Financial Performance - Total revenues decreased by approximately $4.1 million, or 42.9%, to approximately $5.5 million for the year ended December 31, 2022, from approximately $9.6 million for the year ended December 31, 2021[303] - Net loss increased to approximately $16.2 million for the year ended December 31, 2022, compared to a net loss of approximately $14.2 million for the year ended December 31, 2021[304] - The company recorded a net loss of approximately $16.2 million for the year ended December 31, 2022, an increase of approximately $2.0 million, or 13.8%, compared to a net loss of approximately $14.2 million for the year ended December 31, 2021[313] - Total revenues for the year ended December 31, 2021 decreased by approximately $4.9 million, or 33.7%, to approximately $9.6 million from approximately $14.5 million for the year ended December 31, 2020[314] - The company's gross profit decreased by approximately $7.5 million, or 76.9%, to approximately $2.3 million for the year ended December 31, 2021 from approximately $9.8 million for the year ended December 31, 2020[318] Revenue Breakdown - Standard cloud-based services revenue increased by approximately $0.1 million, or 6.0%, to approximately $2.1 million for the year ended December 31, 2022, representing approximately 38.1% of total revenues[305] - BPO service fees decreased by approximately $0.3 million, or 11.5%, to approximately $2.0 million for the year ended December 31, 2022, representing approximately 36.4% of total revenues[305] - Customized cloud-based services revenue decreased by approximately $5.0 million, or 100.0%, to approximately $0 for the year ended December 31, 2021 compared to approximately $5.0 million for the same period in 2020[316] - BPO service fees increased by approximately $0.5 million, or 29.5%, to approximately $2.3 million for the year ended December 31, 2021 compared to approximately $1.7 million for the same period in 2020[316] Expenses - Total cost of revenues decreased by approximately $3.8 million, or 52.2%, to approximately $3.5 million for the year ended December 31, 2022[306] - Gross profit decreased by approximately $0.3 million, or 12.7%, to approximately $2.0 million for the year ended December 31, 2022, with an overall gross margin of approximately 35.9%[309] - Selling expenses decreased by approximately $0.5 million, or 12.0%, to approximately $3.4 million for the year ended December 31, 2022[309] - General and administrative expenses increased by approximately $1.1 million, or 18.3%, to approximately $7.0 million for the year ended December 31, 2022[309] - Research and development expenses remained relatively flat at approximately $3.3 million for the years ended December 31, 2022 and 2021[311] Cash Flow and Financing - Net cash used by operating activities was approximately $5.2 million for the year ended December 31, 2022, primarily due to a net loss of approximately $16.2 million[334] - Net cash used in investing activities was approximately $5.2 million for the year ended December 31, 2022, mainly due to approximately $4.8 million cash deposited in an escrow account[334] - Net cash provided by financing activities was approximately $5.5 million for the year ended December 31, 2022, primarily from the issuance of convertible notes and PIPEs[334] - The company had total bank loans outstanding of approximately $3.6 million as of December 31, 2022, down from approximately $4.6 million as of December 31, 2021[329] - The company expects to require a minimum of approximately $4.4 million over the next twelve months to operate at its current level, either from revenues or funding[326] Assets and Liabilities - As of December 31, 2022, the company had cash of $1.0 million and $6.7 million in short-term investments, with working capital of approximately $3.3 million, excluding deferred revenue[326] - Total lease liabilities as of December 31, 2022, were approximately $48.5 million, with total undiscounted lease payments of approximately $49.7 million[335] - The company completed a 51% acquisition of Shanghai Qishuo for approximately $1.3 million (RMB 8.6 million), with a residual purchase price of approximately $2.9 million recorded as goodwill[339] Research and Development - Research and development expenses for the years ended December 31, 2022, 2021, and 2020 amounted to $1.9 million each year, with a focus on projects expected to generate short-term cash inflow[363] - The company has a research and development team of 13 personnel, accounting for approximately 11.5% of total employees[363] - The company has invested significantly