2023 Q3 Form 10-K Financial Statement

#000168316823006813 Filed on September 28, 2023

View on sec.gov

Income Statement

Concept 2023 Q3 2023 Q2 2023
Revenue $9.656M $17.00M $45.95M
YoY Change 19.07% 39.98% 91.47%
Cost Of Revenue $8.142M $14.57M $38.93M
YoY Change 24.98% 38.18% 92.89%
Gross Profit $1.513M $2.440M $7.021M
YoY Change -5.06% 52.47% 83.95%
Gross Profit Margin 15.67% 14.35% 15.28%
Selling, General & Admin $1.231M $1.410M $5.452M
YoY Change -0.72% 38.78% 20.9%
% of Gross Profit 81.33% 57.79% 77.65%
Research & Development $867.0K $920.0K $3.919M
YoY Change -10.63% -16.58% -8.49%
% of Gross Profit 57.29% 37.7% 55.82%
Depreciation & Amortization $11.39K $250.0K $51.97K
YoY Change -28.0% 23.7% -40.77%
% of Gross Profit 0.75% 10.25% 0.74%
Operating Expenses $2.098M $2.330M $9.370M
YoY Change -5.07% 9.96% 6.58%
Operating Profit -$584.5K $110.0K -$2.350M
YoY Change -5.09% -121.21% -52.77%
Interest Expense $55.04K $250.0K $500.0K
YoY Change -106.19% 279.82% 600.48%
% of Operating Profit 227.27%
Other Income/Expense, Net $197.3K $30.00K -$1.482M
YoY Change -121.58% -118.49% -658.27%
Pretax Income -$387.3K -$1.970M -$3.831M
YoY Change -74.69% 241.61% -18.65%
Income Tax -$50.06K -$320.0K -$886.7K
% Of Pretax Income
Net Earnings -$257.7K -$1.610M -$2.863M
YoY Change -77.13% 129.07% -23.91%
Net Earnings / Revenue -2.67% -9.47% -6.23%
Basic Earnings Per Share -$0.02 -$0.24
Diluted Earnings Per Share -$0.02 -$0.14 -$0.24
COMMON SHARES
Basic Shares Outstanding 11.78M shares 11.78M shares 11.74M shares
Diluted Shares Outstanding 11.78M shares 11.74M shares

Balance Sheet

Concept 2023 Q3 2023 Q2 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $33.65M $39.00M $38.97M
YoY Change -17.45% -8.48% -8.55%
Cash & Equivalents $6.845M $12.24M $12.24M
Short-Term Investments $26.80M $26.70M $26.73M
Other Short-Term Assets $147.8K $100.0K $90.00K
YoY Change -17.09% -53.65% -58.28%
Inventory $2.262M $3.742M $3.740M
Prepaid Expenses
Receivables $9.921M $8.950M $8.950M
Other Receivables $20.97K $14.44K $110.0K
Total Short-Term Assets $46.09M $51.86M $51.86M
YoY Change -1.86% 7.16% 7.17%
LONG-TERM ASSETS
Property, Plant & Equipment $92.13K $101.1K $250.0K
YoY Change -21.13% -4.59% -54.92%
Goodwill $273.3K $273.3K
YoY Change 0.0% 0.0%
Intangibles $1.958M $2.181M
YoY Change 17.25% 61.54%
Long-Term Investments
YoY Change
Other Assets $124.2K $126.5K $2.360M
YoY Change 6.86% 0.36% 60.16%
Total Long-Term Assets $4.811M $5.070M $5.070M
YoY Change 20.16% 38.85% 38.85%
TOTAL ASSETS
Total Short-Term Assets $46.09M $51.86M $51.86M
Total Long-Term Assets $4.811M $5.070M $5.070M
Total Assets $50.90M $56.93M $56.93M
YoY Change -0.13% 9.39% 9.39%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $7.150M $12.95M $12.95M
YoY Change -17.64% 59.03% 59.03%
Accrued Expenses $989.7K $849.6K $3.410M
YoY Change 79.25% 44.02% 279.42%
Deferred Revenue $227.5K $146.5K
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $10.85M $16.51M $16.51M
YoY Change 10.14% 77.93% 77.9%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $0.00 $0.00
YoY Change -100.0% -100.0%
Total Long-Term Liabilities $0.00 $0.00 $0.00
YoY Change -100.0% -100.0% -100.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $10.85M $16.51M $16.51M
Total Long-Term Liabilities $0.00 $0.00 $0.00
Total Liabilities $10.85M $16.51M $18.00M
YoY Change 9.25% 74.93% 63.5%
SHAREHOLDERS EQUITY
Retained Earnings $28.84M $29.10M
YoY Change -6.47% -8.96%
Common Stock $14.26K $14.26K
YoY Change 0.71% 0.71%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $38.65M $38.93M $38.93M
YoY Change
Total Liabilities & Shareholders Equity $50.90M $56.93M $56.93M
YoY Change -0.13% 9.39% 9.39%

