2023 Q3 Form 10-Q Financial Statement

#000149315223029386 Filed on August 18, 2023

View on sec.gov

Income Statement

Concept 2023 Q3 2023 Q2 2022 Q2
Revenue $1.067M $1.476M $420.9K
YoY Change 58.58% 250.7% -50.64%
Cost Of Revenue $960.0K $910.0K $572.1K
YoY Change 54.91% 59.06% 2186.57%
Gross Profit $110.0K $560.0K -$151.2K
YoY Change 107.23% -470.35% -118.27%
Gross Profit Margin 10.31% 37.94% -35.93%
Selling, General & Admin $710.5K $582.0K $474.7K
YoY Change 66.61% 22.6% 78.22%
% of Gross Profit 645.95% 103.93%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $114.3K $88.51K $27.58K
YoY Change 344.75% 220.92% 657.69%
% of Gross Profit 103.91% 15.81%
Operating Expenses $1.802M $1.581M $1.160M
YoY Change 49.35% 36.26% 201.91%
Operating Profit -$735.3K -$104.8K -$739.2K
YoY Change 37.71% -85.83% -257.79%
Interest Expense $0.00 $0.00 $1.280K
YoY Change -100.0% -100.0% 0.79%
% of Operating Profit
Other Income/Expense, Net $297.6K $12.13K $11.44K
YoY Change -107.75% 6.0% -403.74%
Pretax Income -$437.6K -$92.64K -$727.8K
YoY Change -89.99% -87.27% -256.6%
Income Tax $515.00 $4.907K $473.00
% Of Pretax Income
Net Earnings -$438.2K -$97.55K -$728.3K
YoY Change -89.98% -86.61% -395.22%
Net Earnings / Revenue -41.07% -6.61% -173.03%
Basic Earnings Per Share -$0.02 $0.00 -$0.02
Diluted Earnings Per Share -$0.02 $0.00 -$14.57K
COMMON SHARES
Basic Shares Outstanding 25.00M shares 25.00M shares 50.00M shares
Diluted Shares Outstanding 25.00M shares 25.00M shares 25.00M shares

Balance Sheet

Concept 2023 Q3 2023 Q2 2022 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $410.0K $320.0K $8.130M
YoY Change -92.26% -96.06% 150.25%
Cash & Equivalents $412.7K $316.9K $8.130M
Short-Term Investments
Other Short-Term Assets $590.0K $260.0K $163.6K
YoY Change 99.94% 58.92% -96.71%
Inventory $643.6K $625.8K $291.9K
Prepaid Expenses
Receivables $250.6K $345.5K $60.55K
Other Receivables $30.00K $134.3K $27.06K
Total Short-Term Assets $2.065M $1.743M $8.816M
YoY Change -69.75% -80.23% 5.05%
LONG-TERM ASSETS
Property, Plant & Equipment $1.659M $1.701M $222.0K
YoY Change -13.18% 666.5% 56.57%
Goodwill
YoY Change
Intangibles $2.840K $3.241K $594.00
YoY Change 103.88% 445.62%
Long-Term Investments $80.00K $80.00K $89.58K
YoY Change -5.16% -10.69%
Other Assets $10.00K $10.00K $16.95K
YoY Change -35.57% -41.0%
Total Long-Term Assets $2.215M $2.484M $1.774M
YoY Change -30.47% 40.04% 1151.24%
TOTAL ASSETS
Total Short-Term Assets $2.065M $1.743M $8.816M
Total Long-Term Assets $2.215M $2.484M $1.774M
Total Assets $4.280M $4.227M $10.59M
YoY Change -57.25% -60.08% 24.09%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $600.0K $470.8K $472.9K
YoY Change 18.11% -0.44% 1096.2%
Accrued Expenses $2.530M $2.700M $1.802M
YoY Change -61.76% 49.83% 217.53%
Deferred Revenue
YoY Change
Short-Term Debt $80.00K $80.00K $89.58K
YoY Change -5.16% -10.69%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $5.067M $4.637M $5.213M
YoY Change -45.44% -11.05% 503.1%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $160.0K $210.0K $614.8K
YoY Change -58.13% -65.84% 1220.14%
Total Long-Term Liabilities $160.0K $210.0K $614.8K
YoY Change -58.13% -65.84% 1220.14%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.067M $4.637M $5.213M
Total Long-Term Liabilities $160.0K $210.0K $614.8K
Total Liabilities $5.225M $4.843M $5.828M
YoY Change -45.96% -16.9% 539.76%
SHAREHOLDERS EQUITY
Retained Earnings -$16.20M -$15.76M -$10.36M
YoY Change 9.91% 52.08%
Common Stock $250.00 $250.00 $500.00
YoY Change -50.0% -50.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$945.1K -$615.9K $4.762M
YoY Change
Total Liabilities & Shareholders Equity $4.280M $4.227M $10.59M
YoY Change -57.25% -60.08% 24.09%

Cashflow Statement

Concept 2023 Q3 2023 Q2 2022 Q2
OPERATING ACTIVITIES
Net Income -$438.2K -$97.55K -$728.3K
YoY Change -89.98% -86.61% -395.22%
Depreciation, Depletion And Amortization $114.3K $88.51K $27.58K
YoY Change 344.75% 220.92% 657.69%
Cash From Operating Activities $130.0K $120.0K -$268.0K
YoY Change -120.28% -144.78% -189.94%
INVESTING ACTIVITIES
Capital Expenditures $210.0K $10.00K
YoY Change -500.08%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00
YoY Change -100.0%
Cash From Investing Activities -$200.0K -$10.00K
YoY Change -150.77%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 170.0K -260.0K 274.4K
YoY Change -107.38% -194.76% -192.71%
NET CHANGE
Cash From Operating Activities 130.0K 120.0K -268.0K
Cash From Investing Activities -200.0K -10.00K
Cash From Financing Activities 170.0K -260.0K 274.4K
Net Change In Cash 100.0K -150.0K 6.410K
YoY Change -103.92% -2440.09% -100.14%
FREE CASH FLOW
Cash From Operating Activities $130.0K $120.0K -$268.0K
Capital Expenditures $210.0K $10.00K
Free Cash Flow -$80.00K $110.0K
YoY Change -86.41%

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CY2022Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.029
CY2022Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.029
