GFAI

Good morning. Welcome to the Guardforce AI Co., Limited financial results conference call for the year ended December 31st, 2025. Your hosts this morning are Chairwoman and Chief Executive Officer, Olivia Wang, and Financial Controller, Melody Yang. At the request of the company, today's call is being recorded and will be available for replay on the investor relations section of the company's corporate website, ir.guardforceai.com. You may also access the teleconference replay by dialing 1-844-512-2921 or 1-412-317-6671, referencing access ID 13760045, beginning three hours after the end of this event. The replay will be available until Tuesday, April 28th at 11:59 P.M. Eastern Time. Guardforce AI issued a press release this morning containing its 2025 fiscal year financial results, which is also posted on the company's website. If you have any questions after the call or would like any additional information about the company, please contact Skyline Corporate Communications Group at [email protected]. I would like to inform all parties that your lines will be placed in a listen-only mode until the question answers segment of this call begins. That segment will begin with questions that have been emailed in response to the company's press release of April 16th, and will be followed by questions you can ask on this call via chat. You can submit online questions at any time today using the chat function of the webcast platform, and they'll be answered after the presentation during the Q&A session. Simply type your question in the box and click send. At this point, I would like to turn the call over to Scott Powell, President of Skyline Corporate Communications Group. Please go ahead, Scott.

Thank you, operator, and thanks everyone for joining us on this call. Before we begin, I'd like to read you our forward-looking statements provision. During today's conference call, company representatives may make forward-looking statements. Any statements made in this presentation about future operating results or other future events are forward-looking statements under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Please note that actual results achieved by the company may differ materially from such forward-looking statements. A discussion of factors that could cause such differences appears in the Risk Factors sections of the company's 20F. Now, Guardforce AI Chairwoman and CEO, Olivia Wang, will present an analysis of the company's performance during fiscal 2025, including a report on recent business developments and updated business metrics, and then provide some outlook for fiscal 2026. Olivia?

Thank you, Scott, and good morning, everyone. Thank you for joining us on Guardforce AI 2025 financial results conference call. Let me start with our business highlights in 2025. I am pleased to report that 2025 was a pivotal year for our company, a year marked by meaningful operational progress, including launching our AI-driven technology solutions, implementing smart solution business across Thailand, and growing our revenue as well as our legacy business retail client base. Let me begin with our technology initiatives. In April 2025, we launched our self-developed beta version AI agent, DeepVoyage Go. We call it DVGo, which was released to the public in early 2026. DVGo is a unique AI agent that assists travelers by understanding their needs and preferences, planning a trip, and producing an itinerary with all required services efficiently.

Most importantly, DVGo aims to turn the traveler's subjective experiences and preferences into digital assets that can be shared with others and monetized. In July of 2025, we extended our traditional cash management service into in-store assets by launching our smart retail solution. By the end of the year, this service, which offers AI-guided customer traffic analysis and RFID inventory system, had been deployed at 13 retail stores across Thailand. In February of 2026, we signed a partnership to deploy smart retail solution at several additional locations of an international chain retailers. Our rollout's expected to continue through 2027. Besides the vertical business development, horizontal acquisition is another growth line of GFAI.

In March of 2026, we expanded our AI implementation into the education and healthcare sectors through our acquisition of MGAI Limited, a pioneer in AI-driven solutions for pediatrics, speech therapy and rehabilitation in Asia. This acquisition positions us to capture a validated and growing market opportunity in these sectors, an opportunity with strong potential for cross-sector scalability and synergies across the platform. Now, turning to our legacy secured business. The business continued to perform well in 2025, increasing its revenue contribution by about 7% compared to 2024. Our client base has transitioned from being bank-dominated to diversified mix. As of now, 10 of our top 15 clients were retailers and commercial entities. Five years before, eight of 10 were banks. This shift, in turn, enhances our overall business stability and strengthens our long-term growth profile. Also, in 2025, in order to better reflect our growth strategy and the evolving revenue mix, we updated our business metrics. Today, our business metrics were divided into two groups. The first group is our technology-driven businesses, which include AI robotics as a service and smart solutions. Within smart solutions, I mentioned we have Smart Cash as well as our smart retail solution. Our Smart Cash Solution is a great example of this process, as it integrates smart deposit infrastructure and digital reporting capability in order to improve accuracy, transparency, and efficiency from cash handling operations. More importantly, our AI-related agents represent the next layer of our evolution. It serves as an intelligent interface between users and the services, enabling real-time decision-making and personalized interaction.

