| RESTATEMENT OF THE PREVIOUSLY ISSUED AUDITED CONSOLIDATED FINANCIAL STATEMENTS |
NOTE 35 — RESTATEMENT OF THE PREVIOUSLY ISSUED AUDITED CONSOLIDATED FINANCIAL STATEMENTS
The financial statements have been restated to reflect the correction to the accounting policy for common control business combinations as discussed in Note 2 for the following common control business combinations:
|
● |
acquisition of Entrepreneur Resorts Pte Ltd (“ERPL”) by Entrepreneur Resorts Ltd (“ER”) in May 2017 |
|
● |
acquisition of Wealth Dynamics Pte Ltd (“WD”) by Genius Group Ltd (“GG”) on August 30, 2019 |
|
● |
acquisition of Entrepreneur Resorts Ltd (“ER”) by Genius Group Ltd (“GG”) on June 30, 2020 |
The impact of the restatement on the Consolidated Statements of Financial Position as of December 31, 2020 and 2019 and the Consolidated Statements of Operations and Comprehensive Loss, Consolidated Statements of Changes in Stockholders’ Equity and Consolidated Statements of Cash Flows for the years then ended is presented in the tables below.
As of and for the year ended December 31, 2020
|
● |
increase in Property and equipment $346,144, being reversal of translation adjustment on ER acquisition and subsequent depreciation
|
|
● |
reduction in Goodwill of $17,437,545 to remove increase in valuation arising from ERPL, WD and ER acquisitions
|
|
● |
reduction in Intangible assets of $19,736,335 to remove increase in valuation arising from WD and ER acquisitions and subsequent amortization
|
|
● |
reduction in Deferred tax liability of $3,291,521 relating to Intangible assets on WD and ER acquisitions and subsequent amortization
|
|
● |
the recording of a $33,900,850 reduction to reserves account being the excess of purchase consideration over book value of net assets on ERPL, WD and ER acquisitions
|
|
● |
reduction in Cost of revenue of $569,733 being reduction in amortization of intangible assets
|
|
● |
reduction in Income tax benefit of $285,331 being reduction in amortization of deferred tax liability
|
|
● |
increase in Non-controlling interest of $5,869 as a result of reduction in Net loss
|
|
● |
reduction in Basic and diluted loss per share from continuing operations of $0.02 as a result of reduction in Net loss
|
As of and for the year ended December 31, 2019
|
● |
reduction in Goodwill of $8,778,904 to remove increase in valuation arising from ERPL and WD acquisitions
|
|
● |
reduction in Intangible assets of $5,243,333 to remove increase in valuation arising from WD acquisition and subsequent amortization
|
|
● |
reduction in Deferred tax liability of $581,134 relating to Intangible assets on WD acquisition and subsequent amortization
|
|
● |
the recording of a $13,521,337 reduction to reserves account being the excess of purchase consideration over book value of net assets on ERPL and WD acquisitions
|
|
● |
reduction in Cost of revenue of $96,667 being reduction in amortization of intangible assets
|
|
● |
reduction in Income tax benefit of $16,433 being reduction in amortization of deferred tax liability
|
|
● |
reduction in Basic and diluted loss per share from continuing operations of $0.01 as a result of reduction in Net loss
|
|
|
As previously |
|
|
|
|
|
|
reported |
|
Adjustments |
|
Restated |
|
|
$ |
|
$ |
|
$ |
Statement of financial position |
|
|
|
|
|
|
As of December 31, 2020 |
|
|
|
|
|
|
Property and equipment |
|
7,250,846 |
|
346,144 |
|
7,596,990 |
Goodwill |
|
18,647,498 |
|
(17,437,545) |
|
1,209,953 |
Intangible assets |
|
20,741,249 |
|
(19,736,335) |
|
1,004,914 |
Total Assets |
|
53,785,449 |
|
(36,827,736) |
|
16,957,713 |
Deferred tax liability |
|
4,166,946 |
|
(3,291,521) |
|
875,425 |
Total Liabilities |
|
12,543,145 |
|
(3,291,521) |
|
9,251,624 |
Reserves |
|
1,788,051 |
|
(33,900,850) |
|
(32,112,799) |
Accumulated deficit |
|
(9,526,614) |
|
358,766 |
|
(9,167,848) |
