Gross profit increased 16.1% in 2024 compared to 2023
Building a robust AI technology foundation to drive solution development in travel and retail
Guardforce AI management to host conference call today at 8:30 AM ET
NEW YORK, April 28, 2025 (GLOBE NEWSWIRE) -- Guardforce AI Co., Limited ("Guardforce AI" or the "Company") (NASDAQ: GFAI, GFAIW), a global integrated security provider specializing in secured logistics, Artificial Intelligence (AI), and Robot-as-a-Service (RaaS), today announced financial results and provided a business update for the year ended December 31, 2024.
2024 Financial Highlights
- Revenue increased by approximately 0.2% to approximately $36.3 million for the year ended December 31, 2024, compared to 2023.
- Gross profit increased by approximately 16.1% in 2024 compared to 2023, driven in part by an improvement in gross profit margin, which increased to approximately 17.2% in 2024, compared to approximately 14.9% in 2023.
- Selling, distribution, and administrative expenses was approximately $10.1 million for 2024, a 20.7% decrease compared to approximately $12.7 million for 2023.
- Net loss narrowed down to $5.9 million, marked a significant year-over-year improvement of $23.7 million, or 80.1%. Loss per share narrowed down year-over-year by $4.0, or a decrease of 88.3% to $0.53 per share.
- Adjusted EBITDA improved by approximately $1.1 million, or 61.3%, year-over-year, to negative $0.7 million in 2024, compared to negative $1.8 million in 2023, reflecting significant operational progress in 2024.
- As of December 31, 2024, the Company had cash and cash equivalents and restricted cash of approximately $23.4 million.
Lei (Olivia) Wang, Chairwoman and Chief Executive Officer of Guardforce AI, stated, "2024 was a transformative year for us, marked by operational consolidation, a stronger revenue mix, and significant progress in AI innovation. We made strong progress in shifting our revenue mix toward higher-margin offerings, as evidenced by our increased gross profit margin in 2024. Today, we serve more than 25,000 retail stores globally, with retail steadily emerging as one of our top client segments, surpassing our traditional focus on banking. We also achieved approximately a 16.1% increase in gross profit in 2024 compared to 2023, as well as a 20.7% decrease in selling, distribution and administration expenses, due in part to carefully managing expenses through effective cost reduction strategies."
"On the technology front, we advanced our Robotics-as-a-Service model across the Asia-Pacific region and established core technology foundation for our later launched DVGO-DeepVoyage Go, our first AI-powered travel planning agent. Building on our concierge robots and RTA operations, we remain committed to integrating AI into real-world productivity tools. Our AI agent ecosystem is designed to drive adoption, enhance operational efficiency, and scale value across multiple industries. Backed by a strong balance sheet, with approximately $23.4 million in cash, cash equivalents, and restricted cash, we are well-positioned to accelerate our AI Solutions strategy."
"In 2025, we intend to build on the momentum achieved in 2024 by strengthening our secured logistics foundation, expanding our retail client base, investing in AI research and development, and extending our smart retail and travel-focused AI solutions globally-ultimately fostering stronger synergies with our existing customers," concluded Ms. Wang.
Financial Overview
Revenue increased by approximately $0.07 million, or 0.2%, to approximately $36.3 million for 2024, compared to 2023. Gross profit increased to approximately $6.3 million for 2024, compared to approximately $5.4 million for 2023. Gross profit margin increased to 17.2% for 2024, from 14.9% for 2023, primarily due to cost control initiatives and a higher profit margin from our continued growing GDM business and Cash-In-Transit business with our retail customers.
For 2024, selling, distribution, and administrative expenses decreased significantly to approximately $10.1 million, compared to approximately $12.7 million for 2023, representing a 20.7% decrease. Operating loss was approximately $6.7 million in 2024, compared to approximately $29.3 million in 2023, mainly due to the reduction in fixed asset depreciation and inventory provisions. As of December 31, 2024, and 2023, the Company had cash and cash equivalents and restricted cash of approximately $23.4 million and $21.9 million, respectively.
