Infobird(IFBD) - 2024 Q2 - Quarterly Report

Financial Performance - Total revenues for the six months ended June 30, 2024, were $20,000, compared to$0 for the same period in 2023[6] - Gross profit for the six months ended June 30, 2024, was $1,622, with a gross margin of approximately 8.1$811,951, a significant reduction from a net loss of $4,583,616 in the same period of 2023[6] - The company reported a total comprehensive loss of$809,377 for the six months ended June 30, 2024, compared to $4,436,612 for the same period in 2023[6] - Net loss for the six months ended June 30, 2024, was$811,951, a significant improvement compared to a net loss of $4,870,713 for the same period in 2023[10] - For the six months ended June 30, 2024, the Company reported no revenues from discontinued operations, compared to$2,265,425 for the same period in 2023[104] Assets and Equity - Total assets increased to $62,626,885 as of June 30, 2024, compared to$57,655,499 as of December 31, 2023[4] - Total shareholders' equity attributable to Infobird Co., Ltd increased to $62,480,521 as of June 30, 2024, from$57,592,502 as of December 31, 2023[4] - Cash and cash equivalents rose to $6,159,651 as of June 30, 2024, up from$52,659 as of December 31, 2023[4] - Cash at the end of the period increased to $6,159,651 from$558,913 in the previous year, reflecting a net change in cash of $6,106,992[10] - The net balance of the escrow account related to convertible notes and issuance of common shares was$28,501,762 as of June 30, 2024, down from $52,187,762 as of December 31, 2023[53] Operating Expenses - Operating expenses for the six months ended June 30, 2024, were$828,632, a decrease from $854,683 in the same period of 2023[6] - Employee benefits expenses for continuing operations were$19,950 for the six months ended June 30, 2024, compared to nil for the same period in 2023[90] - The total operating expenses for the discontinued operations in the six months ended June 30, 2023, were $4,772,015, leading to a loss from operations of$3,913,377[105] Cash Flow and Financing - Net cash provided by operating activities from continuing operations was $1,320,454, compared to a net cash used of$5,045,416 in the prior year[10] - The company reported net proceeds from the issuance of common stock of $5,697,396, up from$4,522,313 in the same period last year[10] - Cash deposits in escrow accounts increased to $5,114,000 from$2,000,000 in the previous year, indicating a strategic investment approach[10] - The escrow account balance related to financing activities decreased from $52,187,762 as of December 31, 2023, to$28,501,762 as of June 30, 2024, following a payment of $23,800,000 for acquisition targets[108][109] Strategic Changes and Acquisitions - The company completed the acquisition of Inforbird Technologies on July 14, 2023, enhancing its SaaS and BPO service offerings[20] - Infobird Cayman disposed of several subsidiaries, including Infobird HK and Infobird WFOE, on August 11, 2023, as part of a strategic restructuring[13][22] - The company established a new subsidiary, Guangnian Zhiyuan, on July 6, 2023, to expand its customer relationship management services[21] - The Company acquired 65$40.0 million[162] Revenue Recognition and Business Operations - Revenue from continuing operations is primarily generated from business integration solution services, including customized software development[60] - Revenue from customized cloud-based services includes subscription fees, voice/data plans, and technical support, recognized over time based on monthly utilization records[64] - Revenue from sales of standard software licenses is recognized at the point in time when customers gain access to the software[71] - The Company expects to expand its customer base through business integration solution services and convert them into SaaS subscribers[70] - The Company recognized revenue under ASC Topic 606, reflecting the transfer of goods and services to customers based on expected consideration[58] Financial Strategy and Risks - The company has sufficient liquidity to operate at its current level without requiring additional funding over the next twelve months[36] - As of June 30, 2024, one customer accounted for 100.0% of the company's total revenues, indicating a high concentration risk[126] - The company has a net operating loss carryforward of approximately $45,847 as of June 30, 2024, compared to$19,551 as of December 31, 2023[119] - The company did not incur any income tax expenses for the six months ended June 30, 2024, and 2023, due to the absence of assessable profits in Hong Kong and the Cayman Islands[118] Shareholder Information - The company has undergone a share consolidation effective on March 4, 2024, and a capital reduction and reorganization effective on May 2, 2024[4] - Following a 1-for-8 share consolidation in March 2024, the basic and diluted loss per share changed from 0.82 to 6.55[145] - The Company’s authorized share capital was changed to $50,000,000 divided into 5,000,000,000,000 ordinary shares after a capital reduction and share subdivision[146] - The Company issued convertible notes totaling$6.25 million on December 23, 2022, resulting in the issuance of 12.5 million ordinary shares upon conversion[136]