FatBrain AI ($LZGI) Completes Fiscal Year with Revenue of Approximately $44 Million, up over 20,000% From Last Year

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Jul 20, 2023, 08:30 ET

NEW YORK, July 20, 2023 /PRNewswire/ -- FatBrain AI (LZG International, Inc., OTCQB: LZGI) (the "Company," or "we"), the leader in powerful and easy-to-use AI solutions for the enterprise stars of tomorrow, today announced its preliminary results for the fourth quarter and full fiscal year ending May 31, 2023.

Q4 Financial Highlights and Operational Highlights:

Revenue for the three months ended May 31, 2023 is estimated to be $24.5 million. This is an increase of 155% compared to the $9,563,004 in Q3 (Dec'22 – Feb'23), and up when compared to the $129,272 the same quarter last year.
Gross margins for the business are normally in the 80% range. During this reporting period, we completed a $21.5M contract to standardize data alignment at 3.5% margin with a ministry of digital transformation supported by proprietary licenses. This contract is expected to lower our data engineering costs several years forward and to also extend the reach of the FatBrain Knowledge Cloud. As a result of this contract, full-year margins are expected to be in the low 40% range.

Full Year Financial and Operational Highlights:

Revenue for the full year ended May 31, 2023 is anticipated to be approximately $44 million compared to $216,166 during the prior year. Company increased revenues significantly during each quarter of the fiscal year.
Gross margins for the business are normally in the 80% range, subject the above note.
We are focused on integrating all acquisitions into a scalable platform for organic growth.
We have identified large number of potential customers and accretive acquisitions. The Company began signing customers on a rapid rate.
We have created new plans to commercialize the regional cloud and small and medium-sized enterprises (SMEs) marketplace in specific geos.
We have created and released product for SMEs to protect, predict and increase cash flows allowing them to use peer intelligence, and market data to bridge the technical divide. Improving business decisions and strategies informed by data analytics is essential to driving revenue and succeeding.
We have continued innovating through the soon-to-be-launched FatGPT™ offerings for SMEs which will allow business owners to, in seconds, gain key insights across all their SaaS data. This will allow more efficient and timely business decisions using small, private data. The offering is built upon the demand highlighted by Open AI's ChatGPT.

"Our revenue ramp and order flow make us optimistic about the future," said Peter B. Ritz, co-founder and CEO of FatBrain AI. "The platform we continue to build positions FatBrain AI as the preferred solution for the enterprise stars of tomorrow. We are focused on accelerating growth supported by the industry tailwinds and our suite of products. We remain on track to continue the momentum."

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, 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
[email protected]

SOURCE LZG International, Inc.