us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.025
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.025
us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.059
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.059
CY2023Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
24999842 shares
CY2023Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
24999842 shares
CY2022Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
24999842 shares
CY2022Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
24999842 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
24999842 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
24999842 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
24999842 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
24999842 shares
CY2022Q4 us-gaap Stockholders Equity
StockholdersEquity
-466188 usd
CY2023Q1 us-gaap Adjustments To Additional Paid In Capital Share Based Compensation Stock Options Requisite Service Period Recognition
AdjustmentsToAdditionalPaidInCapitalShareBasedCompensationStockOptionsRequisiteServicePeriodRecognition
92885 usd
CY2023Q1 AIXN Disposal Of Subsidiary
DisposalOfSubsidiary
120160 usd
CY2023Q1 us-gaap Net Income Loss
NetIncomeLoss
-529784 usd
CY2023Q1 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
24542 usd
CY2023Q1 us-gaap Stockholders Equity
StockholdersEquity
-758385 usd
CY2023Q2 us-gaap Adjustments To Additional Paid In Capital Share Based Compensation Stock Options Requisite Service Period Recognition
AdjustmentsToAdditionalPaidInCapitalShareBasedCompensationStockOptionsRequisiteServicePeriodRecognition
92885 usd
CY2023Q2 AIXN Stock Issued During Period Capital Contribution
StockIssuedDuringPeriodCapitalContribution
145300 usd
CY2023Q2 us-gaap Net Income Loss
NetIncomeLoss
-97546 usd
CY2023Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
1845 usd
CY2023Q2 us-gaap Stockholders Equity
StockholdersEquity
-615901 usd
CY2021Q4 us-gaap Stockholders Equity
StockholdersEquity
6069491 usd
CY2022Q1 us-gaap Adjustments To Additional Paid In Capital Share Based Compensation Stock Options Requisite Service Period Recognition
AdjustmentsToAdditionalPaidInCapitalShareBasedCompensationStockOptionsRequisiteServicePeriodRecognition
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
CY2022Q1 us-gaap Stockholders Equity
StockholdersEquity
5442159 usd
CY2022Q2 us-gaap Adjustments To Additional Paid In Capital Share Based Compensation Stock Options Requisite Service Period Recognition
AdjustmentsToAdditionalPaidInCapitalShareBasedCompensationStockOptionsRequisiteServicePeriodRecognition
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
CY2022Q2 us-gaap Stockholders Equity
StockholdersEquity
4761827 usd
us-gaap Net Income Loss
NetIncomeLoss
-627330 usd
us-gaap Net Income Loss
NetIncomeLoss
-1480350 usd
us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
193427 usd
us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
57219 usd
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
-51853 usd
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
47857 usd
AIXN Provision For Inventory Reserve
ProvisionForInventoryReserve
12026 usd
us-gaap Operating Lease Expense
OperatingLeaseExpense
417369 usd
us-gaap Operating Lease Expense
OperatingLeaseExpense
449445 usd
us-gaap Share Based Compensation
ShareBasedCompensation
185770 usd
us-gaap Share Based Compensation
ShareBasedCompensation
185770 usd
us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
902 usd
us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
965 usd
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
-249851 usd
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
65284 usd
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
46276 usd
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
-92619 usd
us-gaap Increase Decrease In Due To Related Parties
IncreaseDecreaseInDueToRelatedParties
24890 usd
us-gaap Increase Decrease In Due To Related Parties
IncreaseDecreaseInDueToRelatedParties
12043 usd
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
170052 usd
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
72168 usd
us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
98150 usd
us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
89349 usd
AIXN Increase Decrease In Accounts Payable Related Party
IncreaseDecreaseInAccountsPayableRelatedParty
-165172 usd
us-gaap Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
-6552 usd
us-gaap Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
-10099 usd
us-gaap Increase Decrease In Accrued Taxes Payable
IncreaseDecreaseInAccruedTaxesPayable
4839 usd
us-gaap Increase Decrease In Accrued Taxes Payable
IncreaseDecreaseInAccruedTaxesPayable
-7034 usd
us-gaap Operating Lease Payments
OperatingLeasePayments
405079 usd
us-gaap Operating Lease Payments
OperatingLeasePayments
418711 usd
us-gaap Increase Decrease In Accrued Liabilities And Other Operating Liabilities
