Greetings, welcome to the Genius Group First Half 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. [Operator Instructions]. 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.

Hi, everyone, and thank you for joining our first half 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. 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 relationship, 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. 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. And we're providing a lifelong learning curriculum that can be accessed anywhere, anytime, and at any age to prepare them for the future. We have 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-on-year and increased our gross margins to 52.6%. In the last six 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 Metaversity, to 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. 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. Our strong growth is underpinned by favorable industry dynamics and trends. The global education and training industry is one of the industry's most in need of disruption and upgrading. The education market intelligence firm HolonIQ forecast…

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 this $5.3 million in the first half of 2022. The strong growth was driven by an increase of 159.5% in education revenue to $8.96 million and the 50% increase in campus revenue to $2.83 million. The strong increase in two segments was due to the revenue from our acquisition and an increasing demand leads to capacity expansion and operations coming back to normal after COVID. Our pro forma revenue 2023 was $9 million in the first half of 2023, after excluding the spinoff results revenue. The Group’s gross margin has increased to 52.6% in H1 2023, compared to 42% in the first half of 2022. Our cost of revenue declined in percentage terms in 2023 as a result of improved results from our campus business and the acquisitions, we had higher gross margin, the marketing spend and investment in development assets in the first half of 2023 is consistent in the comparison to the first half of 2022. To-date, we have been maintaining a balance between growth and positive gross margin, it means we are not being overly aggressive in our marketing spend, and this is reflected in our current gross margin. In the first half of 2023, the pro forma cost of revenue was $4.63 million giving us a 48.33% gross margin. By owning the majority of curriculum and courses across all companies and acquisitions, we are focused on maintaining low cost of content and high gross margin. The cost of revenue that we do incur is mainly our customers acquisition cost and our faculty cost. In the future, we will continue to focus on further improving our overall gross margin through synergies…

[Operator Instructions] Our first question is come from the line of Hunter Diamond with Diamond Equity. Please proceed with your questions.

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 our investors should think about the ventures going forward in the business, and whether we can expect more ventures over the near term?

Hi. Hunter thanks for the question. Yes, the relationship with Group Digital, I think it's a perfect example of the kind of way that we start with partnerships that provide content. And then from there, and then deep into the partnerships, that could be joint ventures, and then eventually even potential acquisitions. So in the case of Group Digital, which was founded by Michael St. Michael St. 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 to them in terms of a joint venture. And 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 something their incomes, and 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. So 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, 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 huge team, he has got 40 in his [ph] development team just building this out. And so when we said well, which is exactly what we're looking for, as well, and rather than…

I want to have one more point. And I think it's one of the considerations that we had was [indiscernible]. 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. And I think the data and the joint venture position us really, really well in going much faster to the market than doing it ourselves.

Great. No, that makes perfect sense and appreciate the color from both of you. So 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 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 and investors should look at those sort of metrics, not formal guidance, but just you know, the industry or how do you expect growth largely?

That's a great question. And 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, that 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. So for example, Salman Khan, who was one of our summit speakers, was sharing how he got Khan Academy up to 100 million students. That was specifically just on K12. And so we definitely believe there's a great market out there and 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. So you notice that, you know, the fact that we've had this 41% growth, within six months which far outstrips anyone else that we're seeing as a public companies in the EdTech. Industry. A large part of that is because we are actually looking not just for the partners that are coming in, there 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. And we're seeing examples of where you'll have someone we partner with, that'll have many students, I mean, give an example, like Groove AI, where they already have gotten many different educators on their platform. And those educators also have…

Great. Thank you for the comprehensive answer. And again, congratulations on the results and appreciate you taking my questions.

Thanks very much.

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.