2022 Q4 Form 10-Q Financial Statement

#000149315222032179 Filed on November 14, 2022

View on sec.gov

Income Statement

Concept 2022 Q4 2022 Q3 2021 Q4
Revenue $1.196M $672.8K $702.4K
YoY Change 70.3% -17.24% 3.76%
Cost Of Revenue $1.015M $619.7K $668.2K
YoY Change 51.93% 37.33% 324.77%
Gross Profit $181.1K $53.08K $34.24K
YoY Change 428.77% -85.32% -93.41%
Gross Profit Margin 15.14% 7.89% 4.87%
Selling, General & Admin $705.2K $426.5K $658.3K
YoY Change 7.12% -6.31% 74.6%
% of Gross Profit 389.51% 803.43% 1922.72%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $102.7K $25.70K $74.20K
YoY Change 38.34% 132.79% 734.65%
% of Gross Profit 56.7% 48.42% 216.71%
Operating Expenses $705.2K $1.207M $658.3K
YoY Change 7.12% 165.1% 74.6%
Operating Profit -$524.2K -$533.9K -$624.1K
YoY Change -16.01% 470.96% -537.75%
Interest Expense $1.240K $1.020K $1.030K
YoY Change 20.39% 70.0% -87.17%
% of Operating Profit
Other Income/Expense, Net $7.990K -$3.840M $15.73K
YoY Change -49.21% -18472.87% 5950.0%
Pretax Income -$514.9K -$4.374M -$607.3K
YoY Change -15.22% 5973.92% -502.59%
Income Tax $450.00 -$322.00 -$17.83K
% Of Pretax Income
Net Earnings -$515.4K -$4.374M -$589.5K
YoY Change -12.58% 2893.51% 215.34%
Net Earnings / Revenue -43.08% -650.06% -83.93%
Basic Earnings Per Share -$0.09
Diluted Earnings Per Share -$0.02 -$87.47K -$11.79K
COMMON SHARES
Basic Shares Outstanding 50.00M shares 50.00M shares
Diluted Shares Outstanding 25.00M shares

Balance Sheet

Concept 2022 Q4 2022 Q3 2021 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $510.1K $5.299M $8.557M
YoY Change -94.04% 60.67% 11.46%
Cash & Equivalents $510.1K $5.299M $8.557M
Short-Term Investments
Other Short-Term Assets $213.7K $295.1K $63.27K
YoY Change 237.71% -0.09% 301.97%
Inventory $499.3K $857.8K $233.5K
Prepaid Expenses
Receivables $562.6K $196.4K $45.92K
Other Receivables $83.10K $25.56K $143.3K
Total Short-Term Assets $1.976M $6.826M $9.206M
YoY Change -78.53% 64.1% 16.14%
LONG-TERM ASSETS
Property, Plant & Equipment $1.972M $1.911M $290.1K
YoY Change 579.58% -20.7% 72.86%
Goodwill $3.824M
YoY Change
Intangibles $1.269K $1.393K $1.940K
YoY Change -34.59%
Long-Term Investments $86.99K $84.35K $94.15K
YoY Change -7.6% -9.42%
Other Assets $15.56K $15.52K $18.80K
YoY Change -17.23%
Total Long-Term Assets $3.075M $3.186M $2.455M
YoY Change 25.26% 27.16% 1362.5%
TOTAL ASSETS
Total Short-Term Assets $1.976M $6.826M $9.206M
Total Long-Term Assets $3.075M $3.186M $2.455M
Total Assets $5.051M $10.01M $11.66M
YoY Change -56.68% 50.21% 44.06%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $398.5K $508.0K $406.2K
YoY Change -1.89% 18.58% 938.25%
Accrued Expenses $3.156M $6.616M $1.559M
YoY Change 102.44% 318.92% 179.19%
Deferred Revenue
YoY Change
Short-Term Debt $86.99K $84.35K $94.15K
YoY Change -7.6% -81.79%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $5.322M $9.287M $4.452M
YoY Change 19.55% 178.12% 279.72%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $194.7K $382.2K $1.139M
YoY Change -82.9% -68.31% 3793.03%
Total Long-Term Liabilities $194.7K $382.2K $1.139M
YoY Change -82.9% -68.31% 3793.03%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.322M $9.287M $4.452M
Total Long-Term Liabilities $194.7K $382.2K $1.139M
Total Liabilities $5.517M $9.669M $5.591M
YoY Change -1.32% 112.74% 365.23%
SHAREHOLDERS EQUITY
Retained Earnings -$15.25M -$14.73M -$8.881M
YoY Change 71.72%
Common Stock $250.00 $500.00 $500.00
YoY Change -50.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$466.2K $342.1K $6.069M
YoY Change
Total Liabilities & Shareholders Equity $5.051M $10.01M $11.66M
YoY Change -56.68% 50.21% 44.06%

Cashflow Statement

Concept 2022 Q4 2022 Q3 2021 Q4
OPERATING ACTIVITIES
Net Income -$515.4K -$4.374M -$589.5K
YoY Change -12.58% 2893.51% 215.34%
Depreciation, Depletion And Amortization $102.7K $25.70K $74.20K
YoY Change 38.34% 132.79% 734.65%
Cash From Operating Activities -$212.0K -$641.1K -$603.9K
YoY Change -64.89% -703.23% -485.15%
INVESTING ACTIVITIES
Capital Expenditures $104.2K -$52.49K -$1.340K
YoY Change -7878.36% 6600.0%
Acquisitions
YoY Change
Other Investing Activities -$3.812M $446.4K -$19.65K
YoY Change 19299.64% 428.57% -137.94%
Cash From Investing Activities -$3.916M $393.9K -$20.99K
YoY Change 18557.79% 366.43% -140.54%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -863.7K -2.305M 5.815M
YoY Change -114.85% 1456.72% -953.78%
NET CHANGE
Cash From Operating Activities -212.0K -641.1K -603.9K
Cash From Investing Activities -3.916M 393.9K -20.99K
Cash From Financing Activities -863.7K -2.305M 5.815M
Net Change In Cash -4.992M -2.552M 5.190M
YoY Change -196.19% -6082.26% -1198.4%