Cashflow Statement

Concept 2023 Q3 2023 Q2 2023
OPERATING ACTIVITIES
Net Income -$257.7K -$1.610M -$2.863M
YoY Change -77.13% 129.07% -23.91%
Depreciation, Depletion And Amortization $11.39K $250.0K $51.97K
YoY Change -28.0% 23.7% -40.77%
Cash From Operating Activities -$5.223M $5.160M -$1.882M
YoY Change 416.07% -4750.32% -74.59%
INVESTING ACTIVITIES
Capital Expenditures $2.427K $60.00K $47.11K
YoY Change -90.9% -132.56% 11.93%
Acquisitions
YoY Change
Other Investing Activities -$73.83K -$10.32M -$10.39M
YoY Change -106.83% 6.28% -5.12%
Cash From Investing Activities -$98.76K -$10.38M -$12.11M
YoY Change -117.83% 4.91% 3.72%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$1.023K -90.00K $42.94K
YoY Change -267.13% -43.08%
NET CHANGE
Cash From Operating Activities -$5.223M 5.160M -$1.882M
Cash From Investing Activities -$98.76K -10.38M -$12.11M
Cash From Financing Activities -$1.023K -90.00K $42.94K
Net Change In Cash -$5.397M -5.310M -$14.04M
YoY Change 598.61% -46.64% -28.09%
FREE CASH FLOW
Cash From Operating Activities -$5.223M $5.160M -$1.882M
Capital Expenditures $2.427K $60.00K $47.11K
Free Cash Flow -$5.226M $5.100M -$1.929M
YoY Change 403.05% 6854.86% -74.1%