Conference Call
Gaurdforce will host a conference call at 8:30 a.m. Eastern Time on Monday, April 28, 2025. The conference call will be available via telephone by dialing toll-free 888-506-0062 for U.S. callers or 973-528-0011 for international callers and entering access code 436086.
A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/3101/52346 or on the company's Investor Relations section of the website, ir.guardforceai.com/news-events/company-events.
A webcast replay will be available on the company's Investor Relations section of the website (ir.guardforceai.com/news-events/company-events) through April 26, 2026. A telephone replay of the call will be available approximately one hour following the call, through May 12, 2025, and can be accessed by dialing 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering access code 52346.
About Guardforce AI Co., Ltd.
Guardforce AI Co., Limited (NASDAQ: GFAI/GFAIW) is an integrated solution provider, specializing in security solutions, and focusing on implementing AI and robotics solutions to improve business operational efficiency and sales and marketing process, especially for the retail and travel industry in the Asia Pacific. Drawing upon 42 years' operational experience, established premiere long-term customer base, and sales channels, Guardforce AI has built a robust foundation towards the next level of elevating tailored AI solutions and expanding globally. For more information, visit www.guardforceai.com 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 annual 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: gfai@crescendo-ir.com
Tel: 212-671-1020
Guardforce AI Corporate Communications
Hu Yu
Email: yu.hu@guardforceai.com
(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, | ||||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| (Restated) | ||||||||||||
| Continuing operations: | ||||||||||||
| Revenue | $ | 36,347,373 | $ | 36,280,502 | $ | 33,965,648 | ||||||
| Cost of sales | (30,089,911 | ) | (30,889,226 | ) | (30,196,382 | ) | ||||||
| Gross profit | 6,257,462 | 5,391,276 | 3,769,266 | |||||||||
| Provision for expected credit loss on trade receivables and other receivables | (210,437 | ) | (899,433 | ) | - | |||||||
| Allowance for doubtful debts on a related party receivable | - | (5,637,527 | ) | - | ||||||||
| Impairment loss on goodwill | (30,575 | ) | (2,267,583 | ) | - | |||||||
| Impairment loss on intangible assets | (188,797 | ) | (3,713,551 | ) | - | |||||||
| Provision for withholding taxes receivable | (4,339 | ) | (683,344 | ) | (448,243 | ) | ||||||
| Provision for obsolete inventory | - | (3,797,552 | ) | (942,882 | ) | |||||||
| Impairment loss on fixed assets | - | (3,682,789 | ) | (4,408,037 | ) | |||||||
| Stock-based compensation expenses | (1,849,356 | ) | (1,101,800 | ) | (252,095 | ) | ||||||
| Research and Development expenses | (591,225 | ) | (169,511 | ) | (99,947 | ) | ||||||
| Selling, distribution and administrative expenses | (10,104,688 | ) | (12,740,964 | ) | (14,444,301 | ) | ||||||
| Operating loss | (6,721,955 | ) | (29,302,778 | ) | (16,826,239 | ) | ||||||
| Other income, net | 369,249 | 461,926 | 87,616 | |||||||||
| Foreign exchange gains (losses), net | 5,761 | 305,026 | (590,965 | ) | ||||||||
| Finance income (costs), net | 337,601 | (653,374 | ) | (1,141,830 | ) | |||||||
| Loss before income tax from continuing operations | (6,009,344 | ) | (29,189,200 | ) | (18,471,418 | ) | ||||||
| Provision for income tax benefit (expense) | 125,925 | (434,320 | ) | (132,208 | ) | |||||||
