Infobird(US:IFBD)2023-04-30 16:00Financial 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]