Capital and reserves attributable to owners of Genius Group Ltd |
|
40,991,019 |
|
(33,542,084) |
|
7,448,935 |
Non-controlling interest |
|
251,285 |
|
5,869 |
|
257,154 |
Total Stockholder’s Equity. |
|
41,242,304 |
|
(33,536,215) |
|
7,706,089 |
Total Liabilities and Stockholder’s Equity |
|
53,785,449 |
|
(36,827,736) |
|
16,957,713 |
As of December 31, 2019 |
|
|
|
|
|
|
Goodwill |
|
9,988,857 |
|
(8,778,904) |
|
1,209,953 |
Intangible assets. |
|
6,165,712 |
|
(5,243,333) |
|
922,379 |
Total assets |
|
31,582,385 |
|
(14,022,237) |
|
17,560,148 |
Deferred tax liability |
|
1,317,779 |
|
(581,134) |
|
736,645 |
Total liabilities |
|
12,810,585 |
|
(581,134) |
|
12,229,451 |
Reserves |
|
(323,067) |
|
(13,521,337) |
|
(13,844,404) |
Accumulated deficit |
|
(6,130,926) |
|
80,234 |
|
(6,050,692) |
Capital and reserves attributable to owners of Genius Group Ltd |
|
18,771,800 |
|
(13,441,103) |
|
5,330,697 |
Total Stockholder’s Equity |
|
18,771,800 |
|
(13,441,103) |
|
5,330,697 |
Total Liabilities and Stockholder’s Equity |
|
31,582,385 |
|
(14,022,237) |
|
17,560,148 |
Statement of profit or loss and other comprehensive income |
|
|
|
|
|
|
For the year ended December 31, 2020 |
|
|
|
|
|
|
Cost of Revenue |
|
(4,703,841) |
|
569,733 |
|
(4,134,108) |
Gross profit |
|
2,929,935 |
|
569,733 |
|
3,499,668 |
Loss from Operations |
|
(3,250,582) |
|
569,733 |
|
(2,680,849) |
Loss Before Income Tax |
|
(3,692,802) |
|
569,733 |
|
(3,123,069) |
Income tax benefit (expense) |
|
216,086 |
|
(285,331) |
|
(69,245) |
Net (loss) |
|
(3,476,716) |
|
284,402 |
|
(3,192,314) |
Non-controlling interest |
|
(63,065) |
|
5,869 |
|
(57,196) |
Total Comprehensive (loss) |
|
(1,347,635) |
|
284,402 |
|
(1,063,233) |
Basic and diluted earnings (loss) per share from continuing operations |
|
(0.27) |
|
0.02 |
|
(0.25) |
For the year ended December 31, 2019 |
|
|
|
|
|
|
Cost of Revenue |
|
(5,120,969) |
|
96,667 |
|
(5,024,302) |
Gross profit |
|
4,828,088 |
|
96,667 |
|
4,924,755 |
Loss from Operations |
|
(1,135,540) |
|
96,667 |
|
(1,038,873) |
Loss Before Income Tax |
|
(1,215,676) |
|
96,667 |
|
(1,119,009) |
Income tax benefit (expense) |
|
(94,877) |
|
(16,433) |
|
(111,310) |
Net (loss) |
|
(1,310,553) |
|
80,234 |
|
(1,230,319) |
Total Comprehensive Income (loss) |
|
(1,618,725) |
|
80,234 |
|
(1,538,491) |
Basic and diluted earnings (loss) per share from continuing operations. |
|
(0.15) |
|
0.01 |
|
(0.14) |
Statement of changes in equity |
|
|
|
|
|
|
For the year ended December 31, 2020 |
|
|
|
|
|
|
Non-controlling interest. |
|
251,285 |
|
5,869 |
|
257,154 |
Reserves |
|
1,788,051 |
|
(33,900,850) |
|
(32,112,799) |
Accumulated losses |
|
(9,526,614) |
|
358,766 |
|
(9,167,848) |
Total Equity |
|
41,242,304 |
|
(33,536,215) |
|
7,706,089 |
For the year ended December 31, 2019 |
|
|
|
|
|
|
Reserves. |
|
(323,067) |
|
(13,521,337) |
|
(13,844,404) |
Accumulated deficit |
|
(6,130,926) |
|
80,234 |
|
(6,050,692) |
Total Equity |
|
18,771,800 |
|
(13,441,103) |
|
5,330,697 |
Statement of cash flows |
|
|
|
|
|
|
For the year ended December 31, 2020 |
|
|
|
|
|
|
Net loss |
|
(3,476,716) |
|
284,402 |
|
(3,192,314) |
Amortization of deferred tax liability |
|
(166,396) |
|
97,588 |
|
(68,808) |
Deferred tax liability |
|
(49,691) |
|
187,743 |
|
138,052 |
Depreciation and amortization |
|
2,140,326 |
|
(569,733) |
|
1,570,593 |
Total adjustments to reconcile net loss to net cash used in |
|
|
|
|
|
|
operating activities. |
|
1,349,503 |
|
(284,402) |
|
1,065,101 |
For the year ended December 31, 2019 |
|
|
|
|
|
|
Net loss before income tax |
|
(1,310,553) |
|
80,234 |
|
(1,230,319) |
Amortization of deferred tax liability |
|
(16,433) |
|
16,433 |
|
— |
Depreciation and amortization |
|
1,358,775 |
|
(96,667) |
|
1,262,108 |
Total adjustments to reconcile net loss to net cash used in operating activities |
|
24,913 |
|
(80,234) |
|
(55,321) |
|