| Net loss for the year from continuing operations | (5,883,419 | ) | (29,623,520 | ) | (18,603,626 | ) | ||||||
| Discontinued operations: | ||||||||||||
| Net profit (loss) for the year from discontinued operations | 38,719 | 34,138 | (62,432 | ) | ||||||||
| Net loss for the year | (5,844,700 | ) | (29,589,382 | ) | (18,666,058 | ) | ||||||
| Net (profit) loss attributable to non-controlling interests | (19,465 | ) | 17,721 | 101,264 | ||||||||
| Net loss attributable to equity holders of the Company | $ | (5,864,165 | ) | (29,571,661 | ) | $ | (18,564,794 | ) | ||||
| Loss per share | ||||||||||||
| Basic and diluted loss attributable to the equity holders of the Company | $ | (0.53 | ) | $ | (4.53 | ) | $ | (14.97 | ) | |||
| Loss per share from continuing operations | ||||||||||||
| Basic and diluted loss attributable to the equity holders of the Company | $ | (0.53 | ) | $ | (4.53 | ) | $ | (14.90 | ) | |||
| Weighted average number of shares used in computation: | ||||||||||||
| Basic and diluted | 11,161,053 | 6,531,918 | 1,239,852 | |||||||||
| Guardforce AI Co., Limited and Subsidiaries Consolidated Balance Sheets (Expressed in U.S. Dollars) | |||||||
| As of December 31 | |||||||
| 2024 | 2023 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 21,936,422 | $ | 20,235,227 | |||
| Restricted cash | 27,642 | 100,764 | |||||
| Trade receivables, net | 5,922,345 | 5,630,805 | |||||
| Other current assets | 2,291,439 | 1,665,571 | |||||
| Withholding taxes receivable, net | 393,960 | 607,221 | |||||
| Inventories | 274,854 | 506,403 | |||||
| Amount due from related parties | - | 2,172,638 | |||||
| Assets held for sale | - | 201,963 | |||||
| Total current assets | 30,846,662 | 31,120,592 | |||||
| Non-current assets: | |||||||
| Restricted cash | 1,432,738 | 1,608,762 | |||||
| Property, plant and equipment | 3,183,856 | 4,043,725 | |||||
| Right-of-use assets | 2,268,022 | 2,688,208 | |||||
| Intangible assets, net | 2,300,951 | 2,836,250 | |||||
| Goodwill | 411,862 | 411,862 | |||||
| Withholding taxes receivable, net | 1,967,826 | 1,617,625 | |||||
| Deferred tax assets, net | 1,281,531 | 1,085,477 | |||||
| Other non-current assets | 998,971 | 402,447 | |||||
| Total non-current assets | 13,845,757 | 14,694,356 | |||||
| Total assets | $ | 44,692,419 | $ | 45,814,948 | |||
| Liabilities and Equity | |||||||
| Current liabilities: | |||||||
| Trade payables and other current liabilities | $ | 4,549,364 | $ | 6,188,493 | |||
| Borrowings | 44,232 | 337,241 | |||||
| Borrowing from a related party | - | 3,104,149 | |||||
| Current portion of operating lease liabilities | 1,574,537 | 1,239,066 | |||||
| Current portion of finance lease liabilities, net | 96,372 | 108,597 | |||||
| Amount due to related parties | - | 2,898,506 | |||||
| Liabilities directly associated with the assets held for sale | - | 130,876 | |||||
| Total current liabilities | 6,264,505 | 14,006,928 | |||||
| Non-current liabilities: | |||||||
| Borrowings | - | 44,410 | |||||
| Operating lease liabilities | 768,174 | 1,455,857 | |||||
| Finance lease liabilities | 121,746 | 218,996 | |||||
| Provision for employee benefits | 5,548,726 | 4,935,982 | |||||
| Total non-current liabilities | 6,438,646 | 6,655,245 | |||||
| Total liabilities | 12,703,151 | 20,662,173 | |||||
| Equity | |||||||
| Ordinary shares - par value $0.12 authorized 300,000,000 shares, issued and outstanding 17,808,947 shares at December 31, 2024; issued and outstanding 9,830,373 shares at December 31, 2023 | 2,137,108 | 1,179,680 | |||||
| Subscription receivable | (50,000 | ) | (50,000 | ) | |||
