About Guardforce AI

Guardforce AI Co., Limited (Guardforce AI) engages in the provision of cash solutions (i.e., efficient cash management) and cash handling services to customers, including cash transportation, cash processing and ATM services markets in Thailand. The company's newly developed robotic AI solutions service, information security service and general security solutions service. Guardforce Cash Solutions Security (Thailand) Company Limited, or GF Cash (CIT), is the only subsidiary providing secured logistics services with operations in Thailand. In 2021, the company acquired 51% of Handshake Networking Ltd in Hong Kong as part of its strategy to enter into the Information Security business. On March 22, 2022, the company acquired 100% of the equity interests in Shenzhen GFAI and Guangzhou GFAI in Greater Bay Area of China. This acquisition is expected to serve an integral role in the growth of Guardforce AI's robotics as a service (RaaS) business initiative. The company's businesses are categorized into four main units: Secure Logistics Business; General Security Solutions; Robotics Solution Business; and Information Security Business. Secure Logistics Business The company engages in the cash logistics business in Thailand. The company's services include cash-in-transit, dedicated vehicles to banks, ATM management, cash center operations, cash processing, coin processing, cheque center, and cash deposit machine solutions (cash deposit management and express cash service). Its customers include local commercial banks, chain retailers, coin manufacturing mints, and government authorities. The company's four major customers are Government Savings Bank, Bank of Ayudhya, TTB Bank Public Company, and CP All Public Company. A few global customers also retain the company's services under temporary contract. As of December 31, 2022, the company had 469 vehicles. In 2020, in addition to the company's secure cash logistics business, it began to develop other non-cash related solutions and services in an effort to diversify its revenue streams. In view of the pace of global robotics development and in response to the more automated requirements, driven in part by the COVID-19 pandemic, the company has begun to rollout robotic solutions for its customers in Thailand and across the Asia Pacific region. Products and Services of Secure Logistics Business As of December 31, 2022, the large majority of the company's revenues are derived from its principal business, which is Secure Logistics Solutions. This primarily includes Cash-In-Transit - Non-Dedicated Vehicle (Non-DV); Cash-In-Transit - Dedicated Vehicle (DV); ATM management; Cash Processing (CPC); Cash Center Operations (CCT); Consolidate Cash Center Operations (CCC); Cheque Center Service (CDC); Express Cash; Coin Processing Service; and Cash Deposit Management Solutions (GDM). Secure Logistics Solutions collects cash from its customers' main business operations, then delivers the collected cash to its cash processing centers for counting, checking and packing in bundles, after which the cash is transported to the customers' designated depository banks and deposited into the customers' bank accounts. The company enters into contracts with its customers to establish pricing and other terms of service. The company charges customers based on activities (service performed), as well as based on the value of the consignment. Core Services The company's Core Services include CIT (Non-DV), CIT (DV), ATM Management, CPC, CCT, CCC, CDC and GDM. For the year ended December 31, 2022, Core Services represented 89.6% of the company's total revenues. Cash-In-Transit - Non-Dedicated Vehicles (Non-DV) CIT (Non-DV) includes the secure transportation of cash and other valuables between commercial banks and the Bank of Thailand, Thailand's central bank. CIT (Non-DV) also includes the transportation of coins between the commercial banks, the Thai Royal Mints and the Bank of Thailand. As such, the main customers for this service are the local commercial banks. Charges to the customers are dependent on the value of the consignment; condition of the cash being collected (for example, seal bag collection, piece count collection, bulk count collection, or loose cash collection); and the volume of the transaction. Vehicles used for the delivery of this service are not dedicated to the specific customers. Cash-In-Transit - Dedicated Vehicle to Banks (DV) CIT (DV) includes the secure transportation of cash and other valuables between commercial banks. As part of this service, dedicated vehicles are assigned specifically to the contracted customer for their dedicated use between the contracted designated bank branches. As this is a dedicated vehicle service, customers will submit direct schedules to the company's CIT teams for the daily operational arrangements and planning. Charges to the customers are on a per vehicle per month basis. ATM Management ATM management includes cash replenishment services and first and second line of maintenance services for the ATM machines. First line of maintenance services (FLM) includes rectification of issues related to jammed notes, dispenser failures and transaction record print-out issues. Second line of maintenance services (SLM) includes all other issues that cannot be rectified under the FLM. SLM includes complete machine failure, damage to hardware and software, among