XML 33 R11.htm IDEA: XBRL DOCUMENT
v3.25.2

Variable interest entity | 12 Months Ended
--- | ---
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Variable interest entity | Note 3 – Variable interest entity VIEs are mainly from continuing operations and discontinued operations during the years ended December 31, 2024, 2023, and 2022: VIEs from continuing operations On June 10, 2024, Pure Media entered into the Contractual Arrangements with Pinmu Century, and on July 31, 2024, Pure Media entered into the Contractual Arrangements with Zhenxi Brand. The significant terms of these Contractual Arrangements are summarized in “Note 1 – Nature of business and organization” above. As a result, the Company classifies Pinmu Century and Zhenxi Brand as VIEs which should be consolidated based on the structure as described in Note 1. A VIE is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected residual returns of the entity or obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary for accounting purposes and must consolidate the VIE. Pure Media is deemed to have a controlling financial interest and be the primary beneficiary for accounting purposes of Pinmu Century and Zhenxi Brand because it has both of the following characteristics:
| (1) | The power to direct activities at Pinmu Century and Zhenxi Brand that most significantly impact such entity’s economic performance, and
| (2) | The right to receive benefits from Pinmu Century and Zhenxi Brand that could potentially be significant to such entity.
Pursuant to the Contractual Arrangements, Pinmu Century and Zhenxi Brand pay service fees equal to all of its net income to Pure Media. The Contractual Arrangements are designed so that Pinmu Century and Zhenxi Brand operate for the benefit of Pure Media and ultimately, the Company. Under the Contractual Arrangements, the Company has the power to direct activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Company considers that there is no asset in the VIEs that can be used only to settle obligations of the VIEs, except for registered capital and PRC statutory reserves, if any. As Pinmu Century is incorporated as a limited liability company and Zhenxi Brand is incorporated as a wholly owned enterprise under the Company Law of the PRC, creditors of the VIEs do not have recourse to the general credit of the Company for any of the liabilities of the VIEs. Accordingly, the accounts of Pinmu Century and Zhenxi Brand are consolidated in the accompanying consolidated financial statements. In addition, their financial positions and results of operations are included in the Company’s consolidated financial statements. VIE from discontinued operations On May 27, 2020, Infobird WFOE entered into the Contractual Arrangements with Infobird Beijing. The significant terms of these Contractual Arrangements are summarized in “Note 1 – Nature of business and organization” above. As a result, the Company classifies Infobird Beijing as a VIE which should be consolidated till the dispose occurred in August, 2023, based on the structure as described in Note 1. A VIE is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected residual returns of the entity or obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary for accounting purposes and must consolidate the VIE. Infobird WFOE is deemed to have a controlling financial interest and be the primary beneficiary for accounting purposes of Infobird Beijing because it has both of the following characteristics:
| (1) | The power to direct activities at Infobird Beijing that most significantly impact such entity’s economic performance, and
| (2) | The right to receive benefits from Infobird Beijing that could potentially be significant to such entity.
Pursuant to the Contractual Arrangements, Infobird Beijing pays service fees equal to all of its net income to Infobird WFOE. The Contractual Arrangements are designed so that Infobird Beijing operates for the benefit of Infobird WFOE and ultimately, the Company. Under the Contractual Arrangements, the Company has the power to direct activities of the VIEs and can have assets transferred out of the VIEs and settle obligations of the VIEs, except for registered capital and PRC statutory reserves, if any. As the VIEs are incorporated as limited liability companies under the Company Law of the PRC, creditors of the VIEs do not have recourse to the general credit of the Company for any of the liabilities of the VIEs. Accordingly, the accounts of Infobird Beijing are consolidated in the accompanying consolidated financial statements. In addition, its financial positions and results of operations are included in the Company’s consolidated financial statements. The carrying amount of the VIEs’ consolidated assets and liabilities are as follows:
Schedule of VIEs’ consolidated assets and liabilities |  |  |  |  |  |  |  |
|  | December 31, 2024 |  | December 31, 2023
Current assets |  | $ | 12,630,910 |  |  | $ | — |
Other assets |  |  | 350,188 |  |  |  | — |
Total assets |  |  | 12,981,098 |  |  |  | — |
Total liabilities |  |  | (3,897,967 | ) |  |  | — |
Net assets |  | $ | 9,083,131 |  |  | $ | — |
|  | December 31, 2024 |  | December 31, 2023
Current liabilities: |  |  |  |  |  |  |  |
Accounts payable |  | $ | 2,787,656 |  |  | $ | — |
Other payables and accrued liabilities |  |  | 207,558 |  |  |  | — |
Contract liabilities |  |  | 37,316 |  |  |  | — |
Lease liabilities |  |  | 133,818 |  |  |  | — |
Taxes payable |  |  | 528,173 |  |  |  | — |
Total current liabilities |  |  | 3,694,521 |  |  |  | — |
Lease liabilities – non-current |  |  | 203,446 |  |  |  | — |
Total liabilities |  | $ | 3,897,967 |  |  | $ | — |
The summarized operating results of the VIEs are as follows:
|  | For the year ended December 31, 2024 |  | For the year ended December 31, 2023** |  | For the year ended December 31, 2022**
Operating revenues* |  | $ | 1,417,848 |  |  | $ | 3,173,124 |  |  | $ | 6,093,457 |
Gross profit |  |  | 591,012 |  |  |  | 1,575,941 |  |  |  | 2,566,055 |
Loss from operations |  |  | (20,269 | ) |  |  | (4,121,315 | ) |  |  | (13,046,004 | )
Net loss |  | $ | (46,643 | ) |  | $ | (4,310,491 | ) |  | $ | (13,224,939 | )
Net loss attributable to INFOBIRD CO., LTD |  |  | (45,244 | ) |  |  | (4,018,865 | ) |  |  | (12,305,833 | )
Net loss attributable to non-controlling interest |  |  | (1,399 | ) |  |  | (291,626 | ) |  |  | (919,106 | )
* | During the years ended December 31, 2024, 2023 and 2022, Operating revenues include nil, $583,302 and $601,777 intercompany revenue to Infobird WFOE, respectively.
** | Operating revenues in 2023 and 2022 were totally generated from discontinued operations.

X
- References No definition available. + Details
Name: | us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/810/tableOfContent + Details
Name: | us-gaap_VariableInterestEntityDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration