Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2021 | |
Document Information Line Items | |
Entity Registrant Name | Guardforce AI Co., Ltd |
Document Type | 6-K |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Entity Central Index Key | 0001804469 |
Document Period End Date | Jun. 30, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Entity File Number | 001-40848 |
Unaudited Interim Condensed Con
Unaudited Interim Condensed Consolidated Statements of Financial Position - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | |
Current assets: | |||
Cash and cash equivalents | $ 7,725,129 | $ 8,414,044 | |
Accounts receivable, net | 5,790,229 | 5,468,911 | |
Withholding taxes receivables | 690,487 | ||
Other current assets | 2,462,654 | 1,584,884 | |
Deferred costs | 38,880 | ||
Inventory | 2,553,957 | 495,081 | |
Amount due from related parties | 7,422 | 373,268 | |
Total current assets | 18,578,271 | 17,026,675 | |
Restricted cash | 1,667,081 | 1,715,866 | |
Fixed assets, net | 9,075,078 | 7,884,354 | |
Right-of-use assets | 2,868,604 | 4,190,351 | |
Intangible assets, net | 189,438 | 223,408 | |
Goodwill | 329,534 | ||
Withholding taxes receivable, net | 3,359,752 | 3,534,552 | |
Deferred costs | 68,040 | ||
Deferred tax assets, net | 972,384 | 1,038,346 | |
Other non-current assets | 330,416 | 361,275 | |
Total Assets | 37,438,598 | 35,974,827 | |
Current liabilities: | |||
Trade and other payables | 3,050,006 | 1,540,411 | |
Short-term borrowings from financial institutions | 1,700,473 | 494,994 | |
Current portion of operating lease liabilities | 1,556,425 | 2,211,984 | |
Current portion of finance lease liabilities, net | 790,704 | 632,105 | |
Other current liabilities | 1,349,427 | 1,249,106 | |
Deferred revenue | 43,200 | ||
Income tax payables | 284,627 | ||
Amount due to related parties | 4,396,317 | 1,670,469 | |
Total current liabilities | 12,886,552 | 8,083,696 | |
Long-term borrowings from financial institutions | 986,584 | 993,869 | |
Operating lease liabilities | 1,482,152 | 2,106,429 | |
Long-term borrowings from related parties | 18,127,706 | 19,085,812 | |
Finance lease liabilities, net | 825,841 | 1,023,366 | |
Deferred revenue | 75,600 | ||
Provision for employee benefits | 6,547,498 | 6,841,673 | |
Total liabilities | 40,931,933 | 38,134,845 | |
Commitments and Contingencies | |||
(Deficit) Equity | |||
Ordinary shares – par value $0.003 authorized 100,000,000 shares, issued and outstanding 17,587,388 shares at June 30, 2021; par value $0.003 authorized 100,000,000 shares, issued and outstanding 17,356,090 shares at December 31, 2020 | [1] | 52,763 | 52,069 |
Subscription receivable | (50,000) | (50,000) | |
Additional paid in capital | 2,409,864 | 2,082,795 | |
Legal reserve | 223,500 | 223,500 | |
Deficit | (6,277,568) | (4,722,294) | |
Accumulated other comprehensive income | 98,352 | 204,249 | |
Total deficit attributable to equity holders of the Company | (3,543,089) | (2,209,681) | |
Total equity attributable to non-controlling interests | 49,754 | 49,663 | |
Total deficit | (3,493,335) | (2,160,018) | |
Total Liabilities and Equity | $ 37,438,598 | $ 35,974,827 | |
[1] | Giving retroactive effect to the reverse split on August 20, 2021. |
Unaudited Interim Condensed C_2
Unaudited Interim Condensed Consolidated Statements of Financial Position (Parentheticals) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of financial position [abstract] | ||
Common stock, par value (in Dollars per share) | $ 0.003 | $ 0.003 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 17,587,388 | 17,356,090 |
Common stock, shares outstanding | 17,587,388 | 17,356,090 |
Unaudited Interim Condensed C_3
Unaudited Interim Condensed Consolidated Statements of Profit or Loss - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Profit or loss [abstract] | |||
Revenue | $ 18,405,025 | $ 18,728,786 | |
Cost of revenue | (16,346,463) | (15,441,180) | |
Gross margin | 2,058,562 | 3,287,606 | |
Provision for withholding taxes receivable | (98,226) | ||
Administrative expenses | (3,271,608) | (4,094,532) | |
Loss from operations | (1,311,272) | (806,926) | |
Other income, net | 237,178 | 32,452 | |
Foreign exchange loss, net | (40,137) | (310,207) | |
Finance costs | (440,952) | (435,713) | |
Loss before provision for income taxes | (1,555,183) | (1,520,394) | |
Provision for income taxes | (58,368) | ||
Net loss for the period | (1,555,183) | (1,578,762) | |
Less: net loss (profit) attributable to non-controlling interests | (91) | 5,420 | |
Net loss attributable to equity holders of the Company | $ (1,555,274) | $ (1,573,342) | |
Loss per share | |||
Basic and diluted (loss) profit for the period attributable to ordinary equity holders of the Company (in Dollars per share) | [1] | $ (0.09) | $ (0.09) |
Weighted average number of shares used in computation: | |||
Basic and diluted (in Shares) | [1] | 17,486,264 | 17,090,926 |
[1] | Giving retroactive effect to the reverse split on August 20, 2021. |
Unaudited Interim Condensed C_4
Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss [Abstract] | ||
Net loss for the period | $ (1,555,183) | $ (1,578,762) |
Currency translation differences | (105,897) | (414,098) |
Total comprehensive income (loss) for the period | (1,661,080) | (1,992,860) |
Attributable to: | ||
Equity holders of the Company | (1,661,171) | (1,987,440) |
Non-controlling interests | 91 | (5,420) |
Comprehensive income | $ (1,661,080) | $ (1,992,860) |
Unaudited Interim Condensed C_5
Unaudited Interim Condensed Consolidated Statements of Changes in Equity (Deficit) - USD ($) | Issued Capital | Subscription Receivable | Addition Paid-in Capital | Legal Reserve | Accumulated Other Comprehensive Income | Deficit | Non- controlling Interests | Other reserves [member] | ||
Balance at Dec. 31, 2019 | $ 50,000 | [1] | $ (50,000) | $ 2,360,204 | $ 223,500 | $ 273,579 | $ (1,596,270) | $ 65,894 | $ 1,326,907 | |
Balance (in Shares) at Dec. 31, 2019 | [1] | 16,666,663 | ||||||||
Currency translation adjustments | [1] | (414,098) | (414,098) | |||||||
Stock-based compensation expenses | $ 2,069 | [1] | 16,757 | 18,826 | ||||||
Stock-based compensation expenses (in Shares) | [1] | 689,427 | ||||||||
Net loss for the period | [1] | (1,573,342) | (5,420) | (1,578,762) | ||||||
Balance at Jun. 30, 2020 | $ 52,069 | [1] | (50,000) | 2,376,961 | 223,500 | (140,519) | (3,169,612) | 60,474 | (647,127) | |
Balance (in Shares) at Jun. 30, 2020 | [1] | 17,356,090 | ||||||||
Balance at Dec. 31, 2020 | $ 52,069 | [1] | (50,000) | 2,082,795 | 223,500 | 204,249 | (4,722,294) | 49,663 | (2,160,018) | |
Balance (in Shares) at Dec. 31, 2020 | [1] | 17,356,090 | ||||||||
Currency translation adjustments | (105,897) | (105,897) | ||||||||
Stock-based compensation expenses | $ 563 | [1] | (563) | |||||||
Stock-based compensation expenses (in Shares) | [1] | 187,598 | ||||||||
Issued shares for acquisition of a subsidiary | $ 131 | [1] | 327,632 | 327,763 | ||||||
Issued shares for acquisition of a subsidiary (in Shares) | [1] | 43,700 | ||||||||
Net loss for the period | (1,555,274) | 91 | (1,555,183) | |||||||
Balance at Jun. 30, 2021 | $ 52,763 | [1] | $ (50,000) | $ 2,409,864 | $ 223,500 | $ 98,352 | $ (6,277,568) | $ 49,754 | $ (3,493,335) | |
Balance (in Shares) at Jun. 30, 2021 | [1] | 17,587,388 | ||||||||
[1] | Giving retroactive effect to the reverse split on August 20, 2021. |
Unaudited Interim Condensed C_6
Unaudited Interim Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities | ||
Net loss | $ (1,555,183) | $ (1,578,762) |
Adjustments to reconcile net (loss) profit to net cash provided by operating activities: | ||
Depreciation and Amortization of intangible assets | 2,542,432 | 2,486,283 |
Stock-based compensation | 18,826 | |
Interest expense | 341,123 | 220,992 |
Deferred tax | 11,269 | |
Recovery of doubtful accounts, net | (2,842) | |
Provision for withholding taxes receivable | 98,226 | |
(Gain) Loss from fixed assets disposal | (2,189) | 43 |
Changes in operating assets and liabilities: | ||
Accounts and other receivables | (673,605) | (148,074) |
Other current assets | (1,005,395) | 88,282 |
Inventory | (2,105,633) | (70,808) |
Amount due from related parties | 365,594 | 129,256 |
Other non-current assets | (98,693) | 186,250 |
Trade and other payables | 872,339 | (592,783) |
Other current liabilities | 28,428 | (5,404) |
Income tax payables | (47,099) | |
Amount due to related parties | 2,566,716 | 422,211 |
Withholding taxes receivable | 522,688 | (356,170) |
Provision for employee benefits | 146,100 | 107,961 |
Net cash provided by operating activities | 2,042,948 | 869,431 |
Investing activities | ||
Purchase of property and equipment | (2,251,341) | (188,890) |
Proceeds from fixed assets disposal | 2,598 | 165 |
Purchase of intangible assets | (5,524) | |
Cash acquired from acquisition of a subsidiary | 24,276 | |
Net cash used in investing activities | (2,224,467) | (194,249) |
Financing activities | ||
Proceeds from borrowings | 1,622,855 | 3,516,143 |
Repayment of borrowings | (378,046) | (1,207,112) |
Interest paid | (269,389) | (72,823) |
Lease payments | (977,073) | (1,401,490) |
Net cash (used in) provided by financing activities | (1,653) | 834,718 |
Effect of exchange rate changes on cash | (554,528) | (178,352) |
Net (decrease) increase in cash and cash equivalents, and restricted cash | (737,700) | 1,331,548 |
Cash and cash equivalents, and restricted cash at beginning of year | 10,129,910 | 7,687,721 |
Cash and cash equivalents, and restricted cash at end of period | $ 9,392,210 | $ 9,019,269 |
Nature of Operations
Nature of Operations | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of expenses by nature [text block] [Abstract] | |
NATURE OF OPERATIONS | 1. NATURE OF OPERATIONS Guardforce AI Co., Limited (“Guardforce”) is a company incorporated and domiciled in the Cayman Islands under the Companies Act on April 20, 2018. The address of its registered office is 10 Anson Road, #28-01 International Plaza, Singapore 079903. Guardforce is controlled by Guardforce AI Technology Limited (“AI Technology”). Guardforce AI Holding Limited (“AI Holdings”) was incorporated in the British Virgin Islands under the BVI Business Companies Act, 2004, on May 22, 2018. AI Holdings is a 100% owned subsidiary of Guardforce. AI Holdings’ registered office is located in British Virgin Islands. Guardforce AI Robots Limited (“AI Robots”) was incorporated in the British Virgin Islands under the BVI Business Companies Act, 2004, on May 22, 2018. AI Robots is a 100% owned subsidiary of Guardforce. Guardforce AI (Hong Kong) Co., Limited (“AI Hong Kong”) was incorporated in Hong Kong under the Hong Kong Companies’ Ordinance (Chapter 622), on May 30, 2018. AI Hong Kong is a 100% owned subsidiary of Guardforce. Beginning March 2020, AI Hong Kong commenced robotic AI solution business of selling robots. Southern Ambition Limited (“Southern Ambition”) was incorporated in the British Virgin Islands under the BVI Business Companies Act, 2004, on August 3, 2018. Southern Ambition is a 100% owned subsidiary of AI Robots. Horizon Dragon Limited (“Horizon Dragon”) was incorporated in the British Virgin Islands under the BVI Business Companies Act, 2004, on July 3, 2018. Horizon Dragon is a 100% owned subsidiary of AI Holdings. Guardforce AI Group Co., Limited (“AI Thailand”) was incorporated in Thailand under the Civil and Commercial Code at the Registry of partnerships and Companies, Bangkok Metropolis, Thailand, on September 21, 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. 