FREE CASH FLOW
Cash From Operating Activities -$212.0K -$641.1K -$603.9K
Capital Expenditures $104.2K -$52.49K -$1.340K
Free Cash Flow -$316.3K -$588.6K -$602.5K
YoY Change -47.51% -653.83% -484.24%

Facts In Submission

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CY2021Q3 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
6638 usd
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-152137 usd
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
83762 usd
CY2022Q3 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-4512564 usd
CY2021Q3 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-139466 usd
us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-6005998 usd
us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
406045 usd
CY2022Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.087
CY2021Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.003
us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.117
us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.006
CY2022Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
49999891 shares
CY2021Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
49999891 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
49999891 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
49999891 shares
CY2021Q4 us-gaap Stockholders Equity
StockholdersEquity
6069491 usd
CY2022Q1 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
92885 usd
CY2022Q1 us-gaap Net Income Loss
NetIncomeLoss
-752081 usd
CY2022Q1 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
31864 usd
CY2022Q1 us-gaap Stockholders Equity
StockholdersEquity
5442159 usd
CY2022Q2 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
92885 usd
CY2022Q2 us-gaap Net Income Loss
NetIncomeLoss
-728269 usd
CY2022Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-44948 usd
CY2022Q2 us-gaap Stockholders Equity
StockholdersEquity
4761827 usd
CY2022Q3 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
92885 usd
CY2022Q3 us-gaap Net Income Loss
NetIncomeLoss
-4373511 usd
CY2022Q3 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-139053 usd
CY2022Q3 us-gaap Stockholders Equity
StockholdersEquity
342148 usd
CY2020Q4 us-gaap Stockholders Equity
StockholdersEquity
6892082 usd
CY2021Q1 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
92885 usd
CY2021Q1 us-gaap Net Income Loss
NetIncomeLoss
221702 usd
CY2021Q1 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-32609 usd
CY2021Q1 us-gaap Stockholders Equity
StockholdersEquity
7174060 usd
CY2021Q2 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
92885 usd
CY2021Q2 us-gaap Net Income Loss
NetIncomeLoss
246685 usd
CY2021Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
109733 usd
CY2021Q2 us-gaap Stockholders Equity
StockholdersEquity
7623363 usd
CY2021Q3 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
92885 usd
CY2021Q2 us-gaap Stockholders Equity
StockholdersEquity
7623363 usd
CY2021Q3 AIXN Acquisition Of Subsidiaries
AcquisitionOfSubsidiaries
-7905941 usd
CY2021Q3 us-gaap Debt Instrument Decrease Forgiveness
DebtInstrumentDecreaseForgiveness
2448654 usd
CY2021Q3 us-gaap Net Income Loss
NetIncomeLoss
-146104 usd
CY2021Q3 us-gaap Net Income Loss
NetIncomeLoss
-146104 usd
CY2021Q3 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
6638 usd
CY2021Q3 us-gaap Stockholders Equity
StockholdersEquity
2119495 usd
CY2021Q3 us-gaap Stockholders Equity
StockholdersEquity
2119495 usd
us-gaap Net Income Loss
NetIncomeLoss
-5853861 usd
us-gaap Net Income Loss
NetIncomeLoss
322283 usd
us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
82921 usd
us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
21910 usd
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
115495 usd
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
17883 usd
us-gaap Operating Lease Expense
OperatingLeaseExpense
632496 usd
us-gaap Operating Lease Expense
OperatingLeaseExpense
217642 usd
us-gaap Share Based Compensation
ShareBasedCompensation
278655 usd
us-gaap Share Based Compensation
ShareBasedCompensation
278655 usd
us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
1419 usd
us-gaap Impairment Of Intangible Assets Finitelived
ImpairmentOfIntangibleAssetsFinitelived
3823770 usd
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
126720 usd
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
12806 usd
us-gaap Increase Decrease In Accounts Receivable Related Parties
IncreaseDecreaseInAccountsReceivableRelatedParties
-13618 usd
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
-100801 usd
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
-22975 usd
