Infobird(US:IFBD)2022-12-07 16:00Revenue 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]