Gorilla(GRRR) - 2025 Q2 - Quarterly Report

Revenue and Profitability - Revenue for the six months ended June 30, 2025, was $39,325,839, representing a 90.4% increase from $20,674,691 in the same period of 2024[9] - The company reported a net loss of $8,503,060 for the six months ended June 30, 2025, compared to a profit of $1,611,588 in the same period of 2024[9] - For the six months ended June 30, 2025, Gorilla Technology Group reported a profit (loss) before tax of $(8,186,849), compared to a profit of $1,749,479 in the same period of 2024[18] - The total comprehensive income (loss) for the period was $(335,832) for the six months ended June 30, 2024, compared to a profit of $1,613,700 in the same period of 2023[18] - The company reported a loss attributable to the parent of $8,503,060 for the six months ended June 30, 2025, resulting in a basic loss per share of $(0.43)[84] Expenses and Costs - Total expenses for the six months ended June 30, 2025, were $35,116,290, significantly higher than $11,193,690 in 2024[80] - Employee benefit expenses rose to $5,759,701 for the six months ended June 30, 2025, from $4,812,094 in 2024[81] - The company incurred share-based compensation expenses of $472,642 for the six months ended June 30, 2025, compared to no expenses in the same period of 2024[62] - The company reported amortization expenses of $317,806 for the six months ended June 30, 2025, compared to $442,242 in the same period of 2024, indicating a decrease of approximately 28.2%[51] - The depreciation expense for the six months ended June 30, 2025, was $325,824, compared to $275,746 for the same period in 2024, showing an increase in asset utilization[119] Assets and Liabilities - Total current assets as of June 30, 2025, were $125,423,924, slightly down from $126,671,576 at the end of 2024[4] - Total liabilities decreased to $64,565,060 from $80,692,129, indicating a reduction of approximately 20%[7] - The company’s accumulated deficit increased to $156,741,789 from $148,238,729, reflecting a worsening financial position[7] - Total equity attributable to owners of the parent increased to $98,180,994 from $73,103,853, a growth of 34.4%[7] - The net cash position improved to $7,984,098 as of June 30, 2025, compared to a net debt of $(281,186) as of December 31, 2024, indicating a significant turnaround[98] Cash Flow and Investments - Cash flows used in operating activities totaled $(12,518,511) for the six months ended June 30, 2025, compared to $(11,258,779) in 2024, indicating an increase in cash outflow[18] - Net cash flows used in investing activities were $(4,852,819) for the first half of 2025, compared to $(462,226) in the same period of 2024, reflecting increased investment activity[21] - Cash and cash equivalents decreased significantly to $10,110,206 from $21,699,202 at the end of 2024, a decline of 53.4%[4] - The company committed to spend approximately $141,807 under agreements to purchase property and equipment as of June 30, 2025[96] - Cash paid for the purchase of property and equipment was $328,833 for the six months ended June 30, 2025, compared to $363,096 in 2024[86] Market and Segment Performance - Service revenue from Video IoT reached $1,703,511, while Security Convergence service revenue increased to $37,622,328, compared to $1,233,682 and $19,225,852 respectively in 2024[71] - The Group's total segment revenue for the six months ended June 30, 2025, was $39,325,839, compared to $20,674,691 for the same period in 2024, reflecting a significant increase[119] - The Group's revenue from external customers in the Video IoT segment was $37,622,328 for the six months ended June 30, 2025, compared to $19,225,852 in 2024, demonstrating strong growth in this product line[119] - The total segment revenue for the Security Convergence segment was $1,703,511 for the six months ended June 30, 2025, compared to $1,448,839 in 2024, indicating a positive trend[119] Borrowings and Financing - Proceeds from short-term borrowings increased to $14,327,643 in 2025 from $7,050,890 in 2024, indicating a rise in financing activities[21] - As of June 30, 2025, total borrowings decreased to $18,094,304 from $21,418,016 as of December 31, 2024, reflecting a reduction of approximately 15.5%[98] - Short-term borrowings decreased to $12,187,029 as of June 30, 2025, from $15,073,458 as of December 31, 2024, representing a decline of 19.2%[53] - Long-term borrowings stood at $4,159,459 as of June 30, 2025, down from $4,372,188 at the end of 2024, a decrease of approximately 4.9%[58] - The interest rate for bank collateralized borrowings ranged from 2.805% to 2.88% as of June 30, 2025[53] Financial Position and Risk - The Group's maximum exposure to credit risk for accounts receivable was $43,794,936 as of June 30, 2025, compared to $25,670,157 on December 31, 2024[47] - The Group's credit risk exposure for unbilled receivables was $36,883,629 as of June 30, 2025, compared to $34,306,195 as of December 31, 2024[108] - The total book value of accounts receivable as of June 30, 2025, was $43,886,026, with a loss allowance of $91,090[108] - The expected loss rate for accounts not past due as of June 30, 2025, was 0.03%[108] - The Group's financial liabilities at amortized cost decreased to $50,920,793 as of June 30, 2025, from $70,354,547 as of December 31, 2024, indicating a reduction in overall liabilities[99]