Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document And Entity Information | |
Entity Registrant Name | Guardforce AI Co., Ltd |
Entity Central Index Key | 0001804469 |
Document Type | 20FR12G |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2018 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Document Annual Report | false |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Common Stock, Shares Outstanding | 0 |
Entity Incorporation State Country Code | KY |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | |||
Cash and cash equivalents | $ 2,859,332 | $ 4,432,335 | $ 3,269,866 |
Restricted cash | 9,905 | 153,931 | |
Accounts receivable, net | 5,496,378 | 5,912,970 | 5,798,374 |
Other receivable | 144,592 | 104,132 | 109,897 |
Other current assets | 1,628,460 | 1,620,303 | 1,589,303 |
Total current assets | 10,128,762 | 12,079,645 | 10,921,371 |
Restricted cash | 1,413,434 | 1,019,325 | 814,641 |
Long-term loans to related party | 310,567 | 303,246 | |
Right-of-use assets | 6,121,542 | ||
Fixed assets, net | 10,247,784 | 10,175,962 | 9,467,481 |
Intangible assets, net | 244,634 | 229,340 | 166,752 |
Withholding taxes receivable | 6,199,382 | 5,405,006 | 4,490,956 |
Deferred tax assets, net | 1,009,235 | 980,519 | 1,095,195 |
Other non-current assets | 337,161 | 303,320 | 308,307 |
Total assets | 36,012,501 | 30,496,363 | 27,264,703 |
Current liabilities: | |||
Trade and other payables | 3,578,944 | 3,887,915 | 1,940,690 |
Short-term borrowings from financial institutions | 695,090 | 1,007,787 | 661,964 |
Short-term borrowings from related party | 12,386,433 | ||
Short-term borrowings from third party | 13,931,717 | 13,730,531 | |
Lease liabilities | 2,513,758 | ||
Current portion finance lease liabilities, net | 332,957 | 974,211 | 1,351,327 |
Other current liabilities | 1,577,578 | 1,630,077 | 1,325,250 |
Total current liabilities | 22,630,044 | 21,230,521 | 17,665,664 |
Long-term borrowings from financial institutions | 333,457 | 465,379 | 661,964 |
Lease liabilities, non-current | 3,607,784 | ||
Finance lease liabilities, net | 2,126,122 | 2,008,614 | 1,716,597 |
Provision for employee benefits | 6,136,894 | 5,619,337 | 5,229,340 |
Total liabilities | 34,834,301 | 29,323,851 | 25,273,565 |
Commitments and Contingencies | |||
Shareholders' equity | |||
Common stock – par value $0.001 authorized 50,000,000 shares, deemed issued and outstanding 50,000,000 shares | 50,000 | 50,000 | 50,000 |
Subscription receivable | (50,000) | (50,000) | (50,000) |
Additional paid in capital | 2,360,204 | 2,360,204 | 3,360,204 |
Legal reserve | 223,500 | 223,500 | 223,500 |
(Deficit) | (1,916,263) | (1,680,322) | (1,853,243) |
Accumulated other comprehensive income | 448,904 | 209,278 | 203,933 |
Total equity attributable to equity holders of the Company | 1,116,345 | 1,112,660 | 1,934,394 |
Total equity attributable to non-controlling interests | 61,855 | 59,852 | 56,744 |
Total shareholders' equity | 1,178,200 | 1,172,512 | 1,991,138 |
Total liabilities and shareholders' equity | $ 36,012,501 | $ 30,496,363 | $ 27,264,703 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of financial position [abstract] | |||
Common stock, par value (in dollar per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 |
Common stock, shares issued | 50,000,000 | 50,000,000 | 50,000,000 |
Common stock, shares outstanding | 50,000,000 | 50,000,000 | 50,000,000 |
Consolidated Statements of Prof
Consolidated Statements of Profit or Loss - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Profit or loss [abstract] | ||||
Revenue | $ 18,625,807 | $ 18,949,508 | $ 37,344,305 | $ 34,475,126 |
Cost of revenue | (15,791,848) | (15,009,671) | (31,502,466) | (29,634,859) |
Gross margin | 2,833,959 | 3,939,837 | 5,841,839 | 4,840,267 |
Administrative expenses | (3,423,235) | (2,870,240) | (4,511,849) | (3,407,313) |
(Loss) profit from operations | (589,276) | 1,069,597 | 1,329,990 | 1,432,954 |
Other income (expenses) | 159,630 | (83,774) | 72,051 | 20,924 |
Foreign exchange (loss)/gain, net | 474,701 | 3,713 | (335,829) | 491,727 |
Finance costs | (251,127) | (224,753) | (770,230) | (621,971) |
(Loss) profit before income tax | (206,072) | 764,783 | 295,982 | 1,323,634 |
Provision for income taxes (expense)/benefit | (27,866) | (293,302) | (119,953) | (173,060) |
Net (loss) profit for the period | (233,938) | 471,481 | 176,029 | 1,150,574 |
Less: net income attributable to non-controlling interests | (2,003) | (4,133) | (3,108) | (10,086) |
Net profit attributable to equity holders of the Company | $ (235,941) | $ 467,348 | $ 172,921 | $ 1,140,488 |
Earnings (loss) per share | ||||
Basic and diluted (loss) profit for the period attributable to ordinary equity holders of the Company | $ (0.001) | $ 0.001 | $ 0 | $ 0.02 |
Weighted average number of shares used in computation: | ||||
Basic and diluted | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Profit or loss [abstract] | ||||
Net profit for the year | $ (233,938) | $ 471,481 | $ 176,029 | $ 1,150,574 |
Currency translation differences | 239,626 | (110,859) | 5,345 | 211,069 |
Total comprehensive income for the year | 5,688 | 360,622 | 181,374 | 1,361,643 |
Attributable to: | ||||
Equity holders of the Company | 5,635 | 357,256 | 178,266 | 1,351,557 |
Non-controlling interests | 53 | 3,366 | 3,108 | 10,086 |
Comprehensive income | $ 5,688 | $ 360,622 | $ 181,374 | $ 1,361,643 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Issued Capital | Subscription Receivable | Addition Paid-in Capital | Legal Reserve | Accumulated Other Comprehensive Income (Loss) | Deficit | Non-controlling Interests | Total | ||
Balance at Dec. 31, 2016 | $ 50,000 | $ (50,000) | $ 7,364,778 | $ 223,500 | $ (7,136) | $ (2,993,731) | $ 46,658 | $ 4,634,069 | ||
Balance, shares at Dec. 31, 2016 | [1] | 50,000,000 | ||||||||
Statement Line Items [Line Items] | ||||||||||
Currency translation adjustments | 211,069 | 211,069 | ||||||||
Capital distribution | (4,004,574) | (4,004,574) | ||||||||
Net (loss) income | 1,140,488 | 10,086 | 1,150,574 | |||||||
Balance at Dec. 31, 2017 | $ 50,000 | (50,000) | 3,360,204 | 223,500 | 203,933 | (1,853,243) | 56,744 | $ 1,991,138 | ||
Balance, shares at Dec. 31, 2017 | 50,000,000 | [1] | 50,000,000 | |||||||
Statement Line Items [Line Items] | ||||||||||
Currency translation adjustments | (110,859) | $ (110,859) | ||||||||
Net (loss) income | 467,348 | 4,133 | 471,481 | |||||||
Balance at Jun. 30, 2018 | $ 50,000 | (50,000) | 3,360,204 | 223,500 | 93,074 | (1,385,895) | 60,877 | 2,351,760 | ||
Balance, shares at Jun. 30, 2018 | 50,000,000 | |||||||||
Balance at Dec. 31, 2017 | $ 50,000 | (50,000) | 3,360,204 | 223,500 | 203,933 | (1,853,243) | 56,744 | $ 1,991,138 | ||
Balance, shares at Dec. 31, 2017 | 50,000,000 | [1] | 50,000,000 | |||||||
Statement Line Items [Line Items] | ||||||||||
Currency translation adjustments | 5,345 | $ 5,345 | ||||||||
Capital distribution | (1,000,000) | (1,000,000) | ||||||||
Net (loss) income | 172,921 | 3,108 | 176,029 | |||||||
Balance at Dec. 31, 2018 | $ 50,000 | (50,000) | 2,360,204 | 223,500 | 209,278 | (1,680,322) | 59,852 | $ 1,172,512 | ||
Balance, shares at Dec. 31, 2018 | 50,000,000 | [1] | 50,000,000 | |||||||
Statement Line Items [Line Items] | ||||||||||
Currency translation adjustments | 239,626 | $ 239,626 | ||||||||
Net (loss) income | (235,941) | 2,003 | (233,938) | |||||||
Balance at Jun. 30, 2019 | $ 50,000 | $ (50,000) | $ 2,360,204 | $ 223,500 | $ 448,904 | $ (1,916,263) | $ 61,855 | $ 1,178,200 | ||
Balance, shares at Jun. 30, 2019 | 50,000,000 | [1] | 50,000,000 | |||||||
[1] | The shares are presented on a retroactive basis to reflect the nominal share issuance. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities | ||||
Net (loss) profit | $ (233,938) | $ 471,481 | $ 176,029 | $ 1,150,574 |
Adjustments to reconcile to net profit to net cash used in operating activities | ||||
Depreciation | 2,769,881 | 1,241,734 | 2,446,734 | 2,248,992 |
Amortization of intangible assets | 20,164 | 21,105 | 39,061 | 39,179 |
Interest income | (71,870) | (20,924) | ||
Interest received | 65,922 | 20,924 | ||
Interest expense | 188,183 | 770,230 | 621,971 | |
Interest paid | (350,938) | (240,350) | ||
Deferred tax | 27,866 | 288,646 | 119,953 | 173,060 |
Administration expenses - assumed | 575,923 | |||
Bad debt expense | 20,455 | 38,160 | 20,901 | 380 |
Loss (gain) on fixed asset disposal | 59,174 | (10,408) | ||
Changes in operating assets and liabilities: | ||||
Accounts and other receivables, net | 691,525 | (291,996) | (106,724) | (704,819) |
Other current assets | 84,710 | (948,857) | (24,823) | 166,681 |
Other non-current assets | (15,740) | (749,176) | 6,269 | (19,549) |
Trade and other payables | (283,198) | 618,416 | 1,938,770 | (262,808) |
Other current liabilities | (144,579) | 531,060 | 301,769 | (190,791) |
Withholding tax receivable | (467,415) | (446,021) | (902,796) | (829,383) |
Provision for employee benefits | 184,625 | 181,428 | 371,834 | 1,006,330 |
Net cash provided by operating activities | 2,842,539 | 955,980 | 5,435,418 | 3,149,059 |
Investing activities | ||||
Purchase of property and equipment | (1,110,315) | (996,502) | (1,844,177) | (1,666,032) |
Proceeds from disposal of property and equipment | 1,911 | 925 | 19,537 | 29,706 |
Purchase of intangible assets | (22,000) | 52,233 | (101,446) | (98,311) |
Loans to related parties | (224,106) | (293,404) | ||
Net cash (used in) investing activities | (1,130,404) | (1,167,450) | (2,219,490) | (1,734,637) |
Financing activities | ||||
Proceeds from borrowings | 12,936,058 | 956,554 | 1,282,283 | |
Repayment of borrowings | (1,127,666) | (12,731,364) | (811,535) | |
Lease payments | (1,832,356) | (328,439) | ||
Principal finance lease payments | (1,454,992) | (1,613,380) | ||
Capital distribution | (1,000,000) | (4,004,574) | ||
Net cash (used in) provided by financing activities | (2,960,022) | (123,745) | (2,309,973) | (4,335,671) |
Effect of exchange rate changes on cash | 59,088 | 77,837 | 317,172 | (853,008) |
Net increase (decrease) in cash and cash equivalents, and restricted cash | (1,188,799) | (257,378) | 1,223,127 | (3,774,257) |
Cash and cash equivalents, and restricted cash at beginning of year | 5,461,565 | 4,238,438 | 4,238,438 | 8,012,695 |
Cash and cash equivalents, and restricted cash at end of year | 4,272,766 | 3,981,060 | 5,461,565 | 4,238,438 |
Leasehold improvements through finance leases | 1,356,884 | 1,239,203 | ||
Related party loan replaced by third party loan | $ 13,056,120 | |||
Increase of lease liability and right of use assets | $ 6,121,542 |
Nature of Operations
Nature of Operations | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Nature of Operations [Abstract] | ||
NATURE OF OPERATIONS | 1. NATURE OF OPERATIONS Guardforce AI Co., Limited ( " " registered office is 96 Vibhavadi Rangsit Road, Talad Bangkhen, Laksi, Bangkok 10210, Thailand. Guardforce is controlled by Guardforce AI Technology Limited. ("AI Technology") Guardforce AI Holding Limited ( " " Guardforce AI Robots Limited ( " " Guardforce AI (Hong Kong) Co., Limited ( " " Southern Ambition Limited ( " " Horizon Dragon Limited ( " " Guardforce AI Group Co., Limited ( " " Guardforce Cash Solutions Security Thailand Co., Limited ( " " 97% of shares in GF Cash (CIT) are owned by AI Thailand and Southern Ambition, which were previously held by Guardforce TH Group Co., Ltd and Guardforce 3 Limited, with the same majority shareholder. The reorganization of Guardforce and its subsidiaries (collectively referred to as the "Company) was completed on 31 December 2018. Pursuant to the reorganization, Guardforce became the holding company of the companies, which were under the common control of the controlling shareholder before and after the reorganization. Accordingly, the Company's financial statements have been prepared on a consolidated basis by applying the predecessor value as if the reorganization had been completed at the beginning of the earliest reporting period. The Company engages principally in providing cash management and handling services located in Thailand. The following diagram illustrates the Company's legal entity ownership structure as at 30 June 2019: | 1. NATURE OF OPERATIONS Guardforce AI Co., Limited ( " " registered office is 96 Vibhavadi Rangsit Road, Talad Bangkhen, Laksi, Bangkok 10210, Thailand Guardforce is controlled by Guardforce AI Technology Limited. ("AI Technology") Guardforce AI Holding Limited ( " " Guardforce AI Robots Limited ( " " Guardforce AI (Hong Kong) Co., Limited ( " " Southern Ambition Limited ( " " Horizon Dragon Limited ( " " Guardforce AI Group Co., Limited ( " " Guardforce Cash Solutions Security Thailand Co., Limited ( " " 97% of shares in GF Cash (CIT) are owned by AI Thailand and Southern Ambition, which were previously held by Guardforce TH Group Co., Ltd and Guardforce 3 Limited, with the same majority shareholder. The reorganization of Guardforce and its subsidiaries (collectively referred to as the "Company) was completed on 31 December 2018. Pursuant to the reorganization, Guardforce became the holding company of the companies, which were under the common control of the controlling shareholder before and after the reorganization. Accordingly, the Company's financial statements have been prepared on a consolidated basis by applying the predecessor value method as if the reorganization had been completed at the beginning of the earliest reporting period. The Company engages principally in providing cash management and handling services located in Thailand. The following diagram illustrates the Company's legal entity ownership structure as of 31 December 2018: |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Significant Accounting Policies [Abstract] | ||
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES The accounting policies applied are consistent with those of the audited consolidated financial statements for the years ended 31 December 2018 and 2017, as described in those audited consolidated financial statements, except for the adoption of new and amended International Financial Reporting Standards ("IFRS") effective for the year ended 31 December 2019 which are relevant to the preparation of the unaudited interim condensed consolidated financial statements. The financial statements were approved by the board of directors and authorized for issuance on 19 March 2020. 2.1 Basis of presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard ("IAS") 34, "Interim Financial Reporting". These statements should be read in conjunction with the audited consolidated financial statements for the years ended 31 December 2018 and 2017, which have been prepared in accordance with IFRS. The unaudited interim condensed consolidated financial statements have been prepared on a historical cost basis. All amounts are presented in United States dollars ("US $" or "USD") and have been rounded to the nearest US $. 2.2 Basis of consolidation Pursuant to the reorganization, Guardforce became the holding company of the companies, which were under the common control of the controlling shareholder before and after the reorganization. Accordingly, the Company's financial statements have been prepared on a consolidated basis by applying the method as if the reorganization had been completed at the beginning of the earliest reporting period. The consolidated statements of profit or loss and other comprehensive income, statements of changes in shareholders' equity and statements of cash flows of the Company for the relevant periods include the results and cash flows of all companies now comprising the Company from the earliest date presented or since the date when the subsidiaries and/or businesses first came under the control of the controlling shareholder, whichever is shorter. The unaudited interim condensed consolidated statements of financial position of the Company as at 30 June 2019 have been prepared to present the assets and liabilities of the subsidiaries using the existing book values from the controlling shareholder's perspective. No adjustments are made to reflect fair values, or to recognize any new assets or liabilities as a result of the reorganization. Equity interests in subsidiaries held by parties other than the controlling shareholders are presented as non-controlling interests in shareholder equity. All intra-group and inter-company transactions and balances have been eliminated on consolidation. 2.3 Business combinations under common control IFRS 3 (2008) Business combination does not include specific measurement guidance for transfers of businesses or subsidiaries between entities under common control. Accordingly, the Company has accounted for such transactions taking into consideration other guidance in the IFRS framework and pronouncements of other standard-setting bodies. The Company recorded assets and liabilities recognized as a result of transactions between entities under common control at the carrying value on the transferor's financial statements, and to have the Consolidated Statements of Financial Position, Consolidated Statements of Profits or Loss, Consolidated Statements of Comprehensive Income and Statements of Cash Flows reflect the results of combining entities for all periods presented for which the entities were under the transferor's common control, irrespective of when the combination takes place. 2.4 Non-controlling interest The non-controlling interest represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity on the consolidated statements of financial position, profit or loss and other comprehensive income attributed to controlling and non-controlling interests. 2.5 Foreign currency translation The reporting currency of the Company is the U.S. dollar ("US $" or "USD"). The functional currency of Guardforce, AI Holdings, AI Robots, Horizon Dragon, Southern Ambition, is the USD. The functional currency of AI Hong Kong is the Hong Kong dollar. The functional currency of AI Thailand and GF Cash (CIT) are the Thai Baht ("Baht" or "THB"). For the subsidiaries whose functional currency is the Baht and Hong Kong dollar, profit or loss and cash flows are translated at the average exchange rates during the reporting periods, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the statements of financial position. Translation adjustments resulting from the process of translating the local currency financial statements into USD are included in comprehensive income. Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the statement of financial position's date with any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in profit or loss as incurred. The currency exchange rates that impact our business are shown in the following table: Period End Rate Average Rate 30 June 31 December For the Six Months Ended 30 June 2019 2018 2019 2018 Thai Baht 0.0325 0.0307 0.0318 0.0314 Hong Kong Dollar 0.1280 0.1280 0.1280 0.1280 2.6 Use of estimates The preparation of consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing the unaudited interim condensed consolidated financial statements, the significant judgments made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2018. 2.7 Leases IFRS 16 Leases IFRS 16 has resulted in almost all leases being recognized on the statement of financial position, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognized. The only exceptions are short-term and low-value leases. The Company has adopted IFRS 16 from 1 January 2019 and has not restated the comparative financial statements for the 2018 reporting period, as permitted under the specific transitional provisions in the standard. The reclassifications and the adjustments arising from the new leasing rules are therefore recognized in the opening unaudited interim condensed consolidated statement of financial position on 1 January 2019. On adoption of IFRS 16, the Company recognized lease liabilities in relation to leases which had previously been classified as 'operating leases' under the principles of IAS 17 "Leases". These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate as of 1 January 2019. The weighted average lessee's incremental borrowing rate applied to the lease liabilities on 1 January 2019 was 3.8% As at 2019 (Unaudited) Operating lease commitments disclosed at 31 December 2018 $ 7,601,122 Discounted using lessee's incremental borrowing rate as of 1 January 2019 7,271,152 Less: short-term leases recognized on a straight-line basis as expense - Less: low value leases recognized on a straight-line basis as expense - Lease liabilities recognized as at 1 January 2019 $ 7,271,152 As at 2019 (Unaudited) The liability is classified as follows: Current lease liabilities $ 2,835,925 Non-current lease liabilities 4,435,227 $ 7,271,152 The associated right-of-use assets were measured at the amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to the lease recognized in the unaudited interim condensed consolidated statement of financial positon. The change in accounting policy affected the following items on the unaudited interim condensed consolidated statement of financial position on 1 January 2019: a. Lease liabilities increased by $ b. Right-of-use assets increased by $ Right-of-use assets mainly represent long-term office, equipment and vehicle rental leases entered into by the Company. 2.8 Financial risk management 2.8.1 Financial risk factors The Company's activities expose it to a variety of financial risks: currency risk, credit risk and liquidity risk. The unaudited interim condensed consolidated financial statements do not include all financial risk management information and disclosures required in the audited financial statements, and should be read in conjunction with the Company's audited consolidated financial statements as at 31 December 2018 and 2017. There have been no changes in the risk management policies since the 2018 financial year end. 2.8.2 Liquidity risk As a result of adoption of IFRS 16, the Company recognized lease liabilities of $6,121,542 as at 30 June 2019 with respect to its operating leases. The table below analyses the Company's lease liabilities into the relevant maturity grouping based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. As at 2019 (Unaudited) Less than 1 year $ 2,513,758 More than 1 year 3,607,784 $ 6,121,542 2.8.3 Capital risk management The Company's objectives on managing capital are to safeguard the Company's ability to continue as a going concern and support the sustainable growth of the Company in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to enhance shareholders' value in the long term. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. In the opinion of the directors of the Company, the Company's capital risk is low. 2.9 Revenue from contracts with customers Effective 1 January 2018, the Company began recognizing revenue under IFRS 15, IFRS 15 The steps of the new revenue recognition process are as follows: Step 1: Identify the contract with the customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize the allocated revenue as the company satisfies each performance obligation 2.10 Cost of Revenue Cost of revenue consists primarily of internal labor cost and related benefits, and other overhead costs that are directly attributable to services provided. 2.11 Recent Accounting Pronouncements The following new standards and amendments to standards have been issued but are not effective for the financial year beginning 1 January 2020 and have not been early adopted by the Company: Effective for annual IFRS 3 Definition of business 1 January 2020 Amendment to IAS 1 and IAS 8 Definition of Material 1 January 2020 Conceptual Framework for Financial Reporting 2018 Revised Conceptual Framework for Financial Reporting 1 January 2020 IFRS 17 Insurance contracts 1 January 2020 Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture To be determined The directors of the Company are in the process of assessing the financial impact of the adoption of the above new standards and amendments to standards. The directors of the Company will adopt the new standards and amendments to standards when they become effective. | 5 years Total
Trade and other payables $ 3,887,915 $ - $ - $ 3,887,915
Borrowings from financial institutions 1,068,299 481,529 - 1,549,828
Borrowings from third party 13,730,531 - - 13,730,531
Other current liabilities 1,630,077 - - 1,630,077
Finance lease liabilities 1,102,209 2,205,045 - 3,307,254
Provision for employee benefits 554,241 1,618,757 39,761,537 41,934,535
$ 21,973,272 $ 4,305,331 $ 39,761,537 $ 66,040,140
Year ended 31 December 2017 Within 1 year 1 to 5 years >5 years Total
Trade and other payables $ 1,940,690 $ - $ - $ 1,940,690
Borrowings from financial institutions 720,050 683,506 - 1,403,556
Borrowing from related party 12,386,433 - - 12,386,433
Other current liabilities 1,325,250 - - 1,325,250
Finance lease liabilities 1,491,097 1,860,108 3,351,205
Provision for employee benefits 142,183 1,279,112 40,623,295 42,044,590
$ 18,005,703 $ 3,822,726 $ 40,623,295 $ 62,451,724
2.7.2 Capital risk management The Company's objectives
on managing capital are to safeguard the Company's ability to continue as a going concern and support the sustainable growth
of the Company in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital
structure to enhance shareholders' value in the long term. In order to maintain or adjust
the capital structure, the Company may adjust the amount of dividends paid to shareholders, return of capital to shareholders,
issue new shares or sell assets to reduce debt. In the opinion of the directors
of the Company, the Company's capital risk is low.
