“In our secured logistic business, we made progress in diversifying our services by targeting the retail sector, including food and beverage businesses, which handle large amounts of cash. These businesses are also potential targets for our robotics business. Notably, we secured a 5-year contract with the
“We continue to strengthen our presence in the
“With an expanded global footprint and growing AI resources, we are expanding our RaaS solutions, such as Artificial Intelligence of Things (AIoT) robot advertising, AI-based support for hotels, and other uses of AI services. We are witnessing particularly strong demand within the tourism industry. Towards that end, we have made significant progress in developing the Guardforce AI Intelligent Cloud Platform (GFAI ICP) and successfully set up three main hubs for the GFAI ICP in Mainland China,
“The hospitality industry is an important and major market for our robotic solutions. Towards that end, we partnered with
"In summary, we have built a highly scalable business model and expect to resume strong organic revenue growth in 2023, in addition to accelerating the rollout of our RaaS platform through both acquisitions and organic growth strategies,” concluded
Financial Overview
Net revenue decreased by
About
Safe Harbor Statement
This press release contains statements that do not relate to historical facts but are "forward-looking statements" within the meaning of the safe harbor provisions of the
Investor Relations:
Email: gfai@crescendo-ir.com
Tel: 212-671-1020
Email: yu.hu@guardforceai.com
(tables follow)
Consolidated Statements of Profit and Loss
(Expressed in
For the years ended | |||||||||||||
2022 | 2021 | 2020 | |||||||||||
Revenue | $ | 34,477,948 | $ | 35,153,190 | $ | 37,648,782 | |||||||
Cost of sales | (30,246,724 | ) | (31,084,833 | ) | (31,374,098 | ) | |||||||
Gross profit | 4,231,224 | 4,068,357 | 6,274,684 | ||||||||||
Provision for and write off of withholding taxes receivable | (448,243 | ) | (190,038 | ) | (1,722,762 | ) | |||||||
Provision for obsolete inventory | (942,882 | ) | - | - | |||||||||
Impairment loss on fixed assets | (4,408,037 | ) | - | - | |||||||||
Selling, distribution and administrative expenses | (15,320,201 | ) | (7,582,043 | ) | (6,674,472 | ) | |||||||
Operating loss | (16,888,139 | ) | (3,703,724 | ) | (2,122,550 | ) | |||||||
Other income, net | 88,732 | 285,220 | 52,956 | ||||||||||
Foreign exchange gains, net | (590,965 | ) | (1,821,175 | ) | 68,924 | ||||||||
Finance costs | (1,143,478 | ) | (984,843 | ) | (898,748 | ) | |||||||
Loss before income tax | (18,533,850 | ) | (6,224,522 | ) | (2,899,418 | ) | |||||||
Provision for income tax (expense) benefit | (132,208 | ) | 732,868 | (242,837 | ) | ||||||||
Net loss for the year | (18,666,058 | ) | (5,491,654 | ) | (3,142,255 | ) | |||||||
Less: net loss attributable to non-controlling interests | 101,264 | 9,727 | 16,231 | ||||||||||
Net loss attributable to equity holders of the Company | $ | (18,564,794 | ) | $ | (5,481,927 | ) | $ | (3,126,024 | ) | ||||
Loss per share | |||||||||||||
Basic and diluted loss attributable to the equity holders of the Company | $ | (14.97 | )* | $ | (11.90 | )* | $ | (7.26 | )** | ||||
Weighted average number of shares used in computation: | |||||||||||||
Basic and diluted | 1,239,852 | * | 460,719 | * | 430,381 | ** |
* | Giving retroactive effect to the 2023 share consolidation on |
** | Giving retroactive effect to the 2021 and 2023 share consolidation on |
Consolidated Balance Sheets
(Expressed in
As of | ||||||||
2022 | 2021 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 6,930,639 | $ | 12,728,783 | ||||
Restricted cash | - | 1,600,000 | ||||||
Trade receivables | 5,400,186 | 4,939,568 | ||||||
Other receivables | 817,564 | - | ||||||
Other current assets | 1,743,008 | 1,275,981 | ||||||
Withholding taxes receivable, net | 757,024 | - | ||||||
Inventories | 5,105,770 | 1,387,549 | ||||||
Amount due from related parties | 14,508,873 | 26,007 | ||||||
Total current assets | 35,263,064 | 21,957,888 | ||||||
Non-current assets: | ||||||||
Restricted cash | 1,300,005 | 1,525,028 | ||||||
Property, plant and equipment | 8,066,761 | 9,897,301 | ||||||
Right-of-use assets | 4,171,409 | 2,364,993 | ||||||
Intangible assets, net | 5,793,143 | 164,316 | ||||||
2,679,445 | 329,534 | |||||||
Withholding taxes receivable, net | 1,934,072 | 3,531,953 | ||||||
Deferred tax assets, net | 1,511,753 | 1,635,638 | ||||||
Other non-current assets | 447,322 | 345,586 | ||||||
Total non-current assets | 25,903,910 | 19,794,349 | ||||||
