Guardforce AI Reports Record Revenue of $36.3 Million for 2023

29 April 2024
  • Gross profit increased 43% over the prior year
  • Reports significant advancement in robotic service and AI capabilities expected to enhance market leadership and propel growth

NEW YORK, April 29, 2024 (GLOBE NEWSWIRE) -- Guardforce AI Co., Limited (“Guardforce AI” or the “Company”) (NASDAQ: GFAI, GFAIW), an integrated security, AI and Robot-as-a-Service (RaaS) provider, today announced financial results and provided a business update for the year ended December 31, 2023.

Lei (Olivia) Wang, Chairwoman and Chief Executive Officer of Guardforce AI, stated, "2023 was another transformative year for our Company and I am pleased to report that we achieved record annual revenue of $36.3 million for the year ended December 31, 2023. Also, as a result of this increased revenue, combined with cost-cutting and efficiency measures, our gross profit increased 43% over the year ended December 31, 2022. We attained solid results and enhanced margins, even as the impact of the Covid-19 pandemic lessened, affecting higher margin sales of robots for related cleaning and temperature monitoring applications. Nevertheless, looking back at the past three years, we have not only diversified our RaaS services, but also accelerated our transition to incorporate AI solutions within our RaaS offering, especially in 2023.”

2023 Key Milestones

  • Guardforce AI expanded its clientele within retail and chain stores, aligning with the growth of its secured logistics businesses:
    • This strategy helped the Company better understand clients' needs and develop customized AI solutions.
    • Retail clients became a significant portion of the Company's secured logistics solutions due to their demand for cash processing and trackable digital records.
    • As the only company in Thailand that provides complete end-to-end cash management solutions, including Guardforce Digital Machines (GDM), Guardforce AI extended four important contracts, two of which were with large retail clients. Consequently, approximately half of the Company's top 15 client base now consists of retail and chain stores.
  • Diversified its Robot-as-a-Service (RaaS) solution by:
    • Deepened partnerships and enhanced the Guardforce AI Intelligent Cloud Platform (GFAI ICP) for further AI integration capabilities.
    • Incorporated Google Cloud's language service capabilities into robots and partnered with iApp Technology Co., Limited in Thailand, for cutting-edge Generative AI robot voice interactions and intelligent Q&A capabilities.
    • Developed three types of AI solutions: AI Assistant, AI Security Agent, and AI Advertising solutions.
    • Partnered with VRCN Limited to develop AI Security Agent solutions and became the official technology partner for The Knights Award Season 2 and Major League Basketball in Malaysia.
    • Partnered with Concorde Security Pte in Singapore to integrate security hardware and software systems with GFAI's robots and Platform-as-a-Service (PaaS) for smarter security services.
    • Improved its cloud platform to further support AI advertising services.
  • Focused on robotic AI services in the hospitality industry, recognizing the immense potential of the tourism market.
    • Established a partnership with China International Travel Service Shenzhen Co., Ltd (Nice Tour) to roll out Robot Travel Agent assistants in Guangdong Province, China.
  • Geographically, Guardforce AI strengthened its presence in the Asia Pacific region, including mainland China, through the acquisition of key assets from Shenzhen Kewei Robot Technology Company Ltd in February 2023.
  • Strengthened its balance sheet by converting $15.9 million of debt and interest into ordinary shares at $5.40 per share in September 2023 and raised approximately $23.0 million gross proceeds from two confidentially marketed public offerings closed in May 2023.
  • Ended the year in a strong financial position with approximately $22.0 million in cash and cash equivalents (including restricted cash).

“In 2024, our primary focus in the robotics AI solution business will be to accelerate our robotic/AI transformation. We plan to leverage our extensive customer base in the traditional security sector and invest in expanding our R&D team dedicated to robotic/AI solutions. Collaborating with various partners, we plan to introduce a diverse range of AI solutions, with a particular emphasis on AI solutions tailored for the retail and tourism industries. Our goal is to empower our customers to optimize their sales and marketing operations, ultimately leading to a significant increase in our revenues. In our security logistics business, we foresee significant growth opportunities in the Thailand retail sector, driven by an anticipated surge in Chinese tourists. This influx has the potential to accelerate retail business growth in Thailand and boost both physical cash and electronic transactions in 2024. We will further develop our high-margin GDM business and aim to expand our reach to additional chain retailers and public transportation authorities. Additionally, we continue to carefully manage our expenses and have implemented successful cost reduction strategies, such as process streamlining and resource allocation optimization, which have led to decreased operating expenses overall,” concluded Ms. Wang.