2.8 Fair value measurements Fair value is the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. When determining the fair value measurement for assets and liabilities required or permitted to be recorded at
fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions
that market participants would use when pricing the asset or liability. Accounting guidance establishes
a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs
when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest
level input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may
be used to measure fair value: Level 1—Observable
inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Include other
inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable
inputs which are supported by little or no market activity. Accounting guidance also describes
three main approaches to measuring the fair value of assets and liabilities: the (1) market approach, (2) income approach
and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving
identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single
present value amount. The measurement is based on the value indicated by current market expectations about those future amounts.
The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities
of the Company mainly consist of cash and cash equivalents, restricted cash, trade and other receivables, amounts due from related
parties, and other current assets, trade payables, amounts due to related parties, accruals and other liabilities. As of 31 December
2018 and 2017, except for short term investments, the carrying values of cash and cash equivalents, restricted cash, trade receivables,
amounts due from related parties, prepayments and other current assets, trade payables, amounts due to related parties, accruals
and other liabilities approximate to their fair values due to the short-term maturity of these instruments.
2.9 Cash and cash equivalents Cash and cash equivalents include
highly liquid investments with original maturities of three months or less.
2.10 Accounts receivable and other receivables, net Accounts and other receivables
are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed.
The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's
existing accounts and other receivables and due from related parties. The Company determines the allowance based on aging data,
historical collection experience, customer specific facts and economic conditions. Account balances are charged off against the
allowance after all means of collection have been exhausted and the potential for recovery is considered remote.
2.11 Loan to related parties The Company recognizes the contractual
right to receive money on demand or on fixed or determinable dates as loans receivable. For those that the contractual maturity
date is less than one year, the Company records as short-term loans receivable. The Company recognizes interest
income on an accrual basis using the straight-line method over the fixed or determinable dates.
2.12 Fixed assets Fixed assets are stated at cost
less accumulated depreciation. Cost represents the purchase price of the asset and other costs incurred to bring the asset into
its existing use. Maintenance, repairs and betterments, including replacement of minor items, are charged to expense; major additions
to physical properties are capitalized. Depreciation is calculated using
the straight-line method over the following estimated useful lives.
Estimated
useful life
Leasehold improvements Lesser of useful life or remaining lease term
Tools and equipment 5 years
Furniture, fixtures and office equipment 5 years
Vehicles 5,10 years
2.13 Construction in progress Construction in progress is stated
at cost less impairment losses, if any. Cost comprises direct costs of construction as well as interest expense and exchange differences
capitalized during the periods of construction and installation. Capitalization of these costs ceases and the construction in progress
is transferred to property, plant and equipment when substantially all the activities necessary to prepare the assets for their
intended use are completed. No depreciation is provided for in respect of construction in progress until it is completed and ready
for its intended use.
2.14 Assets acquired under finance leases Where the Company acquires the
use of assets under finance leases, the amounts representing the fair value of the leased asset, or, if lower, the present value
of the minimum lease payments of such assets is included in property, plant and equipment and the corresponding liabilities, net
of finance charges, are recorded as obligations under finance leases. Depreciation is provided for at rates, which write off the
cost of the assets over the term of the relevant lease or, where it is likely the Company will obtain ownership of the asset, the
useful life of the asset. Impairment losses are accounted for in accordance with the accounting policy. Finance charges implicit
in the lease payments are charged to profit or loss over the period of the leases so as to produce an approximately constant periodic
rate of charge on the remaining balance of the obligations for each accounting period. Contingent rentals are charged to profit
or loss in the accounting period in which they are incurred.
2.15 Intangible assets, net Intangible assets represent computer
software. The intangible assets are recorded at historic acquisition costs, and amortized on a straight-line basis over their estimated
useful lives. Costs associated with maintaining
computer software programs are recognized as an expense as incurred. Development costs that are directly attributable to the design
and testing of identifiable and unique software products controlled by the Company will be recognized as intangible assets when
the criteria of intangible assets are met. Intangible assets are not amortized
where their useful lives are assessed to be indefinite. The useful life of an intangible asset that is not being amortized is reviewed
annually to determine whether events and circumstances continue to support the indefinite useful life assessment for that asset.
Otherwise, the change in useful life assessment from indefinite to finite is accounted for prospectively from the date of change
and in accordance with the policy for amortization of intangible assets with finite lives as set out above.
2.16 Impairment of long-lived assets Long-lived assets are evaluated
for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will
impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful
life is shorter than the Company had originally estimated. When these events occur, the Company evaluates the impairment for the
long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be
generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows
is less than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value
of the assets over the fair value of the assets.
2.17 Trade and other payables Trade and other payables are
recognized at fair value.
2.18 Interest-bearing borrowings Interest-bearing borrowings are
recognized initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings
are stated at amortized cost with any difference between the amount initially recognized and redemption value being recognized
in profit or loss over the period of the borrowings, together with any interest and fees payable, using the effective interest
method.
2.19 Revenue from contracts with customers Effective 1 January 2018, the
Company began recognizing revenue under IFRS 15, using the modified retrospective transition method. The adoption of
IFRS 15 had no material impact on the Company's consolidated financial statements, and there was no adjustment to the
deficit on 1 January 2018. The core principle of this new revenue standard is that a company should recognize revenue to depict
the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects
to be entitled in exchange for those goods or services.
Step 1: Identify the contract with the customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when the company satisfies a performance obligation Revenue from the provision of
services, which includes cash in-transit-dedicated vehicles, cash in-transit--non dedicated vehicles, ATM management and other
services are recognized at a point in time when the services have been rendered to customers. Revenue from provision of cash in-
transit -non dedicated and vehicles and ATM management is recognized at a point in time upon provision of such services for which
the service period is usually per trip. Interest income is recognized using the effective interest method. The Company will only apply the
five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for
the goods it transfers to the customer. The Company does not offer promotional payments, customer coupons, rebates or other cash
redemption offers to its customers.
2.20 Cost of Revenue Cost of
revenue consists primarily of internal labor cost and related benefits, and other overhead costs that are directly attributable
to services provided
2.21 Income tax Current income taxes are provided
on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or
deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes
are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences
of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement
carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed
to that asset or liability for tax purposes. The effect on deferred taxes of a change in tax rates is recognized in the consolidated
statements of profit or loss in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets
if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. The Company offsets deferred
tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current
tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority
on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets
on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant
amounts of deferred tax liabilities or assets are expected to be settled or recovered.
2.22 Provisions Provisions are recognized for
liabilities of uncertain timing or amount when the Company has a legal or constructive obligation arising as a result of a past
event, it is probable that an outflow of economic benefits will be required to settle the obligation and the amount can be estimated
reliably. Where the time value of money is material, provisions are stated at the present value of the expenditures expected to
settle the obligation. Where it is probable that an
outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent
liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be
confirmed by the occurrence or non-occurrence of one or more future events, are also disclosed as contingent liabilities unless
the probability of outflow of economic benefits is remote.
2.23 Employee benefits The Company provides for retirement
benefits payable for the employees of the subsidiaries in Thailand under the Thai Labor Law depending on the salary and years of
service of the respective employees. The obligation is calculated by an independent actuary using the projected unit credit method.
The present value of the obligation is determined by discounting with the interest rates of government bonds that are denominated
in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related liabilities.
The sensitivity analysis is determined by i) discount rate; ii) salary increase rate; iii) turnover rate; and iv) life expectancy. Actuarial gains and losses arising
from experience adjustments and changes in actuarial assumptions are charged or credited to the statement of profit or loss in
the period in which they arise.
2.24 Operating Leases Leases where substantially all
the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Payments made
under operating leases are charged to the consolidated statements of profit or loss and comprehensive income (loss) on a straight-line
basis over the lease period.
2.25 Related parties Parties are considered to be
related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over
the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common
control or significant influence, such as a family member or relative, shareholder, or a related corporation.
2.26 Earnings per share ("EPS") Basic EPS is calculated by dividing
the net income (loss) available to common shareholders by the weighted average number of ordinary shares outstanding during the
year. Diluted EPS is calculated by using the weighted average number of ordinary shares outstanding adjusted to include the potentially
dilutive effect of outstanding share-based awards and convertible debt instruments, unless their inclusion in the calculation is
anti-dilutive.
2.27 Recent Accounting Pronouncements The Company has applied IFRS 15,
and IFRS 9 since 1 January 2018. Several other amendments and interpretations apply for the first time in 2018, but do not
have an impact on the consolidated financial statements of the Company. The Company has not early adopted any standards, interpretations
or amendments that have been issued but are not yet effective. IFRS 15 Revenue from Contracts
with Customers supersedes IAS 11 Construction Contracts, IAS 18 Revenue and related Interpretations and it applies, with limited
exceptions, to all revenue arising from contracts with customers. IFRS 15 establishes a five-step model to account for revenue
arising from contracts with customers and requires that revenue be recognized at an amount that reflects the consideration to which
an entity expects to be entitled in exchange for transferring services or goods to a customer. IFRS 15 requires entities
to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model
to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract
and the costs directly related to fulfilling a contract. In addition, the standard requires extensive disclosures. The new standard
and amendments were adopted as of 1 January 2018 and did not have a significant effect on the consolidated financial information
of the Company. IFRS 9 Financial Instruments
replaces IAS 39 Financial Instruments: Recognition and Measurement for annual periods beginning on or after January 1,
2018, bringing together all three aspects of the accounting for financial instruments: classification and measurement; impairment:
and hedge accounting. The new standard and amendments were adopted as of 1 January 2018 and did not have a significant effect on
the consolidated financial information of the Company." id="sjs-C4">2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies used in the preparation of these consolidated financial statements. The financial statements were approved by the board of directors and authorized for issuance on 27 February 2020. 2.1 Basis of presentation The consolidated financial statements of Guardforce and subsidiaries have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). All amounts are presented in United States dollars ("USD") and have been rounded to the nearest USD. 2.2 Basis of consolidation Pursuant to the reorganization, Guardforce became the holding company of the companies, which were under the common control of the controlling shareholders before and after the reorganization. Accordingly, the Company's financial statements have been prepared on a consolidated basis by applying the predecessor value method as if the reorganization had been completed at the beginning of the earliest reporting period. The consolidated statements of profit or loss and other comprehensive income, statements of changes in shareholders' equity and statements of cash flows of the Company for the relevant periods include the results and cash flows of all companies now comprising the Company from the earliest date presented or since the date when the subsidiaries and/or businesses first came under the common control of the controlling shareholders, wherever the period is shorter. The consolidated statements of financial position of the Company as at 31 December 2018 and 2017 have been prepared to present the assets and liabilities of the subsidiaries using the existing book values from the controlling shareholders' perspective. No adjustments are made to reflect fair values, or to recognize any new assets or liabilities as a result of the reorganization. Equity interests in subsidiaries held by parties other than the controlling shareholders are presented as non-controlling interests in shareholders' equity. All intra-group and inter-company transactions and balances have been eliminated on consolidation. 2.3 Business combinations under common control IFRS 3 (2008) Business combination does not include specific measurement guidance for transfers of businesses or subsidiaries between entities under common control. Accordingly, the Company has accounted for such transactions taking into consideration other guidance in IFRS framework and pronouncements of other standard-setting bodies. The Company recorded assets and liabilities recognized as a result of transactions between entities under common control at the carrying value on the transferor's financial statements, and to have the Consolidated Statements of Financial Position, Consolidated Statements of Profits or Loss, Consolidated Statements of Comprehensive Income and Statements of Cash Flows reflect the results of combining entities for all periods presented for which the entities were under the transferor's common control, irrespective of when the combination takes place. 2.4 Non-controlling interest The non-controlling interest represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity on the consolidated statements of financial position, profit or loss and other comprehensive income attributed to controlling and non-controlling interests. 2.5 Use of estimates The preparation of the consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. Significant estimates during the years ended 31 December 2018 and 2017 include the allowance for doubtful accounts, the useful life of property and equipment, and valuation of deferred tax assets. 2.6 Foreign currency translation The reporting currency of the Company is the U.S. dollar ("USD"). The functional currency of Guardforce, AI Holdings, AI Robots, Horizon Dragon, Southern Ambition, is the USD. The functional currency of AI Hong Kong is Hong Kong dollar. The functional currency of AI Thailand and GF Cash (CIT) are Thai Baht ("Baht" or "THB"). For the subsidiaries whose functional currency is the Baht and Hong Kong dollar, profit or loss and cash flows are translated at the average exchange rates during the reporting periods, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the statements of financial position. Translation adjustments resulting from the process of translating the local currency financial statements into USD are included in comprehensive income/loss. Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the statement of financial position's date with any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in profit or loss as incurred. The currency exchange rates that impact our business are shown in the following table: Period End Rate Average Rate As of 31 December For the Year Ended 2018 2017 2018 2017 Thai Baht 0.0307 0.0306 0.0309 0.0296 Hong Kong Dollar 0.1280 0.1280 0.1280 0.1280 2.7 Financial risk management 2.7.1 Financial risk factors The Company's activities expose it to a variety of financial risks: foreign exchange risk, interest rate risk and liquidity risk. The Company's overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company's financial performance. (i) Foreign exchange risk The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the THB and USD. Foreign exchange risk arises when future commercial transactions or recognized assets and liabilities are denominated in a currency that is not the respective functional currency of the Company's subsidiaries. The functional currency of the Company and majority of its overseas subsidiaries is the USD whereas the functional currency of the subsidiaries which operate in the Thailand is the THB. The Company currently does not hedge transactions undertaken in foreign currencies but manages its foreign exchange risk by performing regular reviews of the Company's net foreign exchange exposures. If the THB had strengthened/weakened by 1.27% against the USD (the average monthly variance during the 2-year period ended 31 December 2018) with all other variables held constant, the post-tax profit would have been approximately $169,000 higher/lower and $63,000 higher/lower, for the years ended 31 December 2018 and 2017, respectively, as a result of net foreign exchange gains/losses on translation of net monetary assets denominated in the THB/USD which is not the functional currency of the respective Company's entities. (ii) Interest rate risk The Company's exposure to changes in interest rates are mainly attributable to its borrowings and loans. At the reporting date, if interest rates on borrowings had been 100 basis points higher/lower with all other variables held constant, the Company's post-tax results for the year would have been approximately $43,000 and $105,000 lower/higher for the years ended 31 December 2018 and 2017, respectively, mainly as a result of higher/lower interest expense on floating rate borrowings. (iii) Liquidity risk Prudent liquidity management implies maintaining sufficient cash and cash equivalents and the availability of funding through an adequate amount of committed credit facilities. The Company's primary cash requirements are for operating expenses and purchases of fixed assets. The Company mainly finances its working capital requirements from cash generated from operation and proceeds from bank borrowings. The Company's policy is to regularly monitor current and expected liquidity requirements to ensure it maintains sufficient cash and cash equivalents and an adequate amount of committed credit facilities to meet its liquidity requirements in the short and long term. At the reporting date, the contractual undiscounted cash flows of the Company's current financial liabilities approximate their respective carrying amounts due to their short maturities. The table below analyses the Company's non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows, including interest if applicable. Year ended 31 December 2018 Within 1 to 5 years >5 years Total Trade and other payables $ 3,887,915 $ - $ - $ 3,887,915 Borrowings from financial institutions 1,068,299 481,529 - 1,549,828 Borrowings from third party 13,730,531 - - 13,730,531 Other current liabilities 1,630,077 - - 1,630,077 Finance lease liabilities 1,102,209 2,205,045 - 3,307,254 Provision for employee benefits 554,241 1,618,757 39,761,537 41,934,535 $ 21,973,272 $ 4,305,331 $ 39,761,537 $ 66,040,140 Year ended 31 December 2017 Within 1 year 1 to 5 years >5 years Total Trade and other payables $ 1,940,690 $ - $ - $ 1,940,690 Borrowings from financial institutions 720,050 683,506 - 1,403,556 Borrowing from related party 12,386,433 - - 12,386,433 Other current liabilities 1,325,250 - - 1,325,250 Finance lease liabilities 1,491,097 1,860,108 3,351,205 Provision for employee benefits 142,183 1,279,112 40,623,295 42,044,590 $ 18,005,703 $ 3,822,726 $ 40,623,295 $ 62,451,724 2.7.2 Capital risk management The Company's objectives on managing capital are to safeguard the Company's ability to continue as a going concern and support the sustainable growth of the Company in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to enhance shareholders' value in the long term. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return of capital to shareholders, issue new shares or sell assets to reduce debt. In the opinion of the directors of the Company, the Company's capital risk is low. 2.8 Fair value measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurement for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Include other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which are supported by little or no market activity. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: the (1) market approach, (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities of the Company mainly consist of cash and cash equivalents, restricted cash, trade and other receivables, amounts due from related parties, and other current assets, trade payables, amounts due to related parties, accruals and other liabilities. As of 31 December 2018 and 2017, except for short term investments, the carrying values of cash and cash equivalents, restricted cash, trade receivables, amounts due from related parties, prepayments and other current assets, trade payables, amounts due to related parties, accruals and other liabilities approximate to their fair values due to the short-term maturity of these instruments. 2.9 Cash and cash equivalents Cash and cash equivalents include highly liquid investments with original maturities of three months or less. 2.10 Accounts receivable and other receivables, net Accounts and other receivables are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing accounts and other receivables and due from related parties. The Company determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. 2.11 Loan to related parties The Company recognizes the contractual right to receive money on demand or on fixed or determinable dates as loans receivable. For those that the contractual maturity date is less than one year, the Company records as short-term loans receivable. The Company recognizes interest income on an accrual basis using the straight-line method over the fixed or determinable dates. 