Quick Summary:
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.
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 SubsidiariesConsolidated 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 SubsidiariesConsolidated Statements of Cash Flows(Expressed in U.S.