Total assets | $ | 61,166,974 | $ | 41,752,237 | ||||
Liabilities and equity | ||||||||
Current liabilities: | ||||||||
Trade and other payables | $ | 2,633,995 | $ | 1,028,721 | ||||
Borrowings | 947,559 | 933,110 | ||||||
Borrowings from related parties | 3,148,500 | 13,506,184 | ||||||
Current portion of operating lease liabilities | 1,774,192 | 2,366,045 | ||||||
Current portion of finance lease liabilities, net | 398,136 | 619,301 | ||||||
Other current liabilities | 2,477,369 | 1,824,635 | ||||||
Amount due to related parties | 6,102,748 | 2,217,752 | ||||||
Convertible note payables | 1,730,267 | - | ||||||
Total current liabilities | 19,212,766 | 22,495,748 | ||||||
Non-current liabilities: | ||||||||
Borrowings | 432,179 | 859,120 | ||||||
Operating lease liabilities | 2,340,075 | - | ||||||
Borrowings from related parties | 14,923,288 | 5,332,803 | ||||||
Finance lease liabilities, net | 233,550 | 666,455 | ||||||
Other non-current liabilities | 43,200 | 54,000 | ||||||
Provision for employee benefits | 4,849,614 | 5,819,132 | ||||||
Total non-current liabilities | 22,821,906 | 12,731,510 | ||||||
Total liabilities | 42,034,672 | 35,227,258 | ||||||
Equity | ||||||||
Ordinary shares – par value | 194,313 | 63,606 | ||||||
Subscription receivable | (50,000 | ) | (50,000 | ) | ||||
Additional paid in capital | 46,231,302 | 15,379,595 | ||||||
Legal reserve | 223,500 | 223,500 | ||||||
Warrants reserve | 251,036 | 251,036 | ||||||
Accumulated deficit | (28,769,014 | ) | (10,204,220 | ) | ||||
Accumulated other comprehensive income | 1,112,494 | 821,527 | ||||||
Capital & reserves attributable to equity holders of the Company | 19,193,631 | 6,485,044 | ||||||
Non-controlling interests | (61,329 | ) | 39,935 | |||||
Total equity | 19,132,302 | 6,524,979 | ||||||
Total liabilities and equity | $ | 61,166,974 | $ | 41,752,237 |
* | Giving retroactive effect to the 2023 share consolidation on |
Consolidated Statements of Cash Flows
(Expressed in
For the years ended | ||||||||||||
2022 | 2021 | 2020 | ||||||||||
Cash flows from operating activities | ||||||||||||
Net loss | $ | (18,666,058 | ) | $ | (5,491,654 | ) | $ | (3,142,255 | ) | |||
Adjustments for: | ||||||||||||
Depreciation | 5,365,312 | 4,981,259 | 4,979,274 | |||||||||
Amortization of intangible assets | 616,095 | 51,383 | 54,745 | |||||||||
Provision for obsolete inventories | 942,882 | - | - | |||||||||
Impairment loss on fixed assets | 4,408,037 | - | - | |||||||||
Stock-based compensation | 252,095 | - | 100,936 | |||||||||
Finance costs | 1,083,276 | 909,093 | 650,492 | |||||||||
(Decrease) Increase in deferred tax assets | 121,169 | (732,868 | ) | (30,135 | ) | |||||||
Recovery of doubtful accounts, net | (7,394 | ) | - | (2,872 | ) | |||||||
(Decrease) Increase in provision for withholding tax receivables | (147,002 | ) | 190,038 | 1,012,543 | ||||||||
Write off of withholding tax receivables | 595,245 | - | 710,219 | |||||||||
Loss/(Gain) from fixed assets disposal | 24,250 | 4,438 | (431 | ) | ||||||||
Changes in operating assets and liabilities: | ||||||||||||
Decrease/(Increase) in trade and other receivables | 428,772 | (26,740 | ) | 389,320 | ||||||||
(Increase)/Decrease in other current assets | (332,188 | ) | 236,234 | 123,764 | ||||||||
(Increase) in inventories | (2,876,443 | ) | (967,994 | ) | (484,745 | ) | ||||||
(Increase)/ Decrease in amount due from related parties | (15,725,707 | ) | 352,432 | (373,003 | ) | |||||||
(Increase)/Decrease on other non-current assets | (151,170 | ) | (58,431 | ) | 162,998 | |||||||
(Decrease) in trade and other payables | (694,981 | ) | (437,086 | ) | (561,769 | ) | ||||||
Decrease/(Increase) in other current liabilities | 947,020 | 1,944,617 | (670,072 | ) | ||||||||
Increase in income tax payables | - | - | 272,972 | |||||||||
Increase/(Decrease) in amount due to related parties | 3,884,995 | (361,815 | ) | 529,489 | ||||||||
Decrease in withholding taxes receivable | 258,989 | 88,353 | 799,606 | |||||||||
(Increase)/Decrease in provision for employee benefits | (193,639 | ) | 297,905 | 386,425 | ||||||||
Net cash (used in) generated from operating activities | (19,866,445 | ) | 979,164 | 4,907,501 | ||||||||
Cash flows from investing activities | ||||||||||||
Acquisition of property, plant and equipment | (3,726,186 | ) | (5,235,480 | ) | (1,405,190 | ) | ||||||
Proceeds from disposal of property, plant and equipment | 5,235 | - | - | |||||||||
Acquisition of intangible assets | (3,242,537 | ) | (13,235 | ) | (26,316 | ) | ||||||