other things. Cash Processing (CPC) Cash processing (CPC) services include counting, sorting, counterfeit detection, and vaulting services. The company provides these services to commercial banks in Thailand. Cash Center Operations (CCT) Cash Center Operations (CCT) is an outsourced cash center management service. The company operates the cash center on behalf of the customer, which includes note counting, sorting, storage, inventory management and secured transportation of the notes and coins to the various commercial banks in Thailand. Consolidate Cash Center (CCC) Consolidate Cash Center (CCC) provides an outsourced cash center management service. The company operates the cash center, which includes note counting, sorting, storage, inventory management and secured transportation of the notes and coins on behalf of for Bank of Thailand (BOT). Cheque Center Service (CDC) Cheque Center Service (CDC) includes secured cheque pickup and delivery service. Express Cash The express cash service is an expansion of the company's Guardforce Digital Machine, or GDM, solution. The company works with commercial banks to have a mobile GDM installed in its CIT vehicles to collect cash from retail customers at the retailers' sites. The cash is immediately processed inside the CIT vehicle and the cash counting results are immediately transmitted to GF Cash (CIT) headquarters and to the commercial bank. That bank will then credit the counted amount to its customers' bank accounts. The company launched the Express Cash service in 2019. Coin Processing Service The Coin Processing Service includes the secure collection of coins from retail businesses and banks. The coins are stored and then delivered to the Royal Thai Mint, a sub-division of the Thai Treasury Department, Ministry of Finance. The company deploys manpower to work at the Royal Thai Mint as cashier services. Additionally, the company uses its existing vehicle fleet to deliver coins from the Royal Thai Mint to bank branches, and vice versa. Others - International Shipment International shipment provides secured delivery service that the company receives and delivers high valued items, such as diamonds and jewelries on behalf of its customers. The company receives the consignment by air and delivers to local customers in Thailand or vice versa. Cash Deposit Management Solutions (GDM) Cash Deposit Management Solutions are delivered by the company's Guardforce Digital Machine (GDM). The GDM product is deployed at customer sites to provide secured retail cash deposit services. Customers use the company's GDM product to deposit daily cash receipts. The company then collects the daily receipts from its GDM in accordance with the agreed schedules. All cash receipts are then securely collected and delivered to its cash processing center for further handling and processing. Fleet of Vehicles for the Secured Logistics Business The company operates a fleet of 469 vehicles. Its fleet includes armored vehicles - pickup, armored vehicles - van, armored vehicles - truck 6 wheels, maintenance soft skin vehicles - pickup, coin trucks soft skin - pickup, security patrol soft skin - pickup trucks and administrative vehicles. The company's vehicles are maintained to the highest commercial standards to ensure its quality of service. The company operates dedicated garages for the repair and maintenance of its vehicles, staffed with a team of in-house auto mechanics. The company's vehicle repair facilities are located at its head office location in Laksi and at other major branch locations. The company also has a well-established logistics department, which monitors the operations of its garages and the maintenance of its vehicle operations standards. Robotic Solutions Business The company's Robotics Solutions business was established in 2020 as part of the company's revenue diversification efforts. The company operates on a Robots as a Service (RaaS) business model and purchases the robots from equipment manufacturers. The company integrates various value add applications and offers these as a recurring revenue service. As part of its market penetration strategy, the company has adopted a mass adoption strategy by providing the robots on a trial basis with an option to purchase or rent. In February 2022, the company had reached a strategic milestone deploying more than 1,400 robots in the Asia Pacific region. The majority of these robots are still on a free trial basis with its key consideration being the collection of usage patterns and market intelligence allowing the company to further develop applications and features that are suitable to its customers. In 2021, the company announced the launch of its Intelligent Cloud Platform (ICP) to help better manage the remotely deployed robots and to facilitate the development of additional features and applications. In February 2022, the company entered into a Commission Development Agreement with Shenzhen Kewei to enhance the development of the ICP to GFAI Intelligent Cloud Platform V2.0 by adding an additional advertising feature to the ICP to commence its robot advertisement business in Macau. In November 2022, the company announced its advertisement business model (the AIOT Robot Advertising) and launched a mobile app (the APP) in Apple App Store in the Asia Pacific Region. The company starts this APP for ads placement in Macau and it plans to promote