us-gaap Increase Decrease In Prepaid Supplies
IncreaseDecreaseInPrepaidSupplies
-13038 usd
us-gaap Increase Decrease In Prepaid Supplies
IncreaseDecreaseInPrepaidSupplies
116795 usd
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
192791 usd
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
18728 usd
us-gaap Increase Decrease In Other Accounts Payable
IncreaseDecreaseInOtherAccountsPayable
58507 usd
us-gaap Increase Decrease In Other Accounts Payable
IncreaseDecreaseInOtherAccountsPayable
-748 usd
us-gaap Increase Decrease In Accounts Payable Related Parties
IncreaseDecreaseInAccountsPayableRelatedParties
143242 usd
us-gaap Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
-9444 usd
us-gaap Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
13136 usd
us-gaap Increase Decrease In Accrued Taxes Payable
IncreaseDecreaseInAccruedTaxesPayable
-187009 usd
us-gaap Increase Decrease In Accrued Taxes Payable
IncreaseDecreaseInAccruedTaxesPayable
46672 usd
us-gaap Operating Lease Payments
OperatingLeasePayments
525979 usd
us-gaap Operating Lease Payments
OperatingLeasePayments
217642 usd
us-gaap Increase Decrease In Accrued Liabilities And Other Operating Liabilities
IncreaseDecreaseInAccruedLiabilitiesAndOtherOperatingLiabilities
232910 usd
us-gaap Increase Decrease In Accrued Liabilities And Other Operating Liabilities
IncreaseDecreaseInAccruedLiabilitiesAndOtherOperatingLiabilities
-41986 usd
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-1412550 usd
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
546069 usd
us-gaap Cash Acquired From Acquisition
CashAcquiredFromAcquisition
446381 usd
us-gaap Cash Acquired From Acquisition
CashAcquiredFromAcquisition
87448 usd
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
52485 usd
AIXN Prepayment For Acquisition
PrepaymentForAcquisition
4497972 usd
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
393896 usd
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-4410524 usd
us-gaap Proceeds From Repayments Of Related Party Debt
ProceedsFromRepaymentsOfRelatedPartyDebt
-1525860 usd
us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
78415 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-3222047 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-4378854 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
8600853 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-592814 usd
us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
-677533 usd
us-gaap Proceeds From Repayments Of Related Party Debt
ProceedsFromRepaymentsOfRelatedPartyDebt
-592814 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-1525860 usd
CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
7676689 usd
CY2022Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
5378806 usd
CY2021Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
3297835 usd
us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
72495 usd
us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
282319 usd
AIXN Accrual Of Unpaid Investment In Subsidiary
AccrualOfUnpaidInvestmentInSubsidiary
3907139 usd
us-gaap Transfer To Investments
TransferToInvestments
734290 usd
us-gaap Use Of Estimates
UseOfEstimates
<p id="xdx_847_eus-gaap--UseOfEstimates_zyIrkSK2ph9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><b>Use of Estimates</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">In preparing consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Significant estimates, required by management, include the recoverability of long-lived assets, allowance for doubtful accounts, and the reserve for obsolete and slow-moving inventories. Actual results could differ from those estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<p id="xdx_849_eus-gaap--PriorPeriodReclassificationAdjustmentDescription_zsEyr14rzDml" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><b>Reclassification</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Certain prior period amounts have been reclassified to conform to the current period presentation and had no effect on previously reported consolidated net income (loss) or accumulated deficit.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2022Q3 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
483346 usd
CY2021Q4 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
213787 usd
CY2022Q3 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
19641 usd
CY2021Q4 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
0 usd
CY2022Q3 us-gaap Property Plant And Equipment Salvage Value Percentage
PropertyPlantAndEquipmentSalvageValuePercentage
0.05 pure
CY2022Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
672786 usd