IncreaseDecreaseInAccruedLiabilitiesAndOtherOperatingLiabilities
-65670 usd
us-gaap Increase Decrease In Accrued Liabilities And Other Operating Liabilities
IncreaseDecreaseInAccruedLiabilitiesAndOtherOperatingLiabilities
346883 usd
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-350760 usd
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-771496 usd
AIXN Cash Disposed At Disposal Of Subsidiary
CashDisposedAtDisposalOfSubsidiary
-3392 usd
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
10627 usd
us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
2647 usd
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-16666 usd
us-gaap Proceeds From Repayments Of Related Party Debt
ProceedsFromRepaymentsOfRelatedPartyDebt
39677 usd
us-gaap Proceeds From Repayments Of Related Party Debt
ProceedsFromRepaymentsOfRelatedPartyDebt
779015 usd
us-gaap Proceeds From Contributed Capital
ProceedsFromContributedCapital
144300 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
183977 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
779015 usd
us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
-21921 usd
us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
-417088 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-205370 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-409569 usd
CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
619900 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
8600853 usd
CY2023Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
414530 usd
CY2022Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
8191284 usd
CY2023Q1 us-gaap Stockholders Equity Reverse Stock Split
StockholdersEquityReverseStockSplit
1 for 2 reverse stock split
CY2023Q1 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.00001
CY2023Q1 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
24999842 shares
CY2023Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
-104768 usd
CY2022Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
-739238 usd
us-gaap Operating Income Loss
OperatingIncomeLoss
-656738 usd
us-gaap Operating Income Loss
OperatingIncomeLoss
-1511392 usd
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-350760 usd
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-771496 usd
CY2023Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-15757028 usd
CY2022Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
510128 usd
CY2023Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
316905 usd
us-gaap Use Of Estimates
UseOfEstimates
<p id="xdx_84D_eus-gaap--UseOfEstimates_ziospgEpsuBj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white"><b><span id="xdx_861_zAbpxPfgPzwi">Use of Estimates</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="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; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="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; margin: 0; text-align: justify"> </p> <p style="font: 10pt/107% Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<p id="xdx_848_eus-gaap--PriorPeriodReclassificationAdjustmentDescription_zeqwUWwvMwuj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="background-color: white"><b><span id="xdx_869_z3PdBN36II97">Reclassification</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="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; margin: 0; text-align: justify"> </p>
CY2023Q2 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
200044 usd
CY2022Q4 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
272550 usd
CY2023Q2 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
601626 usd
CY2022Q4 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
883583 usd
CY2023Q2 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
205903 usd
CY2022Q4 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
194725 usd
AIXN Schedule Of Accounts Receivable Allowance For Doubtful Accounts
ScheduleOfAccountsReceivableAllowanceForDoubtfulAccounts
<p id="xdx_89C_ecustom--ScheduleOfAccountsReceivableAllowanceForDoubtfulAccounts_zbp9XoTzNUk" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white">The following table summarizes the activity related to the Company’s Accounts Receivable allowance for doubtful accounts for the six months ended June 30, 2023 and 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BA_zNQ123XCh256" style="display: none">SCHEDULE OF ACCOUNTS RECEIVABLE ALLOWANCE FOR DOUBTFUL ACCOUNTS</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center"> </td> <td style="text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_490_20230101__20230630__us-gaap--FairValueByAssetClassAxis__us-gaap--AccountsReceivableMember_z3vp39dUQILk" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2023</td> <td style="text-align: center; font-weight: bold"> </td> <td style="text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_49C_20220101__20220630__us-gaap--FairValueByAssetClassAxis__us-gaap--AccountsReceivableMember_z5p4Sai0Eu97" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2022</td> <td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td