Guardforce AI Reports Positive Adjusted Net Income for the First Half of 2024

Financial Performance - Gross profit increased by 50% in H1 2024 compared to H1 2023, driven by an improvement in gross profit margin from 12.0% to 18.4% [1][2] - Adjusted net income (Non-IFRS) was $0.1 million in H1 2024, compared to an adjusted net loss of $1.8 million in H1 2023 [2] - Selling, distribution, and administrative expenses decreased by 25.7% to $5.0 million in H1 2024 from $6.7 million in H1 2023 [2] - Operating loss improved by 82.5% to $2.1 million in H1 2024 from $11.9 million in H1 2023 [2] - Net revenue decreased by 2.4% to $17.6 million in H1 2024, primarily due to foreign currency exchange rate fluctuations [6] Business Highlights - The company expanded services to over 25,000 retail stores and achieved a 50% increase in gross profit in H1 2024 [2] - Guardforce Cash Solutions Security (Thailand) secured a 5-year contract to operate 50% of the Consolidate Cash Center operations in Chiang Mai, Thailand [3] - Guardforce Digital Machine (GDM) revenue increased by 74.3% to $0.8 million in H1 2024 [3] - Beijing Wanjia Security System Limited expanded security alarm solutions to an additional 3,900 stores, bringing the total to 12,000 stores in Mainland China [3] AI and Technology Development - The company developed GFAI Agents as the core technology foundation for AI Purchase and AI Travel Solutions [3] - Upgraded the Guardforce AI Intelligent Cloud Platform to integrate large language models and third-party APIs [3] - Developed a proof of concept for the AI Travel Assistant to optimize travel routes and real-time agenda adjustments [4] - Partnered with iApp Technology Co Ltd to launch "LinguaBot," enhancing chatbot capabilities for concierge services [4] - Launched RoboTravel Agent (RTA), an upgraded AIoT Robot Advertising solution for the travel industry [4] Strategic Initiatives - The company focused on consolidating legacy business, strengthening the client base in travel and retail sectors, and accelerating R&D in AI solutions [5] - Implemented cost reduction strategies that effectively lowered operating expenses [5] - Expanded AIoT Robot Advertising to the U.S., deploying over 200 robots [4] - Launched a decentralized spatial computing solution utilizing robots' unused computing power for complex tasks beyond advertising [4] Financial Position - As of June 30, 2024, the company had cash and cash equivalents and restricted cash of $15.5 million, compared to $26.0 million as of June 30, 2023 [2][7] - Total current assets were $22.7 million as of June 30, 2024, compared to $31.1 million as of December 31, 2023 [14] - Total liabilities were $12.6 million as of June 30, 2024, compared to $20.7 million as of December 31, 2023 [15]