CY2021Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
812910 usd
CY2022Q3 us-gaap Impairment Of Intangible Assets Finitelived
ImpairmentOfIntangibleAssetsFinitelived
3823770 usd
us-gaap Revenue Recognition Deferred Revenue
RevenueRecognitionDeferredRevenue
<p id="xdx_840_eus-gaap--RevenueRecognitionDeferredRevenue_zf0dagH6zoi2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><b>Unearned Revenue</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The Company’s unearned revenue primarily consists of advances received from customers for the rental of hotel rooms prior to the delivery of service. The room rental services are delivered (normally within one year) based upon contract terms and customer demand.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p id="xdx_840_eus-gaap--ConcentrationRiskCreditRisk_znBvEbWMlqdk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><b>Concentration of Credit Risk</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The operations of the Company are in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, and by the general state of the PRC economy.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The Company has cash on hand and demand deposits in accounts maintained with state-owned banks within the PRC. Cash in state-owned banks is covered by insurance up to RMB <span id="xdx_90B_eus-gaap--CashFDICInsuredAmount_iI_pp0p0_uRMB_c20220930_zXkQKqmane15">500,000</span> ($<span id="xdx_90C_eus-gaap--CashFDICInsuredAmount_iI_pp0p0_uUSD_c20220930_zeQyYhuh9Zv5" title="Cash FDIC insured amount">72,500</span>) per bank. The Company has not experienced any losses in such accounts and believes they are not exposed to any risks on its cash in these bank accounts.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">During the three and nine months ended September 30, 2022, the Company had no customer that accounted for over 10% of its total revenue.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_89A_eus-gaap--SchedulesOfConcentrationOfRiskByRiskFactorTextBlock_zd8JRuB0qlVj" style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">During the three months ended September 30, 2021, the Company had two major customers <span style="background-color: white">that </span> accounted for over 10% of its total revenue.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_8B3_zt2nOtZMB0i8" style="display: none">SCHEDULE OF CONCENTRATION OF RISK BY RISK FACTORS</span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold">Customer</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total revenue for the three months ended<br/> September 30, 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">% of total revenue</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_F43_znXUMfQRbjib" style="width: 60%">A(1)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20210701__20210930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerAMember_fKDEp_zUpMHofdkV62" style="width: 16%; text-align: right" title="Total revenue">146,140</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210701__20210930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerAMember_fKDEp_zbc40lIi2Ema">18</span></td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>B</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20210701__20210930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerBMember_zbOPHELa9S55" style="text-align: right" title="Total revenue">299,076</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210701__20210930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerBMember_fKg_____z4CPiKlDEgo6">37</span></td><td style="text-align: left">%</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">During the nine months ended September 30, 2021, the Company had two major customers <span style="background-color: white">that </span> accounted for over 10% of its total revenue.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold">Customer</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total revenue for the nine<br/> months ended<br/> September 30, 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">% of total revenue</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_F46_zkpLIb4JJfD7" style="width: 60%">A(1)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20210101__20210930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerAMember_fKDEp_zaD42LmDjwt9" style="width: 16%; text-align: right" title="Total revenue">1,152,208</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerAMember_fKDEp_z9HMwYagYsIi">49</span></td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>B</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_pp0p0_c20210101__20210930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerBMember_zjQr2NnTGso3" style="text-align: right" title="Total revenue">590,688</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerBMember_fKg_____zseaBusW5tJd">25</span></td><td style="text-align: left">%</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">During the three months ended September 30, 2022, the Company had one major supplier that accounted for over 10% of its total purchases.