Financial Overview

Our revenue increased by $2.3 million, or 6.8%, to $36.3 million for 2023, compared to $34.0 million for 2022. This increase was primarily due to increased revenue from the Cash-In-Transit business, Guardforce Digital Machine, and Beijing Wanjia Security. Gross profit increased from $3.8 million in 2022 to $5.4 million in 2023, an approximate 43% increase. As a result of our effective management of cost of revenue, our gross profit margin increased from 11.1% in 2022 to 14.9% in 2023. We also made substantial progress by narrowing down the adjusted net loss by 61.5%, or $2.9 million, year over year, primarily attributable to the improvement from gross profit and our effective cost-controlling initiative. Net loss was $29.6 million for 2023 compared to a net loss of $18.6 million for 2022. This variance was mainly due to our business transition from RaaS to Robots with AI solutions, which has resulted in a non-cash impairment impact from obsolete inventory and assets in robotics in 2023. Net loss per share was $4.53 for 2023 compared to $14.97 for 2022. As of December 31, 2023, and 2022, the Company had cash and cash equivalents (including restricted cash) of approximately $22.0 million and $8.2 million, respectively.

About Guardforce AI Co., Ltd.

Guardforce AI Co., Limited (NASDAQ: GFAI/GFAIW) is a global integrated solution provider, focusing on security solutions (since 1982) and AI & robotic solutions (since 2020). Drawing upon its extensive experience in the security industry, spanning over 41 years, along with an established premiere long-term customer base, and robust sales channels, Guardforce AI has embarked on a transformative journey towards becoming a total AI solution provider. While firmly rooted in the Asia Pacific region, Guardforce AI is also expanding its global presence in the U.S. For more information, visit Twitter: @Guardforceai.

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 U.S. Private Securities Litigation Reform Act of 1995. These statements can generally (although not always) be identified by their use of terms and phrases such as anticipate, appear, believe, continue, could, estimate, expect, indicate, intend, may, plan, possible, predict, project, pursue, will, would and other similar terms and phrases, as well as the use of the future tense. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on current beliefs, expectations and assumptions regarding the future of the business of the Company, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control, including the risks described in our registration statements and reports under the heading "Risk Factors" as filed with the Securities and Exchange Commission. Actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Forward-looking statements in this press release speak only as of the date hereof. Unless otherwise required by law, we undertake no obligation to publicly update or revise these forward-looking statements, whether because of new information, future events or otherwise.

Investor Relations:
David Waldman or Natalya Rudman
Crescendo Communications, LLC
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Tel: 212-671-1020

Guardforce AI Corporate Communications
Hu Yu
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

(tables follow)

Guardforce AI Co., Limited and Subsidiaries
Consolidated Statements of Profit and Loss
(Expressed in U.S. Dollars)

   For the years ended
December 31,
   2023  2022  2021 
      (Restated**)  (Restated**) 
Continuing operations:          
Revenue  $36,280,502  $33,965,648  $34,668,872 
Cost of sales   (30,889,226)  (30,196,382)  (31,056,994)
Gross profit   5,391,276   3,769,266   3,611,878 
Provision for expected credit loss on trade receivables and other receivables   (899,433)  -   - 
Allowance for doubtful debts on a related party receivable   (5,637,527)  -   - 
Impairment loss on goodwill   (2,267,583)  -   - 
Impairment loss on intangible assets   (3,713,551)  -   - 
Provision for and write off of withholding taxes receivable   (683,344)  (448,243)  (190,038)
Provision for obsolete inventory   (3,797,552)  (942,882)  - 
Impairment loss on fixed assets   (3,682,789)  (4,408,037)  - 
Stock-based compensation expense   (1,101,800)  (252,095)  - 
Selling, distribution and administrative expenses   (12,910,475)  (14,544,248)  (7,174,290)
Operating loss   (29,302,778)  (16,826,239)  (3,752,450)
Other income, net   461,926   87,616   292,732 
Foreign exchange gains (losses), net   305,026   (590,965)  (1,819,661)
Finance costs   (653,374)  (1,141,830)  (984,843)
Loss before income tax from continuing operations   (29,189,200)  (18,471,418)  (6,264,222)
Provision for income tax (expense) benefit   (434,320)  (132,208)  732,868 
Net loss for the year from continuing operations   (29,623,520)  (18,603,626)  (5,531,354)
Discontinued operations:             
Net profit (loss) for the year from discontinued operations   34,138   (62,432)  39,700 
Net loss for the year   (29,589,382)  (18,666,058)  (5,491,654)
Net loss attributable to non-controlling interests   17,721   101,264   9,727 
Net loss attributable to equity holders of the Company  $(29,571,661) $(18,564,794) $(5,481,927)
Loss per share             
Basic and diluted loss attributable to the equity holders of the Company  $(4.53) $(14.97)* $(11.90)*
Loss per share from continuing operations             
Basic and diluted loss attributable to the equity holders of the Company  $(4.53) $(14.90)* $(11.98)*
Weighted average number of shares used in computation:             
Basic and diluted   6,531,918   1,239,852*  460,719*


*Giving retroactive effect to the 2023 share consolidation on January 31, 2023.


