2023 Q4 Form 20-F Financial Statement

#000121390024037819 Filed on April 30, 2024

View on sec.gov

Income Statement

Concept 2023 Q4 2023 2022 Q4
Revenue $8.441M $17.25M $13.27M
YoY Change -36.4% 29.99% -9.65%
Cost Of Revenue $4.627M $9.105M $7.169M
YoY Change -35.47% 27.0% -7.61%
Gross Profit $3.815M $8.147M $6.103M
YoY Change -37.49% 33.5% -11.94%
Gross Profit Margin 45.19% 47.22% 45.98%
Selling, General & Admin $4.539M $8.758M $7.541M
YoY Change -39.81% 16.14% 2.24%
% of Gross Profit 118.99% 107.49% 123.56%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $429.0K $831.8K $350.1K
YoY Change 22.56% 18.58% -42.16%
% of Gross Profit 11.25% 10.21% 5.74%
Operating Expenses $4.539M $8.758M $7.541M
YoY Change -39.81% 16.14% 2.24%
Operating Profit -$724.4K -$610.5K -$1.438M
YoY Change -49.63% -57.55% 223.24%
Interest Expense $384.5K $570.1K -$35.46K
YoY Change -1184.21% 1507.83% -63.83%
% of Operating Profit
Other Income/Expense, Net $205.3K $763.5K $194.8K
YoY Change 5.36% 379.09% -81.72%
Pretax Income -$134.6K $153.0K -$1.279M
YoY Change -89.47% -111.97% -344.46%
Income Tax $116.5K $119.4K $9.550K
% Of Pretax Income 78.05%
Net Earnings -$251.2K $33.59K -$1.288M
YoY Change -80.5% -102.61% -354.2%
Net Earnings / Revenue -2.98% 0.19% -9.71%
Basic Earnings Per Share $0.00
Diluted Earnings Per Share -$0.02 $0.00 -$0.14
COMMON SHARES
Basic Shares Outstanding 11.54M shares
Diluted Shares Outstanding 11.54M shares

Balance Sheet

Concept 2023 Q4 2023 2022 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.481M $1.481M $2.915M
YoY Change -49.19% -49.19% -25.18%
Cash & Equivalents $1.481M $1.481M $2.915M
Short-Term Investments
Other Short-Term Assets $3.532M $3.532M $7.124M
YoY Change -50.42% 121.17% 8.35%
Inventory $723.9K $723.9K $693.5K
Prepaid Expenses $1.307M $217.1K
Receivables $1.995M $1.995M $1.260M
Other Receivables $1.602M $1.602M $0.00
Total Short-Term Assets $9.334M $9.334M $6.466M
YoY Change 44.36% 44.36% -4.14%
LONG-TERM ASSETS
Property, Plant & Equipment $5.462M $18.52M $5.872M
YoY Change -6.98% -6.43% 7.78%
Goodwill
YoY Change
Intangibles $150.0K $0.00
YoY Change
Long-Term Investments $6.535M $6.535M
YoY Change
Other Assets $1.827M $1.827M $4.079M
YoY Change -55.21% 70.84% -34.12%
Total Long-Term Assets $29.10M $29.10M $20.86M
YoY Change 39.48% 39.48% 14.32%
TOTAL ASSETS
Total Short-Term Assets $9.334M $9.334M $6.466M
Total Long-Term Assets $29.10M $29.10M $20.86M
Total Assets $38.43M $38.43M $27.33M
YoY Change 40.63% 40.63% 9.33%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.919M $1.919M $1.425M
YoY Change 34.7% 34.7% 11.89%
Accrued Expenses $2.198M $2.198M $1.770M
YoY Change 24.16% 24.16% 9.11%
Deferred Revenue $7.086M $6.958M
YoY Change 1.83%
Short-Term Debt $2.684M $2.684M $435.0K
YoY Change 517.0% 517.0% -72.11%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $14.73M $14.73M $13.53M
YoY Change 8.84% 8.84% 9.88%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $11.69M $11.69M $1.449M
YoY Change 706.99% -7.36% -38.67%
Total Long-Term Liabilities $11.69M $11.69M $1.449M
YoY Change 706.99% -7.36% -38.67%
TOTAL LIABILITIES
Total Short-Term Liabilities $14.73M $14.73M $13.53M
Total Long-Term Liabilities $11.69M $11.69M $1.449M
Total Liabilities $26.42M $26.42M $26.15M
YoY Change 1.02% 1.02% 18.01%
SHAREHOLDERS EQUITY
Retained Earnings -$150.3K -$183.8K
YoY Change -18.27% -116.65%
Common Stock $11.80M $0.00
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $12.01M $12.01M $1.177M
YoY Change
Total Liabilities & Shareholders Equity $38.43M $38.43M $27.33M
YoY Change 40.63% 40.63% 9.33%

