{"url_path":"/sec/ifbd/10-k/2026/item-19","section_key":"item-19","section_title":"Item 19 EXHIBITS**","topic":"sec","document":{"doc_type":"20-F/A","doc_date":"2026-06-12","source_url":"https://www.sec.gov/Archives/edgar/data/1815566/0001731122-26-000847-index.html","accession_number":"0001731122-26-000847","cik":"0001815566","ticker":"IFBD","issuer_name":"Infobird Co., Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1815566/0001731122-26-000847-index.html","primary_entity_key":"0001815566","primary_entity_name":"Infobird Co., Ltd"},"word_count":20824,"has_tables":true,"body_markdown":"**ITEM 19. EXHIBITS**\n\n \n\n**EXHIBIT INDEX**\n\n****\n\n \n\n**Exhibit\nNumber**\n \n**Description of Exhibit** \n\n1.1\n \n[Sixth Amended and Restated Memorandum and Articles of Association of the Registrant currently in effect, adopted by way of a special resolution passed on February 20, 2024 with effect from May 2, 2024  ](http://www.sec.gov/Archives/edgar/data/1815566/000173112224001097/e5611_ex1-2.htm)\n\n4.1\n \n[Specimen certificate evidencing ordinary shares (incorporated by reference to Exhibit 4.1 of Amendment No. 3 to our Registration Statement on Form F-1 (File No. 333-251234)) filed with the Securities and Exchange Commission on March 15, 2021)](http://www.sec.gov/Archives/edgar/data/1815566/000173112221000056/e2337_ex4-1.htm)\n\n4.3\n \n[Description of Securities (incorporated herein by reference to the section titled “Description of Share Capital and Governing Documents” in the Registrant’s registration statement on Form F-1 (File No. 333-251234)), originally filed with the Securities and Exchange Commission on December 9, 2020, as amended, including any form of prospectus contained therein pursuant to Rule 424(b) under the Securities Act of 1933 and the Registrant’s registration statement on Form 8-A, filed with the Securities and Exchange Commission on March 30, 2021)](http://www.sec.gov/Archives/edgar/data/1815566/000173112220001267/e2270_f-1.htm#a_017)\n\n4.6\n \n[Convertible Promissory Note dated December 20, 2024 (incorporated by reference to Exhibit 10.1 from our report on Form 6-K (File No. 001-40301) filed with the Securities and Exchange Commission on December 20, 2024)](http://www.sec.gov/Archives/edgar/data/1815566/000173112224002019/e6228_ex10-1.htm)\n\n10.1  \n \n[Form of Indemnification Escrow Agreement (incorporated by reference to Exhibit 10.6 of Amendment No. 3 to our Registration Statement on Form F-1 (File No. 333-251234) filed with the Securities and Exchange Commission on March 15, 2021)](http://www.sec.gov/Archives/edgar/data/1815566/000173112221000384/e2515_10-6.htm)\n\n10.2\n \n[Form of Indemnification Agreement between the registrant and its officers and directors (incorporated by reference to Exhibit 10.7 of our Registration Statement on Form F-1 (File No. 333-251234) filed with the Securities and Exchange Commission on December 9, 2020)](http://www.sec.gov/Archives/edgar/data/1815566/000173112220001267/e2270_ex10-7.htm)\n\n10.3\n \n[Form of Director Agreement between the registrant and its directors (incorporated by reference to Exhibit 10.8 of our Registration Statement on Form F-1 (File No. 333-251234) filed with the Securities and Exchange Commission on December 9, 2020)](http://www.sec.gov/Archives/edgar/data/1815566/000173112220001267/e2270_ex10-8.htm)\n\n10.4\n \n[Form of Independent Director Agreement between the registrant and certain of its independent directors (incorporated by reference to Exhibit 10.9 of our Registration Statement on Form F-1 (File No. 333-251234) filed with the Securities and Exchange Commission on December 9, 2020)](http://www.sec.gov/Archives/edgar/data/1815566/000173112220001267/e2270_ex10-9.htm)\n\n10.5\n \n[Form of Employment Agreement between the registrant and its directors (incorporated by reference to Exhibit 10.11 of our Registration Statement on Form F-1 (File No. 333-251234) filed with the Securities and Exchange Commission on December 9, 2020)](http://www.sec.gov/Archives/edgar/data/1815566/000173112220001267/e2270_ex10-11.htm)\n\n10.6\n \n[Form of Securities Purchase Agreement by and between the Purchaser and the registrant, dated as of November 25, 2022 (incorporated by reference to Exhibit 4.11 from our report on Form 20-F (File No. 001-40301) filed with the Securities and Exchange Commission on May 1, 2023)](http://www.sec.gov/Archives/edgar/data/1815566/000173112223000801/e4641_ex4-11.htm)\n\n10.7\n \n[Form of Securities Purchase Agreement by and between the registrant and certain purchasers (incorporated by reference to Exhibit 99.1 from our report on Form 6-K (File No. 001-40301) filed with the Securities and Exchange Commission on February 28, 2023)](http://www.sec.gov/Archives/edgar/data/1815566/000173112223000277/e4450_ex99-1.htm)\n\n10.8\n \n[Placement Agency Agreement by and between Maxim Group LLC and the registrant (incorporated by reference to Exhibit 99.5 from our report on Form 6-K (File No. 001-40301) filed with the Securities and Exchange Commission on February 28, 2023)](http://www.sec.gov/Archives/edgar/data/1815566/000173112223000277/e4450_ex99-5.htm)\n\n10.9\n \n[Form of Securities Purchase Agreement, dated as of July 24, 2023, by and between Infobird Co., Ltd and the purchasers (incorporated by reference to Exhibit 99.1 from our report on Form 6-K (File No. 001-40301) filed with the Securities and Exchange Commission on July 28, 2023)](http://www.sec.gov/Archives/edgar/data/1815566/000173112223001314/e4871_ex99-1.htm)\n\n10.10\n \n[Form of Securities Purchase Agreement, dated as of August 3, 2023, by and between Infobird Co., Ltd and the purchasers (incorporated by reference to Exhibit 10.1 from our report on Form 6-K (File No. 001-40301) filed with the Securities and Exchange Commission on August 4, 2023)](http://www.sec.gov/Archives/edgar/data/1815566/000173112223001370/e4906_ex10-1.htm)\n\n10.11\n \n[English Translation of the Equity Transfer Agreement dated August 11, 2023, by and between Infobird Co., Ltd and CRservices Limited (incorporated by reference to Exhibit 10.1 from our report on Form 6-K (File No. 001-40301) filed with the Securities and Exchange Commission on August 17, 2023)](http://www.sec.gov/Archives/edgar/data/1815566/000173112223001547/e4953_ex10-1.htm)\n\n \n\n123\n\n \n\n \n\n10.12\n \n[Form of Securities Purchase Agreement, dated as of December 22, 2023, by and between Infobird Co., Ltd and the Investor (incorporated by reference to Exhibit 10.1 from our report on Form 6-K (File No. 001-40301) filed with the Securities and Exchange Commission on December 22, 2023)](https://www.sec.gov/Archives/edgar/data/1815566/000173112223002283/e5288_ex10-1.htm)\n\n10.13\n \n[Form of Equity Acquisition Agreement, dated as of June 28, 2024, by and between Infobird Co., Ltd and Shangri-La Trading Limited (incorporated by reference to Exhibit 10.1 from our report on Form 6-K (File No. 001-40301) filed with the Securities and Exchange Commission on July 1, 2024)](http://www.sec.gov/Archives/edgar/data/1815566/000173112224001052/e5783_ex10-1.htm)\n\n10.14\n \n[Form of Amendment No. 1 to Equity Acquisition Agreement, dated July 31, 2024, by and between Infobird Co., Ltd and Shangri-La Trading Limited (incorporated by reference to Exhibit 10.1 from our report on Form 6-K (File No. 001-40301) filed with the Securities and Exchange Commission on August 2, 2024)](http://www.sec.gov/Archives/edgar/data/1815566/000173112224001191/e5851_ex10-1.htm)\n\n10.15\n \n[Form of Equity Acquisition Agreement, dated December 6, 2024, by and between Infobird Co., Ltd and One One Business Limited (incorporated by reference to Exhibit 10.1 from our report on Form 6-K (File No. 001-40301) filed with the Securities and Exchange Commission on December 6, 2024)](http://www.sec.gov/Archives/edgar/data/1815566/000173112224001939/e6197_ex10-1.htm)\n\n12.1*\n \n[CEO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](e7706_ex12-1.htm)\n\n12.2*\n \n[CFO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](e7706_ex12-2.htm)\n\n13.1*\n \n[CEO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](e7706_ex13-1.htm)\n\n13.2*\n \n[CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](e7706_ex13-2.htm)\n\n14.1\n \n[Code of Business Conduct and Ethics (incorporated by reference to Exhibit 99.1 of Amendment No. 1 to our Registration Statement on Form F-1 (File No. 333-251234) filed with the Securities and Exchange Commission on January 12, 2021)](http://www.sec.gov/Archives/edgar/data/1815566/000173112221000056/e2337_ex99-1.htm)\n\n16.1\n \n[Letter from WWC, P.C. (incorporated by reference to Exhibit 16.1 from our report on Form 6-K (File No. 001-40301) filed with the Securities and Exchange Commission on June 3, 2024)](http://www.sec.gov/Archives/edgar/data/1815566/000173112224000913/e5723_ex16-1.htm)\n\n19.1\n \n[Insider trading policy (incorporated by reference to Exhibit 19.1 from our report on Form 20-F (File No. 001-40301) filed with the Securities and Exchange Commission on July 11, 2024)](http://www.sec.gov/Archives/edgar/data/1815566/000173112224001097/e5611_ex19-1.htm)\n\n21.1\n \n[List of Subsidiaries (incorporated by reference to Exhibit 21.1 from our report on Form 20-F (File No. 001-40301) filed with the Securities and Exchange Commission on April 2, 2026)](http://www.sec.gov/Archives/edgar/data/1815566/000173112226000522/e7504_ex21-1.htm)\n\n23.1* \n \n[Consent of Assentsure PAC, Independent Registered Public Accounting Firm  ](e7706_ex23-1.htm)\n\n23.2* \n \n[Consent of Audit Alliance LLP, Independent Registered Public Accounting Firm](e7706_ex23-2.htm)\n\n97.1\n \n[Clawback Policy (incorporated by reference to Exhibit 99.1 from our report on Form 6-K (File No. 001-40301) filed with the Securities and Exchange Commission on October 24, 2023)](http://www.sec.gov/Archives/edgar/data/1815566/000173112223001935/e5142_ex99-1.htm)\n\n101.INS*\n \nInline XBRL Instance Document\n\n101.SCH*\n \nInline XBRL Taxonomy Extension Schema Document\n\n101.CAL*\n \nInline XBRL Taxonomy Extension Calculation Linkbase Document\n\n101.DEF*\n \nInline XBRL Taxonomy Extension Definition Linkbase Document\n\n101.LAB*\n \nInline XBRL Taxonomy Extension Label Linkbase Document\n\n101.PRE*\n \nInline XBRL Taxonomy Extension Presentation Linkbase Document\n\n104*\n \nCover Page Interactive Data File\n\n  \n\n*\nFiled herewith.\n\n \n\n124\n\n \n\n \n\n**SIGNATURES**\n\n \n\nThe registrant hereby certifies that it meets all\nof the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its\nbehalf.\n\n \n\n \n**INFOBIRD CO., LTD**\n\n \n \n \n\n \nBy:\n*/s/ Xiangyang Wen*\n\n \n \nXiangyang Wen\n\n \n \nChief Executive Officer\n\n \n\nDate:\nJune 12, 2026\n\n \n\n125\n\n \n\n \n\n **INFOBIRD CO., LTD**\n\n \n\n**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**\n\n \n\n \n \n**Page**\n\n[Report of Independent Registered Public Accounting Firm (PCAOB ID: 6783)](#c_001)\n \nF-2\n\n[Report of Independent Registered Public Accounting Firm (PCAOB ID: 3487)](#b_001)\n \nF-3\n\n[Consolidated Balance Sheets as of December 31, 2025 and 2024](#b_002)\n \nF-4\n\n[Consolidated Statements of Operations and Comprehensive Income (Loss) for the Years Ended December 31, 2025, 2024 and 2023](#b_003)\n \nF-5\n\n[Consolidated Statements of Changes in Equity for the Years Ended December 31, 2025, 2024 and 2023](#b_004)\n \nF-6\n\n[Consolidated Statements of Cash Flows for the Years Ended December 31, 2025, 2024 and 2023](#b_005)\n \nF-7\n\n[Notes to Consolidated Financial Statements](#b_006)\n \nF-8\n\n** **\n\n****\n\nF-1\n\n \n\n****\n\n \n\nReport of Independent Registered Public Accounting\nFirm\n\n \n\nTo the Stockholders and Board of Directors of Infobird\nCo., Ltd\n\n \n\n**Opinion on the Financial Statements**\n\n** **\n\n****\n\nWe have audited\nthe accompanying consolidated balance sheet of Infobird Co., Ltd and its subsidiaries (the “Company”) as of December 31,\n2025, the related consolidated statements of operations and comprehensive income (loss), changes in stockholders’ equity, and cash\nflows for the year ended December 31, 2025, and the related notes (collectively referred to as the “financial statements”).\nIn our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Company\nas of December 31, 2025, and the consolidated results of its operations and its cash flows for the year ended December 31, 2025, in conformity\nwith accounting principles generally accepted in the United States of America (“US GAAP”).\n\n \n\n**Restatement\nof 2025 Financial Statements**\n\n \n\nAs discussed\nin Note 4 to the consolidated financial statements, the 2025 consolidated financial statements have been restated to correct a misstatement.\n\n \n\n**Basis for\nOpinion**\n\n \n\nThese financial\nstatements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s\nfinancial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board\n(United States) (the “PCAOB”) and are required to be independent with respect to the Company in accordance with the United\nStates federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\n \n\nWe conducted\nour audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable\nassurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not\nrequired to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we\nare required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion\non the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.\n\n \n\nOur audit included\nperforming procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing\nprocedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures\nin the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management,\nas well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for\nour opinion.\n\n****\n\n \n\n/s/ AssentSure PAC\n\nSingapore\n\nPCAOB ID Number 6783\n\nWe have served as the Company’s auditor since\n2026.\n\n \n\nApril\n2, 2026, except for Note 2, 4, 5, and 18 which are dated June 12, 2026\n\n \n\nF-2\n\n \n\n \n\n**Report of Independent Registered Public Accounting\nFirm**\n\n** **\n\n****\n\nTo the Stockholders and Board of Directors of Infobird\nCo., Ltd\n\n \n\n**Opinion on the Financial Statements**\n\n** **\n\nWe have audited the accompanying consolidated balance\nsheet of Infobird Co., Ltd and its subsidiaries (the “Company”) as of December 31, 2024, the related consolidated statements\nof operations and comprehensive income (loss), changes in stockholders’ equity, and cash flows for the years ended December 31,\n2024 and 2023, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial\nstatements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2024, and the\nconsolidated results of its operations and its cash flows for the years ended December 31, 2024 and 2023, in conformity with accounting\nprinciples generally accepted in the United States of America (“US GAAP”).\n\n \n\n**Basis for Opinion**\n\n** **\n\nThese financial statements are the responsibility\nof the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our\naudit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (the “PCAOB”)\nand are required to be independent with respect to the Company in accordance with the United States federal securities laws. and the applicable\nrules and regulations of the Securities and Exchange Commission and the PCAOB.\n\n \n\nWe conducted our audits in accordance with the standards\nof the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements\nare free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform,\nan audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal\ncontrol over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal\ncontrol over financial reporting. Accordingly, we express no such opinion.\n\n \n\nOur audits included performing procedures to assess\nthe risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond\nto those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial\nstatements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as\nevaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.** **\n\n \n\n/s/ Audit Alliance LLP\n\nSingapore\n\nApril 10, 2025\n\nPCAOB ID Number 3487\n\nWe served as the Company’s auditor from 2024\nto 2026.\n\n \n\nF-3\n\n \n\n \n\n**INFOBIRD CO., LTD AND SUBSIDIARIES\nCONSOLIDATED BALANCE SHEETS**\n\n** **\n\n \n \n \n \n \n \n \n \n \n\n \n \nDecember 31,\n \nDecember 31,\n\n \n \n2025\n \n2024\n\n \n \n (Restated)\n \n \n\n \n \n \n \n \n\nASSETS\n \n \n \n \n \n \n \n \n\nCURRENT ASSETS\n \n \n \n \n \n \n \n \n\nCash\n \n$\n5,113,317\n \n \n$\n4,693,725\n \n\nAccounts receivable, net\n \n \n3,453,879\n \n \n \n3,859,493\n \n\nNotes receivables, net\n \n \n533,068\n \n \n \n928,856\n \n\nOther receivables, net\n \n \n249,410\n \n \n \n147,952\n \n\nDue from related parties\n \n \n—\n \n \n \n247,328\n \n\nPrepayments\n \n \n228,545\n \n \n \n167,173\n \n\nTotal current assets\n \n \n9,578,219\n \n \n \n10,044,527\n \n\n \n \n \n \n \n \n \n \n \n\nOTHER ASSETS\n \n \n \n \n \n \n \n \n\nProperty and equipment, net\n \n \n637,041\n \n \n \n781,624\n \n\nRight-of-use assets\n \n \n377,461\n \n \n \n516,443\n \n\nGoodwill\n \n \n12,559,378\n \n \n \n62,435,299\n \n\nTotal other assets\n \n \n13,573,880\n \n \n \n63,733,366\n \n\n \n \n \n \n \n \n \n \n \n\nTotal assets\n \n$\n23,152,099\n \n \n$\n73,777,893\n \n\n \n \n \n \n \n \n \n \n \n\nLIABILITIES AND SHAREHOLDERS’ EQUITY\n \n \n \n \n \n \n \n \n\n \n \n \n \n \n \n \n \n \n\nCURRENT LIABILITIES\n \n \n \n \n \n \n \n \n\nAccounts payable\n \n$\n3,318,162\n \n \n$\n2,787,656\n \n\nShort-term loans\n \n \n662,955\n \n \n \n—\n \n\nOther payables and accrued liabilities\n \n \n180,237\n \n \n \n260,909\n \n\nContract liabilities\n \n \n9,544\n \n \n \n37,316\n \n\nTaxes payable\n \n \n417,816\n \n \n \n528,950\n \n\nLease liabilities - current\n \n \n259,928\n \n \n \n199,197\n \n\nTotal current liabilities\n \n \n4,848,642\n \n \n \n3,814,028\n \n\n \n \n \n \n \n \n \n \n \n\nOTHER LIABILITIES\n \n \n \n \n \n \n \n \n\nLease liabilities - noncurrent\n \n \n103,900\n \n \n \n306,028\n \n\nOther liabilities\n \n \n—\n \n \n \n2,856,120\n \n\nTotal other liabilities\n \n \n103,900\n \n \n \n3,162,148\n \n\n \n \n \n \n \n \n \n \n \n\nTotal liabilities\n \n$\n4,952,542\n \n \n$\n6,976,176\n \n\n \n \n \n \n \n \n \n \n \n\nCOMMITMENTS AND CONTINGENCIES\n \n \n—\n \n \n \n—\n \n\n \n \n \n \n \n \n \n \n \n\nSHAREHOLDERS’ EQUITY\n \n \n \n \n \n \n \n \n\nOrdinary shares, $0.00001\npar value, 5,000,000,000,000\nshares authorized, 8,188,574 and 5,456,974\nissued and outstanding as of December 31, 2025 and December 31, 2024, respectively\n \n$\n82\n \n \n$\n55\n \n\nAdditional paid-in capital\n \n \n94,899,354\n \n \n \n91,539,240\n \n\nAccumulated deficits\n \n \n(78,775,516\n)\n \n \n(26,703,478\n)\n\nAccumulated other comprehensive income (loss)\n \n \n1,548,392\n \n \n \n(63,634\n)\n\nTotal shareholders’ equity attributable to Infobird\nCo., Ltd\n \n \n17,672,312\n \n \n \n64,772,183\n \n\n \n \n \n \n \n \n \n \n \n\nNon-controlling interests\n \n \n527,245\n \n \n \n2,029,534\n \n\nTotal equity\n \n \n18,199,557\n \n \n \n66,801,717\n \n\n \n \n \n \n \n \n \n \n \n\nTotal liabilities and equity\n \n$\n23,152,099\n \n \n$\n73,777,893\n \n\n** ** \n\nThe accompanying notes are an integral part of these\nconsolidated financial statements.