Guardforce AI Co., Limited (“Guardforce AI” or the
“Company”) (NASDAQ:GFAI, GFAIW), an integrated security
solutions provider, today provided a business update and announced
interim financial results for the six months ended June 30, 2022
(“1H 2022”).
Olivia Wang, Chairwoman and Chief Executive
Officer of Guardforce AI, stated, "In the first half of 2022 we
made significant progress transforming Guardforce AI into an
integrated AI and robotics business, complementing our
well-established secured logistics business. Due to the impact of
COVID-19 and the shutdown of certain customers’ facilities in the
secured logistics business segment, we experienced a slight
decrease in revenue less than 10%. However, even though the robotic
AI segment revenue counts for approximately 4% of the total
revenue, it has grown by 253% and increased nearly four-fold as a
percentage of our total revenue compared to the six months ended
June 30, 2021.”
“Despite the impact of the COVID-19 pandemic, we
continue to expand and grow our global presence and our
Robot-as-a-Service (RaaS) business. We are now operating in 8
countries including China, Singapore, Malaysia, Thailand, Japan,
Australia, UAE, and the United States.”
“We are also excited about the development
progress we made on the Guardforce AI Intelligent Cloud Platform
(GFAI ICP). In the first half of 2022, we successfully set up three
main hubs for the GFAI ICP in Mainland China, the United States,
and Hong Kong, each of which has the ability to manage well over
10,000 robots. At the end of June 30, 2022, approximately 6,000
robots were managed through the GFAI ICP across the globe. We are
currently piloting value-added services such as robotics-based
advertising in Thailand and Macau through the GFAI ICP with the
deployed robots that are on a trial and rental basis. As we
increase the number of robots deployed worldwide, we will work with
our partners to expand and add value-added services to our
platform, such as hotel self-check-in/out, restaurant waitlist
management, and food delivery services.”
“On the acquisition front, we continue to
strengthen our presence in the Asia Pacific region, as we expanded
into mainland China, one of the largest and fastest-growing markets
for robotics and security solutions. We completed three target
acquisitions in China, providing us immediate access to thousands
of valuable clients. Towards that end, we recently announced that
we are acquiring Shenzhen Kewei Robot Technology Company Limited
("Kewei"), a high-tech robotics company specializing in developing
robotics software solutions and robotics management platforms, as
well as robotics sales and technical services. This acquisition
will provide new RaaS capabilities, add over a dozen key
robotics-related patents and expand our global Fortune 500 customer
base. Kewei’s RaaS platform currently operates more than 65,000
robots that belong to Kewei, clients, and partners, of which more
than 40,000 are equipped with screens for advertising and
interactive features. Our goal is to capture a significant share of
the rapidly growing, multi-billion-dollar RaaS market.”
“Overall, we are highly encouraged by the
outlook for the business and expect to resume strong organic
revenue growth company-wide as pandemic-related restrictions begin
to ease. We believe the recent realignment of our management team
is timely, given the success and increased focus on our RaaS
business line, which positions us to become a dominant player in
this rapidly emerging market. Moreover, we have built a highly
scalable business model that we believe will drive significant
value for shareholders as we continue to execute on our business
model.”
Financial Overview
Net revenue decreased by $1.46 million or 7.9%,
to $16.9 million for 1H 2022, compared to $18.4 million for 1H
2021. This decrease was primarily due to COVID-19 and the shutdown
of certain customer facilities to curtail the spread of the
coronavirus, especially during February 2022 to May 2022. Gross
profit decreased slightly to $1.9 million for the first half of
2022 compared to $2.1 million for the same period last year, and
gross margin increased from 11.2% for the six months ended June 30,
2021 to 11.5% for the six months ended June 30, 2022, primarily due
to cost control initiatives. For the six months ended June 30,
2022, total selling, distribution, and administrative (SD&A)
expenses were $7.0 million an increase of $3.7 million, or 113.3%,
compared to $3.3 million for the six months ended June 30, 2021.
The net increase was mainly due to an increase in headquarter
expenses, including staff expenses, directors’ salaries, sales and
marketing and for general corporate purposes and legal and
professional fees in connection with the private placements and
acquisition of subsidiaries as well as the higher costs of
operating as a public company and an increase in robotics business
expenses including staff expenses, rental expenses and marketing
expenses to further the RaaS business and related technology
capabilities. Operating loss was $5.5 million for 1H 2022, compared
to $1.3 million for 1H 2021. The primary reason for the increase in
operating loss was an increase in SD&A. Net loss was $6.3
million or $0.18 per basic and diluted share for 1H 2022, compared
to $1.5 million or $0.09 per basic and diluted share for 1H 2021.
This was mainly due to lower revenue and an increase in SD&A.