and deploy this APP to further develop its advertising business in Southeast Asia in the year of 2023. Besides advertising business, the company also added Tech Service Platform (TS) and Robot Operation Management Platform (ROMP) under the framework of ICP, which can better manage the functions of the robots and can better deal with defective robots on its cloud platform. The company plans to provide access to the ICP to all its clients through a browser-based interface that allows clients real-time data access. The company is working continuously to improve and upgrade the robots and the ICP and their precise specifications may change over time. Beginning March 2022, the company speds up its global expansion and entered the new markets, such as Dubai, Japan, and United States. As of December 31, 2022, the company has operational offices in Thailand, Singapore, Malaysia, Japan, China, Hong Kong, Macau, and the United States. It also established partnership with two technology companies, Blue Pin (HK) Limited and Riversoft Inc. The company is co-launching the self-check-in/out system for hotels with Blue Pin (HK). The company develops a Robot Travel Agency (RTA) that can help to offer travel advice and booking services for tourists with Riversoft Inc. The company has 3 robotics products: Reception Robot (T - Series) for indoor stationary applications; Disinfection Robots (S - Series) for indoor applications; and Delivery Robot (D - Series) for indoor applications. Reception Robot (T - Series) The T - Series robot is designed for indoor deployment at ingress/egress points for access control management. The T - Series robots are used primarily at shopping malls, residential buildings, educational institutions, corporate buildings, hospitals, supermarkets, transportation stations, hotels, and entertainment venues. Disinfection Robots (S - Series) The S - Series robot is designed to be deployed indoors with disinfection capabilities and is used primarily at shopping malls, residential buildings, educational institutions, corporate buildings, hospitals, supermarkets, transportation stations, hotels, and entertainment venues. Delivery Robot (D - Series) The D - Series robot is designed for indoor applications for autonomous delivery capabilities and is used primarily at hotels, hospitals, restaurants, and office environments. In addition, all of the company's robots include several communications features - the units can transfer data over both 4G LTE networks and Wi-Fi and will be able to incorporate future 5G capabilities. Information Security Business The company acquired a majority stake in Handshake Networking (Handshake) on March 25, 2021, and it began generating its Information Security revenues. Handshake has been providing professional information security consultancy services within the Asia Pacific region. General Security Solutions The company began operating its general security solutions service through the acquisition of the 100% equity interest in Beijing Wanjia on June 22, 2022. The company's services include the provision of Smart Retail Operation Management, CCTV and Security Alarm Operation, Security Engineering and Maintenance. Core Services Commercial Smart Retail Operation Management Commercial Smart Retail Operation Management is an intelligent management system that is based on big data technology, and the provision of a series of consultant services on store risk evaluation, surveillance and management, anti-fraud checks etc. CCTV and Security Alarm Operation The company's automatic security alarm system consists of various electronic sensors, security alarms host and the operating surveillance control center. With the support of the Internet of Things (IoT) and communication networks, if there are any abnormal situations that have been detected by the electronic sensors, it automatically send the signals, surveillance pictures and analysis to the control center. Security Engineering and Maintenance The company holds a well-recognized certification in security engineering in China and are equipped with an experienced professional team to perform first-class integrated security projects and provides continuous maintenance services. Growth Strategy The company's principal growth strategies are to continue to maintain its leadership position in Thailand by providing the best-in-class solutions to its customers; offer a broad range of new and innovative services; plan to obtain more multinational customers, such as in the tourism segment; continue to drive geographical expansion into key markets either via acquisitions and partnerships or organic growth; and continue to invest in and develop the robotics back-end technology, such as its Intelligent Cloud Platform (ICP) to enhance and upgrade the features of, and applications for, the robots. Sales and Marketing Secure Logistics Business In 2023, for the company's secure logistics business it endeavors to ensure that all of the company's existing customer contracts will be renewed, to protect the company's major sources of existing income. In addition, the company plans to undertake the following activities to promote the company's businesses: To continue to work closely with local Thailand commercial banks to attract more retail chain customers to the company's secure logistic solutions, such as outsourced cash management services; To work closely with existing