2023 Q3 Form 20-F Financial Statement

#000121390023081728 Filed on October 31, 2023

View on sec.gov

Income Statement

Concept 2023 Q3 2023 Q2 2023
Revenue $94.20M $214.4M
YoY Change -67.56% -26.16%
Cost Of Revenue $92.00M $209.1M
YoY Change -67.44% -25.99%
Gross Profit $2.200M $5.293M
YoY Change -71.85% -32.27%
Gross Profit Margin 2.34% 2.47%
Selling, General & Admin $2.100M $4.418M
YoY Change -43.81% 18.2%
% of Gross Profit 95.45% 83.47%
Research & Development $400.0K
YoY Change -24.55%
% of Gross Profit 7.56%
Depreciation & Amortization $110.0K $197.2K
YoY Change 84.87% 33.2%
% of Gross Profit 5.0% 3.73%
Operating Expenses $2.100M $4.418M
YoY Change -52.74% -0.58%
Operating Profit $100.0K $875.0K
YoY Change -97.03% -74.04%
Interest Expense $1.000M $1.200M
YoY Change -4146.94% -4956.33%
% of Operating Profit 1000.0% 137.14%
Other Income/Expense, Net $0.00 $1.142M
YoY Change -100.0% 7126.63%
Pretax Income $1.100M $2.017M
YoY Change -65.16% -36.12%
Income Tax $300.0K $265.7K
% Of Pretax Income 27.27% 13.17%
Net Earnings $800.0K $1.751M
YoY Change -68.87% -31.86%
Net Earnings / Revenue 0.85% 0.82%
Basic Earnings Per Share $0.19
Diluted Earnings Per Share $0.08 $0.18
COMMON SHARES
Basic Shares Outstanding 9.201M shares
Diluted Shares Outstanding 9.919M shares

Balance Sheet

Concept 2023 Q3 2023 Q2 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.110M $1.110M
YoY Change -2.28% -2.28%
Cash & Equivalents $6.413M
Short-Term Investments $0.00 $0.00
Other Short-Term Assets $6.960M $6.960M
YoY Change -23.99% -23.99%
Inventory $833.9K $830.0K
Prepaid Expenses $54.28K
Receivables $76.69M $76.69M
Other Receivables $1.287M $1.290M
Total Short-Term Assets $86.89M $86.89M
YoY Change -1.71% -1.71%
LONG-TERM ASSETS
Property, Plant & Equipment $126.0K $990.0K
YoY Change -84.48% 21.95%
Goodwill
YoY Change
Intangibles $288.4K
YoY Change -23.76%
Long-Term Investments
YoY Change
Other Assets $10.60K $10.00K
YoY Change -72.99% -74.52%
Total Long-Term Assets $1.288M $1.290M
YoY Change 4.79% 4.93%
TOTAL ASSETS
Total Short-Term Assets $86.89M $86.89M
Total Long-Term Assets $1.288M $1.290M
Total Assets $88.18M $88.18M
YoY Change -1.63% -1.62%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $51.13M $51.13M
YoY Change -14.16% -14.15%
Accrued Expenses $1.560M $1.560M
YoY Change 97.1% 97.1%
Deferred Revenue $1.671M
YoY Change -54.23%
Short-Term Debt $2.00 $14.02M $15.53M
YoY Change 14.84% 27.19%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $72.26M $72.26M
YoY Change -8.14% -8.13%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $380.0K $380.0K
YoY Change -20.91% -20.91%
Total Long-Term Liabilities $375.1K $380.0K
YoY Change -21.93% -20.91%
TOTAL LIABILITIES
Total Short-Term Liabilities $72.26M $72.26M
Total Long-Term Liabilities $375.1K $380.0K
Total Liabilities $72.63M $72.63M
YoY Change -8.22% -8.22%
SHAREHOLDERS EQUITY
Retained Earnings -$5.334M
YoY Change -24.71%
Common Stock $0.00
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $15.54M $15.54M
YoY Change
Total Liabilities & Shareholders Equity $88.18M $88.18M
YoY Change -1.63% -1.62%