in developing a self-developed cloud-based no-code development platform to enhance product development efficiency[364] - The company has adjusted its research and development strategies in response to the negative impact of the COVID-19 pandemic on business performance[363] Corporate Governance - The board of directors currently consists of five directors, with Qian Qu and Shaoyang E identified as independent directors under Nasdaq rules[376] - The company has established an audit committee to review and approve all related party transactions[388] - The audit committee is responsible for overseeing the accounting and financial reporting processes, and Qian Qu is identified as an "audit committee financial expert"[380] - The company has entered into employment agreements with each executive officer, which are automatically extended for twelve-month periods[372] Related Party Transactions - Related party transactions include a real estate collateral of approximately $3.2 million (RMB 22,000,000) provided by Qing Tang to secure a line of credit of approximately $2.9 million (RMB 20,000,000)[386] - As of December 31, 2022, amounts due from related parties total $53,671[388] - The company has not set aside or accrued any amount for pension, retirement, or similar benefits for its directors and executive officers[372]

Revenue Performance - Total revenues decreased by approximately $1.9 million, or 42.5%, to approximately $2.6 million for the six months ended June 30, 2022, compared to approximately $4.5 million for the same period in 2021[4] - Revenue from standard cloud-based services increased by approximately $0.4 million, or 47.5%, to approximately $1.2 million for the six months ended June 30, 2022, representing approximately 48.2% of total revenues[12] - Business integration solution services revenue decreased by approximately $1.8 million, or 86.3%, to approximately $0.3 million for the six months ended June 30, 2022[14] - Revenues for the six months ended June 30, 2022, were $2,579,749, a decrease of 42.5% compared to $4,486,035 for the same period in 2021[46] - Revenues for the six months ended June 30, 2022, were $2,579,749, compared to $1,660,645 for the same period in 2021, representing a year-over-year increase of approximately 55.2%[56] - For the six months ended June 30, 2022, operating revenues were $2,579,750, a decrease of 43% compared to $4,521,597 for the same period in 2021[180] Profitability and Loss - Gross profit increased by approximately $0.2 million to approximately $0.9 million for the six months ended June 30, 2022, with a gross margin of 35.6%[19] - Gross margin increased to 35.6% for the six months ended June 30, 2022, up from 16.5% for the same period in 2021, primarily due to a 76.0% increase from business integration solutions[21] - Net loss increased by approximately $1.5 million, or 23.8%, to approximately $7.8 million for the six months ended June 30, 2022[27] - Basic and diluted loss per share was $1.52 for the six months ended June 30, 2022, compared to earnings per share of $0.28 in the same period of 2021[29] - The net loss attributable to Infobird Co., Ltd for the six months ended June 30, 2022, was $7,750,721, compared to a net loss of $5,924,945 in the same period of 2021, marking an increase in loss of about 30.9%[56] - The net loss for the six months ended June 30, 2022, was $6,440,381, compared to a net loss of $6,201,971 in 2021, reflecting ongoing operational challenges[180] Expenses - Loss from operations was approximately $7.2 million for the six months ended June 30, 2022, compared to income from operations of approximately $6.4 million for the same period in 2021[4] - Research and development expenses increased by 41.2% in the six months ended June 30, 2022, mainly due to increased salary expenses[6] - Selling expenses rose by 118.2% in the six months ended June 30, 2022, compared to the same period last year[6] - Operating expenses totaled approximately $8.2 million for the six months ended June 30, 2022, compared to $7.2 million for the same period in 2021, with selling expenses rising by 118.2% to approximately $2.4 million[22] - General and administrative expenses increased by 73.7% to approximately $3.3 million, mainly due to a $1.1 million increase in bad debt expense[23] - Total operating expenses increased to $8,150,175 for the six months ended June 30, 2022, from $7,158,349 in 2021, reflecting a rise of approximately 13.9%[56] Cash Flow and Assets - Cash and cash equivalents, along with short-term investments, totaled approximately $8.1 million as of June 30, 2022, down