\n\n \n\nF-4\n\n \n\n \n\n**INFOBIRD CO., LTD AND SUBSIDIARIES\nCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME\n(LOSS)**\n\n** **\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n \n \nFor the Years Ended\n\n \n \nDecember 31,\n \nDecember 31,\n \nDecember 31,\n\n \n \n2025\n \n2024\n \n2023\n\n \n \n (Restated)\n \n \n \n \n\n \n \n \n \n \n \n \n\nREVENUES\n \n$\n8,706,740\n \n \n$\n1,437,848\n \n \n$\n280,000\n \n\nCOST OF REVENUES\n \n \n6,138,198\n \n \n \n845,236\n \n \n \n125,271\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nGROSS PROFIT\n \n \n2,568,542\n \n \n \n592,612\n \n \n \n154,729\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nOPERATING EXPENSES:\n \n \n \n \n \n \n \n \n \n \n \n \n\nSelling\n \n \n1,504,483\n \n \n \n438,596\n \n \n \n—\n \n\nGeneral and administrative\n \n \n2,612,675\n \n \n \n1,873,646\n \n \n \n3,311,155\n \n\nResearch and development\n \n \n97,518\n \n \n \n15,074\n \n \n \n—\n \n\nImpairment of goodwill\n \n \n51,186,782\n \n \n \n—\n \n \n \n—\n \n\nTotal operating expenses\n \n \n55,401,458\n \n \n \n2,327,316\n \n \n \n3,311,155\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nLOSS FROM OPERATIONS\n \n \n(52,832,916\n)\n \n \n(1,734,704\n)\n \n \n(3,156,426\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nOTHER INCOME (EXPENSE)\n \n \n \n \n \n \n \n \n \n \n \n \n\nInterest income\n \n \n19,965\n \n \n \n200,530\n \n \n \n1,366\n \n\nInterest expense\n \n \n(504,116\n)\n \n \n(546,525\n)\n \n \n(736,941\n)\n\nImpairment of due from discontinued operations\n \n \n—\n \n \n \n—\n \n \n \n(17,632,181\n)\n\nOther (expense) income, net\n \n \n(308,029\n)\n \n \n1,212\n \n \n \n85,396\n \n\nTotal other expense, net\n \n \n(792,180\n)\n \n \n(344,783\n)\n \n \n(18,282,360\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nLOSS BEFORE INCOME TAX EXPENSES\n \n \n(53,625,096\n)\n \n \n(2,079,487\n)\n \n \n(21,438,786\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nINCOME TAX EXPENSE\n \n \n—\n \n \n \n21,008\n \n \n \n—\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nNET LOSS FROM CONTINUING OPERATIONS\n \n \n(53,625,096\n)\n \n \n(2,100,495\n)\n \n \n(21,438,786\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nDISCONTINUED OPERATIONS\n \n \n \n \n \n \n \n \n \n \n \n \n\nLoss from discontinued operations, net of applicable income\ntaxes\n \n \n—\n \n \n \n—\n \n \n \n(4,287,657\n)\n\nNet gain on sale of discontinued operations, net of applicable\nincome taxes\n \n \n—\n \n \n \n—\n \n \n \n22,858,286\n \n\nNET PROFIT FROM DISCONTINUED OPERATIONS\n \n$\n—\n \n \n$\n—\n \n \n$\n18,570,629\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nNET LOSS\n \n \n(53,625,096\n)\n \n \n(2,100,495\n)\n \n \n(2,868,157\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nLess: Net loss attributable to non-controlling interest\nfrom continuing operations\n \n \n(1,553,058\n)\n \n \n(1,458\n)\n \n \n—\n \n\nNet loss attributable to non-controlling interest from\ndiscontinued operations\n \n \n—\n \n \n \n—\n \n \n \n(291,626\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nNET LOSS ATTRIBUTABLE TO INFOBIRD CO., LTD\n \n \n(52,072,038\n)\n \n \n(2,099,037\n)\n \n \n(2,576,531\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nNET LOSS\n \n \n(53,625,096\n)\n \n \n(2,100,495\n)\n \n \n(2,868,157\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nFOREIGN CURRENCY TRANSLATION ADJUSTMENT\n \n \n1,662,795\n \n \n \n(64,314\n)\n \n \n393,604\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nTOTAL COMPREHENSIVE LOSS\n \n \n(51,962,301\n)\n \n \n(2,164,809\n)\n \n \n(2,474,553\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nLess: Comprehensive income (loss) attributable to non-controlling\ninterests from continuing operations\n \n \n(1,502,289\n) \n \n \n(3,594\n)\n \n \n—\n \n\nComprehensive loss attributable to non-controlling interests\nfrom discontinued operations\n \n \n—\n \n \n \n—\n \n \n \n(282,920\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nCOMPREHENSIVE LOSS ATTRIBUTABLE TO INFOBIRD CO., LTD\n \n$\n(50,460,012\n)\n \n$\n(2,161,215\n)\n \n$\n(2,191,633\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nWEIGHTED AVERAGE NUMBER OF ORDINARY SHARES\n \n \n \n \n \n \n \n \n \n \n \n \n\nBasic and diluted\n \n \n8,016,446\n \n \n \n1,995,629\n \n \n \n393,572\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n(LOSS) EARNING PER SHARE - BASIC AND DILUTED\n \n \n \n \n \n \n \n \n \n \n \n \n\nContinuing operations\n \n$\n(6.50\n)\n \n$\n(1.05\n)\n \n$\n(54.47\n)\n\nDiscontinued operations\n \n$\n—\n \n \n$\n—\n \n \n$\n47.93\n \n\n****\n\n**** \n\nThe accompanying notes are an integral part of these\nconsolidated financial statements.\n\n \n\nF-5\n\n \n\n \n\n**INFOBIRD CO., LTD AND SUBSIDIARIES\nCONSOLIDATED STATEMENTS OF CHANGES IN EQUITY**\n\n** **\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n \n \n \n \n \n \n \n \n \n \nRetained earnings\n \nAccumulated\n \n \n \n \n\n \n \n \n \n \n \n \n \nAdditional\n \n(accumulated deficit)\n \nother\n \n Non-\n \n \n\n \n \nOrdinary shares\n \nSubscription\n \npaid-in\n \nStatutory\n \n \n \ncomprehensive\n \ncontrolling\n \n \n\n \n \nShares\n \nAmounts\n \nreceivable\n \nCapital\n \nreserves\n \nUnrestricted\n \nincome (loss)\n \ninterests\n \nTotal\n\nBALANCE, January 1, 2023\n \n \n23,867\n \n \n$\n—\n \n \n$\n—\n \n \n$\n33,832,743\n \n \n$\n449,136\n \n \n$\n(28,066,415\n)\n \n$\n361,655\n \n \n$\n(75,437\n)\n \n$\n6,501,682\n \n\nNet loss attributable to Infobird Co., Ltd\n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n(2,576,531\n)\n \n \n—\n \n \n \n—\n \n \n \n(2,576,531\n)\n\nNet loss attributable to non-controlling interests\n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n(291,626\n)\n \n \n(291,626\n)\n\nIssued ordinary shares under F3, net of issuance costs\n \n \n4,808\n \n \n \n—\n \n \n \n—\n \n \n \n4,522,313\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n4,522,313\n \n\nWarrants convert to ordinary shares\n \n \n3,125\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n\nAdditional ordinary shares of round up adjustment due\nto retroactive effect of Share Consolidation in 2023\n \n \n77\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n\nIssued ordinary shares under F3, net of issuance costs\n \n \n826,396\n \n \n \n8\n \n \n \n—\n \n \n \n44,999,992\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n45,000,000\n \n\nCB convert to ordinary shares, net of issuance costs\n \n \n34,688\n \n \n \n—\n \n \n \n—\n \n \n \n2,775,000\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n2,775,000\n \n\nAdditional ordinary shares of round up adjustment due\nto retroactive effect of Share Consolidation in 2023\n \n \n4,179\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n\nCB convert to ordinary shares, net of issuance costs\n \n \n168,623\n \n \n \n2\n \n \n \n—\n \n \n \n909,701\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n909,703\n \n\nIssued ordinary shares under F3, net of issuance costs\n \n \n215,000\n \n \n \n2\n \n \n \n(1,184,676\n)\n \n \n1,184,674\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n\nAdditional ordinary shares of round up adjustment due\nto retroactive effect of Share Consolidation in 2024\n \n \n62,236\n \n \n \n1\n \n \n \n—\n \n \n \n(1\n)\n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n\nForeign currency translation adjustment\n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n384,898\n \n \n \n8,706\n \n \n \n393,604\n \n\nDeconsolidation of discontinued operations\n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n(4,841,360\n)\n \n \n(449,136\n)\n \n \n6,038,505\n \n \n \n(748,009\n)\n \n \n358,357\n \n \n \n358,357\n \n\nBALANCE, December 31, 2023\n \n \n1,342,999\n \n \n$\n13\n \n \n$\n(1,184,676\n)\n \n$\n83,383,062\n \n \n$\n—\n \n \n$\n(24,604,441\n)\n \n$\n(1,456\n)\n \n$\n—\n \n \n$\n57,592,502\n \n\nNet loss attributable to Infobird Co., Ltd\n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n(2,099,037\n)\n \n \n—\n \n \n \n—\n \n \n \n(2,099,037\n)\n\nNet loss attributable to non-controlling interests\n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n(1,458\n)\n \n \n(1,458\n)\n\nReceived subscription receivable\n \n \n—\n \n \n \n—\n \n \n \n1,184,676\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n1,184,676\n \n\nIssued ordinary shares due to the commitment\n \n \n58,975\n \n \n \n1\n \n \n \n—\n \n \n \n(1\n)\n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n\nIssued ordinary shares under F3, net of issuance costs\n \n \n585,000\n \n \n \n6\n \n \n \n—\n \n \n \n4,512,714\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n4,512,720\n \n\nCB convert to ordinary shares, net of issuance costs\n \n \n3,470,000\n \n \n \n35\n \n \n \n—\n \n \n \n3,643,465\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n3,643,500\n \n\nForeign currency translation adjustment\n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n(62,178\n)\n \n \n(2,136\n)\n \n \n(64,314\n)\n\nNon-controlling interest from acquisition\n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n2,033,128\n \n \n \n2,033,128\n \n\nBALANCE, December 31, 2024\n \n \n5,456,974\n \n \n$\n55\n \n \n$\n—\n \n \n$\n91,539,240\n \n \n$\n—\n \n \n$\n(26,703,478\n)\n \n$\n(63,634\n)\n \n$\n2,029,534\n \n \n$\n66,801,717\n \n\nNet loss\nattributable to Infobird Co., Ltd (Restated)\n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n(52,072,038\n)\n \n \n—\n \n \n \n—\n \n \n \n(52,072,038\n)\n\nNet loss\nattributable to non-controlling interests (Restated)\n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n(1,553,058\n)\n \n \n(1,553,058\n)\n\nCB convert to ordinary shares, net of issuance costs\n \n \n2,731,600\n \n \n \n27\n \n \n \n—\n \n \n \n3,360,114\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n3,360,141\n \n\nForeign currency\ntranslation adjustment (Restated)\n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n1,612,026\n \n \n \n50,769\n \n \n \n1,662,795\n \n\nBALANCE, December 31, 2025 (Restated)\n \n \n8,188,574\n \n \n \n82\n \n \n \n—\n \n \n \n94,899,354\n \n \n \n—\n \n \n \n(78,775,516\n)\n \n \n1,548,392\n \n \n \n527,245\n \n \n \n18,199,557\n \n\n  \n\nThe accompanying notes are an integral part of these\nconsolidated financial statements.\n\n \n\nF-6\n\n \n\n \n\n** INFOBIRD CO., LTD AND SUBSIDIARIES\nCONSOLIDATED STATEMENTS OF CASH FLOWS**\n\n \n\n****\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n \n \nFor the Years Ended\n\n \n \nDecember 31,\n \nDecember 31,\n \nDecember 31,\n\n \n \n2025\n \n2024\n \n2023\n\n \n \n (Restated)\n \n \n \n \n\n \n \n \n \n \n \n \n\nCASH FLOWS FROM OPERATING ACTIVITIES:\n \n \n \n \n \n \n \n \n \n \n \n \n\nNet loss\n \n$\n(53,625,096\n)\n \n$\n(2,100,495\n)\n \n$\n(2,868,157\n)\n\nNet profit from discontinued operations\n \n \n—\n \n \n \n—\n \n \n \n18,570,629\n \n\nNet loss from continuing operations\n \n \n(53,625,096\n)\n \n \n(2,100,495\n)\n \n \n(21,438,786\n)\n\nAdjustments to reconcile net loss to net cash provided\nby operating activities:\n \n \n \n \n \n \n \n \n \n \n \n \n\nImpairment of goodwill\n \n \n51,186,782\n \n \n \n—\n \n \n \n—\n \n\n Depreciation and amortization\n \n \n173,971\n \n \n \n75,985\n \n \n \n—\n \n\n Right-of-use assets depreciation\n \n \n238,559\n \n \n \n37,025\n \n \n \n—\n \n\nGain of investment\n \n \n—\n \n \n \n—\n \n \n \n(84,634\n)\n\nInterest income\n \n \n—\n \n \n \n(169,726\n)\n \n \n—\n \n\nAllowance for (recovery from) expected credit losses\n \n \n(42,966\n)\n \n \n—\n \n \n \n19,520,843\n \n\nImputed interest expense\n \n \n504,021\n \n \n \n546,525\n \n \n \n736,941\n \n\nChange in operating assets and liabilities\n \n \n \n \n \n \n \n \n \n \n \n \n\nAccounts receivable\n \n \n602,031\n \n \n \n(83,703\n)\n \n \n(180,000\n)\n\nNotes receivables\n \n \n424,654\n \n \n \n—\n \n \n \n—\n \n\nOther receivables\n \n \n(92,549\n)\n \n \n4,892,315\n \n \n \n(323,235\n)\n\nDue from a related party\n \n \n251,175\n \n \n \n—\n \n \n \n—\n \n\nPrepayments\n \n \n(52,629\n)\n \n \n(26,539\n)\n \n \n(10,367\n)\n\nAccounts payable\n \n \n397,399\n \n \n \n95,838\n \n \n \n—\n \n\nOther payables and accrued liabilities\n \n \n(87,381\n)\n \n \n55,226\n \n \n \n61,846\n \n\nContract liabilities\n \n \n(28,611\n)\n \n \n(72,766\n)\n \n \n—\n \n\nTaxes payable\n \n \n(130,663\n)\n \n \n38,386\n \n \n \n583\n \n\nLease liabilities\n \n \n(240,431\n)\n \n \n(36,183\n)\n \n \n—\n \n\nDue from discontinued operations\n \n \n—\n \n \n \n—\n \n \n \n(3,618,253\n)\n\nNet cash (used in) provided by operating activities from\ncontinuing operations\n \n \n(521,734\n)\n \n \n3,251,888\n \n \n \n(5,335,062\n)\n\nNet cash provided by operating activities from discontinued\noperations\n \n \n—\n \n \n \n—\n \n \n \n2,615,101\n \n\nNet cash (used in) provided by operating activities\n \n \n(521,734\n)\n \n \n3,251,888\n \n \n \n(2,719,961\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nCASH FLOWS FROM INVESTING ACTIVITIES:\n \n \n \n \n \n \n \n \n \n \n \n \n\nCash deposit in escrow account\n \n \n—\n \n \n \n(5,114,000\n)\n \n \n(47,387,762\n)\n\nCash received from escrow account\n \n \n—\n \n \n \n5,000,000\n \n \n \n—\n \n\nLoan to third party\n \n \n—\n \n \n \n(7,500,000\n)\n \n \n—\n \n\nCash proceeds from acquisition Pure Tech\n \n \n—\n \n \n \n4,212,977\n \n \n \n—\n \n\nAcquisitions of property, plant and equipment\n \n \n—\n \n \n \n(768,803\n)\n \n \n—\n \n\nLong-term investment in equity\n \n \n—\n \n \n \n(100,060\n)\n \n \n—\n \n\nNet cash used in investing activities from continuing\noperations\n \n \n—\n \n \n \n(4,269,886\n)\n \n \n(47,387,762\n)\n\nNet cash provided by investing activities from discontinued\noperations\n \n \n—\n \n \n \n—\n \n \n \n14,054\n \n\nNet cash used in investing activities\n \n \n—\n \n \n \n(4,269,886\n)\n \n \n(47,373,708\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nCASH FLOWS FROM FINANCING ACTIVITIES:\n \n \n \n \n \n \n \n \n \n \n \n \n\nNet proceeds from issuance of common stock under F3\n \n \n—\n \n \n \n5,697,396\n \n \n \n49,522,314\n \n\nNet proceeds from issuance of convertible bonds\n \n \n—\n \n \n \n—\n \n \n \n2,947,762\n \n\nNet proceeds from short-term loans\n \n \n645,024\n \n \n \n—\n \n \n \n—\n \n\nRefunds from escrow\n \n \n—\n \n \n \n—\n \n \n \n96,932\n \n\nNet cash provided by financing activities from continuing\noperations\n \n \n645,024\n \n \n \n5,697,396\n \n \n \n52,567,008\n \n\nNet cash used in financing activities from discontinued\noperations\n \n \n—\n \n \n \n—\n \n \n \n(2,997,269\n)\n\nNet cash provided by financing activities\n \n \n645,024\n \n \n \n5,697,396\n \n \n \n49,569,739\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nEFFECT OF EXCHANGE RATE CHANGES\n \n \n296,302\n \n \n \n(38,332\n)\n \n \n(28,715\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nNET CHANGE IN CASH\n \n \n419,592\n \n \n \n4,641,066\n \n \n \n(552,645\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nCASH, beginning of year\n \n \n4,693,725\n \n \n \n52,659\n \n \n \n1,038,819\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nCASH, end of year\n \n$\n5,113,317\n \n \n$\n4,693,725\n \n \n$\n486,174\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nLESS: CASH, CASH EQUIVALENTS AND RESTRICTED CASH FROM\nDISCONTINUED OPERATIONS\n \n \n—\n \n \n \n—\n \n \n \n433,515\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nCASH, CASH EQUIVALENTS AND RESTRICTED CASH FROM CONTINUING\nOPERATIONS\n \n$\n5,113,317\n \n \n$\n4,693,725\n \n \n$\n52,659\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nNON-CASH INVESTING AND FINANCING ACTIVITIES:\n \n \n \n \n \n \n \n \n \n \n \n \n\nThird parties paid for consideration for Pure Tech\n \n$\n—\n \n \n$\n59,784,723\n \n \n$\n—\n \n\nEscrow account transit to Pure Media before acquiring\n \n$\n—\n \n \n$\n510,000\n \n \n$\n—\n \n\nAcquisition of Pure Tech by issuing convertible promissory\nnotes\n \n$\n—\n \n \n$\n5,953,095\n \n \n$\n—\n \n\n Convertible promissory notes converted to ordinary\nshares\n \n$ \n3,360,141\n \n \n$ \n\n3,643,500\n\n \n \n$ \n—\n \n\n \n\nThe accompanying notes are an integral part of these\nconsolidated financial statements.\n\n \n\nF-7\n\n \n\n \n\n**INFOBIRD CO., LTD AND SUBSIDIARIES \nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(In U.S. dollars, unless stated otherwise)**\n\n \n\n**Note 1 – Nature of business and organization**\n\n \n\nInfobird Co., Ltd (“Infobird Cayman” or\nthe “Company”) is a holding company incorporated on March 26, 2020 under the laws of the Cayman Islands. The Company has no\nsubstantive operations other than holding all of the outstanding share capital of Infobird International Limited (“Infobird HK”)\nestablished under the laws of Hong Kong on April 21, 2020, Lightyear Technology Pte. Ltd. (“Lightyear Technology”), no substantive\noperations, established under the laws of Singapore on July 25, 2023, and Inforbird Technologies Limited (“Inforbird Technologies”)\nestablished under the laws of Hong Kong on July 12, 2023, and 97% of the outstanding share capital of Pure Tech Global Limited (“Pure\nTech”) established under the laws of the British Virgin Islands (“BVI”) on February 5, 2024.\n\n \n\nInfobird HK is also a holding company holding all\nof the outstanding equity of Infobird Digital Technology (Beijing) Co., Ltd (“Infobird WFOE”) which was established on May\n20, 2020 under the laws of the People’s Republic of China (“PRC” or “China”). The Company disposed Infobird\nHK and Infobird WFOE on August 11, 2023.\n\n \n\nThe Company, through its variable interest entity\n(“VIE”), Beijing Infobird Software Co., Ltd (“Infobird Beijing”), a PRC limited liability company established\non October 26, 2001, and through its subsidiaries, is a software-as-a-service (“SaaS”) provider of innovative AI-powered (artificial\nintelligence enabled) customer engagement solutions in China. The Company primarily provides standard and customized customer relationship\nmanagement cloud-based services, such as SaaS, and business process outsourcing (“BPO”), services to its clients. The Company\ndisposed Infobird Beijing on August 11, 2023.\n\n \n\nOn October 17, 2013, Infobird Beijing established\nits 90.18% owned subsidiary, Guiyang Infobird Cloud Computing Co., Ltd (“Infobird Guiyang”), a PRC limited liability company.\nInfobird Guiyang also engages in software development and mainly provides BPO services to its customers. On June 20, 2012, Infobird Beijing\nestablished a 99.95% owned subsidiary, Anhui Xinlijia E-commerce Co., Ltd (formerly known as Anhui Infobird Software Information Technology\nCo., Ltd) (“Infobird Anhui”), a PRC limited liability company. Infobird Anhui also engages in software development and mainly\nprovides cloud services and technology solutions to customers. The Company disposed Infobird Guiyang and Infobird Anhui on August 11,\n2023.