2.12 Fixed assets Fixed assets are stated at cost less accumulated depreciation. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Maintenance, repairs and betterments, including replacement of minor items, are charged to expense; major additions to physical properties are capitalized. Depreciation is calculated using the straight-line method over the following estimated useful lives. Estimated useful life Leasehold improvements Lesser of useful life or remaining lease term Tools and equipment 5 years Furniture, fixtures and office equipment 5 years Vehicles 5,10 years 2.13 Construction in progress Construction in progress is stated at cost less impairment losses, if any. Cost comprises direct costs of construction as well as interest expense and exchange differences capitalized during the periods of construction and installation. Capitalization of these costs ceases and the construction in progress is transferred to property, plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. No depreciation is provided for in respect of construction in progress until it is completed and ready for its intended use. 2.14 Assets acquired under finance leases Where the Company acquires the use of assets under finance leases, the amounts representing the fair value of the leased asset, or, if lower, the present value of the minimum lease payments of such assets is included in property, plant and equipment and the corresponding liabilities, net of finance charges, are recorded as obligations under finance leases. Depreciation is provided for at rates, which write off the cost of the assets over the term of the relevant lease or, where it is likely the Company will obtain ownership of the asset, the useful life of the asset. Impairment losses are accounted for in accordance with the accounting policy. Finance charges implicit in the lease payments are charged to profit or loss over the period of the leases so as to produce an approximately constant periodic rate of charge on the remaining balance of the obligations for each accounting period. Contingent rentals are charged to profit or loss in the accounting period in which they are incurred. 2.15 Intangible assets, net Intangible assets represent computer software. The intangible assets are recorded at historic acquisition costs, and amortized on a straight-line basis over their estimated useful lives. Costs associated with maintaining computer software programs are recognized as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Company will be recognized as intangible assets when the criteria of intangible assets are met. Intangible assets are not amortized where their useful lives are assessed to be indefinite. The useful life of an intangible asset that is not being amortized is reviewed annually to determine whether events and circumstances continue to support the indefinite useful life assessment for that asset. Otherwise, the change in useful life assessment from indefinite to finite is accounted for prospectively from the date of change and in accordance with the policy for amortization of intangible assets with finite lives as set out above. 2.16 Impairment of long-lived assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Company had originally estimated. When these events occur, the Company evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. 2.17 Trade and other payables Trade and other payables are recognized at fair value. 2.18 Interest-bearing borrowings Interest-bearing borrowings are recognized initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortized cost with any difference between the amount initially recognized and redemption value being recognized in profit or loss over the period of the borrowings, together with any interest and fees payable, using the effective interest method. 2.19 Revenue from contracts with customers Effective 1 January 2018, the Company began recognizing revenue under IFRS 15, using the modified retrospective transition method. The adoption of IFRS 15 had no material impact on the Company's consolidated financial statements, and there was no adjustment to the deficit on 1 January 2018. The core principle of this new revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Step 1: Identify the contract with the customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when the company satisfies a performance obligation Revenue from the provision of services, which includes cash in-transit-dedicated vehicles, cash in-transit--non dedicated vehicles, ATM management and other services are recognized at a point in time when the services have been rendered to customers. Revenue from provision of cash in- transit -non dedicated and vehicles and ATM management is recognized at a point in time upon provision of such services for which the service period is usually per trip. Interest income is recognized using the effective interest method. The Company will only apply the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods it transfers to the customer. The Company does not offer promotional payments, customer coupons, rebates or other cash redemption offers to its customers. 2.20 Cost of Revenue Cost of revenue consists primarily of internal labor cost and related benefits, and other overhead costs that are directly attributable to services provided 2.21 Income tax Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of profit or loss in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. The Company offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered. 2.22 Provisions Provisions are recognized for liabilities of uncertain timing or amount when the Company has a legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and the amount can be estimated reliably. Where the time value of money is material, provisions are stated at the present value of the expenditures expected to settle the obligation. Where it is probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events, are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote. 2.23 Employee benefits The Company provides for retirement benefits payable for the employees of the subsidiaries in Thailand under the Thai Labor Law depending on the salary and years of service of the respective employees. The obligation is calculated by an independent actuary using the projected unit credit method. The present value of the obligation is determined by discounting with the interest rates of government bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related liabilities. The sensitivity analysis is determined by i) discount rate; ii) salary increase rate; iii) turnover rate; and iv) life expectancy. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to the statement of profit or loss in the period in which they arise. 2.24 Operating Leases Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of profit or loss and comprehensive income (loss) on a straight-line basis over the lease period. 2.25 Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. 2.26 Earnings per share ("EPS") Basic EPS is calculated by dividing the net income (loss) available to common shareholders by the weighted average number of ordinary shares outstanding during the year. Diluted EPS is calculated by using the weighted average number of ordinary shares outstanding adjusted to include the potentially dilutive effect of outstanding share-based awards and convertible debt instruments, unless their inclusion in the calculation is anti-dilutive. 2.27 Recent Accounting Pronouncements The Company has applied IFRS 15, and IFRS 9 since 1 January 2018. Several other amendments and interpretations apply for the first time in 2018, but do not have an impact on the consolidated financial statements of the Company. The Company has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective. IFRS 15 Revenue from Contracts with Customers supersedes IAS 11 Construction Contracts, IAS 18 Revenue and related Interpretations and it applies, with limited exceptions, to all revenue arising from contracts with customers. IFRS 15 establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue be recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring services or goods to a customer. IFRS 15 requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, the standard requires extensive disclosures. The new standard and amendments were adopted as of 1 January 2018 and did not have a significant effect on the consolidated financial information of the Company. IFRS 9 Financial Instruments replaces IAS 39 Financial Instruments: Recognition and Measurement for annual periods beginning on or after January 1, 2018, bringing together all three aspects of the accounting for financial instruments: classification and measurement; impairment: and hedge accounting. The new standard and amendments were adopted as of 1 January 2018 and did not have a significant effect on the consolidated financial information of the Company. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Cash and cash equivalents [abstract] | ||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 3. CASH, CASH EQUIVALENTS AND RESTRICTED CASH As at As at 2018 (Unaudited) Cash on hand $ 582,283 $ 376,750 Cash at bank 2,277,049 4,055,585 Subtotal 2,859,332 4,432,335 Restricted cash 1,413,434 1,029,230 Cash, cash equivalents, and restricted cash $ 4,272,766 $ 5,461,565 The Company has pledged deposits with a local bank as collateral for bank guarantees issued by those banks in respect of project performance and for electricity usage. The restricted cash for projects that are expected to be completed within one year are classified as a current asset. | 3. CASH, CASH EQUIVALENTS AND RESTRICTED CASH 31 December 2018 2017 Cash on hand $ 376,750 $ 351,018 Cash at bank 4,055,585 2,918,848 Subtotal 4,432,335 3,269,866 Restricted cash 1,029,230 968,572 Cash, cash equivalents, and restricted cash $ 5,461,565 $ 4,238,438 The Company has pledged deposits with a local bank as collateral for bank guarantees issued by those banks in respect of project performance and for electricity usage. The restricted cash for projects that are expected to be completed within one year are classified as a current asset. |
Acquisition of Subsidiaries Und
Acquisition of Subsidiaries Under Common Control | 12 Months Ended |
Dec. 31, 2018 | |
Acquisition of Subsidiaries under Common Control [Abstract] | |
ACQUISITION OF SUBSIDIARIES UNDER COMMON CONTROL | 4. ACQUISITION OF SUBSIDIARIES UNDER COMMON CONTROL On 31 December 2018, Guardforce AI Holding Limited and Guardforce AI Robots Limited acquired 100% of equity interest in subsidiaries from Tu Jingyi, the controlling shareholder who owns 59% of the Company, for $1,000,000. The subsidiaries acquired were previously purchased by Tu Jingyi for $1,000,000 from companies that he was a controlling shareholder. The transaction was accounted for as an acquisition of subsidiaries under common control. Accordingly, the financial statements of the acquired subsidiaries were accounted for as if the acquisition had been consummated at the beginning of the earliest period presented in which the subsidiaries became commonly controlled, with no gain or loss recognized. The assets and liabilities and operations of the Company and the subsidiaries were combined at their historical carrying amounts, and all periods presented were adjusted as if the entities had always been combined since 1 January 2017. Amounts outstanding for loans receivable from entities not included in the reorganization of $4.4 million have been reflected as a capital distribution to the controlling shareholder when the collectability of these amounts could not be determined. Accordingly, $4,004,574 was reflected as a capital distribution in 2017. Collections, of any, in the future will be recognized on a cash basis and will be reflected as additional capital contribution when received. |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Accounts Receivable, Net [Abstract] | ||
ACCOUNTS RECEIVABLE, NET | 4. ACCOUNTS RECEIVABLE, NET As at 2019 As at 2018 (Unaudited) Accounts receivable-contracted customers $ 5,518,072 $ 5,933,584 Accounts receivable-related parties (Note 20) - 702 Allowance for doubtful accounts (21,694 ) (21,316 ) Accounts receivable, net $ 5,496,378 $ 5,912,970 | 5. ACCOUNTS RECEIVABLE, NET 31 December 2018 2017 Accounts receivable-contracted customers $ 5,933,584 $ 5,798,235 Accounts receivable-related parties (Note 19) 702 707 Allowance for doubtful accounts (21,316 ) (568 ) Accounts receivable, net $ 5,912,970 $ 5,798,374 The following table details the Accounts receivables based on the Company’s provision matrix as of 31 December 2018: Accounts receivable-days past due Current <30 31-60 61-90 91-180 Total Gross carrying amount $ 1,937,221 $ 3,855,228 $ 60,431 $ 12,425 $ 68,980 $ 5,934,285 Allowance - - - (621 ) (20,694 ) (21,315 ) Net $ 1,937,221 $ 3,855,228 $ 60,431 $ 11,804 $ 48,286 $ 5,912,970 The following table details the accounts receivables based on the Company’s provision matrix as of 31 December 2017: Accounts receivable-days past due Current <30 31-60 61-90 91-180 Total Gross carrying amount $ 2,251,060 $ 3,412,051 $ 132,345 $ 1,911 $ 1,576 $ 5,798,943 Allowance - - - (96 ) (473 ) (569 ) Net $ 2,251,060 $ 3,412,051 $ 132,345 $ 1,815 $ 1,103 $ 5,798,374 |
Other Receivables
Other Receivables | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Other Receivables [Abstract] | ||
OTHER RECEIVABLES | 5. OTHER RECEIVABLES As at 2019 As at (Unaudited) Due from related parties (Note 20) $ 97,514 $ 92,112 Advance to employees 47,078 12,020 Total $ 144,592 $ 104,132 | 6. OTHER RECEIVABLES 31 December 2018 2017 Amount due from related parties (Note 19) $ 92,112 $ 92,961 Advance to employees 12,020 15,888 Others - 1,048 Other receivables $ 104,132 $ 109,897 |
Other Current and Non-Current A
Other Current and Non-Current Assets | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Other Current and Non-Current Assets [Abstract] | ||
OTHER CURRENT AND NON-CURRENT ASSETS | 6. OTHER CURRENT AND NON-CURRENT ASSETS As at As at (Unaudited) Input VAT receivable $ 330,765 $ 358,179 Prepayments-office rental 575,543 842,150 Prepayments-insurance 436,186 5,861 Prepayments-others 44,700 258,718 Uniforms 52,088 36,418 Tools and supplies 189,178 118,977 Other current assets $ 1,628,460 $ 1,620,303 Deposit $ 330,584 $ 303,320 Others 6,577 - Other non-current assets $ 337,161 $ 303,320 | 7. OTHER CURRENT AND NON-CURRENT ASSETS 31 December 2018 2017 Input VAT receivable $ 358,179 $ 335,510 Prepayments-office rental 842,150 765,370 Prepayments-insurance 5,861 120,372 Prepayments-others 258,718 125,753 Uniforms 36,418 97,850 Tools and supplies 118,977 144,448 Other current assets $ 1,620,303 $ 1,589,303 Deposit $ 303,320 $ 308,307 Other non-current assets $ 303,320 $ 308,307 |
Leasehold Improvements, Equipme
Leasehold Improvements, Equipment and Other Fixed Assets | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Leasehold Improvements, Equipment and Other Fixed Assets [Abstract] | ||
LEASEHOLD IMPROVEMENTS, EQUIPMENT AND OTHER FIXED ASSETS | 7. LEASEHOLD IMPROVEMENTS, EQUIPMENT AND OTHER FIXED ASSETS Leasehold improvements Machinery and equipment Office decoration and equipment Vehicles Assets under construction Total Cost At 1 January 1 2019 $ 2,888,288 $ 6,467,812 $ 6,081,943 $ 17,614,629 $ 950,095 $ 34,002,767 Additions 151,023 7,421 38,885 - 593,829 791,158 Disposals (1,579 ) (165,255 ) (36,278 ) (1,052,498 ) - (1,255,610 ) Transfers in(out) 268,170 15,978 186,446 58,542 (529,136 ) - Exchange differences 178,450 375,157 360,096 1,007,917 57,051 1,978,671 At 30 June 2019 (Unaudited) 3,484,352 6,701,113 6,631,092 17,628,590 1,071,839 35,516,986 Depreciation At 1 January 2019 2,353,333 5,503,362 4,527,915 11,442,195 - 23,826,805 Depreciation charged for the period 77,126 310,990 195,032 717,966 - 1,301,114 Disposal (841 ) (164,978 ) (36,183 ) (1,051,697 ) - (1,253,699 ) Exchange differences 139,405 325,271 268,497 661,809 - 1,394,982 As 30 June 2019 2,569,023 5,974,645 4,955,261 11,770,273 - 25,269,202 Net book value At 30 June 2019 (Unaudited) $ 915,329 $ 726,468 $ 1,675,831 $ 5,858,317 $ 1,071,839 $ 10,247,784 There was no impairment of fixed assets during the six months ended 30 June 2019 and 2018. No fixed assets were pledged as security for bank borrowing. | 8. LEASEHOLD IMPROVEMENTS, EQUIPMENT AND OTHER FIXED ASSETS Leasehold improvements Machinery and equipment Office decoration and equipment Vehicles Assets under construction Total Cost At 1 January 1 2017 $ 2,586,222 $ 5,138,073 $ 4,084,144 $ 15,206,297 $ 38,371 $ 27,053,107 Additions 13,031 124,283 338,912 1,314,849 1,114,160 2,905,235 Disposals (5,586 ) (30,609 ) (40,224 ) (878,198 ) - (954,617 ) Transfers in(out) 11,568 528,390 215,392 - (755,350 ) Exchange differences 243,590 502,919 400,395 1,442,791 15,258 2,604,953 At 31 December 2017 2,848,825 6,263,056 4,998,619 17,085,739 412,439 31,608,678 Additions 28,271 259,424 803,285 1,197,559 912,525 3,201,064 Disposals - (181,444 ) (1,438 ) (733,602 ) - (916,484 ) Transfers in(out) - 103,056 269,445 - (372,501 ) - Exchange differences 11,192 23,720 12,032 64,933 (2,368 ) 109,509 At 31 December 2018 2,888,288 6,467,812 6,081,943 17,614,629 950,095 34,002,767 Depreciation At 1 January 2017 1,875,404 3,975,682 3,527,561 9,621,204 - 18,999,851 Depreciation charged for the year 161,320 597,260 333,622 1,156,790 - 2,248,992 Disposal (5,585 ) (29,597 ) (31,502 ) (868,635 ) - (935,319 ) Exchange differences 181,249 391,945 341,221 913,258 - 1,827,673 As 31 December 2017 2,212,388 4,935,290 4,170,902 10,822,617 - 22,141,197 Depreciation charged for the year 133,080 656,952 344,308 1,312,393 - 2,446,733 Disposal - (104,522 ) (1,437 ) (731,812 ) - (837,771 ) Exchange differences 7,865 15,642 14,142 38,997 - 76,646 As 31 December 2018 2,353,333 5,503,362 4,527,915 11,442,195 - 23,826,805 Net book value At 31 December 2018 534,955 964,450 1,554,028 6,172,434 950,095 10,175,962 At 31 December 2017 $ 636,437 $ 1,327,766 $ 827,717 $ 6,263,122 $ 412,439 $ 9,467,481 There was no impairment of fixed assets recorded for the years ended 31 December 2018 and 2017. No fixed assets were pledged as security for bank borrowing. Capital commitments under asset under constructions as of 31 December 2018 and 2017 amounted to $216,316 and Nil respectively. |
Intangible Assets, Net
Intangible Assets, Net | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Intangible Assets, Net [Abstract] | ||
INTANGIBLE ASSETS, NET | 8. INTANGIBLE ASSETS, NET Intangible assets represent computer software. The intangible assets are recorded at historic acquisition costs, and amortized on a straight-line basis over their estimated useful lives. Costs associated with maintaining computer software programs are recognized as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Company will be recognized as intangible assets when the criteria of intangible assets are met. Intangible assets are not amortized where their useful lives are assessed to be indefinite. The useful life of an intangible asset that is not being amortized is reviewed annually to determine whether events and circumstances continue to support the indefinite useful life assessment for that asset. Otherwise, the change in useful life assessment from indefinite to finite is accounted for prospectively from the date of change and in accordance with the policy for amortization of intangible assets with finite lives as set out above. Computer software Cost At 1 January 2019 $ 846,958 Additions 42,607 Exchange differences 29,441 At 30 June 2019 (Unaudited) 919,006 Accumulated amortization At 1 January 2019 617,618 Amortization charged for the period 20,164 Exchange differences 36,590 At 30 June 2019 (Unaudited) 674,372 Net book value At 30 June 2019 (Unaudited) $ 244,634 | 9. INTANGIBLE ASSETS, NET Computer software Cost At 1 January 2017 $ 586,671 Additions 98,311 Exchange differences 58,310 At 31 December 2017 743,292 Additions 101,446 Exchange differences 2,220 At 31 December 2018 846,958 Accumulated amortization At 1 January 2017 490,049 Amortization charged for the year 39,179 Exchange differences 47,312 As 31 December 2017 576,540 Amortization charged for the year 39,061 Exchange differences 2,017 As 31 December 2018 617,618 Net book value At 31 December 2018 $ 229,340 At 31 December 2017 $ 166,752 |
Trade and Other Payables
Trade and Other Payables | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Trade and other payables [abstract] | ||
TRADE AND OTHER PAYABLES | 9. TRADE AND OTHER PAYABLES As at As at (Unaudited) Trade accounts payable - other companies $ 888,155 $ 1,442,262 Amounts due to related companies (Note 20) 1,838,257 2,118,424 Accrued salaries and bonus 492,606 210,537 Accrued customer claims 359,926 116,692 Trade and other payables $ 3,578,944 $ 3,887,915 As at 30 June 2019 and 2018, $48,847 and $28,720, respectively, included in accrued customer claims is a specific provision for penalty claims for failure to meet certain performance indicators as stipulated in contracts with certain clients from the financial institution sector. | 10. TRADE AND OTHER PAYABLES 31 December 2018 2017 Trade accounts payable- other companies $ 1,442,262 $ 1,556,834 Amounts due to related companies (Note 19) 2,118,424 124,460 Accrued salaries and bonus 210,537 76,444 Accrued customer claims 116,692 182,952 Trade and other payables $ 3,887,915 $ 1,940,690 Output Vat $ 78,479 $ 100,040 Accrued Expense 740,899 420,090 Payroll Payable 589,030 519,235 Other Payable 221,669 285,885 Other current liabilities $ 1,630,077 $ 1,325,250 As of 31 December 2018 and 2017, $18,445 and $71,092, respectively, included in accrued customer claims is a specific provision for penalty claims for failure to meet certain performance indicators as stipulated in contracts with certain clients from the financial institution sector. |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Other Current Liabilities [Abstract] | |
OTHER CURRENT LIABILITIES | 10. OTHER CURRENT LIABILITIES As at As at (Unaudited) Output VAT $ 80,565 $ 78,479 Accrued expenses 930,341 740,899 Payroll payable 382,054 589,030 Other payables 184,618 221,669 Other current liabilities $ 1,577,578 $ 1,630,077 |
Borrowings from Fainancial Inst
Borrowings from Fainancial Institutions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Borrowings from Fainancial Institutions [Abstract] | ||
BORROWINGS FROM FAINANCIAL INSTITUTIONS | 11. BORROWINGS FROM FAINANCIAL INSTITUTIONS As at As at (Unaudited) Current portion of long-term borrowings $ 695,090 $ 1,007,787 Long-term borrowings 333,457 465,379 Total borrowings from financial institutions $ 1,028,547 $ 1,473,166 The Company's borrowings are mainly used to support its business in Thailand. Those borrowings carry interest at the rate of MLR minus 1% per annum. Maturity date of borrowings is made and repayable on 30 November 2019, 1 February 2020, 1 August 2021 and 1 November 2021. For the six months ended 30 June, 2019, the interest expense was $6,875. The Company has unused borrowing facilities of approximately $285,000 as at 30 June 2019. | 1 1 . BORROWINGS FROM FAINANCIAL INSTITUTIONS 31 December 2018 2017 Current portion of long-term borrowings $ 1,007,787 $ 661,964 Long-term borrowings 465,379 661,964 Borrowing from financial institutions $ 1,473,166 $ 1,323,928 The Company's borrowings are mainly used to support its business in Thailand. These borrowings carry interest at the rate of MLR (6.25% as of 31 December 2018) minus 1% per annum. Maturity date of borrowings is made and repayable on 30 November 2019, 1 February 2020, 1 August 2021 and 1 November 2021. For the years ended 31 December 2018 and 2017, interest expense was $80,607 and $0 respectively. The Company has unused borrowing facilities of approximately $253,000 from banks as of 31 December 2018. |
Short-Term Borrowing from Third
Short-Term Borrowing from Third Party | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Short-Term Borrowing from Third Party [Abstract] | ||
SHORT-TERM BORROWING FROM THIRD PARTY | 12. SHORT-TERM BORROWING FROM THIRD PARTY On 29 April 2018, Guardforce TH entered into an agreement with Profit Raider Investment Limited to transfer the loan between Guardforce TH and the Company to Profit Raider Investment Limited. As a result, the Company recorded a short-term borrowing from a third party in the amount of approximately $13.42 million bearing interest at 3.22% (which interest rate increased to 4% after 30 April 2019). The Company assumed an additional approximately $576,000 in liability which has been treated as an additional expense paid to the related party. On March 11, 2020, the maturity date of the loan was extended to 31 December 2020. | 1 2 . SHORT-TERM BORROWING FROM THIRD PARTY On 29 April 2018, Guardforce TH entered into an agreement with Profit Raider Investment Limited to transfer the loan between Guardforce TH and the Company to Profit Raider Investment Limited. As a result, the Company recorded a short-term borrowing from a third party in the amount of $13.42 million bearing interest at 3.22%. The Company assumed an additional approximately $576,000 in liability which has been treated as an additional expense paid to the related party. The holding companies have guaranteed the loans which are repayable at the end of 2019. |
Finance Lease Liabilities
Finance Lease Liabilities | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Finance Lease Liabilities [Abstract] | ||