 **Certain amounts have been restated to reflect the reclassification adjustments made between continuing operations and discontinued operations related to the divestiture of Handshake (Note 27).

Guardforce AI Co., Limited and Subsidiaries
Consolidated Balance Sheets
(Expressed in U.S. Dollars)

     As of December 31,
 2023  2022 
Current assets:     
Cash and cash equivalents$20,235,227  $6,930,639 
Restricted cash 100,764   - 
Trade receivables 5,630,805   5,400,186 
Other receivables -   817,564 
Other current assets 1,665,571   1,743,008 
Withholding taxes receivable, net 607,221   757,024 
Inventories 506,403   5,105,770 
Amount due from related parties 2,172,638   14,508,873 
Assets held for sale 201,963   - 
Total current assets 31,120,592   35,263,064 
Non-current assets:       
Restricted cash 1,608,762   1,300,005 
Property, plant and equipment 4,043,725   8,066,761 
Right-of-use assets 2,688,208   4,171,409 
Intangible assets, net 2,836,250   5,793,143 
Goodwill 411,862   2,679,445 
Withholding taxes receivable, net 1,617,625   1,934,072 
Deferred tax assets, net 1,085,477   1,511,753 
Other non-current assets 402,447   447,322 
Total non-current assets 14,694,356   25,903,910 
Total assets$45,814,948  $61,166,974 
Liabilities and equity       
Current liabilities:       
Trade and other payables$3,016,850  $2,633,995 
Borrowings 337,241   3,181,616 
Borrowing from a related party 3,104,149   3,148,500 
Current portion of operating lease liabilities 1,239,066   1,774,192 
Current portion of finance lease liabilities, net 108,597   398,136 
Other current liabilities 3,171,643   2,477,369 
Amount due to related parties 2,898,506   3,868,691 
Convertible note payable -   1,730,267 
Liabilities directly associated with the assets held for sale 130,876   - 
Total current liabilities 14,006,928   19,212,766 
Non-current liabilities:       
Borrowings 44,410   13,899,818 
Operating lease liabilities 1,455,857   2,340,075 
Borrowings from related parties -   1,455,649 
Finance lease liabilities, net 218,996   233,550 
Other non-current liabilities -   43,200 
Provision for employee benefits 4,935,982   4,849,614 
Total non-current liabilities 6,655,245   22,821,906 
Total liabilities 20,662,173   42,034,672 
Ordinary shares – par value $0.12 authorized 300,000,000 shares, issued and outstanding 9,830,373 shares at December 31, 2023; par value $0.12* authorized 7,500,000 shares, issued and outstanding 1,618,977* shares at December 31, 2022 1,179,680   194,313 
Subscription receivable (50,000)  (50,000)
Additional paid in capital 80,983,164   46,231,302 
Legal reserve 223,500   223,500 
Warrants reserve 251,036   251,036 
Accumulated deficit (58,340,675)  (28,769,014)
Accumulated other comprehensive income 985,120   1,112,494 
Capital & reserves attributable to equity holders of the Company 25,231,825   19,193,631 
Non-controlling interests (79,050)  (61,329)
Total equity 25,152,775   19,132,302 
Total liabilities and equity$45,814,948  $61,166,974 

* Giving retroactive effect to the 2023 share consolidation on January 31, 2023.


Guardforce AI Co., Limited and Subsidiaries
Consolidated Statements of Cash Flows
(Expressed in U.S. Dollars)