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 December 31, 2018. The cumulative preferred shares are entitled to dividends of $0.03 per share when declared. The cumulative unpaid dividends of the preferred shares as of December 31, 2020 is approximately $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. No dividends were declared during the six months ended June 30, 2021 and 2020. Guardforce Cash Solutions Security Thailand Co., Limited (“GF Cash (CIT)”) was incorporated in Thailand under the Civil and Commercial Code at the Registry of partnerships and Companies, Bangkok Metropolis, Thailand, 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 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. GF Cash (CIT)’s head office is located at No. 96 Vibhavadi-Rangsit Road, Talad Bang Khen Sub-District, Laksi District, Bangkok, Thailand. Beginning March 2020, GF Cash (CIT) commenced robotic AI solution business of selling and leasing of robots. No dividends were declared during the six months ended June 30, 2021 and 2020. 97% of the shares of 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 December 31, 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 June 30, 2021: |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of significant accounting policies [text block] [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 December 31, 2020 and 2019, 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 ending December 31, 2021 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 December 15, 2021. 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 December 31, 2020 and 2019, which have been prepared in accordance with IFRS. The unaudited interim condensed consolidated financial statements have been prepared on a historical cost basis. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying unaudited condensed consolidated financial statements and consist of only normal recurring adjustments, except as disclosed herein. The results of operations for the six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the full year ended December 31, 2021. All amounts are presented in United States dollars (“US $” or “USD”) and have been rounded to the nearest US $. 2.2 Basis of consolidation The consolidated statements of profit or loss and other comprehensive loss, changes in equity (deficit) and 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 unaudited interim condensed consolidated statements of financial position of the Company as at June 30, 2021 and 2020 have been prepared to present the assets and liabilities of the subsidiaries using the existing book values from the controlling shareholders’ perspective. Equity interests in subsidiaries held by parties other than the controlling shareholders are presented as non-controlling interests in equity. All intra-group and inter-company transactions and balances have been eliminated on consolidation. 2.3 Business combinations under common control IFRS 3 Business combinations 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, profit or loss, comprehensive income, changes in equity and 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, comprehensive income and changes in equity attributed to controlling and non-controlling interests. 2.5 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 and Handshake is the Hong Kong dollar. The functional currency of AI Thailand and GF Cash (CIT) is the Thai Baht (“Baht” or “THB”). The currency exchange rates that impact our business are shown in the following table: Period End Rate Average Rate June 30, December 31, For the six months ended June 30, 2021 2020 2021 2020 Thai Baht 0.0312 0.0324 0.0325 0.0316 Hong Kong Dollar 0.1282 0.1282 0.1282 0.1282 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 December 31, 2020. 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. 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 December 31, 2020 and 2019. 2.7.2 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 and finance leases. 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. 2.7.3 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 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. 2.7.4 Impact of COVID-19 The Coronavirus Disease (COVID-19) outbreak and the measures taken to contain the spread of the pandemic have created a high level of uncertainty to global economic prospects and this has impacted the Company’s operations and its financial performance in year 2021 and 2020. As COVID-19 continues to evolve with significant level of uncertainty, management of the Company is unable to reasonably estimate the full financial impact of COVID-19 on the Company’s financial results in year 2021. The Company is monitoring the situation closely and to mitigate the financial impact, it is conscientiously managing its cost by adopting an operating cost reduction strategy and conserving liquidity by working with major creditors to align repayment obligations with receivable collections. Based on the Company’s most recent projections for year 2021 and with over $9 million in cash and cash equivalents, management of the Company believes that the Company will be able to continue to operate as a going concern in the foreseeable future for at least the next 12 months. 2.8 Revenue from contracts with customers The Company generates its revenue primarily from rendering the following services: (i) Cash-In-Transit - Non Dedicated Vehicle (Non-DV); (ii) Cash-In-Transit - Dedicated Vehicle (DV); (iii) ATM management; (iv) Cash Processing (CPC); (v) Cash Center Operations (CCT); (vi) Cheque Center Service (CDC); (vii) Express Cash; (viii) Coin Processing Service; (ix) Cash Deposit Management Solutions and (x) Robotics AI Solutions. The Company recognizes revenue when it has transferred to its customer control over the service rendered. Control refers to the ability of the customer to direct and obtain substantially all the transferred service’s benefits. Also, it implies that the customer has the ability to prevent a third-party from directing the use and obtaining substantially all the benefits of the transferred service. The Company’s management applies the following considerations to analyze the moment in which the control of the service is transferred to the customer. ● Identify the contract or quotation with the agreed service price. ● Evaluate the services engaged in the customer’s contract and identify the related performance obligations. ● Consider the contract terms and commonly accepted practices in the business to determine the transaction price. The transaction price is the consideration that the Company expects to be entitled for delivering the services engaged with the customer. The consideration engaged in a customer’s contract is generally a fixed amount. ● Allocate the transaction price, if necessary, to each performance obligation (to each good or service that is different) for an amount that represents the part of the benefit that the Company expects to receive in exchange for the right of delivering the services engaged with the customer. ● Recognize revenue when the Company satisfied the performance obligation through the rendering of services engaged. All of the conditions mentioned above are accomplished normally when the services are rendered to the customer and revenue is recognized when the Company satisfied the performance obligation over time or point in time depending on the service type. The reported revenue reflects services delivered at the contract or agreed-upon price. Revenue is recognized when the related performance obligation is satisfied. Disaggregation information of revenue by service type is as follows: For the six months ended June 30, 2021 Percentage of 2020 Percentage of Service Type $ Revenue $ Revenue Cash-In-Transit – Non-Dedicated Vehicles (CIT Non-DV) $ 5,939,614 32.3 % $ 5,964,178 31.8 % Cash-In-Transit - Dedicated Vehicle to Banks (CIT DV) 2,380,880 12.9 % 2,438,017 13.0 % ATM Management 5,806,020 31.5 % 6,267,452 33.5 % Cash Processing (CPC) 1,401,421 7.6 % 1,443,220 7.7 % Cash Center Operations (CCT) 1,540,291 8.4 % 1,595,889 8.5 % Cheque Center Service (CDC) 31,081 0.2 % 30,285 0.2 % Others ** 251,890 1.4 % 223,342 1.2 % Cash Deposit Management Solutions (GDM) 849,956 4.6 % 637,877 3.4 % Robotics AI solutions 203,872 1.1 % 128,250 0.7 % Total $ 18,405,025 100.0 % $ 18,728,786 100.0 % ** Others include primarily revenue from express cash and coin processing services. 2.9 Cost of revenue Cost of revenue consists primarily of internal labor costs and related benefits, and other overhead costs that are directly attributable to services provided. 2.10 Recent Accounting Pronouncements All new standards and amendments that are effective for annual reporting period commencing January 1, 2021 have been applied by the Company for the six months ended June 30, 2021. The adoption of these new and amended standards did not have material impact on the consolidated financial statements of the Company. A number of new standards and amendments to standards have not come into effect for the year beginning January 1, 2021, and they have not been early adopted by the Company in preparing these consolidated financial statements. None of these new standards and amendments to standards is expected to have a significant effect on the consolidated financial statements of the Company. |
Business Combination
Business Combination | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of contingent liabilities in business combination [text block] [Abstract] | |
BUSINESS COMBINATION | 3. BUSINESS COMBINATION On the February 4, 2021, the Company announced the acquisition of a majority stake in information security consultants Handshake Networking Ltd (“Handshake”), a Hong Kong-based company specializing in penetration testing. A total of 43,700 shares were issued and valued at $7.50 per share in consideration for 51% of Handshake. Accordingly, the acquisition has been accounted for in accordance with IFRS 3 guidelines, whereby the Company recognized the assets and liabilities of Handshake transferred at their carrying amounts with a carry-over basis. The following represents the purchase price allocation at the dates of the acquisition: March 25, Cash and cash equivalents $ 24,276 Other current assets 32,250 Current liabilities (58,297 ) Goodwill 329,534 Total purchase price $ 327,763 |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of restricted cash and cash equivalents [text block] [Abstract] | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 4. CASH, CASH EQUIVALENTS AND RESTRICTED CASH As at As at Cash on hand $ 368,117 $ 392,803 Cash in bank 7,357,012 8,021,241 Subtotal 7,725,129 8,414,044 Restricted cash 1,667,081 1,715,866 Cash, cash equivalents, and restricted cash $ 9,392,210 $ 10,129,910 |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2021 | |
Inventory [Abstract] | |
INVENTORY | 5. INVENTORY As at As at Robots at warehouse $ 2,553,957 $ 252,411 Robots in transit - 242,670 Inventory $ 2,553,957 $ 495,081 No allowance for slow moving or obsolete inventory was recorded for the six months ended June 30, 2021 and 2020. |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Jun. 30, 2021 | |
Accounts Receivable, Net [abstract] | |
ACCOUNTS RECEIVABLE, NET | 6. ACCOUNTS RECEIVABLE, NET As at As at Accounts receivable $ 5,790,229 $ 5,468,911 Allowance for doubtful accounts - - Accounts receivable, net $ 5,790,229 $ 5,468,911 |
Withholding Tax Receivables, Ne
Withholding Tax Receivables, Net | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of acquired receivables [text block] [Abstract] | |