| Additional paid in capital | 93,102,042 | 80,983,164 | |||||
| Legal reserve | 223,500 | 223,500 | |||||
| Warrants reserve | 251,036 | 251,036 | |||||
| Accumulated deficit | (64,204,840 | ) | (58,340,675 | ) | |||
| Accumulated other comprehensive income | 590,981 | 985,120 | |||||
| Capital & reserves attributable to equity holders of the Company | 32,049,827 | 25,231,825 | |||||
| Non-controlling interests | (60,559 | ) | (79,050 | ) | |||
| Total equity | 31,989,268 | 25,152,775 | |||||
| Total liabilities and equity | $ | 44,692,419 | $ | 45,814,948 | |||
| Guardforce AI Co., Limited and Subsidiaries Consolidated Statements of Cash Flows (Expressed in U.S. Dollars) | ||||||||||||
| For the years ended December 31, | ||||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| (Restated) | ||||||||||||
| Cash flows from operating activities | ||||||||||||
| Net loss from continuing operations | $ | (5,883,419 | ) | $ | (29,623,520 | ) | $ | (18,603,626 | ) | |||
| Net profit (loss) from discontinued operations | 38,719 | 34,138 | (62,432 | ) | ||||||||
| Net loss | (5,844,700 | ) | (29,589,382 | ) | (18,666,058 | ) | ||||||
| Adjustments for: | ||||||||||||
| Depreciation | 2,933,137 | 4,249,646 | 5,365,312 | |||||||||
| Amortization of intangible assets | 434,125 | 993,594 | 616,095 | |||||||||
| Provision for obsolete inventories | - | 3,797,552 | 942,882 | |||||||||
| Impairment loss on fixed assets | - | 3,682,789 | 4,408,037 | |||||||||
| Stock-based compensation expense | 1,849,356 | 1,101,800 | 252,095 | |||||||||
| Impairment loss on intangible assets | 188,797 | 3,713,551 | - | |||||||||
| Impairment loss on goodwill | 30,575 | 2,267,583 | - | |||||||||
| Allowance for doubtful debts on a related party receivable | - | 5,637,527 | - | |||||||||
| Netting off related parties' balances | (690,487 | ) | - | - | ||||||||
| Finance (income) costs, net | (337,356 | ) | 653,460 | 1,083,276 | ||||||||
| Deferred income taxes | (125,925 | ) | 434,315 | 121,169 | ||||||||
| Provision for (Recovery of) expected credit loss on trade receivables and other receivables, net | 210,437 | 899,433 | (7,394 | ) | ||||||||
| Increase in provision for withholding tax receivables | 4,339 | 683,344 | 448,243 | |||||||||
| (Gain)/Loss from fixed assets disposal | (21,644 | ) | 208,093 | 24,250 | ||||||||
| Gain from disposal of a subsidiary | (3,608 | ) | - | - | ||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| (Increase)/Decrease in trade and other receivables | (347,566 | ) | (312,348 | ) | 428,772 | |||||||
| Increase in other current assets | (680,694 | ) | (64,759 | ) | (332,188 | ) | ||||||
| Decrease (Increase) in restricted cash | 249,146 | (409,521 | ) | 1,825,023 | ||||||||
| Decrease/(Increase) in inventories | 220,974 | 757,518 | (2,876,443 | ) | ||||||||
| Decrease/(Increase) in amount due from related parties | - | 424,979 | (15,725,707 | ) | ||||||||
| (Increase)/Decrease in other non-current assets | (585,746 | ) | 33,924 | (151,170 | ) | |||||||
| (Decrease)/Increase in trade payables and other current liabilities | (937,169 | ) | 363,833 | 928,247 | ||||||||
| (Decrease)/Increase in amount due to related parties | - | (970,185 | ) | 3,884,995 | ||||||||
| (Increase)/Decrease in withholding taxes receivable | (146,855 | ) | (192,502 | ) | 258,989 | |||||||
| Increase/(Decrease) in provision for employee benefits | 275,265 | 34,534 | (193,639 | ) | ||||||||
| Net cash used in operating activities | (3,325,599 | ) | (1,601,222 | ) | (17,365,214 | ) | ||||||
| Cash flows from investing activities | ||||||||||||