As of June 30, 2022, and December 31, 2021, the Company had
approximately $9.5 million and $14.3 million cash and cash
equivalents and restricted cash, respectively.
About Guardforce AI Co., Ltd.
Guardforce AI Co., Ltd. (NASDAQ:GFAI, GFAIW) is a global integrated
security solutions provider that is focused on developing robotic
solutions and information security services that complement its
well-established secured logistics business. With more than 40
years of professional experience, Guardforce AI is a trusted brand
name that protects and transports high-value assets belonging to
public and private sector organizations. Guardforce AI develops and
provides innovative technologies and services that enhance safety
and protection. For more information, visit
www.guardforceai.com.
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
RudmanCrescendo Communications, LLCEmail: gfai@crescendo-ir.com
Tel: 212-671-1020
Guardforce AI Corporate CommunicationsHu
YuEmail: yu.hu@guardforceai.com
(tables follow)
Guardforce AI Co., Limited and
SubsidiariesUnaudited Interim Condensed
Consolidated Statement of Operations(Expressed in
U.S. Dollars)
|
|
|
For the six months
endedJune 30, |
|
|
|
|
2022 |
|
|
2021 |
|
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
Revenue |
|
|
$ |
16,942,522 |
|
|
$ |
18,405,025 |
|
Cost of sales |
|
|
|
(14,998,727 |
) |
|
|
(16,346,463 |
) |
Gross profit |
|
|
|
1,943,795 |
|
|
|
2,058,562 |
|
|
|
|
|
|
|
|
|
|
|
Provision for and write off of withholding taxes receivable |
|
|
|
(263,340 |
) |
|
|
(98,226 |
) |
Stock based compensation |
|
|
|
(252,095 |
) |
|
|
- |
|
Selling, distribution and administrative expenses |
|
|
|
(6,977,996 |
) |
|
|
(3,271,608 |
) |
Operating loss |
|
|
|
(5,549,636 |
) |
|
|
(1,311,272 |
) |
|
|
|
|
|
|
|
|
|
|
Other income |
|
|
|
46,859 |
|
|
|
237,178 |
|
Foreign exchange losses, net |
|
|
|
(745,759 |
) |
|
|
(40,137 |
) |
Finance costs |
|
|
|
(410,861 |
) |
|
|
(440,952 |
) |
Loss before income tax |
|
|
|
(6,659,397 |
) |
|
|
(1,555,183 |
) |
|
|
|
|
|
|
|
|
|
|
Provision for income tax benefit |
|
|
|
320,183 |
|
|
|
- |
|
Loss for the period |
|
|
|
(6,339,214 |
) |
|
|
(1,555,183 |
) |
Less: loss (profit) attributable to non-controlling interests |
|
|
|
32,392 |
|
|
|
(91 |
) |
Loss attributable to equity holders of the
Company |
|
|
$ |
(6,306,822 |
) |
|
$ |
(1,555,274 |
) |
|
|
|
|
|
|
|
|
|
|
Loss per share attributable to equity holders of the
Company |
|
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
(0.18 |
) |
|
$ |
(0.09 |
) |
Diluted |
|
|
$ |
(0.18 |
) |
|
$ |
(0.09 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in
computation: |
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
35,235,992 |
|
|
|
17,486,264 |
|
Diluted |
|
|
|
35,235,992 |
|
|
|
17,486,264 |
|
Guardforce AI Co., Limited and
SubsidiariesUnaudited Interim Condensed
Consolidated Balance Sheet(Expressed in U.S.
