GFAIW

• 2024 was a transformational year marked by operational consolidation, revenue mix shift to higher-margin offerings, and significant AI innovation.
• Retail became one of the top client segments with over 25,000 retail stores globally.
• Advanced Robots-As-A-Service across the Asia-Pacific region and launched DVGO, an AI-powered travel planning agent.
• Upgraded the GFAI AI Intelligent Cloud Platform with four key pillars: deep user intent modeling, simulate coordination among specialized AI agents, transparent feedback loop, and scalable multi-lingual architecture.
• Focus on AI agents to enhance productivity, starting with travel due to its personal nature, with plans to expand to retail, education, and other consumer-facing industries.
• Strong balance sheet with approximately $23.4 million in cash, cash equivalents, and restricted cash to accelerate AI solution strategies.

• Focus on scaling AI solutions, expanding the agent platform starting with DVGO into verticals like travel, retail, and education over the next 12-24 months.
• Expect DVGO to achieve progressive adoption milestones validating its effectiveness in improving decision-making and user certification.
• Shift to a tech platform-based business model from series-based, with DVGO expected to become a major revenue contributor and boost profit margins as it scales.

In 2024, the Secure Logistics business had revenue of $32.4 million, an increase of $544,000 or 1.7% compared to 2023. The GDM products saw a remarkable year-over-year growth of $1.1 million or 39.5% due to strong demand from chain retailers. The CIP NANDV business increased by 351,000 or 3.0%. Cost of sales decreased by close to $799,000, resulting in gross profits increasing by $866,000 or 16.1% to $6.3 million. The net loss from continuing operations narrowed to negative $5.9 million, a year-over-year reduction of 80.1%. Operating expenses, particularly selling, distribution, and administrative, decreased by 20.7% or $2.6 million. R&D investment in 2024 was around $591,000, an increase of approximately 2.5 times from the prior year. Total assets were $44.7 million as of December 31, 2024, with cash and cash equivalents including restricted cash at $23.4 million.

• Forward-looking statements are subject to risks and uncertainties as outlined in Guardforce AI’s public filings with the U.S. Securities and Exchange Commission, which may cause actual results to differ from anticipated ones.

Q: How are our revenues currently split among core business lines, and which segments do you expect to drive growth over the next 24 months?

A: Our business remains the primary driver of revenue, accounting for over 80% of total income. Over the next 12-24 months, key focus is expanding the agent platform starting with DVGO into verticals like travel, retail, and education.

Q: How does DVGO's revenue will impact the current revenue mix and the profit margin?

A: DVGO will contribute a small but growing portion of overall revenue, diversifying income to more recurring AI-powered streams. Initially margins lower due to upfront costs, but scaling will boost profit margins with higher efficiency and lower incremental costs.

Q: Are you able to provide more frequent or segmented financial disclosures to allow for better performance assessment across business lines?

A: At this time, no plans to change frequency of financial disclosures, but encourage visiting website and social media for updates.

Q: Given the recurring capital expenditures and ongoing net losses, what specific steps are being taken to reduce cash burn?

A: Steadily increased revenue, achieved healthier gross margin, tightened cost structure, narrowed net loss, improved adjusted EBITDA, and optimized business mix including expanding high-margin services and reducing lower-margin ones.

Q: What is the core differentiation of the DVGO AI agent compared to existing Travel AI assistants in the market?

A: DVGO is user-centric, starts with user intent and purpose, uses dialogue-driven approach to guide smarter decisions, unlike traditional platforms focusing on product selling.

Q: What IP does GuardForce AI currently own or license, and how is it being protected to maintain a technological edge?

A: Focus on owning and licensing technology, with core systems powering AI solutions. Protect via treating critical tech as trade secrets, marginalizing systems, separating licensed and self-built components, and continuously exploring innovation protection.