FINANCE LEASE LIABILITIES | 13. FINANCE LEASE LIABILITIES As at As at (Unaudited) Current portion $ 332,957 $ 974,211 Non-current portion 2,126,122 2,008,614 Finance lease liabilities $ 2,459,079 $ 2,982,825 For the six months ended 30 June, 2019 and 2018, the interest expense was $74,079 and $82,511, respectively. The minimum lease payments under finance lease agreements are as follows: As at As at (Unaudited) Within 1 year $ 392,703 $ 1,102,209 After 1 year but within 5 years 2,331,044 2,205,045 Less: Future finance charges on finance leases (264,668 ) (324,429 ) Present value of finance lease liabilities, net $ 2,459,079 $ 2,982,825 Leased assets included in Note 7, under finance leases, comprise vehicles and office equipment as follow: As at As at (Unaudited) Cost $ 7,529,374 $ 7,113,238 Less: Accumulated depreciation (3,037,293 ) (2,461,410 ) Net book value $ 4,492,081 $ 4,651,828 | 1 3 . FINANCE LEASE LIABILITIES 31 December 2018 2017 Current portion $ 974,211 $ 1,351,327 Non-current portion 2,008,614 1,716,597 Finance lease liabilities $ 2,982,825 $ 3,067,924 For the years ended 31 December 2018 and 2017, the interest expense was $167,152 and $187,170, respectively. The minimum lease payments under finance lease agreements are as follows: 31 December 2018 2017 Within 1 year $ 1,102,209 $ 1,491,098 After 1 year but within 5 years 2,205,045 1,860,108 Less: Future finance charges on finance leases (324,429 ) (283,282 ) Present value of finance lease liabilities, net $ 2,982,825 $ 3,067,924 Leased assets included in Note 8, under a finance lease, comprise vehicles and office equipment as follow: 31 December 2018 2017 Cost $ 7,113,238 $ 6,452,082 Less: Accumulated depreciation (2,461,410 ) (2,289,990 ) Net book value $ 4,651,828 $ 4,162,092 |
Taxation
Taxation | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Taxation [Abstract] | ||
TAXATION | 14. TAXATION (a) Withholding taxes receivable Withholding tax is a deduction from payments made to suppliers who provide a service. The withholding tax rates can vary depending on the type of income and the tax status of the recipient. The Company is subject to a 3% withholding tax in Thailand which is refundable. A withholding tax receivable has been reflected in the statements of financial position for amounts due from the Revenue Department. (b) Deferred taxes Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of profit or loss in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. The Company offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered. | 14. TAXATION (c) Value added tax ("VAT") The Company is subject to a statutory VAT of 7% for service in Thailand. The output VAT is charged to customers who receive services from the Company and the input VAT is paid when the Company purchases goods and services from its vendors. The input VAT can be offset against the output VAT. The VAT payable will be presented on the statements of financial position when input VAT is less than the output VAT. A recoverable balance will be presented on the statements of financial position when input VAT is larger than the output VAT. (d) Withholding tax Withholding tax is a deduction from payments made to suppliers who provide a service. The withholding tax rates can vary depending on the type of income and the tax status of the recipient. The Company is subject to a 3% withholding tax in Thailand which is refundable. A withholding tax receivable has been reflected in the statements of financial position for amounts due from the Revenue Department. (e) Income tax Cayman Islands The Company is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholding tax in the Cayman Islands. British Virgin Islands The Company's subsidiary incorporated in the BVI is not subject to taxation. Hong Kong The Company's subsidiary incorporated in Hong Kong is subject to a corporate income tax rate of 16.5% on Hong Kong service income. Thailand The Company's subsidiary incorporated in Thailand is subject to a corporate income tax rate of 20%. The components of the income tax provision are: For the year ended 31 December 2018 31 December 2017 Current income tax expense $ - $ - Deferred income tax expense 119,953 173,060 Total income tax expense $ 119,953 $ 173,060 Reconciliation between the statutory tax rate to income before income taxes and the actual provision for income taxes is as follows: For the year ended 31 December 31 December Profit before income tax expense $ 474,512 $ 1,323,634 Thailand income tax statutory rate 20 % 20 % Income tax at statutory tax rate 94,902 264,727 Permanent differences 25,051 (91,667 ) Income tax expense (benefit) $ 119,953 $ 173,060 Deferred tax assets and liabilities are comprised of the following: 31 December 2018 2017 Provision for employee benefits $ 1,123,867 $ 1,045,868 Net operating loss carried forward 233,725 312,008 Deferred tax assets 1,357,592 1,357,876 Less: Deferred tax liabilities - finance leases 377,073 262,681 Deferred tax assets-net $ 980,519 $ 1,095,195 The Company considers positive and negative evidence to determine whether some portion or all of the net deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carry forward periods, the Company's experience with tax attributes expiring unused and tax planning alternatives. A valuation allowance is established for deferred tax assets based on a more-likely-than-not threshold. The Company's ability to realize the net profit or loss depends on its ability to generate sufficient taxable income within the carry forward period of 5 years provided for in the tax law. No valuation allowance against the net deferred tax asset was considered necessary since the Company believes that it will more likely than not utilize the future benefits. |
Provision for Employee Benefits
Provision for Employee Benefits | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Provision for Employee Benefits [Abstract] | ||
PROVISION FOR EMPLOYEE BENEFITS | 15. PROVISION FOR EMPLOYEE BENEFITS The Company operates a defined benefit plan based on the requirement 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. There were no plan assets set up and the Company will pay the benefits when required. PROVISION FOR EMPLOYEE BENEFITS Defined benefit obligations at 31 December 2018 $ 5,619,337 Estimate for the six months period 517,557 Defined benefit obligations at 30 June 2019 (Unaudited) $ 6,136,894 | 1 5 . PROVISION FOR EMPLOYEE BENEFITS The Company operates a defined benefit plan based on the requirement 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. There were no plan assets set up and the Company will pay benefit when needed. Movement in the present value of the defined benefit obligation: 31 December 2018 2017 Defined benefit obligations at 1 January $ 5,229,340 $ 3,830,460 Benefits paid during the year (343,944 ) (381,229 ) Current service costs 674,360 517,058 Interest 128,509 114,441 Past service cost and loss on settlement 36,907 594,541 Actuarial (losses) gains recognized in the income statement (123,997 ) 161,519 Exchange differences 18,162 392,550 Defined benefit obligations at 31 December $ 5,619,337 $ 5,229,340 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Shareholders Equity [Abstract] | ||
SHAREHOLDERS' EQUITY | 16. SHAREHOLDERS' EQUITY The shareholders' equity structure as at 31 December 2018 was presented after giving retroactive effect to the reorganization of the Company that was completed on 31 December 2018. Immediately before and after reorganization, the Company, together with its wholly-owned subsidiaries, were effectively controlled by the same shareholders; therefore, for accounting purposes, the reorganization was accounted for as a recapitalization. Guardforce AI has authorized 50,000,000 shares ordinary shares with a par value of $0.001 each. As at 30 June 2019, 50,000,000 ordinary shares were issued and outstanding, at par value, equivalent to share capital of $50,000. As at 30 June 2019 and 31 December 2018, the subscription receivable for these shares was $50,000. | 1 6 . SHAREHOLDERS' EQUITY The shareholders' equity structure as of 31 December 2018 and 2017 are presented after giving retroactive effect to the reorganization of the Company that was completed on 31 December 2018. Immediately before and after reorganization, the Company, together with its wholly-owned subsidiaries, were effectively controlled by the same shareholders; therefore, for accounting purposes, the reorganization was accounted for as a recapitalization. Guardforce AI has authorized 50,000,000 shares ordinary shares with a par value of $0.001 each. As of 31 December 2018, 50,000,000 ordinary shares were issued at par value, equivalent to share capital of $50,000, which was outstanding as of the issuance date of the financial statements. As of 31 December 2018 and 2017, the subscription receivable for these shares was $50,000. |
Administrative Expenses
Administrative Expenses | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Administrative Expenses [Abstract] | ||
ADMINISTRATIVE EXPENSES | 17. ADMINISTRATIVE EXPENSES For the six months ended 30 June 30 June Staff expense $ 1,417,813 $ 1,320,135 Rental expenses 568,164 538,635 Depreciation and amortization expense 95,959 73,546 Utilities expense 261,735 245,594 Travelling and entertainment expense 86,568 70,713 Professional fees 268,531 66,171 Repair and maintenance 35,741 54,461 Employee benefit expense 237,546 65,291 Other service fees 101,911 97,274 Other expenses 349,267 338,420 Total $ 3,423,235 $ 2,870,240 | 1 7 . ADMINISTRATIVE EXPENSES For the year ended 31 December 31 December Staff expense $ 2,134,718 $ 1,923,199 Loan penalty charge 575,923 - Rental expenses 480,519 441,223 Depreciation and amortization expense 147,873 97,582 Utilities expense 147,436 153,133 Travelling and entertainment expenses 135,016 128,382 Professional fees 151,742 84,513 Repairs and maintenance 98,384 80,460 Employee benefit expenses 94,293 77,305 Other service fees 69,310 55,244 Office expenses 245,374 278,708 Other expenses 231,261 87,564 $ 4,511,849 $ 3,407,313 |
Income Tax Expenses
Income Tax Expenses | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Expenses [Abstract] | |
INCOME TAX EXPENSES | 18. INCOME TAX EXPENSES Income tax expense is recognized based on management's estimate of the weighted average effective annual income tax rate expected for the full financial year. |
Legal Reserve
Legal Reserve | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Legal Reserve [Abstract] | ||
LEGAL RESERVE | 19. LEGAL RESERVE Under the provisions of the Civil and Commercial Code, GF Cash (CIT) is required to set aside as a legal reserve at least 5% of the profits arising from the business of the Company at each dividend distribution until the reserve is not less than 10% of the registered share capital. The legal reserve is non-distributable. The legal reserve balance was $223,500 as at 30 June, 2019 and 31 December 2018. | 1 8 . LEGAL RESERVE Under the provisions of the Civil and Commercial Code, GF Cash (CIT) is required to set aside as a legal reserve at least 5% of the profits arising from the business of the Company at each dividend distribution until the reserve is not less than 10% of the registered share capital. The legal reserve is non-distributable. The legal reserve balance was $223,500 as of 31 December 2018 and 2017. |
Related Party Transactions
Related Party Transactions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Related Party Transactions [Abstract] | ||
RELATED PARTY TRANSACTIONS | 20. RELATED PARTY TRANSACTIONS The principal related party balances and transactions as at and for the six months ended 30 June 2019 and 2018 are as follows: Amounts due from related parties: As at As at (Unaudited) Long Top Limited (Loan to related parties) $ 310,567 $ 303,246 Guardforce Group Limited (Other receivables) 89,665 84,709 Guardforce TH Group Company Limited (Other receivables) 7,849 7,403 Bangkok Bank Public Company Limited (Accounts receivable, net) - 702 $ 408,081 $ 396,060 The amount due from Long Top Limited is a short-term loan by the Company with interest at 5% per annum. The interest income for the six months ended 30 June 2019 was $10,689. The loan's due date was 31 December 2019 and was further extended to 31 December 2021. All interest and principal is due on that date. Amounts due from Guardforce Group Limited, Guardforce TH Group Company Limited, and Bangkok Bank Public Company Limited are business advances for operational purposes. Amounts due to related parties: As at As at 31 December (Unaudited) Mr. Tu Jingyi (Trade and other payables) 1,537,327 1,837,327 Junwei Capital Group Ltd. (Trade and other payables) 224,766 149,741 Guardforce Security (Thailand) Co., Ltd (Trade and other payables) 69,780 124,825 Guardforce 3 Limited (Trade and other payables) 5,601 5,291 Guardforce Aviation Security Co., Ltd (Trade and other payables) 783 1,240 $ 1,838,257 $ 2,118,424 Related party transactions: For the six months ended Nature 30 June 30 June (Unaudited) (Unaudited) Guardforce Security (Thailand) Co., Ltd (a) $ 371,362 $ 350,740 Guardforce Aviation Security Co., Ltd (b) 5,116 3,756 $ 376,478 $ 354,496 Nature of transactions: (a) Guardforce Security (Thailand) Co., Ltd. provided security guard services to the Company. (b) Guardforce Aviation Security Co., Ltd. provided escort services to the Company. | 1 9 . RELATED PARTY TRANSACTIONS The table below sets forth the major related parties and their relationships with the Company as of 31 December 2018: Name of related parties Relationship with the Company Long Top Limited Ultimately controlled by Mr. Tu Guardforce TH Group Company Limited Ultimately controlled by Mr. Tu Guardforce Security(Thailand) Company Limited Ultimately controlled by Mr. Tu Bangkok Bank Public Company Limited Minority shareholder Shenzhen Junwei Investment Development Co., Ltd. Minority shareholder Guardforce Security (Thailand) Co.,Ltd Ultimately controlled by Mr. Tu Guardforce Aviation Security Co.,Ltd Ultimately controlled by Mr. Tu Guardforce 3 Limited Ultimately controlled by Mr. Tu Tu Jingyi ("Mr. Tu") Controlling shareholder The principal related party balances and transactions as of and for the years ended 31 December 2018 and 2017 are as follows: Amounts due from related parties: 31 December 2018 2017 Long Top Limited (Loan to related parties) $ 303,246 $ - Guardforce Group Limited (Other receivable) 84,709 84,371 Guardforce TH Group Company Limited (Other receivable) 7,403 6,134 Guardforce Security (Thailand) Company Limited (Other receivable) - 2,456 Bangkok Bank Public Company Limited (Other receivable/Accounts receivable, net) 702 707 $ 396,060 $ 93,668 The amount due from Long Top Limited is a short-term loan by the Company with interest at 3% per annum. The interest income for the year ended 31 December 2018 was $5,948. The loan's due date was 31 December 2019 and was further extended to 31 December 2021. All the interest and principal are due on that date. Amounts due from Guardforce Group Limited, Guardforce TH Group Company Limited, Guardforce Security (Thailand) Company Limited and Bangkok Bank Public Company Limited are business advances for operational purposes. Amounts due to related parties: 31 December 2018 2017 Guardforce TH Group Company Limited (Borrowings from related party) $ - $ 12,386,433 Tu Jingyi (Trade and other payables) 1,837,327 - Junwei Capital Group Ltd. (Trade and other payables) 149,741 - Guardforce Security (Thailand) Co.,Ltd (Trade and other payables) 124,825 118,475 Guardforce 3 Limited (Trade and other payables) 5,291 5,270 Guardforce Aviation Security Co.,Ltd (Trade and other payables) 1,240 715 $ 2,118,424 $ 12,510,893 Amounts due to Guardforce TH Group Company Limited are short-term loans bearing interest at 2.01% and 4.13329% per annum. The loans were unsecured and have been transferred to a third party through a debt restructuring in April 2018. (See Note 12). The interest expense was $126,523 and $381,621 for the years ended 31 December 2018 and 2017 respectively. Related party transactions: For the year ended Nature 31 December 31 December Guardforce Security (Thailand) Co.,Ltd (a) $ 695,594 $ 639,397 Guardforce Aviation Security Co.,Ltd (b) 6,853 5,741 $ 702,447 $ 645,138 Nature of transactions: (a) Guardforce Security (Thailand) Co.,Ltd. provided security guard services to the Company. (b) Guardforce Aviation Security Co.,Ltd. provided escort services to the Company. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies [Abstract] | ||
COMMITMENTS AND CONTINGENCIES | 21. COMMITMENTS AND CONTINGENCIES Executives/directors agreements The Company has several employment agreements with executives and directors with the latest expiring in 2021. All agreements provide for automatic renewal options with varying terms of one year or three years unless terminated by either party. Future payments for employment agreements as at 30 June 2019 are as follows: Amount Year ending 30 June: 2020 $ 501,443 2021 476,186 2022 31,371 Total minimum payment required $ 1,009,000 Capital expenditure commitments The Company's capital expenditures contracted for as at 30 June 2019 but not provided in the consolidated financial statements are as follows: Payments Due by Period Less than 1-3 3-5 More than Contractual Obligations Nature Total 1 year years years 5 years Service fee commitments (a) $ 2,322,053 $ 741,829 $ 1,125,281 $ 454,943 $ - Total $ 2,322,053 $ 741,829 $ 1,125,281 $ 454,943 $ - (a) The Company has commitments to pay certain service fees to Stander Information Company Limited, as its service provider to provide technical services for operating systems, that comprise a monthly fixed amount and certain other fees as specified in the agreement. Bank guarantee As of 30 June 2019, the Company had commitments with banks for guarantees in favor of government agencies and others of approximately $4,679,000. | 20 . COMMITMENTS AND CONTINGENCIES Operating lease commitments The Company has several non-cancelable operating leases for properties, office equipment and vehicles, and future payments for operating leases as of 31 December are as follows: Amount Year ending 31 December: 2019 $ 2,835,921 2020 2,041,438 2021 1,580,334 2022 930,949 2023 51,181 2024 and thereafter 161,299 Total minimum payment required $ 7,601,122 Rental expense incurred for operating leases for the years ended 31 December 2018 and 2017 amounted to $1,856,584 and $1,831,567 respectively. Executives/directors agreements The Company has several employment agreements with executives and directors with the latest expiring in 2021. All agreements provide for auto renewal option with varying terms of one year or three years unless terminated by either party. Future payments for employment agreements as of 31 December are as follows: Amount Year ending 31 December: 2019 $ 251,413 2020 592,803 2021 220,694 Total minimum payment required $ 1,064,910 Capital expenditure commitments The Company's capital expenditures contracted for as of 31 December 2018 but not provided in the consolidated financial statements are as follows: Payments Due by Period Less than 1-3 4-5 More than Contractual Obligations Nature Total 1 year years years 5 years Service fee commitments (a) $ 1,620,960 $ 331,560 $ 675,400 $ 614,000 $ - Asset construction commitments (b) 216,326 216,326 - - - Total $ 1,837,286 $ 547,886 $ 675,400 $ 614,000 $ - (a) The Company has commitments to pay certain service fees to Stander Information Company Limited, as its service provider to provide technical services for operating systems, that comprise a monthly fixed amount and certain other fees as specified in the agreement. (b) Represents asset under construction for certain office equipment and IT equipment and vehicles. Bank guarantee As of 31 December 2018, the Company had commitments with banks for bank guarantees in favor of government agencies and others of $4,462,642. Litigation As of 31 December 2018, the Company is a defendant in various labor related lawsuits totaling approximately $635,000. The Company has made a provision for possible losses of approximately $42,000 in the financial statements. The Company's lawyers and management believe that such provision is adequate. |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2018 | |
Concentrations [Abstract] | |
CONCENTRATIONS | 21 . CONCENTRATIONS The following table sets forth information as to each customer that accounted for 10% or more of the Company's revenue for the years ended 31 December 2018 and 2017. For the year ended 31 December % of net revenue 31 December % of net revenue Company A $ 9,992,800 26.8 % $ 9,582,307 27.8 % Company B 6,233,599 16.7 % 6,130,137 17.8 % Company C 4,582,495 12.3 % 4,315,735 12.5 % $ 20,808,894 55.8 % $ 20,028,179 58.1 % Details of the customers which accounted for 10% or more of accounts receivable are as follows: 31 December % account 31 December % account Company A $ 1,332,809 22.5 % $ 1,734,059 29.9 % Company B 1,085,142 18.4 % 870,099 15.0 % Company C 600,219 10.2 % - - $ 3,018,170 51.1 % $ 2,604,158 44.9 % |
Subsequent Events
Subsequent Events | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Subsequent Events [Abstract] | ||
SUBSEQUENT EVENTS | 22. SUBSEQUENT EVENTS On December 16, 2019, the Company entered into an agreement and plan of merger (the "Merger Agreement") with VCAB Eight Corporation, a Texas corporation ("VCAB"), pursuant to which, subject to certain preconditions being satisfied, it was agreed that VCAB would merge with and into the Company. The main objective of the Merger was to increase the Company's shareholder base to, among other things, assist the Company in satisfying the listing standards of a national security exchange in the United States. The Merger was completed effective March 10, 2020, and the separate existence of VCAB ceased on that date. As consideration for the Merger, the Company will issue an aggregate of 2,631,579 shares of capital stock ("Plan Shares') to VCAB's claim holders. As of the date of this report, the Company has allocated, and is in the process of issuing, 2,068,959 of the Plan Shares to approximately 670 designated and Bankruptcy Court approved claim holders. The Company will hold the remaining 562,620 Plan Shares in reserve for issuance to additional claim holders as they are approved by the Bankruptcy Court during the next few months. Following the completion of this process, the Company expects to have approximately 1,300 holders of its outstanding ordinary shares. On 5 February 2020, the shareholders of the Company authorized an increase in the authorized share capital of the Company from 50,000,000 Ordinary Shares to 300,000,000 Ordinary Shares, by the creation of an additional 250,000,000 Ordinary Shares of US$0.001 par value each. On 11 March 2020, the Company entered into a second supplemental agreement to the loan agreement with the lender, Profit Raider Investment Limited, to extend the due date of the loan to 31 December 2020. The outstanding principle amount due was $13,421,793 and the amount of interest accrued on the loan, calculated up to 31 December 2019 was $709,535. On 13 March 2020, the Company's Board of Directors approved the transfer of 5,000,000 ordinary shares of Guardforce AI Co. Limited from Guardforce AI Technology to Profit Raider Investments Limited ("Profit Raider"). As a result of this share transfer, Profit Raider is deemed an affiliate of the Company. | 22 . SUBSEQUENT EVENTS Subsequent events have been reviewed through the date the consolidated financial statements were issued and required no adjustments or disclosures other than the following: On December 16, 2019, the Company signed an agreement and plan of merger (the Merger Agreement") with VCAB Eight Corporation, a Texas corporation ("VCAB"), pursuant to which, subject to certain preconditions being satisfied, VCAB will merge (the "Merger") with and into the Company. At the time of the signing of the Merger Agreement, VCAB was, and at the expected date of closing will be, subject to a bankruptcy proceeding in Texas. VCAB has minimal assets, no equity owners and no liabilities, except for approximately 1, 300 holders of Class 5 Allowed General Unsecured Claims and one holder of allowed administrative expenses (collectively, the " Claim Holders"). Pursuant to the terms of the Merger Agreement, and in accordance with the bankruptcy plan, the Company will issue at the closing of the Merger an aggregate of 2,631,579 shares of capital stock (the "Plan Shares") to the Claim Holders in full settlement and satisfaction of their respective claims. As provided in the bankruptcy plan, the Plan Shares will be issued pursuant to Section 1145 of the United States Bankruptcy Code. As a result of the Merger, the separate corporate existence of VCAB will be terminated. The closing of the Merger is subject to certain preconditions including amending the Memorandum of Association to increase the amount and number of the authorized ordinary shares to such number as to enable the Company to issue the Plan Shares. The Company intends to complete the Merger as soon as practicable. The Company entered into the Merger Agreement, and plans to consummate the Merger, in order to increase its shareholder base to, among other things, assist the Company in satisfying the listing standards of a national securities exchange in the United States. On 5 February 2020, the shareholders of the Company authorized an increase in the authorized share capital of the Company from 50,000,000 Ordinary Shares to 300,000,000 Ordinary Shares, by the creation of an additional 250,000,000 Ordinary Shares of US$0.001 par value each. |
Condensed Financial Information