style="text-align: center; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">For the Six Months ended June 30,</td> <td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td style="text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2023</td> <td style="text-align: center; font-weight: bold"> </td> <td style="text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2022</td> <td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr id="xdx_400_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iS_z8msDPzrt157" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Beginning balance</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 16%; text-align: right">272,550</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 16%; text-align: right">213,787</td> <td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--ProvisionForDoubtfulAccounts_zepNruqi2NDk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">(Reversal of) provision for bad debts</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0714">-</span></td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">47,857</td> <td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--AllowanceForDoubtfulAccountsReceivableRecoveries_iN_di_zcKPhbJSqXnd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Recoveries/Write offs</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(51,853</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0718">-</span></td> <td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--AllowanceForDoubtfulAccountsReceivablePeriodIncreaseDecrease_iN_di_z03weekfR3jc" style="vertical-align: bottom; background-color: White"> <td>Effect of translation</td> <td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right">(20,653</td> <td style="text-align: left">)</td> <td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right">(11,933</td> <td style="text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iE_ztPiXtsUhSu1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Ending balance</td> <td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; text-align: right">200,044</td> <td style="text-align: left"> </td> <td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; text-align: right">249,711</td> <td style="text-align: left"> </td></tr> </table>
AIXN Provision For Inventory Reserve
ProvisionForInventoryReserve
12026 usd
CY2023Q2 us-gaap Property Plant And Equipment Salvage Value Percentage
PropertyPlantAndEquipmentSalvageValuePercentage
0.05 pure
CY2023Q2 us-gaap Operating Lease Liability
OperatingLeaseLiability
807529 usd
CY2022 us-gaap Impairment Of Intangible Assets Finitelived
ImpairmentOfIntangibleAssetsFinitelived
3823770 usd
us-gaap Revenue Recognition Deferred Revenue
RevenueRecognitionDeferredRevenue
<p id="xdx_849_eus-gaap--RevenueRecognitionDeferredRevenue_zdiRbpj7L8Ll" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white"><b><span id="xdx_866_zzdEAbj5hAd9">Unearned Revenue</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white">The Company’s unearned revenue primarily consists of advances received from customers for the purchase of products prior to the delivery of goods, and for the rental of hotel rooms prior to the delivery of service. The delivery of products and room rental services is (normally within one year) based upon contract terms and customer demand.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
CY2023Q2 us-gaap Short Term Non Bank Loans And Notes Payable
ShortTermNonBankLoansAndNotesPayable
82744 usd
CY2022Q4 us-gaap Short Term Non Bank Loans And Notes Payable
ShortTermNonBankLoansAndNotesPayable
86992 usd
CY2022Q4 us-gaap Operating Lease Liability
OperatingLeaseLiability
1078308 usd
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p id="xdx_846_eus-gaap--ConcentrationRiskCreditRisk_zjpdcDEtbgrh" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white"><b><span id="xdx_863_z9LIlLM3PWE2">Concentration of Credit Risk</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="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: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="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_905_eus-gaap--CashFDICInsuredAmount_iI_pp0p0_uRMB_c20230630_zO88Av717ASk">500,000</span> ($<span id="xdx_905_eus-gaap--CashFDICInsuredAmount_iI_pp0p0_uUSD_c20230630_z6RQeF8SZPM6" 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; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white">During the three and six months ended June 30, 2023 and 2022, the Company had no customer that accounted for over <span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--NoCustomerMember_zdopYihSDlDg"><span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_dp_c20220101__20220630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--NoCustomerMember_zgLkR2aZ4Zwl"><span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_dp_c20230401__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--NoCustomerMember_zC2n3iKga19b"><span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_dp_c20220401__20220630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--NoCustomerMember_zzdxF7fw8iY">10</span></span></span></span>% of its total revenue.