Discontinued Operations

12 Months Ended

Dec. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 4 — Discontinued Operations

In August 11, 2023, the Company discontinued its SaaS services in the Mainland of China. On August 11, 2023, Infobird Co., Ltd, a Cayman Island exempted company (the “Company”), entered into an equity transfer agreement (the “Agreement”) with CRservices Limited (“CRservices”), a Mahé Island limited company and a shareholder of the Company, pursuant to which, the Company agreed to sell all the issued shares of Infobird HK, a limited company incorporated under the laws of Hong Kong and a wholly owned subsidiary of the Company, for a consideration of HK$10,000. On the same day, the Company discontinued its SaaS services in the Mainland of China.

As a result, the result of operations for the Company’s Mainland SaaS services business are reported as discontinued operations under the guidance of ASC 205.

Reconciliation of the carrying amounts of major classes of assets and liabilities from discontinued operations in the consolidated balance sheets as of December 31, 2022 is as follow:

Carrying amounts of major classes of assets included as part of discontinued operations of Infobird HK, Infobird WFOE, Infobird Beijing, Infobird Guiyang, Infobird Anhui, Shanghai Qishuo and Anhui Weiao:

	December 31,
	2022
CURRENT ASSETS:
Cash	$	829,258
Accounts receivable, net		402,309
Other receivables, net		99,405
Due from related parties		29,983
Prepayments and other current assets		202,054
Total current assets of discontinued operations		1,563,009
OTHER ASSETS:
Property and equipment, net		153,516
Right-of-use assets		52,813
Long-term deposits, net		18,993
Intangible assets, net		2,556,761
Goodwill		478,657
Total other assets of discontinued operations		3,260,740
Total assets of discontinued operations	$	4,823,749

Carrying amounts of major classes of liabilities included as part of discontinued operations of Infobird HK, Infobird WFOE, Infobird Beijing, Infobird Guiyang, Infobird Anhui, Shanghai Qishuo and Anhui Weiao:

	December 31,
	2022
CURRENT LIABILITIES:
Account payable	$	3,216,364
Bank loans - current		3,548,242
Other payables and accrued liabilities		1,134,345
Due to related parties		53,671
Due to Infobird Cayman		14,013,927
Deferred revenue		1,460,249
Taxes payable		653,085
Lease liabilities - current		39,861
Total current liabilities of discontinued operations		24,119,744
OTHER LIABILITIES:
Bank loans - noncurrent		18,170
Lease liabilities - noncurrent		8,602
Total other liabilities of discontinued operations		26,772
Total liabilities of discontinued operations	$	24,146,516

Reconciliation of the amounts of major classes of income and losses from discontinued operations in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2023, 2022 and 2021.

	For the Year Ended
	December 31,			December 31,			December 31,
	2023			2022			2021
REVENUES	$	2,589,823		$	5,505,734		$	9,641,080
COST OF REVENUES		1,603,887			3,527,402			7,373,652
GROSS PROFIT		985,936			1,978,332			2,267,428
OPERATING EXPENSES:
Selling		607,424			3,368,714			3,828,835
General and administrative		954,576			6,142,730			5,152,995
Research and development		922,343			3,323,361			3,269,680
Long-live assets impairment		2,602,589			2,631,019			3,692,047
Total operating expenses		5,086,932			15,465,824			15,943,557
LOSS FROM OPERATIONS		(4,100,996	)		(13,487,492	)		(13,676,129	)
OTHER INCOME (EXPENSE)
Interest income		1,296			2,994			9,135
Interest expense		(33,682	)		(1,450,707	)		(317,402	)
Other (expense) income, net		(154,275	)		1,206,793			(514,162	)
Total other income (expense), net		(186,661	)		(240,920	)		(205,895	)
LOSS FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES		(4,287,657	)		(13,728,412	)		(13,470,234	)
GAIN ON THE SALE OF DISCONTINUED OPERATIONS BEFORE INCOME TAXES		22,858,286			—			—
TOTAL INCOME(LOSS) FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES		18,570,629			(13,728,412	)		(13,470,234	)
INCOME TAX EXPENSE(BENEFIT)		—			(77,649	)		124,058
INCOME(LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX		18,570,629			(13,650,763	)		(13,594,292	)