue to demonstrate strong growth across our platform, expanding the number of students as well as the number of partners, and this has reflected in our financials for the first half of 2022. In H1, we generated the total pro forma revenue of $16.57 million, which is the combination of $7.44 million from the group and $9.13 million from the five acquisitions. Our main revenue segments are educational revenue and campus revenue. Education revenue consists of digital education revenue where the courses are delivered virtually on GeniusU and in-person education revenue where the courses are delivered to our students with the head of our faculty in-person. Campus revenue consists of revenue we generated from our allocation, recommendation, food and beverage charters. Genius Group revenues on a standalone basis grew by 17.2% year-over-year. This internal growth of 17.2% is faster than both of the global education market growth of 4.3% and the global ad tech market growth of 16.3%, that Roger presented earlier, which demonstrates the strength of our Edtech platform. This internal growth was driven by 48% increase in campus revenue and 9.4% increase in our digital education revenue. The strong growth in campus revenue was due to increasing demand from gradual lifting of COVID-19 restrictions. Our revenue on a pro forma basis reached $16.57 million in H1 2022. The group gross margin increased to 29.97% in H1 2022. Our group margin has increased due to the improved results from our campus business, which has a higher growth margin. To date, we have been maintaining a balance between growth and a positive gross margin in which we are not being already aggressive in our marketing spend and this has reflected in our gross margin result. Genius Group pro forma growth margin is…

Thank you. We will now be conducting the question-and-answer session. [Operator Instructions] Our first question has come from the line of Hunter Diamond with Diamond Equity. Please proceed with your questions.

Hi, everyone. Congratulations on the results. So I want to ask more about the acquisitions. How do you think about whether you know to develop an offering internally or pursue an acquisition and what kind of strength are you seeing in the current acquisition pipeline?

Yes. Sure. Yes, I could answer that one. So – hi, Hunter, and thanks for the question. We are looking at the acquisitions from the point of view of which ones are providing the educational content together with the actual student base where we know we can digitize it and take it globally, so in the ones that we have already done, so for example, like with the university, it's actually very exciting times as we actually start integrating the different courses that they have and expand them around the world. The good news about the way that the degree programs work in the U.S. is that there is a level of flexibility where we can take, for example, a business degree, which already has the Department of Education approval and we can give it a concentration. So for example, we can have a business degree in blockchain or business degree in Fintech. We can also do degree programs in areas like Spacetech. So for example, the partnership that got put together with NASA for UAV enables us to be able to work with companies and with those companies then attract those from overseas that would like to actually get a leadership position within the space industry. So these are the kind of areas in which there is a much demand from students who actually want to be learning about these areas as there are companies that are looking for the talent to actually join them as well. So the most important thing about this is – this is the vision that we have when we're actually doing an acquisition of working with the founders to be able to then move into new curriculum and to have co-created curriculum moving forward. We're going to see the results of that in…

No, I think you [indiscernible].

All right. Thank you.

Hunter, did that answered the question okay for you?

Yes. Perfect. Just one follow-on question. In terms of, I guess the current market environment, higher education is as you know extremely expensive. So I would think an offering like yours for starting businesses would thrive in a market like this. If we potentially head into a recession or whatever happens near-term at the economy, are you seeing the same trends demand wise? And do you have the same sort of view that in a market like this Genius Group maybe ideally well positioned?

Yes. There is a clearly big conversation taking place in the U.S. around the level of student debt that is out there at the moment and the extreme cost of education as well. And so the fact that we are now at what $1.7 trillion moving closer to almost like $2 trillion in student debt, which is huge, and even with the Biden administration working hard to forgive student debt where they've forgiven somewhere in the region of $300 billion to $400 billion this year, or hope, or that maximum would be that amount. But with close to 20% increase in student debt every year, that's already like lessened the entire student debt from one-year alone that gets added. So next year there'll be the additional again. And why is that happening? Largely because of the inflated price of a college degree that is out there right now. And so we definitely believe that it is possible with our platform to be able to bring that price point down considerably and give people the option to be able to come on board at a much lower price offline and then pay extra if they'd like to have an accelerated pathway or to get tutors that can support in addition. And that's very much the whole freemium model that we really are focusing at as well. And we have started that process already with a $1 million scholarship program that we extended in the summer at our university, which was very, very popular and we are going to see a lot more of that going forward. So that this in itself, as you mentioned gives us something, which is quite unique and also at the same time puts us in a very competitive position where everything we're doing is student led and is there to ensure that students are getting the right education which is relevant, but also at the right price.

Hunter, I think also that you mentioned recession and possible recession. I think that if we're really going into a recession and education cost will be a factor and we receive more mobility of employees between jobs and employees who wants to acquire new skills and have more time to acquire new skills, I think that we are probably one of the best platform that is positioned for this period because of the cost, because of the variety of product that is also on the platform. And you won't see any other business focus or entrepreneurs focus a platform that can drive such a answer to those employees that are looking for a greater skills to acquire.

Great. And that makes perfect sense. Again, thank you for taking my questions.

Thank you. There are no further questions at this time. 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.

Thanks everyone.

Thank you.

Thanks everyone.