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white">During the three months ended June 30, 2023, the Company had one supplier that accounted for <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_dp_c20230401__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfSalesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SupplierOneMember_zLOLTQz8KGof" title="Concentration risk, percentage">15</span>% of its total purchases.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white">During the six months ended June 30, 2023, the Company had two suppliers that accounted for <span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfSalesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SupplierOneMember_zZpodbsvviVi">15</span>% and <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_dp_c20230101__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfSalesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SupplierTwoMember_zU9Zi0ZI5VJi">13</span>%, respectively, of its total purchases.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white">During the three months ended June 30, 2022, the Company had one supplier that accounted for <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_dp_c20220401__20220630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfSalesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SupplierOneMember_zGOdCk3k77Nb" title="Concentration risk, percentage">23</span>% of its total purchases.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white">During the six months ended June 30, 2022, the Company had one supplier that accounted for <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_dp_c20220101__20220630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfSalesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SupplierOneMember_z3CydNuadAEd" title="Concentration risk, percentage">12</span>% of its total purchases.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt/107% Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
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521 usd
CY2023Q2 AIXN Inventory Drugs Pharmaceutical And Nutritional Products Gross
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82646 usd
CY2023Q2 us-gaap Inventory Gross
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499252 usd
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2928342 usd
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CY2023Q2 us-gaap Property Plant And Equipment Net
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CY2022Q4 us-gaap Property Plant And Equipment Net
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CY2023Q2 us-gaap Depreciation
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us-gaap Depreciation
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us-gaap Depreciation
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357 usd
CY2022Q2 us-gaap Amortization Of Intangible Assets
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633 usd
us-gaap Amortization Of Intangible Assets
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518 usd
us-gaap Amortization Of Intangible Assets
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1294 usd
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CY2023Q2 us-gaap Operating Lease Right Of Use Asset
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220203 usd
us-gaap Operating Lease Expense
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us-gaap Operating Lease Expense
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0.0475 pure
CY2022Q2 us-gaap Operating Lease Weighted Average Discount Rate Percent
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0.0475 pure
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601626 usd
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134320 usd
CY2022Q4 us-gaap Other Receivables Net Current
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CY2023Q2 us-gaap Other Receivables Net Current
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134320 usd
CY2022Q4 us-gaap Other Receivables Net Current
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CY2023Q2 us-gaap Other Liabilities Current
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CY2022Q4 us-gaap Other Liabilities Current
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236882 usd
CY2023Q2 us-gaap Other Liabilities Current
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204443 usd
CY2022Q4 us-gaap Other Liabilities Current
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236882 usd
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5000
CY2014Q2 us-gaap Payments For Rent