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CY2022 us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
75445 usd
CY2022 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
90443 usd
CY2022 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
545841 usd
CY2022Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
42602395 usd
CY2023 us-gaap Net Income Loss
NetIncomeLoss
-2863021 usd
CY2023 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
-87778 usd
CY2023 us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
134000 usd
CY2023 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
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CY2023 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
710870 usd
CY2023Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
40414828 usd
CY2023 us-gaap Profit Loss
ProfitLoss
-2944659 usd
CY2022 us-gaap Profit Loss
ProfitLoss
-3672405 usd
CY2023 us-gaap Depreciation
Depreciation
51970 usd
CY2022 us-gaap Depreciation
Depreciation
87743 usd
CY2023 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
839595 usd
CY2022 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
579012 usd
CY2023 us-gaap Share Based Compensation
ShareBasedCompensation
710870 usd
CY2022 us-gaap Share Based Compensation
ShareBasedCompensation
545841 usd
CY2023 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
0 usd
CY2022 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
23780 usd
CY2023 FKWL Forgiveness Of Debts
ForgivenessOfDebts
238307 usd
CY2022 FKWL Forgiveness Of Debts
ForgivenessOfDebts
38397 usd
CY2023 us-gaap Operating Lease Right Of Use Asset Amortization Expense
OperatingLeaseRightOfUseAssetAmortizationExpense
295956 usd
CY2022 us-gaap Operating Lease Right Of Use Asset Amortization Expense
OperatingLeaseRightOfUseAssetAmortizationExpense
304642 usd
CY2023 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
-888079 usd
CY2022 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
-959888 usd
CY2023 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
7601489 usd
CY2022 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
-1205938 usd
CY2023 us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
-456226 usd
CY2022 us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
3222344 usd
CY2023 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
-4252 usd
CY2022 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
-4045 usd
CY2023 us-gaap Increase Decrease In Deposit Other Assets
IncreaseDecreaseInDepositOtherAssets
-120921 usd
CY2022 us-gaap Increase Decrease In Deposit Other Assets
IncreaseDecreaseInDepositOtherAssets
134166 usd
CY2023 us-gaap Increase Decrease In Other Operating Assets
IncreaseDecreaseInOtherOperatingAssets
451 usd
CY2022 us-gaap Increase Decrease In Other Operating Assets
IncreaseDecreaseInOtherOperatingAssets
-14444 usd
CY2023 us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
4905499 usd
CY2022 us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
-1537287 usd
CY2023 us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
-146 usd
CY2022 us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
-326801 usd
CY2023 FKWL Increase Decrease In Unearned Revenue
IncreaseDecreaseInUnearnedRevenue
-114273 usd
CY2022 FKWL Increase Decrease In Unearned Revenue
IncreaseDecreaseInUnearnedRevenue
231624 usd
CY2023 FKWL Increase Decrease In Advance Payment From Customers
IncreaseDecreaseInAdvancePaymentFromCustomers
29137 usd
CY2022 FKWL Increase Decrease In Advance Payment From Customers
IncreaseDecreaseInAdvancePaymentFromCustomers
0 usd
CY2023 FKWL Increase Decrease In Accrued Legal Contingency Expense
IncreaseDecreaseInAccruedLegalContingencyExpense
2400000 usd
CY2022 FKWL Increase Decrease In Accrued Legal Contingency Expense
IncreaseDecreaseInAccruedLegalContingencyExpense
0 usd
CY2023 us-gaap Increase Decrease In Other Accrued Liabilities
IncreaseDecreaseInOtherAccruedLiabilities
399698 usd
CY2022 us-gaap Increase Decrease In Other Accrued Liabilities
IncreaseDecreaseInOtherAccruedLiabilities
-195618 usd
CY2023 us-gaap Increase Decrease In Operating Lease Liability
IncreaseDecreaseInOperatingLeaseLiability
-308834 usd
CY2022 us-gaap Increase Decrease In Operating Lease Liability
IncreaseDecreaseInOperatingLeaseLiability
-317518 usd
CY2023 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-1882114 usd
CY2022 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-7407355 usd
CY2023 us-gaap Payments To Acquire Investments
PaymentsToAcquireInvestments
10391654 usd
CY2022 us-gaap Payments To Acquire Investments
PaymentsToAcquireInvestments
10950625 usd
CY2023 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
47106 usd
CY2022 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
42085 usd
CY2023 us-gaap Payments To Develop Software
PaymentsToDevelopSoftware
1631376 usd
CY2022 us-gaap Payments To Develop Software
PaymentsToDevelopSoftware
658544 usd
CY2023 us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
39047 usd
CY2022 us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
23774 usd
CY2023 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-12109183 usd
CY2022 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-11675028 usd
CY2023 FKWL Increase Decrease In Loan To Employee
IncreaseDecreaseInLoanToEmployee
2057 usd
CY2022 FKWL Increase Decrease In Loan To Employee
IncreaseDecreaseInLoanToEmployee
-0 usd
CY2023 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
45000 usd
CY2022 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
75445 usd
CY2023 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
42943 usd
CY2022 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
75445 usd
CY2023 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
-87778 usd
CY2022 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
-511650 usd
CY2023 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-14036132 usd
CY2022 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-19518588 usd
CY2022Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
26277418 usd
CY2021Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
45796006 usd
CY2023Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
12241286 usd
CY2022Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
26277418 usd
CY2023 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
-800 usd
CY2022 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
-200350 usd
CY2023Q2 us-gaap Minority Interest
MinorityInterest
1487967 usd
CY2023 us-gaap Minority Interest Period Increase Decrease
