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) 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 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: Tel: 212-671-1020 Guardforce AI Corporate CommunicationsHu YuEmail: (tables follow) Guardforce AI Co., Limited and SubsidiariesConsolidated 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 )*