Cashflow Statement

Concept 2023 Q4 2023 2022 Q4
OPERATING ACTIVITIES
Net Income -$251.2K $33.59K -$1.288M
YoY Change -80.5% -102.61% -354.2%
Depreciation, Depletion And Amortization $429.0K $831.8K $350.1K
YoY Change 22.56% 18.58% -42.16%
Cash From Operating Activities -$3.564M -$2.954M $911.3K
YoY Change -491.09% -635.75% -48.75%
INVESTING ACTIVITIES
Capital Expenditures $771.9K $774.0K $860.0K
YoY Change -10.24% -10.01% -57.8%
Acquisitions
YoY Change
Other Investing Activities $1.561M -$9.539M $566.4K
YoY Change 175.5% 7844.46%
Cash From Investing Activities $788.6K -$10.46M -$293.6K
YoY Change -368.61% 1116.63% -85.54%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 2.403M $12.06M 2.207M
YoY Change 8.89% 121352.56% -1338.07%
NET CHANGE
Cash From Operating Activities -3.564M -$2.954M 911.3K
Cash From Investing Activities 788.6K -$10.46M -293.6K
Cash From Financing Activities 2.403M $12.06M 2.207M
Net Change In Cash -372.4K -$1.434M 2.824M
YoY Change -113.18% 46.14% -755.46%
FREE CASH FLOW
Cash From Operating Activities -$3.564M -$2.954M $911.3K
Capital Expenditures $771.9K $774.0K $860.0K
Free Cash Flow -$4.336M -$3.728M $51.27K
YoY Change -8557.07% 1107.64% -119.73%