\n\n \n\nOn May 27, 2020, Infobird Cayman completed a reorganization\nof entities under common control of its then existing shareholders, who collectively owned all of the equity interests of Infobird Cayman\nprior to the reorganization. Infobird Cayman and Infobird HK were established as the holding companies of Infobird WFOE. Infobird WFOE\nis the primary beneficiary for accounting purposes of Infobird Beijing and its subsidiaries. All of these entities are under common control\nwhich results in the consolidation of Infobird Beijing and subsidiaries which have been accounted for as a reorganization of entities\nunder common control at carrying value. Infobird WFOE is deemed to have a controlling financial interest and be the primary beneficiary\nfor accounting purposes of Infobird Beijing because it has both of the following characteristics: (1) the power to direct activities\nat Infobird Beijing that most significantly impact such entity’s economic performance, and (2) the right to receive benefits from\nInfobird Beijing that could potentially be significant to such entity. The consolidated financial statements are prepared on the basis\nas if the reorganization became effective as of the beginning of the first period presented in the accompanying consolidated financial\nstatements of Infobird Cayman.\n\n \n\nOn December\n2, 2021, Infobird Beijing completed its 51% acquisition of Shanghai Qishuo Technology Inc. (“Shanghai Qishuo”), a PRC limited\nliability company and a SaaS provider of big data analysis to retail stores aimed at operation improvement, for approximately $1.3 million\n(RMB 8.6 million). Shanghai Qishuo is a fast-growing provider of consumer product and retail store digitalization solutions. The\nCompany disposed Shanghai Qishuo on August 11, 2023.\n\n \n\nOn May 31, 2022,\nInfobird Anhui completed its 100% acquisition of Hefei Weiao Information Technology Co., Ltd (“Anhui Weiao”), a PRC limited\nliability company owned VATS License with the business scope of “Nationwide Domestic Call Center Services” to\nimprove our cloud-based services. The Company disposed Anhui Weiao on August 11, 2023.\n\n \n\nF-8\n\n \n\n \n\nOn July 14, 2023, Infobird Cayman completed its 100%\nacquisition of Inforbird Technologies from an individual. Inforbird Technologies primarily provides standard and customized customer relationship\nmanagement cloud-based services, such as SaaS, business process outsourcing (“BPO”), and AI software development services\nto its clients outside of the Mainland of China.\n\n \n\nOn July 6, 2023, Infobird HK established a 100% owned\nsubsidiary, Guangnian Zhiyuan (Beijing) Technology Co., Ltd (“Guangnian Zhiyuan”), a PRC limited liability company primarily\nprovides standard and customized customer relationship management cloud-based services, such as SaaS, business process outsourcing (“BPO”),\nand AI software development services to its clients. Infobird HK transferred its 100% interest of Guangnian Zhiyuan to Inforbird Technologies\non August 1, 2023.\n\n \n\nOn July 15, 2024, Guangnian Zhiyuan completed its\n100% acquisition of Beijing Suowangda Technology Development Co., Ltd (“Beijing Suowangda”), a PRC limited liability company\nestablished on June 13, 2010 from individuals. Beijing Suowangda is primarily a cost center.\n\n \n\nOn November 30, 2024, Infobird Cayman completed its\n97% acquisition of Pure Tech, which is a holding company holding all of the outstanding equity of Pure Media Limited (“Pure Media”).\nPure Media was established on March 14, 2024 under the laws of Hong Kong.\n\n \n\nPure Media, through its VIEs, Pinmu Century (Beijing)\nMarketing Technology Co., Ltd (“Pinmu Century”), a PRC limited liability company established on April 17, 2012, and its subsidiaries,\nand Zhenxi Brand Marketing Consulting (Shanghai) Centre (“Zhenxi Brand”), a PRC wholly owned enterprise established on July\n4, 2019, and its subsidiaries, provides digital advertising and marketing campaign services to its clients in China.\n\n \n\nThe accompanying consolidated financial statements\nreflect the activities of Infobird Cayman and each of the following entities\n\n \n\nSchedule of consolidated financial statements\n \n \n \n \n\n**Name**\n \n**Background**\n \n**Ownership**\n\nInforbird Technologies Limited (“Inforbird Technologies”)\n \n● A Hong Kong company\n\n● Incorporated on July 12, 2023\n\n● Software developing that provides software as a service (SaaS)\n \n100% owned by Infobird Co., Ltd\n\nLightyear Technology Pte. Ltd. (“Lightyear Technology”)\n \n● A Singapore company\n\n● Incorporated on July 25, 2023\n\n● A holding company\n \n100% owned by Infobird Co., Ltd\n\nGuangnian Zhiyuan (Beijing) Technology Co., Ltd (“Guangnian Zhiyuan”)\n \n● A PRC company\n\n● Incorporated on July 6, 2023\n\n● Registered capital of $1,379,310 (RMB 10,000,000)\n\n● Software developing that provides software as a service (SaaS)\n \n100% owned by Inforbird Technologies\n\nBeijing Suowangda Technology Development Co., Ltd\n\n \n\n(“Beijing Suowangda”)\n\n \n\n● A PRC limited liability company\n\n● Incorporated on June 13, 2010\n\n● Registered capital of $68,794 (RMB 470,000)\n\n● A cost center\n\n \n100% owned by Guangnian Zhiyuan\n\nPure Tech Global Limited\n\n \n\n(“Pure Tech”)\n\n \n● A BVI company\n\n● Incorporated on February 5, 2024\n\n●A holding company\n \n\n97% owned by\n\n \n\nInfobird Co., Ltd\n\nPure Media Limited\n\n \n\n(“Pure Media”)\n\n \n● A Hong Kong company\n\n● Incorporated on March 14, 2024\n\n●A holding company\n \n\n100% owned by\n\n \n\nPure Tech\n\nPinmu Century (Beijing) Marketing Technology Co., Ltd (“Pinmu Century”)\n \n\n● A PRC limited liability company\n\n● Incorporated on April 17, 2012\n\n● Registered capital of $1,581,243 (RMB 10,000,000)\n\n● Digital advertising and marketing campaign service\n\n \nVIE of Pure Media\n\nZhenxi Brand Marketing Consulting (Shanghai) Centre (“Zhenxi Brand”)\n \n\n● A PRC wholly owned enterprise\n\n● Incorporated on July 4, 2019\n\n● Digital advertising and marketing campaign service\n\n \nVIE of Pure Media\n\n \n\nF-9\n\n \n\n \n\nContractual Arrangements Between Pure Media, and\nPinmu Century and Zhenxi Brand\n\n \n\nDue to legal restrictions on foreign ownership and\ninvestment in, among other areas, the operation of internet public information in China, including digital advertising and marketing campaign\non internet, the Company operates its businesses in which foreign investment is restricted or prohibited in the PRC through certain PRC\ndomestic companies. Neither the Company nor its subsidiaries own any equity interest in Pinmu Century and Zhenxi Brand. As such, Pinmu\nCentury and Zhenxi Brand are controlled through contractual arrangements in lieu of direct equity ownership by the Company or any of its\nsubsidiaries. Such contractual arrangements consist of a series of three agreements, along with shareholders’ powers of attorney\n(“POAs”) and spousal consent letters (collectively the “Contractual Arrangements”, which were signed on June 10,\n2024 with Pinmu Century and signed on July 31, 2024 with Zhenxi Brand).\n\n \n\nThe significant terms of the Contractual Arrangements\nare as follows:\n\n \n\n*Exclusive Business Cooperation Agreement*\n\n \n\nPursuant to the exclusive business cooperation agreement\nbetween Pure Media and Pinmu Century and Zhenxi Brand, Pure Media has the exclusive right to provide Pinmu Century and Zhenxi Brand with\ntechnical support services, consulting services and other services, including technical support and training, business management consultation,\nconsultation, collection and research of technology and market information, marketing and promotion services, customer order management\nand customer services, lease equipment or properties, provide legitimate rights to use software license, provide deployment, maintenances\nand upgrade of software, design installation, daily management, maintenance and updating network system, hardware and database, and other\nservices requested by Pinmu Century and Zhenxi Brand from time to time to the extent permitted under PRC law. In exchange, Pure Media\nis entitled to a service fee that equals to all of the consolidated net income. The service fee may be adjusted by Pure Media based on\nthe actual scope of services rendered by Pure Media and the operational needs and expanding demands of Pinmu Century and Zhenxi Brand.\nPursuant to the exclusive business cooperation agreement, the service fees may be adjusted based on the actual scope of services rendered\nby Pure Media and the operational needs of Pinmu Century and Zhenxi Brand.\n\n \n\nThe exclusive business cooperation agreement remains\nin effect unless terminated in accordance with the following provision of the agreement or terminated in writing by Pure Media.\n\n \n\nDuring the term of the exclusive business cooperation\nagreement, Pure Media and Pinmu Century and Zhenxi Brand shall renew the operation term prior to the expiration thereof so as to enable\nthe exclusive business cooperation agreement to remain effective. The exclusive business cooperation agreement shall be terminated upon\nthe expiration of the operation term of either Pure Media or Pinmu Century, or Zhenxi Brand if the application for renewal of the operation\nterm is not approved by relevant government authorities. If an application for renewal of the operation term is not approved, according\nto the PRC Company Law, the expiration of the operation term may lead to the dissolution and cancellation of such PRC company.\n\n \n\n*Exclusive Option Agreements*\n\n \n\nPursuant to the exclusive option agreements among\nPure Media, Pinmu Century and the shareholders who collectively owned all of Pinmu Century, Zhenxi Brand and the shareholders who collectively\nowned all of Zhenxi Brand, such shareholders jointly and severally grant Pure Media an option to purchase their equity interests in Pinmu\nCentury and Zhenxi Brand. The purchase price shall be the lowest price then permitted under applicable PRC laws. Pure Media or its designated\nperson may exercise such option at any time to purchase all or part of the equity interests in Pinmu Century and Zhenxi Brand until it\nhas acquired all equity interests of Pinmu Century and Zhenxi Brand, which is irrevocable during the term of the agreements.\n\n \n\nThe exclusive option agreements remain in effect until\nall equity interest held by shareholders in Pinmu Century and Zhenxi Brand has been transferred or assigned to Pure Media and/or any other\nperson designated by the Pure Media in accordance with such agreement.\n\n \n\nF-10\n\n \n\n \n\n*Equity Interest Pledge Agreements*\n\n \n\nPursuant to the equity interest pledge agreements,\namong Pure Media, Pinmu Century and the shareholders who collectively owned all of Pinmu Century, Zhenxi Brand and the shareholders who\ncollectively owned all of Zhenxi Brand, such shareholders pledge all of the equity interests in Pinmu Century and Zhenxi Brand to Pure\nMedia as collateral to secure the obligations of Pinmu Century and Zhenxi Brand under the exclusive business cooperation agreement and\nexclusive option agreements. These shareholders are prohibited from transferring the pledged equity interests without the prior consent\nof Pure Media unless transferring the equity interests to Pure Media or its designated person in accordance to the exclusive option agreements.\n\n \n\n*Shareholders’ Powers of Attorney (“POAs”)*\n\n \n\nPursuant to the shareholders’ POAs, the shareholders\nof Pinmu Century and Zhenxi Brand give Pure Media an irrevocable proxy to act on their behalf on all matters pertaining to Pinmu Century\nand Zhenxi Brand and to exercise all of their rights as shareholders of Pinmu Century and Zhenxi Brand, including the (i) right to attend\nshareholders meeting; (ii) to exercise voting rights and all of the other rights including but not limited to the sale or transfer or\npledge or disposition of the shares held in part or in whole; and (iii) designate and appoint on behalf of the shareholder the legal representative,\nthe directors, supervisors, the chief executive officer and other senior management members of Pinmu Century and Zhenxi Brand, and to\nsign transfer documents and any other documents in relation to the fulfillment of the obligations under the exclusive option agreements\nand the equity interest pledge agreements. The shareholders’ POAs shall remain in effect while the shareholders of Pinmu Century\nhold the equity interests in Pinmu Century and Zhenxi Brand.\n\n \n\n*Spousal Consent Letters*\n\n \n\nPursuant to the spousal consent letters, the spouses\nof the shareholders of Pinmu Century and Zhenxi Brand commit that they have no right to make any assertions in connection with the equity\ninterests of Pinmu Century and Zhenxi Brand, which are held by the shareholders. In the event that the spouses obtain any equity interests\nof Pinmu Century and Zhenxi Brand, which are held by the shareholders, for any reasons, the spouses of the shareholders shall be bound\nby the exclusive option agreement, the equity interest pledge agreement, the shareholder POA and the exclusive business cooperation agreement\nand comply with the obligations thereunder as a shareholder of Pinmu Century and Zhenxi Brand. The letters are irrevocable and shall not\nbe withdrawn without the consent of Pure Media.\n\n \n\nBased on the foregoing contractual arrangements, which\ngrant Pure Media effective control of Pinmu Century, Zhenxi Brand, and subsidiaries and enable Pure Media to receive all of their expected\nresidual returns, the Company accounts for Pinmu Century and Zhenxi Brand as VIEs. Accordingly, the Company consolidates the accounts\nof Pinmu Century, Zhenxi Brand and subsidiaries for the periods presented herein, in accordance with Regulation S-X-3A-02 promulgated\nby the Securities Exchange Commission (“SEC”), and Accounting Standards Codification (“ASC”) 810-10, Consolidation.\n\n \n\n**Note 2 – Summary of significant accounting policies**\n\n \n\nLiquidity\n\n \n\nIn assessing liquidity, the Company monitors and analyzes\ncash on-hand and operating expenditure commitments. The Company’s liquidity needs are to meet working capital requirements and operating\nexpense obligations.\n\n \n\nHistorically, the Company finances its operations\nthrough internally generated cash, short-term loans and payable from related parties and equity financing. As of December 31, 2025, the\nCompany’s working capital was approximately $4.73 million. The Company will not require any fund over the next twelve months upon\nissuance of these audited consolidated financial statements to operate at its current level, either from operating activities or funding.\n\n \n\nF-11\n\n \n\n \n\nIf the Company is unable to realize its assets within\nthe normal operating cycle of a twelve (12) month period, the Company may have to consider supplementing its available sources of funds\nthrough the following sources:\n\n \n\n \n●\nother available sources of financing from PRC banks and other financial institutions;\n\n \n \n \n\n \n●\nfinancial support from the Company’s related parties and shareholders; and\n\n \n \n \n\n \n●\nIssuance of convertible debt.\n\n \n\nBased on the above considerations, the Company’s\nmanagement is of the opinion that it has sufficient funds to meet the Company’s working capital requirements and debt obligations\nas they become due over the next twelve (12) months.\n\n \n\nBasis of presentation\n\n \n\nThe accompanying consolidated financial statements\nhave been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”)\nfor information pursuant to the rules and regulations of the U.S. Securities and Exchange Commission.\n\n \n\nPrinciples of consolidation\n\n \n\nThe consolidated financial statements include the\nfinancial statements of the Company and its subsidiaries. All significant intercompany transactions and balances have been eliminated\nin consolidation.\n\n \n\nUse of estimates and assumptions\n\n \n\nThe preparation of consolidated financial statements\nin conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities\nand disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts\nof revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated\nfinancial statements mainly include, but are not limited to, impairment assessment of goodwill, determination of incremental borrowing\nrate for leases, valuation allowance for deferred tax assets, allowance for credit losses, standalone selling price of each distinct performance\nobligation in revenue recognition.\n\n \n\nManagement bases the estimates on historical experience\nand on various other assumptions as discussed elsewhere to the consolidated financial statements that are believed to be reasonable, the\nresults of which form the basis for making judgments about the carrying values of assets and liabilities. On an ongoing basis, management\nevaluates its estimates based on information that is currently available. Changes in circumstances, facts and experience may cause the\nCompany to revise its estimates. Changes in estimates are recorded in the period in which they become known. Actual results could materially\ndiffer from these estimates.\n\n \n\nForeign currency translation and transaction\n\n \n\nThe reporting currency of the Company is the U.S.\ndollar. The Company in China conducts its businesses in the local currency, Renminbi (RMB), as its functional currency. Assets and liabilities\nare translated at the noon buying rate in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal\nReserve Bank of New York at the end of the period. The statement of income accounts are translated at the average translation rates and\nthe equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated\nother comprehensive income (loss). Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated\nin a currency other than the functional currency are included in the results of operations as incurred.\n\n \n\nF-12\n\n \n\n \n\nTranslation adjustments included in accumulated other\ncomprehensive income (loss) amounted to $5,019,336 and $(63,634) as of December 31, 2025 and 2024, respectively. The balance sheet amounts\nwith the exception of equity at December 31, 2025 and 2024 were translated at 6.9931 RMB and 7.2993 RMB to $1, respectively. The equity\naccounts were stated at their historical rate. The average translation rates applied to statement of continuing operations and comprehensive\nloss as of December 31, 2025, 2024 and 2023 were 7.1875 RMB, 7.1957 RMB and 7.2346 RMB to $1, respectively. Cash flows are also translated\nat average translation rates for the periods, therefore, amounts reported on the statements of cash flows will not necessarily agree with\nchanges in the corresponding balances on the consolidated balance sheets.\n\n \n\nDiscontinued operation\n\n \n\nIn accordance with ASU No. 2014-08, Reporting Discontinued\nOperations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of\nan entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a\nmajor effect on an entity’s operations and financial results when the components of an entity meet the criteria in paragraph 205-20-45-1E\nto be classified as discontinued operations. When all of the criteria to be classified as discontinued operations are met, including management\nhaving the authority to approve the action and committing to a plan to sell the entity or the components, the major current assets, other\nassets, current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from\nthe balances of the continuing operations. At the same time, the results of discontinued operations, less applicable income taxes (benefit),\nshall be reported as components of net income (loss) separate from the net income (loss) of continuing operations in accordance with ASC\n205-20-45. See Note 6 – Discontinued operations.\n\n \n\nCash\n\n \n\nCash consists of cash on hand, demand deposits and\ntime deposits placed with banks or other financial institutions and have original maturities of less than three (3) months.\n\n \n\nAccounts receivable, and allowance for expected credit losses\n\n \n\nAccounts receivable are stated at the historical carrying amount net of\nallowance for expected credit losses.\n\n \n\nAccounts receivable include trade accounts due from\ncustomers. Accounts are considered overdue after thirty (30) days from payment due date. The Company adopted ASU No. 2016-13, “Financial\nInstruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments” on January 1, 2023 using a\nmodified retrospective approach. The Company also adopted this guidance to notes receivables, other receivables, due from related parties,\ndue from discontinued operations and escrows. To estimate expected credit losses, the Company has identified the relevant risk characteristics\nof its customers and the related receivables. The Company considers the past collection experience, current economic conditions, future\neconomic conditions (external data and macroeconomic factors) and changes in the Company’s customer collection trends. The allowance\nfor expected credit losses and corresponding receivables were written off when they are determined to be uncollectible.\n\n \n\nNotes receivables and allowance for expected credit\nlosses\n\n \n\nNotes receivables primarily include bank acceptance\nnotes and commercial acceptance notes received from customers. The notes are primarily six months from the date of issuance. Notes receivables\nare reviewed periodically to determine whether its carrying value has become impaired. The Company uses credit loss method to estimate\nthe allowance for the questionable balances. The carrying value of notes receivable is reduced by an allowance of credit losses.\n\n \n\nOther receivables and allowance for expected credit losses\n\n \n\nOther receivables primarily include the receivables\nfrom sales of our short-term investment to the third party, and others, other receivables is short-term in nature. Other receivables is\nreviewed periodically to determine whether its carrying value has become impaired. The Company uses credit loss method to estimate the\nallowance for the questionable balances.\n\n \n\nF-13\n\n \n\n \n\nShort term investments\n\n \n\nShort-term investments are investments in\nwealth management product with underlying in bonds offered by private entities and other equity products. The investments can be\nredeemed upon three months’ notice and their carrying values approximate their fair values. The gain (loss) from sale of any\ninvestments and fair value change are recognized in the statements of income and comprehensive income. Gain (loss) from short term\ninvestments for the years ended December 31, 2025, 2024 and 2023 amounted to 0 nil, 0\nnil, and $84,634, respectively.\n\n \n\nProperty and equipment, net\n\n \n\nProperty and equipment,net are stated at cost less\naccumulated depreciation, and depreciated on a straight-line basis over the estimated useful lives of the assets: 5 years for transportation\nequipment. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. The cost\nof repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed\nof, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income/loss\nin the year of disposition.\n\n \n\nLease\n\n \n\nThe Company applies ASC Topic 842, Leases, and determines\nif an arrangement is a lease at contract inception. Operating leases are primarily presented as right-of-use (“ROU”) assets,\nlease liabilities - current and lease liabilities - noncurrent on its consolidated balance sheets.\n\n \n\nROU assets represent the Company’s right to\nuse an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising\nfrom the lease. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease\nterm. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that\nit will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company uses its incremental\nborrowing rate, which it calculates based on the credit quality of the Company and by comparing interest rates available in the market\nfor similar borrowings, and adjusting this amount based on the impact of collateral over the term of each lease. Lease expense for lease\npayments is recognized on a straight-line basis over the lease term.\n\n \n\nFor operating leases with a term of one year or less,\nthe Company has elected to not recognize a lease liability or ROU asset on its consolidated balance sheet. Instead, it recognizes the\nlease payments as expense on a straight-line basis over the lease term. Short-term lease costs are immaterial to its consolidated statements\nof operations and comprehensive income (loss) and cash flow.\n\n \n\nGoodwill\n\n \n\nGoodwill represents the excess of the purchase price\nover the fair value of the identifiable assets and liabilities acquired in a business combination. In accordance with ASC Topic 350, recorded\ngoodwill amounts are not amortized but rather assessed for impairment annually or more frequently if events or changes in circumstances\nindicate that an impairment may exist, applying a fair-value-based test.\n\n \n\nWhen performing the annual impairment test, the Company\nhas the option of performing a qualitative or quantitative assessment to determine if an impairment has occurred. If a qualitative assessment\nindicates that it is more likely than not that the fair value of a reporting unit is less than the carrying amount, the Company would\nbe required to perform a quantitative impairment analysis for goodwill. The quantitative analysis requires a comparison of fair value\nof the reporting unit to the carrying value, including goodwill. If the carrying value of the reporting unit exceeds its fair value, an\nimpairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit.\nThe fair value is generally determined using the income approach.\n\n \n\nF-14\n\n \n\n \n\nThe Company identified indicators that the carrying\nvalue of the reporting unit may not be recoverable and therefore performed a quantitative goodwill impairment assessment. These indicators\nincluded:\n\n \n\n●A significant decline in expected future\nrevenue and profitability of the reporting unit compared with the assumptions utilized in the acquisition valuation;\n\n \n\n●Lower-than-expected advertising and marketing\nspending by the reporting unit's largest customers, which are primarily participants in the infant formula industry in mainland China;\n\n \n\n●Continued declines in birth rates in mainland\nChina, which negatively affected advertising demand from customers serving the infant and maternal products market;\n\n \n\n●Increased customer concentration risk and\nreduced revenue generated per customer, despite growth in the overall number of customers served; and\n\n \n\n●The need for a longer-than-anticipated\ntransition period to diversify the reporting unit's customer base into industries less affected by demographic trends.\n\n \n\nAs a result of these developments, management\nrevised its financial projections and concluded that the fair value of the reporting unit had declined below its carrying amount. Accordingly,\nthe Company recognized a goodwill impairment charge of $51,186,782 during the year ended December 31, 2025.\n\n \n\nThe Company performed\nits annual goodwill impairment test for the Pure Tech reporting unit as of December 31, 2025. The fair value of the reporting unit was\nestimated using an income approach based on a discounted cash flow (\"DCF\") analysis, which incorporates significant management\nestimates and assumptions. The significant assumptions utilized in the DCF analysis were as follows:\n\n●Weighted-average\ncost of capital (\"WACC\"): 14.5%\n\n●Terminal\ngrowth rate: 2.0%\n\n●Projected\nrevenue compound annual growth rate: 16.6% over the 5-year forecast period\n\n●Projected\nEBITDA margin in the terminal year: 14.2%\n\nBased\non the results of the impairment test, the Company recognized a goodwill impairment charge of $51,186,782 during the year ended December\n31, 2025.\n\nManagement believes\nthe assumptions used in the impairment analysis are reasonable and consistent with the assumptions that market participants would use\nin estimating the fair value of the reporting unit. However, changes in future operating results, market conditions, discount rates,\nor other valuation assumptions could result in additional impairment charges in future periods.\n\n \n\n \n\nThe Company also considered its market capitalization\nas part of its overall assessment of fair value. However, management determined that market capitalization was not the most representative\nmeasure of fair value because the Company's ordinary shares experienced limited trading volume and significant volatility during the\nperiod. In addition, the Company's market capitalization reflected factors unrelated to the operating performance of the reporting unit,\nincluding the Company's holding company structure, limited public float, and investor sentiment toward U.S.-listed China-related issuers\ngenerally. Accordingly, management placed greater reliance on the DCF analysis in determining the fair value of the reporting unit.\n\n \n\nFair value measurement\n\n \n\nThe accounting standard regarding fair value of financial\ninstruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments\nheld by the Company.\n\n \n\nThe accounting standards define fair value, establish\na three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures.\nThe three levels are defined as follow:\n\n \n\n \n●\nLevel 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.\n\n \n●\nLevel 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.\n\n \n●\nLevel 3 inputs to the valuation methodology are unobservable and significant to the fair value.\n\n \n\nFinancial assets and liabilities of the Company primarily\nconsist of cash, other receivables, accounts receivable, due from related parties, short-term loans, short-term accounts payable and other\npayables and accrued liabilities. As of December 31, 2025 and 2024, the carrying values of these financial assets and liabilities approximate\ntheir fair values due to the short-term nature.\n\n \n\nNon-controlling Interests\n\n \n\nThe Company’s non-controlling interests represent\nthe minority shareholders’ ownership interests related to the Company’s subsidiaries, including 3% for Pure Tech for the years\nended December 31, 2025 and 2024. The non-controlling interests are presented in the consolidated balance sheets, separately from equity\nattributable to the shareholders of the Company. Non-controlling interests in the results of the Company are presented on the consolidated\nstatement of operations and comprehensive loss as allocations of the total income or loss for the year between non-controlling interests\nholders and the shareholders of the Company.\n\n \n\nAll of non-controlling interests\nwere from continuing operation entities, which consist of the following:\n\n \n\nSchedule\nof noncontrolling interests\n \n \n \n \n \n \n \n \n\n \n \nDecember 31,\n \nDecember 31,\n\nNon-controlling\n \n2025\n \n2024\n\n \n \n (Restated)\n \n \n\n \n \n \n \n \n\nPure Tech\n \n$\n527,245\n \n \n$\n2,033,128\n \n\nTotal\n \n$\n527,245\n \n \n$\n2,033,128\n \n\n** **\n\n****\n\nRevenue recognition\n\n \n\nThe Company recognized its revenue under Accounting\nStandards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606). The Company recognizes revenue which represents\nthe transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled\nin such exchange. The Company identifies contractual performance obligations and determines whether revenue should be recognized at a\npoint in time or over time, based on when control of goods and services are provided to customers.\n\n \n\nF-15\n\n \n\n \n\nThe Company’s contracts with customers generally\ndo not include a general right of return relative to the delivered products or services.\n\n \n\nThe Company applied practical expedient when sales\ntaxes were collected from customers, meaning sales tax is recorded net of revenue, instead of cost of revenue, which are subsequently\nremitted to governmental authorities and are excluded from the transaction price.\n\n \n\nRevenues - continuing operations are generated from\nbusiness integration solution services revenue and digital advertising and marketing campaign services revenue.\n\n \n\n*(1) Business Integration Solution Services Revenue*\n\n \n\nThe Company generates revenue from development and\nsale of software license for customized software developed per customers’ specifications. Contract terms from each software development\ncontract generally do not contain significant financing components or variable consideration.\n\n \n\nCustomized software is software developed catering\nto the needs of specific customers who require initial customization or development of new solutions before subscription to our cloud-based\nservices. For example, the Company has entered into a two-stage agreement to provide services to a municipal government agency to\nfirst develop an information technology system and customize and configure its cloud call center into the IT system, and then provide\ncloud-based services and charge subscription fees. Because the customized software the Company developed are to solve certain business\npain points in a certain scenario within or across industries, once developed, it plans to further apply them in serving other customers\nthat share similar needs and business models. The Company aims to replicate its initial customization and development and achieve economies\nof scale after it delivers its products to more customers within the same industry. Contract terms are generally less than one year. The\ndesign, development, and installation of the customized software is considered as one performance obligation as these promises are not\nseparately identifiable as the customers do not obtain benefits from these services on its own. The Company’s software development\nservice contracts are generally recognized at a point in time when customer accepted the customized software with satisfactory testing\nresult.\n\n \n\nThe Company generally provides limited warranties\nfor work performed under its business integration solution contracts. At the time a sale is recognized, the Company records estimated\nfuture warranty costs under ASC 460. Such estimated costs for warranties are estimated at completion and these warranties are not service\nwarranties separately sold by the Company. Generally, the estimated claim rates of warranty are based on actual warranty experience or\nCompany’s best estimate. As of December 31, 2025 and 2024, no accrued warranty liabilities were deemed necessary for both\ncontinuing and discontinued operations.\n\n \n\n*(2) Digital Advertising And Marketing Campaign Services Revenue*\n\n \n\nThe Company generates its digital advertising and\nmarketing campaign services revenue from developing and executing advertising plan depending on the customers’ needs. The provision\nof the digital advertising and marketing campaign services revenue is considered as one performance obligation as the service provided\nis distinct within the context of the contract and the customer can obtain benefit from it. Therefore, the service revenue is recognized\nbased on the service performed over the contractual period.\n\n \n\nContract performance periods generally range from\none month to one year. Contracts generally do not contain significant financing components or variable consideration.\n\n \n\nRevenues - discontinued operations are generated from\nthe followings:\n\n \n\nF-16\n\n \n\n \n\n*(1) Revenue from customized cloud-based services*\n\n \n\nThe Company derives its customized cloud-based revenues\nfrom subscription services which are comprised of subscription fee from granting customers’ access to the customized SaaS, voice/data\nplan, which includes telecommunication usage such as telephone calls and messaging that our customers can subscribe for, and technical\nsupport. The provision of customized SaaS, voice/data plan and technical support is considered as one performance obligation as the services\nprovided are not distinct within the context of the contract whereas the customer can only obtain benefit when the services are provided\ntogether. The Company uses monthly utilization records based on the number of user accounts subscribed for by customers, an output measure,\nto recognize revenue over time as there is simultaneous consumption and delivery of services.\n\n \n\n*(2) Revenue from standard cloud-based services*\n\n \n\nThe Company also derives its standard cloud-based\nrevenues from subscription services which are comprised of subscription fee from granting customers access to its software through the\ninternet. The Company’s standard cloud-based solutions represent a series of services such as calling, voice recording and technical\nsupport. These services are made available to the customer continuously throughout the contractual period, however, the extent to which\nthe customer uses the services may vary at the customers’ discretion. The standard cloud-based services are considered to have\none single performance obligation. The Company uses monthly utilization records based on the number of user accounts subscribed for by\ncustomers, an output measure, to recognize revenue over time as there is simultaneous consumption and delivery of services.\n\n \n\nThe Company also enters into contracts with customers\nwhere the customers pay a fixed fee to access a fixed number of user accounts over the subscription period as specified in the contracts;\ntherefore, the customers receive and consume the benefits of the cloud services throughout the subscription period so revenue is recognized\nratably over the contractual subscription period that the services are delivered, beginning on the date the service is made available\nto the customers.\n\n \n\nContract performance periods generally are one year,\nand pursuant to the contracts, full payments are generally collected in advance, with payment to be made within three months after execution\nof the contract. Contracts generally do not contain significant financing components or variable consideration.\n\n \n\n*(3) Revenue from BPO services*\n\n \n\nThe Company provides BPO services to operate the call\ncenters for its customers. Customers using these services are not permitted to take possession of the Company’s software and the\ncontract term is for a defined period, where customers pay a monthly service fee. These services are considered as one performance obligation\nas the customers do not obtain benefit for each separate service. Revenues are recognized over time over contractual period using the\ntime elapsed output method as BPO services are provided.\n\n \n\nContract performance periods generally are one year,\nand pursuant to the contracts, full payments for several months of services are generally collected in advance. Contracts generally do\nnot contain significant financing components or variable consideration.\n\n \n\n*(4) Business Integration Solution Services Revenue*\n\n \n\nSince 2020, the Company provides business integration\nsolution services to its customers and expects to expand its customer base from such services and develop the customers to become subscribers\nto SaaS services with software upgrades and continued services once they become more familiar with the Company’s products. The services\ninclude sale of the Company’s software license or development of customized software to fit the customers’ need and sales\nof hardware integrated with the Company’s software.\n\n \n\n*(5) Revenue from software development*\n\n \n\nThe Company generates revenue from development and\nsale of software license including (1) standard software and (2) customized software developed per customers’ specifications. Contract\nterms from each software development contract generally do not contain significant financing components or variable consideration.\n\n \n\nF-17\n\n \n\n \n\nStandard software are developed and offered as standard\ncloud-based services. The Company sold the license for standard software because some customers show obvious preference of software licensing\nover software-as-a-service, for reasons such as concerns about the safety of cloud-based services and potential higher price of subscription\nin total compared with one-time on-premise fee. Therefore, as part of the Company’s sales and market strategy, it offers licenses\nfor its standard software to allow the customers to first start utilizing its products in their daily operation and then aim to evolve\nthem to become subscribers with its standard cloud-based services to enjoy benefits of software upgrades and continued services. Licenses\nfor standard software provide the customer with a right to use the software. Standard software licenses are typically made available to\ncustomers with immediate access to the software. The Company recognizes revenue for these standard software licenses at the point in time\nwhen the customer has access and thus control over the software.\n\n \n\nCustomized software is software developed catering\nto the needs of specific customers who require initial customization or development of new solutions before subscription to our cloud-based\nservices. For example, the Company has entered into a two-stage agreement to provide services to a municipal government agency to\nfirst develop an information technology system and customize and configure its cloud call center into the IT system, and then provide\ncloud-based services and charge subscription fees. Because the customized software the Company developed are to solve certain business\npain points in a certain scenario within or across industries, once developed, it plans to further apply them in serving other customers\nthat share similar needs and business models. The Company aims to replicate its initial customization and development and achieve economies\nof scale after it delivers its products to more customers within the same industry. Contract terms are generally less than one year. The\ndesign, development, and installation of the customized software is considered as one performance obligation as these promises are not\nseparately identifiable as the customers do not obtain benefits from these services on its own. The Company’s software development\nservice contracts are generally recognized at a point in time when customer accepted the customized software with satisfactory testing\nresult.\n\n \n\n*(6) Revenue from sales of hardware with software\nintegration*\n\n \n\nThe Company is responsible for providing hardware\nprocurement, software design and implementation, installation and maintenance service in order to fulfill the contract. Design, integration\nand installation of hardware and software are considered as one performance obligation, as the customer does not benefit from each individual\nservice on its own stand, but instead is benefited by the provision of these services as a whole. For contracts that the Company have\nno alternative use of the customized system without incurring significant additional costs and when the Company has right to payment for\nperformance completed, the Company recognized revenue over time based on measurement of progress towards completion using output methods\nwhen it could appropriately measure the customization progress towards completion by reaching certain milestones specified in contracts.\nFor other contracts that the Company is only entitled to payment after completion and inspection of project, revenue is recognized at\na point in time after completion of software implementation and hardware installation, and the transfer of control to the customer.\n\n \n\nCertain business integration solution services contracts\nalso require the Company to provide post-contract services (“PCS”) which include maintenance and technical support. The provision\nof maintenance and technical support is considered one single performance obligation because maintenance and technical support are not\ndistinct within the context of the contract. The Company is obligated to provide a single, continuous, integrated service throughout\nthe contract term. As such, the Company allocates the contract price between revenue from business integration solution services and provision\nof PCS, using the expected cost plus margin approach. The expected cost plus margin approach requires the Company to forecast the expected\ncosts of satisfying the performance obligation and then add a reasonable margin for that good or service. Revenue allocated to PCS is\ndeferred and recognized on a straight-line basis over the estimated period PCS are expected to be provided.\n\n \n\nFor contracts that involved third party service providers,\nthe Company assesses if the Company controls the goods and services before they were transferred to the customer or if the Company’s\nresponsibility is merely to facilitate the provision of goods and service to the customer. For products and goods that were directly shipped\nfrom the vendor to the customer and the vendor is responsible for providing services including installing, set up and warranty services\nafter completion of the project, the Company records revenue from these contracts on a net basis when the services are provided and controlled\nby the third party service provider.\n\n \n\nF-18\n\n \n\n \n\n*(7) Professional services and other revenues*\n\n \n\nThe Company also generates revenue from data analysis\nservices and other professional services where a separate contract is entered into with the customer when the customer needs the product\nor services.\n\n \n\nThe service revenue from data analysis service is\nrecognized based on the service performed, an output measure, over the contractual period.\n\n \n\nOther professional services primarily consist of technical\nconsulting services. The Company recognizes revenue ratably over the contractual period as the customer simultaneously receives and consumes\nthe benefits as the Company performs.\n\n \n\nContract performance periods generally range from\nmonth to month, completion of service to one year, and payment terms are generally prepaid to 30 days. Contracts generally do not contain\nsignificant financing components or variable consideration.\n\n \n\n*Contract balances*\n\n \n\nThe Company records receivables related to revenue\nwhen it has an unconditional right to invoice and receive payment.\n\n \n\nContract liabilities are recorded when consideration\nis received from a customer prior to transferring the goods or services to the customer or other conditions under the terms of a sales\ncontract. After the acquisition of Pure Tech in 2024, the Company recorded contract liabilities of $109,908 as of November 30, 2024,\nand contract liabilities of $72,297 as of November 30, 2024 were recognized as revenue in the year ended December 31, 2024.\nAs of December 31, 2024, contract liabilities were $37,316, including a foreign currency translation adjustment loss of $295 and\nall of which were recognized as revenue in the year ended December 31, 2025. As of December 31, 2025, the Company recorded contract\nliabilities of $9,544.\n\n \n\nThe Company’s disaggregated revenue streams\nare summarized and disclosed in Note 17.\n\n \n\nCost of revenues\n\n \n\nCost of business integration solution services revenues\nfrom continuing operation entities consists primarily of personnel costs (including salaries, social insurance and benefits) for employees\ninvolved with the Company’s operations and product support.\n\n \n\nCost of digital advertising and marketing campaign\nservices revenues from continuing operation entities consists primarily of direct costs from the media.\n\n \n\nCost of revenues from discontinued operation entities\nconsists primarily of personnel costs (including salaries, social insurance and benefits) for employees involved with the Company’s\noperations and product support; third party service fees including cloud and data usage, hosting fees and amortization and depreciation\nexpenses associated with capitalized software, platform system and hardware. In addition, cost of revenues also include cost of hardware,\noutsourcing contracted customer service representatives, customer surveys, contracted software development costs and allocated shared\ncosts, primarily including facilities, information technology and security costs.\n\n \n\nShare-based Compensation\n\n \n\nThe Company accounts for share-based compensation\nawards in accordance with FASB ASC Topic 718, “Compensation – Stock Compensation”, which requires that share-based payment\ntransactions with employees be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation\nexpense over the requisite service period. The Company accounts for share-based compensation awards to non-employees in accordance with\nFASB ASC Topic 718 amended by ASU 2018-07. Under FASB ASC Topic 718, share-based compensation granted to non-employees has been determined\nas the fair value of the consideration received or the fair value of equity instrument issued, whichever is more reliably measured and\nis recognized as an expense as the goods or services are received.\n\n \n\nF-19\n\n \n\n \n\nValue added taxes\n\n \n\nRevenue represents the invoiced value of service,\nnet of value added tax (“VAT”). The VAT is based on gross sales price and VAT rates range up to 6%, depending on the type\nof service provided. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their\noutput VAT liabilities. Net VAT balance between input VAT and output VAT is recorded as VAT payable if output VAT is larger than input\nVAT and is recorded as VAT recoverable if input VAT is larger than output VAT. All of the VAT returns filed by the Company’s subsidiaries\nin China have been and remain subject to examination by the tax authorities for five years from the date of filing.\n\n \n\nIncome taxes\n\n \n\nThe Company accounts for current income taxes in accordance\nwith the laws of the relevant tax authorities. The charge for taxation is based on the results for the fiscal year as adjusted for items\nwhich are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance\nsheet date.\n\n \n\nDeferred taxes are accounted for using the asset\nand liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities\nin the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle,\ndeferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that\nit is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is\ncalculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred\ntax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which\ncase the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of\nmanagement, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes\nare provided for in accordance with the laws of the relevant taxing authorities. The Company presents deferred tax assets and liabilities\nas noncurrent in the balance sheet based on an analysis of each taxpaying component within a jurisdiction.\n\n \n\nAn uncertain tax position is recognized as a benefit\nonly if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination\nbeing presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized\non examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. No penalties and\ninterest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. PRC tax returns filed\nin 2025 and 2024 are subject to examination by any applicable tax authorities.\n\n \n\nComprehensive income (loss)\n\n \n\nComprehensive income (loss) consists of two components,\nnet income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses\nthat under GAAP are recorded as an element of equity but are excluded from net income. Other comprehensive income (loss) consists of a\nforeign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies.\n\n \n\nEarnings per share\n\n \n\nThe Company computes earnings per share (“EPS”)\nin accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is\nmeasured as net income (loss) attributable to Infobird Co., Ltd divided by the weighted average ordinary shares outstanding for the period.\nDiluted EPS presents the dilutive effect on a per share basis of the potential ordinary shares (e.g., convertible securities, options\nand warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary\nshares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the\ncalculation of diluted EPS. For the years ended December 31, 2025, 2024 and 2023, there were no dilutive shares.\n\n \n\nF-20\n\n \n\n \n\nWarrants\n\n \n\nThe Company accounts for warrants as either equity-classified\nor liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance\nin Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing\nLiabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers\nwhether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480,\nand whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed\nto the Company’s own ordinary shares and whether the warrant holders could potentially require “net cash settlement”\nin a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires\nthe use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while\nthe warrants are outstanding.\n\n \n\nFor issued or modified warrants that meet all of\nthe criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the\ntime of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required\nto be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated\nfair value of the warrants are recognized as a non-cash gain or loss on the statements of operations. The Company evaluated its warrants\nand determined the warrants are indexed to the Company’s own stock as the warrants do not contain any exercise contingencies,\nthe warrants’ settlement amount equals the difference between the fair value of the Company’s common stock price and the\nwarrant contract strike price and the only variables which could affect the settlement amount would be inputs to the fair value for a\nfixed-for-fixed option on equity shares. The Company also analyzed ASC 815-40-25 to determine whether the warrant contracts should be\nclassified in stockholders’ equity in the Company’s statements of financial condition and concluded that the warrant contracts\nmeet all of the criteria for classification as equity as the Company is not required to net settle. Based on this analysis, the Company\ndetermined the warrant contracts should be classified as equity.\n\n \n\nEmployee benefits\n\n \n\nThe full-time employees of the Company are entitled\nto staff welfare benefits including medical care, housing fund, pension benefits, unemployment insurance and other welfare, which are\nPRC government mandated defined contribution plans. The Company is required to accrue for these benefits based on certain percentages\nof the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant PRC regulations, and make cash\ncontributions to the state-sponsored plans out of the amounts accrued. Total expenses for the plans occurred in continuing operation entities,\nwhich were $160,977, $39,331 and $13,016 for the years ended December 31, 2025, 2024 and 2023, respectively.\n\n \n\nStatutory reserves\n\n \n\nPursuant to the laws applicable to the PRC, PRC entities\nmust make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund”. Subject to certain\ncumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit until the\naggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC\n(“PRC GAAP”) at each year-end). If the Company has accumulated loss from prior periods, the Company is able to use the current\nperiod net income after tax to offset against the accumulate loss.\n\n \n\nSegment reporting\n\n \n\nASC 280, “Segment Reporting”, establishes\nstandards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure\nas well as information about geographical areas, business segments and major customers in financial statements for detailing the Company’s\nbusiness segments.\n\n \n\nF-21\n\n \n\n \n\n**Recently issued accounting pronouncements**\n\n \n\nIn December 2023, the FASB issued ASU No. 2023-09,\nIncome Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires that entities disclose specific categories\nin their rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The new standard\nis effective for the Company beginning December 15, 2025, with early adoption permitted. The Company is currently evaluating the\nimpact of adopting the standard.\n\n \n\nExcept as mentioned above, the Company does not believe\nother recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s\nconsolidated balance sheets, consolidated statements of operations and comprehensive income (loss) and consolidated statements of cash\nflow.