Condensed Financial Information of the Parent Company | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information of the Parent Company [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 23 . CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY The Company performed a test of its restricted net assets of the consolidated subsidiaries in accordance with the Securities and Exchange Commission's Regulation S-X Rule 4-08 (e) (3), "General Notes to Financial Statements" and concluded that it was applicable for the Company to disclose the financial information of the parent company. The subsidiaries did not pay any dividends to the Company for the periods presented. For the purpose of presenting parent-only financial information, the Company records its investment in its subsidiaries under the equity method of accounting. Such investment is presented on the separate condensed statement of financial position of the Company as "Investment in subsidiaries". Certain information and footnote disclosures generally included in financial statements prepared in accordance with IFRS have been condensed or omitted. The parent Company did not have significant capital and other commitments, long-term obligations, or guarantees as of 31 December 2018 and 2017. STATEMENT OF FINANCIAL POSITION - PARENT COMPANY ONLY 31 December 2018 (Unaudited) Assets Current assets: Cash and cash equivalents $ 462,485 Amount due from subsidiaries 390,000 Investment in subsidiaries 1,289,522 Total assets $ 2,142,007 Liabilities Current liabilities: Trade and other payables $ 1,029,347 Total liabilities 1,029,347 Shareholders' equity Common stock - Authorized 50,000,000 shares, par value $0.001 50,000 Subscription of receivable (50,000 ) Additional paid in capital 2,360,204 Legal reserve 223,500 Accumulated Deficit (1,680,322 ) Other comprehensive income 209,278 Total shareholders' equity 1,112,660 Total liabilities and shareholders' equity $ 2,142,007 STATEMENT OF PROFIT AND LOSS AND COMPREHENSIVE INCOME (LOSS) - PARENT COMPANY ONLY For the year 31 December 2018 (Unaudited) Revenue $ - Cost of revenue - Gross margin - Administrative expenses (177,009 ) Loss from operating (177,009 ) Other income 147 Equity income of subsidiaries 349,783 Profit before income tax expenses 172,921 Income tax expenses - Net profit for the year 172,921 Total comprehensive income for the year $ 172,921 STATEMENT OF CASH FLOWS For the year 31 December 2018 (Unaudited) Operating activities Net profit $ 172,921 Adjustments to reconcile to net income to net cash used in operating activities Equity gain of subsidiaries (349,783 ) Changes in operating assets and liabilities: Accounts and other receivables, net (390,000 ) Trade and other payables 1,029,347 Net cash provided by operating activities 462,485 Net increase in cash and cash equivalents, and restricted cash 462,485 Cash and cash equivalents, and restricted cash at beginning of year - Cash and cash equivalents, and restricted cash at end of year $ 462,485 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Significant Accounting Policies [Abstract] | ||
Basis of presentation | 2.1 Basis of presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard ("IAS") 34, "Interim Financial Reporting". These statements should be read in conjunction with the audited consolidated financial statements for the years ended 31 December 2018 and 2017, which have been prepared in accordance with IFRS. The unaudited interim condensed consolidated financial statements have been prepared on a historical cost basis. All amounts are presented in United States dollars ("US $" or "USD") and have been rounded to the nearest US $. | 2.1 Basis of presentation The consolidated financial statements of Guardforce and subsidiaries have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). All amounts are presented in United States dollars ("USD") and have been rounded to the nearest USD. |
Basis of consolidation | 2.2 Basis of consolidation Pursuant to the reorganization, Guardforce became the holding company of the companies, which were under the common control of the controlling shareholder before and after the reorganization. Accordingly, the Company's financial statements have been prepared on a consolidated basis by applying the method as if the reorganization had been completed at the beginning of the earliest reporting period. The consolidated statements of profit or loss and other comprehensive income, statements of changes in shareholders' equity and statements of cash flows of the Company for the relevant periods include the results and cash flows of all companies now comprising the Company from the earliest date presented or since the date when the subsidiaries and/or businesses first came under the control of the controlling shareholder, whichever is shorter. The unaudited interim condensed consolidated statements of financial position of the Company as at 30 June 2019 have been prepared to present the assets and liabilities of the subsidiaries using the existing book values from the controlling shareholder's perspective. No adjustments are made to reflect fair values, or to recognize any new assets or liabilities as a result of the reorganization. Equity interests in subsidiaries held by parties other than the controlling shareholders are presented as non-controlling interests in shareholder equity. All intra-group and inter-company transactions and balances have been eliminated on consolidation. | 2.2 Basis of consolidation Pursuant to the reorganization, Guardforce became the holding company of the companies, which were under the common control of the controlling shareholders before and after the reorganization. Accordingly, the Company's financial statements have been prepared on a consolidated basis by applying the predecessor value method as if the reorganization had been completed at the beginning of the earliest reporting period. The consolidated statements of profit or loss and other comprehensive income, statements of changes in shareholders' equity and statements of cash flows of the Company for the relevant periods include the results and cash flows of all companies now comprising the Company from the earliest date presented or since the date when the subsidiaries and/or businesses first came under the common control of the controlling shareholders, wherever the period is shorter. The consolidated statements of financial position of the Company as at 31 December 2018 and 2017 have been prepared to present the assets and liabilities of the subsidiaries using the existing book values from the controlling shareholders' perspective. No adjustments are made to reflect fair values, or to recognize any new assets or liabilities as a result of the reorganization. Equity interests in subsidiaries held by parties other than the controlling shareholders are presented as non-controlling interests in shareholders' equity. All intra-group and inter-company transactions and balances have been eliminated on consolidation. |
Business combinations under common control | 2.3 Business combinations under common control IFRS 3 (2008) Business combination does not include specific measurement guidance for transfers of businesses or subsidiaries between entities under common control. Accordingly, the Company has accounted for such transactions taking into consideration other guidance in the IFRS framework and pronouncements of other standard-setting bodies. The Company recorded assets and liabilities recognized as a result of transactions between entities under common control at the carrying value on the transferor's financial statements, and to have the Consolidated Statements of Financial Position, Consolidated Statements of Profits or Loss, Consolidated Statements of Comprehensive Income and Statements of Cash Flows reflect the results of combining entities for all periods presented for which the entities were under the transferor's common control, irrespective of when the combination takes place. | 2.3 Business combinations under common control IFRS 3 (2008) Business combination does not include specific measurement guidance for transfers of businesses or subsidiaries between entities under common control. Accordingly, the Company has accounted for such transactions taking into consideration other guidance in IFRS framework and pronouncements of other standard-setting bodies. The Company recorded assets and liabilities recognized as a result of transactions between entities under common control at the carrying value on the transferor's financial statements, and to have the Consolidated Statements of Financial Position, Consolidated Statements of Profits or Loss, Consolidated Statements of Comprehensive Income and Statements of Cash Flows reflect the results of combining entities for all periods presented for which the entities were under the transferor's common control, irrespective of when the combination takes place. |
Non-controlling interest | 2.4 Non-controlling interest The non-controlling interest represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity on the consolidated statements of financial position, profit or loss and other comprehensive income attributed to controlling and non-controlling interests. | 2.4 Non-controlling interest The non-controlling interest represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity on the consolidated statements of financial position, profit or loss and other comprehensive income attributed to controlling and non-controlling interests. |
Use of estimates | 2.6 Use of estimates The preparation of consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing the unaudited interim condensed consolidated financial statements, the significant judgments made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2018. | 2.5 Use of estimates The preparation of the consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. Significant estimates during the years ended 31 December 2018 and 2017 include the allowance for doubtful accounts, the useful life of property and equipment, and valuation of deferred tax assets. |
Foreign currency translation | 2.5 Foreign currency translation The reporting currency of the Company is the U.S. dollar ("US $" or "USD"). The functional currency of Guardforce, AI Holdings, AI Robots, Horizon Dragon, Southern Ambition, is the USD. The functional currency of AI Hong Kong is the Hong Kong dollar. The functional currency of AI Thailand and GF Cash (CIT) are the Thai Baht ("Baht" or "THB"). For the subsidiaries whose functional currency is the Baht and Hong Kong dollar, profit or loss and cash flows are translated at the average exchange rates during the reporting periods, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the statements of financial position. Translation adjustments resulting from the process of translating the local currency financial statements into USD are included in comprehensive income. Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the statement of financial position's date with any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in profit or loss as incurred. The currency exchange rates that impact our business are shown in the following table: Period End Rate Average Rate 30 June 31 December For the Six Months Ended 30 June 2019 2018 2019 2018 Thai Baht 0.0325 0.0307 0.0318 0.0314 Hong Kong Dollar 0.1280 0.1280 0.1280 0.1280 | 2.6 Foreign currency translation The reporting currency of the Company is the U.S. dollar ("USD"). The functional currency of Guardforce, AI Holdings, AI Robots, Horizon Dragon, Southern Ambition, is the USD. The functional currency of AI Hong Kong is Hong Kong dollar. The functional currency of AI Thailand and GF Cash (CIT) are Thai Baht ("Baht" or "THB"). For the subsidiaries whose functional currency is the Baht and Hong Kong dollar, profit or loss and cash flows are translated at the average exchange rates during the reporting periods, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the statements of financial position. Translation adjustments resulting from the process of translating the local currency financial statements into USD are included in comprehensive income/loss. Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the statement of financial position's date with any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in profit or loss as incurred. The currency exchange rates that impact our business are shown in the following table: Period End Rate Average Rate As of 31 December For the Year Ended 2018 2017 2018 2017 Thai Baht 0.0307 0.0306 0.0309 0.0296 Hong Kong Dollar 0.1280 0.1280 0.1280 0.1280 |
Leases | 2.7 Leases IFRS 16 Leases IFRS 16 has resulted in almost all leases being recognized on the statement of financial position, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognized. The only exceptions are short-term and low-value leases. The Company has adopted IFRS 16 from 1 January 2019 and has not restated the comparative financial statements for the 2018 reporting period, as permitted under the specific transitional provisions in the standard. The reclassifications and the adjustments arising from the new leasing rules are therefore recognized in the opening unaudited interim condensed consolidated statement of financial position on 1 January 2019. On adoption of IFRS 16, the Company recognized lease liabilities in relation to leases which had previously been classified as 'operating leases' under the principles of IAS 17 "Leases". These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate as of 1 January 2019. The weighted average lessee's incremental borrowing rate applied to the lease liabilities on 1 January 2019 was 3.8% As at 2019 (Unaudited) Operating lease commitments disclosed at 31 December 2018 $ 7,601,122 Discounted using lessee's incremental borrowing rate as of 1 January 2019 7,271,152 Less: short-term leases recognized on a straight-line basis as expense - Less: low value leases recognized on a straight-line basis as expense - Lease liabilities recognized as at 1 January 2019 $ 7,271,152 As at 2019 (Unaudited) The liability is classified as follows: Current lease liabilities $ 2,835,925 Non-current lease liabilities 4,435,227 $ 7,271,152 The associated right-of-use assets were measured at the amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to the lease recognized in the unaudited interim condensed consolidated statement of financial positon. The change in accounting policy affected the following items on the unaudited interim condensed consolidated statement of financial position on 1 January 2019: a. Lease liabilities increased by $ b. Right-of-use assets increased by $ Right-of-use assets mainly represent long-term office, equipment and vehicle rental leases entered into by the Company. | |
Financial risk management | 2.8 Financial risk management 2.8.1 Financial risk factors The Company's activities expose it to a variety of financial risks: currency risk, credit risk and liquidity risk. The unaudited interim condensed consolidated financial statements do not include all financial risk management information and disclosures required in the audited financial statements, and should be read in conjunction with the Company's audited consolidated financial statements as at 31 December 2018 and 2017. There have been no changes in the risk management policies since the 2018 financial year end. 2.8.2 Liquidity risk As a result of adoption of IFRS 16, the Company recognized lease liabilities of $6,121,542 as at 30 June 2019 with respect to its operating leases. The table below analyses the Company's lease liabilities into the relevant maturity grouping based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. As at 2019 (Unaudited) Less than 1 year $ 2,513,758 More than 1 year 3,607,784 $ 6,121,542 2.8.3 Capital risk management The Company's objectives on managing capital are to safeguard the Company's ability to continue as a going concern and support the sustainable growth of the Company in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to enhance shareholders' value in the long term. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. In the opinion of the directors of the Company, the Company's capital risk is low. | 2.7 Financial risk management 2.7.1 Financial risk factors The Company's activities expose it to a variety of financial risks: foreign exchange risk, interest rate risk and liquidity risk. The Company's overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company's financial performance. (i) Foreign exchange risk The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the THB and USD. Foreign exchange risk arises when future commercial transactions or recognized assets and liabilities are denominated in a currency that is not the respective functional currency of the Company's subsidiaries. The functional currency of the Company and majority of its overseas subsidiaries is the USD whereas the functional currency of the subsidiaries which operate in the Thailand is the THB. The Company currently does not hedge transactions undertaken in foreign currencies but manages its foreign exchange risk by performing regular reviews of the Company's net foreign exchange exposures. If the THB had strengthened/weakened by 1.27% against the USD (the average monthly variance during the 2-year period ended 31 December 2018) with all other variables held constant, the post-tax profit would have been approximately $169,000 higher/lower and $63,000 higher/lower, for the years ended 31 December 2018 and 2017, respectively, as a result of net foreign exchange gains/losses on translation of net monetary assets denominated in the THB/USD which is not the functional currency of the respective Company's entities. (ii) Interest rate risk The Company's exposure to changes in interest rates are mainly attributable to its borrowings and loans. At the reporting date, if interest rates on borrowings had been 100 basis points higher/lower with all other variables held constant, the Company's post-tax results for the year would have been approximately $43,000 and $105,000 lower/higher for the years ended 31 December 2018 and 2017, respectively, mainly as a result of higher/lower interest expense on floating rate borrowings. (iii) Liquidity risk Prudent liquidity management implies maintaining sufficient cash and cash equivalents and the availability of funding through an adequate amount of committed credit facilities. The Company's primary cash requirements are for operating expenses and purchases of fixed assets. The Company mainly finances its working capital requirements from cash generated from operation and proceeds from bank borrowings. The Company's policy is to regularly monitor current and expected liquidity requirements to ensure it maintains sufficient cash and cash equivalents and an adequate amount of committed credit facilities to meet its liquidity requirements in the short and long term. At the reporting date, the contractual undiscounted cash flows of the Company's current financial liabilities approximate their respective carrying amounts due to their short maturities. The table below analyses the Company's non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows, including interest if applicable. Year ended 31 December 2018 Within 1 to 5 years >5 years Total Trade and other payables $ 3,887,915 $ - $ - $ 3,887,915 Borrowings from financial institutions 1,068,299 481,529 - 1,549,828 Borrowings from third party 13,730,531 - - 13,730,531 Other current liabilities 1,630,077 - - 1,630,077 Finance lease liabilities 1,102,209 2,205,045 - 3,307,254 Provision for employee benefits 554,241 1,618,757 39,761,537 41,934,535 $ 21,973,272 $ 4,305,331 $ 39,761,537 $ 66,040,140 Year ended 31 December 2017 Within 1 year 1 to 5 years >5 years Total Trade and other payables $ 1,940,690 $ - $ - $ 1,940,690 Borrowings from financial institutions 720,050 683,506 - 1,403,556 Borrowing from related party 12,386,433 - - 12,386,433 Other current liabilities 1,325,250 - - 1,325,250 Finance lease liabilities 1,491,097 1,860,108 3,351,205 Provision for employee benefits 142,183 1,279,112 40,623,295 42,044,590 $ 18,005,703 $ 3,822,726 $ 40,623,295 $ 62,451,724 2.7.2 Capital risk management The Company's objectives on managing capital are to safeguard the Company's ability to continue as a going concern and support the sustainable growth of the Company in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to enhance shareholders' value in the long term. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return of capital to shareholders, issue new shares or sell assets to reduce debt. In the opinion of the directors of the Company, the Company's capital risk is low. |
Fair value measurements | 2.8 Fair value measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurement for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Include other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which are supported by little or no market activity. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: the (1) market approach, (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities of the Company mainly consist of cash and cash equivalents, restricted cash, trade and other receivables, amounts due from related parties, and other current assets, trade payables, amounts due to related parties, accruals and other liabilities. As of 31 December 2018 and 2017, except for short term investments, the carrying values of cash and cash equivalents, restricted cash, trade receivables, amounts due from related parties, prepayments and other current assets, trade payables, amounts due to related parties, accruals and other liabilities approximate to their fair values due to the short-term maturity of these instruments. | |
Cash and cash equivalents | 2.9 Cash and cash equivalents Cash and cash equivalents include highly liquid investments with original maturities of three months or less. | |
Accounts receivable and other receivables, net | 2.10 Accounts receivable and other receivables, net Accounts and other receivables are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing accounts and other receivables and due from related parties. The Company determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. | |
Loan to related parties | 2.11 Loan to related parties The Company recognizes the contractual right to receive money on demand or on fixed or determinable dates as loans receivable. For those that the contractual maturity date is less than one year, the Company records as short-term loans receivable. The Company recognizes interest income on an accrual basis using the straight-line method over the fixed or determinable dates. | |
Fixed assets | 2.12 Fixed assets Fixed assets are stated at cost less accumulated depreciation. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Maintenance, repairs and betterments, including replacement of minor items, are charged to expense; major additions to physical properties are capitalized. Depreciation is calculated using the straight-line method over the following estimated useful lives. Estimated useful life Leasehold improvements Lesser of useful life or remaining lease term Tools and equipment 5 years Furniture, fixtures and office equipment 5 years Vehicles 5,10 years | |
Construction in progress | 2.13 Construction in progress Construction in progress is stated at cost less impairment losses, if any. Cost comprises direct costs of construction as well as interest expense and exchange differences capitalized during the periods of construction and installation. Capitalization of these costs ceases and the construction in progress is transferred to property, plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. No depreciation is provided for in respect of construction in progress until it is completed and ready for its intended use. | |
Assets acquired under finance leases | 2.14 Assets acquired under finance leases Where the Company acquires the use of assets under finance leases, the amounts representing the fair value of the leased asset, or, if lower, the present value of the minimum lease payments of such assets is included in property, plant and equipment and the corresponding liabilities, net of finance charges, are recorded as obligations under finance leases. Depreciation is provided for at rates, which write off the cost of the assets over the term of the relevant lease or, where it is likely the Company will obtain ownership of the asset, the useful life of the asset. Impairment losses are accounted for in accordance with the accounting policy. Finance charges implicit in the lease payments are charged to profit or loss over the period of the leases so as to produce an approximately constant periodic rate of charge on the remaining balance of the obligations for each accounting period. Contingent rentals are charged to profit or loss in the accounting period in which they are incurred. | |
Intangible assets, net | 2.15 Intangible assets, net Intangible assets represent computer software. The intangible assets are recorded at historic acquisition costs, and amortized on a straight-line basis over their estimated useful lives. Costs associated with maintaining computer software programs are recognized as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Company will be recognized as intangible assets when the criteria of intangible assets are met. Intangible assets are not amortized where their useful lives are assessed to be indefinite. The useful life of an intangible asset that is not being amortized is reviewed annually to determine whether events and circumstances continue to support the indefinite useful life assessment for that asset. Otherwise, the change in useful life assessment from indefinite to finite is accounted for prospectively from the date of change and in accordance with the policy for amortization of intangible assets with finite lives as set out above. | |