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2028-05-28
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us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Expense
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us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Expense
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one (1)-for-four (4) reverse stock
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20000000 shares
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0.001
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500000000 shares
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0.00001
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us-gaap Share Based Compensation
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185770 usd
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P1Y3M25D
AIXN Net Income Transfer Percentage
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0.10 pure
AIXN Capital Reserve Percentage
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0.50 pure
CY2023Q2 AIXN Statutory Reserve Fund
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0 usd
CY2022Q2 AIXN Statutory Reserve Fund
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AIXN Statutory Reserve Fund
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us-gaap Loss Contingency Disclosures
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<p id="xdx_802_eus-gaap--LossContingencyDisclosures_zA7PkiJ7MCOc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white"><b>16. <span><span id="xdx_829_zV2VzTjkG63i">OPERATING CONTINGENCIES</span></span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="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; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="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; margin: 0; text-align: justify"> </p> <p style="font: 10pt/107% Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white"><b>Litigation</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="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; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="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_908_eus-gaap--LongTermPurchaseCommitmentAmount_uUSD_c20201201__20201231_zCCskdF7FTtj" title="Purchase commitment amount">392,305</span> (RMB <span id="xdx_90D_eus-gaap--LongTermPurchaseCommitmentAmount_uRMB_c20201201__20201231_zQiZKFLbS8Pj" 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_905_eus-gaap--LitigationSettlementExpense_uUSD_c20201201__20201231_znUHWSbPwdVh" title="Litigation settlement expense">392,305</span> (RMB <span id="xdx_908_eus-gaap--LitigationSettlementExpense_uRMB_c20201201__20201231_z9MGHHfTbFtk" 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; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="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; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="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 June 30, 2023.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="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: 0; text-align: justify"> </p>
CY2020Q4 us-gaap Long Term Purchase Commitment Amount
LongTermPurchaseCommitmentAmount
392305 usd
CY2020Q4 us-gaap Long Term Purchase Commitment Amount
LongTermPurchaseCommitmentAmount
2500000
CY2020Q4 us-gaap Litigation Settlement Expense
LitigationSettlementExpense
392305 usd
CY2020Q4 us-gaap Litigation Settlement Expense
LitigationSettlementExpense
2500000
CY2022Q2 us-gaap Business Acquisitions Pro Forma Revenue
BusinessAcquisitionsProFormaRevenue
548308 usd
CY2022Q2 AIXN Business Acquisitions Pro Forma Cost Of Goods And Services Sold
BusinessAcquisitionsProFormaCostOfGoodsAndServicesSold
1336027 usd
CY2022Q2 AIXN Business Acquisitions Pro Forma Loss From Operations
BusinessAcquisitionsProFormaLossFromOperations
-787719 usd
CY2022Q2 AIXN Business Acquisitions Pro Forma Other Nonoperating Income Expense
BusinessAcquisitionsProFormaOtherNonoperatingIncomeExpense
30167 usd
CY2022Q2 AIXN Business Acquisitions Pro Forma Income Tax Expense Benefit
BusinessAcquisitionsProFormaIncomeTaxExpenseBenefit
473 usd
CY2022Q2 us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
-758025 usd
us-gaap Business Acquisitions Pro Forma Revenue
BusinessAcquisitionsProFormaRevenue
1050147 usd
AIXN Business Acquisitions Pro Forma Cost Of Goods And Services Sold
BusinessAcquisitionsProFormaCostOfGoodsAndServicesSold
2620971 usd
AIXN Business Acquisitions Pro Forma Loss From Operations
BusinessAcquisitionsProFormaLossFromOperations
-1570824 usd
AIXN Business Acquisitions Pro Forma Other Nonoperating Income Expense
BusinessAcquisitionsProFormaOtherNonoperatingIncomeExpense
50768 usd
AIXN Business Acquisitions Pro Forma Income Tax Expense Benefit
BusinessAcquisitionsProFormaIncomeTaxExpenseBenefit
965 usd
us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
-1521021 usd

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