LZG International Inc, dba FatBrain AI ($LZGI), Announces Fiscal Full-Year 2023 Operational Highlights and Results with Record Revenues

Rhea-AI Summary

FatBrain AI announces fiscal 2023 full-year unaudited results with revenue of $44.2 MM, gross profits of $10.7 MM, and operating expenses of $15.9 MM. Net loss was $15.9 MM. The company is confident in the financials and continues to experience robust revenue growth.

Positive

• Revenue increased to $44.2 MM for FY2023, driven by organic growth, customer growth, and acquisitions. Gross profits increased to $10.7 MM, with a return to gross margins of 80% anticipated for FY2024. The company is confident in the financials and continues to experience robust revenue growth.

Negative

• Net loss was $15.9 MM, primarily due to non-cash events. Total non-operating expenses were $10.7 MM in 2023. The company is working diligently to file with the SEC.

NEW YORK, Oct. 5, 2023 /PRNewswire/ -- FatBrain AI (LZG International, Inc., OTCQB: LZGI) (the "Company," or "we"), the leader in powerful and easy-to-use AI solutions for enterprise stars of tomorrow, today announced fiscal 2023 full-year unaudited results. 

Full Year Financial Highlights (Year ended 5/31/23):

• Revenue increased to $44.2 MM for the Full-Year FY2023 up from $0.2 Million in comparable period of 2022. This was driven by organic growth of existing operations, growth in number of customers, and acquisitions made during the year.
• Gross Profits increased to $10.7 Million in FY2023 up from $173,651 during FY2022. During the year the company completed some lower margin data alignment that will reduce future expenses substantially. A return to gross margins for the business in the 80% range for FY2024 is anticipated.
• Operating expenses increased to $15.9 Million compared to $1.1 Million for FY2022. This was the result of the expansion of staff for sales, marketing, programming and support as well as research and development. Expenses as a percentage of revenues decreased dramatically during FY 2023, suggesting profitability during FY 2024.
• Net loss was $15.9 million compared to $0.9 in 2022. The net loss primarily due non-cash events such as amortization and depreciation, impairment charges and stock based compensation. Total non-operating expenses, most non-recurring, totaled $10.7 million in 2023 versus $18,795 in FY2022.

The company is working diligently to file with the SEC as soon as possible. Due to the complexity involved with the rapid growth and multiple world regions for both customers and operations, this process has taken longer than anticipated. Streamlined processes have been put into place to ensure that future filings will be timely.  The company is confident in the financials as reported. Current business and customer acquisition is ongoing and year-over-year revenue growth acceleration continues to be robust.

FY 2023 Operational Highlights and Recent Developments:

• • The company increased revenue significantly during each quarter of the year, averaging over 130% quarter over quarter growth.
  • Integrated acquisition into a scalable platform
  • Identified large pipeline of customers and accretive acquisitions. The company is in the process of signing and onboarding customers at a rapid rate.
  • Signed multiple strategic distribution agreements that sizeable increased customer base
  • Created and released new products for small and medium enterprises (SME) to protect, predict and increase cash flows allowing them to utilize peer intelligence and market date to bridge the technical divide. Provides Real-Time strategic cash management tools. Our products improve business decisions and strategies by using data analytics is essential to driving revenues.
  • Launched powerful AI solution for tens of thousands of independent insurance agents and agencies with strong strategic partners
  • Improved intellectual property portfolio with filing for several patents covering its AI suite of products. The patents filed cover technologies for Peer Intelligence, Hierarchical AI and Private Data Models.
  • Appointed Michael Moe as Executive Chair of the Board of Directors. The added role enables Mr. Moe to aid and accelerate the company's growth trajectory across the global business.

"As we installed for hundreds of customers, our revenues increased dramatically, a trend we see continuing for fiscal year 2024. We have a strong pipeline of business that we are actively implementing as fast as possible. We are pleased that we are now in the next phase of FatBrain AI business evolution. Our assets currently include over 600 employees, strong intellectual property, a subscription software AI enablement platform, and a delivery operation spanning three continents," said Peter B. Ritz, co-founder and CEO of FatBrain AI.

Ritz continued, "Our products plug into 214 existing software-as-a-service (SaaS) products, such as QuickBooks, Shopify, Hubspot, SalesForce and Slack and aligns data there with millions of diverse market data signals. FatBrain has worked with some of the biggest names in the business to help solve problems, including Bank of America Corp., Comcast Corp., IBM, Samsung Electronics Co. Ltd. and Pilgrim's Pride processing billions of transactions. Now, we are leveling the playing field by bringing AI to the driving engine of the U.S. economy, SMEs."

About FatBrain AI (LZG International, Inc., OTCQB:LZGI)
FatBrain AI provides powerful and easy-to-use AI solutions to empower the enterprise stars of tomorrow to grow, innovate, and drive the majority of the global economy. FatBrain's AI 2.0 technologies and advanced data services transform continuous learning, narrative reasoning, large language models, and cloud and blockchain technologies into auditable, explainable and easy to integrate AI solutions. FatBrain's subscriptions allow all companies to deploy its advanced AI solutions quickly, easily, and securely behind their firewalls or via cloud. FatBrain's global delivery includes 600+ team across design, development centers in the US, UK, India, and Kazakh Republic. 

For more information, please visit: https://www.fatbrain.ai 

Forward Looking Statement
This release does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. This release contains certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements in this release are based on information available to us as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business, which include the risk factors disclosed in our Form 10-K filed with the Securities and Exchange Commission on September 13, 2022. Forward-looking statements include statements regarding our expectations, beliefs, intentions, or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," and "would" or similar words. All forecasts provided by management in this release are based on information available at this time and management expects that internal projections and expectations may change over time. In addition, the forecasts are based entirely on management's best estimate of our future financial performance given our current contracts, current backlog of opportunities and conversations with new and existing customers about our products and services. We assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise. 

Contact
Brokers and Analysts: 
Chesapeake Group 
410-825-3930 
info@chesapeakegp.com 

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SOURCE LZG International, Inc.

FAQ

What were the financial highlights for fiscal 2023?

Revenue increased to $44.2 MM, gross profits were $10.7 MM, and operating expenses were $15.9 MM.

What caused the increase in revenue?

The increase in revenue was driven by organic growth, customer growth, and acquisitions.

What is the anticipated gross margin for FY2024?

The company anticipates a return to gross margins in the 80% range for FY2024.

What was the net loss for 2023?

The net loss was $15.9 MM, primarily due to non-cash events.

What were the total non-operating expenses in 2023?

Total non-operating expenses were $10.7 MM in 2023.

What is the company doing to file with the SEC?

The company is working diligently to file with the SEC and has implemented streamlined processes to ensure timely filings.