Guardforce AI Reports Full-Year 2024 Financial Results and Provides Business Update
Guardforce AI (NASDAQ: GFAI) reported its full-year 2024 financial results, showing modest growth but significant operational improvements. Revenue increased 0.2% to $36.3 million, while gross profit rose 16.1% with margins improving to 17.2% from 14.9% in 2023.
The company significantly reduced its net loss to $5.9 million, an 80.1% improvement year-over-year. Selling, distribution, and administrative expenses decreased by 20.7% to $10.1 million. The company maintained a strong cash position of $23.4 million as of December 31, 2024.
Notable operational highlights include serving over 25,000 retail stores globally, with retail becoming a primary client segment surpassing traditional banking focus. The company advanced its Robotics-as-a-Service model in Asia-Pacific and launched DVGO (DeepVoyage Go), an AI-powered travel planning agent.
Guardforce AI (NASDAQ: GFAI) ha presentato i risultati finanziari completi per il 2024, mostrando una crescita modesta ma significativi miglioramenti operativi. I ricavi sono aumentati dello 0,2% raggiungendo 36,3 milioni di dollari, mentre il profitto lordo è cresciuto del 16,1% con margini migliorati al 17,2% rispetto al 14,9% del 2023.
L'azienda ha ridotto significativamente la perdita netta a 5,9 milioni di dollari, un miglioramento dell'80,1% rispetto all'anno precedente. Le spese di vendita, distribuzione e amministrazione sono diminuite del 20,7%, attestandosi a 10,1 milioni di dollari. Al 31 dicembre 2024, la società ha mantenuto una solida posizione di cassa pari a 23,4 milioni di dollari.
Tra i principali risultati operativi si evidenzia il servizio a oltre 25.000 negozi al dettaglio a livello globale, con il settore retail che è diventato il segmento cliente principale superando il tradizionale focus bancario. L’azienda ha inoltre sviluppato il modello Robotics-as-a-Service nella regione Asia-Pacifico e lanciato DVGO (DeepVoyage Go), un agente di pianificazione viaggi basato sull’intelligenza artificiale.
Guardforce AI (NASDAQ: GFAI) presentó sus resultados financieros anuales de 2024, mostrando un crecimiento modesto pero mejoras operativas significativas. Los ingresos aumentaron un 0,2% hasta 36,3 millones de dólares, mientras que el beneficio bruto creció un 16,1%, con márgenes que mejoraron al 17,2% desde el 14,9% en 2023.
La compañía redujo considerablemente su pérdida neta a 5,9 millones de dólares, una mejora del 80,1% interanual. Los gastos de venta, distribución y administración disminuyeron un 20,7%, situándose en 10,1 millones de dólares. Al 31 de diciembre de 2024, la empresa mantuvo una sólida posición de efectivo de 23,4 millones de dólares.
Entre los aspectos operativos destacados está el servicio a más de 25.000 tiendas minoristas a nivel mundial, con el sector retail convirtiéndose en el segmento principal de clientes, superando el enfoque tradicional en banca. La compañía avanzó en su modelo Robotics-as-a-Service en Asia-Pacífico y lanzó DVGO (DeepVoyage Go), un agente de planificación de viajes impulsado por inteligencia artificial.
Guardforce AI (NASDAQ: GFAI)는 2024년 전체 재무 실적을 발표하며 소폭의 성장과 함께 상당한 운영 개선을 보였습니다. 매출은 0.2% 증가한 3,630만 달러를 기록했고, 총이익은 16.1% 상승하여 2023년 14.9%에서 17.2%로 마진이 개선되었습니다.
회사는 순손실을 590만 달러로 크게 줄였으며, 이는 전년 대비 80.1% 개선된 수치입니다. 판매, 유통 및 관리비용은 20.7% 감소하여 1,010만 달러에 달했습니다. 2024년 12월 31일 기준 현금 보유액은 2,340만 달러로 견고한 재무 상태를 유지했습니다.
주요 운영 하이라이트로는 전 세계 25,000개 이상의 소매점에 서비스를 제공하며, 소매 부문이 전통적인 은행 중심에서 벗어나 주요 고객층으로 자리 잡았습니다. 회사는 아시아 태평양 지역에서 Robotics-as-a-Service 모델을 발전시켰고, AI 기반 여행 계획 에이전트인 DVGO(DeepVoyage Go)를 출시했습니다.
Guardforce AI (NASDAQ : GFAI) a publié ses résultats financiers annuels 2024, affichant une croissance modeste mais des améliorations opérationnelles significatives. Le chiffre d'affaires a augmenté de 0,2 % pour atteindre 36,3 millions de dollars, tandis que le bénéfice brut a progressé de 16,1 %, avec une marge passée de 14,9 % en 2023 à 17,2 %.