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold">Supplier</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Net purchases for the<br/> three months ended<br/> September 30, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">% of total purchase</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_F49_zNJrajyaYAE8" style="width: 60%">C(2)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_ecustom--PurchaseCost_pp0p0_c20220701__20220930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfSalesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SupplierCMember_fKDIp_zeZyCXhDA3I" style="width: 16%; text-align: right" title="Total purchases">88,948</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20220701__20220930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfSalesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SupplierCMember_fKDIp_zeJ5bzSFWThh" style="width: 16%; text-align: right">35</td><td style="width: 1%; text-align: left">%</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">During the nine months ended September 30, 2022, the Company had one major supplier that accounted for over 10% of its total purchases.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold">Supplier</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Net purchases for the<br/> nine months ended<br/> September 30, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">% of total purchase</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_F4A_zOFFm0Ehi6jj" style="width: 60%">C(2)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_ecustom--PurchaseCost_pp0p0_c20220101__20220930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfSalesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SupplierCMember_fKDIp_z7UvSF5T57Wh" style="width: 16%; text-align: right" title="Total purchases">152,629</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98E_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20220101__20220930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfSalesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SupplierCMember_fKDIp_zBe4gp9DUSN1" style="width: 16%; text-align: right">20</td><td style="width: 1%; text-align: left">%</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">During the three months ended September 30, 2021, the Company had no supplier that accounted for over 10% of its total purchase. </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">During the nine months ended September 30, 2021, the Company had one major supplier accounted for over 10% of its total purchase.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; font-weight: bold">Supplier</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Net purchases for the<br/> nine months ended<br/> September 30, 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">% of total purchase</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">D</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_ecustom--PurchaseCost_pp0p0_c20210101__20210930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfSalesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SupplierDMember_fKDIp_zqzQfYJ0cg9l" style="width: 16%; text-align: right" title="Total purchases">232,584</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98C_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfSalesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SupplierDMember_fKDIp_zqR4eNHf3vB4" style="width: 16%; text-align: right">69</td><td style="width: 1%; text-align: left">%</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.25in"><span id="xdx_F0A_zBCqkJxkLhqa" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F13_zlzsnw7pM4be" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represented advertising revenues from this customer during the three and nine months ended September 30, 2021. The Company also purchased inventory from this customer in the three and nine months ended September 30, 2021.</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F07_zj72p0dY4z0a" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F13_zbomqnsnOEy" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company purchased inventory from this supplier, Runcansheng, in the three and nine months ended September 30, 2022. The Company acquired all of the outstanding equity of Runcangsheng on September 30, 2022 (see Note 17).</span></td></tr> </table> <p id="xdx_8A2_z4d5WMe77Rel" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2022Q3 us-gaap Cash Fdic Insured Amount