Impairment of long-lived assets | 2.16 Impairment of long-lived assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Company had originally estimated. When these events occur, the Company evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. | |
Trade and other payables | 2.17 Trade and other payables Trade and other payables are recognized at fair value. | |
Interest-bearing borrowings | 2.18 Interest-bearing borrowings Interest-bearing borrowings are recognized initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortized cost with any difference between the amount initially recognized and redemption value being recognized in profit or loss over the period of the borrowings, together with any interest and fees payable, using the effective interest method. | |
Revenue from contracts with customers | 2.9 Revenue from contracts with customers Effective 1 January 2018, the Company began recognizing revenue under IFRS 15, IFRS 15 The steps of the new revenue recognition process are as follows: Step 1: Identify the contract with the customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize the allocated revenue as the company satisfies each performance obligation | 2.19 Revenue from contracts with customers Effective 1 January 2018, the Company began recognizing revenue under IFRS 15, using the modified retrospective transition method. The adoption of IFRS 15 had no material impact on the Company's consolidated financial statements, and there was no adjustment to the deficit on 1 January 2018. The core principle of this new revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Step 1: Identify the contract with the customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when the company satisfies a performance obligation Revenue from the provision of services, which includes cash in-transit-dedicated vehicles, cash in-transit--non dedicated vehicles, ATM management and other services are recognized at a point in time when the services have been rendered to customers. Revenue from provision of cash in- transit -non dedicated and vehicles and ATM management is recognized at a point in time upon provision of such services for which the service period is usually per trip. Interest income is recognized using the effective interest method. The Company will only apply the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods it transfers to the customer. The Company does not offer promotional payments, customer coupons, rebates or other cash redemption offers to its customers. |
Cost of Revenue | 2.10 Cost of Revenue Cost of revenue consists primarily of internal labor cost and related benefits, and other overhead costs that are directly attributable to services provided. | 2.20 Cost of Revenue Cost of revenue consists primarily of internal labor cost and related benefits, and other overhead costs that are directly attributable to services provided |
Income tax | 2.21 Income tax Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of profit or loss in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. The Company offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered. | |
Provisions | 2.22 Provisions Provisions are recognized for liabilities of uncertain timing or amount when the Company has a legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and the amount can be estimated reliably. Where the time value of money is material, provisions are stated at the present value of the expenditures expected to settle the obligation. Where it is probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events, are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote. | |
Employee benefits | 2.23 Employee benefits The Company provides for retirement benefits payable for the employees of the subsidiaries in Thailand under the Thai Labor Law depending on the salary and years of service of the respective employees. The obligation is calculated by an independent actuary using the projected unit credit method. The present value of the obligation is determined by discounting with the interest rates of government bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related liabilities. The sensitivity analysis is determined by i) discount rate; ii) salary increase rate; iii) turnover rate; and iv) life expectancy. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to the statement of profit or loss in the period in which they arise. | |
Operating Leases | 2.24 Operating Leases Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of profit or loss and comprehensive income (loss) on a straight-line basis over the lease period. | |
Related parties | 2.25 Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. | |
Earnings per share (“EPS”) | 2.26 Earnings per share ("EPS") Basic EPS is calculated by dividing the net income (loss) available to common shareholders by the weighted average number of ordinary shares outstanding during the year. Diluted EPS is calculated by using the weighted average number of ordinary shares outstanding adjusted to include the potentially dilutive effect of outstanding share-based awards and convertible debt instruments, unless their inclusion in the calculation is anti-dilutive. | |
Recent Accounting Pronouncements | 2.11 Recent Accounting Pronouncements The following new standards and amendments to standards have been issued but are not effective for the financial year beginning 1 January 2020 and have not been early adopted by the Company: Effective for annual IFRS 3 Definition of business 1 January 2020 Amendment to IAS 1 and IAS 8 Definition of Material 1 January 2020 Conceptual Framework for Financial Reporting 2018 Revised Conceptual Framework for Financial Reporting 1 January 2020 IFRS 17 Insurance contracts 1 January 2020 Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture To be determined The directors of the Company are in the process of assessing the financial impact of the adoption of the above new standards and amendments to standards. The directors of the Company will adopt the new standards and amendments to standards when they become effective. | 2.27 Recent Accounting Pronouncements The Company has applied IFRS 15, and IFRS 9 since 1 January 2018. Several other amendments and interpretations apply for the first time in 2018, but do not have an impact on the consolidated financial statements of the Company. The Company has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective. IFRS 15 Revenue from Contracts with Customers supersedes IAS 11 Construction Contracts, IAS 18 Revenue and related Interpretations and it applies, with limited exceptions, to all revenue arising from contracts with customers. IFRS 15 establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue be recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring services or goods to a customer. IFRS 15 requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, the standard requires extensive disclosures. The new standard and amendments were adopted as of 1 January 2018 and did not have a significant effect on the consolidated financial information of the Company. IFRS 9 Financial Instruments replaces IAS 39 Financial Instruments: Recognition and Measurement for annual periods beginning on or after January 1, 2018, bringing together all three aspects of the accounting for financial instruments: classification and measurement; impairment: and hedge accounting. The new standard and amendments were adopted as of 1 January 2018 and did not have a significant effect on the consolidated financial information of the Company. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Significant Accounting Policies [Abstract] | ||
Schedule of currency exchange rates impact | Period End Rate Average Rate 30 June 31 December For the Six Months Ended 30 June 2019 2018 2019 2018 Thai Baht 0.0325 0.0307 0.0318 0.0314 Hong Kong Dollar 0.1280 0.1280 0.1280 0.1280 | Period End Rate Average Rate As of 31 December For the Year Ended 2018 2017 2018 2017 Thai Baht 0.0307 0.0306 0.0309 0.0296 Hong Kong Dollar 0.1280 0.1280 0.1280 0.1280 |
Schedule of non-derivative financial liabilities | Year ended 31 December 2018 Within 1 to 5 years >5 years Total Trade and other payables $ 3,887,915 $ - $ - $ 3,887,915 Borrowings from financial institutions 1,068,299 481,529 - 1,549,828 Borrowings from third party 13,730,531 - - 13,730,531 Other current liabilities 1,630,077 - - 1,630,077 Finance lease liabilities 1,102,209 2,205,045 - 3,307,254 Provision for employee benefits 554,241 1,618,757 39,761,537 41,934,535 $ 21,973,272 $ 4,305,331 $ 39,761,537 $ 66,040,140 Year ended 31 December 2017 Within 1 year 1 to 5 years >5 years Total Trade and other payables $ 1,940,690 $ - $ - $ 1,940,690 Borrowings from financial institutions 720,050 683,506 - 1,403,556 Borrowing from related party 12,386,433 - - 12,386,433 Other current liabilities 1,325,250 - - 1,325,250 Finance lease liabilities 1,491,097 1,860,108 3,351,205 Provision for employee benefits 142,183 1,279,112 40,623,295 42,044,590 $ 18,005,703 $ 3,822,726 $ 40,623,295 $ 62,451,724 | |
Schedule of estimated useful lives | Estimated useful life Leasehold improvements Lesser of useful life or remaining lease term Tools and equipment 5 years Furniture, fixtures and office equipment 5 years Vehicles 5,10 years | |
Schedule of leases | As at 2019 (Unaudited) Operating lease commitments disclosed at 31 December 2018 $ 7,601,122 Discounted using lessee's incremental borrowing rate as of 1 January 2019 7,271,152 Less: short-term leases recognized on a straight-line basis as expense - Less: low value leases recognized on a straight-line basis as expense - Lease liabilities recognized as at 1 January 2019 $ 7,271,152 As at 2019 (Unaudited) The liability is classified as follows: Current lease liabilities $ 2,835,925 Non-current lease liabilities 4,435,227 $ 7,271,152 | |
Schedule of contractual undiscounted cash flows | As at 2019 (Unaudited) Less than 1 year $ 2,513,758 More than 1 year 3,607,784 $ 6,121,542 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Cash and cash equivalents [abstract] | ||
Schedule of cash and cash equivalents restricted cash | As at As at 2018 (Unaudited) Cash on hand $ 582,283 $ 376,750 Cash at bank 2,277,049 4,055,585 Subtotal 2,859,332 4,432,335 Restricted cash 1,413,434 1,029,230 Cash, cash equivalents, and restricted cash $ 4,272,766 $ 5,461,565 | 31 December 2018 2017 Cash on hand $ 376,750 $ 351,018 Cash at bank 4,055,585 2,918,848 Subtotal 4,432,335 3,269,866 Restricted cash 1,029,230 968,572 Cash, cash equivalents, and restricted cash $ 5,461,565 $ 4,238,438 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Accounts Receivable, Net [Abstract] | ||
Schedule of accounts receivables, net | As at 2019 As at 2018 (Unaudited) Accounts receivable-contracted customers $ 5,518,072 $ 5,933,584 Accounts receivable-related parties (Note 20) - 702 Allowance for doubtful accounts (21,694 ) (21,316 ) Accounts receivable, net $ 5,496,378 $ 5,912,970 | 31 December 2018 2017 Accounts receivable-contracted customers $ 5,933,584 $ 5,798,235 Accounts receivable-related parties (Note 19) 702 707 Allowance for doubtful accounts (21,316 ) (568 ) Accounts receivable, net $ 5,912,970 $ 5,798,374 |
Schedule of accounts receivables | Accounts receivable-days past due Current <30 31-60 61-90 91-180 Total Gross carrying amount $ 1,937,221 $ 3,855,228 $ 60,431 $ 12,425 $ 68,980 $ 5,934,285 Allowance - - - (621 ) (20,694 ) (21,315 ) Net $ 1,937,221 $ 3,855,228 $ 60,431 $ 11,804 $ 48,286 $ 5,912,970 Accounts receivable-days past due Current <30 31-60 61-90 91-180 Total Gross carrying amount $ 2,251,060 $ 3,412,051 $ 132,345 $ 1,911 $ 1,576 $ 5,798,943 Allowance - - - (96 ) (473 ) (569 ) Net $ 2,251,060 $ 3,412,051 $ 132,345 $ 1,815 $ 1,103 $ 5,798,374 |
Other Receivables (Tables)
Other Receivables (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Other Receivables [Abstract] | ||
Schedule of other receivables | As at 2019 As at (Unaudited) Due from related parties (Note 20) $ 97,514 $ 92,112 Advance to employees 47,078 12,020 Total $ 144,592 $ 104,132 | 31 December 2018 2017 Amount due from related parties (Note 19) $ 92,112 $ 92,961 Advance to employees 12,020 15,888 Others - 1,048 Other receivables $ 104,132 $ 109,897 |
Other Current and Non-Current_2
Other Current and Non-Current Assets (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Other Current and Non-Current Assets [Abstract] | ||
Schedule of other current and non-current assets | As at As at (Unaudited) Input VAT receivable $ 330,765 $ 358,179 Prepayments-office rental 575,543 842,150 Prepayments-insurance 436,186 5,861 Prepayments-others 44,700 258,718 Uniforms 52,088 36,418 Tools and supplies 189,178 118,977 Other current assets $ 1,628,460 $ 1,620,303 Deposit $ 330,584 $ 303,320 Others 6,577 - Other non-current assets $ 337,161 $ 303,320 | 31 December 2018 2017 Input VAT receivable $ 358,179 $ 335,510 Prepayments-office rental 842,150 765,370 Prepayments-insurance 5,861 120,372 Prepayments-others 258,718 125,753 Uniforms 36,418 97,850 Tools and supplies 118,977 144,448 Other current assets $ 1,620,303 $ 1,589,303 Deposit $ 303,320 $ 308,307 Other non-current assets $ 303,320 $ 308,307 |
Leasehold Improvements, Equip_2
Leasehold Improvements, Equipment and Other Fixed Assets (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Leasehold Improvements, Equipment and Other Fixed Assets [Abstract] | ||
Schedule of leasehold improvements, equipment and other fixed assets | Leasehold improvements Machinery and equipment Office decoration and equipment Vehicles Assets under construction Total Cost At 1 January 1 2019 $ 2,888,288 $ 6,467,812 $ 6,081,943 $ 17,614,629 $ 950,095 $ 34,002,767 Additions 151,023 7,421 38,885 - 593,829 791,158 Disposals (1,579 ) (165,255 ) (36,278 ) (1,052,498 ) - (1,255,610 ) Transfers in(out) 268,170 15,978 186,446 58,542 (529,136 ) - Exchange differences 178,450 375,157 360,096 1,007,917 57,051 1,978,671 At 30 June 2019 (Unaudited) 3,484,352 6,701,113 6,631,092 17,628,590 1,071,839 35,516,986 Depreciation At 1 January 2019 2,353,333 5,503,362 4,527,915 11,442,195 - 23,826,805 Depreciation charged for the period 77,126 310,990 195,032 717,966 - 1,301,114 Disposal (841 ) (164,978 ) (36,183 ) (1,051,697 ) - (1,253,699 ) Exchange differences 139,405 325,271 268,497 661,809 - 1,394,982 As 30 June 2019 2,569,023 5,974,645 4,955,261 11,770,273 - 25,269,202 Net book value At 30 June 2019 (Unaudited) $ 915,329 $ 726,468 $ 1,675,831 $ 5,858,317 $ 1,071,839 $ 10,247,784 | Leasehold improvements Machinery and equipment Office decoration and equipment Vehicles Assets under construction Total Cost At 1 January 1 2017 $ 2,586,222 $ 5,138,073 $ 4,084,144 $ 15,206,297 $ 38,371 $ 27,053,107 Additions 13,031 124,283 338,912 1,314,849 1,114,160 2,905,235 Disposals (5,586 ) (30,609 ) (40,224 ) (878,198 ) - (954,617 ) Transfers in(out) 11,568 528,390 215,392 - (755,350 ) Exchange differences 243,590 502,919 400,395 1,442,791 15,258 2,604,953 At 31 December 2017 2,848,825 6,263,056 4,998,619 17,085,739 412,439 31,608,678 Additions 28,271 259,424 803,285 1,197,559 912,525 3,201,064 Disposals - (181,444 ) (1,438 ) (733,602 ) - (916,484 ) Transfers in(out) - 103,056 269,445 - (372,501 ) - Exchange differences 11,192 23,720 12,032 64,933 (2,368 ) 109,509 At 31 December 2018 2,888,288 6,467,812 6,081,943 17,614,629 950,095 34,002,767 Depreciation At 1 January 2017 1,875,404 3,975,682 3,527,561 9,621,204 - 18,999,851 Depreciation charged for the year 161,320 597,260 333,622 1,156,790 - 2,248,992 Disposal (5,585 ) (29,597 ) (31,502 ) (868,635 ) - (935,319 ) Exchange differences 181,249 391,945 341,221 913,258 - 1,827,673 As 31 December 2017 2,212,388 4,935,290 4,170,902 10,822,617 - 22,141,197 Depreciation charged for the year 133,080 656,952 344,308 1,312,393 - 2,446,733 Disposal - (104,522 ) (1,437 ) (731,812 ) - (837,771 ) Exchange differences 7,865 15,642 14,142 38,997 - 76,646 As 31 December 2018 2,353,333 5,503,362 4,527,915 11,442,195 - 23,826,805 Net book value At 31 December 2018 534,955 964,450 1,554,028 6,172,434 950,095 10,175,962 At 31 December 2017 $ 636,437 $ 1,327,766 $ 827,717 $ 6,263,122 $ 412,439 $ 9,467,481 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Intangible Assets, Net [Abstract] | ||
Schedule of intangible assets, net | Computer software Cost At 1 January 2019 $ 846,958 Additions 42,607 Exchange differences 29,441 At 30 June 2019 (Unaudited) 919,006 Accumulated amortization At 1 January 2019 617,618 Amortization charged for the period 20,164 Exchange differences 36,590 At 30 June 2019 (Unaudited) 674,372 Net book value At 30 June 2019 (Unaudited) $ 244,634 | Computer software Cost At 1 January 2017 $ 586,671 Additions 98,311 Exchange differences 58,310 At 31 December 2017 743,292 Additions 101,446 Exchange differences 2,220 At 31 December 2018 846,958 Accumulated amortization At 1 January 2017 490,049 Amortization charged for the year 39,179 Exchange differences 47,312 As 31 December 2017 576,540 Amortization charged for the year 39,061 Exchange differences 2,017 As 31 December 2018 617,618 Net book value At 31 December 2018 $ 229,340 At 31 December 2017 $ 166,752 |
Trade and Other Payables (Table
Trade and Other Payables (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Trade and other payables [abstract] | ||
Schedule of trade and other payables | As at As at (Unaudited) Trade accounts payable - other companies $ 888,155 $ 1,442,262 Amounts due to related companies (Note 20) 1,838,257 2,118,424 Accrued salaries and bonus 492,606 210,537 Accrued customer claims 359,926 116,692 Trade and other payables $ 3,578,944 $ 3,887,915 | 31 December 2018 2017 Trade accounts payable- other companies $ 1,442,262 $ 1,556,834 Amounts due to related companies (Note 19) 2,118,424 124,460 Accrued salaries and bonus 210,537 76,444 Accrued customer claims 116,692 182,952 Trade and other payables $ 3,887,915 $ 1,940,690 Output Vat $ 78,479 $ 100,040 Accrued Expense 740,899 420,090 Payroll Payable 589,030 519,235 Other Payable 221,669 285,885 Other current liabilities $ 1,630,077 $ 1,325,250 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Current Liabilities [Abstract] | |
Schedule of other current liabilities | As at As at (Unaudited) Output VAT $ 80,565 $ 78,479 Accrued expenses 930,341 740,899 Payroll payable 382,054 589,030 Other payables 184,618 221,669 Other current liabilities $ 1,577,578 $ 1,630,077 |
Borrowings from Fainancial In_2
Borrowings from Fainancial Institutions (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Borrowings from Fainancial Institutions [Abstract] | ||
Schedule of borrowings from financial institutions | As at As at (Unaudited) Current portion of long-term borrowings $ 695,090 $ 1,007,787 Long-term borrowings 333,457 465,379 Total borrowings from financial institutions $ 1,028,547 $ 1,473,166 | 31 December 2018 2017 Current portion of long-term borrowings $ 1,007,787 $ 661,964 Long-term borrowings 465,379 661,964 Borrowing from financial institutions $ 1,473,166 $ 1,323,928 |
Finance Lease Liabilities (Tabl
Finance Lease Liabilities (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Finance Lease Liabilities [Abstract] | ||
Schedule of finance lease liabilities | As at As at (Unaudited) Current portion $ 332,957 $ 974,211 Non-current portion 2,126,122 2,008,614 Finance lease liabilities $ 2,459,079 $ 2,982,825 | 31 December 2018 2017 Current portion $ 974,211 $ 1,351,327 Non-current portion 2,008,614 1,716,597 Finance lease liabilities $ 2,982,825 $ 3,067,924 |
Schedule of minimum lease payments under finance lease agreements | As at As at (Unaudited) Within 1 year $ 392,703 $ 1,102,209 After 1 year but within 5 years 2,331,044 2,205,045 Less: Future finance charges on finance leases (264,668 ) (324,429 ) Present value of finance lease liabilities, net $ 2,459,079 $ 2,982,825 | 31 December 2018 2017 Within 1 year $ 1,102,209 $ 1,491,098 After 1 year but within 5 years 2,205,045 1,860,108 Less: Future finance charges on finance leases (324,429 ) (283,282 ) Present value of finance lease liabilities, net $ 2,982,825 $ 3,067,924 |
Schedule of leased assets under a finance lease | As at As at (Unaudited) Cost $ 7,529,374 $ 7,113,238 Less: Accumulated depreciation (3,037,293 ) (2,461,410 ) Net book value $ 4,492,081 $ 4,651,828 | 31 December 2018 2017 Cost $ 7,113,238 $ 6,452,082 Less: Accumulated depreciation (2,461,410 ) (2,289,990 ) Net book value $ 4,651,828 $ 4,162,092 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Taxation [Abstract] | |
Schedule of components of the income tax provision | For the year ended 31 December 31 December Current income tax expense $ - $ - Deferred income tax expense 119,953 173,060 Total income tax expense $ 119,953 $ 173,060 |
Schedule of reconciliation between the statutory tax rate to income before income taxes and the actual provision for income taxes | For the year ended 31 December 31 December Profit before income tax expense $ 474,512 $ 1,323,634 Thailand income tax statutory rate 20 % 20 % Income tax at statutory tax rate 94,902 264,727 Permanent differences 25,051 (91,667 ) Income tax expense (benefit) $ 119,953 $ 173,060 |
Schedule of deferred tax assets and liabilities | 31 December 2018 2017 Provision for employee benefits $ 1,123,867 $ 1,045,868 Net operating loss carried forward 233,725 312,008 Deferred tax assets 1,357,592 1,357,876 Less: Deferred tax liabilities - finance leases 377,073 262,681 Deferred tax assets-net $ 980,519 $ 1,095,195 |
Provision for Employee Benefi_2
Provision for Employee Benefits (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Provision for Employee Benefits [Abstract] | ||
Schedule of present value of defined benefit obligation | PROVISION FOR EMPLOYEE BENEFITS Defined benefit obligations at 31 December 2018 $ 5,619,337 Estimate for the six months period 517,557 Defined benefit obligations at 30 June 2019 (Unaudited) $ 6,136,894 | 31 December 2018 2017 Defined benefit obligations at 1 January $ 5,229,340 $ 3,830,460 Benefits paid during the year (343,944 ) (381,229 ) Current service costs 674,360 517,058 Interest 128,509 114,441 Past service cost and loss on settlement 36,907 594,541 Actuarial (losses) gains recognized in the income statement (123,997 ) 161,519 Exchange differences 18,162 392,550 Defined benefit obligations at 31 December $ 5,619,337 $ 5,229,340 |
Administrative Expenses (Tables
Administrative Expenses (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Administrative Expenses [Abstract] | ||
Schedule of administrative expenses | For the six months ended 30 June 30 June Staff expense $ 1,417,813 $ 1,320,135 Rental expenses 568,164 538,635 Depreciation and amortization expense 95,959 73,546 Utilities expense 261,735 245,594 Travelling and entertainment expense 86,568 70,713 Professional fees 268,531 66,171 Repair and maintenance 35,741 54,461 Employee benefit expense 237,546 65,291 Other service fees 101,911 97,274 Other expenses 349,267 338,420 Total $ 3,423,235 $ 2,870,240 | For the year ended 31 December 31 December Staff expense $ 2,134,718 $ 1,923,199 Loan penalty charge 575,923 - Rental expenses 480,519 441,223 Depreciation and amortization expense 147,873 97,582 Utilities expense 147,436 153,133 Travelling and entertainment expenses 135,016 128,382 Professional fees 151,742 84,513 Repairs and maintenance 98,384 80,460 Employee benefit expenses 94,293 77,305 Other service fees 69,310 55,244 Office expenses 245,374 278,708 Other expenses 231,261 87,564 $ 4,511,849 $ 3,407,313 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Related Party Transactions [Abstract] | ||
Schedule of amounts due from related parties | As at As at (Unaudited) Long Top Limited (Loan to related parties) $ 310,567 $ 303,246 Guardforce Group Limited (Other receivables) 89,665 84,709 Guardforce TH Group Company Limited (Other receivables) 7,849 7,403 Bangkok Bank Public Company Limited (Accounts receivable, net) - 702 $ 408,081 $ 396,060 | 31 December 2018 2017 Long Top Limited (Loan to related parties) $ 303,246 $ - Guardforce Group Limited (Other receivable) 84,709 84,371 Guardforce TH Group Company Limited (Other receivable) 7,403 6,134 Guardforce Security (Thailand) Company Limited (Other receivable) - 2,456 Bangkok Bank Public Company Limited (Other receivable/Accounts receivable, net) 702 707 $ 396,060 $ 93,668 |
Schedule of amounts due to related parties | As at As at 31 December (Unaudited) Mr. Tu Jingyi (Trade and other payables) 1,537,327 1,837,327 Junwei Capital Group Ltd. (Trade and other payables) 224,766 149,741 Guardforce Security (Thailand) Co., Ltd (Trade and other payables) 69,780 124,825 Guardforce 3 Limited (Trade and other payables) 5,601 5,291 Guardforce Aviation Security Co., Ltd (Trade and other payables) 783 1,240 $ 1,838,257 $ 2,118,424 | 31 December 2018 2017 Guardforce TH Group Company Limited (Borrowings from related party) $ - $ 12,386,433 Tu Jingyi (Trade and other payables) 1,837,327 - Junwei Capital Group Ltd. (Trade and other payables) 149,741 - Guardforce Security (Thailand) Co.,Ltd (Trade and other payables) 124,825 118,475 Guardforce 3 Limited (Trade and other payables) 5,291 5,270 Guardforce Aviation Security Co.,Ltd (Trade and other payables) 1,240 715 $ 2,118,424 $ 12,510,893 |