from $13.4 million as of December 31, 2021[29] - Net cash used in operating activities was approximately $4.0 million for the six months ended June 30, 2022, primarily due to a net loss of approximately $7.8 million[38] - As of June 30, 2022, the company had approximately $1.4 million in cash and $6.7 million in short-term investments, with a working capital of approximately $1.7 million[32] - Total assets decreased to $18,681,449 as of June 30, 2022, down from $28,478,404 as of December 31, 2021, indicating a reduction of 34.6%[47] - Current assets were $12,250,530 as of June 30, 2022, a significant decline from $20,367,735 at the end of 2021, reflecting a decrease of 39.8%[47] - Total liabilities decreased to $10,714,220 as of June 30, 2022, down from $12,577,534 at the end of 2021, a reduction of 14.8%[47] Shareholder Information - The weighted average number of ordinary shares was 5,093,315 for the six months ended June 30, 2022, compared to 21,382,597 in the prior year, reflecting a significant share consolidation[46] - Basic and diluted loss per share was $(1.52) for the six months ended June 30, 2022, compared to $(0.28) in the same period last year[46] - Comprehensive loss attributable to Infobird Co., Ltd was $7,897,229 for the six months ended June 30, 2022, compared to $5,881,963 in the prior year, indicating a 34.3% increase in comprehensive losses[46] Impairments and Allowances - As of June 30, 2022, the allowance for doubtful accounts was $3,900,525, an increase of 57.4% from $2,478,341 as of December 31, 2021[100] - Approximately $3.7 million of long-lived assets impairment was recognized as of June 30, 2022, including $2.0 million related to construction-in-progress and $1.3 million on intangible assets[116] - The carrying value of land use rights was fully impaired due to project delays caused by COVID-19[115] - The beginning balance of the allowance for doubtful accounts was $2,478,341 for the six months ended June 30, 2022, compared to $123,890 for the year ended December 31, 2021, showing a significant increase[194] Company Overview and Operations - Infobird Co., Ltd is a holding company with no substantive operations, incorporated on March 26, 2020, in the Cayman Islands[67] - Infobird Beijing, established in 2001, is a VIE and a SaaS provider of AI-powered customer engagement solutions in China[68] - Infobird completed a 51% acquisition of Shanghai Qishuo for approximately $1.3 million (RMB 8.6 million) on December 2, 2021[71] - Infobird WFOE has the exclusive right to provide technical support and consulting services to Infobird Beijing, with service fees equaling all consolidated net income[75] - The Company operates through contractual arrangements due to legal restrictions on foreign ownership in China[74] - The Company requires a minimum of approximately $1.5 million over the next twelve months to maintain current operations[89] - Management believes it has sufficient funds to meet working capital requirements and debt obligations over the next twelve months[89]

Financial Performance - Total revenues decreased by approximately $4.9 million, or 33.7%, to approximately $9.6 million for the year ended December 31, 2021, compared to $14.5 million for the year ended December 31, 2020[476]. - Gross profit decreased by approximately $7.5 million, or 76.9%, to approximately $2.3 million for the year ended December 31, 2021, from approximately $9.8 million for the year ended December 31, 2020[488]. - Net income decreased by approximately $18.3 million, or 450.4%, resulting in a net loss of approximately $(14.2) million for the year ended December 31, 2021[497]. - Total revenues decreased by approximately $3.7 million, or 20.4%, to approximately $14.5 million for the year ended December 31, 2020 from approximately $18.2 million for the year ended December 31, 2019[498]. - Net income decreased by approximately $1.0 million, or 20.4%, to approximately $4.1 million for the year ended December 31, 2020, from approximately $5.1 million for the year ended December 31, 2019[520]. Revenue Breakdown - Customized cloud-based services revenue decreased by approximately $5.0 million, or 100.0%, to approximately $0 for the year ended December 31, 2021, compared to $5.0 million for the same period in 2020[477]. - Revenue from business integration solution services amounted to approximately $4.1 million for the year ended December 31, 2021, representing approximately 42.3% of total revenue[480]. - Other revenues amounted to approximately $1.3 million for the year ended December 31, 2021, representing approximately 13.6% of total