\n\n \n\n**Note 3 – Variable interest entity**\n\n \n\nVIEs are mainly from continuing operations and discontinued operations\nduring the years ended December 31, 2025, 2024, and 2023:\n\n \n\nVIEs from continuing operations\n\n \n\nOn June 10, 2024, Pure Media entered into the Contractual\nArrangements with Pinmu Century, and on July 31, 2024, Pure Media entered into the Contractual Arrangements with Zhenxi Brand. The significant\nterms of these Contractual Arrangements are summarized in “Note 1 – Nature of business and organization” above. As a\nresult, the Company classifies Pinmu Century and Zhenxi Brand as VIEs which should be consolidated based on the structure as described\nin Note 1.\n\n \n\nA VIE is an entity that has either a total equity\ninvestment that is insufficient to permit the entity to finance its activities without additional subordinated financial support, or whose\nequity investors lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected\nresidual returns of the entity or obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has\na controlling financial interest in a VIE is deemed to be the primary beneficiary for accounting purposes and must consolidate the VIE.\nPure Media is deemed to have a controlling financial interest and be the primary beneficiary for accounting purposes of Pinmu Century\nand Zhenxi Brand because it has both of the following characteristics:\n\n \n\n \n(1)\nThe power to direct activities at Pinmu Century and Zhenxi Brand that most significantly impact such entity’s economic performance, and\n\n \n \n \n\n \n(2)\nThe right to receive benefits from Pinmu Century and Zhenxi Brand that could potentially be significant to such entity.\n\n** **\n\n****\n\nPursuant to the Contractual Arrangements, Pinmu Century\nand Zhenxi Brand pay service fees equal to all of its net income to Pure Media. The Contractual Arrangements are designed so that Pinmu\nCentury and Zhenxi Brand operate for the benefit of Pure Media and ultimately, the Company.\n\n \n\nUnder the Contractual Arrangements, the Company has\nthe power to direct activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Company considers that there\nis no asset in the VIEs that can be used only to settle obligations of the VIEs, except for registered capital and PRC statutory reserves,\nif any. As Pinmu Century is incorporated as a limited liability company and Zhenxi Brand is incorporated as a wholly owned enterprise\nunder 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\nof the VIEs.\n\n \n\nAccordingly, the accounts of Pinmu Century and Zhenxi\nBrand are consolidated in the accompanying consolidated financial statements. In addition, their financial positions and results of operations\nare included in the Company’s consolidated financial statements.\n\n \n\nF-22\n\n \n\n \n\nVIE from discontinued operations\n\n \n\nOn May 27, 2020, Infobird WFOE entered into the Contractual\nArrangements with Infobird Beijing. The significant terms of these Contractual Arrangements are summarized in “Note 1 – Nature\nof business and organization” above. As a result, the Company classifies Infobird Beijing as a VIE which should be consolidated\ntill the dispose occurred in August, 2023, based on the structure as described in Note 1.\n\n \n\nA VIE is an entity that has either a total equity\ninvestment that is insufficient to permit the entity to finance its activities without additional subordinated financial support, or whose\nequity investors lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected\nresidual returns of the entity or obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has\na controlling financial interest in a VIE is deemed to be the primary beneficiary for accounting purposes and must consolidate the VIE.\nInfobird WFOE is deemed to have a controlling financial interest and be the primary beneficiary for accounting purposes of Infobird Beijing\nbecause it has both of the following characteristics:\n\n \n\n \n(1)\nThe power to direct activities at Infobird Beijing that most significantly impact such entity’s economic performance, and\n\n \n \n \n\n \n(2)\nThe right to receive benefits from Infobird Beijing that could potentially be significant to such entity.\n\n** **\n\n****\n\nPursuant to the Contractual Arrangements, Infobird\nBeijing pays service fees equal to all of its net income to Infobird WFOE. The Contractual Arrangements are designed so that Infobird\nBeijing operates for the benefit of Infobird WFOE and ultimately, the Company.\n\n \n\nUnder the Contractual Arrangements, the Company has\nthe power to direct activities of the VIEs and can have assets transferred out of the VIEs and settle obligations of the VIEs, except\nfor registered capital and PRC statutory reserves, if any. As the VIEs are incorporated as limited liability companies under the Company\nLaw 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.\n\n \n\nAccordingly, the accounts of Infobird Beijing are\nconsolidated in the accompanying consolidated financial statements. In addition, its financial positions and results of operations are\nincluded in the Company’s consolidated financial statements.\n\n \n\nThe carrying amount of the VIEs’ consolidated\nassets and liabilities are as follows:\n\n \n\nSchedule of VIEs’ consolidated assets and liabilities\n \n \n \n \n \n \n \n \n\n \n \nDecember 31, 2025\n \nDecember 31, 2024\n\n \n \n \n \n \n\nCurrent assets\n \n$\n13,358,763\n \n \n$\n12,630,910\n \n\nOther assets\n \n \n269,115\n \n \n \n350,188\n \n\nTotal assets\n \n \n13,627,878\n \n \n \n12,981,098\n \n\nTotal liabilities\n \n \n(4,749,905\n)\n \n \n(3,897,967\n)\n\nNet assets\n \n$\n8,877,973\n \n \n$\n9,083,131\n \n\n** **\n\n \n \n \n \n \n \n \n \n \n\n \n \nDecember 31, 2025\n \nDecember 31, 2024\n\n \n \n \n \n \n\nCurrent liabilities:\n \n \n \n \n \n \n \n \n\nAccounts payable\n \n$\n3,318,162\n \n \n$\n2,787,656\n \n\nOther payables and accrued liabilities\n \n \n84,837\n \n \n \n207,558\n \n\nShort-term loan\n \n \n662,955\n \n \n \n—\n \n\nContract liabilities\n \n \n9,544\n \n \n \n37,316\n \n\nLease liabilities\n \n \n189,189\n \n \n \n133,818\n \n\nTaxes payable\n \n \n417,653\n \n \n \n528,173\n \n\nTotal current liabilities\n \n \n4,682,340\n \n \n \n3,694,521\n \n\nLease liabilities – non-current\n \n \n67,565\n \n \n \n203,446\n \n\nTotal liabilities\n \n$\n4,749,905\n \n \n$\n3,897,967\n \n\n \n\nF-23\n\n \n\n \n\nThe summarized operating results of the VIEs are as follows:\n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n \n \nFor the year ended December 31, 2025\n \nFor the year ended December 31, 2024\n \nFor the year ended December 31, 2023**\n\n \n \n \n \n \n \n \n\nOperating revenues*\n \n$\n8,706,740\n \n \n$\n1,417,848\n \n \n$\n3,173,124\n \n\nGross profit\n \n \n2,568,542\n \n \n \n591,012\n \n \n \n1,575,941\n \n\nLoss from operations\n \n \n(397,138\n)\n \n \n(20,269\n)\n \n \n(4,121,315\n)\n\nNet loss\n \n$\n(586,566\n)\n \n$\n(46,643\n)\n \n$\n(4,310,491\n)\n\nNet loss attributable to INFOBIRD CO., LTD\n \n \n(568,969\n)\n \n \n(45,244\n)\n \n \n(4,018,865\n)\n\nNet loss attributable to non-controlling interest\n \n \n(17,597\n)\n \n \n(1,399\n)\n \n \n(291,626\n)\n\n** **\n\n*\nDuring the years ended December 31, 2025, 2024 and 2023, Operating revenues include nil, nil and $583,302 intercompany revenue to Infobird WFOE, respectively.\n\n**\nOperating revenues in 2023 were totally generated from discontinued operations.\n\n****\n\n** **\n\n****\n\n**Note\n4 – Restatement of Previously Issued Consolidated Financial Statement**\n\n** **\n\nSubsequent\nto the issuance of the Company’s consolidated financial statements for the year ended December 31, 2025, the Company identified\nan error in the measurement of goodwill impairment related to a foreign operation. The error resulted from an incorrect application of\nforeign currency translation adjustments within other comprehensive income (OCI) when calculating the carrying amount of the reporting\nunit, which was also impact non-controlling interest.\n\n \n\nAs\na result, goodwill impairment loss was overstated by $3,578,292,\nOCI was correspondingly overstated by $3,578,292,\nand NCI was correspondingly overstated by $1,642,951\nfor the year ended December 31, 2025. Of the total $3,578,292 OCI adjustment,\n$3,470,944 is reflected in the Company’s accumulated other comprehensive income and $107,348 is reflected in non-controlling\ninterests. This error had no impact on Company’s liquidity position.\n\n \n\nThe\nCompany’s management and its Audit Committee concluded that this error was material to the previously issued 2025 consolidated\nfinancial statements. Accordingly, the Company is restating its previously issued consolidated financial statements as of and for the\nyear ended December 31, 2025.\n\n \n\n**The\nfollowing table summarizes changes made to the audited consolidated balance sheets for year ended December 31, 2025:**\n\n \n\nSchedule of consolidated Financial report  \n    \n    \n   \n\n  \nDecember 31, 2025\n\n  \nAs reported \nAdjustment \nAs restated\n\n  \n  \n  \n \n\nAccumulated deficits \n$(83,889,411) \n$5,113,895  \n$(78,775,516)\n\nAccumulated other comprehensive income  \n 5,019,336  \n (3,470,944) \n 1,548,392 \n\nTotal shareholders’ equity attributable to Infobird\nCo., Ltd \n 16,029,361  \n 1,642,951  \n 17,672,312 \n\nNon-controlling interests \n 2,170,196  \n (1,642,951) \n 527,245 \n\n \n\n**The\nfollowing table summarizes changes made to the audited consolidated statements of operations and comprehensive income (loss) for year\nended December 31, 2025:**\n\n****\n\n** **\n\n  \n    \n    \n   \n\n  \nDecember 31, 2025\n\n  \nAs reported \nAdjustment \nAs restated\n\n  \n  \n  \n \n\nImpairment of goodwill \n$54,765,074  \n$(3,578,292) \n$51,186,782 \n\nTotal operating expenses \n 58,979,750  \n (3,578,292) \n 55,401,458 \n\nLOSS FROM OPERATIONS \n (56,411,208) \n 3,578,292  \n (52,832,916)\n\nNET LOSS BEFORE INCOME TEX EXPENSES \n (57,203,388) \n 3,578,292  \n (53,625,096)\n\nNET LOSS FROM CONTINUING OPERATIONS \n (57,203,388) \n 3,578,292  \n (53,625,096)\n\nNET LOSS \n (57,203,388) \n 3,578,292  \n (53,625,096)\n\nLess: Net loss attributable to non-controlling\ninterest from continuing operations \n (17,455) \n (1,535,603) \n (1,553,058)\n\nNET LOSS ATTRIBUTABLE TO INFOBIRD\nCO., LTD \n (57,185,933) \n 5,113,895  \n (52,072,038)\n\nFOREIGN CURRENCY TRANSLATION ADJUSTMENT \n 5,241,087  \n (3,578,292) \n 1,662,795 \n\nLess: Comprehensive income (loss)\nattributable to non-controlling interests from continuing operations \n 140,662  \n (1,642,951) \n (1,502,289)\n\nCOMPREHENSIVE LOSS ATTRIBUTABLE TO\nINFOBIRD CO., LTD \n (52,102,963) \n 1,642,951  \n (50,460,012)\n\n(LOSS) EARNING PER SHARE - BASIC\nAND DILUTED \n    \n    \n   \n\nContinuing operations \n (7.13) \n 0.63  \n (6.50)\n\n \n\n**The\nfollowing table summarizes changes made to the audited consolidated statement of cash flows for year ended December 31, 2025:**\n\n \n\n  \n    \n    \n   \n\n  \nDecember 31, 2025\n\n  \nAs reported \nAdjustment \nAs restated\n\n  \n  \n  \n \n\nNet loss \n$(57,203,388) \n$3,578,292  \n$(53,625,096)\n\nNet loss from continuing operations \n (57,203,388) \n 3,578,292  \n (53,625,096)\n\nImpairment of goodwill \n 54,765,074  \n 3,578,292  \n 51,186,782 \n\n** **\n\n**Note\n5 – Business combination**\n\n \n\nAcquisition of Pure Tech\n\n \n\nOn\nJuly 31, 2024, the Company entered into an Equity Acquisition Agreement (the “Purchase Agreement 1”) with Shangri-La Trading\nLimited to acquire 65% ownership stake in Pure Tech, for aggregate purchase price of $40,000,000. On December 6, 2024, the Company entered\ninto an Equity Acquisition Agreement (the “Purchase Agreement 2”) with the other shareholder of Pure Tech, One One Business\nLimited to acquire 32% ownership stake in Pure Tech, for aggregate purchase price of $25,737,818, consisting of $5,953,095 in the form\nof promissory note and $19,784,723 in cash.\n\n \n\nOn\nNovember 30, 2024, the Company has paid the majority of considerations and already control Pure Tech and its subsidiary and VIEs.\n\n \n\nThe\nCompany’s acquisition of Pure Tech was accounted for as a business combination in accordance\nwith ASC 805. The Company allocated the purchase price of Pure Tech based upon the fair value\nof the identifiable assets acquired and liabilities assumed on the acquisition date. The Company estimated the fair values of the assets\nacquired and liabilities assumed at the acquisition date in accordance with the business combination standard issued by the FASB with\nthe valuation methodologies using level 3 inputs. Management of the Company is responsible for determining the fair value of assets acquired,\nliabilities assumed and intangible assets identified as of the acquisition date and considered a number of factors including valuations\nfrom independent appraisers. Acquisition-related costs incurred for the acquisitions were not material and have been expensed as incurred\nin general and administrative expense. The consideration was $65,737,818, consisting of $5,953,095 in the form of a convertible promissory\nnote and $59,784,723 in cash.\n\n \n\nF-24\n\n \n\n \n\nThe\nfollowing table presents the purchase price of Pure Tech for the Company and non-controlling shareholders on November 30, 2024.\n\n \n\nSchedule of fair value of identifiable assets acquired and liabilities\n \n \n \n \n\n \n \nAmount\n\n \n \n \n\nCash\n \n$\n4,212,977\n \n\nAccounts receivable, net\n \n \n3,264,577\n \n\nNotes receivables\n \n \n1,299,453\n \n\nOther receivables, net\n \n \n140,172\n \n\nDue from related parties\n \n \n249,273\n \n\nPrepayments\n \n \n131,765\n \n\nRight-of-use assets\n \n \n364,175\n \n\nAccounts payable\n \n \n(2,714,374\n)\n\nOther payables and accrued liabilities\n \n \n(656,039\n)\n\nContract liabilities\n \n \n(109,908\n)\n\nTaxes payable\n \n \n(494,392\n)\n\nLease liabilities - current\n \n \n(134,463\n)\n\nLease liabilities - noncurrent\n \n \n(217,569\n)\n\nNet assets acquired\n \n$\n5,335,647\n \n\n \n \n \n \n \n\nGoodwill\n \n$\n62,435,299\n \n\n \n \n \n \n \n\nPurchase price for the Company\n \n \n65,737,818\n \n\nFair value of non-controlling interest\n \n \n2,033,128\n \n\nTotal purchase price\n \n$\n67,770,946\n \n\n****\n\n** **\n\nThe following\nunaudited pro forma financial information represents the consolidated results of operations as if the acquisition had occurred on January\n1, 2022: \n\n \n\nSchedule of income and losses from\noperations\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n \nFor the year ended December 31, 2024\n \nFor the year ended December 31, 2023\n \nFor the year ended December 31, 2022\n\n \n \n \n \n \n \n \n\nRevenue\n \n$\n17,622,367\n \n \n$\n13,426,051\n \n \n$\n17,634,143\n \n\nNet income/(loss)\n \n \n1,703,675\n \n \n \n2,699,315\n \n \n \n(226,904\n)\n\n \n\nThese pro forma\nresults are presented for information purposes only and do not necessarily reflect the actual results that would have been achieved had\nthe acquisition occurred on the date assumed, nor are they indicative of future consolidated results of operations.\n\n \n\nBoth revenue\nand net income/(loss) of pro forma are combined continuing operations of the Company and Pure Tech.\n\n \n\nChanges in the\ncarrying amount of goodwill for the year ended December 31, 2025 was as follows:\n\n \n\nSchedule of carrying amount of good will\n \n \n \n \n\n \n \nAcquisition of Pure Tech\n\n \n \n (Restated)\n\n \n \n \n\nBalance as of December 31, 2024\n \n$\n62,435,299\n \n\nImpairment of goodwill\n \n \n(51,186,782\n)\n\nEffect of foreign exchange rate\n \n \n1,310,861\n \n\nBalance as of December 31, 2025\n \n$\n12,559,378\n \n\n \n\nF-25\n\n \n\n \n\n**Note 6\n— Discontinued operations**\n\n \n\nOn August 11,\n2023, the Company discontinued its SaaS services in the Mainland of China. On August 11, 2023, Infobird Co., Ltd, a Cayman Island\nexempted company (the “Company”), entered into an equity transfer agreement (the “Agreement”) with CRservices\nLimited (“CRservices”), a Mahé Island limited company and a shareholder of the Company, pursuant to which, the Company\nagreed to sell all the issued shares of Infobird HK, a limited company incorporated under the laws of Hong Kong and a wholly owned subsidiary\nof the Company, for a consideration of HK$10,000. On the same day, the Company discontinued its\nSaaS services in the Mainland of China.\n\n \n\nAs a result,\nthe result of operations for the Company’s Mainland SaaS services business are reported as discontinued operations under the guidance\nof ASC 205.\n\n \n\nReconciliation\nof the amounts of major classes of income and losses from discontinued operations in the consolidated statements of operations and comprehensive\nloss for the years ended December 31, 2025, 2024 and 2023.\n\n \n\nSchedule of income and losses from discontinued\noperations\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n \nFor the Year Ended\n\n \n \nDecember 31,\n \nDecember 31,\n \nDecember 31,\n\n \n \n2025\n \n2024\n \n2023\n\n \n \n \n \n \n \n \n\nREVENUES\n \n$\n—\n \n \n$\n—\n \n \n$\n2,589,823\n \n\nCOST OF REVENUES\n \n \n—\n \n \n \n—\n \n \n \n1,603,887\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nGROSS PROFIT\n \n \n—\n \n \n \n—\n \n \n \n985,936\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nOPERATING EXPENSES:\n \n \n \n \n \n \n \n \n \n \n \n \n\nSelling\n \n \n—\n \n \n \n—\n \n \n \n607,424\n \n\nGeneral and administrative\n \n \n—\n \n \n \n—\n \n \n \n954,576\n \n\nResearch and development\n \n \n—\n \n \n \n—\n \n \n \n922,343\n \n\nLong-live assets impairment\n \n \n—\n \n \n \n—\n \n \n \n2,602,589\n \n\nTotal operating expenses\n \n \n—\n \n \n \n—\n \n \n \n5,086,932\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nLOSS FROM OPERATIONS\n \n \n—\n \n \n \n—\n \n \n \n(4,100,996\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nOTHER INCOME (EXPENSE)\n \n \n \n \n \n \n \n \n \n \n \n \n\nInterest income\n \n \n—\n \n \n \n—\n \n \n \n1,296\n \n\nInterest expense\n \n \n—\n \n \n \n—\n \n \n \n(33,682\n)\n\nOther expense, net\n \n \n—\n \n \n \n—\n \n \n \n(154,275\n)\n\nTotal other expense, net\n \n \n—\n \n \n \n—\n \n \n \n(186,661\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nLOSS FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES\n \n \n—\n \n \n \n—\n \n \n \n(4,287,657\n)\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nGAIN ON THE SALE OF DISCONTINUED OPERATIONS BEFORE INCOME TAXES\n \n \n—\n \n \n \n—\n \n \n \n22,858,286\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nTOTAL INCOME FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES\n \n \n—\n \n \n \n—\n \n \n \n18,570,629\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nINCOME TAX EXPENSE\n \n \n—\n \n \n \n—\n \n \n \n—\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nINCOME FROM DISCONTINUED OPERATIONS, NET OF TAX\n \n \n—\n \n \n \n—\n \n \n \n18,570,629\n \n\n** **\n\n****\n\nF-26\n\n \n\n \n\n**Note\n7 – Accounts receivable, net**\n\n \n\nAccounts receivable, net consist of the following:\n\n \n\n \n \n \n \n \n \n \n \n \n\n \n \nDecember 31, 2025\n \nDecember 31, 2024\n\n \n \n \n \n \n\nTrade accounts receivable\n \n$\n3,786,213\n \n \n$\n4,220,194\n \n\nLess: Allowance for expected credit losses\n \n \n(332,334\n)\n \n \n(360,701\n)\n\nTotal accounts receivable, net\n \n$\n3,453,879\n \n \n$\n3,859,493\n \n\n \n\nMovement of allowance for expected credit losses of\nthe following:\n\n \n\nSchedule of allowance for expected credit losses\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n \nDecember 31, 2025\n \nDecember 31, 2024\n \nDecember 31, 2023\n\n \n \n \n \n \n \n \n\nBeginning balance\n \n$\n360,701\n \n \n$\n—\n \n \n$\n—\n \n\nAddition\n \n \n74,175\n \n \n \n—\n \n \n \n—\n \n\nReversal\n \n \n(117,141\n)\n \n \n—\n \n \n \n—\n \n\nForeign exchange adjustment\n \n \n14,599\n \n \n \n—\n \n \n \n—\n \n\nAcquisition\n \n \n—\n \n \n \n360,701\n \n \n \n—\n \n\nEnding balance\n \n$\n332,334\n \n \n$\n360,701\n \n \n$\n—\n \n\n \n\nThe Company does not require collateral for, or interest\non accounts receivable. The Company maintains an allowance for estimated credit losses, and when it is determined that they are uncollectible,\nthe allowance for expected credit losses and corresponding receivables are written off.