Acquisition of subsidiaries, net of cash acquired | (1,765,933 | ) | 24,276 | - | ||||||||
Net cash used in investing activities | (8,729,421 | ) | (5,224,439 | ) | (1,431,506 | ) | ||||||
Cash flows from financing activities | ||||||||||||
Proceeds from issue of shares | 20,346,353 | 13,244,329 | - | |||||||||
Proceeds from exercise of warrants | 3,014,710 | - | - | |||||||||
Proceeds from a convertible note | 1,500,000 | - | - | |||||||||
Proceeds from borrowings | 3,426,096 | 1,563,444 | 7,363,163 | |||||||||
Repayment of borrowings | (4,499,358 | ) | (1,334,930 | ) | (5,371,766 | ) | ||||||
Payment of lease liabilities | (2,849,816 | ) | (2,819,531 | ) | (3,124,361 | ) | ||||||
Net cash generated from (used in) financing activities | 20,937,985 | 10,653,312 | (1,132,964 | ) | ||||||||
Net (decrease) increase in cash and cash equivalents, and restricted cash | (7,657,881 | ) | 6,408,037 | 2,343,031 | ||||||||
Effect of movements in exchange rates on cash held | 34,714 | (684,136 | ) | 99,158 | ||||||||
Cash and cash equivalents, and restricted cash at beginning of year | 15,853,811 | 10,129,910 | 7,687,721 | |||||||||
Cash and cash equivalents, and restricted cash at end of year | $ | 8,230,644 | $ | 15,853,811 | $ | 10,129,910 | ||||||
Non-cash investing and financing activities | ||||||||||||
Equity portion of purchase consideration paid for acquisition of subsidiaries | $ | 4,579,880 | $ | 327,763 | $ | - | ||||||
Non-IFRS Financial Measures
To supplement our unaudited interim condensed consolidated financial statements, which are prepared and presented in accordance with IFRS, we use the non-IFRS adjusted EBITDA as financial measures for our consolidated results.
We believe that adjusted EBITDA helps identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income (loss) from operations and net income (loss). We believe that these non-IFRS measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. We present the non-IFRS financial measures in order to provide more information and greater transparency to investors about our operating results.
EBITDA represents net (loss) income before (i) finance costs, income tax benefit and depreciation of fixed assets and amortization of intangible assets, which we do not believe are reflective of our core operating performance during the periods presented.
Non-IFRS adjusted net (loss) income represents net (loss) income before (i) finance costs, income tax benefit and depreciation of fixed assets and amortization of intangible assets, (ii) certain non-cash expenses, consisting of stock-based compensation expense, allowance for and write off of withholding tax receivables, provision for obsolete inventory and impairment loss on fixed assets.
Non-IFRS (loss) earnings per share represents non-IFRS net (loss) income attributable to ordinary shareholders divided by the weighted average number of shares outstanding during the periods. Non-IFRS diluted (loss) earnings per share represents non-IFRS net (loss) income attributable to ordinary shareholders divided by the weighted average number of shares outstanding during the periods on a diluted basis.
The table below is a reconciliation of our net income to EBITDA and non-IFRS net income for the periods indicated:
For the years ended | ||||||||||||
2022 | 2021 | 2020 | ||||||||||
Net loss – IFRS | $ | (18,666,058 | ) | $ | (5,491,654 | ) | $ | (3,142,255 | ) | |||
Finance costs | 1,143,478 | 984,843 | 898,748 | |||||||||
Income tax expense (benefit) | 132,208 | (732,868 | ) | 242,837 | ||||||||
Depreciation and amortization expense | 5,981,407 | 5,032,642 | 5,034,019 | |||||||||
EBITDA | (11,408,965 | ) | (207,037 | ) | 3,033,349 | |||||||
Written off/ Provision for withholding tax receivables | 448,243 | 190,038 | 1,722,762 | |||||||||
Provision for obsolete inventories | 942,882 | - | - | |||||||||
Impairment loss on fixed assets | 4,408,037 | - | - | |||||||||
Foreign exchange losses (gains), net | 590,965 | 1,821,175 | (68,294 | ) | ||||||||
Adjusted net (loss) income (Non-IFRS) | $ | (5,018,838 | ) | $ | 1,804,176 | $ | 4,687,817 | |||||
Non-IFRS (loss) earnings per share | ||||||||||||
Basic and diluted (loss) profit for the year attributable to ordinary equity holders of the Company | $ | (4.05 | ) | $ | 3.92 | $ | 10.89 | |||||
Weighted average number of shares used in computation: | ||||||||||||
Basic and diluted | 1,239,852 | * | 460,719 | * | 430,381 | ** |
* | Giving retroactive effect to the 2023 share consolidation on |
** | Giving retroactive effect to the 2021 and 2023 share consolidation on |
Source:
2023 GlobeNewswire, Inc., source