RENO, Nev., Aug. 14, 2025 (GLOBE NEWSWIRE) -- GlobalTech Corporation (OTCID:GTLK) ("GlobalTech" or the "Company"), a technology holding company specializing in artificial intelligence (AI) and big data solutions, today announced its financial results for the second quarter ended June 30, 2025.
Q2 Financial Highlights
- Net revenue grew 23.3% to $5.63 million from $4.56 million in Q2 2024, fueled by strong telecom services performance, with international termination minutes up 39% year-over-year
- Net Loss: Decreased to $1.12 million, or $0.008 per share, compared to $1.23 million, or $0.009 per share, in Q2 2024.
- Adjusted EBITDA* improved to $(1.84) million from $(2.45) million in Q2 2024, reflecting operational efficiencies and reduced finance costs
- Loss from operations was $0.96 million and $0.92 million, for the three months ended June 30, 2025 and 2024, respectively and Non-GAAP loss* from operations was flat at $(0.69) million, compared to $(0.69) million in Q2 2024
- Cash and cash equivalents was $3.38 million as of June 30, 2025, including $2.67 million in restricted cash, compared to $3.46 million as of December 31, 2024, including $2.63 million in restricted cash.
Dan Green, GlobalTech CEO commented, "GlobalTech delivered solid revenue growth in Q2 2025, reflecting the strength of our Long Distance & International (LDI), broadband, and technology services segments. Our strategic shift toward a service-centric model is yielding positive results, with improved Adjusted EBITDA and reduced net loss. We remain focused on optimizing operations, expanding our FTTH network, and advancing our AI and Big Data product portfolio to drive long-term value for our shareholders."
Detailed financial information can be found on the Company's Website, and in the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 11, 2025, and available at www.sec.gov.
*A non-Generally Accepted Accounting Principles (GAAP) financial measure, see "Non-GAAP Financial Measures", below.
About GlobalTech Corporation
GlobalTech Corporation is a U.S.-based technology holding company committed to enabling growth in the fields of AI, big data, and frontier technologies. Through strategic partnerships and capital investment, GlobalTech empowers visionary companies and innovation-led enterprises to drive transformation across global markets it serves.
For more information, visit: www.globaltechcorporation.com
Non-GAAP Financial Measures
We have included non-U.S. generally accepted accounting principles (GAAP) loss from operations and Adjusted EBITDA in this press release as a supplement to GAAP measures of performance to provide investors with an additional financial analytical framework which management uses, in addition to historical operating results, as the basis for financial, operational and planning decisions and present measurements that third parties have indicated are useful in assessing the Company and its results of operations. Non-GAAP loss from operations and Adjusted EBITDA are presented because we believe they provide additional useful information to investors due to the various noncash items during the period. Adjusted EBITDA is also frequently used by analysts, investors and other interested parties to evaluate companies in our industry.
Non-GAAP loss from operations and Adjusted EBITDA have limitations as an analytical tool, and you should not consider them in isolation, or as a substitute for analysis of our operating results as reported under GAAP. Some of these limitations are: Adjusted EBITDA does not reflect cash expenditures, future requirements for capital expenditures, or contractual commitments; Adjusted EBITDA does not reflect changes in, or cash requirements for, working capital needs; and Adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on debt or cash income tax payments. For example, although depreciation and amortization are noncash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements. We believe non-GAAP loss from operations provides our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations, as this metric includes the effect of other income. Additionally, other companies in our industry may calculate non-GAAP operating loss and Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure. You should not consider non-GAAP operating loss and Adjusted EBITDA in isolation, or as a substitute for analysis of the Company's results as reported under GAAP. The Company's presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. We compensate for these limitations by providing a reconciliation of these non-GAAP measures to the most comparable GAAP measure. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measure.
Set forth below is a presentation and reconciliation of our non-GAAP loss from operations and Adjusted EBITDA for the three months ended June 30, 2025 and 2024:
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Loss from operations | $ | (957,947 | ) | $ | (921,489 | ) | $ | (1,901,619 | ) | $ | (2,069,562 | ) | ||||
| Plus other income | 267,564 | 232,732 | 486,502 | 498,383 | ||||||||||||
| Non-GAAP loss from operations | (690,384 | ) | (688,887 | ) | (1,415,117 | ) | (1,571,179 | ) | ||||||||
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net revenue | $ | 5,628,068 | $ | 4,562,706 | $ | 9,969,788 | $ | 8,264,964 | ||||||||
| GAAP net loss | (1,121,671 | ) | (1,231,618 | ) | (2,246,875 | ) | (2,652,776 | ) | ||||||||
| Add back (subtract) | ||||||||||||||||
| Depreciation and amortization | (574,873 | ) | (710,065 | ) | 1,075,971 | 1,488,433 | ||||||||||
| Finance cost | (354,922 | ) | (492,661 | ) | 701,660 | 985,951 | ||||||||||
| Taxation | (76,365 | ) | (50,200 | ) | 130,098 | 95,646 | ||||||||||
| Exchange loss | 288,712 | 33,588 | 425,875 | (216,710 | ) | |||||||||||
| Adjusted EBITDA | (1,839,120 | ) | (2,450,957 | ) | $ | 86,708 | $ | (299,456 | ) | |||||||
Non-GAAP operating loss is defined as GAAP operating loss plus other income.