CashFDICInsuredAmount
500000
CY2022Q3 us-gaap Cash Fdic Insured Amount
CashFDICInsuredAmount
72500 usd
CY2022Q3 us-gaap Operating Costs And Expenses
OperatingCostsAndExpenses
1206690 usd
CY2021Q3 us-gaap Operating Costs And Expenses
OperatingCostsAndExpenses
906419 usd
CY2022Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-533904 usd
CY2021Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-93509 usd
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1512351 usd
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
2363836 usd
us-gaap Operating Costs And Expenses
OperatingCostsAndExpenses
3557647 usd
us-gaap Operating Costs And Expenses
OperatingCostsAndExpenses
1766671 usd
us-gaap Operating Income Loss
OperatingIncomeLoss
-2045296 usd
us-gaap Operating Income Loss
OperatingIncomeLoss
597165 usd
CY2022Q3 us-gaap Assets
Assets
10011149 usd
CY2021Q4 us-gaap Assets
Assets
11660346 usd
CY2022Q3 us-gaap Deposit Assets
DepositAssets
14928 usd
CY2021Q4 us-gaap Deposit Assets
DepositAssets
68433 usd
CY2022Q3 us-gaap Prepaid Expense Current And Noncurrent
PrepaidExpenseCurrentAndNoncurrent
122150 usd
CY2021Q4 us-gaap Prepaid Expense Current And Noncurrent
PrepaidExpenseCurrentAndNoncurrent
50221 usd
CY2022Q3 us-gaap Estimated Insurance Recoveries
EstimatedInsuranceRecoveries
10584 usd
CY2021Q4 us-gaap Estimated Insurance Recoveries
EstimatedInsuranceRecoveries
13839 usd
CY2022Q3 us-gaap Other Assets
OtherAssets
14978 usd
CY2021Q4 us-gaap Other Assets
OtherAssets
10788 usd
CY2022Q3 us-gaap Prepaid Expense And Other Assets
PrepaidExpenseAndOtherAssets
162640 usd
CY2021Q4 us-gaap Prepaid Expense And Other Assets
PrepaidExpenseAndOtherAssets
143281 usd
CY2022Q3 us-gaap Supplies
Supplies
137362 usd
CY2021Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
751071 usd
CY2022Q3 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
829085 usd
CY2021Q4 us-gaap Supplies
Supplies
162969 usd
CY2022Q3 us-gaap Inventory Raw Materials
InventoryRawMaterials
152140 usd
CY2022Q3 us-gaap Inventory Work In Process
InventoryWorkInProcess
4600 usd
CY2022Q3 us-gaap Inventory Finished Goods
InventoryFinishedGoods
183148 usd
CY2021Q4 us-gaap Inventory Finished Goods
InventoryFinishedGoods
6201 usd
CY2022Q3 AIXN Inventory Drugs Pharmaceutical And Nutritional Products Gross
InventoryDrugsPharmaceuticalAndNutritionalProductsGross
454165 usd
CY2021Q4 AIXN Inventory Drugs Pharmaceutical And Nutritional Products Gross
InventoryDrugsPharmaceuticalAndNutritionalProductsGross
122966 usd
CY2022Q3 AIXN Inventory Food And Beverage Hotel Supplies And Consumables Gross
InventoryFoodAndBeverageHotelSuppliesAndConsumablesGross
83342 usd
CY2021Q4 AIXN Inventory Food And Beverage Hotel Supplies And Consumables Gross
InventoryFoodAndBeverageHotelSuppliesAndConsumablesGross
104287 usd
CY2022Q3 us-gaap Inventory Gross
InventoryGross
877395 usd
CY2021Q4 us-gaap Inventory Gross
InventoryGross
233454 usd
CY2022Q3 AIXN Inventory Allowance
InventoryAllowance
19641 usd
CY2022Q3 us-gaap Inventory Net
InventoryNet
857754 usd
CY2021Q4 us-gaap Inventory Net
InventoryNet
233454 usd
CY2022Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
2739776 usd
CY2021Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
460923 usd
CY2022Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
1910691 usd
CY2021Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
290148 usd
CY2022Q3 us-gaap Depreciation And Amortization
DepreciationAndAmortization
25111 usd
CY2021Q3 us-gaap Depreciation And Amortization
DepreciationAndAmortization
10608 usd
us-gaap Depreciation And Amortization
DepreciationAndAmortization
81036 usd
us-gaap Depreciation And Amortization
DepreciationAndAmortization
21478 usd
CY2022Q3 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
8479 usd
CY2021Q4 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
7896 usd
CY2022Q3 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
7086 usd
CY2021Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
5956 usd
CY2022Q3 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
1393 usd
CY2021Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
1940 usd
CY2022Q3 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
591 usd
CY2021Q3 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
432 usd