Dollars)
|
|
|
As
atJune 30,2022 |
|
|
As
atDecember 31,2021 |
|
|
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
7,728,491 |
|
|
$ |
12,728,783 |
|
Restricted cash |
|
|
|
- |
|
|
|
1,600,000 |
|
Trade receivables |
|
|
|
5,464,069 |
|
|
|
4,939,568 |
|
Other receivables |
|
|
|
1,016,220 |
|
|
|
- |
|
Other current assets |
|
|
|
2,457,334 |
|
|
|
1,275,981 |
|
Inventories |
|
|
|
8,769,701 |
|
|
|
1,387,549 |
|
Amount due from related parties |
|
|
|
6,416,362 |
|
|
|
26,007 |
|
Total current assets |
|
|
|
31,852,177 |
|
|
|
21,957,888 |
|
|
|
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
|
|
|
Restricted cash |
|
|
|
1,811,750 |
|
|
|
1,525,028 |
|
Property, plant and equipment |
|
|
|
12,219,476 |
|
|
|
9,897,301 |
|
Right-of-use assets |
|
|
|
2,133,297 |
|
|
|
2,364,993 |
|
Intangible assets |
|
|
|
6,249,273 |
|
|
|
164,316 |
|
Goodwill |
|
|
|
2,679,445 |
|
|
|
329,534 |
|
Deposits paid for business acquisitions |
|
|
|
7,020,000 |
|
|
|
- |
|
Withholding taxes receivable |
|
|
|
2,451,616 |
|
|
|
3,531,953 |
|
Deferred tax assets, net |
|
|
|
1,910,689 |
|
|
|
1,635,638 |
|
Other non-current assets |
|
|
|
482,143 |
|
|
|
345,586 |
|
Total non-current assets |
|
|
|
36,957,689 |
|
|
|
19,794,349 |
|
Total assets |
|
|
$ |
68,809,866 |
|
|
$ |
41,752,237 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Trade and other payables |
|
|
$ |
3,650,442 |
|
|
$ |
1,028,721 |
|
Borrowings |
|
|
|
1,011,749 |
|
|
|
933,110 |
|
Borrowings from related parties |
|
|
|
16,209,546 |
|
|
|
13,506,184 |
|
Current portion of operating lease liabilities |
|
|
|
1,423,063 |
|
|
|
2,366,045 |
|
Current portion of finance lease liabilities |
|
|
|
261,940 |
|
|
|
619,301 |
|
Other current liabilities |
|
|
|
1,683,355 |
|
|
|
1,824,635 |
|
Amount due to related parties |
|
|
|
5,856,114 |
|
|
|
2,217,752 |
|
Total current liabilities |
|
|
|
30,096,209 |
|
|
|
22,495,748 |
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
|
Borrowings |
|
|
|
518,613 |
|
|
|
859,120 |
|
Operating lease liabilities |
|
|
|
741,218 |
|
|
|
- |
|
Borrowings from related parties |
|
|
|
1,927,803 |
|
|
|
5,332,803 |
|
Finance lease liabilities |
|
|
|
622,062 |
|
|
|
666,455 |
|
Other non-current liabilities |
|
|
|
54,000 |
|
|
|
54,000 |
|
Provision for employee benefits |
|
|
|
5,470,714 |
|
|
|
5,819,132 |
|
Total non-current liabilities |
|
|
|
9,334,410 |
|
|
|
12,731,510 |
|
Total liabilities |
|
|
|
39,430,619 |
|
|
|
35,227,258 |
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
Ordinary shares – par value $0.003 authorized 300,000,000 shares,
issued and outstanding 54,879,075 shares at June 30, 2022; par
value $0.003 authorized 300,000,000 shares, issued and outstanding
21,201,842 shares at December 31, 2021 |
|
|
|
164,638 |
|
|
|
63,606 |
|
Subscription receivable |
|
|
|
(50,000 |
) |
|
|
(50,000 |
) |
Additional paid in capital |
|
|
|
44,669,954 |
|
|
|
15,379,595 |
|
Legal reserve |
|
|
|
223,500 |
|
|
|
223,500 |
|
Warrants reserve |
|
|
|
251,036 |
|
|
|
251,036 |
|
Deficit |
|
|
|
(16,511,042 |
) |
|
|
(10,204,220 |
) |
Accumulated other comprehensive income |
|
|
|
623,618 |
|
|
|
821,527 |
|
Capital & reserves attributable to equity holders of the
Company |
|
|
|
29,371,704 |
|
|
|
6,485,044 |
|
Non-controlling interests |
|
|
|
7,543 |
|
|
|
39,935 |
|
Total equity |
|
|
|
29,379,247 |
|
|
|
6,524,979 |
|
Total liabilities and equity |
|
|
$ |
68,809,866 |
|
|
$ |
41,752,237 |
|
|
|
|
|
|
|
|
|
|
|
Guardforce AI Co., Limited and
SubsidiariesUnaudited Interim Condensed
Consolidated Statement of Cash Flows(Expressed in
U.S. Dollars)
|
|
For the six months
endedJune 30, |
|
|
|
2022 |
|
|
2021 |
|
Cash flows from
operating activities |
|
(Unaudited) |
|
|
(Unaudited) |
|
Loss for the period |
|
$ |
(6,339,214 |
) |
|
$ |
(1,555,183 |
) |
Adjustments for: |
|
|
|
|
|
|
|
|
Depreciation and Amortization of intangible assets |
|
|
2,697,378 |
|
|
|
2,542,432 |
|
Stock-based compensation |
|
|
252,095 |
|
|
|
- |
|