WITHHOLDING TAX RECEIVABLES, NET | 7. WITHHOLDING TAX RECEIVABLES, NET As at As at Current portion $ - $ 690,487 Non-current portion 3,359,752 3,534,552 Withholding tax receivables, net $ 3,359,752 $ 4,225,039 During the second half of year 2020, the Company received a withholding taxes refund in connection with the Company’s 2013 to 2015 withholding taxes refund applications. The Company wrote off the difference between the receivable recorded and amount of known refund from the Thai Revenue Department. The Company did not have any write offs during the six months ended June 30, 2021 and 2020. Out of prudence, based on amount written off for the receivable related to year 2013 to 2015, the Company recorded an allowance of $98,226 against its withholding taxes receivable for the six months ended June 30, 2021. |
Other Current and Other Non-Cur
Other Current and Other Non-Current Assets | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Other Current And Noncurrent Assets [Abstract] | |
OTHER CURRENT AND OTHER NON-CURRENT ASSETS | 8. OTHER CURRENT AND OTHER NON-CURRENT ASSETS As at As at Input VAT receivable $ 325,208 $ 134,746 Prepayments - office rental 1,515,585 952,616 Prepayments - insurance 503,978 292,095 Prepayments - others 17,709 51,920 Uniforms 15,450 17,954 Tools and supplies 84,724 135,553 Other current assets $ 2,462,654 $ 1,584,884 Deposits $ 330,416 $ 361,275 Other non-current assets $ 330,416 $ 361,275 |
Fixed Assets, Net
Fixed Assets, Net | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of property, plant and equipment [text block] [Abstract] | |
FIXED ASSETS, NET | 9. FIXED ASSETS, NET Leasehold Machinery and Office decoration Vehicles Assets under GDM machines Robots Total Cost At December 31, 2020 $ 3,649,107 $ 5,713,840 $ 5,951,808 $ 17,885,762 $ - $ 1,883,116 $ 884,950 $ 35,968,583 Additions 4,284 47,695 54,330 399,639 23,027 - 2,385,878 2,914,853 Disposals - (33,571 ) (3,136 ) (115,471 ) - (7,443 ) (159,621 ) Exchange differences (231,811 ) (362,976 ) (378,093 ) (1,136,207 ) - (119,627 ) (26,570 ) (2,255,284 ) At June 30, 2021 (Unaudited) 3,421,580 5,364,988 5,624,909 17,033,723 23,027 1,763,489 3,236,815 36,468,531 Accumulated Depreciation At December 31, 2020 2,923,013 5,390,966 5,124,622 14,004,064 - 616,280 25,284 28,084,229 Depreciation charged for the year 78,674 89,833 111,429 611,225 - 174,897 178,999 1,245,057 Disposals - (33,568 ) (3,091 ) (115,471 ) - (248 ) (152,378 ) Exchange differences (185,685 ) (342,465 ) (325,546 ) (889,619 ) - (39,150 ) (990 ) (1,783,455 ) As June 30, 2021 (Unaudited) 2,816,002 5,104,766 4,907,414 13,610,199 - 752,027 203,045 27,393,453 Net book value At June 30, 2021 (Unaudited) $ 605,578 $ 260,222 $ 717,495 $ 3,423,524 $ 23,027 $ 1,011,462 $ 3,033,770 $ 9,075,078 There was no impairment of fixed assets recorded for the six months ended June 30, 2021 and 2020. No fixed assets were pledged as security for bank borrowings. |
Right-of-Use Assets and Operati
Right-of-Use Assets and Operating Lease Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of non-current assets held for sale and discontinued operations [text block] [Abstract] | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | 10. RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES The carrying amounts of right-of-use assets are as below: As at As at As at January 1 $ 4,190,351 $ 6,173,590 New leases 120,399 532,978 Depreciation expense (1,223,282 ) (2,506,446 ) Exchange difference (218,864 ) (9,771 ) Net book amount $ 2,868,604 $ 4,190,351 Lease liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate. The weighted average incremental borrowing rate applied to new leases during six months ended June 30, 2021 was 3.25%. During the six months ended June 30, 2021, interest expense of $125,245 arising from lease liabilities was included in finance costs. Depreciation expense related to right-of-use assets was $1,223,282 during the six months ended June 30, 2021. |
Intangible Assets, Net
Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of detailed information about intangible assets [text block] [Abstract] | |
INTANGIBLE ASSETS, NET | 11. 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. As of June 30, 2021 and December 31, 2020, the Company had no indefinite lived intangible assets. Computer software Cost At December 31, 2020 $ 995,045 Additions 4,782 Exchange difference (63,211 ) At June 30, 2021 (Unaudited) 936,616 Accumulated amortization At December 31, 2020 771,637 Amortization charged for the year 24,559 Exchange difference (49,018 ) As June 30, 2021 (Unaudited) 747,178 Net book value At June 30, 2021 (Unaudited) $ 189,438 |
Trade and Other payables and Ot
Trade and Other payables and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Trade And Other Payables And Other Current Liabilities [Abstract] | |
TRADE AND OTHER PAYABLES AND OTHER CURRENT LIABILITIES | 12. TRADE AND OTHER PAYABLES AND OTHER CURRENT LIABILITIES As at As at Trade accounts payable – third parties $ 2,396,957 $ 1,366,482 Accrued salaries and bonus 547,114 140,321 Accrued customer claims, cash loss and shortage, others** 105,935 33,608 Trade and other payables $ 3,050,006 $ 1,540,411 Output VAT $ 134,296 $ 114,877 Accrued Expenses 575,935 375,815 Payroll Payable 359,222 560,051 Other Payables 279,974 198,363 Other current liabilities $ 1,349,427 $ 1,249,106 ** Includes a provision for penalty for failure to meet certain performance indicators as stipulated in certain customer contracts for approximately $45,700 and $14,600 respectively. |
Borrowings from Financial Insti
Borrowings from Financial Institutions | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of detailed information about borrowings [text block] [Abstract] | |
BORROWINGS FROM FINANCIAL INSTITUTIONS | 13. BORROWINGS FROM FINANCIAL INSTITUTIONS As at As at Current portion of long-term borrowings $ 1,700,473 $ 494,994 Long-term borrowings 986,584 993,869 Borrowings from financial institutions $ 2,687,057 $ 1,488,863 The Company’s borrowings are mainly used to support its business in Thailand. Those borrowings carry interest at the rate varies from 2% to MLR minus 1% per annum. Maturity date of borrowings is made and repayable on various dates from November 5, 2021 to April 7, 2025. For the six months ended June 30, 2021 and 2020, the interest expense was $22,212 and $47,918, respectively. As of June 30, 2021, the Company has unused bank overdraft availability of approximately $312,000 (THB10 million) and unused trust receipts availability of approximately $1,560,000 (THB50 million). |
Finance Lease Liabilities
Finance Lease Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Finance Lease Liabilities [Abstract] | |
FINANCE LEASE LIABILITIES | 14. FINANCE LEASE LIABILITIES As at As at Current portion $ 790,704 $ 632,105 Non-current portion 825,841 1,023,366 Finance lease liabilities $ 1,616,545 $ 1,655,471 For the six months ended June 30, 2021 and 2020, interest expense was $46,102 and $52,499, respectively. The minimum lease payments under finance lease agreements are as follows: As at As at Within 1 year $ 320,700 $ 701,796 After 1 year but within 5 years 1,440,400 1,074,047 Less: Finance charges (144,555 ) (120,372 ) Present value of finance lease liabilities, net $ 1,616,545 $ 1,655,471 Finance leased assets comprise primarily vehicles and office equipment as follow: As at As at Cost $ 3,370,741 $ 8,459,215 Less: Accumulated depreciation (1,029,460 ) (4,226,875 ) Net book value $ 2,341,282 $ 4,232,340 |
Taxation
Taxation | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of income tax [text block] [Abstract] | |
TAXATION | 15. TAXATION Value added tax (“VAT”) The Company is subject to a statutory VAT of 7% for services 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 is presented on the statements of financial position when input VAT is less than the output VAT. A recoverable balance is presented on the statements of financial position when input VAT is larger than the output VAT. 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. |
Provision for Employee Benefits
Provision for Employee Benefits | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of employee benefits [text block] [Abstract] | |
PROVISION FOR EMPLOYEE BENEFITS | 16. PROVISION FOR EMPLOYEE BENEFITS The Company has 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 benefits when needed. Provision Defined benefit obligations at December 31, 2020 $ 6,841,673 Estimate for the six months period $ (294,175 ) Defined benefit obligations at June 30, 2021 (Unaudited) $ 6,547,498 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders Equity Disclosure [Abstract] | |
SHAREHOLDERS’ EQUITY | 17. SHAREHOLDERS’ EQUITY On August 20, 2021, the shareholders of the Company approved a 1 for 3 reverse split of the Company’s authorized and issued ordinary shares whereby every three shares were consolidated into one share (the “Reverse Split”). In addition, the par value of each ordinary share increased from $0.001 to $0.003. The interim financial statements and all share and per share amounts have been retroactively restated to reflect the Reverse Split. In addition to the Reverse Split, the shareholders of the Company also approved a proposal to resolve fractional entitlements to the Company’s issued ordinary shares resulting from the Reserve Split – under the proposal, fractional shares will be disregarded and will not be issued to the shareholders of the Company but all such fractional shares shall be redeemed in cash for the fair value of such fractional share, with fair value being defined as the closing price of the ordinary shares on a post-reverse split basis on the applicable trading market on the first trading date of the Company’s ordinary shares following the effectiveness of the Reverse Split; and an increase in the Company’s authorized ordinary shares from 100,000,000 to 300,000,000. As of December 31, 2020, 17,356,090 ordinary shares were issued at par value of $0.003, equivalent to share capital of $52,069. In March 2021, the Company issued 187,598 ordinary shares (see Note 18) and 43,700 ordinary shares (see Note 3) at par value. Total ordinary shares issued as of June 30, 2021 was 17,587,388, equivalent to share capital of approximately $52,763. As of June 30, 2021 and December 31, 2020, subscription receivable for these shares was $50,000. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Stock Based Compensation [Abstract] | |
STOCK-BASED COMPENSATION | 18. STOCK-BASED COMPENSATION 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”). As consideration for the Merger, the Company agreed to issue an aggregate of 877,025 shares of capital stock (“Plan Shares’) to VCAB’s claim holders. As of December 31, 2020, the Company has issued, 689,427 of the Plan Shares to approximately 670 designated and Bankruptcy Court approved claim holders. In March 2021, the Company issued 187,598 of the Plan Shares to additional claim holders upon their approval by the Bankruptcy Court. Following the completion of this process, the Company has approximately 1,300 holders of its outstanding ordinary shares. During the year ended December 31, 2020, the Company recorded the fair value of the shares in connection to the 877,025 shares issued in the merger transaction of $18,826 as stock-based compensation expense. |
Administrative Expenses
Administrative Expenses | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of general and administrative expense [text block] [Abstract] | |