Cashflow Statement

Concept 2023 Q3 2023 Q2 2023
OPERATING ACTIVITIES
Net Income $800.0K $1.751M
YoY Change -68.87% -31.86%
Depreciation, Depletion And Amortization $110.0K $197.2K
YoY Change 84.87% 33.2%
Cash From Operating Activities -$1.840M -$3.752M
YoY Change -1603.27% -2807.93%
INVESTING ACTIVITIES
Capital Expenditures $50.00K $81.91K
YoY Change 146.55% 156.86%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00
YoY Change -100.0% -100.0%
Cash From Investing Activities -$50.00K -$144.2K
YoY Change -6.92% -116.7%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $4.434M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 6.730M $8.749M
YoY Change 360.41% -350.27%
NET CHANGE
Cash From Operating Activities -1.840M -$3.752M
Cash From Investing Activities -50.00K -$144.2K
Cash From Financing Activities 6.730M $8.749M
Net Change In Cash 4.840M $3.461M
YoY Change 216.25% -238.81%
FREE CASH FLOW
Cash From Operating Activities -$1.840M -$3.752M
Capital Expenditures $50.00K $81.91K
Free Cash Flow -$1.890M -$3.834M
YoY Change -1950.76% -3694.36%

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CY2021 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2023 us-gaap Foreign Currency Transactions Description
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CY2022 us-gaap Foreign Currency Transactions Description
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CY2023 us-gaap Foreign Currency Translation Adjustment Description
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CY2022 us-gaap Foreign Currency Translation Adjustment Description
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CY2022 us-gaap Direct Financing Lease Revenue
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CY2023 us-gaap Revenues
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CY2022 us-gaap Revenues
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CY2022Q2 iczoom Accounts Receivable Rate Of Collection
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CY2022 us-gaap Depreciation
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CY2023Q2 us-gaap Capitalized Software Development Costs For Software Sold To Customers
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CY2022Q2 us-gaap Capitalized Software Development Costs For Software Sold To Customers
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CY2022 us-gaap Other General And Administrative Expense
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CY2023 us-gaap Effective Income Tax Rate Reconciliation Deductions Medicare Prescription Drug Benefit
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CY2023 us-gaap Results Of Operations Income Before Income Taxes
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CY2022 us-gaap Results Of Operations Income Before Income Taxes
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CY2023 iczoom Value Added Tax Rate Description
ValueAddedTaxRateDescription
The Company is a general taxpayer and is subject to applicable VAT tax rate of 6% or 16%, and starting from April 1, 2019, the Company is subject to applicable VAT tax rate of 6% or 13%.
CY2023 us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2022 us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2022 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2023 iczoom Outstanding Options
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CY2022 iczoom Outstanding Options
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CY2023 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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CY2022 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
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CY2023 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2022 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2022 us-gaap Other Comprehensive Income Loss Tax
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CY2023 iczoom Recently Issued Accounting Pronouncements Not Yet Adopted Policy Tet Block
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Recently issued accounting pronouncements not yet adopted</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASU 2016-13 was subsequently amended by Accounting Standards Update 2018-19, <i>Codification Improvements to Topic 326, Financial Instruments — Credit Losses</i>, Accounting Standards Update 2019-04 <i>Codification Improvements to Topic 326, Financial Instruments — Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments</i>, and Accounting Standards Update 2019-05, <i>Targeted Transition Relief. </i>In November 2019, the FASB issued ASU 2019-10, which extends the effective date for adoption of ASU 2016-13. In November 2019, the FASB issued ASU 2019-11 to clarify its new credit impairment guidance in ASU 326. Accordingly, for public entities that are not smaller reporting entities, ASU 2016-13 and its amendments is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. For all other entities, this guidance and its amendments will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. As an emerging growth company, we plan to adopt this guidance effective July 1, 2023. We are currently evaluating the impact of our pending adoption of ASU 2016-13 on our consolidated financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The new amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments, with early adoption permitted. The Company is currently evaluating the impact of the new guidance on our consolidated financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminates the troubled debt restructurings (TDRs) accounting model for creditors that have already adopted Topic 326, which is commonly referred to as the current expected credit loss (CECL) model. For entities that have adopted Topic 326, the amendments in this Update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The FASB’s decision to eliminate the TDR accounting model is in response to feedback that the allowance under CECL already incorporates credit losses from loans modified as TDRs and, consequently, the related accounting and disclosures – which preparers often find onerous to apply – no longer provide the same level of benefit to users. The Company is currently evaluating the impact of the new guidance on our consolidated financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820) – Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which stipulates that a contractual restriction on the sale of an equity security should not be considered part of the equity security’s unit of account and, therefore, should not be considered in measuring its fair value. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company is currently evaluating the impact of the new guidance on our consolidated financial statements.</p>