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CY2023 us-gaap Payments To Fund Longterm Loans To Related Parties
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CY2021 us-gaap Payments To Fund Longterm Loans To Related Parties
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CY2023 us-gaap Repayment Of Notes Receivable From Related Parties
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CY2023 us-gaap Payments To Acquire Software
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CY2023 cih Payments To Acquire Refund Of Prepayment For The Product Development
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CY2021 us-gaap Repayments Of Bank Debt
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CY2021 us-gaap Proceeds From Issuance Of Long Term Debt
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CY2021 us-gaap Proceeds From Repayments Of Related Party Debt
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CY2023 us-gaap Payments Of Stock Issuance Costs
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CY2021 us-gaap Payments Of Stock Issuance Costs
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CY2023 us-gaap Net Cash Provided By Used In Financing Activities
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CY2022 us-gaap Net Cash Provided By Used In Financing Activities
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CY2021 us-gaap Net Cash Provided By Used In Financing Activities
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CY2022 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2022 us-gaap Income Taxes Paid
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CY2022 us-gaap Capital Expenditures Incurred But Not Yet Paid
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CY2022 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2021 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2021 cih Ppp Loan Forgiveness
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502298 usd
CY2023 cih Deferred Ipo Cost Offset With Additional Paidin Capital
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Capital
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Capital
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CY2023 cih Revenueproducing Assets
RevenueproducingAssets
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CY2023Q4 us-gaap Flight Equipment Accumulated Depreciation
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CY2023Q4 us-gaap Property Plant And Equipment Owned Net
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CY2023Q2 us-gaap Temporary Equity Shares Issued
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CY2023Q2 us-gaap Temporary Equity Par Or Stated Value Per Share
TemporaryEquityParOrStatedValuePerShare
4
CY2023 us-gaap Use Of Estimates
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Uses of estimates</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In preparing the consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of accounts receivable and inventories, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets, provision necessary for contingent liabilities, realization of deferred tax assets and revenue recognition. Actual results could differ from those estimates.</p>
CY2023 cih Impairment Of Longlived Assets
ImpairmentOfLonglivedAssets
272350 usd
CY2023 us-gaap Proceeds From Sale Of Lease Receivables
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CY2023 us-gaap Lease Income
LeaseIncome
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CY2022 us-gaap Lease Income
LeaseIncome
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CY2021 us-gaap Lease Income
LeaseIncome
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P8Y
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CY2022Q4 us-gaap Contract With Customer Liability Current
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CY2023 us-gaap Contract With Customer Liability Revenue Recognized
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CY2022 us-gaap Contract With Customer Liability Revenue Recognized
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CY2021 us-gaap Contract With Customer Liability Revenue Recognized
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CY2021Q4 us-gaap Contract With Customer Liability
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CY2022 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.03 pure
CY2023 cih Deemed Taxables Net Income
DeemedTaxablesNetIncome
100000 usd
CY2023 cih Deemed Taxables Net Income
DeemedTaxablesNetIncome
100000 cny
CY2023 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.01 pure
CY2022Q4 us-gaap Advances On Inventory Purchases
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512900 usd
CY2023 us-gaap Concentration Risk Credit Risk
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Risks and uncertainties</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Political and economic risk</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The operations of the Company are located in the PRC and United States. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC and United States, as well as by the general state of the PRC and United States economy. The Company’s results may be adversely affected by changes in the political, regulatory, and social conditions in the PRC and United States. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, such experience may not be indicative of future results.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Foreign currency exchange risk</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A majority of the Company’s revenue and expense transactions are denominated in RMB and most of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to effect the remittance.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Credit risk</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2023 and 2022, $864,426 and $2,747,940 of the Company’s cash was on deposit at financial institutions in the PRC where there currently is no rule or regulation requiring such financial institutions to maintain insurance to cover bank deposits in the event of bank failure. As of December 31, 2023 and 2022, $555,799 and $115,452 of the Company’s cash was on deposit at financial institutions in the U.S. which were insured by the Federal Deposit Insurance Corporation subject to certain limitations. The Company has not experienced any losses in such accounts.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the years ended December 31, 2023, 2022 and 2021, the Company’s substantial assets were located in the PRC and the U.S. and the Company’s substantial revenue was derived from its subsidiaries and the UFG entities located in the PRC and the U.S.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounts receivable are typically unsecured and derived from revenue earned from customers, thereby exposed to credit risk. The risk is mitigated by the Company’s assessment of its customers’ creditworthiness and its ongoing monitoring of outstanding balances.</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"><i>Concentrations</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">No single customer accounted for more than 10% of the Company’s revenue for the years ended December 31, 2023, 2022 and 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2023, no customer accounted for more than 10% of the Company’s total accounts receivable balance. As of December 31, 2022, one customer accounted for 11.7% of the Company’s total accounts receivable balance.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the year ended December 31, 2023, one supplier accounted for 11.7% of the Company’s total purchases. For the year ended December 31, 2022, no supplier accounted for more than 10% of the Company’s total purchases. For the year ended December 31, 2021, one supplier accounted for 14.7% of the Company’s total purchase. As of December 31, 2023, three suppliers accounted for 14.9%, 11.1% and 11.0% of the Company’s total accounts payable balance. As of December 31, 2022, three suppliers accounted for 16.8%, 12.3% and 11.8% of the Company’s total accounts payable balance.</p>