ADMINISTRATIVE EXPENSES | 19. ADMINISTRATIVE EXPENSES For the six months ended 2021 2020 Staff expense $ 1,248,056 $ 1,193,864 Rental expense 340,752 703,011 Depreciation and amortization expense 235,604 84,288 Utilities expense 81,255 85,467 Travelling and entertainment expense 77,747 45,436 Professional fees 331,522 488,504 Repairs and maintenance 26,226 40,774 Employee benefits 353,358 566,561 Other service fees 153,906 368,397 Other expenses** 423,182 518,230 $ 3,271,608 $ 4,094,532 ** Other expenses mainly comprised of stock-based compensation, office expenses, stamp duties, training costs, etc. |
Legal Reserve
Legal Reserve | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of reserves within equity [text block] [Abstract] | |
LEGAL RESERVE | 20. 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 at least 10% of the registered share capital. The legal reserve is non-distributable. The Company reserve has met the legal reserve requirement of $223,500 as of June 30, 2021 and December 31, 2020. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of related party [text block] [Abstract] | |
RELATED PARTY TRANSACTIONS | 21. RELATED PARTY TRANSACTIONS The principal related party balances and transactions as at and for the six months ended June 30, 2021 and 2020 are as follows: The principal related party balances and transactions as of and for the years ended December 31, 2020 and 2019 are as follows: Amounts due from related parties: As at As at Quantum Infosec Inc (“Quantum”) (a, b) $ 357 $ - Guardforce TH Group Company Limited (b) 6,593 6,026 Guardforce AI Technology Limited (b) 236 - Guardforce AI Service Limited (b) 236 - Bangkok Bank Public Company Limited (c) - 443 Guardforce Limited (d) - 20,647 Shenzhen Intelligent Guardforce Robot Technology Co., Limited (e) - 346,152 $ 7,422 $ 373,268 (a) Quantum Infosec Inc is related with the Company since March 2021 when the Company acquired Handshake. Quantum owns 49% of Handshake and the shareholders of Quantum are the directors of Handshake. (b) Amounts due from Quantum Infosec Inc, Guardforce TH Group Company Limited, Guardforce AI Technology Limited, Guardforce AI Service Limited were business advances for operational purposes. (c) Amounts due from Bangkok Bank Public Company Limited represents trade receivables for service provided by the Company. (d) Amounts due from Guardforce Limited represents primarily trade receivables for the sale of robots. The balance was fully settled in January 2021. (e) Amounts due from Shenzhen Intelligent Guardforce Robot Technology Co., Limited comprised of $187,665 advance to suppliers for the purchase of robots and $158,487 commission receivable. Amounts due to related parties: As at As at Tu Jingyi (b) $ 88,047 $ 88,047 Profit Raider Investment Limited (b) 1,253,814 1,136,664 Shenzhen Intelligent Guardforce Robot Technology Co., Limited (d) 2,881,698 - Guardforce Holdings (HK) Limited (c) 156,782 156,782 Richard Hall (e) 15,976 - Shenzhen Junwei Investment Development Company Limited (“Junwei”) (a) - 225,085 Guardforce Aviation Security Company Limited (d) - 1,224 Guardforce Security (Thailand) Company Limited (d) - 62,667 $ 4,396,317 $ 1,670,469 (a) Amounts due to Shenzhen Junwei Investment Development Company Limited represent non-interest bearing advances from related parties. In January 2021, the amount due to Junwei was forgiven. (b) Amounts due to Tu Jingyi and Profit Raider Investment Limited represented interest accrued on the respective loans. (c) Amounts due to Guardforce Holdings (HK) Limited comprised of $99,998 advances made and $56,784 accrued interests on the loans. (d) Amounts due to Shenzhen Intelligent Guardforce Robot Technology Co., Limited , Guardforce Aviation Security Company Limited and Guardforce Security (Thailand) Company Limited represent accounts payable for the products or services provided by related parties. (e) Richard Hall is related to the Company since March 2021 when the Company acquired Handshake. Richard is one of the shareholders of Quantum which owns 49% of Handshake and Richard is the director of Handshake. Amount due to Richard represent advances made to Handshake. Long-term borrowings from related parties: As at As at Guardforce Holdings (HK) Limited (a) $ 4,040,500 $ 4,140,500 Tu Jingyi (b) 1,437,303 1,437,303 Profit Raider Investment Limited (c) 12,649,903 13,508,009 $ 18,127,706 $ 19,085,812 (a) From time to time, the Company borrowed from Guardforce Holdings (HK) Limited whereby as of June 30, 2021, total loan amount from Guardforce Holdings (HK) Limited was $4,648,498. These loans bear interest rate of 2% and are due on various dates from December 22, 2022 to September 8, 2023. (b) On September 1, 2018, the Company entered into an agreement with Mr. Tu Jingyi whereby he lent $1,437,303 (RMB10 million) to the Company. The loan is due on August 31, 2022 with an interest rate at 1.5%. (c) The loan with Profit Raider Investment Limited is due on December 31, 2022. As of June 30, 2021, the outstanding principal amount due was $12,649,903 and the amount of interest accrued on the loan, calculated up to June 31, 2021 was $1,253,814. Related party transactions: For the six months ended Nature 2021 2020 Service/ Products received from related parties: Shenzhen Intelligent Guardforce Robot Technology Co., Limited – Purchases (a) $ 4,652,125 $ 150,185 Service/ Products delivered to related parties: Guardforce Limited – Sales (b) $ 111,564 $ 128,410 Nature of transactions: (a) The Company purchased robots from Shenzhen Intelligent Guardforce Robot Technology Co., Limited; (b) The Company sold robots to Guardforce Limited. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of commitments and contingent liabilities [text block] [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 22. COMMITMENTS AND CONTINGENCIES Executives/directors agreements The Company has several employment agreements with executives and directors with the latest expiring in 2024. 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 of June 30, 2021, are as follows: Amount Twelve months ending June 30: 2022 $ 1,048,214 2023 740,372 2024 110,000 Total minimum payment required $ 1,898,586 Contracted expenditure commitments The Company’s contracted expenditures commitments as of June 30, 2021 but not provided in the consolidated financial statements are as follows: Payments Due by Period Less than 1-3 4-5 More Contractual Obligations Nature Total 1 year years years 5 years Service fee commitments (a) $ 804,992 $ 368,175 $ 436,817 $ - $ - Operating lease commitments (b) 403,656 362,233 41,423 - - $ 1,208,648 $ 730,408 $ 478,240 $ - $ - (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) The Company has leased offices and various low value items with various lease terms. Bank guarantees As of June 30, 2021, the Company had commitments with banks for bank guarantees in favor of government agencies and others of approximately $7,000,000. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [abstract] | |
SUBSEQUENT EVENTS | 23. SUBSEQUENT EVENTS Subsequent events have been reviewed through the date the consolidated financial statements were issued and required no adjustments or disclosures. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
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 December 31, 2020 and 2019, which have been prepared in accordance with IFRS. The unaudited interim condensed consolidated financial statements have been prepared on a historical cost basis. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying unaudited condensed consolidated financial statements and consist of only normal recurring adjustments, except as disclosed herein. The results of operations for the six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the full year ended December 31, 2021. All amounts are presented in United States dollars (“US $” or “USD”) and have been rounded to the nearest US $. |
Basis of consolidation | 2.2 Basis of consolidation The consolidated statements of profit or loss and other comprehensive loss, changes in equity (deficit) and 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 unaudited interim condensed consolidated statements of financial position of the Company as at June 30, 2021 and 2020 have been prepared to present the assets and liabilities of the subsidiaries using the existing book values from the controlling shareholders’ perspective. Equity interests in subsidiaries held by parties other than the controlling shareholders are presented as non-controlling interests in 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 Business combinations 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, profit or loss, comprehensive income, changes in equity and 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, comprehensive income and changes in equity attributed to controlling and non-controlling interests. |
Foreign currency translation | 2.5 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 and Handshake is the Hong Kong dollar. The functional currency of AI Thailand and GF Cash (CIT) is the Thai Baht (“Baht” or “THB”). The currency exchange rates that impact our business are shown in the following table: Period End Rate Average Rate June 30, December 31, For the six months ended June 30, 2021 2020 2021 2020 Thai Baht 0.0312 0.0324 0.0325 0.0316 Hong Kong Dollar 0.1282 0.1282 0.1282 0.1282 |
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 December 31, 2020. |
Financial risk management | 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. 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 December 31, 2020 and 2019. 2.7.2 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 and finance leases. 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. 2.7.3 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 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. 2.7.4 Impact of COVID-19 The Coronavirus Disease (COVID-19) outbreak and the measures taken to contain the spread of the pandemic have created a high level of uncertainty to global economic prospects and this has impacted the Company’s operations and its financial performance in year 2021 and 2020. As COVID-19 continues to evolve with significant level of uncertainty, management of the Company is unable to reasonably estimate the full financial impact of COVID-19 on the Company’s financial results in year 2021. The Company is monitoring the situation closely and to mitigate the financial impact, it is conscientiously managing its cost by adopting an operating cost reduction strategy and conserving liquidity by working with major creditors to align repayment obligations with receivable collections. Based on the Company’s most recent projections for year 2021 and with over $9 million in cash and cash equivalents, management of the Company believes that the Company will be able to continue to operate as a going concern in the foreseeable future for at least the next 12 months. |