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CY2021Q2 us-gaap Allowance For Doubtful Accounts Receivable
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CY2023 us-gaap Provision For Doubtful Accounts
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CY2022 us-gaap Provision For Doubtful Accounts
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CY2022 us-gaap Goodwill Foreign Currency Translation Gain Loss
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CY2022Q2 us-gaap Inventory Net
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CY2023Q2 us-gaap Construction In Progress Gross
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CY2022Q2 us-gaap Construction In Progress Gross
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CY2023Q2 us-gaap Leasehold Improvements Gross
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CY2022Q2 us-gaap Leasehold Improvements Gross
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369065 usd
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CY2022Q2 us-gaap Property Plant And Equipment Gross
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CY2023Q2 us-gaap Supplies
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CY2022Q2 us-gaap Supplies
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CY2023 iczoom Advance To Suppliers Percentage
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CY2023 us-gaap Payments To Suppliers
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CY2022 us-gaap Payments To Acquire Short Term Investments
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CY2022 us-gaap Proceeds From Sale Of Short Term Investments
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CY2023 us-gaap Asset Retirement Obligation Foreign Currency Translation Gain Loss
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CY2022 us-gaap Asset Retirement Obligation Foreign Currency Translation Gain Loss
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CY2022Q2 us-gaap Short Term Investments
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CY2023 us-gaap Gain Loss On Investments
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CY2022 us-gaap Gain Loss On Investments
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CY2023Q2 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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CY2022Q2 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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CY2023Q2 us-gaap Property Plant And Equipment Net
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CY2022Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
119244 usd
CY2023 us-gaap Depreciation
Depreciation
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CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Grant Date Intrinsic Value
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CY2023Q2 us-gaap Other Receivables Net Current
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CY2022Q2 us-gaap Other Receivables Net Current
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CY2023Q2 us-gaap Prepaid Expense Current
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CY2022Q2 us-gaap Prepaid Expense Current
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CY2023Q2 us-gaap Prepaid Expense And Other Assets Current
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CY2022Q2 us-gaap Prepaid Expense And Other Assets Current
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CY2023Q2 us-gaap Allowance For Doubtful Other Receivables Current
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CY2023Q2 us-gaap Advances To Affiliate
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CY2023Q2 us-gaap Security Deposit
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CY2023 iczoom Other Receivable Settled Percentage
OtherReceivableSettledPercentage
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CY2022 iczoom Other Receivable Settled Percentage
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CY2022Q2 us-gaap Deferred Offering Costs
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CY2023Q2 us-gaap Finite Lived Intangible Assets Gross
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CY2022Q2 us-gaap Finite Lived Intangible Assets Gross
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CY2023Q2 us-gaap Finite Lived Intangible Assets Accumulated Amortization
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CY2022Q2 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
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CY2023Q2 us-gaap Intangible Assets Net Excluding Goodwill
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CY2022 us-gaap Income Tax Expense Benefit
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CY2022Q2 us-gaap Deferred Tax Assets Valuation Allowance
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CY2022Q2 us-gaap Deferred Tax Assets Net
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CY2022Q2 iczoom Value Added Tax Payable
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CY2022 us-gaap Loan Processing Fee
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On November 13, 2020, the Company amended its Memorandum of Association to reverse split the authorized number of shares at a ratio of 1-for-4 share to 25 million shares with par value of US$0.08 per share, and reverse split the issued shares from 70,610,963 shares at par value of US$0.02 per share to 17,652,743 ordinary shares with par value of $0.08 per share. The reverse split is considered part of the Reorganization of the Company, which was retroactively applied as if the transaction occurred at the beginning of the period presented.
CY2022Q3 us-gaap Stockholders Equity Reverse Stock Split
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On August 8, 2022, the Company amended its Memorandum of Association to reverse split the authorized number of shares at a ratio of 1-for-2 share to 35 million shares with par value of US$0.16 per share, and reverse split the issued shares from 17,652,743 shares at par value of US$0.08 per share to 8,826,374 ordinary shares with par value of $0.16 per share. The reverse split is considered part of the Reorganization of the Company, which was retroactively applied as if the transaction occurred at the beginning of the period presented (see Note1).
CY2022Q2 us-gaap Common Stock Shares Outstanding
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CY2022Q2 us-gaap Common Stock Shares Issued
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