2023 Q4 Form 20-F Financial Statement

#000121390024028253 Filed on April 01, 2024

View on sec.gov

Income Statement

Concept 2023 Q4 2023 2022 Q4
Revenue $10.01M $10.01M $5.859M
YoY Change 70.81% 70.81% -9.99%
Cost Of Revenue $9.032M $9.032M $5.060M
YoY Change 78.5% 78.5% 10.96%
Gross Profit $976.0K $976.0K $799.0K
YoY Change 22.15% 22.15% -59.0%
Gross Profit Margin 9.75% 9.75% 13.64%
Selling, General & Admin $5.095M $5.095M $5.311M
YoY Change -4.07% -4.07% 90.09%
% of Gross Profit 522.03% 522.03% 664.71%
Research & Development $169.0K
YoY Change
% of Gross Profit 17.32%
Depreciation & Amortization $735.0K $738.0K $286.0K
YoY Change 156.99% 29.47% 2.14%
% of Gross Profit 75.31% 75.61% 35.79%
Operating Expenses $4.816M $5.095M $5.311M
YoY Change -9.32% -4.07% 84.35%
Operating Profit -$3.840M -$5.089M -$4.512M
YoY Change -14.89% 12.79% 384.12%
Interest Expense -$726.0K -$716.0K $2.305M
YoY Change -131.5% -130.08% -466.45%
% of Operating Profit
Other Income/Expense, Net $523.0K
YoY Change -797.33%
Pretax Income -$4.566M -$4.566M -$2.207M
YoY Change 106.89% 76000.0% 41.38%
Income Tax $32.00K $32.00K -$6.000K
% Of Pretax Income
Net Earnings -$4.598M -$4.598M -$2.201M
YoY Change 108.91% 108.91% 42.92%
Net Earnings / Revenue -45.94% -45.94% -37.57%
Basic Earnings Per Share -$3.88
Diluted Earnings Per Share -$3.88 -$3.88 -$0.47
COMMON SHARES
Basic Shares Outstanding 1.216M shares 1.184M shares 8.074M shares
Diluted Shares Outstanding 1.184M shares

Balance Sheet

Concept 2023 Q4 2023 2022 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $535.0K $535.0K $8.137M
YoY Change -93.43% -93.43% 1970.48%
Cash & Equivalents $535.0K $535.0K $8.137M
Short-Term Investments
Other Short-Term Assets $17.00K $576.0K
YoY Change
Inventory $2.386M $2.386M $1.791M
Prepaid Expenses
Receivables $629.0K $629.0K $327.0K
Other Receivables $597.0K $38.00K $779.0K
Total Short-Term Assets $4.164M $4.164M $11.03M
YoY Change -62.26% -62.26% 445.7%
LONG-TERM ASSETS
Property, Plant & Equipment $59.00K $186.0K $41.00K
YoY Change 43.9% 3.91% 1266.67%
Goodwill
YoY Change
Intangibles $5.714M $4.452M
YoY Change 28.35% -11.33%
Long-Term Investments $1.940M $2.007M
YoY Change
Other Assets $168.0K $168.0K $110.0K
YoY Change 52.73% 52.73% -69.95%
Total Long-Term Assets $8.075M $8.075M $4.741M
YoY Change 70.32% 70.32% -12.04%
TOTAL ASSETS
Total Short-Term Assets $4.164M $4.164M $11.03M
Total Long-Term Assets $8.075M $8.075M $4.741M
Total Assets $12.24M $12.24M $15.78M
YoY Change -22.42% -22.42% 112.83%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $709.0K $709.0K $131.0K
YoY Change 441.22% 441.22% -21.56%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $86.00K
YoY Change -100.0% -100.0% -90.72%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $2.308M $2.308M $640.0K
YoY Change 260.63% 260.63% -71.05%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Other Long-Term Liabilities $1.420M $1.420M $2.314M
YoY Change -38.63% -38.63%
Total Long-Term Liabilities $1.420M $1.420M $2.314M
YoY Change -38.63% -38.63% -36.32%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.308M $2.308M $640.0K
Total Long-Term Liabilities $1.420M $1.420M $2.314M
Total Liabilities $3.728M $3.728M $2.954M
YoY Change 26.2% 26.2% -52.04%
SHAREHOLDERS EQUITY
Retained Earnings -$8.276M -$3.678M
YoY Change 125.01% 149.02%
Common Stock $16.79M -$3.319M
YoY Change -605.78%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $8.511M $8.511M $12.82M
YoY Change
Total Liabilities & Shareholders Equity $12.24M $12.24M $15.78M
YoY Change -22.42% -22.42% 112.83%