Together with our underlying AI capabilities and platform infrastructure, we are moving towards a full stack architecture where services, intelligence, and user interaction are seamlessly connected into a unified system. Our second business group is our service business. Our legacy secured logistics, which encompasses our traditional services like cash management operations, coin processing, ATM management, and related offerings. This matrix delivers stable, contracted, and recurring revenue underpinned by long-term client relationships and high renewal rates. Growth in this business is managed through operational discipline, as revenue expansion is accompanied by corresponding increase in fuel, equipment, and manpower costs. In this context, maintaining consistent margin reflects strong execution. Overall, we believe that this updated matrix can give investors a clearer view of our revenue mix and how our growth is evolving in the long term. Now to review our financial highlights for 2025, here is our Financial Controller, Melody Yang.

Thank you, Olivia, and thanks again to everyone for joining this presentation. As Olivia mentioned, 2025 was a very positive year for Guardforce AI. During the year, total revenue increased 8% to $35.2 million compared to $32.6 million for 2024. Legacy secure logistics accounted for 86.6% of total revenue in 2025. This growth continued to demonstrate our legacy business strong stability, achieving over 99% recurring revenue and delivering year-on-year growth of 6.9%, primarily driven by the expansion of our retail-focused service lines in Thailand. Our AI, robotics and smart solution accounted for 13.4% of total revenue in 2025 and recorded a robust growth of 15.3% during the year. This performance is mainly supported by increased demand from retail customers for our Smart Cash Solution product.

Our gross profits for 2025 grew by approximately $9.4 million, or 7.5%, to $5.3 million, compared with gross profits of $4.9 million in 2024, with gross margin remaining stable year-over-year. We have now achieved gross profit growth in every year since 2022. R&D investment for the year was approximately $0.8 million, an increase of 115.4% compared to approximately $0.4 million in 2024. This increase reflects our commitment to advancing our AI capabilities and product innovation. Throughout the year, our R&D team continued to enhance our AI robotic solutions platform, ICP 3.0, reinforcing our commitments to innovation and ensuring that ICP 3.0 remains the core platform for our next generation AI solutions. We recorded the lowest net loss from continued operations since 2021, narrowing down by $0.6 million, or 10.1% compared to 2024.

We also achieved the lowest operating loss since 2022, which improved by $0.8 million or 12.4% compared to 2024. These improvements were mainly due to the higher gross profits and lower expenses. Now turning to our balance sheet. We also achieved a stronger balance sheet. At year-end 2025, our cash and cash equivalents stood at $24.5 million, compared to $21.9 million at year-end 2024. These resources are primarily reserved for future AI investments, including R&D expenses, talent recruitment, and strategic acquisitions. Working capital as of December 31st, 2025, stood at $27.7 million, with a current ratio of 5.32, highlighting the strength of our short-term liquidity and our ability to support ongoing operations and near-term growth initiatives. Our non-current liabilities did increase, primarily driven by newly recognized lease liabilities on the recently signed lease agreements.

We also classified certain assets and liabilities as held for sale in connection with the divestiture of our general security segment in 2025. This action reflects our ongoing efforts to streamline our portfolio and sharpen our strategic focus on higher growth, AI-driven opportunities. With that, I will turn the call back to Olivia to discuss our strategic priorities for 2026.

Thank you, Melody. Looking ahead to the remainder of 2026, we intend to pursue several strategic goals principally intended to create long-term value for our investors. First, we will continue to deepen our investment in AI by advancing the capabilities of our DVGo, the AI agent. While DVGo initially focused on travel as a high-value, decision-intensive use case, we see it as much more than a single vertical application. It is designed as a modular agent-based AI agent that can be extended across multiple industries. At its core, DVGo enables intelligent decision-making, planning, and service matching, capabilities that are highly transferable to other sectors such as banking, hospitality, education, and healthcare. Over time, we believe this will allow us to scale DVGo from a vertical solution into cross-industry agent platform, significantly expanding its addressable market and long-term value. That's why we acquired MGAI in early 2026. It's a way to pursue selective mergers and acquisitions as a way to accelerate our AI platform. We do not view M&A as an expansion for its own sake, but as a strategic tool to strengthen our core capability, particularly in AI deployments across multiple verticals. MGAI, in this context, enhances our capability layer, complementing our DVGo as the interface layer and ICP 3.0 as the infrastructure. Going forward, we will remain disciplined and focused, targeting opportunities that improve capital efficiency, deepen our technology stack, and drive scalable long-term value creation across the platform. Meanwhile, we will accelerate the cross-selling of our smart solution services across our existing retail client base, leveraging our long-standing trusted relationships to evolve from primarily service delivery providers to integrated multiple solutions partners.

