Infobird(US:IFBD)2022-05-15 16:00Financial 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].