Adjusted EBITDA is defined as net income attributable to GlobalTech Corporation shareholders plus net income attributable to non-controlling interest, net interest expense, income taxes, depreciation and amortization, and other operating (income) expenses, net, such as exchange loss/(gain).
Forward Looking Statements
Certain of the matters discussed in this communication which are not statements of historical fact constitute forward-looking statements, that involve a number of risks and uncertainties. Words such as "strategy," "expects," "continues," "plans," "anticipates," "believes," "would," "will," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning are intended to identify forward-looking statements but are not the exclusive means of identifying these statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. The important factors that may cause actual results and outcomes to differ materially from those contained in such forward-looking statements include, without limitation, our need for additional capital, the terms of such capital and potential dilution caused thereby; foreign currency exchange losses, fluctuations and translation risks related to our business in Pakistan; the international economic environment, geopolitical developments and unexpected global events which could cause our business to decline; investing in emerging markets, where our operations are located, is subject to greater risks than investing in more developed markets, including significant political, legal and economic risks; our revenue performance can be unpredictable by nature; we operate in highly competitive markets, which we expect only to become more competitive; we may be unable to keep pace with technological changes and evolving industry standards; we are exposed to cyber-attacks and other cybersecurity threats that may lead to compromised or inaccessible telecommunications, digital and financial services, and/or leaks or unauthorized processing of confidential information, and perceptions of such threats may cause customers to lose confidence in our services; the telecommunications industry is highly capital-intensive and requires substantial and ongoing expenditures of capital; we may also be subject to increases in license fees for some of our licenses or to obtain new licenses; the loss of important intellectual property rights, as well as third-party claims that we have infringed on their intellectual property rights; our substantial amounts of indebtedness and debt service obligations could materially decrease our cash flow, which could adversely affect our business and financial condition; our status as a controlled company; the fact that no active trading market for our common stock exists, and an active trading market may not develop or be sustained in the future; stockholders may be diluted significantly through our efforts to obtain financing and satisfy obligations through the issuance of additional shares of the common stock; the telecommunications industry is a highly regulated industry, and we are subject to an extensive variety of laws and operate in uncertain judicial and regulatory environments, which may result in unanticipated outcomes that could harm our business; our operating subsidiaries are located in Pakistan, and their assets are in Pakistan, which may affect shareholder rights, including the ability to enforce civil liabilities under U.S. securities laws; we are, and may in the future be, involved in, associated with, or otherwise subject to legal liability in connection with disputes and litigation with regulators, competitors, and third parties; our licenses are granted for specific periods and may be suspended, revoked, or we may be unable to extend or replace these licenses upon expiration; we may be affected by economic downturns both in Pakistan and globally, changes in inflation and interest rates, tariffs, increased costs of borrowing associated therewith and potential declines in the availability of such funding; and risks relating to future divestitures, asset sales, joint ventures and acquisitions.
Other important factors that may cause actual results and outcomes to differ materially from those contained in the forward-looking statements included in this communication are described in GlobalTech's publicly filed reports, including, but not limited to, GlobalTech's Annual Report on Form 10-K for the year ended December 31, 2024 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, and future Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. These reports are available at www.sec.gov. GlobalTech cautions that the foregoing list of important factors is not complete. All subsequent written and oral forward-looking statements attributable to GlobalTech or any person acting on behalf of GlobalTech are expressly qualified in their entirety by the cautionary statements referenced above. Other unknown or unpredictable factors also could have material adverse effects on GlobalTech's future results. The forward-looking statements included in this press release are made only as of the date hereof. GlobalTech cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, GlobalTech undertakes no obligation to update these statements after the date of this release, except as required by law, and takes no obligation to update or correct information prepared by third parties that are not paid for by GlobalTech. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