This transition, we believe, has potential to unlock significant incremental revenue in 2026 and beyond. Expanding service will not only increase our technology product customer base and enable us to better meet the soaring demands now being seen in Southeast Asia's AI-related business sector. They will also drive sustainable cost optimization for our company and significantly improve our margins and operating income across all our business segments. With that, Melody and I would be happy to answer your questions.

Thank you, Ms. Wang. I'll now return the floor to Hu Yu, who will read investor questions that have been emailed prior to this call. For the webcast viewers, simply use the chat function of the webcast platform and type your questions and click send.

Thank you, operator. As mentioned in our call announcement for SVBs, we invited investors to submit their questions in advance. We'd like to address those questions right now. Some questions are duplicative, so we did our best to reconcile those questions where possible. If you have any further questions after the call, please feel free to follow up with the Guardforce AI investor relations team. Now it comes to question one about AI business and the traditional business. Can you provide a breakdown of AI-driven revenue versus the legacy cash-secure logistics revenue for the fiscal year 2025 and also for the second half of 2025? I think this addresses to Melody.

Yeah. Thank you for the question. In our earnings script, we provided a comparison between AI-driven and legacy revenue growth for 2025. The revenue for legacy secure logistics was approximately $13.5 million and accounted for 86.6% of total revenue in 2025, with year-on-year growth of 6.9% and more than 99% of this business is recurring revenue. This growth is primarily driven by the expansion of our retail-focused service lines in Thailand. The revenue for AI, RaaS, and smart solution was approximately $4.7 million, accounting for 13.4% of total revenue in 2025, with growth of 15.3% during the year. Besides the growth, what's important to highlight is the trend it shows. AI-related revenue is growing at a significantly faster pace than our traditional cash logistics business.

In the second half of 2025, we saw a clear acceleration in AI and smart solution deployments in Thailand. While legacy services remain a stable revenue base, the mix is gradually shifting towards high-margin, technology-driven income streams. This gives us confidence that our transformation is not just strategic, but already reflected in our revenue structure.

Thank you for the answer, Melody. Now we come to the question two is about the new business matrix. This is addressed to Olivia. Why do you think the company began to categorize the business into AI-driven solutions versus the legacy services starting in 2025? And how should investors interpret the shift?

That's a good question. Thank you. This reclassification is not just a financial presentation change. It reflects a fundamental shift in how we operate and create value. Historically, we were a service-driven company. Today, we are evolving into a technology-driven solution provider with services as the foundation, AI, robotics, and software as the growth engine. As we can see from the revenue breakdown in 2025, our technology-driven solutions segment has a higher growth rate, with smart retail solution POC completed, and cross-sell opportunities exist in Thailand. Continued expansion of our Smart Cash Solution and the completed acquisition of MGAI, our technology-driven solutions are showing great growth potential in 2026. By separating AI-driven revenue from legacy services, we aim to give the investor clearer visibility into the transition, both in terms of growth rate and long-term scalability. More importantly, that aligns our reporting with how we manage the business internally and how we see our future positioned, not just as a service company, but as an AI and a RaaS-enabled platform.

Thank you, Olivia. Thank you for answering the second question. Now, the third question is about the recent development and executions. Can you elaborate on the recent business developments, including new partnership or deployments since our last earnings call?

Of course. Since the last earnings call, we have been focusing on growing our AI business and the smart solution expansions in Thailand. As we previously mentioned, we strengthened our AI capability in vertical use purpose by acquiring MGAI, and we are working on integrating this capability in our existing solutions. At the same time, DVGo continues to evolve as part of our AI-driven product strategy, with a focus on enhancing user experience and interaction. Our priority is to gradually align this development with our broader platform framework to support long-term scalability. We believe this integrated approach will support more sustainable growth over time.