MinorityInterestPeriodIncreaseDecrease
-81638 usd
CY2022Q2 us-gaap Minority Interest
MinorityInterest
1569605 usd
CY2023 us-gaap Gain Or Loss On Sale Of Stock In Subsidiary
GainOrLossOnSaleOfStockInSubsidiary
-242554 usd
CY2023 us-gaap Revenues
Revenues
45948516 usd
CY2022 us-gaap Revenues
Revenues
23997762 usd
CY2023Q2 FKWL Property And Equipment And Intangible Assets
PropertyAndEquipmentAndIntangibleAssets
2281972 usd
CY2022Q2 FKWL Property And Equipment And Intangible Assets
PropertyAndEquipmentAndIntangibleAssets
1456008 usd
CY2023 us-gaap Use Of Estimates
UseOfEstimates
<p id="xdx_84A_eus-gaap--UseOfEstimates_zCfvr9b2vVn6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><span id="xdx_86D_z2OX5vr95Eq5">Use of Estimates</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: -0.5pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make 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 revenues and expenses during the reporting period. Actual results could materially differ from those estimates.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27.5pt; text-align: justify; text-indent: 0.5in"><b> </b></p>
CY2023Q2 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
0 usd
CY2022Q2 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
0 usd
CY2023 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
839595 usd
CY2023Q2 us-gaap Accounts Receivable Net Current
AccountsReceivableNetCurrent
8949802 usd
CY2022Q2 us-gaap Accounts Receivable Net Current
AccountsReceivableNetCurrent
1322619 usd
CY2023Q2 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
146488 usd
CY2022Q2 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
371624 usd
CY2023 us-gaap Capitalized Costs Of Unproved Properties Excluded From Amortization
CapitalizedCostsOfUnprovedPropertiesExcludedFromAmortization
800000 usd
CY2022 us-gaap Capitalized Costs Of Unproved Properties Excluded From Amortization
CapitalizedCostsOfUnprovedPropertiesExcludedFromAmortization
500000 usd
CY2023Q2 us-gaap Capitalized Software Development Costs For Software Sold To Customers
CapitalizedSoftwareDevelopmentCostsForSoftwareSoldToCustomers
203838 usd
CY2022Q2 us-gaap Capitalized Software Development Costs For Software Sold To Customers
CapitalizedSoftwareDevelopmentCostsForSoftwareSoldToCustomers
187343 usd
CY2023 us-gaap Payments To Develop Software
PaymentsToDevelopSoftware
1631376 usd
CY2023 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
3918664 usd
CY2022 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
4282131 usd
CY2023Q2 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
585274 usd
CY2022Q2 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
557155 usd
CY2023 FKWL Schedule Of Property And Equipment Estimated Useful Life
ScheduleOfPropertyAndEquipmentEstimatedUsefulLife
<table cellpadding="0" cellspacing="0" id="xdx_887_ecustom--ScheduleOfPropertyAndEquipmentEstimatedUsefulLife_z7Dd5e35rCf3" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Useful lives)"> <tr style="vertical-align: bottom"> <td><span id="xdx_8BD_z5KBoJCWAUMi" style="display: none">Useful lives of property and equipment</span></td> <td> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="width: 51%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Machinery</span></td> <td style="width: 1%"> </td> <td style="width: 48%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90D_ecustom--PropertyPlantAndEquipmentUsefulLife1_c20220701__20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_zmpbPS6Bb7hl" title="Estimated useful lives">6 years</span></span></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Office equipment</span></td> <td> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90E_ecustom--PropertyPlantAndEquipmentUsefulLife1_c20220701__20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember" title="Estimated useful lives">5 years</span></span></td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Molds</span></td> <td> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_909_ecustom--PropertyPlantAndEquipmentUsefulLife1_c20220701__20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ToolsDiesAndMoldsMember" title="Estimated useful lives">3 years</span></span></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vehicles</span></td> <td> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90D_ecustom--PropertyPlantAndEquipmentUsefulLife1_c20220701__20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember" title="Estimated useful lives">5 years</span></span></td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Computers and software</span></td> <td> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90F_ecustom--PropertyPlantAndEquipmentUsefulLife1_c20220701__20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember" title="Estimated useful lives">5 years</span></span></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furniture and fixtures</span></td> <td> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_906_ecustom--PropertyPlantAndEquipmentUsefulLife1_c20220701__20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember" title="Estimated useful lives">7 years</span></span></td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Facilities improvements</span></td> <td> </td> <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_908_ecustom--PropertyPlantAndEquipmentUsefulLife2_c20220701__20230630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FacilityImprovementsMember_zOAZgFEBMbi8" title="Estimated useful lives">5 years or life of the lease, whichever is shorter</span></span></td></tr> </table>
CY2023Q2 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
4465212 usd
CY2023Q2 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
2284328 usd
CY2023Q2 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
2180884 usd
CY2022Q2 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
2794789 usd
CY2022Q2 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
1444733 usd
CY2022Q2 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
1350056 usd
CY2022 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
579012 usd
CY2023Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Next Twelve Months
FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths
954166 usd
CY2023Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo
721265 usd
CY2023Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
263918 usd
CY2023Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseYearFour
18296 usd
