Total liabilities and equity $ 36,183,978 $ 45,814,948
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Guardforce AI Co., Limited and Subsidiaries
Consolidated Statements of Cash Flows
(Expressed in U.S. Dollars)
For the six months ended
June 30,
--------------------------
2024 2023
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Cash flows from operating activities (Unaudited) (Unaudited)
Net (loss) from continuing operations $(1,877,146) $(13,860,995)
Net gain from discontinued operations 38,719 11,562
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Net loss (1,838,427) (13,849,433)
Adjustments for:
Depreciation and Amortization of
fixed and intangible assets 1,556,922 2,619,001
Stock-based compensation 172,655 -
(Recovery) Provision for and write
off of withholding tax receivable (32,980) 561,277
Provision for expected credit loss
on trade and other receivables 184,180 869,519
Provision for obsolete inventories - 3,090,282
Impairment loss on fixed assets - 1,591,766
Impairment on goodwill 30,467 1,263,040
Finance costs 81,778 584,897
Interest income (261,041) -
Deferred income taxes (101,998) 874,431
(Gain) Loss from assets disposal (31,577) 41,965
Gain on disposal of a subsidiary (3,607) -
Changes in operating assets and
liabilities:
(Increase) Decrease in trade and
other receivables (90,891) 157,279
Increase in other assets (1,005,338) (719,595)
Decrease in inventories 114,223 296,824
(Decrease) Increase in amounts
due to related parties (386,720) 639,807
(Decrease) Increase in Trade and
other payables and other
current liabilities (437,966) 1,285,317
Decrease (Increase) in
withholding tax receivable 227,903 (374,013)
Increase in provision for
employee benefits 13,428 20,774
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Net cash used in operating activities (1,808,989) (1,046,862)
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Cash flows from investing activities
Acquisition of property, plant and
equipment (34,442) (829,231)
Proceeds from sale of property, plant
and equipment 27,805 -
Acquisition of intangible assets (114,224) (217,077)
Disposal of a subsidiary, net of cash
disposed (28,186) -
Interest received 283,750 -
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Net cash provided by (used in)
investing activities 134,703 (1,046,308)
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Cash flows from financing activities
Proceeds from issue of shares - 20,867,386
Proceeds from exercise of warrants - 506,693
Cash paid for the cancellation of
fractional shares - (49,664)
Proceeds from bank borrowings - 1,756,738
Repayment of bank borrowings (252,717) (1,937,096)
Repayment of related party borrowings (3,304,787) -
Payment of lease liabilities (877,553) (1,267,979)
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Net cash (used in) generated from
financing activities (4,435,057) 19,876,078
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Net (decrease)/increase in cash and
cash equivalents, and restricted
cash (6,109,343) 17,782,908
Effect of movements in exchange rates
on cash held (362,280) 16,840
Cash and cash equivalents, and
restricted cash at January 1, 21,973,395 8,230,644
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Cash and cash equivalents, and
restricted cash at June 30, $15,501,772 $ 26,030,392
Non-cash investing and financing
activities
Equity portion of purchase
consideration paid for acquisition
of subsidiaries - 1,848,000
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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 net (loss) income 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 net (loss) income for the periods indicated:
For the six months ended
June 30,
--------------------------
2024 2023
----------- ------------
Net loss from continuing operations
- IFRS $(1,877,146) $(13,860,995)
Finance costs 81,534 578,308
Provision for income tax (benefit)
expense (22,949) 874,431
Depreciation and amortization
expense 1,556,922 2,619,001
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EBITDA (261,639) (9,789,255)
Stock-based compensation 172,655 -
(Recovery) provision for and write
off of withholding taxes
receivable (32,980) 561,277
Provision for expected credit loss
on trade and other receivables 184,180 870,408
Provision for obsolete inventories - 3,090,283
Impairment loss on fixed assets - 1,591,766
Impairment on goodwill 30,467 1,263,040
Foreign exchange losses, net 49,041 584,093
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Adjusted net income (loss)
(Non-IFRS) $ 141,724 $ (1,828,388)
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Non-IFRS earnings (loss) per share
Earnings (Loss) per share
attributable to equity holders of
the Company
Basic and diluted $ 0.01 $ (0.58)
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Weighted average number of shares
used in computation:
Basic and diluted 9,991,600 3,174,282
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