Thank you, Olivia. Now, coming to the fourth question. It's about the NASDAQ compliance and also the buyback program that the company announced earlier this year. What actions is the management taking to achieve the NASDAQ compliance, and how does the share buyback program factor into the strategy?

A good question again. Of course, as the listed company, maintaining NASDAQ compliance is a priority for us, and we are actively managing both operational performance and capital strategy to address this. From a fundamental perspective, our focus is on executing our growth strategy, particularly in AI and smart solutions, to drive the long-term value. At the same time, the share buyback program provides us with additional flexibility to support the stock when appropriate. We view the buybacks as a tool, not the core strategy. Our primary objective remains to improve business performance and investor confidence through execution. We will continue to evaluate all available options and act in the best interest of our shareholders. Thank you.

Thank you, Olivia. Thank you, Melody. That concludes our list of previously sent questions. Now, let's see if we have any additional questions from the webcast other than the ones we already answered.

Thank you. For the webcast viewers, simply use the chat function of the webcast platform and type your question in the box and click send. At this time, we'll now take any questions from the webcast.

Thank you, operator. We have one additional questions to ask here. It's about the platform and also the intelligent cloud platform that Guardforce AI has. How should investors think about the ICP 3.0's value, and in the overall Guardforce AI platform strategy, and how do we measure the progress at this stage? I think this addresses to Olivia.

Yeah. Let me answer the question. The ICP is the Intelligent Cloud Platform. Now, it's the version now. ICP 3.0 is a conventional platform that connects our different business lines, including DVGo and our robot service. It is going to support MGAI as well in the future. MGAI enhance our AI capabilities across various applications, while our DVGo focuses on improving user interaction and experience through AI agent. Well, we are still in early stage of the full rollout. We are already seeing increasing adoption among our enterprise clients, particularly those looking for integrated solutions rather than stand-alone service. Instead of focusing only on client count, at this stage, we are prioritizing depth of our integration, how many modules are being used and how embedded we are in the client's operations, how recurring the revenue becomes.

Over time, we're expecting that the ICP 3.0 to drive higher contact value and a stronger client retention, positioning it as a key driver of our platform-based revenue model. Thank you.

Thank you, Olivia. Okay, thank you, everyone. That concludes our section for the live questions for now. I'll give it back to the operator, and for any follow-up questions that we haven't answered or we didn't have a chance to get back to you, feel free to email that at [email protected] at any time. We'll get back to you as soon as possible. Now, I'll give it back to Olivia for any closing remarks. Olivia.

Okay. Thank you, Hu Yu. Thanks again to everyone for taking the time to join us this morning. We appreciate your interest in our company, and we invite you to visit our website and follow our progress in 2026. We hope you have a great day.

Thank you, Ms. Wang, and thank you to everyone for joining our presentation today. This concludes our conference call for Guardforce AI Co., Limited. Thank you and have a wonderful day.

Good morning and welcome to Guardforce AI 2024 Year-End Conference Call. Today’s conference is being recorded. Ms. Natalya Rudman of Crescendo Communications, please go ahead.

Thank you Operator and good morning everyone. I would like to thank everyone for joining us today for the Guardforce AI year-end 2024 shareholder update call. Today Guardforce AI’s Chairwoman and Chief Executive Officer, Olivia Wang and Chief Financial Officer, Catherine Zuo; and Lin Jia, President of Guardforce AI will be your presenters on the call. The company issued a press release this morning containing its 2024 fiscal year financial results which is also posted on the company’s website. If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at 212-671-1020. Before we begin I am going to review the company’s Safe Harbor Statement. The statements in this conference call that are not descriptions of historical facts are forward-looking statements relating to future events and as such all forward-looking statements are made pursuant to the Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and actual results may differ materially. When used in this call the words anticipate, could, enable, estimate, intend, expect, believe, potential, will, should, project, and similar expressions as they relate to Guardforce AI are as such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainties which may cause actual results to differ from those anticipated by Guardforce AI at this time. In addition other risks are more fully described in Guardforce AI’s public filings with the U.S. Securities and Exchange Commission which can be reviewed at www.sec.gov. The company makes no commitment to disclose any revisions to forward-looking statements or any facts, events, or circumstances after the date hereof that bear upon forward-looking statements. With that out of the way I will now turn the call over Chairwoman and CEO, Olivia Wang. Please go ahead Olivia.

