Infobird(IFBD) - 2023 Q2 - Quarterly Report

Financial Performance - Net loss attributable to Infobird Co., Ltd for the six months ended June 30, 2023, was $4,583,616, a decrease from a net loss of$7,750,721 for the same period in 2022, reflecting a reduction of approximately 40%[6] - The company reported a total comprehensive loss of $4,436,612 for the six months ended June 30, 2023, compared to a total comprehensive loss of$7,943,775 for the same period in 2022, indicating an improvement of about 44%[6] - For the six months ended June 30, 2023, the net loss was $4,870,713, compared to a net loss of$7,790,803 for the same period in 2022, representing a 37.5% improvement[14] - The net loss from discontinued operations for the six months ended June 30, 2023, was $4,101,419, compared to a net loss of$6,932,322 in the same period of 2022, reflecting an improvement of approximately 40.5%[142] Assets and Liabilities - Total current assets increased to $32,925,040 as of June 30, 2023, up from$27,387,458 as of December 31, 2022, representing an increase of approximately 20%[3] - Total liabilities rose to $26,500,239 as of June 30, 2023, compared to$24,146,516 as of December 31, 2022, indicating an increase of about 9.8%[3] - Total assets as of June 30, 2023, were $33,087,622, up from$30,648,198 as of December 31, 2022, marking an increase of approximately 8.0%[3] - The accumulated deficit increased to $(32,650,031) as of June 30, 2023, compared to$(28,066,415) as of December 31, 2022, indicating a worsening of approximately 16%[3] Cash Flow and Financing - The net cash used in operating activities from continuing operations was $3,618,254, a significant decrease from$1,013,952 provided in the same period of the previous year[14] - The company reported net cash provided by financing activities from continuing operations of $6,839,245, indicating strong financing support[14] - The total cash at the end of the period was$558,913, down from $1,420,792 at the end of the previous year, reflecting a decrease of 60.7$3,390 as of June 30, 2023, down from $209,561 as of December 31, 2022, reflecting a decline of approximately 98.4$38,227,552 as of June 30, 2023[10] - As of June 30, 2023, the Company had 1,000,000,000 authorized ordinary shares, with 5,100,164 shares issued and outstanding[180] Discontinued Operations - The Company reported total losses of $353,192 from discontinued operations, compared to a loss of$75,437 for the year ended December 31, 2022[76] - The total assets belonging to discontinued operations as of June 30, 2023, were $8,869,328, down from$10,512,571 as of December 31, 2022, reflecting a decrease of about 15.6%[128] - The total liabilities belonging to discontinued operations increased to $(29,229,090) as of June 30, 2023, compared to$(27,769,551) as of December 31, 2022, representing an increase of approximately 5.2%[128] - The company discontinued its SaaS services in Mainland China in August 2023, reporting the results as discontinued operations[136] Revenue and Expenses - Revenues for the six months ended June 30, 2023, were $2,265,425, down 12.2$2,579,749 for the same period in 2022[142] - Gross profit for the six months ended June 30, 2023, was $858,638, a decrease of 6.6$919,104 in the prior year[142] - Total operating expenses for the six months ended June 30, 2023, were $4,772,015, down 38.7$7,727,352 in the same period of 2022[142] - The company reported a gain from short-term investments of $84,634 for the six months ended June 30, 2023, compared to a loss of$434,669 in the same period of 2022[145] Impairments and Allowances - As of June 30, 2023, the Company recognized approximately $4.7 million in impairment for long-lived assets, including$1.9 million related to construction-in-progress and $0.3 million for land use rights due to COVID-19 impacts[64] - The Company recorded additional impairment of$2.6 million on intangible assets for the six months ended June 30, 2023, all of which occurred in discontinued operation entities[64] - The Company has no allowance for doubtful accounts deemed necessary for both continuing and discontinued operations as of June 30, 2023[53] Taxation - The company did not incur any income tax benefit for the six months ended June 30, 2023, while it recorded an income tax credit of $38,125 for the same period in 2022[157] - Total taxes payable for continuing operations was reported as$0 as of June 30, 2023, indicating no outstanding tax liabilities[165] Currency and Exchange Rates - The RMB depreciated by 5.1% from December 31, 2022, to June 30, 2023, impacting the company's financial results reported in U.S. dollar terms[169] Business Operations - Infobird completed a 51% acquisition of Shanghai Qishuo Technology Inc. for approximately $1.3 million, enhancing its SaaS capabilities in big data analysis[21] - The company has a 90.18% ownership in Guiyang Infobird Cloud Computing Co., Ltd, which focuses on software development and BPO services[24] - The Company operates in a single reporting segment, with all revenues derived from the PRC[199]