Revenue from contracts with customers | 2.8 Revenue from contracts with customers The Company generates its revenue primarily from rendering the following services: (i) Cash-In-Transit - Non Dedicated Vehicle (Non-DV); (ii) Cash-In-Transit - Dedicated Vehicle (DV); (iii) ATM management; (iv) Cash Processing (CPC); (v) Cash Center Operations (CCT); (vi) Cheque Center Service (CDC); (vii) Express Cash; (viii) Coin Processing Service; (ix) Cash Deposit Management Solutions and (x) Robotics AI Solutions. The Company recognizes revenue when it has transferred to its customer control over the service rendered. Control refers to the ability of the customer to direct and obtain substantially all the transferred service’s benefits. Also, it implies that the customer has the ability to prevent a third-party from directing the use and obtaining substantially all the benefits of the transferred service. The Company’s management applies the following considerations to analyze the moment in which the control of the service is transferred to the customer. ● Identify the contract or quotation with the agreed service price. ● Evaluate the services engaged in the customer’s contract and identify the related performance obligations. ● Consider the contract terms and commonly accepted practices in the business to determine the transaction price. The transaction price is the consideration that the Company expects to be entitled for delivering the services engaged with the customer. The consideration engaged in a customer’s contract is generally a fixed amount. ● Allocate the transaction price, if necessary, to each performance obligation (to each good or service that is different) for an amount that represents the part of the benefit that the Company expects to receive in exchange for the right of delivering the services engaged with the customer. ● Recognize revenue when the Company satisfied the performance obligation through the rendering of services engaged. All of the conditions mentioned above are accomplished normally when the services are rendered to the customer and revenue is recognized when the Company satisfied the performance obligation over time or point in time depending on the service type. The reported revenue reflects services delivered at the contract or agreed-upon price. Revenue is recognized when the related performance obligation is satisfied. Disaggregation information of revenue by service type is as follows: For the six months ended June 30, 2021 Percentage of 2020 Percentage of Service Type $ Revenue $ Revenue Cash-In-Transit – Non-Dedicated Vehicles (CIT Non-DV) $ 5,939,614 32.3 % $ 5,964,178 31.8 % Cash-In-Transit - Dedicated Vehicle to Banks (CIT DV) 2,380,880 12.9 % 2,438,017 13.0 % ATM Management 5,806,020 31.5 % 6,267,452 33.5 % Cash Processing (CPC) 1,401,421 7.6 % 1,443,220 7.7 % Cash Center Operations (CCT) 1,540,291 8.4 % 1,595,889 8.5 % Cheque Center Service (CDC) 31,081 0.2 % 30,285 0.2 % Others ** 251,890 1.4 % 223,342 1.2 % Cash Deposit Management Solutions (GDM) 849,956 4.6 % 637,877 3.4 % Robotics AI solutions 203,872 1.1 % 128,250 0.7 % Total $ 18,405,025 100.0 % $ 18,728,786 100.0 % ** Others include primarily revenue from express cash and coin processing services. |
Cost of revenue | 2.9 Cost of revenue Cost of revenue consists primarily of internal labor costs and related benefits, and other overhead costs that are directly attributable to services provided. |
Recent Accounting Pronouncements | 2.10 Recent Accounting Pronouncements All new standards and amendments that are effective for annual reporting period commencing January 1, 2021 have been applied by the Company for the six months ended June 30, 2021. The adoption of these new and amended standards did not have material impact on the consolidated financial statements of the Company. A number of new standards and amendments to standards have not come into effect for the year beginning January 1, 2021, and they have not been early adopted by the Company in preparing these consolidated financial statements. None of these new standards and amendments to standards is expected to have a significant effect on the consolidated financial statements of the Company. |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of significant accounting policies [text block] [Abstract] | |
Schedule of currency exchange rates impact | Period End Rate Average Rate June 30, December 31, For the six months ended June 30, 2021 2020 2021 2020 Thai Baht 0.0312 0.0324 0.0325 0.0316 Hong Kong Dollar 0.1282 0.1282 0.1282 0.1282 |
Schedule of disaggregation information of revenue by service type | For the six months ended June 30, 2021 Percentage of 2020 Percentage of Service Type $ Revenue $ Revenue Cash-In-Transit – Non-Dedicated Vehicles (CIT Non-DV) $ 5,939,614 32.3 % $ 5,964,178 31.8 % Cash-In-Transit - Dedicated Vehicle to Banks (CIT DV) 2,380,880 12.9 % 2,438,017 13.0 % ATM Management 5,806,020 31.5 % 6,267,452 33.5 % Cash Processing (CPC) 1,401,421 7.6 % 1,443,220 7.7 % Cash Center Operations (CCT) 1,540,291 8.4 % 1,595,889 8.5 % Cheque Center Service (CDC) 31,081 0.2 % 30,285 0.2 % Others ** 251,890 1.4 % 223,342 1.2 % Cash Deposit Management Solutions (GDM) 849,956 4.6 % 637,877 3.4 % Robotics AI solutions 203,872 1.1 % 128,250 0.7 % Total $ 18,405,025 100.0 % $ 18,728,786 100.0 % |
Business Combination (Tables)
Business Combination (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of contingent liabilities in business combination [text block] [Abstract] | |
Schedule of represents the purchase price allocation at the dates of the acquisition | March 25, Cash and cash equivalents $ 24,276 Other current assets 32,250 Current liabilities (58,297 ) Goodwill 329,534 Total purchase price $ 327,763 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of restricted cash and cash equivalents [text block] [Abstract] | |
Schedule of cash and cash equivalents restricted cash | As at As at Cash on hand $ 368,117 $ 392,803 Cash in bank 7,357,012 8,021,241 Subtotal 7,725,129 8,414,044 Restricted cash 1,667,081 1,715,866 Cash, cash equivalents, and restricted cash $ 9,392,210 $ 10,129,910 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of inventories [text block] [Abstract] | |
Scheduleo of inventory | As at As at Robots at warehouse $ 2,553,957 $ 252,411 Robots in transit - 242,670 Inventory $ 2,553,957 $ 495,081 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounts Receivable, Net [abstract] | |
Schedule of accounts receivables | As at As at Accounts receivable $ 5,790,229 $ 5,468,911 Allowance for doubtful accounts - - Accounts receivable, net $ 5,790,229 $ 5,468,911 |
Withholding Tax Receivables, _2
Withholding Tax Receivables, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of acquired receivables [text block] [Abstract] | |
Schedule of current and non current portion of tax receivables | As at As at Current portion $ - $ 690,487 Non-current portion 3,359,752 3,534,552 Withholding tax receivables, net $ 3,359,752 $ 4,225,039 |
Other Current and Other Non-C_2
Other Current and Other Non-Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Other Current And Noncurrent Assets [Abstract] | |
Schedule of other current and other non-current assets | As at As at Input VAT receivable $ 325,208 $ 134,746 Prepayments - office rental 1,515,585 952,616 Prepayments - insurance 503,978 292,095 Prepayments - others 17,709 51,920 Uniforms 15,450 17,954 Tools and supplies 84,724 135,553 Other current assets $ 2,462,654 $ 1,584,884 Deposits $ 330,416 $ 361,275 Other non-current assets $ 330,416 $ 361,275 |
Fixed Assets, Net (Tables)
Fixed Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of property, plant and equipment [text block] [Abstract] | |
Schedule of fixed assets, net | Leasehold Machinery and Office decoration Vehicles Assets under GDM machines Robots Total Cost At December 31, 2020 $ 3,649,107 $ 5,713,840 $ 5,951,808 $ 17,885,762 $ - $ 1,883,116 $ 884,950 $ 35,968,583 Additions 4,284 47,695 54,330 399,639 23,027 - 2,385,878 2,914,853 Disposals - (33,571 ) (3,136 ) (115,471 ) - (7,443 ) (159,621 ) Exchange differences (231,811 ) (362,976 ) (378,093 ) (1,136,207 ) - (119,627 ) (26,570 ) (2,255,284 ) At June 30, 2021 (Unaudited) 3,421,580 5,364,988 5,624,909 17,033,723 23,027 1,763,489 3,236,815 36,468,531 Accumulated Depreciation At December 31, 2020 2,923,013 5,390,966 5,124,622 14,004,064 - 616,280 25,284 28,084,229 Depreciation charged for the year 78,674 89,833 111,429 611,225 - 174,897 178,999 1,245,057 Disposals - (33,568 ) (3,091 ) (115,471 ) - (248 ) (152,378 ) Exchange differences (185,685 ) (342,465 ) (325,546 ) (889,619 ) - (39,150 ) (990 ) (1,783,455 ) As June 30, 2021 (Unaudited) 2,816,002 5,104,766 4,907,414 13,610,199 - 752,027 203,045 27,393,453 Net book value At June 30, 2021 (Unaudited) $ 605,578 $ 260,222 $ 717,495 $ 3,423,524 $ 23,027 $ 1,011,462 $ 3,033,770 $ 9,075,078 |
Right-of-Use Assets and Opera_2
Right-of-Use Assets and Operating Lease Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of non-current assets held for sale and discontinued operations [text block] [Abstract] | |
Schedule of carrying amounts of right-of-use assets | As at As at As at January 1 $ 4,190,351 $ 6,173,590 New leases 120,399 532,978 Depreciation expense (1,223,282 ) (2,506,446 ) Exchange difference (218,864 ) (9,771 ) Net book amount $ 2,868,604 $ 4,190,351 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of detailed information about intangible assets [text block] [Abstract] | |
Schedule of intangible assets, net | Computer software Cost At December 31, 2020 $ 995,045 Additions 4,782 Exchange difference (63,211 ) At June 30, 2021 (Unaudited) 936,616 Accumulated amortization At December 31, 2020 771,637 Amortization charged for the year 24,559 Exchange difference (49,018 ) As June 30, 2021 (Unaudited) 747,178 Net book value At June 30, 2021 (Unaudited) $ 189,438 |
Trade and Other payables and _2
Trade and Other payables and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Trade And Other Payables And Other Current Liabilities [Abstract] | |
Schedule of trade and other payables and other current liabilities | As at As at Trade accounts payable – third parties $ 2,396,957 $ 1,366,482 Accrued salaries and bonus 547,114 140,321 Accrued customer claims, cash loss and shortage, others** 105,935 33,608 Trade and other payables $ 3,050,006 $ 1,540,411 Output VAT $ 134,296 $ 114,877 Accrued Expenses 575,935 375,815 Payroll Payable 359,222 560,051 Other Payables 279,974 198,363 Other current liabilities $ 1,349,427 $ 1,249,106 |
Borrowings from Financial Ins_2
Borrowings from Financial Institutions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of detailed information about borrowings [text block] [Abstract] | |
Schedule of borrowings from financial institutions | As at As at Current portion of long-term borrowings $ 1,700,473 $ 494,994 Long-term borrowings 986,584 993,869 Borrowings from financial institutions $ 2,687,057 $ 1,488,863 |
Finance Lease Liabilities (Tabl
Finance Lease Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Finance Lease Liabilities [Abstract] | |
Schedule of finance lease liabilities | As at As at Current portion $ 790,704 $ 632,105 Non-current portion 825,841 1,023,366 Finance lease liabilities $ 1,616,545 $ 1,655,471 |
Schedule of minimum lease payments under finance lease agreements | As at As at Within 1 year $ 320,700 $ 701,796 After 1 year but within 5 years 1,440,400 1,074,047 Less: Finance charges (144,555 ) (120,372 ) Present value of finance lease liabilities, net $ 1,616,545 $ 1,655,471 |
Schedule of leased assets under a finance lease | As at As at Cost $ 3,370,741 $ 8,459,215 Less: Accumulated depreciation (1,029,460 ) (4,226,875 ) Net book value $ 2,341,282 $ 4,232,340 |
Provision for Employee Benefi_2
Provision for Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of employee benefits [text block] [Abstract] | |
Schedule of movement in the present value of the defined benefit obligation | Provision Defined benefit obligations at December 31, 2020 $ 6,841,673 Estimate for the six months period $ (294,175 ) Defined benefit obligations at June 30, 2021 (Unaudited) $ 6,547,498 |
Administrative Expenses (Tables
Administrative Expenses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of general and administrative expense [text block] [Abstract] | |