Thank you, Nat and welcome everyone to today's earnings call. 2024 was a transformatic year for us, marked by operational consolidation and an interest revenue mix, and a significant strides in AI innovation. I'm pleased to report that we achieved growth across key segments. And, notably, our call business recording its first operating process since IPO, an important milestone following the challenge of the pandemic. We made meaningful progress in shifting our revenues next to world's higher-margin offerings and today, we sell over 25,000 retail stores globally. Retail is steadily rising to become one of our top clients and segments, the passing of historical banking clients. Back to our strong balance sheets, with approximately $23.4 million in cash, cash equivalents, and restricted cash. We are well-sufficient to accelerate our AI solution strategies. On the technology front, we advanced our Robots-As-A-Service model across Asia-Pacific region and launched the DVGO, DeepVoyage Go, our first AI-powered travel planning agent. In parallel we established an orange [ph] team to support the development of -- AI agents. Why AI agents? We believe that AI should enhance immense productivity, not just optimize for profit, but for people. In the words saturated with algorithm driven noise, AI agents can cut through the chatter helping users make decisions rooted in personal relevance and value. Why start with travel? Travel is deeply personal, emotionally driven, and a full of decision friction and so it creates lasting memories. Our goal with DVGO is not just for efficiency, but empowerment, bringing clarity, balance, and intake integrates to complex progress. DVGO is our first consumer-facing application and a proof prompt of our border of AI platform, which is for future expansion into SaaS and the B2B, B2C used cases. Over time, we see opportunities to deploy similar AI agents in retail, education, and other consuming-facing industries. As we look to 2025, our vision is clear. AI should empower people, not replace them. Our focus will be on scaling what we built. Trusting our secure logistics operations, expanding with retail and travel, tinkering [ph] in our AI R&D, and extending our smart solutions globally. With that, I will hand it to Lin, who leads our technology and projects developed. He will walk you through our AI agent strategy in more detail.

Thank you, Olivia. In 2024, our vision for human-centered AI moved from concept to execution, and certified the launch of DVGO, our intelligent travel assistant that the first realization of our long-term AI agent strategy. We also upgraded our GFAI [ph] AI Intelligent Cloud Platform, transforming it into an AI driven system capable of supporting agent-based HTML key. This upgrade focused on four key pillars. The first, deep user intent modeling, and second, simulate coordination among specialized AI agents. And the third, transparent feedback loop that builds trust, and the last one, a scalable, multi-lingual architecture that learns across users and domains. DVGO solved one of the most complex challenges in travel planning. Building a complete travel plan that works in real life. It is a task that requires the system to balance a multitude of factors in real time. DVGO uses multi-objective optimization efforts that apply our combination of models to solve the traveling salesman problem, or as you know as the TXT problem. We translate user needs into structured inputs which allow the system to build and optimize travel routes in real time. It adapts to planning needs like budgets, timing, and travel style, and takes into account real-world structures that wider our change of black lanes. DVGO is powered by reinforcement learning model. These models adjusts over time based on how users behave and what happens around them. This combination of models not only solves the TXT problem, but also provides highly-cognized solutions for each user. With four-year operational experience in robots, we are learning more about what clients actually need. That background also helped us build a routine and shape a clear direction for our products. AI agents like DVGO are built to support real-world decisions. In retail, we can help customers purchase what they truly need, not just what advertise. In education, they can deliver personalized learning instead of generic content. We are working to expand the AI agent tools into more areas where smart decisions really matter. With that, I will now hand over to Catherine who will review our 2024 year-end financials. Thank you.