customers to extend the company's secure logistics solutions throughout Thailand and other industries; and To explore upgrading the cash processing system to include AI related functions and capabilities. Customers The major customer of the company's secure logistics business has been the Government Savings Bank, a state-owned Thai bank. For the year ended December 31, 2022, the revenue derived from the state-owned bank (the Government Savings Bank) was approximately 23.5% of the company's revenue. For the year ended December 31, 2022, the company's next three largest customers were the Bank of Ayudhya Public Company, TTB Bank Public Company, and CP All Public Company. The main competitors are the international companies, such as Brinks, and there are also many local CIT competitors in Thailand. Robotics Solutions Business In 2023, the company plans to undertake the following activities to promote the company's Robotics Solutions business: To cooperate with local service providers in the markets the company participates to integrate localized services with the primary functions of its robots to jointly explore the local markets; To leverage its existing infrastructure to roll out and introduce its robotic solutions in hotels, malls, transport hubs, hospitals and shopping malls. The company focuses on these industries in the Asia Pacific region where it expects the economy will be gradually recovered from the pandemic in 2023; To focus on the deployment and promotion of the company's ICP, for which the infrastructure has substantially completed by the end of 2022. It plans for seamless integration with third party service platforms to boost RaaS revenue, especially the integration of its advertising platform, property management platform and travel agency service platform; and the company also plans to expand the advertisement features and the mobile app to more regions that it is operating in; and Incorporating AI technology into RaaS businesses to help improve efficiency, and enhance customer experiences. By optimizing scheduling, predicting maintenance needs, remotely monitoring solutions, providing customized reporting, and offering virtual assistance, RaaS businesses can improve customer satisfaction and retention, ultimately leading to business growth. Customers The deployment of the company's robots (free trial, service fee basis and sales) is primarily at hospitals, educational institutions, entertainment venues, government buildings, and shopping malls in Thailand, Hong Kong, Singapore, Malaysia, Macau, and other markets across Asia. Information Security Business In 2023, the company plans to undertake the following activities to promote its Information Security business: Work with customers to extend testing services within their organizations and to their customers; and Enroll additional professionals to serve more customers while it is expanding the market. Customers The company's customers in the Information Security business are primarily within the financial, logistics, retail, hospitality, and corporate services segments. The company's business managers are in constant contact with customers to ensure that all service requests are delivered on a timely basis. The majority of service requests are based on annual penetration test requirements by the customers. General Security Solutions In 2023, the company works on ensuring the renewal of its existing customers and track the implementation of pilot projects to achieve its underlying business metrics. In addition, the company is planning to promote its business with the following activities: Develop new retail chain customers include promoting big data anti-fraud software projects among existing customers; and refine and upgrade retail security engineering business to increase its revenue per store, with a focus on promoting smart customer flow and smart big screens. Research and Development The company incurred $99,947 research and development expense during the year ended December 31, 2022, for upgrading the features of its robots in China. Government Regulation GF Cash (CIT) operates its business to provide security for the properties of its customers. Thus, it is regulated under, and is required to comply with, the SGBA, which is overseen and controlled by the Minister of Finance and the Metropolitan Police Commissioner. As certain GF Cash (CIT) employees are required to carry loaded firearms for use in the performance of their services to certain customers, GF Cash (CIT) is required to obtain a license to possess firearms and ammunition and to comply with the Firearms, Ammunition, Explosives, Fireworks, and the Equivalent of Firearms Act B.E. 2490, which is controlled by the Prime Minister and the Minister of Interior in consultation with the Minister of Defense according to Section 6 of the Firearms, Ammunition, Explosives, Fireworks, and the Equivalent of Firearms Act B.E.2490. Additionally, under the SGBA, GF Cash (CIT) is required to obtain a license to operate its security guard business. The company has two defined benefit plans based under the requirements of the Thailand Labor Protection Act B.E.2541 (1988) to provide retirement benefits to employees based on pensionable remuneration and length of service, which are considered as unfunded. History Guardforce AI Co., Limited was founded in 2018. The company was incorporated in 2018 in the Cayman Islands.