revenues[482]. - Revenue from software development pertaining to cloud-based services amounted to approximately $5.4 million for the year ended December 31, 2020, representing approximately 37.1% of total revenue[502]. Operating Expenses - Operating expenses increased by approximately $11.3 million, or 207.3%, to approximately $16.7 million for the year ended December 31, 2021, compared to $5.4 million for the year ended December 31, 2020[490]. - Selling expenses increased by approximately $2.0 million, or 108.3%, to approximately $3.8 million for the year ended December 31, 2021, from approximately $1.8 million for the year ended December 31, 2020[490]. - General and administrative expenses increased by approximately $4.2 million, or 247.6%, to approximately $6.0 million for the year ended December 31, 2021, from approximately $1.5 million for the year ended December 31, 2020[491]. - Research and development expenses increased by approximately $1.4 million, or 72.3%, to approximately $3.3 million for the year ended December 31, 2021, compared to $1.9 million for the same period in 2020[475]. Cash Flow and Financing - Cash on hand as of December 31, 2021, was approximately $6.3 million, with an additional $7.1 million in short-term investments[522]. - Net cash provided by financing activities was approximately $22.3 million for the year ended December 31, 2021, compared to a net cash used of approximately $233,000 for the year ended December 31, 2020[530]. - Net cash used by operating activities was approximately $7.5 million for the year ended December 31, 2021, primarily due to a net loss of approximately $14.2 million and an increase in accounts receivable of approximately $4.4 million[532]. - Net cash provided by financing activities was approximately $22.3 million for the year ended December 31, 2021, mainly from proceeds of $22.8 million from the initial public offering, net of offering costs of approximately $1.3 million[537]. Impairments and Other Income - The company recorded an impairment of approximately $2.4 million due to delays in construction progress and an additional impairment of $1.3 million on intangible assets for the year ended December 31, 2021[494]. - Total other income increased to approximately $0.7 million for the year ended December 31, 2021 from approximately $0.2 million for the year ended December 31, 2020, primarily due to a $0.5 million government grant[496]. Research and Development - Research and development expenses for the years ended December 31 were approximately $3.3 million in 2021, $1.9 million in 2020, and $1.5 million in 2019, indicating a significant increase in investment[588]. - As of December 31, 2021, the research and development team consisted of 131 personnel, accounting for approximately 33.5% of total employees[588]. - The company has developed a self-developed cloud-native architecture that enhances product scalability and supports ultra-large-scale concurrency capabilities[589]. - Research and development expenses include salaries and related costs, with no software costs capitalized for the years ended December 31, 2021, 2020, and 2019 due to short timing between technological feasibility and release[577]. Intellectual Property - As of December 31, 2021, the company held rights to 19 patents, 52 software copyrights, 1 artwork copyright, 41 registered trademarks, and 27 domain names in the PRC[594]. - The company focuses its intellectual property efforts primarily in China, balancing the need for coverage in strategic markets with cost considerations[594]. Revenue Recognition - Revenue from customized cloud-based services is recognized over time based on monthly utilization records, reflecting simultaneous consumption and delivery of services[552]. - Revenue from standard cloud-based services is recognized ratably over the contractual period, typically one year, with full payments generally collected in advance[553]. - Revenue from BPO services is recognized over time using the time elapsed output method, with contracts generally lasting one year and payments collected in advance[554]. - The company recognizes revenue for standard software licenses at the point in time when the customer has access to the software[558]. - Revenue from hardware and software integration is recognized over time based on progress towards completion, with contracts requiring significant customization[560]. Trends and Future Outlook - There are no known trends or uncertainties that are likely to materially affect net sales, revenues, or profitability, indicating stable future operating conditions[596].