Finance costs |
|
|
506,818 |
|
|
|
341,123 |
|
Loss/(Gain) from fixed assets disposal |
|
|
24,530 |
|
|
|
(2,189 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Increase in trade and other receivables |
|
|
(205,716 |
) |
|
|
(673,605 |
) |
Increase in other current assets |
|
|
(969,004 |
) |
|
|
(1,005,395 |
) |
Increase in inventories |
|
|
(5,521,429 |
) |
|
|
(2,105,633 |
) |
(Increase)/Decrease in amount due from/to related parties |
|
|
(6,111,443 |
) |
|
|
2,932,310 |
|
Decrease/(Increase) in other non-current assets |
|
|
901 |
|
|
|
(98,693 |
) |
Increase in provision for and write off of withholding taxes
receivable |
|
|
263,340 |
|
|
|
98,226 |
|
Increase in deferred tax assets |
|
|
(325,083 |
) |
|
|
- |
|
Increase in Trade and other payables and other current
liabilities |
|
|
1,265,752 |
|
|
|
900,767 |
|
Increase in withholding taxes receivable |
|
|
663,095 |
|
|
|
522,688 |
|
(Decrease)/Increase in provision for employee benefits |
|
|
(29,812 |
) |
|
|
146,100 |
|
Net cash (used in)
generated from operating activities |
|
|
(13,827,792 |
) |
|
|
2,042,948 |
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities |
|
|
|
|
|
|
|
|
Acquisition of property and
equipment |
|
|
(2,309,334 |
) |
|
|
(2,251,341 |
) |
Proceeds from sale of
property, plant and equipment |
|
|
4,120 |
|
|
|
2,598 |
|
Acquisition of intangible
assets |
|
|
(3,082,880 |
) |
|
|
- |
|
Acquisition of subsidiary, net
of cash acquired |
|
|
(1,793,614 |
) |
|
|
24,276 |
|
Deposits paid for business
acquisitions |
|
|
(2,160,000 |
) |
|
|
- |
|
Net cash used in
investing activities |
|
|
(9,341,708 |
) |
|
|
(2,224,467 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
|
|
|
|
|
Proceeds from issue of
shares |
|
|
18,275,728 |
|
|
|
- |
|
Proceeds from exercise of
warrants |
|
|
1,423,690 |
|
|
|
|
|
Proceeds from borrowings |
|
|
- |
|
|
|
1,622,855 |
|
Repayment of borrowings |
|
|
(840,762 |
) |
|
|
(378,046 |
) |
Payment of lease
liabilities |
|
|
(1,483,203 |
) |
|
|
(1,246,462 |
) |
Net cash generated
from (used in) financing activities |
|
|
17,375,453 |
|
|
|
(1,653 |
) |
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash
equivalents, and restricted cash |
|
|
(5,794,047 |
) |
|
|
(183,172 |
) |
Effect of movements in
exchange rates on cash held |
|
|
(519,523 |
) |
|
|
(554,528 |
) |
Cash and cash equivalents, and
restricted cash at January 1, |
|
|
15,853,811 |
|
|
|
10,129,910 |
|
Cash and cash
equivalents, and restricted cash at June 30, |
|
$ |
9,540,241 |
|
|
$ |
9,392,210 |
|
|
|
|
|
|
|
|
|
|
Non-cash investing and
financing activities |
|
|
|
|
|
|
|
|
Equity portion of purchase
consideration paid for acquisition of subsidiaries |
|
|
4,579,879 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
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 and allowance for and write off of withholding
tax receivables.
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 six months endedJune
30, |
|
|
|
2022 |
|
|
2021 |
|
Net loss - IFRS |
|
$ |
(6,339,214 |
) |
|
$ |
(1,555,183 |
) |
Finance costs |
|
|
410,861 |
|
|
|
440,952 |
|
Income tax benefit |
|
|
(320,183 |
) |
|
|
- |
|
Depreciation and amortization
expense |
|
|
2,697,378 |
|
|
|
2,542,432 |
|
EBITDA |
|
|
(3,551,158 |
) |
|
|
1,428,201 |
|
Allowance for and write off of
withholding tax receivables |
|
|
263,340 |
|
|
|
98,226 |
|
Stock-based compensation
expenses |
|
|
252,095 |
|
|
|
- |
|
Adjusted net (loss)
income (Non-IFRS) |
|
$ |
(3,035,723 |
) |
|
$ |
1,526,427 |
|
Non-IFRS (loss)
earnings per share |
|
|
|
|
|
|
|
|
Earnings per share
attributable to equity holders of the Company |
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.09 |
) |
|
$ |
0.09 |
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares used in computation: |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
35,235,992 |
|
|
|
17,486,264 |
|
Guardforce AI (NASDAQ:GFAIW)
過去 株価チャート
から 11 2024 まで 12 2024
Guardforce AI (NASDAQ:GFAIW)
過去 株価チャート
から 12 2023 まで 12 2024