Thank you, Lin and good morning, everyone. I will now go through some of our key P&L items and balance sheet items. As previously mentioned by Olivia, we have improved our revenue mix towards a higher margin offerings in 2024. Revenue from our Secure Logistics business for 2024 was at $32.4 million U.S., representing an increase of $544,000 or 1.7% compared to a $31.9 million for 2023. Revenue growth in Thailand was mainly contributed by our retail focused service lines, including our Guardforce Digital Machine, known as the GDM, and our cash in turns at NANDV known as the CIP NANDV. This year, our GDM products experienced remarkable year-over-year growth of $1.1 million or 39.5%, driven by strong demand from chain retailers. Our CIP NANDV business also saw a notable increase of 351,000 or 3.0%, benefiting from the successful execution of our retail focused strategy. Also, our company wide efforts to prudently and deliberately in expense control process has yielded some very positive results for our company. Despite the increase in revenue, our cost of sales decreased by close to $799,000 from $30.9 million in 2023 to only $30.1 million in 2024. As a result, our gross profits increased by $866,000 or 16.1% to $6.3 million year-over-year. The improvement in gross profit also contributed to our lowest net loss from continuing operations since 2022, which narrowed down to only negative $5.9 million representing a year-over-year reduction of 80.1%. Our operating expense also has marked it a significant year-over-year decrease, particularly due to the reduction in selling, distribution, and administrative expenses, which decreased by 20.7% or $2.6 million from $12.7 million to $10.1 million. In 2024, our depreciation and amortization expenses declined significantly primarily due to the reduced use of our legacy robotics assets as we're transitioning towards an AI-centric business model. Additionally, the professional fees decreased compared to the prior year too, as no acquisitions were completed during 2024. As part of our AI-centric business transitions as what Lin has mentioned before, we remain focused on controlling expenses associated with our traditional operations, while strategically increasing investments in the AI-related research and development to support our long-term innovation and growth. In 2024, we have invested around $591,000 in our R&D, representing an increase of approximately 2.5 times compared to last year's R&D spend of only $170,000. Throughout the year, our R&D team continued to enhance our AI and robotics solutions platform ICT 3.0, reinforcing our commitment to innovation and ensuring that this platform remains the core platform for our next generation AI solutions. Now, turning to our balance sheet. Our total assets were at $44.7 million as of December 31st, 2024. And this includes a strong cash and cash equivalent, including restricted cash balance of $23.4 million, accounts receivable of $5.9 million, other current and non-current assets of $15.4 million, long-lived assets of $7.8 million. It now comes to liabilities. The total liabilities were $12.7 million as of December 31st, 2024 and this includes our trade payables and other current liabilities of $4.5 million. Operating lease liabilities of $2.3 million and provision for employee benefits of $5.5 million. This concludes my comments. And now I would like to turn the call back over to Olivia, please.

Thank you, Catherine. Nat, would you please lead us through the Q&A discussion?

Yes. Thank you, Olivia. In our call announcement press release, we suggested interested parties submit their questions in advance. We'd like to address those questions for you now. Some questions were duplicative, so we did our best to reconcile those where possible. If you have any questions after the call, please feel free to follow up with Investor Relations, and we'll be sure to respond to you as quickly as possible.

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

Thank you, Catherine -- no, thank you, Nat, for the question. Our business remains the primary driver of revenue and cash flow, accounting for over 80% of the total income. It also gives us a strategic advantage. With more than 25,000 retail clients, providing a strong foundation to introduce our AI solutions. Over the next 12 to 24 months, our key focus will be expanding our agent platform, starting from the DVGO, and progressively moving into our new verticals, including travel, retail, and education. We expect the DVGO to achieve the progressive adoption milestone that validates the effectiveness of our agent in improving our decision-making and user certification. To support this growth, we are building a stronger sales and operations team to support future growth. Meanwhile, we are also pursuing a strategic executive approach that will complement our core business and AI platform expansion. That's all. Thank you.

Thank you. Our next question is, how does DVGO's revenue will impact the current revenue mix and the profit margin?

Yeah, good question. This links together with the first. DVGO actually is one of our key strategic investments and a major step in advancing our AI agent development. In short term, DVGO will contribute a small but growing portion of overall revenue, helping diversifying our income from traditional services to more recurring AI-powered revenue streams. Over time, it's expected to become a major contributor. Initially, of course, the margins will be lower due to upfront AI development and customer acquisition costs. However, as DVGO scales, the high margin software-driven measure will significantly boost our profit margin, offering higher efficiency and lower incremental costs as we expand the business. Overall, DVGO represents a transformational shift in our business model from series-based to tech platform-based business model, enhancing our valuation and position us for sustainable long-term growth in higher margins and tech-driven future.

Thank you. Next question is, are you able to provide more frequent or segmented financial disclosures to allow for better performance assessment across business lines?