us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
1885 usd
us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
432 usd
CY2022Q3 us-gaap Taxes Payable Current
TaxesPayableCurrent
55942 usd
CY2021Q4 us-gaap Taxes Payable Current
TaxesPayableCurrent
232637 usd
CY2022Q3 us-gaap Accrued Insurance Current
AccruedInsuranceCurrent
258094 usd
CY2021Q4 us-gaap Accrued Insurance Current
AccruedInsuranceCurrent
327735 usd
CY2022Q3 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
264613 usd
CY2021Q4 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
179183 usd
CY2022Q3 us-gaap Accrued Rent Current
AccruedRentCurrent
11625 usd
CY2021Q4 us-gaap Accrued Rent Current
AccruedRentCurrent
29000 usd
CY2022Q3 us-gaap Construction Payable Current
ConstructionPayableCurrent
1463969 usd
CY2021Q4 us-gaap Construction Payable Current
ConstructionPayableCurrent
111807 usd
CY2022Q3 AIXN Payable For Equipment Purchase Current
PayableForEquipmentPurchaseCurrent
20051 usd
CY2022Q3 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
206427 usd
CY2021Q4 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
50840 usd
CY2022Q3 us-gaap Deposit Liability Current
DepositLiabilityCurrent
11668 usd
CY2021Q4 us-gaap Deposit Liability Current
DepositLiabilityCurrent
12239 usd
CY2022Q3 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
44998 usd
CY2021Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
41596 usd
CY2022Q3 us-gaap Business Combination Contingent Consideration Liability Current
BusinessCombinationContingentConsiderationLiabilityCurrent
3622293 usd
CY2022Q3 us-gaap Accounts Payable And Other Accrued Liabilities Current
AccountsPayableAndOtherAccruedLiabilitiesCurrent
5903738 usd
CY2021Q4 us-gaap Accounts Payable And Other Accrued Liabilities Current
AccountsPayableAndOtherAccruedLiabilitiesCurrent
752400 usd
CY2022Q3 us-gaap Due To Related Parties Current And Noncurrent
DueToRelatedPartiesCurrentAndNoncurrent
84347 usd
CY2021Q4 us-gaap Due To Related Parties Current And Noncurrent
DueToRelatedPartiesCurrentAndNoncurrent
94153 usd
CY2022Q3 us-gaap Lessee Operating Lease Term Of Contract
LesseeOperatingLeaseTermOfContract
P2Y
CY2019Q1 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
207049 usd
CY2019Q1 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
1389731
CY2019Q1 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0475 pure
us-gaap Lease Expiration Date1
LeaseExpirationDate1
2021-03-31
CY2022Q3 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
1173616 usd
CY2021Q4 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
2049775 usd
CY2022Q3 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
772632 usd
CY2021Q4 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
848230 usd
CY2022Q3 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
382152 usd
CY2021Q4 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
1138710 usd
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us-gaap Loss Contingency Disclosures
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<p id="xdx_800_eus-gaap--LossContingencyDisclosures_zxs3WbY0dH5l" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><b>16. <span id="xdx_82A_z3l7pifaVSG3">OPERATING CONTINGENCIES</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The Company’s sales, purchases and expenses are denominated in RMB and all of the Company’s assets and liabilities are also denominated in RMB. The RMB is not freely convertible into foreign currencies under the current law. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions. Remittances in currencies other than RMB may require certain supporting documentation to affect the remittance.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><b>Litigation</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The Company is, from time to time, involved in litigation incidental to the conduct of its business regarding merchandise sold, employment matters, and litigation regarding intellectual property rights.