\n\n \n\n**Note\n8 – Other receivables, net**\n\n \n\nOther receivables, net consist of the following:\n\n \n\n \n \n \n \n \n \n \n \n \n\n \n \nDecember 31, 2025\n \nDecember 31, 2024\n\n \n \n \n \n \n\nReceivables from sales of short-term investment\n \n$\n1,888,662\n \n \n$\n1,888,662\n \n\nOthers\n \n \n249,410\n \n \n \n147,952\n \n\nTotal other receivables\n \n$\n2,138,072\n \n \n$\n2,036,614\n \n\nLess: Allowance for expected credit losses\n \n \n(1,888,662\n)\n \n \n(1,888,662\n)\n\nTotal other receivables, net\n \n$\n249,410\n \n \n$\n147,952\n \n\n \n\nThe Company does not require collateral for other\nreceivables. The Company maintains an allowance for its doubtful accounts receivable due to estimated credit losses, and all the allowance\nfor credit losses are accrued directly to the receivables from sales of short-term investment in the year ended December\n31, 2023. The Company records the allowance for expected credit loss through the consolidated statements of operations and comprehensive\nincome (loss), included in allowance for credit losses, up to the amount of receivables recognized to date. Receivables are written off\nand charged against the recorded allowance when the Company has exhausted collection efforts without success.\n\n \n\nF-27\n\n \n\n \n\n**Note\n9 – Accounts payable**\n\n \n\nAccounts payable mainly consist of trade accounts\npayable. As of December 31, 2025 and 2024, the balance of accounts payable were $3,318,162 and $2,787,656, respectively.\n\n \n\nThe ageing of all accounts payable is under 2 years,\nand the Company is not required to pay any interest on accounts payable.\n\n \n\n**Note\n10 – Short-term loans**\n\n** **\n\nOutstanding balances on short-term loans consist of\nthe following:\n\n \n\nSchedule of Short term loans\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nBank Name\n \nMaturities\n \nInterest rate\n \n**Collateral/Guarantee/Co-borrower**\n \nDecember 31, 2025\n \nDecember 31, 2024\n\n \n \n \n \n \n \n \n \n \n \n \n\nBank of Communications\n \n \nDecember 2026\n \n \n \n2.65\n%\n \nHong Wan\n \n$\n662,955\n \n \n$\n—\n \n\nTotal\n \n \n \n \n \n \n \n \n \n \n \n \n662,955\n \n \n \n—\n \n\n \n \n \n \n \n \n \n \n \n \nCurrent\n \n$\n662,955\n \n \n$\n—\n \n\n \n\nIn December 2025, Pinmu Century and its shareholder\nHong Wan entered into a loan agreement with Bank of Communications as co-borrowers, obtaining a revolving credit facility of\napproximately $1,429,981 (RMB 10,000,000). Pursuant to the agreement, the credit facility is available for a period of two years, commencing\non December 19, 2025, and expiring on December 19, 2027. As of December 31, 2025, the Company has borrowed $662,955 from the bank. The\noutstanding loan is bearing interest at a rate of 2.65% per annum and matures in December 2026.\n\n \n\n**Note\n11 – Other liabilities**\n\n \n\nOther liabilities were mainly\nconvertible promissory note. As of December 31, 2025 and 2024, the balance of other liabilities were 0 nil and $2,856,120,\nrespectively. The outstanding balances of December 31, 2024 were converted to common stock on January 24, 2025.\n\n \n\n**Note\n12 – Related party balances and transactions**\n\n \n\nParties are considered to\nbe related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the\nother party in making financial and operational decisions. Parties are also considered to be related if they are subject to common control\nor common significant influence. Related parties may be individuals or corporate entities. The table below sets forth the major related\nparties and their relationships with the Company as of December 31, 2025 and 2024:\n\n \n\n**Name of related Party**\n \n**Relationship**\n\nBeijing Runmei Advertising Co., Ltd (“Runmei”)\n \nUnder control of the shareholder of Zhenxi Brand\n\nCRservices Limited (“CRservices”)\n\n \nUnder control of the Chairman of the Board of Directors\n\n \n\nSubscription receivable\n\n \n\nAs of December 31, 2025 and 2024, the balance of subscription\nreceivable were both nil. Net proceeds of $1,184,676 were received on January 10, 2024 for the issuance of common shares to investors\non December 28, 2023.\n\n \n\nF-28\n\n \n\n \n\nDue from related parties\n\n \n\nAs of December 31, 2025 and 2024, the balance due\nfrom related parties are set out below:\n\n \n\nSchedule of due from related party\n \n \n \n \n \n \n \n \n\n \n \nDecember 31, 2025\n \nDecember 31, 2024\n\n \n \n \n \n \n\nBeijing Runmei Advertising Co., Ltd*\n \n$\n—\n \n \n$\n247,328\n \n\nCRservices**\n \n \n—\n \n \n \n—\n \n\nTotal\n \n$\n—\n \n \n$\n247,328\n \n\n** **\n\n*\nThe balance due from Runmei was $247,328 as of December 31, 2024, which was borrowed for working capital use, non-interest bearing and payable upon demand. Following its full settlement on March 28, 2025, the balance due from Runmei was nil as of December 31, 2025.\n\n**\nThe balance due from CRservices was both nil as of December 31, 2025 and 2024, as the consideration of $1,279 for the disposal of Infobird HK on August 11, 2023, was fully settled on April 10, 2024.\n\n****\n\n \n\nDue from discontinued operations, net\n\n \n\nDue from discontinued operations, net consist of the\nfollowing:\n\n \n\n \n \n \n \n \n \n \n \n \n\n \n \nDecember 31, 2025\n \nDecember 31, 2024\n\n \n \n \n \n \n\nDue from discontinued operations\n \n$\n—\n \n \n$\n17,632,181\n \n\nLess: Allowance for expected credit losses\n \n \n—\n \n \n \n(17,632,181\n)\n\nDue from discontinued operations, net\n \n$\n—\n \n \n$\n—\n \n\n****\n\n** **\n\nMovement of allowance for expected credit losses consist\nof the following:\n\n \n\nSchedule of allowance for credit losses\n \n \n \n \n \n \n \n \n\n \n \nDecember 31, 2025\n \nDecember 31, 2024\n\n \n \n \n \n \n\nBeginning balance\n \n$\n17,632,181\n \n \n$\n17,632,181\n \n\nWrite off\n \n \n(17,632,181\n)\n \n \n—\n \n\nEnding balance\n \n$\n—\n \n \n$\n17,632,181\n \n\n \n\nAfter the Company disposed the discontinued operation\nentities, those entities continued in the decline of the scale of operation and in the increase of operating losses, which made the collectability\nof the receivables in doubt. During the year 2023, the Company totally impaired the balance due from discontinued operations by amount\nof $17,632,181. Based on an analysis of the discontinued operation entities’ current situation, the Company determined that the\ndue from discontinued operations were uncollectible. Consequently, the amount of $17,632,181 was written off in 2025.\n\n \n\n**Note\n13 – Taxes**\n\n \n\nIncome tax\n\n \n\nCayman Islands\n\n \n\nUnder the current laws of the Cayman Islands, the\nCompany is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands\nwithholding tax will be imposed.\n\n \n\nF-29\n\n \n\n \n\nHong Kong\n\n \n\nInfobird HK, Inforbird Technologies, and Pure Media\nare incorporated in Hong Kong and are subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements\nadjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate is 16.5% in Hong Kong. The Company did not make any provisions\nfor Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since inception. Under Hong Kong tax\nlaw, Infobird HK is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance\nof dividends.\n\n \n\nBVI\n\n \n\nUnder the current laws of BVI, Pure Tech is not subject\nto tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no BVI withholding tax will be imposed.\n\n \n\nPRC\n\n \n\nInfobird WFOE, Infobird Beijing, Infobird Anhui,\nInfobird Guiyang, Shanghai Qishuo, Anhui Weiao, Guangnian Zhiyuan, Beijing Suowangda, Pinmu Century and Zhenxi Brand are governed by\nthe income tax laws of the PRC and the income tax provision in respect to operations in the PRC is calculated at the applicable tax rates\non the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Enterprise\nIncome Tax Laws of the PRC (the “EIT Laws”), domestic enterprises and Foreign Investment Enterprises (the “FIE”)\nare usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may\nbe granted on case-by-case basis. EIT grants preferential tax treatment to certain High and New Technology Enterprises (“HNTEs”).\nUnder this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for\nHNTE status every three years. Infobird Beijing maintained the “high-tech enterprise” tax status which is validated until\nOctober 2023, which reduced its statutory income tax rate to 15%. Pinmu Century maintained the “high-tech enterprise” tax\nstatus which is validated until October 2026, which reduced its statutory income tax rate to 15%. Infobird Guiyang qualifies for 15%\npreferential income tax rate for enterprises whose core business is one of the industrial projects listed in the Catalogue of Encouraged\nIndustries in western regions of China. EIT also grants preferential tax treatment to certain Small and Micro Enterprises (“SMEs)”.\nUnder this preferential tax treatment, SMEs with revenues under RMB1,000,000 (approximately USD138,972) are entitled to an income tax\nrate of 20% base on a 25% taxable income. Guangnian Zhiyuan, Beijing Suowangda are eligible for the 20% tax rate. Besides, Zhenxi Brand\nis a wholly owned enterprise which is not applicable to income tax under the law of PRC.\n\n \n\nIn addition, 200% of research and development expenses\nof Infobird Beijing, Infobird Anhui, Infobird Guiyang, Shanghai Qishuo, Anhui Weiao and Pinmu Century are subject to additional deduction\nfrom pre-tax income while such deduction cannot exceed the total amount of pre-tax income.\n\n \n\nTax savings for the years ended December 31, 2025,\n2024 and 2023 amounted to $172,098, $72,058, and nil respectively, with the 10% preferential tax rate reduction and additional deduction\nof 200% of research and development expenses.\n\n \n\nThe Company’s basic and diluted earnings\nper shares would have been lower by approximately $0.0,\n$0.0\nand 0 nil per share for the years ended December 31, 2025, 2024 and 2023 respectively, without the preferential tax rate reduction\nand research and development expenses reduction.\n\n \n\nIncome tax expenses for the years ended December\n31, 2025, 2024 and 2023 amounted to 0 nil, $21,008\nand 0 nil, respectively.\n\n \n\nSignificant components of the provision for income\ntaxes for the continuing operations and discontinued operations are as follows:\n\n \n\nF-30\n\n \n\n \n\nSchedule of provision for income taxes\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n \nFor the year ended December 31, 2025\n \nFor the year ended December 31, 2024\n \nFor the year ended December 31, 2023\n\nContinuing operations:\n \n \n \n \n \n \n \n \n \n \n \n \n\nCurrent income tax expenses\n \n$\n—\n \n \n$\n21,008\n \n \n$\n—\n \n\nDeferred income tax expenses\n \n \n—\n \n \n \n—\n \n \n \n—\n \n\nTotal income tax expenses\n \n$\n—\n \n \n$\n21,008\n \n \n$\n—\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nDiscontinued operations:\n \n \n \n \n \n \n \n \n \n \n \n \n\nCurrent income tax expenses\n \n$\n—\n \n \n$\n—\n \n \n$\n—\n \n\nDeferred income tax expenses\n \n \n—\n \n \n \n—\n \n \n \n—\n \n\nTotal income tax expenses\n \n$\n—\n \n \n$\n—\n \n \n$\n—\n \n\n \n\nThe following table reconciles China statutory rates to the Company’s\neffective tax rate of continuing operations and discontinued operations:\n\n \n\nSchedule of statutory tax rates\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n \nFor the year ended\n \nFor the year ended\n \nFor the year ended\n\n \n \nDecember 31, 2025\n \nDecember 31, 2024\n \nDecember 31, 2023\n\nContinuing operations:\n \n \n \n \n \n \n \n \n \n \n \n \n\nChina statutory income tax rate\n \n \n25\n%\n \n \n25\n%\n \n \n—\n \n\nPreferential tax rate reduction\n \n \n(14.2\n)%\n \n \n(19.3\n)%\n \n \n—\n \n\n200% deduction on research and development expenses\n \n \n(2.4\n)%\n \n \n(1.0\n)%\n \n \n—\n \n\nChange in valuation allowance\n \n \n(13.7\n)%\n \n \n(4.0\n)%\n \n \n—\n \n\nPermanent difference\n \n \n(0.5\n)%\n \n \n(12.6\n)%\n \n \n—\n \n\nOthers\n \n \n5.8\n%\n \n \n6.1\n%\n \n \n \n \n\nEffective tax rate\n \n \n—\n \n \n \n(5.8\n)%\n \n \n—\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nDiscontinued operations:\n \n \n \n \n \n \n \n \n \n \n \n \n\nChina statutory income tax rate\n \n \n—\n \n \n \n—\n \n \n \n25\n%\n\nPreferential tax rate reduction\n \n \n—\n \n \n \n—\n \n \n \n(9.6\n)%\n\nChange in valuation allowance\n \n \n—\n \n \n \n—\n \n \n \n(15.3\n)%\n\nPermanent difference\n \n \n—\n \n \n \n—\n \n \n \n(0.1\n)%\n\nEffective tax rate\n \n \n—\n \n \n \n—\n \n \n \n—\n \n\n****\n\n****\n\n \n\nDeferred tax assets and liabilities – China\n\n \n\nSignificant components of deferred tax assets and liabilities of continuing\noperations were as follows:\n\n \n\n Schedule of deferred tax assets and liabilities\n \n \n \n \n \n \n \n \n\n \n \nDecember 31,\n \nDecember 31,\n\nDeferred tax assets:\n \n2025\n \n2024\n\n \n \n \n \n \n\nNet operating loss carryforward\n \n$\n151,311\n \n \n$\n20,018\n \n\nLease liabilities\n \n \n43,867\n \n \n \n59,837\n \n\nAllowance for doubtful account\n \n \n(6,624\n)\n \n \n—\n \n\nDeferred tax assets\n \n \n188,554\n \n \n \n79,855\n \n\n \n \n \n \n \n \n \n \n \n\nROU assets\n \n \n(45,785\n)\n \n \n(61,717\n)\n\nDeferred tax liabilities\n \n \n(45,785\n)\n \n \n(61,717\n)\n\n \n \n \n \n \n \n \n \n \n\nValuation allowance\n \n \n(142,769\n)\n \n \n(18,138\n)\n\n \n \n \n \n \n \n \n \n \n\nDeferred tax assets (liabilities), net\n \n$\n—\n \n \n$\n—\n \n\n \n\nF-31\n\n \n\n \n\nThe Company had net operating loss (NOL) carryforward\nof approximately $0.15 million and $0.02 million from the Company’s PRC and Hong Kong subsidiaries as of December 31, 2025 and 2024,\nrespectively. As the Company believes it is more likely than not that its PRC and Hong Kong operations will not be able to fully utilize\nits deferred tax assets related to the net operating loss carryforwards in the PRC and Hong Kong, the Company provided 100% allowance\non deferred tax assets net of deferred tax liabilities of approximately $0.14 million and $0.02 million related to PRC and Hong Kong subsidiaries as\nof December 31, 2025 and 2024, respectively.\n\n \n\nUncertain tax positions\n\n \n\nThe Company evaluates each uncertain tax position\n(including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits\nassociated with the tax positions. As of December 31, 2025 and 2024, the Company did not have any significant unrecognized uncertain tax\npositions. The Company did not incur interest and penalties tax for the years ended December 31, 2025, 2024, and 2023. The Company does\nnot anticipate any significant increases or decreases in unrecognized tax benefits in the next twelve (12) months from December 31, 2025.\n\n \n\nValue added tax (“VAT”)\n\n \n\nAll of the Company’s service revenues that are\nearned and received in the PRC are subject to Chinese VAT at a rate of 6% of the gross proceeds or at a rate approved by the Chinese local\ngovernment.\n\n \n\nTaxes payable consisted of the following:\n\n \n\nSchedule of taxes payable\n \n \n \n \n \n \n \n \n\n \n \nDecember 31, 2025\n \nDecember 31, 2024\n\n \n \n \n \n \n\nVAT taxes payable\n \n$\n305,818\n \n \n$\n316,105\n \n\nIncome taxes payable\n \n \n102,986\n \n \n \n203,494\n \n\nOther taxes payable\n \n \n9,012\n \n \n \n9,351\n \n\nTotal taxes payable\n \n$\n417,816\n \n \n$\n528,950\n \n\n****\n\n****\n\n \n\n**Note\n14 – Concentration of risk**\n\n \n\nCredit risk\n\n \n\nFinancial instruments that potentially subject the\nCompany to significant concentrations of credit risk consist primarily of cash in bank. As of December 31, 2025 and 2024, $4,994,497 and\n$3,521,677 were deposited with financial institutions located in the PRC, respectively. Deposit insurance system in China only insured\neach depositor at one bank for a maximum of approximately $71,000 (RMB 500,000). As of December 31, 2025 and 2024, $4,605,818 and $3,232,446\nare over the China deposit insurance limit which is not covered by insurance, respectively. The Hong Kong Deposit Protection Board\npays compensation up to a limit of HKD 800,000 (approximately USD 103,000) if the bank with which an individual/a company hold its\neligible deposit fails. As of December 31, 2025 and 2024, cash balance of $118,820 and $1,172,048 was maintained at financial institutions\nin Hong Kong, of which $10,168 and $1,043,310 was subject to credit risk, respectively.\n\n \n\nThe Company is also exposed to risk from its accounts\nreceivable and other receivables. These assets are subjected to credit evaluations. An allowance has been made for estimated unrecoverable\namounts which have been determined by reference to past default experience and the current economic environment.\n\n \n\nCustomer concentration risk\n\n \n\nFor the year ended December 31, 2025, two customers\naccounted for 80.7% and 11.3% of the Company’s total revenues, respectively. For the year ended December 31, 2024, two customers\naccounted for 71.8% and 26.0% of the Company’s total revenues, respectively. For the year ended December 31, 2023, two customers\naccounted for 64.3% and 35.7% of the Company’s total revenues, respectively.\n\n \n\nF-32\n\n \n\n \n\nAs of December 31, 2025, two customers accounted for\n86.0% and 11.4% of the total balance of accounts receivable. As of December 31, 2024, two customers accounted for 52.3% and 46.8% of the\ntotal balance of accounts receivable.\n\n \n\nVendor concentration risk\n\n \n\nFor the year ended December 31, 2025, three vendors\naccounted for 35.3%, 27.7% and 10.2% of the Company’s total purchases. For the year ended December 31, 2024, three vendors accounted\nfor 42.4%, 29.7% and 15.1% of the Company’s total purchases. For the year ended December 31, 2023, none of vendor accounted for\nmore than 10.0% of the Company’s total purchases.