Cashflow Statement

Concept 2023 Q4 2023 2022 Q4
OPERATING ACTIVITIES
Net Income -$4.598M -$4.598M -$2.201M
YoY Change 108.91% 108.91% 42.92%
Depreciation, Depletion And Amortization $735.0K $738.0K $286.0K
YoY Change 156.99% 29.47% 2.14%
Cash From Operating Activities -$1.499M -$2.668M -$3.786M
YoY Change -60.41% -44.88% 587.11%
INVESTING ACTIVITIES
Capital Expenditures $16.00K $25.00K $38.00K
YoY Change -57.89% -39.02% -2000.0%
Acquisitions
YoY Change
Other Investing Activities -$115.0K -$3.108M
YoY Change
Cash From Investing Activities -$131.0K -$4.814M -$38.00K
YoY Change 244.74% 11641.46% 1800.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 0.000 -$86.00K 11.89M
YoY Change -100.0% -100.68% 1394.22%
NET CHANGE
Cash From Operating Activities -1.499M -$2.668M -3.786M
Cash From Investing Activities -131.0K -$4.814M -38.00K
Cash From Financing Activities 0.000 -$86.00K 11.89M
Net Change In Cash -1.630M -$7.568M 8.070M
YoY Change -120.2% -197.73% 3220.99%
FREE CASH FLOW
Cash From Operating Activities -$1.499M -$2.668M -$3.786M
Capital Expenditures $16.00K $25.00K $38.00K
Free Cash Flow -$1.515M -$2.693M -$3.824M
YoY Change -60.38% -44.83% 596.54%