Schedule of administrative expenses | For the six months ended 2021 2020 Staff expense $ 1,248,056 $ 1,193,864 Rental expense 340,752 703,011 Depreciation and amortization expense 235,604 84,288 Utilities expense 81,255 85,467 Travelling and entertainment expense 77,747 45,436 Professional fees 331,522 488,504 Repairs and maintenance 26,226 40,774 Employee benefits 353,358 566,561 Other service fees 153,906 368,397 Other expenses** 423,182 518,230 $ 3,271,608 $ 4,094,532 ** Other expenses mainly comprised of stock-based compensation, office expenses, stamp duties, training costs, etc. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of related party [text block] [Abstract] | |
Schedule of amounts due from related parties | As at As at Quantum Infosec Inc (“Quantum”) (a, b) $ 357 $ - Guardforce TH Group Company Limited (b) 6,593 6,026 Guardforce AI Technology Limited (b) 236 - Guardforce AI Service Limited (b) 236 - Bangkok Bank Public Company Limited (c) - 443 Guardforce Limited (d) - 20,647 Shenzhen Intelligent Guardforce Robot Technology Co., Limited (e) - 346,152 $ 7,422 $ 373,268 |
Schedule of amounts due to related parties | As at As at Tu Jingyi (b) $ 88,047 $ 88,047 Profit Raider Investment Limited (b) 1,253,814 1,136,664 Shenzhen Intelligent Guardforce Robot Technology Co., Limited (d) 2,881,698 - Guardforce Holdings (HK) Limited (c) 156,782 156,782 Richard Hall (e) 15,976 - Shenzhen Junwei Investment Development Company Limited (“Junwei”) (a) - 225,085 Guardforce Aviation Security Company Limited (d) - 1,224 Guardforce Security (Thailand) Company Limited (d) - 62,667 $ 4,396,317 $ 1,670,469 |
Schedule of long-term borrowings from related parties | As at As at Guardforce Holdings (HK) Limited (a) $ 4,040,500 $ 4,140,500 Tu Jingyi (b) 1,437,303 1,437,303 Profit Raider Investment Limited (c) 12,649,903 13,508,009 $ 18,127,706 $ 19,085,812 |
Schedule of related party transactions | For the six months ended Nature 2021 2020 Service/ Products received from related parties: Shenzhen Intelligent Guardforce Robot Technology Co., Limited – Purchases (a) $ 4,652,125 $ 150,185 Service/ Products delivered to related parties: Guardforce Limited – Sales (b) $ 111,564 $ 128,410 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of commitments and contingent liabilities [text block] [Abstract] | |
Schedule of future payments for employment agreements | Amount Twelve months ending June 30: 2022 $ 1,048,214 2023 740,372 2024 110,000 Total minimum payment required $ 1,898,586 |
Schedule of capital expenditure commitments | Payments Due by Period Less than 1-3 4-5 More Contractual Obligations Nature Total 1 year years years 5 years Service fee commitments (a) $ 804,992 $ 368,175 $ 436,817 $ - $ - Operating lease commitments (b) 403,656 362,233 41,423 - - $ 1,208,648 $ 730,408 $ 478,240 $ - $ - |
Nature of Operations (Details)
Nature of Operations (Details) | 6 Months Ended |
Jun. 30, 2021 | |
AI Holding Limited [Member] | |
Nature of Operations (Details) [Line Items] | |
Proportion of ownership interest in subsidiary | 100.00% |
AI Robots Limited [Member] | |
Nature of Operations (Details) [Line Items] | |
Proportion of ownership interest in subsidiary | 100.00% |
AI Hong Kong Limited [Member] | |
Nature of Operations (Details) [Line Items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Southern Ambition Limited [Member] | |
Nature of Operations (Details) [Line Items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Horizon Dragon Limited [Member] | |
Nature of Operations (Details) [Line Items] | |
Proportion of ownership interest in subsidiary | 100.00% |
AI Thailand [Member] | |
Nature of Operations (Details) [Line Items] | |
Shareholders voting power, description | on September 21, 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. 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 December 31, 2018. The cumulative preferred shares are entitled to dividends of $0.03 per share when declared. The cumulative unpaid dividends of the preferred shares as of December 31, 2020 is approximately $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 (Details) [Line Items] | |
Shareholders voting power, description | 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 associates a shareholder may cast one vote per one share at a general meeting of shareholders. |
AI Thailand and Southern Ambition [Member] | |
Nature of Operations (Details) [Line Items] | |
Proportion of ownership interest in subsidiary | 97.00% |
Significant Accounting Polici_3
Significant Accounting Policies (Details) $ in Millions | Jun. 30, 2021USD ($) |
Disclosure of significant accounting policies [text block] [Abstract] | |
Cash and cash equivalents | $ 9 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of currency exchange rates impact | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Thai Baht [Member] | |||
Significant Accounting Policies (Details) - Schedule of currency exchange rates impact [Line Items] | |||
Period End Rate | 0.0312 | 0.0324 | |
Average Rate | 0.0325 | 0.0316 | |
Hong Kong Dollar [Member] | |||
Significant Accounting Policies (Details) - Schedule of currency exchange rates impact [Line Items] | |||
Period End Rate | 0.1282 | 0.1282 | |
Average Rate | 0.1282 | 0.1282 |
Significant Accounting Polici_5
Significant Accounting Policies (Details) - Schedule of disaggregation information of revenue by service type - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Significant Accounting Policies (Details) - Schedule of disaggregation information of revenue by service type [Line Items] | |||
Total | $ 18,405,025 | $ 18,728,786 | |
Percentage of Total Revenue | 100.00% | 100.00% | |
Cash-In-Transit – Non-Dedicated Vehicles (CIT Non-DV) [Member] | |||
Significant Accounting Policies (Details) - Schedule of disaggregation information of revenue by service type [Line Items] | |||
Total | $ 5,939,614 | $ 5,964,178 | |
Percentage of Total Revenue | 32.30% | 31.80% | |
Cash-In-Transit - Dedicated Vehicle to Banks (CIT DV) [Member] | |||
Significant Accounting Policies (Details) - Schedule of disaggregation information of revenue by service type [Line Items] | |||
Total | $ 2,380,880 | $ 2,438,017 | |
Percentage of Total Revenue | 12.90% | 13.00% | |
ATM Management [Member] | |||
Significant Accounting Policies (Details) - Schedule of disaggregation information of revenue by service type [Line Items] | |||
Total | $ 5,806,020 | $ 6,267,452 | |
Percentage of Total Revenue | 31.50% | 33.50% | |
Cash Processing (CPC) [Member] | |||
Significant Accounting Policies (Details) - Schedule of disaggregation information of revenue by service type [Line Items] | |||
Total | $ 1,401,421 | $ 1,443,220 | |
Percentage of Total Revenue | 7.60% | 7.70% | |
Cash Center Operations (CCT) [Member] | |||
Significant Accounting Policies (Details) - Schedule of disaggregation information of revenue by service type [Line Items] | |||
Total | $ 1,540,291 | $ 1,595,889 | |
Percentage of Total Revenue | 8.40% | 8.50% | |
Cheque Center Service (CDC) [Member] | |||
Significant Accounting Policies (Details) - Schedule of disaggregation information of revenue by service type [Line Items] | |||
Total | $ 31,081 | $ 30,285 | |
Percentage of Total Revenue | 0.20% | 0.20% | |
Others [Member] | |||
Significant Accounting Policies (Details) - Schedule of disaggregation information of revenue by service type [Line Items] | |||
Total | [1] | $ 251,890 | $ 223,342 |
Percentage of Total Revenue | [1] | 1.40% | 1.20% |
Cash Deposit Management Solutions (GDM) [Member] | |||
Significant Accounting Policies (Details) - Schedule of disaggregation information of revenue by service type [Line Items] | |||
Total | $ 849,956 | $ 637,877 | |
Percentage of Total Revenue | 4.60% | 3.40% | |
Robotics AI solutions [Member] | |||
Significant Accounting Policies (Details) - Schedule of disaggregation information of revenue by service type [Line Items] | |||
Total | $ 203,872 | $ 128,250 | |
Percentage of Total Revenue | 1.10% | 0.70% | |
[1] | Others include primarily revenue from express cash and coin processing services. |
Business Combination (Details)
Business Combination (Details) | Feb. 04, 2021USD ($)$ / shares |
Disclosure of contingent liabilities in business combination [text block] [Abstract] | |
Shares issued | $ | $ 43,700 |
Per share value | $ / shares | $ 7.5 |
Consideration percentage | 51.00% |
Business Combination (Details)
Business Combination (Details) - Schedule of represents the purchase price allocation at the dates of the acquisition | 1 Months Ended |
Mar. 25, 2021USD ($) | |
Schedule of represents the purchase price allocation at the dates of the acquisition [Abstract] | |
Cash and cash equivalents | $ 24,276 |
Other current assets | 32,250 |
Current liabilities | (58,297) |
Goodwill | 329,534 |
Total purchase price | $ 327,763 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - Schedule of cash and cash equivalents restricted cash - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of cash and cash equivalents restricted cash [Abstract] | ||
Cash on hand | $ 368,117 | $ 392,803 |
Cash in bank | 7,357,012 | 8,021,241 |
Subtotal | 7,725,129 | 8,414,044 |
Restricted cash | 1,667,081 | 1,715,866 |
Cash, cash equivalents, and restricted cash | $ 9,392,210 | $ 10,129,910 |
Inventory (Details) - Scheduleo
Inventory (Details) - Scheduleo of inventory - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Inventory (Details) - Scheduleo of inventory [Line Items] | ||
Inventory | $ 2,553,957 | $ 495,081 |
Robots at warehouse [Member] | ||
Inventory (Details) - Scheduleo of inventory [Line Items] | ||
Inventory | 2,553,957 | 252,411 |
Robots in transit [Member] | ||
Inventory (Details) - Scheduleo of inventory [Line Items] | ||
Inventory | $ 242,670 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of accounts receivables - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of accounts receivables [Abstract] | ||
Accounts receivable | $ 5,790,229 | $ 5,468,911 |
Allowance for doubtful accounts | ||
Accounts receivable, net | $ 5,790,229 | $ 5,468,911 |
Withholding Tax Receivables, _3
Withholding Tax Receivables, Net (Details) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Disclosure of acquired receivables [text block] [Abstract] | |
Withholding tax receivables, net, description | the Company received a withholding taxes refund in connection with the Company’s 2013 to 2015 withholding taxes refund applications. The Company wrote off the difference between the receivable recorded and amount of known refund from the Thai Revenue Department. The Company did not have any write offs during the six months ended June 30, 2021 and 2020. |
Allowance of withholding taxes receivable | $ 98,226 |
Withholding Tax Receivables, _4
Withholding Tax Receivables, Net (Details) - Schedule of current and non current portion of tax receivables - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of current and non current portion of tax receivables [Abstract] | ||
Current portion | $ 690,487 | |
Non-current portion | 3,359,752 | 3,534,552 |
Withholding tax receivables, net | $ 3,359,752 | $ 4,225,039 |
Other Current and Other Non-C_3
Other Current and Other Non-Current Assets (Details) - Schedule of other current and other non-current assets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of other current and other non-current assets [Abstract] | ||
Input VAT receivable | $ 325,208 | $ 134,746 |
Prepayments - office rental | 1,515,585 | 952,616 |
Prepayments - insurance | 503,978 | 292,095 |
Prepayments - others | 17,709 | 51,920 |
Uniforms | 15,450 | 17,954 |
Tools and supplies | 84,724 | 135,553 |
Other current assets | 2,462,654 | 1,584,884 |
Deposits | 330,416 | 361,275 |
Other non-current assets | $ 330,416 | $ 361,275 |
Fixed Assets, Net (Details) - S
Fixed Assets, Net (Details) - Schedule of fixed assets, net | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Cost | |
Net book value | $ 9,075,078 |
Cost [Member] | |
Cost | |