Thank you for the question, Nat. So at this time, we do not have plans to change the frequency of our financial disclosures. However, we do encourage you to visit our website and follow our social media channels for the latest news and updates regarding our product, customers, and business activities. Thank you.

Thanks, Catherine.

Next question is, given the recurring capital expenditures and ongoing net losses, what specific steps are being taken to reduce cash burn?

Okay. Thank you for the question. That's a good one. And yes, managing cash flow remains a top priority for us. And in 2024, we made some meaningful progress in reducing our cash burn. And specifically, we steadily increased the revenue while achieving a much healthier gross margin and tightened our cost structure. All of these helped us significantly narrow down our net loss. And our gross profit margin also reached a historical high of 17%, driven by improvements across all of our business segments and supported by company-wide cost management initiatives, including a very successful manpower streaming lining project that substantially reduced direct labor costs for our company. Moreover, in Thailand, our retail-focused strategy improved operational efficiency by allowing us to serve a larger client base without additional dedicated resources. We also optimized our business mix, expanding high-margin services including GDM and [indiscernible], and reducing exposure to lower-margin services such as ATM. Since this segment represents – our Thailand segment represents 89.2% of the total revenue, these shifts have a very meaningful impact to our overall financial results. Our general security business also remained very stable and achieved a slight gross margin improvement to around 36%, thanks to the disciplined cost control. Additionally, our AI-focused transition, which began in 2023 reduced our reliance on legacy robotics and eliminated redundant costs, further boosting our profitability and positioning us for more cash-efficient growth. So, in 2024, our net loss narrowed down by 80% to $5.9 million, comparing to $29.6 million back in 2023. Our adjusted EBITDA has also improved year-over-year by approximately 1.1 million, or 61 – over 61%, to only a negative 0.7 million in 2024, compared to a negative 1.8 million in 2023. All of these results further prove that with the steps that I mentioned above, they have helped us slow down the cash burn, and we remain focused on further improving our overall business efficiency, managing expenses, and driving profitable growth. Thank you. That's all of my answer for that question.

Thank you. Appreciate the answers.

Our next question is, what is the core differentiation of the DVGO AI agent compared to existing Travel AI assistants in the market?

Oh, that's a good question. The DVGO was created to meet the needs of modern travelers seeking an AI assistant that understands their purpose, helps them suggests options, builds plans, and supports them throughout the journey. It acts like a true user-centric agent, thinking from the traveler's perspective. Unlike traditional travel platforms that focus on selling products, DVGO begins with the user's intent and purpose, then builds a personalized path to meet their needs. While conventional platforms overwhelm users with information, DVGO uses a dialogue-driven approach to guide smarter decision-making. While traditional tools leave the decision-making entirely to the user, often resulting in fragmented outcomes, DVGO integrates AI to streamline execution and deliver a cohesive experience. In short, I think DVGO shifts the focus from product pushing to purpose-driven planning using AI to empower smarter, more personalized travel decisions. That's all.

Thank you. Next question is, what IP does GuardForce AI currently own or license, and how is it being protected to maintain a technological edge?

Well, certainly, IP is the key asset, and we care about it. At GFAI, we focus on both owning and licensing the technology to strengthen our competitive edge. On our side, we have deployed several core systems that power our AI solutions, including advanced agent coordination, decision optimization frameworks, and personalized user experiences. On the licensed side, we utilize the selected AI foundation models and open-source components under proper agreement to enhance our offerings, ensuring full compliance for commercial use. To protect our technology advantage, we deploy a multi-layered approach. But first, we treat critical technologies as internal trade secrets. And second, we marginalize our systems to limit exposure risks. And third, we keep a clear separation between what we licensed and what we build ourselves so we can control any risks from third-party components. Additionally, we continuously explore heightened opportunities to protect innovation as our platform evolves. Overall, our IP strategy is designed to ensure long-term value creation, safeguard our technology eyes, and maintain the scalability and trustworthiness of our solutions. That's all. Thank you.

Thank you so much. That concludes our Q&A. I'll turn it back over to Olivia for closing remarks. Please go ahead, Olivia.

Thank you, Nat and thank you to everyone who joined the call today. It's efficient. As always, we appreciate the support of all our shareholders and look forward to providing more updates with development efforts. Thank you and take care, everyone.

Thank you, ladies and gentlemen. This concludes today's call. You may disconnect your lines at this time, and we thank you for your participation.