CY2023Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Year Five
FiniteLivedIntangibleAssetsAmortizationExpenseYearFive
11148 usd
CY2023Q2 us-gaap Finite Lived Intangible Assets Amortization Expense After Year Five
FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive
8253 usd
CY2022 us-gaap Property Plant And Equipment Transfers And Changes
PropertyPlantAndEquipmentTransfersAndChanges
4175 usd
CY2022 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
0 usd
CY2023 us-gaap Other Tax Expense Benefit
OtherTaxExpenseBenefit
-886659 usd
CY2023 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p id="xdx_843_eus-gaap--ConcentrationRiskCreditRisk_zu83iFiyreN" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><span id="xdx_866_zzdQ5hzB2he">Concentrations of Credit Risk</span> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We extend credit to our customers and perform ongoing credit evaluations of such customers. We evaluate our accounts receivable on a regular basis for collectability and provide an allowance for potential credit losses as deemed necessary. No reserve was required or recorded for any of the periods presented.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Substantially all of our revenues are derived from sales of wireless data products. Any significant decline in market acceptance of our products or in the financial condition of our existing customers could impair our ability to operate effectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A significant portion of our revenue is derived from a small number of customers. For the year ended June 30, 2023, net sales to our two largest customers represented approximately <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_dp_c20220701__20230630__srt--MajorCustomersAxis__custom--Customer1Member__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zk1WElnqGMCj" title="Concentration of credit risk">61</span>% and <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_dp_c20220701__20230630__srt--MajorCustomersAxis__custom--Customer2Member__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zFA2SKoSD3Hj" title="Concentration of credit risk">31</span>% of our consolidated net sales, respectively, and <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_dp_c20220701__20230630__srt--MajorCustomersAxis__custom--Customer1Member__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zX6eBGy5EQN2" title="Concentration of credit risk">27</span>% and <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_dp_c20220701__20230630__srt--MajorCustomersAxis__custom--Customer2Member__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zPw0fZxJuH49" title="Concentration of credit risk">69</span>% of our accounts receivable balance as of June 30, 2023. For the year ended June 30, 2022, net sales to our two largest customers represented <span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_dp_c20210701__20220630__srt--MajorCustomersAxis__custom--Customer1Member__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zFg2hSHaLKVd" title="Concentration of credit risk">70</span>% and <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_dp_c20210701__20220630__srt--MajorCustomersAxis__custom--Customer2Member__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zWnWonGPq0i5" title="Concentration of credit risk">13</span>% of our consolidated net sales, respectively, and <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_dp_c20210701__20220630__srt--MajorCustomersAxis__custom--Customer1Member__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zXF09MPYVnmk" title="Concentration of credit risk">0</span>% of our accounts receivable balance as of June 30, 2022. No other customer accounted for more than ten percent of total net sales.</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; text-indent: 0.5in">For the year ended June 30, 2023, we purchased the majority of our wireless data products from three manufacturing companies located in Asia. If they were to experience delays, capacity constraints or quality control problems, product shipments to our customers could be delayed, or our customers could consequently elect to cancel the underlying product purchase order, which would negatively impact our revenue. For the year ended June 30, 2023, we purchased wireless data products from these suppliers in the amount of $<span id="xdx_907_eus-gaap--CostOfRevenue_pp0p0_c20220701__20230630__us-gaap--NatureOfExpenseAxis__custom--WirelessDataProductsMember_zrFya5OMwXsf" title="Cost of Revenue">37,505,858</span>, or <span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_dp_c20220701__20230630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfGoodsProductLineMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__us-gaap--NatureOfExpenseAxis__custom--WirelessDataProductsMember_zF8LKzvvvwG4" title="Concentration of credit risk">99.6</span>% of total purchases, and had related accounts payable of $<span id="xdx_90D_eus-gaap--AccountsPayableCurrent_iI_pp0p0_c20230630__us-gaap--NatureOfExpenseAxis__custom--WirelessDataProductsMember_zHm5DEnf6nSi" title="Accounts payable current">12,598,741</span> as of June 30, 2023. For the year ended June 30, 2022, we purchased wireless data products from our two suppliers in the amount of $<span id="xdx_909_eus-gaap--CostOfRevenue_pp0p0_c20210701__20220630__us-gaap--NatureOfExpenseAxis__custom--WirelessDataProductsMember_zzM2jLR71l1e" title="Cost of Revenue">22,319,313</span>, or <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_dp_c20210701__20220630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfGoodsProductLineMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__us-gaap--NatureOfExpenseAxis__custom--WirelessDataProductsMember_zi3jQD2Zgrq8" title="Concentration of credit risk">98.3</span>% of total purchases, and had related accounts payable of $<span id="xdx_904_eus-gaap--AccountsPayableCurrent_iI_pp0p0_c20220630__us-gaap--NatureOfExpenseAxis__custom--WirelessDataProductsMember_zyb3R8FLeRs9" title="Accounts payable current">7,409,273</span> as of June 30, 2022.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We maintain our cash accounts with established commercial banks. Such cash deposits exceed the Federal Deposit Insurance Corporation insured limit of $250,000 for each financial institution. However, we do not anticipate any losses on excess deposits.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
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