EX-99.1 2 e5278_ex99-1.htm EXHIBIT 99.1

 

 

Exhibit 99.1

 

The following unaudited pro forma combined financial information of the Company and the disposed company is presented to illustrate the estimated effects of the Disposition.

 

The unaudited pro forma combined balance sheet as of December 31, 2022 combines the historical consolidated balance sheet of the Company and the consolidated balance sheet of the disposed company, after giving effect to the Disposition as if it had occurred on December 31, 2022. The unaudited pro forma statement of operations for the year ended December 31, 2022 combines the historical consolidated statement of comprehensive loss of the Company and the consolidated statement of profit or loss and other comprehensive income or loss of the disposed company, after giving effect to the Disposition as if it had occurred on January 1, 2022. These unaudited pro forma combined balance sheet and unaudited pro forma combined statement of operations are referred to collectively as the “pro forma financial information.”

 

The pro forma financial information should be read in conjunction with the accompanying notes. In addition, the pro forma financial information is derived from and should be read in conjunction with the audited consolidated financial statements of the Company as of and for the fiscal year ended December 31, 2022 and the related notes included in the Annual Report on Form 20-F for the year ended December 31, 2022 filed by the Company.

 

The pro forma adjustments eliminate all of Infobird HK’s assets, liabilities and results of operations, and give effect to the impairment of other receivables with the disposed company, receipt of net cash proceeds and gain from the sale of Infobird HK.

 

 

 

 

Unaudited Pro Forma Combined Balance Sheet

 

   As of December 31, 2022
   Historical  Disposition  Pro Forma
   US$  US$  US$
CURRENT ASSETS               
Cash  $1,038,819   $(827,978)  $210,841 
Accounts receivable, net   402,309    (402,309)    
Other receivables, net   99,405    (99,405)    
Due from related parties   29,983    (29,983)    
Escrow, current   4,896,932        4,896,932 
Prepayments and other current assets   202,054    (202,054)    
Short-term investment   6,704,029        6,704,029 
Total current assets   13,373,531    (1,561,729)   11,811,802 
                
OTHER ASSETS               
Property and equipment, net   153,516    (153,516)    
Right-of-use assets   52,813    (52,813)    
Long-term deposits, net   18,993    (18,993)    
Intangible assets, net   2,556,761    (2,556,761)    
Goodwill   478,657    (478,657)    
Total other assets   3,260,740    (3,260,740)    
                
Total assets  $16,634,271   $(4,822,469)  $11,811,802 
LIABILITIES AND SHAREHOLDERS’ EQUITY               
                
CURRENT LIABILITIES               
Accounts payable  $3,216,364   $(3,216,364)  $ 
Bank loans - current   3,548,242    (3,548,242)    
Other payables and accrued liabilities   1,134,345    (1,134,345)    
Due to related parties   53,671    (53,671)    
Deferred revenue   1,460,249    (1,460,249)    
Taxes payable   653,085    (653,085)    
Lease liabilities - current   39,861    (39,861)    
Total current liabilities   10,105,817    (10,105,817)    
                
OTHER LIABILITIES               
Bank loans - noncurrent   18,170    (18,170)    
Lease liabilities - noncurrent   8,602    (8,602)    
Total other liabilities   26,772    (26,772)    
                
Total liabilities   10,132,589    (10,132,589)    
COMMITMENTS AND CONTINGENCIES SHAREHOLDERS’ EQUITY               
Ordinary shares, $0.005 par value, 5,000,000,000 shares authorized, 19,093,315 issued and outstanding as of December 31, 2022   95,467        95,467 
Additional paid-in capital   33,737,276    (4,841,361)   28,895,915 
Statutory reserves   449,136    (449,136)    
Accumulated deficits   (28,066,415)   10,886,835    (17,179,580)
Accumulated other comprehensive income   361,655    (361,655)    
Total shareholders’ equity attributable to Infobird Co., Ltd   6,577,119    5,234,683    11,811,802 
                
Non-controlling interests   (75,437)   75,437     
Total equity   6,501,682    5,310,120    11,811,802 
                
Total liabilities and equity  $16,634,271   $(4,822,469)  $11,811,802 

 

The accompanying notes are an integral part of these unaudited pro forma combined financial statements

 

 

 

 

Unaudited Pro Forma Combined Statements of Operations

 

   For the year ended December 31, 2022
   Historical  Disposition  Pro Forma
   US$  US$  US$
REVENUES  $5,505,734   $(5,505,734)  $ 
COST OF REVENUES   3,527,402    (3,527,402)    
                
GROSS PROFIT   1,978,332    (1,978,332)    
                
OPERATING EXPENSES:               
Selling   3,368,714    (3,368,714)    
General and administrative   7,040,141    (6,142,730)   897,411 
Research and development   3,323,361    (3,323,361)    
Long-live assets impairment   2,631,019    (2,631,019)    
Total operating expenses   16,363,235    (15,465,824)   897,411 
                
LOSS FROM OPERATIONS   (14,384,903)   13,487,492    (897,411)
                
OTHER INCOME (EXPENSE)               
Interest income   2,994    (2,994)    
Interest expense   (1,450,707)   200,707    (1,250,000)
Other expense, net   (431,118)   (7,453,767)   (7,884,885)
Total other expense, net   (1,878,831)   (7,256,054)   (9,134,885)
                
LOSS BEFORE INCOME TAXES   (16,263,734)   6,231,438    (10,032,296)
                
PROVISION FOR OF INCOME TAXES   (77,649)   77,649     
                
NET LOSS   (16,186,085)   6,153,789    (10,032,296)
                
Less: Net loss attributable to non-controlling interest   (919,106)   919,106     
                
NET LOSS ATTRIBUTABLE TO INFOBIRD CO.,LTD  $(15,266,979)  $5,234,683   $(10,032,296)
                
NET LOSS   (16,186,085)   6,153,789    (10,032,296)
                
FOREIGN CURRENCY TRANSLATION ADJUSTMENT   (237,046)   237,046     
                
TOTAL COMPREHENSIVE LOSS   (16,423,131)   6,390,835    (10,032,296)
                
Less: Comprehensive loss attributable to non-controlling interests   (925,589)   925,589     
                
COMPREHENSIVE LOSS ATTRIBUTABLE TO INFOBIRD CO., LTD  $(15,497,542)  $5,465,246   $(10,032,296)
                
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES               
Basic and diluted   5,753,589        5,753,589 
                
LOSS PER SHARE               
Basic and diluted  $(2.65)  $   $(1.74)

 

The accompanying notes are an integral part of these unaudited pro forma combined financial statements

 

 

 

 

NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS

 

1. Basis of Presentation

 

The pro forma financial information was prepared in conformity with Article 11 of Regulation S-X.

 

The pro forma financial information has been prepared by the Company for illustrative and informational purposes only in accordance with Article 11. The pro forma financial information is not necessarily indicative of what the Company’s consolidated statement of comprehensive loss or consolidated balance sheet actually would have been had the Disposition and other Adjustments been completed as of the dates indicated or will be for any future periods. The pro forma financial information does not purport to project the Company’s future financial position or results of operations following the completion of the Disposition.

 

2. The Adjustments

 

The adjustments include the impairment of other receivables with the disposed company, and the net cash proceeds and gains of the Sale.