Beginning Balance | 35,968,583 |
Additions | 2,914,853 |
Disposals | (159,621) |
Exchange differences | (2,255,284) |
Ending Balance | 36,468,531 |
Accumulated Depreciation [Member] | |
Cost | |
Beginning Balance | 28,084,229 |
Depreciation charged for the year | 1,245,057 |
Disposals | (152,378) |
Exchange differences | (1,783,455) |
Ending Balance | 27,393,453 |
Leasehold improvements [Member] | |
Cost | |
Net book value | 605,578 |
Leasehold improvements [Member] | Cost [Member] | |
Cost | |
Beginning Balance | 3,649,107 |
Additions | 4,284 |
Disposals | |
Exchange differences | (231,811) |
Ending Balance | 3,421,580 |
Leasehold improvements [Member] | Accumulated Depreciation [Member] | |
Cost | |
Beginning Balance | 2,923,013 |
Depreciation charged for the year | 78,674 |
Disposals | |
Exchange differences | (185,685) |
Ending Balance | 2,816,002 |
Machinery and equipment [Member] | |
Cost | |
Net book value | 260,222 |
Machinery and equipment [Member] | Cost [Member] | |
Cost | |
Beginning Balance | 5,713,840 |
Additions | 47,695 |
Disposals | (33,571) |
Exchange differences | (362,976) |
Ending Balance | 5,364,988 |
Machinery and equipment [Member] | Accumulated Depreciation [Member] | |
Cost | |
Beginning Balance | 5,390,966 |
Depreciation charged for the year | 89,833 |
Disposals | (33,568) |
Exchange differences | (342,465) |
Ending Balance | 5,104,766 |
Office decoration and equipment [Member] | |
Cost | |
Net book value | 717,495 |
Office decoration and equipment [Member] | Cost [Member] | |
Cost | |
Beginning Balance | 5,951,808 |
Additions | 54,330 |
Disposals | (3,136) |
Exchange differences | (378,093) |
Ending Balance | 5,624,909 |
Office decoration and equipment [Member] | Accumulated Depreciation [Member] | |
Cost | |
Beginning Balance | 5,124,622 |
Depreciation charged for the year | 111,429 |
Disposals | (3,091) |
Exchange differences | (325,546) |
Ending Balance | 4,907,414 |
Vehicles [Member] | |
Cost | |
Net book value | 3,423,524 |
Vehicles [Member] | Cost [Member] | |
Cost | |
Beginning Balance | 17,885,762 |
Additions | 399,639 |
Disposals | (115,471) |
Exchange differences | (1,136,207) |
Ending Balance | 17,033,723 |
Vehicles [Member] | Accumulated Depreciation [Member] | |
Cost | |
Beginning Balance | 14,004,064 |
Depreciation charged for the year | 611,225 |
Disposals | (115,471) |
Exchange differences | (889,619) |
Ending Balance | 13,610,199 |
Assets under construction [Member] | |
Cost | |
Net book value | 23,027 |
Assets under construction [Member] | Cost [Member] | |
Cost | |
Beginning Balance | |
Additions | 23,027 |
Exchange differences | |
Ending Balance | 23,027 |
Assets under construction [Member] | Accumulated Depreciation [Member] | |
Cost | |
Beginning Balance | |
Depreciation charged for the year | |
Exchange differences | |
Ending Balance | |
GDM machines [Member] | |
Cost | |
Net book value | 1,011,462 |
GDM machines [Member] | Cost [Member] | |
Cost | |
Beginning Balance | 1,883,116 |
Additions | |
Disposals | |
Exchange differences | (119,627) |
Ending Balance | 1,763,489 |
GDM machines [Member] | Accumulated Depreciation [Member] | |
Cost | |
Beginning Balance | 616,280 |
Depreciation charged for the year | 174,897 |
Disposals | |
Exchange differences | (39,150) |
Ending Balance | 752,027 |
Robots [Member] | |
Cost | |
Net book value | 3,033,770 |
Robots [Member] | Cost [Member] | |
Cost | |
Beginning Balance | 884,950 |
Additions | 2,385,878 |
Disposals | (7,443) |
Exchange differences | (26,570) |
Ending Balance | 3,236,815 |
Robots [Member] | Accumulated Depreciation [Member] | |
Cost | |
Beginning Balance | 25,284 |
Depreciation charged for the year | 178,999 |
Disposals | (248) |
Exchange differences | (990) |
Ending Balance | $ 203,045 |
Right-of-Use Assets and Opera_3
Right-of-Use Assets and Operating Lease Liabilities (Details) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Disclosure of non-current assets held for sale and discontinued operations [text block] [Abstract] | |
Weighted average lease liabilities percentage | 3.25% |
Interest expense | $ 125,245 |
Depreciation expense related to right-of-use assets | $ 1,223,282 |
Right-of-Use Assets and Opera_4
Right-of-Use Assets and Operating Lease Liabilities (Details) - Schedule of carrying amounts of right-of-use assets - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Schedule of carrying amounts of right-of-use assets [Abstract] | ||
As at January 1 | $ 4,190,351 | $ 6,173,590 |
New leases | 120,399 | 532,978 |
Depreciation expense | (1,223,282) | (2,506,446) |
Exchange difference | (218,864) | (9,771) |
Net book amount | $ 2,868,604 | $ 4,190,351 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - Schedule of intangible assets, net - Computer software [member] | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Cost | |
Beginning | $ 995,045 |
Additions | 4,782 |
Exchange difference | (63,211) |
Ending | 936,616 |
Accumulated amortization | |
Beginning | 771,637 |
Amortization charged for the year | 24,559 |
Exchange difference | (49,018) |
Ending | 747,178 |
Net book value | |
Ending | $ 189,438 |
Trade and Other payables and _3
Trade and Other payables and Other Current Liabilities (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Trade And Other Payables And Other Current Liabilities [Abstract] | ||
Provision for penalty claims | $ 45,700 | $ 14,600 |
Trade and Other payables and _4
Trade and Other payables and Other Current Liabilities (Details) - Schedule of trade and other payables and other current liabilities - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | |
Schedule of trade and other payables and other current liabilities [Abstract] | |||
Trade accounts payable – third parties | $ 2,396,957 | $ 1,366,482 | |
Accrued salaries and bonus | 547,114 | 140,321 | |
Accrued customer claims, cash loss and shortage, others | [1] | 105,935 | 33,608 |
Trade and other payables | 3,050,006 | 1,540,411 | |
Output VAT | 134,296 | 114,877 | |
Accrued Expenses | 575,935 | 375,815 | |
Payroll Payable | 359,222 | 560,051 | |
Other Payables | 279,974 | 198,363 | |
Other current liabilities | $ 1,349,427 | $ 1,249,106 | |
[1] | Includes a provision for penalty for failure to meet certain performance indicators as stipulated in certain customer contracts for approximately $45,700 and $14,600 respectively. |
Borrowings from Financial Ins_3
Borrowings from Financial Institutions (Details) ฿ in Millions | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021THB (฿) | |
Disclosure of detailed information about borrowings [text block] [Abstract] | |||
Borrowings description | Those borrowings carry interest at the rate varies from 2% to MLR minus 1% per annum. Maturity date of borrowings is made and repayable on various dates from November 5, 2021 to April 7, 2025. | ||
Interest expense | $ 22,212 | $ 47,918 | |
Unused bank overdraft | 312,000 | ฿ 10 | |
Unused trust receipts | $ 1,560,000 | ฿ 50 |
Borrowings from Financial Ins_4
Borrowings from Financial Institutions (Details) - Schedule of borrowings from financial institutions - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of borrowings from financial institutions [Abstract] | ||
Current portion of long-term borrowings | $ 1,700,473 | $ 494,994 |
Long-term borrowings | 986,584 | 993,869 |
Borrowings from financial institutions | $ 2,687,057 | $ 1,488,863 |
Finance Lease Liabilities (Deta
Finance Lease Liabilities (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Finance Lease Liabilities [Abstract] | ||
Interest expense | $ 46,102 | $ 52,499 |
Finance Lease Liabilities (De_2
Finance Lease Liabilities (Details) - Schedule of finance lease liabilities - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of finance lease liabilities [Abstract] | ||
Current portion | $ 790,704 | $ 632,105 |
Non-current portion | 825,841 | 1,023,366 |
Finance lease liabilities | $ 1,616,545 | $ 1,655,471 |
Finance Lease Liabilities (De_3
Finance Lease Liabilities (Details) - Schedule of minimum lease payments under finance lease agreements - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of minimum lease payments under finance lease agreements [Abstract] | ||
Within 1 year | $ 320,700 | $ 701,796 |
After 1 year but within 5 years | 1,440,400 | 1,074,047 |
Less: Finance charges | (144,555) | (120,372) |
Present value of finance lease liabilities, net | $ 1,616,545 | $ 1,655,471 |
Finance Lease Liabilities (De_4
Finance Lease Liabilities (Details) - Schedule of leased assets under a finance lease - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of leased assets under a finance lease [Abstract] | ||
Cost | $ 3,370,741 | $ 8,459,215 |
Less: Accumulated depreciation | (1,029,460) | (4,226,875) |
Net book value | $ 2,341,282 | $ 4,232,340 |
Taxation (Details)
Taxation (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of income tax [text block] [Abstract] | |
VAT service percentage | 7.00% |
Provision for Employee Benefi_3
Provision for Employee Benefits (Details) - Schedule of movement in the present value of the defined benefit obligation | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Schedule of movement in the present value of the defined benefit obligation [Abstract] | |
Defined benefit obligations, beginning | $ 6,841,673 |
Estimate for the six months period | (294,175) |
Defined benefit obligations, ending | $ 6,547,498 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | Aug. 20, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Shareholders' Equity (Details) [Line Items] | ||||
Ordinary shares, authorized | 100,000,000 | 100,000,000 | ||
Ordinary shares, issued | 17,587,388 | 17,356,090 | ||
Ordinary shares, par value (in Dollars per share) | $ 0.003 | $ 0.003 | ||
Share capital (in Dollars) | $ 52,763 | $ 52,069 | ||
Subscription receivable (in Dollars) | $ (50,000) | |||
Bottom of range [member] | ||||
Shareholders' Equity (Details) [Line Items] | ||||
Ordinary shares par value (in Dollars per share) | $ 0.001 | |||
Ordinary shares, authorized | 100,000,000 | |||
Ordinary shares, issued | 43,700 | |||
Top of range [member] | ||||
Shareholders' Equity (Details) [Line Items] | ||||
Ordinary shares par value (in Dollars per share) | $ 0.003 | |||
Ordinary shares, authorized | 300,000,000 | |||
Ordinary shares, issued | 187,598 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 1 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 16, 2019 | |
Stock Based Compensation [Abstract] | |||
Issue an aggregate shares of capital stock | 877,025 | ||
Issuance of plan shares | 689,427 | ||
Issued remaining plan share | 187,598 | ||
Outstanding ordinary shares | 1,300 | ||
Fair value of shares issued in merger transaction | 877,025 | ||
Stock based compensation expense (in Dollars) | $ 18,826 |
Administrative Expenses (Detail
Administrative Expenses (Details) - Schedule of administrative expenses - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Schedule of administrative expenses [Abstract] | |||
Staff expense | $ 1,248,056 | $ 1,193,864 | |
Rental expense | 340,752 | 703,011 | |
Depreciation and amortization expense | 235,604 | 84,288 | |
Utilities expense | 81,255 | 85,467 | |
Travelling and entertainment expense | 77,747 | 45,436 | |
Professional fees | 331,522 | 488,504 | |
Repairs and maintenance | 26,226 | 40,774 | |
Employee benefits | 353,358 | 566,561 | |
Other service fees | 153,906 | 368,397 | |
Other expenses | [1] | 423,182 | 518,230 |
Administrative expenses | $ 3,271,608 | $ 4,094,532 | |
[1] | Other expenses mainly comprised of stock-based compensation, office expenses, stamp duties, training costs, etc. |
Legal Reserve (Details)