\n\n \n\nAs of December 31, 2025, three vendors accounted for\n43.1%, 22.2% and 17.3% of the total balance of accounts payable, respectively. As of December 31, 2024, two vendors accounted for 36.9%\nand 30.0% of the total balance of accounts payable, respectively.\n\n \n\n**Note\n15 – Equity**\n\n \n\nOrdinary shares\n\n \n\nInfobird Cayman was established under the laws of\nthe Cayman Islands on March 26, 2020 and 19,000,000 ordinary shares were issued on the same day.\n\n \n\nOn April 22, 2021, the Company completed its initial\npublic offering (“IPO”) of 6,250,000 ordinary shares, par value $0.001 per share, and on June 8, 2021, issued 125,000 ordinary\nshares pursuant to the underwriter’s partial exercise of its over-allotment option in connection with the IPO, at a public offering\nprice of $4 per share, which resulted in net proceeds to the Company of approximately $20.8 million after deducting underwriting discounts\nand commissions and other expenses.\n\n \n\nDuring the year ended December 31, 2021, the Company\ngranted 70,000 ordinary shares to two consulting firms based on grant date fair value of $150,600 to be amortized over stated services\nperiod.\n\n \n\nOn September\n9, 2022, the Company effected the 1-for-5 Share Consolidation of its ordinary shares pursuant to the Company’s second amended\nand restated memorandum and articles of association. The Company has retroactively restated all share and per share data\nfor all of the periods presented pursuant to ASC 260 to reflect the Share Consolidation.\n\n \n\nUpon execution of 1-for-5 Share Consolidation, the\nCompany recognized additional 4,135 shares of ordinary share due to round up.\n\n \n\nOn September 29, 2022, the Company has entered into\na Securities Purchase Agreement (the “Agreement 1”) with a purchaser. Pursuant to the Agreement 1, the Company agreed to sell\nto this purchaser 500,000 ordinary shares for a consideration of $277,500. On September 29, 2022, the Company issued 500,000 shares to\nthis purchaser.\n\n \n\nOn October 8, 2022, the Company has entered into a\nSecurities Purchase Agreement (the “Agreement 2”) with a purchaser. Pursuant to the Agreement 2, the Company agreed to sell\nto this purchaser 500,000 ordinary shares for a consideration of $287,500. On October 8, 2022, the Company issued 500,000 shares to this\npurchaser.\n\n \n\nOn November 9, 2022, the Company has entered into\na Securities Purchase Agreement (the “Agreement 3”) with a purchaser. Pursuant to the Agreement 3, the Company agreed to sell\nto this purchaser 500,000 ordinary shares for a consideration of $202,500. On November 9, 2022, the Company issued 500,000 shares to this\npurchaser.\n\n \n\nF-33\n\n \n\n \n\nOn December 23, 2022, we issued the convertible notes\n(the “2022 CB”) in the aggregate principal amount of US$6.25 million pursuant to the convertible note purchase agreement dated\nNovember 25, 2022, under which the holder of the 2022 CB (the “2022 CB Holder”) may subscribe at eighty percent of the face\nvalue up to US$12.5 million in aggregate principal amount of our two-year convertible notes. On the same date of the 2022 CB issuance,\nthe 2022 CB Holder elected to convert the 2022 CB at the conversion price of US$0.5, representing the floor price of the conversion price,\nresulting in the issuance of 12.5 million ordinary shares.\n\n \n\nOn February\n28, 2023, the Company issued 3,846,000 units (each, a “Unit”) at a per Unit price of $1.30. Each Unit comprises: (1) one ordinary\nshare, and (2) 0.65 of a warrant to purchase one ordinary share. In a concurrent private placement we also sold unregistered warrant to\npurchase 2,884,500 ordinary shares. The net proceeds of this offering was $4,522,314. On February 28, 2023, the Company issued 3,846,000\nordinary shares.\n\n \n\nUpon execution\nof 1-for-5 Share Consolidation in May 2023, the Company recognized additional 12,321 shares of ordinary share due to round\nup.\n\n \n\nOn May 31, 2023,\nthe Company issued 499,980 shares of ordinary shares for the exercise of the warrants issued on February 28, 2023.\n\n \n\nOn July 24,\n2023, the Company entered into a securities purchase agreement (the “Agreement 4”) with certain accredited investors (the\n“Purchasers 4”), pursuant to which the Company agreed to sell to the Purchasers 4 an aggregate of 88,105,727 ordinary shares.\nThe net proceeds from the transactions were $30,000,000, after deducting certain fees due to the placement agent and the Company’s\ntransaction expenses, and will be used for working capital and general corporate purposes.\n\n \n\nOn August 3,\n2023, the Company entered into a securities purchase agreement (the “Agreement 5”) with certain purchasers listed on the signature\npages thereto (the “Purchasers 5”), in connection with the offer and sale (the “Offering”) of an aggregate of\n44,117,648 ordinary shares of the Company. The net proceeds from the transactions were $15,000,000, after deducting certain fees due to\nthe placement agent and the Company’s transaction expenses, and will be used for working capital and general corporate purposes.\n\n \n\nOn October 4,\n2023, the Company issued $2,220,000 convertible note at eighty percent of the face value to a certain purchaser (the “Purchaser\n6”). On the same day, all of the issued convertible note was converted into common shares at conversion price of US$0.5 for 5,550,000\nshares.\n\n \n\nUpon execution\nof 1-for-20 Share Consolidation in November 2023, the Company recognized additional 33,434 shares of ordinary share due\nto round up.\n\n \n\nFrom December\n21, 2023 to December 28, 2023, the Company issued $727,762 convertible note at eighty percent of the face value to some purchasers (the\n“Purchasers 7”). On the same day, all of the issued convertible note was converted into common shares at conversion price\nof US$0.67 for 1,348,985 shares.\n\n \n\nOn December\n22, 2023, the Company entered into a securities purchase agreement (the “Agreement 6”) with certain accredited investors (the\n“Purchasers 6”), pursuant to which the Company agreed to sell to the Purchasers 6 an aggregate of 1,720,000 ordinary shares\non December 28, 2023. The net proceeds from the transactions were $1,184,676, and received on January 10, 2024. The commitment share of\n471,698 shares were issued on January 5, 2024 to the purchase with nil consideration.\n\n \n\nOn January 8, 2024, pursuant to the Agreement 6, the\nCompany agreed to sell to this purchaser 2,040,000 ordinary shares for a consideration of $1,020,000. From January 26, 2024 to January\n28, 2024, the Company issued 2,040,000 shares to this purchaser.\n\n \n\nOn February 12, 2024, pursuant to the Agreement 6,\nthe Company agreed to sell to this purchaser 2,640,000 ordinary shares for a consideration of $3,492,720. On February 14, 2024, the Company\nissued 2,640,000 shares to this purchaser.\n\n \n\nF-34\n\n \n\n \n\nUpon execution of 1-for-8 share consolidation in March,\n2024, the Company recognized additional 62,236 shares of ordinary share due to round up, and retroactively restated the financial statement.\n\n \n\nOn May 2, 2024, the Company effected a capital reduction\nto reduce the par value of each of the then issued Consolidated Shares from US$4.00 to US$0.00001 by cancelling the paid-up capital of\nthe Company to the extent of US$3.99999 on each of the then issued Consolidated Shares. Immediately following the Capital Reduction, the\nCompany sub-divided the balance of each unissued Consolidated Share in the authorized share capital of the Company into 400,000 ordinary\nshares with par value of US$0.00001 each in the share capital of the Company. Immediately following the Capital Reduction and Share Subdivision,\nthe authorized share capital of the Company was changed to US$50,000,000 divided into 5,000,000,000,000 ordinary shares of par value US$0.00001\neach through the cancellation of excess authorized but unissued shares, which impacted between ordinary shares capital and additional\npaid-in capital.\n\n \n\nOn December 24, 2024, $3,643,500 convertible bonds\nwere converted into common shares at conversion price of US$1.05 for 3,470,000 shares.\n\n \n\nOn January 24, 2025, $3,360,141 convertible bonds\nwere converted into common shares at conversion price of US$1.2301 for 2,731,600 shares.\n\n \n\nAs a result, the Company had 5,000,000,000,000 authorized\nordinary shares, par value $0.00001 per share, of which 8,188,574 and 5,456,974 shares were issued and outstanding as of December 31,\n2025 and 2024, respectively.\n\n \n\nSubscription receivable\n\n \n\nIn connection with the sale of 1,720,000 ordinary\nshares on December 28, 2023, the Company received the net proceeds from the investors on January 10, 2024 amounting to $1,184,676.\n\n \n\nWarrants\n\n \n\nIn connection with the IPO, on April 22, 2021, the\nCompany issued warrants to purchase 625,000 ordinary shares at $5 per share, are exercisable upon issuance and will expire on March 31,\n2026 which is five years from the effective of the registration statement. As of December 31, 2024, the Company had warrants to purchase\n156 ordinary shares outstanding with an exercise price of $16,000 per share (Upon the 1-for-5 Share Consolidation On September 9,\n2022, 1-for-5 Share Consolidation in May 2023, 1-for-20 Share Consolidation in November 2023 and 1-for-8 Share Consolidation in March\n2024, the warrants have retroactively restated) and remaining lives of 1.25 years.\n\n \n\nIn connection with the issuance of Unit in February\n28, 2023, the Company issued warrants to purchase 5,384,400 ordinary shares at $1.3 per share by negotiated with the investor, with cashless\nconversion conditions, are exercisable upon issuance and will expire on August 31, 2028 which is five years and 6 months from effective\nof the issuance date. On May 31, 2023, the purchasers exercised part of the warrants to convert to 499,980 ordinary shares, after consideration\nof 1-for-5 Share Consolidation in May 2023 under the cashless considerations. As of December 31, 2024, the Company had warrants to purchase\n3,606 ordinary shares outstanding with an exercise price of $1,040 per share ((Upon the 1-for-5 Share Consolidation On September\n9, 2022, 1-for-5 Share Consolidation in May 2023, 1-for-20 Share Consolidation in November 2023 and 1-for-8 Share Consolidation in March\n2024, the warrants have been retroactively restated) and remaining lives of 2.67 years.\n\n \n\nFollowing is a summary of the status of warrants outstanding\nand exercisable as of December 31, 2025:\n\n \n\nSchedule of warrants outstanding  \n    \n   \n\n  \nWarrants \nWeighted Average Exercise Price\n\nWarrants outstanding, as of December 31, 2023, 2024 and 2025  \n 3,762  \n$1,661.4 \n\n   \n 　  \n 　 \n\nWarrants exercisable, as of December 31, 2025  \n 3,762  \n$1,661.4 \n\n** **\n\n****\n\nF-35\n\n \n\n** **\n\n****\n\nShare-based compensation\n\n \n\nDuring the year ended December 31, 2021, the Company\ngranted 70,000 ordinary shares to two consulting firms based on grant date fair value of $150,600 to be amortized over stated services\nperiod. For the year ended December 31, 2025, 2024, and 2023, all of share-based compensation expenses amounted to nil. As of December\n31, 2025, the share-based compensations had been fully amortized by the Company.\n\n \n\nRestricted assets\n\n \n\nThe Company’s ability to pay dividends is primarily\ndependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments\nof dividends by Infobird WFOE, Infobird Beijing, Infobird Anhui, Infobird Guiyang, Shanghai Qishuo, Anhui Weiao, and Guangnian Zhiyuan\n(collectively “Infobird PRC entities”) only out of their retained earnings, if any, as determined in accordance with PRC accounting\nstandards and regulations. The results of operations reflected in the accompanying consolidated financial statements prepared in accordance\nwith U.S. GAAP differ from those reflected in the statutory financial statements of Infobird PRC entities.\n\n \n\nInfobird PRC entities are required to set aside at\nleast 10% of their after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of\nits registered capital. In addition, Infobird PRC entities may allocate a portion of its after-tax profits based on PRC accounting standards\nto enterprise expansion fund and staff bonus and welfare fund at its discretion. Infobird PRC entities may allocate a portion of its\nafter-tax profits based on PRC accounting standards to a discretionary surplus fund at its discretion. The statutory reserve funds and\nthe discretionary funds are not distributable as cash dividends. Remittance of dividends by a wholly foreign-owned company out of China\nis subject to examination by the banks designated by State Administration of Foreign Exchange.\n\n \n\nAs a result\nof the foregoing restrictions, the Infobird PRC entities are subject to limitations on their ability to transfer assets to the Company.\nIn addition, PRC foreign exchange controls and other applicable regulations may further restrict the ability of these entities to remit\nfunds to the Company in the form of dividends, loans, or advances. As of December 31, 2025 and 2024, the amounts subject to such restrictions\nprimarily consisted of the paid-in capital, registered capital, and statutory reserves of the Infobird PRC entities, which amounted to\n$1.5 million as of each respective date.\n\n \n\nStatutory reserves\n\n \n\nDuring the years ended December 31, 2025, 2024 and\n2023, Infobird PRC entities did not attribute any retained earnings for their statutory reserves.\n\n \n\n**Note\n16 – Commitments and contingencies**\n\n \n\nLegal\n\n \n\nFrom time to time, the Company is party to certain\nlegal proceedings, as well as certain asserted and un-asserted claims. Amounts accrued, as well as the total amount of reasonably possible\nlosses with respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements.\n\n \n\nOperating Lease Commitment\n\n \n\nThe Company leases office space under non-cancelable\noperating lease agreements, which end at various dates in 2027. The Company does not plan to cancel the existing lease agreements for\nits existing facilities prior to their respective expiration dates. When determining the lease term, the Company considers options to\nextend or terminate the lease when it is reasonably certain that it will exercise or not exercise that option. The Company’s leases\nover 1 year qualify as operating leases. As of December 31, 2025, the Company’s operating leases had a weighted average remaining\nlease term of 1.5 years and a weighted average discount rate of 3.66%. Future lease payments\nunder operating leases as of December 31, 2025 were as follows:\n\n \n\nF-36\n\n \n\n \n\n Schedule of operating leases\n \n \n \n \n\n \n \nDecember 31, 2025\n\n \n \n \n\n2026\n \n$\n268,275\n \n\n2027\n \n \n104,725\n \n\nTotal undiscounted lease payments\n \n$\n373,000\n \n\nLess imputed interest\n \n \n9,172\n \n\nTotal lease liabilities\n \n$\n363,828\n \n\n \n\nFor the years ended December 31, 2025, 2024 and\n2023, the Company had operating lease costs of $263,770,\n$3,739, and 0\nnil. Cash paid for amounts included in the measurement of operating lease liabilities were $223,073,\n$121,951,\nand 0 nil during the years ended December 31, 2025, 2024 and 2023, respectively.\n\n \n\n**Note\n17 – Segment information and revenue analysis**\n\n \n\nThe Company follows ASC 280, Segment Reporting, which\nrequires that companies disclose segment data based on how management makes decisions about allocating resources to each segment and\nevaluating their performances. The Company has one reporting segment. The Company’s chief operating decision maker has been identified\nas the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance\nof the Company and hence the Company has only one reportable segment. The Company does not distinguish between markets or segments for\nthe purpose of internal reporting. The Company’s long-lived assets are substantially all located in the PRC and all of the Company’s\nrevenues are derived from the PRC and Hong Kong.\n\n \n\nDisaggregated information of revenues from discontinued operations by business\nlines are as follows:\n\n \n\nSchedule\nof disaggregated information of revenues from discontinued operations\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n \nFor the year ended December 31,\n\n \n \n2025\n \n2024\n \n2023\n\n \n \n \n \n \n \n \n\nStandard cloud-based services\n \n$\n—\n \n \n$\n—\n \n \n$\n879,873\n \n\nBPO services\n \n \n—\n \n \n \n—\n \n \n \n1,092,397\n \n\nBusiness integration services\n \n \n—\n \n \n \n—\n \n \n \n422,605\n \n\nOther revenues\n \n \n—\n \n \n \n—\n \n \n \n194,948\n \n\nTotal revenues\n \n$\n—\n \n \n$\n—\n \n \n$\n2,589,823\n \n\n****\n\n** **\n\nDisaggregated information of revenues from continuing operations by business\nlines are as follows:\n\n \n\nSchedule\nof disaggregated information of revenues from continuing operations\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n \nFor the year ended December 31,\n\n \n \n2025\n \n2024\n \n2023\n\n \n \n \n \n \n \n \n\nBusiness integration services\n \n$\n—\n \n \n$\n20,000\n \n \n$\n280,000\n \n\nDigital advertising and marketing campaign services\n \n \n8,706,740\n \n \n \n1,417,848\n \n \n \n—\n \n\nTotal revenues\n \n$\n8,706,740\n \n \n$\n1,437,848\n \n \n$\n280,000\n \n\n** **\n\n****\n\nDisaggregated information of revenues by geography are as follows:\n\n \n\nSchedule of disaggregated\ninformation of revenues by geography\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n \nFor the year ended December 31,\n\n \n \n2025\n \n2024\n \n2023\n\n \n \n \n \n \n \n \n\nMainland China\n \n$\n8,706,740\n \n \n$\n1,417,848\n \n \n$\n2,589,823\n \n\nOutside Mainland China\n \n \n—\n \n \n \n20,000\n \n \n \n280,000\n \n\nTotal revenues\n \n$\n8,706,740\n \n \n$\n1,437,848\n \n \n$\n2,869,823\n \n\n****\n\n** **\n\n****\n\n**Note\n18 – Subsequent Events**\n\n \n\nThe following subsequent events were\nevaluated on June 12, 2026, the date the financial statements were issued.\n\n \n\nDuring the period from January 1, 2026 to June 12, 2026, the Company withdrew additional $634,237\n(RMB 4,435,280) from the loan mentioned in Note 10. The maturity date of the loan is 12 months, with an interest rate of 2.65%\nper annum.\n\n \n\nOn March 27, 2026, the Company obtained a loan\nfrom Bank of China of $1,429,981\n(RMB 10,000,000), which is guaranteed by Hong Wan. The loan bears an interest rate of 2.24%\nper annum and matures on March\n26, 2027.\n\n \n\nOn March 16,\n2026, the Company entered into a borrowing agreement with a third party, pursuant to which the Company provides a loan facility of $4,289,943\n(RMB 30,000,000) to the third party. As of June 12, 2026, the balance of loan lent to the third party is $4,146,945\n(RMB 29,000,000).\n\n \n\nOn April 10,\n2026, the Company entered into a borrowing agreement with a third party, pursuant to which the Company provides a loan facility of $714,990\n(RMB 5,000,000) to the third party. As of June 12, 2026, the balance of loan lent to the third party is $571,993 (RMB 4,000,000).\n\n \n\nF-37"}