  For the years ended
December 31,
  2023  2022  2021 
     (Restated*)  (Restated*) 
Cash flows from operating activities         
Net (loss) from continuing operations $(29,623,520) $(18,603,626) $(5,531,354)
Net profit (loss) from discontinued operations  34,138   (62,432)  39,700 
Net (loss)  (29,589,382)  (18,666,058)  (5,491,654)
Adjustments for:            
Depreciation  4,249,646   5,365,312   4,981,259 
Amortization of intangible assets  993,594   616,095   51,383 
Provision for obsolete inventories  3,797,552   942,882   - 
Impairment loss on fixed assets  3,682,789   4,408,037   - 
Stock-based compensation expense  1,101,800   252,095   - 
Impairment loss on intangible assets  3,713,551   -   - 
Impairment loss on goodwill  2,267,583   -   - 
Allowance for doubtful debts on a related party receivable  5,637,527   -   - 
Finance costs  653,460   1,083,276   909,093 
Deferred income taxes  434,315   121,169   (732,868)
Provision for (Recovery of) expected credit loss on trade receivables and other receivables, net  899,433   (7,394)  - 
Increase in provision for and write off of withholding tax receivables  683,344   448,243   190,038 
Loss from fixed assets disposal  208,093   24,250   4,438 
Changes in operating assets and liabilities:            
(Increase) Decrease in trade and other receivables  (312,348)  428,772   (26,740)
Decrease (Increase) in other current assets  (64,759)  (332,188)  236,234 
Decrease (Increase) in inventories  757,518   (2,876,443)  (967,994)
Decrease (Increase) in amount due from related parties  424,979   (15,725,707)  352,432 
Decrease (Increase) in other non-current assets  33,924   (151,170)  (58,431)
Increase (Decrease) in trade and other payables  622,816   (18,773)  (437,086)
(Decrease) Increase in other current liabilities  (258,983)  947,020   1,944,617 
(Decrease) Increase in amount due to related parties  (970,185)  3,884,995   (361,815)
(Increase) Decrease in withholding taxes receivable  (192,502)  258,989   88,353 
Increase (Decrease) in provision for employee benefits  34,534   (193,639)  297,905 
Net cash (used in) generated from operating activities  (1,191,701)  (19,190,237)  979,164 
Cash flows from investing activities            
Acquisition of property, plant and equipment  (2,107,069)  (4,402,394)  (5,235,480)
Proceeds from disposal of property, plant and equipment  -   5,235   - 
Acquisition of intangible assets  (18,476)  (3,242,537)  (13,235)
Acquisition of subsidiaries, net of cash acquired  -   (1,765,933)  24,276 
Net cash used in investing activities  (2,125,545)  (9,405,629)  (5,224,439)
Cash flows from financing activities            
Proceeds from issue of shares  20,867,386   20,346,353   13,244,329 
Proceeds from exercise of warrants  506,692   3,014,710   - 
Proceeds from a convertible note  -   1,500,000   - 
Cash repayment of a convertible note  (554,238)  -   - 
Cash paid for the cancellation of fractional shares  (49,664)  -   - 
Proceeds from borrowings  1,895,151   3,426,096   1,563,444 
Repayment of borrowings  (2,890,252)  (4,499,358)  (1,334,930)
Payment of lease liabilities  (2,652,150)  (2,849,816)  (2,819,531)
Net cash generated from financing activities  17,122,925   20,937,985   10,653,312 
Net increase (decrease) in cash and cash equivalents, and restricted cash  13,805,679   (7,657,881)  6,408,037 
Effect of movements in exchange rates on cash held  (62,928)  34,714   (684,136)
Cash and cash equivalents, and restricted cash at beginning of year  8,230,644   15,853,811   10,129,910 
Cash and cash equivalents, and restricted cash at end of year $21,973,395  $8,230,644  $15,853,811 
Non-cash investing and financing activities            
Equity portion of purchase consideration paid for acquisition of subsidiaries $-  $4,579,880  $327,763 
Equity portion of the settlement of a borrowing from a third party  15,914,615   -   - 
Equity portion of purchase consideration paid for acquisition of fixed and intangible assets  1,848,000   -   - 

* Certain amounts have been restated to reflect the reclassification adjustments made between continuing operations and discontinued operations related to the divestiture of Handshake 

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 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 loss to EBITDA and non-IFRS net (loss) income for the periods indicated:

  For the years ended
December 31,
  2023  2022  2021 
Net loss from continuing operations – IFRS $(29,623,520) $(18,603,626) $(5,531,354)
Finance costs  653,374   1,141,830   984,843 
Income tax expense (benefit)  434,320   132,208   (732,868)
Depreciation and amortization expense  5,243,240   5,981,407   5,032,642 
EBITDA  (23,292,586)  (11,348,181)  (246,737)
Stock based compensation expense  1,101,800   252,095   - 
Provision for expected credit loss on trade receivables and other receivables  899,433   -   - 
Allowance for doubtful debts on a related party  5,637,527   -   - 
Impairment on goodwill  2,267,583   -   - 
Impairment on intangible assets  3,713,551   -   - 
Write off of/ Provision for withholding tax receivables  683,344   448,243   190,038 
Provision for obsolete inventories  3,797,552   942,882   - 
Impairment loss on fixed assets  3,682,789   4,408,037   - 
Foreign exchange gains (losses), net  (305,026)  590,965   1,819,661 
Adjusted net (loss) income (Non-IFRS) $(1,814,033) $(4,705,959) $1,762,962 
Non-IFRS (loss) earnings per share            
Basic and diluted (loss) profit for the year attributable to ordinary equity holders of the Company $(0.28) $(3.80) $3.83 
Weighted average number of shares used in computation:            
Basic and diluted  6,531,918   1,239,852*  460,719*


*Giving retroactive effect to the 2023 share consolidation on January 31, 2023.


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