Revenue Performance - Total revenues decreased by approximately $3.7 million, or 20.4%, to approximately $14.5 million for the year ended December 31, 2020, primarily due to the impact of the COVID-19 pandemic and the expiration of contracts with major customers [447]. - Standard cloud-based services revenue decreased by approximately $0.6 million, or 30.6%, to approximately $1.4 million, representing approximately 9.6% of total revenues for 2020 [447]. - Customized cloud-based services revenue decreased by approximately $7.9 million, or 61.1%, to approximately $5.0 million, representing approximately 34.4% of total revenues for 2020 [448]. - Software development revenue increased to approximately $5.4 million for the year ended December 31, 2020, representing approximately 37.1% of total revenue [451]. - Total revenues decreased by approximately $0.5 million, or 2.9%, to approximately $18.2 million for the year ended December 31, 2019, from approximately $18.8 million for the year ended December 31, 2018 [471]. Net Income and Expenses - Net income for the year ended December 31, 2020, was approximately $4.1 million, a decrease of 20.4% compared to $5.1 million in 2019 [446]. - Operating expenses increased by approximately $1.2 million, or 29.0%, to approximately $5.4 million for the year ended December 31, 2020, from approximately $4.2 million for the year ended December 31, 2019 [461]. - Net income decreased by approximately $1.0 million, or 20.4%, to approximately $4.1 million for the year ended December 31, 2020, from approximately $5.1 million for the year ended December 31, 2019 [470]. - Research and development expenses increased by approximately $0.4 million, or 26.8%, to approximately $1.9 million for the year ended December 31, 2020 [446]. - Research and development expenses for the years ended December 31, 2020, 2019, and 2018 were approximately $1.9 million, $1.5 million, and $3.0 million, respectively [548]. Cost of Revenues and Gross Profit - Total cost of revenues decreased by approximately $3.3 million, or 40.9%, to approximately $4.7 million for the year ended December 31, 2020 [455]. - Gross profit decreased by approximately $446,295, or 4.3%, to $9.8 million, with a gross margin of 67.5% for the year ended December 31, 2020 [459]. - Overall gross margin increased to approximately 67.5% for the year ended December 31, 2020, compared to 56.2% for the year ended December 31, 2019, representing an 11.3% increase [460]. - Gross profit decreased by approximately $0.4 million, or 4.3%, to approximately $9.8 million for the year ended December 31, 2020, from approximately $10.3 million for the year ended December 31, 2019 [460]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was approximately $1.5 million for the year ended December 31, 2020, primarily attributable to net income of approximately $4.1 million [502]. - Net cash used in investing activities was approximately $3.2 million for the year ended December 31, 2020, primarily due to salary and benefits payments on capitalized software [506]. - Capital expenditures for the years ended December 31, 2020, 2019, and 2018 were approximately $3.2 million, $2.1 million, and $0.6 million, respectively [509]. - As of December 31, 2020, the working capital deficit was approximately $0.2 million, with cash amounting to $1.7 million [495]. Research and Development - As of December 31, 2020, the company had a research and development team of 122 personnel, accounting for approximately 40.0% of total employees [548]. - The company has invested significantly in research and development to maintain technological advantages and plans to continue extensive investments [548]. - The company’s self-developed cloud-based no-code development platform significantly shortens the time required to develop new products compared to traditional methods [550]. - The company’s key technologies include cloud-native architecture, AI and machine learning capabilities, and patented VoIP technologies, enhancing its competitive edge in the market [549]. Contracts and Obligations - The company signed a cloud computing development agreement with the Guiyang government, acquiring 40-year land use rights for approximately $4.7 million (RMB 32,532,746) and received a cash grant of approximately $4.5 million (RMB 31,068,626) [539]. - Minimum lease payments under operating leases for the next five years total $529,549, with $431,467 due in the twelve months ending December 31, 2021 [513]. - The total contractual obligations as of December 31, 2020, amounted to approximately $3.6 million, including short-term loans and operating lease obligations [559]. Revenue Recognition - Revenue from customized cloud-based services is recognized over time based on monthly utilization records, reflecting simultaneous consumption and delivery of services [523]. - Revenue from standard cloud-based services is recognized ratably over the contractual period, typically one year, with full payments collected in advance [524]. - Revenue from BPO services is recognized over time using the time elapsed output method, with contract performance periods generally lasting one year [525]. Tax and Interest - Interest expense decreased to approximately $0.2 million for the year ended December 31, 2020, from approximately $0.4 million for the year ended December 31, 2019 [466]. - Income tax expense decreased to approximately $0.3 million for the year ended December 31, 2020, compared to approximately $0.7 million for the year ended December 31, 2019 [468]. - Other income increased to approximately $185,000 for the year ended December 31, 2020, from approximately $146,000 for the year ended December 31, 2019, mainly due to increased government subsidies [467].