Schedule of related party transactions | For the six months ended Nature 30 June 30 June (Unaudited) (Unaudited) Guardforce Security (Thailand) Co., Ltd (a) $ 371,362 $ 350,740 Guardforce Aviation Security Co., Ltd (b) 5,116 3,756 $ 376,478 $ 354,496 Nature of transactions: (a) Guardforce Security (Thailand) Co., Ltd. provided security guard services to the Company. (b) Guardforce Aviation Security Co., Ltd. provided escort services to the Company. | For the year ended Nature 31 December 31 December Guardforce Security (Thailand) Co.,Ltd (a) $ 695,594 $ 639,397 Guardforce Aviation Security Co.,Ltd (b) 6,853 5,741 $ 702,447 $ 645,138 Nature of transactions: (a) Guardforce Security (Thailand) Co.,Ltd. provided security guard services to the Company. (b) Guardforce Aviation Security Co.,Ltd. provided escort services to the Company. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies [Abstract] | ||
Schedule of operating lease commitments | Amount Year ending 31 December: 2019 $ 2,835,921 2020 2,041,438 2021 1,580,334 2022 930,949 2023 51,181 2024 and thereafter 161,299 Total minimum payment required $ 7,601,122 | |
Schedule of future payments for employment agreements | Amount Year ending 30 June: 2020 $ 501,443 2021 476,186 2022 31,371 Total minimum payment required $ 1,009,000 | Amount Year ending 31 December: 2019 $ 251,413 2020 592,803 2021 220,694 Total minimum payment required $ 1,064,910 |
Schedule of capital expenditure commitments | Payments Due by Period Less than 1-3 3-5 More than Contractual Obligations Nature Total 1 year years years 5 years Service fee commitments (a) $ 2,322,053 $ 741,829 $ 1,125,281 $ 454,943 $ - Total $ 2,322,053 $ 741,829 $ 1,125,281 $ 454,943 $ - (a) The Company has commitments to pay certain service fees to Stander Information Company Limited, as its service provider to provide technical services for operating systems, that comprise a monthly fixed amount and certain other fees as specified in the agreement. | Payments Due by Period Less than 1-3 4-5 More than Contractual Obligations Nature Total 1 year years years 5 years Service fee commitments (a) $ 1,620,960 $ 331,560 $ 675,400 $ 614,000 $ - Asset construction commitments (b) 216,326 216,326 - - - Total $ 1,837,286 $ 547,886 $ 675,400 $ 614,000 $ - (a) The Company has commitments to pay certain service fees to Stander Information Company Limited, as its service provider to provide technical services for operating systems, that comprise a monthly fixed amount and certain other fees as specified in the agreement. (b) Represents asset under construction for certain office equipment and IT equipment and vehicles. |
Concentrations (Tables)
Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Concentrations [Abstract] | |
Schedule of company’s revenue | For the year ended 31 December % of net revenue 31 December % of net revenue Company A $ 9,992,800 26.8 % $ 9,582,307 27.8 % Company B 6,233,599 16.7 % 6,130,137 17.8 % Company C 4,582,495 12.3 % 4,315,735 12.5 % $ 20,808,894 55.8 % $ 20,028,179 58.1 % |
Schedule of company of accounts receivable | 31 December % account 31 December % account Company A $ 1,332,809 22.5 % $ 1,734,059 29.9 % Company B 1,085,142 18.4 % 870,099 15.0 % Company C 600,219 10.2 % - - $ 3,018,170 51.1 % $ 2,604,158 44.9 % |
Condensed Financial Informati_2
Condensed Financial Information of the Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information of the Parent Company [Abstract] | |
Schedule of condensed financial information of the Parent Company | STATEMENT OF FINANCIAL POSITION - PARENT COMPANY ONLY 31 December 2018 (Unaudited) Assets Current assets: Cash and cash equivalents $ 462,485 Amount due from subsidiaries 390,000 Investment in subsidiaries 1,289,522 Total assets $ 2,142,007 Liabilities Current liabilities: Trade and other payables $ 1,029,347 Total liabilities 1,029,347 Shareholders' equity Common stock - Authorized 50,000,000 shares, par value $0.001 50,000 Subscription of receivable (50,000 ) Additional paid in capital 2,360,204 Legal reserve 223,500 Accumulated Deficit (1,680,322 ) Other comprehensive income 209,278 Total shareholders' equity 1,112,660 Total liabilities and shareholders' equity $ 2,142,007 STATEMENT OF PROFIT AND LOSS AND COMPREHENSIVE INCOME (LOSS) - PARENT COMPANY ONLY For the year 31 December 2018 (Unaudited) Revenue $ - Cost of revenue - Gross margin - Administrative expenses (177,009 ) Loss from operating (177,009 ) Other income 147 Equity income of subsidiaries 349,783 Profit before income tax expenses 172,921 Income tax expenses - Net profit for the year 172,921 Total comprehensive income for the year $ 172,921 STATEMENT OF CASH FLOWS For the year 31 December 2018 (Unaudited) Operating activities Net profit $ 172,921 Adjustments to reconcile to net income to net cash used in operating activities Equity gain of subsidiaries (349,783 ) Changes in operating assets and liabilities: Accounts and other receivables, net (390,000 ) Trade and other payables 1,029,347 Net cash provided by operating activities 462,485 Net increase in cash and cash equivalents, and restricted cash 462,485 Cash and cash equivalents, and restricted cash at beginning of year - Cash and cash equivalents, and restricted cash at end of year $ 462,485 |
Nature of Operations (Details)
Nature of Operations (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Nature of Operations (Textual) | |||||
Ordinary plus preferred shares outstanding | 50,000,000 | 50,000,000 | 50,000,000 | ||
Shares outstanding value | $ 1,178,200 | $ 1,172,512 | $ 2,351,760 | $ 1,991,138 | $ 4,634,069 |
AI Holding Limited [Member] | |||||
Nature of Operations (Textual) | |||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | |||
AI Robots Limited [Member] | |||||
Nature of Operations (Textual) | |||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | |||
AI Hong Kong Limited [Member] | |||||
Nature of Operations (Textual) | |||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | |||
Southern Ambition Limited [Member] | |||||
Nature of Operations (Textual) | |||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | |||
Shares outstanding ownership | 48,999 | 48,999 | |||
Horizon Dragon Limited [Member] | |||||
Nature of Operations (Textual) | |||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | |||
Shares outstanding ownership | 1 | 1 | |||
AI Thailand [Member] | |||||
Nature of Operations (Textual) | |||||
Proportion of ownership interest in subsidiary | 49.00% | 49.00% | |||
Ordinary plus preferred shares outstanding | 100,000 | 100,000 | |||
Shares outstanding value | $ 16,000 | ||||
Cumulative preferred shares value | $ 17,000 | ||||
Dividends per share declared | $ 0.03 | $ 0.03 | |||
Cumulative unpaid dividends | $ 1,700 | $ 1,700 | |||
Shareholders voting power, description | On 21 September 2018 and has 100,000 ordinary plus preferred shares outstanding. 48,999 of the shares in AI Thailand are owned by Southern Ambition Limited, with one share being held by Horizon Dragon Limited, for an aggregate of 49,000 ordinary shares, or 49%, and 51,000 cumulative preferred shares are owned by two individuals of Thailand on behalf of Guardforce AI Technology Limited. The 49,000 ordinary shares with a value of approximately $16,000 and the value of the cumulative preferred shares of approximately $17,000 has not been received as of 31 December 2018. The cumulative preferred shares are entitled to dividends of USD$ 0.03 per share when declared. The cumulative unpaid dividends of the preferred shares as of 31 December 2018 is approximately USD$ 1,700. Pursuant to the articles of associates of AI Thailand, the holder of an ordinary share may cast one vote per share at a general meeting of shareholders, the holder of preferred shares may cast one vote for every 20 preferred shares held at a general meeting of shareholders. Southern Ambition is entitled to cast more than 95% of the votes at a general meeting of shareholders. | On 21 September 2018 and has 100,000 ordinary plus preferred shares outstanding. 48,999 of the shares in AI Thailand are owned by Southern Ambition Limited, with one share being held by Horizon Dragon Limited, for an aggregate of 49,000 ordinary shares, or 49%, and 51,000 cumulative preferred shares are owned by two individuals of Thailand on behalf of Intelligent High Technology Holding Company Limited. The 49,000 ordinary shares with a value of approximately $16,000 and the value of the cumulative preferred shares of approximately $17,000 has not been received as of 31 December 2018. The cumulative preferred shares are entitled to dividends of USD$ 0.03 per share when declared. The cumulative unpaid dividends of the preferred shares as of 31 December 2018 is approximately USD$ 1,700. Pursuant to article of associates of AI Thailand, the holder of an ordinary share may cast one vote per share at a general meeting of shareholders, the holder of preferred shares may cast one vote for every 20 preferred shares held at a general meeting of shareholders. Southern Ambition is entitled to cast more than 95% of the votes at a general meeting of shareholders. | |||
Guardforce Cash Solutions Security Thailand Co., Limited [Member] | |||||
Nature of Operations (Textual) | |||||
Proportion of ownership interest in subsidiary | 99.07% | 99.07% | |||
Ordinary plus preferred shares outstanding | 3,857,144 | 3,857,144 | |||
Shares outstanding ownership | 3,799,544 | 3,799,544 | |||
Shareholders voting power, description | On July 27, 1982 and has 3,857,144 outstanding ordinary and preferred shares. 3,799,544 ordinary shares and 21,599 preferred shares of the outstanding shares in GF Cash (CIT) (approximately 99.07% of the shares in GF Cash (CIT)) are owned by AI Thailand with one share being held by Southern Ambition and 33,600 ordinary shares and 2,400 preferred shares (approximately 0.933% of the shares in GF Cash (CIT)) being held by Bangkok Bank Public Company Limited. Pursuant to the articles of associates, a shareholder may cast one vote per one share at a general meeting of shareholders. AI Thailand is entitled to cast 99.07% of the votes at a general meeting of shareholders. | On July 27, 1982 and has 3,857,144 outstanding shares. 3,799,544 ordinary shares and 21,599 preferred shares of the outstanding shares in GF Cash (CIT) (approximately 99.07% of the shares in GF Cash (CIT)) are owned by AI Thailand with one share being held by Southern Ambition and 33,600 ordinary shares and 2,400 preferred shares (approximately 0.933% of the shares in GF Cash (CIT)) being held by Bangkok Bank Public Company Limited. Pursuant to the articles of associatesa shareholder may cast one vote per one share at a general meeting of shareholders. AI Thailand is entitled to cast 99.07% of the votes at a general meeting of shareholders. | |||
Number of preferred shares outstanding | 21,599 | 21,599 | |||
Intelligent High Technology Holding Company Limited [Member] | |||||
Nature of Operations (Textual) | |||||
Shares outstanding ownership | 51,000 | 51,000 | |||
AI Thailand and Southern Ambition [Member] | |||||
Nature of Operations (Textual) | |||||
Proportion of ownership interest in subsidiary | 97.00% | 97.00% |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - $ / shares | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Thai Baht [Member] | ||||
Statement Line Items [Line Items] | ||||
Period End Rate | 0.0325 | 0.0307 | 0.0306 | |
Average Rate | 0.0318 | 0.0314 | 0.0309 | 0.0296 |
Hong Kong Dollar [Member] | ||||
Statement Line Items [Line Items] | ||||
Period End Rate | 0.1280 | 0.1280 | 0.1280 | |
Average Rate | 0.1280 | 0.1280 | 0.1280 | 0.1280 |
Significant Accounting Polici_5
Significant Accounting Policies (Details 1) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Line Items [Line Items] | |||
Trade and other payables | $ 3,578,944 | $ 3,887,915 | $ 1,940,690 |
Borrowings from financial institutions | 1,549,828 | 1,403,556 | |
Borrowings from third party | 13,730,531 | 12,386,433 | |
Other current liabilities | $ 1,577,578 | 1,630,077 | 1,325,250 |
Finance lease liabilities | 3,307,254 | 3,351,205 | |
Provision for employee benefits | 41,934,535 | 42,044,590 | |
Non-derivative financial liabilities | 66,040,140 | 62,451,724 | |
Within 1 year [Member] | |||
Statement Line Items [Line Items] | |||
Trade and other payables | 3,887,915 | 1,940,690 | |
Borrowings from financial institutions | 1,068,299 | 720,050 | |
Borrowings from third party | 13,730,531 | 12,386,433 | |
Other current liabilities | 1,630,077 | 1,325,250 | |
Finance lease liabilities | 1,102,209 | 1,491,097 | |
Provision for employee benefits | 554,241 | 142,183 | |
Non-derivative financial liabilities | 21,973,272 | 18,005,703 | |
1 to 5 years [Member] | |||
Statement Line Items [Line Items] | |||
Trade and other payables | |||
Borrowings from financial institutions | 481,529 | 683,506 | |
Borrowings from third party | |||
Other current liabilities | |||
Finance lease liabilities | 2,205,045 | 1,860,108 | |
Provision for employee benefits | 1,618,757 | 1,279,112 | |
Non-derivative financial liabilities | 4,305,331 | 3,822,726 | |
>5 years [Member] | |||
Statement Line Items [Line Items] | |||
Trade and other payables | |||
Borrowings from financial institutions | |||
Borrowings from third party | |||
Other current liabilities | |||
Finance lease liabilities | |||
Provision for employee benefits | 39,761,537 | 40,623,295 | |
Non-derivative financial liabilities | $ 39,761,537 | $ 40,623,295 |
Significant Accounting Polici_6
Significant Accounting Policies (Details 2) | 12 Months Ended |
Dec. 31, 2018 | |
Leasehold improvements [Member] | |
Statement Line Items [Line Items] | |
Estimated useful life, description | Lesser of useful life or remaining lease term |
Office decoration and equipment [Member] | |
Statement Line Items [Line Items] | |
Estimated useful life | 5 years |
Furniture, fixtures and office equipment [Member] | |
Statement Line Items [Line Items] | |
Estimated useful life | 5 years |
Vehicles [Member] | Minimum [Member] | |
Statement Line Items [Line Items] | |
Estimated useful life | 5 years |
Vehicles [Member] | Maximum [Member] | |
Statement Line Items [Line Items] | |
Estimated useful life | 10 years |
Significant Accounting Polici_7
Significant Accounting Policies (Details 3) | Jan. 01, 2019USD ($) |
Significant Accounting Policies [Abstract] | |
Operating lease commitments disclosed at 31 December 2018 | $ 7,601,122 |
Discounted using lessee's incremental borrowing rate as of 1 January 2019 | 7,271,152 |
Less: short-term leases recognized on a straight-line basis as expense | |
Less: low value leases recognized on a straight-line basis as expense | |
Lease liabilities recognized as at 1 January 2019 | $ 7,271,152 |
Significant Accounting Polici_8
Significant Accounting Policies (Details 4) | Jan. 01, 2019USD ($) |
Significant Accounting Policies [Abstract] | |
Current lease liabilities | $ 2,835,925 |
Non-current lease liabilities | 4,435,227 |
Total | $ 7,271,152 |
Significant Accounting Polici_9
Significant Accounting Policies (Details 5) | Jun. 30, 2019USD ($) |
Statement Line Items [Line Items] | |
Contractual undiscounted cash flows | $ 6,121,542 |
Less than 1 year [Member] | |
Statement Line Items [Line Items] | |
Contractual undiscounted cash flows | 2,513,758 |
More than 1 year [Member] | |
Statement Line Items [Line Items] | |
Contractual undiscounted cash flows | $ 3,607,784 |
Significant Accounting Polic_10
Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jan. 01, 2019 | |
Significant Accounting Policies (Textual) | ||||
Foreign exchange risk, description | If the THB had strengthened/weakened by 1.27% against the USD (the average monthly variance during the 2-year period ended 31 December 2018) | |||
Post-tax profit higher/lower | $ 169,000 | $ 63,000 | ||
Borrowings interest rates basis points | 100 | |||
Post-tax interest rate risk | $ 43,000 | $ 105,000 | ||
Weighted average incremental borrowing rate | 3.80% | |||
Lease liabilities increased | $ 7,271,152 | |||
Right-of-use assets increased | $ 7,271,152 | |||
Operating leases lease liabilities recognized | $ 6,121,542 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents [abstract] | |||||
Cash on hand | $ 582,283 | $ 376,750 | $ 351,018 | ||
Cash at bank | 2,277,049 | 4,055,585 | 2,918,848 | ||
Subtotal | 2,859,332 | 4,432,335 | 3,269,866 | ||
Restricted cash | 1,413,434 | 1,029,230 | 968,572 | ||
Cash, cash equivalents, and restricted cash | $ 4,272,766 | $ 5,461,565 | $ 3,981,060 | $ 4,238,438 | $ 8,012,695 |
Acquisition of Subsidiaries u_2
Acquisition of Subsidiaries under Common Control (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Acquisition of Subsidiaries Under Common Control (Textual) | |
Percentage of voting equity interests acquired | 100.00% |
Consideration transferred, acquisition-date fair value | $ 1,000,000 |
Loans receivable | $ 4,400,000 |
Description of business combination | Guardforce AI Holding Limited and Guardforce AI Robots Limited acquired 100% of equity interest in subsidiaries from Tu Jingyi, the controlling shareholder who owns 59% of the Company, for $1,000,000. The subsidiaries acquired were previously purchased by Tu Jingyi for $1,000,000 from companies that he was a controlling shareholder. |
Description of capital contribution | Amounts outstanding for loans receivable from entities not included in the reorganization of $4.4 million have been reflected as a capital distribution to the controlling shareholder when the collectability of these amounts could not be determined. Accordingly, $4,004,574 was reflected as a capital distribution in 2017. Collections, of any, in the future will be recognized on a cash basis and will be reflected as additional capital contribution when received. |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Receivable, Net [Abstract] | |||
Accounts receivable-contracted customers | $ 5,518,072 | $ 5,933,584 | $ 5,798,235 |
Accounts receivable-related parties (Note 19) | 702 | 707 | |
Allowance for doubtful accounts | (21,694) | (21,316) | (568) |
Accounts receivable, net | $ 5,496,378 | $ 5,912,970 | $ 5,798,374 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details 1) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Line Items [Line Items] | ||
Gross carrying amount | $ 5,934,285 | $ 5,798,943 |
Allowance | (21,315) | (569) |
Net | 5,912,970 | 5,798,374 |
Current [member] | ||
Statement Line Items [Line Items] | ||
Gross carrying amount | 1,937,221 | 2,251,060 |
Allowance | ||
Net | 1,937,221 | 2,251,060 |
Not later than one month [member] | ||
Statement Line Items [Line Items] | ||
Gross carrying amount | 3,855,228 | 3,412,051 |
Allowance | ||
Net | 3,855,228 | 3,412,051 |
Later than one month and not later than two months [member] | ||
Statement Line Items [Line Items] | ||
Gross carrying amount | 60,431 | 132,345 |
Allowance | ||
Net | 60,431 | 132,345 |
Later than two months and not later than three months [member] | ||
Statement Line Items [Line Items] | ||
Gross carrying amount | 12,425 | 1,911 |
Allowance | (621) | (96) |
Net | 11,804 | 1,815 |
Later than three months [member] | ||
Statement Line Items [Line Items] | ||
Gross carrying amount | 68,980 | 1,576 |
Allowance | (20,694) | (473) |
Net | $ 48,286 | $ 1,103 |
Other Receivables (Details)
Other Receivables (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Other Receivables [Abstract] | |||
Due from related parties | $ 97,514 | $ 92,112 | $ 92,961 |
Advance to employees | 47,078 | 12,020 | 15,888 |
Others | 1,048 | ||
Other receivables | $ 144,592 | $ 104,132 | $ 109,897 |
Other Current and Non-Current_3
Other Current and Non-Current Assets (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Other Current and Non-Current Assets [Abstract] | |||
Input VAT receivable | $ 330,765 | $ 358,179 | $ 335,510 |
Prepayments-office rental | 575,543 | 842,150 | 765,370 |
Prepayments-insurance | 436,186 | 5,861 | 120,372 |
Prepayments-others | 44,700 | 258,718 | 125,753 |
Uniforms | 52,088 | 36,418 | 97,850 |
Tools and supplies | 189,178 | 118,977 | 144,448 |
Other current assets | 1,628,460 | 1,620,303 | 1,589,303 |
Deposit | 330,584 | 303,320 | 308,307 |
Others | 6,577 | ||
Other non-current assets | $ 337,161 | $ 303,320 | $ 308,307 |
Leasehold Improvements, Equip_3
Leasehold Improvements, Equipment and Other Fixed Assets (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Line Items [Line Items] | |||
Property, plant and equipment at beginning of period | $ 10,175,962 | $ 9,467,481 | |
Additions | |||
Depreciation charged for the year | |||
Transfers in(out) | |||
Property, plant and equipment at end of period | 10,247,784 | 10,175,962 | $ 9,467,481 |
Leasehold improvements [Member] | |||
Statement Line Items [Line Items] | |||
Property, plant and equipment at beginning of period | 534,955 | 534,955 | |
Property, plant and equipment at end of period | 915,329 | 534,955 | 534,955 |
Machinery and equipment [Member] | |||
Statement Line Items [Line Items] | |||
Property, plant and equipment at beginning of period | 1,327,766 | 964,450 | |
Property, plant and equipment at end of period | 726,468 | 1,327,766 | 964,450 |
Office decoration and equipment [Member] | |||
Statement Line Items [Line Items] | |||
Property, plant and equipment at beginning of period | 1,554,028 | 827,717 | |
Property, plant and equipment at end of period | 1,675,831 | 1,554,028 | 827,717 |
Vehicles [member] | |||
Statement Line Items [Line Items] | |||
Property, plant and equipment at beginning of period | 6,263,122 | 6,172,434 | |
Property, plant and equipment at end of period | 5,858,317 | 6,263,122 | 6,172,434 |
Assets under construction [Member] | |||
Statement Line Items [Line Items] | |||
Property, plant and equipment at beginning of period | 412,439 | 950,095 | |
Property, plant and equipment at end of period | 1,071,839 | 412,439 | 950,095 |
Gross Balance [Member] | |||
Statement Line Items [Line Items] | |||
Property, plant and equipment at beginning of period | 34,002,767 | 31,608,678 | 27,053,107 |
Additions | 791,158 | 3,201,064 | 2,905,235 |
Disposals | (1,255,610) | (916,484) | (954,617) |
Transfers in(out) | |||
Exchange differences | 1,978,671 | 109,509 | 2,604,953 |
Property, plant and equipment at end of period | 35,516,986 | 34,002,767 | 31,608,678 |
Gross Balance [Member] | Leasehold improvements [Member] | |||
Statement Line Items [Line Items] | |||
Property, plant and equipment at beginning of period | 2,888,288 | 2,848,825 | 2,586,222 |
Additions | 151,023 | 28,271 | 13,031 |
Disposals | (1,579) | (5,586) | |
Transfers in(out) | 268,170 | 11,568 | |
Exchange differences | 178,450 | 11,192 | 243,590 |
Property, plant and equipment at end of period | 3,484,352 | 2,888,288 | 2,848,825 |
Gross Balance [Member] | Machinery and equipment [Member] | |||
Statement Line Items [Line Items] | |||
Property, plant and equipment at beginning of period | 6,467,812 | 6,263,056 | 5,138,073 |
Additions | 7,421 | 259,424 | 124,283 |
Disposals | (165,255) | (181,444) | (30,609) |
Transfers in(out) | 15,978 | 103,056 | 528,390 |
Exchange differences | 375,157 | 23,720 | 502,919 |
Property, plant and equipment at end of period | 6,701,113 | 6,467,812 | 6,263,056 |
Gross Balance [Member] | Office decoration and equipment [Member] | |||
Statement Line Items [Line Items] | |||
Property, plant and equipment at beginning of period | 6,081,943 | 4,998,619 | 4,084,144 |
Additions | 38,885 | 803,285 | 338,912 |
Disposals | (36,278) | (1,438) | (40,224) |
Transfers in(out) | 186,446 | 269,445 | 215,392 |
Exchange differences | 360,096 | 12,032 | 400,395 |
Property, plant and equipment at end of period | 6,631,092 | 6,081,943 | 4,998,619 |
Gross Balance [Member] | Vehicles [member] | |||
Statement Line Items [Line Items] | |||
Property, plant and equipment at beginning of period | 17,614,629 | 17,085,739 | 15,206,297 |
Additions | 1,197,559 | 1,314,849 | |
Disposals | (1,052,498) | (733,602) | (878,198) |
Transfers in(out) | 58,542 | ||
Exchange differences | 1,007,917 | 64,933 | 1,442,791 |
Property, plant and equipment at end of period | 17,628,590 | 17,614,629 | 17,085,739 |
Gross Balance [Member] | Assets under construction [Member] | |||
Statement Line Items [Line Items] | |||
Property, plant and equipment at beginning of period | 950,095 | 412,439 | 38,371 |
Additions | 593,829 | 912,525 | 1,114,160 |
Disposals | |||
Transfers in(out) | (529,136) | (372,501) | (755,350) |
Exchange differences | 57,051 | (2,368) | 15,258 |
Property, plant and equipment at end of period | 1,071,839 | 950,095 | 412,439 |
Accumulated impairment [Member] | |||
Statement Line Items [Line Items] | |||
Property, plant and equipment at beginning of period | 23,826,805 | 22,141,197 | 18,999,851 |
Depreciation charged for the year | 1,301,114 | 2,446,733 | 2,248,992 |
Disposals | (1,253,699) | (837,771) | (935,319) |
Exchange differences | 1,394,982 | 76,646 | 1,827,673 |
Property, plant and equipment at end of period | 25,269,202 | 23,826,805 | 22,141,197 |
Accumulated impairment [Member] | Leasehold improvements [Member] | |||
Statement Line Items [Line Items] | |||
Property, plant and equipment at beginning of period | 2,353,333 | 2,212,388 | 1,875,404 |
Depreciation charged for the year | 77,126 | 133,080 | 161,320 |
Disposals | (841) | (5,585) | |
Exchange differences | 139,405 | 7,865 | 181,249 |
Property, plant and equipment at end of period | 2,569,023 | 2,353,333 | 2,212,388 |
Accumulated impairment [Member] | Machinery and equipment [Member] | |||
Statement Line Items [Line Items] | |||
Property, plant and equipment at beginning of period | 5,503,362 | 4,935,290 | 3,975,682 |
Depreciation charged for the year | 310,990 | 656,952 | 597,260 |
Disposals | (164,978) | (104,522) | (29,597) |
Exchange differences | 325,271 | 15,642 | 391,945 |
Property, plant and equipment at end of period | 5,974,645 | 5,503,362 | 4,935,290 |
Accumulated impairment [Member] | Office decoration and equipment [Member] | |||
Statement Line Items [Line Items] | |||
Property, plant and equipment at beginning of period | 4,527,915 | 4,170,902 | 3,527,561 |