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 1 — GENERAL INFORMATION</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -24pt"><b> </b></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>a.</b></span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>General</b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Jeffs’ Brands Ltd (the “Company” or “Jeffs’ Brands”) was incorporated in Israel on March 7, 2021. As of the date of issuance of these financial statements the Company has five wholly owned subsidiaries — Smart Repair Pro (“Smart Pro”), Top Rank Ltd. (“Top Rank”), Jeffs’ Brands Holdings Inc. (“Jeffs’ Brands Holdings”), Fort Products Ltd. (“Fort”) and Fort Products LLC (“Fort US”) (the “Subsidiaries”). The Company and the Subsidiaries (“Group”) are engaged in the acquisition, improvement and operation of virtual stores (the “Brands”) mainly on the Amazon.com (“Amazon”) website.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">References to the Company hereinafter, unless the context otherwise provides, include Jeffs’ Brands and the Subsidiaries on a consolidated basis.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Smart Pro, a private corporation founded in the State of California, was established on December 20, 2017, and commenced its operations in June 2019. As of December 31, 2023, Smart Pro operated four brands on the Amazon website.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In April 2021, Top Rank, an Israeli company, was established as a wholly owned subsidiary of Jeffs’ Brands.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On February 23, 2023, Jeffs’ Brands Holdings Inc., was established and registered in Delaware as a wholly owned subsidiary of Jeffs’ Brands.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On March 9, 2023, the Company purchased all of the issued and outstanding share capital of Fort, a company incorporated under the laws of England and Wales. For additional information see note 5.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On April 23, 2023, Fort US, was incorporated and registered under the laws of the State of Delaware as a wholly owned subsidiary of Jeffs’ Brands Holdings.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On February 23, 2023, the Company purchased approximately 49% of the issued and outstanding shares of common stock of SciSparc Nutraceuticals Inc. (“SciSparc U.S”). For additional information see note 7.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>b.</b></span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Initial public offering</b></span></td> </tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On August 30, 2022, the Company completed its initial public offering (“IPO”), for additional information see note 13.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>c.</b></span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Concentration risk</b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group’s activities are mainly conducted through Amazon’s commercial platform. Any material change, whether temporary or permanent, including changes in Amazon’s terms of use and/or its policies, may affect sales performance, and may have a material effect on the Group’s financial position and the results of its operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In addition, the Group is engaged with a small number of suppliers as part of the production process of its brands. Any material changes in the supply process, whether temporary or permanent, may affect sales performance, and may have a material effect on the Group’s financial position and the results of its operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>e.</b></span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Liquidity</b></span></td> </tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">During the year ended December 31, 2023, the Group incurred a net loss of 4,598 thousand and cash flows used in operating activities were $ 2,668 thousand. As of December 31, 2023, the Group had an accumulated deficit of approximately $8,276 thousand.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group has funded its operations to date through the sale of its products, through equity financings, loans from shareholders and other third parties, and sale of its Ordinary Shares and warrants. The Company intends to continue to finance its operating activities through the sale of products via its Brands and through raising additional capital, as needed.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.5in">On January 29, 2024, the Company entered into a private placement transaction (the “Private Placement”), pursuant to a Securities Purchase Agreement with certain institutional investors for aggregate gross proceeds of approximately $7.275 million, before deducting fees to the placement agent and other expenses payable by the Company in connection with the Private Placement.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Management believes that expected cash flows are sufficient to support the Group’s current operations for more than 12 months from the issuance date of these consolidated financial statements.</p>
CY2023 jfbr Bonus Shares And Reverse Share Split Description
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On February 23, 2023, the Company purchased approximately 49% of the issued and outstanding shares of common stock of SciSparc Nutraceuticals Inc. (“SciSparc U.S”).
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<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>b.</b></span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Use of estimates</b></span></td> </tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods and accompanying notes. The Group evaluates on an ongoing basis its assumptions including those related to sales allowances, fair value of intangible assets, useful lives of intangible assets, realizability of deferred tax assets, derivative liability and contingent liabilities, among others. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of the Group’s assets and liabilities.</p>
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<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>i.</b></span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Asset acquisition</b></span></td> </tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Group accounts for a transaction as an asset acquisition when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, or otherwise does not meet the definition of a business. Asset acquisition-related costs are capitalized as part of the asset or assets acquired.</p>
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CY2022Q4 us-gaap Inventory Finished Goods
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CY2022Q4 us-gaap Inventory Net
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CY2023Q4 us-gaap Operating Lease Right Of Use Asset
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CY2023 jfbr Outstanding Due Amount
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CY2023 us-gaap Equity Securities Without Readily Determinable Fair Value Impairment Loss Annual Amount
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jfbr Investment In Exchange Shareson
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us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Change In Unrealized Gain Loss
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CY2023Q4 us-gaap Investment Owned Balance Principal Amount
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CY2022Q4 us-gaap Other Liabilities
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CY2022 jfbr Revenue Sharing Payment
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CY2022 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Issues
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CY2023Q4 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliations Recurring Basis Liability Value
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CY2022 us-gaap Deferred Foreign Income Tax Expense Benefit
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CY2021 us-gaap Deferred Foreign Income Tax Expense Benefit
DeferredForeignIncomeTaxExpenseBenefit
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CY2023 us-gaap Deferred Income Taxes And Tax Credits
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CY2022Q3 us-gaap Dividends And Interest Paid
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CY2023 jfbr Effective Income Tax Rate Blended Corporate Rate
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CY2022 us-gaap Income Loss From Continuing Operations Before Income Taxes Foreign
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CY2023 us-gaap Current Federal State And Local Tax Expense Benefit
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CurrentForeignTaxExpenseBenefit
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CY2023 us-gaap Income Tax Expense Benefit
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CY2023 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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IncomeTaxExpenseBenefit
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DeferredTaxAssetsOperatingLossCarryforwards
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DeferredTaxAssetsGross
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CY2023Q4 us-gaap Deferred Tax Assets Valuation Allowance
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CY2022Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
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CY2022Q4 us-gaap Deferred Tax Assets Net
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CY2023Q4 us-gaap Deferred Income Tax Liabilities
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CY2022Q2 us-gaap Stockholders Equity Reverse Stock Split
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On May 3, 2022, the Company’s Board of Directors approved a 0.806-for-1 reverse split of its issued and outstanding Ordinary Shares, effective as of May 3, 2022, pursuant to which holders of the Company’s Ordinary Shares received 0.806 of an Ordinary Share for every one Ordinary share.
CY2022Q2 us-gaap Stockholders Equity Reverse Stock Split
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On June 16, 2022, the Company’s Board of Directors approved a 1-for-1.85 reverse split of our issued and outstanding Ordinary Shares, effective as of June 16, 2022, pursuant to which holders of our Ordinary Shares received one Ordinary Share for every 1.85 Ordinary Shares held as of such date.
CY2022Q3 jfbr Initial Exercise Price Expire
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CY2022Q3 jfbr Bonus
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CY2022Q3 jfbr Bonus
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CY2022Q4 jfbr Consultancy Services Fees
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CY2022Q4 jfbr Bonus
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CY2022Q4 jfbr Bonus
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CY2023 jfbr Employee Provided Services
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CY2023 jfbr Employee Provided Services
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CY2023Q1 jfbr Bonus
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CY2022 us-gaap Revenue From Contract With Customer Including Assessed Tax
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CY2022Q4 us-gaap Deposits Assets Current
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CY2022 us-gaap Equity Method Investment Realized Gain Loss On Disposal
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CY2023 us-gaap Impairment Of Intangible Assets Excluding Goodwill
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CY2022 jfbr Other Operating Incomeloss
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CY2021 jfbr Other Operating Incomeloss
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CY2023 us-gaap Allocated Share Based Compensation Expense
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CY2022 us-gaap Allocated Share Based Compensation Expense
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CY2022 us-gaap Foreign Currency Transaction Gain Loss Unrealized
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CY2023 us-gaap Impairment Of Intangible Assets Finitelived
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CY2022 us-gaap Impairment Of Intangible Assets Finitelived
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CY2023 us-gaap Amortization Of Financing Costs And Discounts
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CY2023 us-gaap Gains Losses On Extinguishment Of Debt
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CY2022 us-gaap Gains Losses On Extinguishment Of Debt
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EntityCentralIndexKey
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