L'entreprise a considérablement réduit sa perte nette à 5,9 millions de dollars, soit une amélioration de 80,1 % d'une année sur l'autre. Les frais de vente, de distribution et administratifs ont diminué de 20,7 % pour s'établir à 10,1 millions de dollars. Au 31 décembre 2024, la société disposait d'une trésorerie solide de 23,4 millions de dollars.
Parmi les points forts opérationnels, on compte le service à plus de 25 000 magasins de détail dans le monde, le secteur du commerce de détail devenant le principal segment client, dépassant l'approche bancaire traditionnelle. L'entreprise a fait progresser son modèle Robotics-as-a-Service dans la région Asie-Pacifique et lancé DVGO (DeepVoyage Go), un agent de planification de voyages propulsé par l'intelligence artificielle.
Guardforce AI (NASDAQ: GFAI) veröffentlichte seine Finanzzahlen für das Gesamtjahr 2024 und zeigte dabei ein moderates Wachstum sowie erhebliche operative Verbesserungen. Der Umsatz stieg um 0,2 % auf 36,3 Millionen US-Dollar, während der Bruttogewinn um 16,1 % zunahm und die Marge sich von 14,9 % im Jahr 2023 auf 17,2 % verbesserte.
Das Unternehmen reduzierte seinen Nettoverlust deutlich auf 5,9 Millionen US-Dollar, eine Verbesserung von 80,1 % im Jahresvergleich. Die Verkaufs-, Vertriebs- und Verwaltungskosten sanken um 20,7 % auf 10,1 Millionen US-Dollar. Zum 31. Dezember 2024 hielt das Unternehmen eine starke Liquiditätsposition von 23,4 Millionen US-Dollar.
Zu den bemerkenswerten operativen Highlights zählt die Betreuung von über 25.000 Einzelhandelsgeschäften weltweit, wobei der Einzelhandel zum wichtigsten Kundensegment wurde und den traditionellen Bankensektor überholte. Das Unternehmen entwickelte sein Robotics-as-a-Service-Modell im asiatisch-pazifischen Raum weiter und brachte DVGO (DeepVoyage Go) auf den Markt, einen KI-gestützten Reiseplanungsagenten.
- Gross profit increased 16.1% with improved margins of 17.2%
- Net loss reduced by 80.1% to $5.9 million
- Operating expenses decreased 20.7% to $10.1 million
- Strong cash position of $23.4 million
- Expanded retail client base to over 25,000 stores
- Minimal revenue growth of only 0.2% year-over-year
- Still operating at a loss with negative EBITDA of $0.7 million
- Operating loss of $6.7 million despite improvement
Insights
Despite flat revenue, Guardforce AI significantly improved profitability metrics with narrowed losses and stronger gross margins, supported by a solid cash position.
Looking at Guardforce AI's 2024 financial results, what immediately stands out is the stark contrast between revenue and profitability metrics. Revenue increased by a mere
The company achieved a
Most impressive is the dramatic narrowing of net losses from
The company's Adjusted EBITDA improved by
While the lack of revenue growth remains a concern, the financial trajectory shows a company successfully transitioning from significant losses toward operational sustainability. Their focus on higher-margin offerings and cost discipline is yielding tangible results, potentially creating a stronger foundation for future growth.
Guardforce AI is executing a calculated pivot from traditional secured logistics toward technology-enhanced services. Their strategic transformation centers on developing an AI agent ecosystem targeting specific vertical markets – notably retail and travel.
The company's increased focus on retail is particularly significant. They now serve over 25,000 retail stores globally, with retail surpassing banking as their primary client segment. This shift aligns with their RaaS (Robot-as-a-Service) offerings, which can provide automation solutions particularly valuable in retail environments for tasks like inventory management and customer service.
Their development of "DVGO—DeepVoyage Go," an AI-powered travel planning agent, represents expansion into a new vertical beyond their traditional security focus. This initiative builds upon their existing concierge robot and RTA operations, suggesting they're leveraging established capabilities rather than starting from scratch.
What's most promising about their technology strategy is how it's grounded in practical applications of AI rather than speculative moonshots. They're integrating AI into "real-world productivity tools" with clear use cases in established industries. This pragmatic approach to AI implementation reduces technology risk while potentially accelerating adoption.
The improved gross margins suggest this technology-oriented strategy is beginning to yield financial benefits, though the relative contribution of different business segments remains unclear. Their
Overall, Guardforce is executing a sensible technology strategy that balances innovation with practical applications, though they're still early in this transformation journey. Success will ultimately depend on how effectively they can monetize these AI initiatives at scale.
Gross profit increased
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 approximately17.2% in 2024, compared to approximately14.9% in 2023. - Selling, distribution, and administrative expenses was approximately
$10.1 million for 2024, a20.7% 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 , or80.1% . Loss per share narrowed down year-over-year by$4.0 , or a decrease of88.3% to$0.53 per share. - Adjusted EBITDA improved by approximately
$1.1 million , or61.3% , 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
“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
“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
For 2024, selling, distribution, and administrative expenses decreased significantly to approximately
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 | 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 | |||||||||
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