| Acquisition of property, plant and equipment | (244,581 | ) | (2,107,069 | ) | (4,402,394 | ) | ||||||
| Proceeds from disposal of property, plant and equipment | 23,856 | - | 5,235 | |||||||||
| Acquisition of intangible assets | (61,995 | ) | (18,476 | ) | (3,242,537 | ) | ||||||
| Interest received | 511,292 | - | - | |||||||||
| Disposal of discontinued operation, net of cash disposed of | (28,186 | ) | - | - | ||||||||
| Acquisition of subsidiaries, net of cash acquired | - | - | (1,765,933 | ) | ||||||||
| Net cash generated from/(used in) investing activities | 200,386 | (2,125,545 | ) | (9,405,629 | ) | |||||||
| Cash flows from financing activities | ||||||||||||
| Proceeds from issue of shares | 10,399,732 | 20,867,386 | 20,346,353 | |||||||||
| 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 | |||||||||
| Repayment of borrowings | (3,648,353 | ) | (2,890,252 | ) | (4,499,358 | ) | ||||||
| Payment of lease liabilities | (2,043,529 | ) | (2,652,150 | ) | (2,849,816 | ) | ||||||
| Net cash generated from financing activities | 4,707,850 | 17,122,925 | 20,937,985 | |||||||||
| Net increase (decrease) in cash and cash equivalents, and restricted cash | 1,582,637 | 13,396,158 | (5,832,858 | ) | ||||||||
| Effect of movements in exchange rates on cash held | 89,916 | (62,928 | ) | 34,714 | ||||||||
| Cash and cash equivalents at beginning of year | 20,263,869 | 6,930,639 | 12,728,783 | |||||||||
| Cash and cash equivalents at end of year | $ | 21,936,422 | $ | 20,263,869 | $ | 6,930,639 | ||||||
| Non-cash investing and financing activities | ||||||||||||
| Equity portion of purchase consideration paid for acquisition of subsidiaries | $ | - | $ | - | $ | 4,579,880 | ||||||
| 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 | - | |||||||||
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 EBITDA 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 adjusted EBITDA for the periods indicated:
| For the years ended December 31, | ||||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| Net loss from continuing operations - IFRS | $ | (5,883,419 | ) | $ | (29,623,520 | ) | $ | (18,603,626 | ) | |||
| Finance (income) costs, net | (337,601 | ) | 653,374 | 1,141,830 | ||||||||
| Income tax expense (benefit) | (125,925 | ) | 434,320 | 132,208 | ||||||||
| Depreciation and amortization expense | 3,367,262 | 5,243,240 | 5,981,407 | |||||||||
| EBITDA | (2,979,683 | ) | (23,292,586 | ) | (11,348,181 | ) | ||||||
| Stock-based compensation expense | 1,849,356 | 1,101,800 | 252,095 | |||||||||
| Provision for expected credit loss on trade receivables and other receivables | 210,437 | 899,433 | - | |||||||||
| Allowance for doubtful debts on a related party receivable | - | 5,637,527 | - | |||||||||
| Impairment loss on goodwill | 30,575 | 2,267,583 | - | |||||||||
| Impairment loss on intangible assets | 188,797 | 3,713,551 | - | |||||||||
| Provision for withholding taxes receivables | 4,339 | 683,344 | 448,243 | |||||||||
| Provision for obsolete inventory | - | 3,797,552 | 942,882 | |||||||||
| Impairment loss on fixed assets | - | 3,682,789 | 4,408,037 | |||||||||
| Foreign exchange (gains) losses, net | (5,761 | ) | (305,026 | ) | 590,965 | |||||||
| Adjusted EBITDA (Non-IFRS) | $ | (701,940 | ) | $ | (1,814,033 | ) | $ | (4,705,959 | ) | |||
| Non-IFRS loss per share | ||||||||||||
| Basic and diluted loss for the year attributable to ordinary equity holders of the Company | $ | (0.06 | ) | $ | (0.28 | ) | $ | (3.80 | ) | |||
| Weighted average number of shares used in computation: | ||||||||||||
| Basic and diluted | 11,161,053 | 6,531,918 | 1,239,852 | |||||||||
