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

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Oct 05, 2023, 13:30 ET

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, unaudited):

Revenue increased to $45.4 million 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 $20.9 million in FY2023 up from $173,651 during FY2022. During the year the company completed a lower margin data alignment and engineering deal that projects to substantially reduce future expenses. A return to gross margins in the 80% range for FY2024 is anticipated.
Operating expenses, including $13.1 million in Research and Development, increased to $24.4 million compared to $1.1 million for FY2022. This was the result of the expansion of staff for sales, marketing, engineering and support. Expenses as a percentage of revenues decreased nine-fold during FY 2023, suggesting profitability in FY 2024.
Net loss was $13.7 million compared to $0.9 in 2022. The net loss comprised non-cash events such as amortization and depreciation, impairment charges and stock-based compensation. Total non-operating expenses, most non-recurring, totaled $10.1 million in 2023 versus $18,795 in FY2022.

The company is working diligently to file with the SEC as soon as practicable. Due to the complexities involved with the rapid growth and multiple world regions for both customers and operations, this process has taken longer than anticipated. Automated systems are being 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 data to bridge the technical divide, including Real-Time strategic cash management tools 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 continue to deliver for our 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 engineers, 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. "Our solutions plug into 214 existing software-as-a-service (SaaS) products, such as QuickBooks, Shopify, Hubspot, Salesforce and Slack, while aligning private customer data with millions of diverse market data signals. FatBrain has helped solve enterprise problems across billions of transactions for some of the biggest names in the business, including Bank of America, Comcast, IBM, Samsung, and Pilgrim's Pride. Now, we are leveling the playing field by bringing AI solutions to the driving engine of the global economy, SMEs, the enterprise stars of tomorrow."

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
[email protected]

SOURCE LZG International, Inc.