Contact:
Louie Toma
CORE IR
louie@coreir.com
212-655-0924
| GLOBALTECH CORPORATION | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| As of June 30, 2025 and December 31, 2024 | ||||||||||
| June 30, | December 31, | |||||||||
| 2025 | 2024 | |||||||||
| ASSETS | (Unaudited) | |||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 709,127 | $ | 822,251 | ||||||
| Restricted cash | 2,670,958 | 2,633,019 | ||||||||
| Accounts receivable - net | 4,065,665 | 3,780,777 | ||||||||
| Short term investments | 959,823 | 970,596 | ||||||||
| Prepayments | 122,849 | 60,234 | ||||||||
| Stores and spares | 828,536 | 838,641 | ||||||||
| Loans and advances | 4,425,431 | 4,660,122 | ||||||||
| Other receivables | 1,279,380 | 1,570,148 | ||||||||
| Total current assets | 15,061,769 | 15,335,788 | ||||||||
| Property, plant and equipment | 15,999,697 | 16,936,286 | ||||||||
| Operating lease right-of-use assets | 423,747 | 451,111 | ||||||||
| Intangible assets - net | 9,710,341 | 10,264,049 | ||||||||
| Advances for intangible assets | 12,463,921 | 2,377,010 | ||||||||
| Long term loans and other assets | 3,099,872 | 3,123,604 | ||||||||
| Deferred tax asset | 8,311,890 | 8,468,381 | ||||||||
| TOTAL ASSETS | $ | 65,071,237 | $ | 56,956,229 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Trade and other payables | $ | 27,127,503 | $ | 27,263,298 | ||||||
| Current portion of non-current liabilities | 7,897,525 | 7,413,649 | ||||||||
| Accrued interest | 3,805,773 | 3,545,054 | ||||||||
| Short term borrowings | 881,477 | 1,103,560 | ||||||||
| Provision for taxation - net | 1,214,647 | 1,125,182 | ||||||||
| Total current liabilities | 40,926,925 | 40,450,743 | ||||||||
| Term finance certificates | 298,775 | 906,455 | ||||||||
| Long term financing - secured | 1,058,311 | 1,154,484 | ||||||||
| Long term deposits and payable | 1,678,363 | 1,412,328 | ||||||||
| License fee payable | 160,201 | 163,217 | ||||||||
| Operating lease liability | 600,042 | 635,030 | ||||||||
| Post employment benefits | 646,008 | 676,084 | ||||||||
| Other payables | 474,074 | 709,975 | ||||||||
| Total non- current liabilities | 4,915,774 | 5,657,573 | ||||||||
| TOTAL LIABILITIES | $ | 45,842,699 | $ | 46,108,316 | ||||||
| CONTINGENCIES AND COMMITMENTS | ||||||||||
| SHAREHOLDERS' EQUITY: | ||||||||||
| Common stock, $0.0001 par value - authorized 500,000,000 shares at June 30, 2025 and December 31, 2024 and issued 149,933,391 and 139,933,391 shares respectively. | 14,993 | 13,993 | ||||||||
| Additional paid in capital | 9,999,000 | - | ||||||||
| Accumulated other comprehensive loss | (550,116 | ) | (896,497 | ) | ||||||
| Accumulated deficit | (39,351,143 | ) | (38,110,867 | ) | ||||||
| Non-controlling interest | 49,115,804 | 49,841,283 | ||||||||
| TOTAL SHAREHOLDERS' EQUITY | 19,228,538 | 10,847,914 | ||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 65,071,237 | $ | 56,956,229 | ||||||
| GLOBALTECH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 | ||||||||||||||||
| FOR THE THREE MONTHS | FOR THE SIX MONTHS | |||||||||||||||
| ENDED | ENDED | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| NET REVENUE | $ | 5,628,068 | $ | 4,562,706 | $ | 9,969,788 | $ | 8,264,964 | ||||||||
| Direct operating costs (exclusive of depreciation and amortization shown below) | (5,111,388 | ) | (4,149,932 | ) | (9,043,086 | ) | (7,732,091 | ) | ||||||||
| Other operating costs | (661,254 | ) | (526,292 | ) | (1,302,999 | ) | (1,012,300 | ) | ||||||||
| Depreciation and amortization | (574,873 | ) | (710,065 | ) | (1,075,971 | ) | (1,488,433 | ) | ||||||||
| Other expenses | (238,500 | ) | (97,905 | ) | (449,351 | ) | (101,700 | ) | ||||||||
| OPERATING LOSS | (957,947 | ) | (921,489 | ) | (1,901,619 | ) | (2,069,562 | ) | ||||||||
| OTHER: | ||||||||||||||||
| Other income - net | 267,564 | 232,732 | 486,502 | 498,383 | ||||||||||||
| Finance cost | (354,922 | ) | (492,661 | ) | (701,660 | ) | (985,951 | ) | ||||||||
| LOSS BEFORE TAXATION | (1,045,305 | ) | (1,181,418 | ) | (2,116,777 | ) | (2,557,130 | ) | ||||||||
| Taxation | (76,365 | ) | (50,200 | ) | (130,098 | ) | (95,646 | ) | ||||||||
| NET LOSS | $ | (1,121,670 | ) | $ | (1,231,618 | ) | $ | (2,246,875 | ) | $ | (2,652,776 | ) | ||||
| NET LOSS ATTRIBUTABLE TO: | ||||||||||||||||
| Common shareholders of GlobalTech Corporation | (619,163 | ) | (684,580 | ) | (1,240,276 | ) | (1,463,802 | ) | ||||||||
| Non - controlling interest (NCI) | (502,507 | ) | (547,038 | ) | (1,006,599 | ) | (1,188,974 | ) | ||||||||
| Net loss attributable to parent | (1,121,670 | ) | (1,231,618 | ) | (2,246,875 | ) | (2,652,776 | ) | ||||||||
| Net loss per common share: basic and diluted | $ | (0.008 | ) | $ | (0.009 | ) | $ | (0.016 | ) | $ | (0.019 | ) | ||||
| Weighted-average common shares used to compute basic and diluted loss per share | 144,629,524 | 139,763,391 | 140,592,732 | 139,763,391 | ||||||||||||