Legal Reserve (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Disclosure of reserves within equity [text block] [Abstract] | ||
Percentage of legal reserve | 5.00% | |
Dividend distribution percentage | 10.00% | |
Legal reserve | $ 223,500 | $ 223,500 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |
Sep. 01, 2018 | Jun. 30, 2021 | Mar. 31, 2021 | |
Related Party Transactions (Details) [Line Items] | |||
Interest rate | 2.00% | ||
Quantum [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Owns, percentage | 49.00% | ||
Handshake and Richard [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Owns, percentage | 49.00% | ||
Shenzhen Intelligent Guardforce Robot Technology Co., Limited [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Advance to suppliers | $ 187,665 | ||
Commission receivable | 158,487 | ||
Guardforce Holdings (HK) Limited [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Advances made | 99,998 | ||
Accrued interests | $ 56,784 | ||
Agreement description | (a)From time to time, the Company borrowed from Guardforce Holdings (HK) Limited whereby as of June 30, 2021, total loan amount from Guardforce Holdings (HK) Limited was $4,648,498. | ||
Mr. Tu Jing Yi [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Agreement description | the Company entered into an agreement with Mr. Tu Jingyi whereby he lent $1,437,303 (RMB10 million) to the Company. The loan is due on August 31, 2022 with an interest rate at 1.5%. | ||
Profit Raider Investment Limited [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Agreement description | (c)The loan with Profit Raider Investment Limited is due on December 31, 2022. As of June 30, 2021, the outstanding principal amount due was $12,649,903 and the amount of interest accrued on the loan, calculated up to June 31, 2021 was $1,253,814. |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of amounts due from related parties - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions (Details) - Schedule of amounts due from related parties [Line Items] | |||
Due from related parties | $ 7,422 | $ 373,268 | |
Quantum Infosec Inc [Member] | |||
Related Party Transactions (Details) - Schedule of amounts due from related parties [Line Items] | |||
Due from related parties | [1],[2] | 357 | |
Guardforce TH Group Company Limited [Member] | |||
Related Party Transactions (Details) - Schedule of amounts due from related parties [Line Items] | |||
Due from related parties | [1] | 6,593 | 6,026 |
Guardforce AI Technology Limited [Member] | |||
Related Party Transactions (Details) - Schedule of amounts due from related parties [Line Items] | |||
Due from related parties | [1] | 236 | |
Guardforce AI Service Limited [Member] | |||
Related Party Transactions (Details) - Schedule of amounts due from related parties [Line Items] | |||
Due from related parties | [1] | 236 | |
Bangkok Bank Public Company Limited [Member] | |||
Related Party Transactions (Details) - Schedule of amounts due from related parties [Line Items] | |||
Due from related parties | [3] | 443 | |
Guardforce Limited [Member] | |||
Related Party Transactions (Details) - Schedule of amounts due from related parties [Line Items] | |||
Due from related parties | [4] | 20,647 | |
Shenzhen Intelligent Guardforce Robot Technology Co., Limited [Member] | |||
Related Party Transactions (Details) - Schedule of amounts due from related parties [Line Items] | |||
Due from related parties | [5] | $ 346,152 | |
[1] | Amounts due from Quantum Infosec Inc, Guardforce TH Group Company Limited, Guardforce AI Technology Limited, Guardforce AI Service Limited were business advances for operational purposes. | ||
[2] | Quantum Infosec Inc is related with the Company since March 2021 when the Company acquired Handshake. Quantum owns 49% of Handshake and the shareholders of Quantum are the directors of Handshake. | ||
[3] | Amounts due from Bangkok Bank Public Company Limited represents trade receivables for service provided by the Company. | ||
[4] | Amounts due from Guardforce Limited represents primarily trade receivables for the sale of robots. The balance was fully settled in January 2021. | ||
[5] | Amounts due from Shenzhen Intelligent Guardforce Robot Technology Co., Limited comprised of $187,665 advance to suppliers for the purchase of robots and $158,487 commission receivable. |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of amounts due to related parties - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions (Details) - Schedule of amounts due to related parties [Line Items] | |||
Due from related parties | $ 4,396,317 | $ 1,670,469 | |
Tu Jingyi [Member] | |||
Related Party Transactions (Details) - Schedule of amounts due to related parties [Line Items] | |||
Due from related parties | [1] | 88,047 | 88,047 |
Profit Raider Investment Limited [Member] | |||
Related Party Transactions (Details) - Schedule of amounts due to related parties [Line Items] | |||
Due from related parties | [1] | 1,253,814 | 1,136,664 |
Shenzhen Intelligent Guardforce Robot Technology Co., Limited [Member] | |||
Related Party Transactions (Details) - Schedule of amounts due to related parties [Line Items] | |||
Due from related parties | [2] | 2,881,698 | |
Guardforce Holdings (HK) Limited [Member] | |||
Related Party Transactions (Details) - Schedule of amounts due to related parties [Line Items] | |||
Due from related parties | [3] | 156,782 | 156,782 |
Richard Hall [Member] | |||
Related Party Transactions (Details) - Schedule of amounts due to related parties [Line Items] | |||
Due from related parties | [4] | 15,976 | |
Shenzhen Junwei Investment Development Company Limited [Member] | |||
Related Party Transactions (Details) - Schedule of amounts due to related parties [Line Items] | |||
Due from related parties | [5] | 225,085 | |
Guardforce Aviation Security Company Limited [Member] | |||
Related Party Transactions (Details) - Schedule of amounts due to related parties [Line Items] | |||
Due from related parties | [2] | 1,224 | |
Guardforce Security (Thailand) Company Limited [Member] | |||
Related Party Transactions (Details) - Schedule of amounts due to related parties [Line Items] | |||
Due from related parties | [2] | $ 62,667 | |
[1] | Amounts due to Tu Jingyi and Profit Raider Investment Limited represented interest accrued on the respective loans. | ||
[2] | Amounts due to Shenzhen Intelligent Guardforce Robot Technology Co., Limited , Guardforce Aviation Security Company Limited and Guardforce Security (Thailand) Company Limited represent accounts payable for the products or services provided by related parties. | ||
[3] | Amounts due to Guardforce Holdings (HK) Limited comprised of $99,998 advances made and $56,784 accrued interests on the loans. | ||
[4] | Richard Hall is related to the Company since March 2021 when the Company acquired Handshake. Richard is one of the shareholders of Quantum which owns 49% of Handshake and Richard is the director of Handshake. Amount due to Richard represent advances made to Handshake. | ||
[5] | Amounts due to Shenzhen Junwei Investment Development Company Limited represent non-interest bearing advances from related parties. In January 2021, the amount due to Junwei was forgiven. |
Related Party Transactions (D_4
Related Party Transactions (Details) - Schedule of long-term borrowings from related parties - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions (Details) - Schedule of long-term borrowings from related parties [Line Items] | |||
Long-term borrowings from related party | $ 18,127,706 | $ 19,085,812 | |
Guardforce Holdings (HK) Limited [Member] | |||
Related Party Transactions (Details) - Schedule of long-term borrowings from related parties [Line Items] | |||
Long-term borrowings from related party | [1] | 4,040,500 | 4,140,500 |
Tu Jingyi [Member] | |||
Related Party Transactions (Details) - Schedule of long-term borrowings from related parties [Line Items] | |||
Long-term borrowings from related party | [2] | 1,437,303 | 1,437,303 |
Profit Raider Investment Limited [Member] | |||
Related Party Transactions (Details) - Schedule of long-term borrowings from related parties [Line Items] | |||
Long-term borrowings from related party | [3] | $ 12,649,903 | $ 13,508,009 |
[1] | From time to time, the Company borrowed from Guardforce Holdings (HK) Limited whereby as of June 30, 2021, total loan amount from Guardforce Holdings (HK) Limited was $4,648,498. These loans bear interest rate of 2% and are due on various dates from December 22, 2022 to September 8, 2023. | ||
[2] | On September 1, 2018, the Company entered into an agreement with Mr. Tu Jingyi whereby he lent $1,437,303 (RMB10 million) to the Company. The loan is due on August 31, 2022 with an interest rate at 1.5%. | ||
[3] | The loan with Profit Raider Investment Limited is due on December 31, 2022. As of June 30, 2021, the outstanding principal amount due was $12,649,903 and the amount of interest accrued on the loan, calculated up to June 31, 2021 was $1,253,814. |
Related Party Transactions (D_5
Related Party Transactions (Details) - Schedule of related party transactions - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Shenzhen Intelligent Guardforce Robot Technology Co., Limited – Purchases [Member] | ||
Service/ Products received from related parties: | ||
Service/ Products received from related parties | $ 4,652,125 | $ 150,185 |
Guardforce Limited – Sales [Member] | ||
Service/ Products delivered to related parties: | ||
Service/ Products delivered to related parties | $ 111,564 | $ 128,410 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Disclosure of commitments and contingent liabilities [text block] [Abstract] | |
Employment agreements, description | The Company has several employment agreements with executives and directors with the latest expiring in 2024. All agreements provide for automatic renewal options with varying terms of one year or three years unless terminated by either party. |
Government agencies | $ 7,000,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of future payments for employment agreements | Jun. 30, 2021USD ($) |
Schedule of future payments for employment agreements [Abstract] | |
2022 | $ 1,048,214 |
2023 | 740,372 |
2024 | 110,000 |
Total minimum payment required | $ 1,898,586 |
Commitments and Contingencies_4
Commitments and Contingencies (Details) - Schedule of capital expenditure commitments | Jun. 30, 2021USD ($) | |
Commitments and Contingencies (Details) - Schedule of capital expenditure commitments [Line Items] | ||
Service fee commitments | $ 804,992 | [1] |
Operating lease commitments | 403,656 | [2] |
Total | 1,208,648 | |
Less than 1 year [Member] | ||
Commitments and Contingencies (Details) - Schedule of capital expenditure commitments [Line Items] | ||
Service fee commitments | 368,175 | [1] |
Operating lease commitments | 362,233 | [2] |
Total | 730,408 | |
1-3 years [Member] | ||
Commitments and Contingencies (Details) - Schedule of capital expenditure commitments [Line Items] | ||
Service fee commitments | 436,817 | [1] |
Operating lease commitments | 41,423 | [2] |
Total | 478,240 | |
4-5 years [Member] | ||
Commitments and Contingencies (Details) - Schedule of capital expenditure commitments [Line Items] | ||
Service fee commitments | [1] | |
Operating lease commitments | [2] | |
Total | ||
More than 5 years [Member] | ||
Commitments and Contingencies (Details) - Schedule of capital expenditure commitments [Line Items] | ||
Service fee commitments | [1] | |
Operating lease commitments | [2] | |
Total | ||
[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] | The Company has leased offices and various low value items with various lease terms. |