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0.10 pure
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0.10 pure
CY2021Q4 us-gaap Revenue Remaining Performance Obligation Percentage
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0.10 pure
CY2023Q4 us-gaap Prepaid Expense Current
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CY2022Q4 us-gaap Prepaid Expense Current
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CY2022Q4 us-gaap Other Receivables
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CY2022Q4 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
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CY2023 cih Working Capitals
WorkingCapitals
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CY2023 us-gaap Deferred Revenue Additions
DeferredRevenueAdditions
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CY2023 cih Realizes Deferred Revenue
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2800000 usd
CY2023 us-gaap Dividends Cash
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CY2023Q2 cih Initial Public Offering
InitialPublicOffering
3390000 shares
CY2023Q2 cih Offering Price Per Shares
OfferingPricePerShares
4
CY2023Q2 cih Total Gross Proceeds
TotalGrossProceeds
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CY2023 us-gaap Proceeds From Divestiture Of Businesses Net Of Cash Divested
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1995067 usd
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CY2023 cih Total Lent Amount
TotalLentAmount
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CY2023 us-gaap Repayments Of Debt
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CY2023 us-gaap Proceeds From Other Short Term Debt
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CY2023Q4 us-gaap Inventory Raw Materials
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CY2022Q4 us-gaap Inventory Raw Materials
InventoryRawMaterials
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CY2023Q4 us-gaap Materials Supplies And Other
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CY2022Q4 us-gaap Materials Supplies And Other
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CY2023Q4 us-gaap Inventory Finished Goods
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CY2022Q4 us-gaap Inventory Finished Goods
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CY2023Q4 us-gaap Inventory Net
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CY2022Q4 us-gaap Inventory Net
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CY2023Q2 us-gaap Long Term Debt
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0.045 pure
CY2023 us-gaap Interest Income Other
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CY2023Q4 us-gaap Operating Lease Right Of Use Asset
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CY2022Q4 us-gaap Operating Lease Right Of Use Asset
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CY2023Q4 us-gaap Operating Lease Liability Current
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CY2022Q4 us-gaap Operating Lease Liability Current
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CY2023Q4 us-gaap Operating Lease Liability Noncurrent
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CY2022Q4 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
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CY2023Q4 us-gaap Operating Lease Liability
OperatingLeaseLiability
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CY2022Q4 us-gaap Operating Lease Liability
OperatingLeaseLiability
14390468 usd
CY2023Q4 us-gaap Property Plant And Equipment Other Net
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790000 usd
CY2023 us-gaap Payments For Software
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140000 usd
CY2023Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
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P7Y6M7D
CY2022Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P8Y6M10D
CY2023Q4 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0422 pure
CY2022Q4 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0435 pure
CY2023 us-gaap Operating Lease Expense
OperatingLeaseExpense
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CY2022 us-gaap Operating Lease Expense
OperatingLeaseExpense
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CY2021 us-gaap Operating Lease Expense
OperatingLeaseExpense
2636019 usd
CY2023Q4 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
2742956 usd
CY2023Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
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CY2023Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Three
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CY2023Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Four
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CY2023Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
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CY2023Q4 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive
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CY2023Q4 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
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CY2023Q4 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
2633142 usd
CY2023Q4 us-gaap Operating Lease Liability
OperatingLeaseLiability
13889443 usd
CY2023 cih Impairment Loss On Property And Equipment
ImpairmentLossOnPropertyAndEquipment
272350 usd
CY2023 us-gaap Depreciation
Depreciation
831820 usd
CY2022 us-gaap Depreciation
Depreciation
701461 usd
CY2021 us-gaap Depreciation
Depreciation
605253 usd
CY2023Q4 us-gaap Capitalized Software Development Costs For Software Sold To Customers
CapitalizedSoftwareDevelopmentCostsForSoftwareSoldToCustomers
710000 usd
CY2023Q2 us-gaap Property Plant And Equipment Salvage Value
PropertyPlantAndEquipmentSalvageValue
750000 usd
CY2023Q4 us-gaap Purchase Commitment Remaining Minimum Amount Committed
PurchaseCommitmentRemainingMinimumAmountCommitted
100000 usd
CY2023Q1 us-gaap Debt Instrument Carrying Amount
DebtInstrumentCarryingAmount
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