Depreciation charged for the year | 195,032 | 344,308 | 333,622 |
Disposals | (36,183) | (1,437) | (31,502) |
Exchange differences | 268,497 | 14,142 | 341,221 |
Property, plant and equipment at end of period | 4,955,261 | 4,527,915 | 4,170,902 |
Accumulated impairment [Member] | Vehicles [member] | |||
Statement Line Items [Line Items] | |||
Property, plant and equipment at beginning of period | 11,442,195 | 10,822,617 | 9,621,204 |
Depreciation charged for the year | 717,966 | 1,312,393 | 1,156,790 |
Disposals | (1,051,697) | (731,812) | (868,635) |
Exchange differences | 661,809 | 38,997 | 913,258 |
Property, plant and equipment at end of period | 11,770,273 | 11,442,195 | 10,822,617 |
Accumulated impairment [Member] | Assets under construction [Member] | |||
Statement Line Items [Line Items] | |||
Property, plant and equipment at beginning of period | |||
Depreciation charged for the year | |||
Disposals | |||
Exchange differences | |||
Property, plant and equipment at end of period |
Leasehold Improvements, Equip_4
Leasehold Improvements, Equipment and Other Fixed Assets (Details Textual) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Leasehold Improvements, Equipment and Other Fixed Assets [Abstract] | ||
Capital commitments under asset under constructions | $ 216,316 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net book value | |||
Intangible Assets, Net | $ 244,634 | $ 229,340 | $ 166,752 |
Computer software [Member] | |||
Cost | |||
Beginning | 846,958 | 743,292 | 586,671 |
Additions | 42,607 | 101,446 | 98,311 |
Exchange differences | 29,441 | 2,220 | 58,310 |
Ending | 919,006 | 846,958 | 743,292 |
Accumulated amortization | |||
Beginning | 617,618 | 576,540 | 490,049 |
Amortization charged for the year | 20,164 | 39,061 | 39,179 |
Exchange differences | 36,590 | 2,017 | 47,312 |
Ending | 674,372 | 617,618 | 576,540 |
Net book value | |||
Intangible Assets, Net | $ 244,634 | $ 229,340 | $ 166,752 |
Trade and Other Payables (Detai
Trade and Other Payables (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Trade and other payables [abstract] | |||
Trade accounts payable- other companies | $ 888,155 | $ 1,442,262 | $ 1,556,834 |
Amounts due to related companies (Note 19) | 1,838,257 | 2,118,424 | 124,460 |
Accrued salaries and bonus | 492,606 | 210,537 | 76,444 |
Accrued customer claims | 359,926 | 116,692 | 182,952 |
Trade and other payables | 1,838,257 | 3,887,915 | 1,940,690 |
Output Vat | 78,479 | 100,040 | |
Accrued Expense | 740,899 | 420,090 | |
Payroll Payable | 589,030 | 519,235 | |
Other Payable | 221,669 | 285,885 | |
Other current liabilities | $ 1,577,578 | $ 1,630,077 | $ 1,325,250 |
Trade and Other Payables (Det_2
Trade and Other Payables (Details Textual) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Trade and Other Payables (Textual) | ||||
Provision for penalty claims | $ 48,847 | $ 18,445 | $ 28,720 | $ 71,092 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Other Current Liabilities [Abstract] | ||
Output VAT | $ 80,565 | $ 78,479 |
Accrued expenses | 930,341 | 740,899 |
Payroll payable | 382,054 | 589,030 |
Other payables | 184,618 | 221,669 |
Other current liabilities | $ 1,577,578 | $ 1,630,077 |
Borrowings from Fainancial In_3
Borrowings from Fainancial Institutions (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Borrowings from Fainancial Institutions [Abstract] | |||
Current portion of long-term borrowings | $ 695,090 | $ 1,007,787 | $ 661,964 |
Long-term borrowings | 333,457 | 465,379 | 661,964 |
Borrowing from financial institutions | $ 1,028,547 | $ 1,473,166 | $ 1,323,928 |
Borrowings from Fainancial In_4
Borrowings from Fainancial Institutions (Details Textual) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Borrowings from Fainancial Institutions [Abstract] | |||
Borrowings description | Borrowings carry interest at the rate of MLR minus 1% per annum. Maturity date of borrowings is made and repayable on 30 November 2019, 1 February 2020, 1 August 2021 and 1 November 2021. | Borrowings carry interest at the rate of MLR (6.25% as of 31 December 2018) minus 1% per annum. Maturity date of borrowings is made and repayable on 30 November 2019, 1 February 2020, 1 August 2021 and 1 November 2021. | |
Interest expense | $ 6,875 | $ 80,607 | $ 0 |
Unused borrowing facilities | $ 285,000 | $ 253,000 |
Short-Term Borrowing from Thi_2
Short-Term Borrowing from Third Party (Details) - USD ($) | 1 Months Ended | |
Apr. 29, 2018 | Jun. 30, 2019 | |
Short-Term Borrowing from Third Party [Abstract] | ||
Short-term borrowing from third party | $ 13,420,000 | |
Bearing interest | 3.22% | |
Interest rate increased | 4.00% | |
Additional expense paid to related party | $ 576,000 | |
Short term borrowing maturity date | On March 11, 2020, the maturity date of the loan was extended to 31 December 2020. |
Finance Lease Liabilities (Deta
Finance Lease Liabilities (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Finance Lease Liabilities [Abstract] | |||
Current portion | $ 332,957 | $ 974,211 | $ 1,351,327 |
Non-current portion | 2,126,122 | 2,008,614 | 1,716,597 |
Finance lease liabilities | $ 2,459,079 | $ 2,982,825 | $ 3,067,924 |
Finance Lease Liabilities (De_2
Finance Lease Liabilities (Details 1) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Finance Lease Liabilities [Abstract] | |||
Within 1 year | $ 392,703 | $ 1,102,209 | $ 1,491,098 |
After 1 year but within 5 years | 2,331,044 | 2,205,045 | 1,860,108 |
Less: Future finance charges on finance leases | (264,668) | (324,429) | (283,282) |
Present value of finance lease liabilities, net | $ 2,459,079 | $ 2,982,825 | $ 3,067,924 |
Finance Lease Liabilities (De_3
Finance Lease Liabilities (Details 2) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Finance Lease Liabilities [Abstract] | |||
Cost | $ 7,529,374 | $ 7,113,238 | $ 6,452,082 |
Less: Accumulated depreciation | (3,037,293) | (2,461,410) | (2,289,990) |
Net book value | $ 4,492,081 | $ 4,651,828 | $ 4,162,092 |
Finance Lease Liabilities (De_4
Finance Lease Liabilities (Details Textual) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finance Lease Liabilities (Textual) | ||||
Interest expense | $ 74,079 | $ 82,511 | $ 167,152 | $ 187,170 |
Taxation (Details)
Taxation (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax expense (income) [Abstract] | ||||
Current income tax expense | ||||
Deferred income tax expense | 119,953 | 173,060 | ||
Total income tax expense | $ 27,866 | $ 293,302 | $ 119,953 | $ 173,060 |
Taxation (Details 1)
Taxation (Details 1) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Taxation [Abstract] | ||||
Profit before income tax expense | $ 474,512 | $ 1,323,634 | ||
Thailand income tax statutory rate | 20.00% | 20.00% | ||
Income tax at statutory tax rate | $ 94,902 | $ 264,727 | ||
Permanent differences | 25,051 | (91,667) | ||
Income tax expense (benefit) | $ 27,866 | $ 293,302 | $ 119,953 | $ 173,060 |
Taxation (Details 2)
Taxation (Details 2) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Taxation [Abstract] | |||
Provision for employee benefits | $ 1,123,867 | $ 1,045,868 | |
Net operating loss carried forward | 233,725 | 312,008 | |
Deferred tax assets | 1,357,592 | 1,357,876 | |
Less: | |||
Deferred tax liabilities - finance leases | 377,073 | 262,681 | |
Deferred tax assets-net | $ 1,009,235 | $ 980,519 | $ 1,095,195 |
Taxation (Details Textual)
Taxation (Details Textual) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Taxation (Textual) | ||
Withholding tax rate | 3.00% | 3.00% |
Hong Kong [Member] | ||
Taxation (Textual) | ||
Corporate income tax rate | 16.50% | |
Thailand [Member] | ||
Taxation (Textual) | ||
Corporate income tax rate | 20.00% | |
VAT service percentage | 7.00% |
Provision for Employee Benefi_3
Provision for Employee Benefits (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Provision for Employee Benefits [Abstract] | |||
Defined benefit obligations, beginning | $ 5,619,337 | $ 5,229,340 | $ 3,830,460 |
Benefits paid during the year | 517,557 | (343,944) | (381,229) |
Current service costs | 674,360 | 517,058 | |
Interest | 128,509 | 114,441 | |
Past service cost and loss on settlement | 36,907 | 594,541 | |
Actuarial (losses) gains recognized in the income statement | (123,997) | 161,519 | |
Exchange differences | 18,162 | 392,550 | |
Estimate for the six months period | 517,557 | ||
Defined benefit obligations, ending | $ 6,136,894 | $ 5,619,337 | $ 5,229,340 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Shareholders Equity [Abstract] | |||
Ordinary shares, par value (in dollar per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Ordinary shares, authorized | 50,000,000 | 50,000,000 | 50,000,000 |
Ordinary shares, issued | 50,000,000 | 50,000,000 | 50,000,000 |
Common stock, shares outstanding | 50,000,000 | 50,000,000 | 50,000,000 |
Share capital | $ 50,000 | $ 50,000 | |
Subscription receivable | $ (50,000) | $ (50,000) | $ (50,000) |
Administrative Expenses (Detail
Administrative Expenses (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Administrative Expenses [Abstract] | ||||
Staff expense | $ 1,417,813 | $ 1,320,135 | $ 2,134,718 | $ 1,923,199 |
Loan penalty charge | 575,923 | |||
Rental expenses | 568,164 | 538,635 | 480,519 | 441,223 |
Depreciation and amortization expense | 95,959 | 73,546 | 147,873 | 97,582 |
Utilities expense | 261,735 | 245,594 | 147,436 | 153,133 |
Travelling and entertainment expenses | 86,568 | 70,713 | 135,016 | 128,382 |
Professional fees | 268,531 | 66,171 | 151,742 | 84,513 |
Repairs and maintenance | 35,741 | 54,461 | 98,384 | 80,460 |
Employee benefit expenses | 237,546 | 65,291 | 94,293 | 77,305 |
Other service fees | 101,911 | 97,274 | 69,310 | 55,244 |
Office expenses | 245,374 | 278,708 | ||
Other expenses | 349,267 | 338,420 | 231,261 | 87,564 |
Administrative expenses | $ 3,423,235 | $ 2,870,240 | $ 4,511,849 | $ 3,407,313 |
Legal Reserve (Details)
Legal Reserve (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Jun. 30, 2019 | Dec. 31, 2017 | |
Legal Reserve [Abstract] | |||
Legal reserve description | Under the provisions of the Civil and Commercial Code, GF Cash (CIT) is required to set aside as a legal reserve at least 5% of the profits arising from the business of the Company at each dividend distribution until the reserve is not less than 10% of the registered share capital. | ||
Legal reserve | $ 223,500 | $ 223,500 | $ 223,500 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Line Items [Line Items] | |||
Loan to related parties | $ 310,567 | ||
Other receivables | 97,514 | $ 104,132 | $ 109,897 |
Amounts due from related parties, Total | 408,081 | 396,060 | 93,668 |
Long Top Limited [Member] | |||
Statement Line Items [Line Items] | |||
Loan to related parties | 310,567 | 303,246 | |
Guardforce Group Limited [Member] | |||
Statement Line Items [Line Items] | |||
Other receivables | 89,665 | 84,709 | 84,371 |
Guardforce TH Group Company Limited [Member] | |||
Statement Line Items [Line Items] | |||
Other receivables | 7,849 | 7,403 | 6,134 |
Guardforce Security (Thailand) Company Limited [Member] | |||
Statement Line Items [Line Items] | |||
Other receivables | 2,456 | ||
Bangkok Bank Public Company Limited [Member] | |||
Statement Line Items [Line Items] | |||
Other receivable/Accounts receivable, net | $ 702 | $ 707 |
Related Party Transactions (D_2
Related Party Transactions (Details 1) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Line Items [Line Items] | |||
Borrowings from related party | $ 5,518,072 | $ 5,933,584 | $ 5,798,235 |
Trade and other payables | 1,838,257 | 3,887,915 | 1,940,690 |
Amounts due to related parties, Total | 1,838,257 | 2,118,424 | 124,460 |
Guardforce TH Group Company Limited [Member] | |||
Statement Line Items [Line Items] | |||
Borrowings from related party | 12,386,433 | ||
Tu Jingyi [Member] | |||
Statement Line Items [Line Items] | |||
Trade and other payables | 1,537,327 | 1,837,327 | |
Junwei Capital Group Ltd. [Member] | |||
Statement Line Items [Line Items] | |||
Trade and other payables | 224,766 | 149,741 | |
Guardforce Security (Thailand) Co.,Ltd [Member] | |||
Statement Line Items [Line Items] | |||
Trade and other payables | 69,780 | 124,825 | 118,475 |
Guardforce 3 Limited [Member] | |||
Statement Line Items [Line Items] | |||
Trade and other payables | 5,601 | 5,291 | 5,270 |
Guardforce Aviation Security Co.,Ltd [Member] | |||
Statement Line Items [Line Items] | |||
Trade and other payables | $ 783 | $ 1,240 | $ 715 |
Related Party Transactions (D_3
Related Party Transactions (Details 2) - USD ($) | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Statement Line Items [Line Items] | ||||||
Related party transactions net | $ 376,478 | $ 702,447 | $ 645,138 | |||
Guardforce Security (Thailand) Company Limited [Member] | ||||||
Statement Line Items [Line Items] | ||||||
Related party transactions net | 371,362 | [1] | 695,594 | [2] | 639,397 | [2] |
Guardforce Aviation Security Co.,Ltd [Member] | ||||||
Statement Line Items [Line Items] | ||||||
Related party transactions net | $ 5,116 | [3] | $ 6,853 | [4] | $ 5,741 | [4] |
[1] | Guardforce Security (Thailand) Co., Ltd. provided security guard services to the Company. | |||||
[2] | Guardforce Security (Thailand) Co.,Ltd. provided security guard services to the Company. | |||||
[3] | Guardforce Aviation Security Co., Ltd. provided escort services to the Company. | |||||
[4] | Guardforce Aviation Security Co.,Ltd. provided escort services to the Company. |
Related Party Transactions (D_4
Related Party Transactions (Details Textual) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Line Items [Line Items] | ||||
Interest expense | $ 188,183 | $ 770,230 | $ 621,971 | |
Long Top Limited [Member] | ||||
Statement Line Items [Line Items] | ||||
Short-term loan, Percentage | 3.00% | |||
loan’s due date Description | The loan’s due date was 31 December 2019 and was further extended to 31 December 2021. | |||
Interest expense | $ 5,948 | |||
Guardforce TH Group Company Limited [Member] | ||||
Statement Line Items [Line Items] | ||||
Short-term loan, Percentage | 5.00% | 2.01% | 4.13329% | |
loan’s due date Description | The loan's due date was 31 December 2019 and was further extended to 31 December 2021. | |||
Interest expense | $ 10,689 | $ 126,523 | $ 381,621 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Dec. 31, 2018USD ($) |
Year ending 31 December: | |
2019 | $ 2,835,921 |
2020 | 2,041,438 |
2021 | 1,580,334 |
2022 | 930,949 |
2023 | 51,181 |
2024 and thereafter | 161,299 |
Total minimum payment required | $ 7,601,122 |
Commitments and Contingencies_3
Commitments and Contingencies (Details 1) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Year ending 31 December: | ||
2019 | $ 251,413 | |
2020 | 592,803 | |
2021 | 220,694 | |
Total minimum payment required | $ 1,064,910 | |
Year ending 30 June: | ||
2020 | $ 501,443 | |
2021 | 476,186 | |
2022 | 31,371 | |
Total minimum payment required | $ 1,009,000 |
Commitments and Contingencies_4
Commitments and Contingencies (Details 2) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | |
Statement Line Items [Line Items] | |||
Service fee commitments | [1] | $ 2,322,053 | $ 1,620,960 |
Asset construction commitments | [2] | 216,326 | |
Total | 2,322,053 | 1,837,286 | |
Not later than one year [member] | |||
Statement Line Items [Line Items] | |||
Service fee commitments | [1] | 741,829 | 331,560 |
Asset construction commitments | [2] | 216,326 | |
Total | 741,829 | 547,886 | |
1-3 years | |||
Statement Line Items [Line Items] | |||
Service fee commitments | [1] | 1,125,281 | 675,400 |
Asset construction commitments | [2] | ||
Total | 1,125,281 | 675,400 | |
4-5 years | |||
Statement Line Items [Line Items] | |||
Service fee commitments | [1] | 614,000 | |
Asset construction commitments | [2] | ||
Total | 614,000 | ||
More than 5 years | |||
Statement Line Items [Line Items] | |||
Service fee commitments | [1] | ||
Asset construction commitments | [2] | ||
Total | |||
3-5 years | |||
Statement Line Items [Line Items] | |||
Service fee commitments | [1] | 454,943 | |
Total | $ 454,943 | ||
[1] | The Company has commitments to pay certain service fees to Stander Information Company Limited, as its service provider to provide technical services for operating systems, that comprise a monthly fixed amount and certain other fees as specified in the agreement. | ||
[2] | Represents asset under construction for certain office equipment and IT equipment and vehicles. |
Commitments and Contingencies_5
Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | |
Commitments and Contingencies (Textual) | |||
Rental expense incurred for operating leases | $ 1,856,584 | $ 1,831,567 | |
Employment agreements, description | The Company has several employment agreements with executives and directors with the latest expiring in 2021. All agreements provide for auto renewal option with varying terms of one year or three years unless terminated by either party. | ||
Bank guarantees | $ 4,462,642 | $ 4,679,000 | |
Litigation totaling | 635,000 | ||
Provision for possible losses | $ 42,000 |
Concentrations (Details)
Concentrations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Line Items [Line Items] | ||
Net revenue, Value | $ 20,808,894 | $ 20,028,179 |
Net revenue, Percentage | 55.80% | 58.10% |
Account receivable, Value | $ 3,018,170 | $ 2,604,158 |
Account receivable, Percentage | 51.10% | 44.90% |
Company A [Member] | ||
Statement Line Items [Line Items] | ||
Net revenue, Value | $ 9,992,800 | $ 9,582,307 |
Net revenue, Percentage | 26.80% | 27.80% |
Account receivable, Value | $ 1,332,809 | $ 1,734,059 |
Account receivable, Percentage | 22.50% | 29.90% |
Company B [Member] | ||
Statement Line Items [Line Items] | ||
Net revenue, Value | $ 6,233,599 | $ 6,130,137 |
Net revenue, Percentage | 16.70% | 17.80% |
Account receivable, Value | $ 1,085,142 | $ 870,099 |
Account receivable, Percentage | 18.40% | 15.00% |
Company C [Member] | ||
Statement Line Items [Line Items] | ||
Net revenue, Value | $ 4,582,495 | $ 4,315,735 |
Net revenue, Percentage | 12.30% | 12.50% |
Account receivable, Value | $ 600,219 | |
Account receivable, Percentage | 10.20% |
Subsequent Events (Details)
Subsequent Events (Details) - shares | Mar. 13, 2020 | Mar. 11, 2020 | Feb. 05, 2020 | Dec. 16, 2019 | Dec. 31, 2018 |
Statement Line Items [Line Items] | |||||
Subsequent events, description | The Merger was completed effective March 10, 2020, and the separate existence of VCAB ceased on that date. As consideration for the Merger, the Company will issue an aggregate of 2,631,579 shares of capital stock ("Plan Shares') to VCAB's claim holders. As of the date of this report, the Company has allocated, and is in the process of issuing, 2,068,959 of the Plan Shares to approximately 670 designated and Bankruptcy Court approved claim holders. The Company will hold the remaining 562,620 Plan Shares in reserve for issuance to additional claim holders as they are approved by the Bankruptcy Court during the next few months. Following the completion of this process, the Company expects to have approximately 1,300 holders of its outstanding ordinary shares. | At the time of the signing of the Merger Agreement, VCAB was, and at the expected date of closing will be, subject to a bankruptcy proceeding in Texas. VCAB has minimal assets, no equity owners and no liabilities, except for approximately 1, 300 holders of Class 5 Allowed General Unsecured Claims and one holder of allowed administrative expenses (collectively, the " Claim Holders"). Pursuant to the terms of the Merger Agreement, and in accordance with the bankruptcy plan, the Company will issue at the closing of the Merger an aggregate of 2,631,579 shares of capital stock (the "Plan Shares") to the Claim Holders in full settlement and satisfaction of their respective claims. | |||
Major ordinary share transactions [member] | |||||
Statement Line Items [Line Items] | |||||
Subsequent events, description | The Company entered into a second supplemental agreement to the loan agreement with the lender, Profit Raider Investment Limited, to extend the due date of the loan to 31 December 2020. The outstanding principle amount due was $13,421,793 and the amount of interest accrued on the loan, calculated up to 31 December 2019 was $709,535. | The shareholders of the Company authorized an increase in the authorized share capital of the Company from 50,000,000 Ordinary Shares to 300,000,000 Ordinary Shares, by the creation of an additional 250,000,000 Ordinary Shares of US$0.001 par value each. | |||
Transfer of ordinary shares | 5,000,000 | ||||
Authorized share capital, description | The shareholders of the Company authorized an increase in the authorized share capital of the Company from 50,000,000 Ordinary Shares to 300,000,000 Ordinary Shares, by the creation of an additional 250,000,000 Ordinary Shares of US$0.001 par value each. |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | |||||
Cash and cash equivalents | $ 2,859,332 | $ 4,432,335 | $ 3,269,866 | ||
Total assets | 36,012,501 | 30,496,363 | 27,264,703 | ||
Current liabilities: | |||||
Trade and other payables | 3,578,944 | 3,887,915 | 1,940,690 | ||
Total liabilities | 34,834,301 | 29,323,851 | 25,273,565 | ||
Shareholders' equity | |||||
Common stock - Authorized 50,000,000 shares, par value $0.001 | 50,000 | 50,000 | 50,000 | ||
Additional paid in capital | 2,360,204 | 2,360,204 | 3,360,204 | ||
Legal reserve | 223,500 | 223,500 | 223,500 | ||
Accumulated Deficit | 1,916,263 | 1,680,322 | 1,853,243 | ||
Other comprehensive income | 448,904 | 209,278 | 203,933 | ||
Total shareholders' equity | 1,178,200 | 1,172,512 | $ 2,351,760 | 1,991,138 | $ 4,634,069 |
Total liabilities and shareholders' equity | $ 36,012,501 | 30,496,363 | $ 27,264,703 | ||
Parent [member] | |||||
Current assets: | |||||
Cash and cash equivalents | $ 462,485 | ||||
Amount due from subsidiaries | 390,000 | ||||
Investment in subsidiaries | $ 1,289,522 | ||||
Total assets | 2,142,007 | ||||
Current liabilities: | |||||
Trade and other payables | 1,029,347 | ||||
Total liabilities | 1,029,347 | ||||
Shareholders' equity | |||||
Common stock - Authorized 50,000,000 shares, par value $0.001 | 50,000 | ||||
Subscription of receivable | (50,000) | ||||
Additional paid in capital | 2,360,204 | ||||
Legal reserve | 223,500 | ||||
Accumulated Deficit | (1,680,322) | ||||
Other comprehensive income | 209,278 | ||||
Total shareholders' equity | 1,112,660 | ||||
Total liabilities and shareholders' equity | $ 2,142,007 |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company (Details) (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Line Items [Line Items] | |||
Common stock, par value (in dollar per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 |
Parent [member] | |||
Statement Line Items [Line Items] | |||
Common stock, par value (in dollar per share) | $ 0.001 | ||
Common stock, shares authorized | 50,000,000 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company (Details 1) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Line Items [Line Items] | ||||
Revenue | $ 18,625,807 | $ 18,949,508 | $ 37,344,305 | $ 34,475,126 |
Cost of revenue | 15,791,848 | 15,009,671 | 31,502,466 | 29,634,859 |
Gross margin | 2,833,959 | 3,939,837 | 5,841,839 | 4,840,267 |
Administrative expenses | (3,423,235) | (2,870,240) | (4,511,849) | (3,407,313) |
Loss from operating | (589,276) | 1,069,597 | 1,329,990 | 1,432,954 |
Profit before income tax expenses | (206,072) | 764,783 | 295,982 | 1,323,634 |
Income tax expenses | 27,866 | 293,302 | 119,953 | 173,060 |
Net profit for the year | (233,938) | 471,481 | 176,029 | 1,150,574 |
Total comprehensive income for the year | $ 5,688 | $ 360,622 | 181,374 | $ 1,361,643 |
Parent [member] | ||||
Statement Line Items [Line Items] | ||||
Revenue | ||||
Cost of revenue | ||||
Gross margin | ||||
Administrative expenses | (177,009) | |||
Loss from operating | (177,009) | |||
Other income | 147 | |||
Equity income of subsidiaries | 349,783 | |||
Profit before income tax expenses | 172,921 | |||
Income tax expenses | ||||
Net profit for the year | 172,921 | |||
Total comprehensive income for the year | $ 172,921 |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company (Details 2) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities | ||||
Net profit | $ (233,938) | $ 471,481 | $ 176,029 | $ 1,150,574 |
Changes in operating assets and liabilities: | ||||
Accounts and other receivables, net | 691,525 | (291,996) | (106,724) | (704,819) |
Trade and other payables | (283,198) | 618,416 | 1,938,770 | (262,808) |
Net cash provided by operating activities | 2,842,539 | 955,980 | 5,435,418 | 3,149,059 |
Net increase in cash and cash equivalents, and restricted cash | (1,188,799) | (257,378) | 1,223,127 | (3,774,257) |
Cash and cash equivalents, and restricted cash at beginning of year | 5,461,565 | 4,238,438 | 4,238,438 | 8,012,695 |
Cash and cash equivalents, and restricted cash at end of year | 4,272,766 | 3,981,060 | 5,461,565 | 4,238,438 |
Parent [member] | ||||
Operating activities | ||||
Net profit | 172,921 | |||
Adjustments to reconcile to net income to net cash used in operating activities | ||||
Equity gain of subsidiaries | (349,783) | |||
Changes in operating assets and liabilities: | ||||
Accounts and other receivables, net | (390,000) | |||
Trade and other payables | 1,029,347 | |||
Net cash provided by operating activities | 462,485 | |||
Net increase in cash and cash equivalents, and restricted cash | 462,485 | |||
Cash and cash equivalents, and restricted cash at beginning of year | $ 462,485 | |||
Cash and cash equivalents, and restricted cash at end of year | $ 462,485 |