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">In December 2020, Jian Yiao (the “Plaintiff”) filed a complaint against Chengdu Aixintang Pharmacy Co., Ltd. (“Aixintang Pharmacy”, or the “Defendant”) in Zhangjiagang People’s Court in Jiangsu Province. The complaint alleges that Jian Yiao is entitled to $<span id="xdx_905_eus-gaap--LongTermPurchaseCommitmentAmount_uUSD_c20201201__20201231__us-gaap--GuaranteeObligationsByNatureAxis__us-gaap--IndemnificationGuaranteeMember_z01ReVyboHZ8" title="Purchase commitment amount">392,305</span> (RMB <span id="xdx_909_eus-gaap--LongTermPurchaseCommitmentAmount_uRMB_c20201201__20201231__us-gaap--GuaranteeObligationsByNatureAxis__us-gaap--IndemnificationGuaranteeMember_zRTSTMhHU901" title="Purchase commitment amount">2,500,000</span>) from Aixintang Pharmacy for not fulfilling the contractual obligation of a purchase agreement entered in March 2020 (the “Purchase Agreement”). Aixintang Pharmacy claimed that the Purchase Agreement was falsely entered by an employee through forged documents, and that Aixintang Pharmacy did not enter the Purchase Agreement. The Court determined that Aixintang Pharmacy breached the Purchase Agreement by not delivering the products ordered and ordered Aixintang Pharmacy to pay $<span id="xdx_909_eus-gaap--LitigationSettlementExpense_uUSD_c20201201__20201231_zHrdYWrEDbJd" title="Litigation settlement expense">392,305</span> (RMB <span id="xdx_90E_eus-gaap--LitigationSettlementExpense_uRMB_c20201201__20201231_zJdnecNOJPA7" title="Litigation settlement expense">2,500,000</span>) to the Plaintiff. In December 2020, Aixintang Pharmacy filed a motion in the Jiangsu Suzhou Intermediate People’s Court against the determination reached from the first trial.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">In February 2021, the judge in the Jiangsu Suzhou Intermediate People’s Court denied the Defendant’s motion and upheld the judgment from the first trial. In March 2021, Aixintang Pharmacy filed another motion to the Jiangsu High People’s Court on the basis that the Purchase Agreement was forged. In February 2022, Aixintang Pharmacy filed an appeal in Jiangsu High People’s Court against the judgment reached by Jiangsu Suzhou Intermediate People’s Court in February 2021. To date, this legal proceeding remains pending.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">In November 2021, the Company and Mr. Quanzhong Lin agreed that Mr. Lin shall assume any losses arising from this legal proceeding. As such, the Company did not accrue contingent losses from this legal proceeding as of September 30, 2022.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The Company believes that current pending litigation will not have a material adverse effect on its consolidated financial position, results of operations or cash flows.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2020Q4 us-gaap Litigation Settlement Expense
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392305 usd
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2500000
CY2022Q3 us-gaap Business Combination Consideration Transferred1
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CY2022Q3 AIXN Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Accounts Receivable
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CY2022Q3 AIXN Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Advance To Suppliers
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3455 usd
CY2022Q3 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Assets Prepaid Expense And Other Assets
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CY2022Q3 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Inventory
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CY2022Q3 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Intangible Assets Other Than Goodwill
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CY2022Q3 AIXN Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Operating Lease Right Use Of Assetst
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1990 usd
CY2022Q3 us-gaap Accrued Liabilities And Other Liabilities
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CY2022Q3 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Accounts Payable
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CY2022Q3 AIXN Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Accounts Payable Related Party
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CY2022Q3 AIXN Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Advance From Customer
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CY2022Q3 AIXN Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Government Grant
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CY2022Q3 AIXN Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Taxes Payable
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CY2022Q3 AIXN Operating Lease Liabilities
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CY2022Q3 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Liabilities
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CY2022Q3 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Net
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNet
477523 usd
CY2022Q3 us-gaap Goodwill
Goodwill
3823770 usd

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