2022 Q3 Form 10-Q Financial Statement

#000149315222021314 Filed on August 04, 2022

View on sec.gov

Income Statement

Concept 2022 Q3 2022 Q2 2022 Q1
Revenue $13.38M $11.91M $11.58M
YoY Change 22.88% 20.23% -0.87%
Cost Of Revenue $7.987M $7.906M $7.783M
YoY Change 55.24% 30.8% 21.61%
Gross Profit $5.391M $4.003M $3.796M
YoY Change -6.12% 3.68% -28.11%
Gross Profit Margin 40.3% 33.61% 32.78%
Selling, General & Admin $4.320M $4.327M $4.465M
YoY Change 7.04% 7.09% -24.46%
% of Gross Profit 80.14% 108.11% 117.63%
Research & Development $3.441M $5.145M $5.409M
YoY Change -8.27% 37.57% 51.93%
% of Gross Profit 63.84% 128.55% 142.5%
Depreciation & Amortization $130.0K $267.7K $267.6K
YoY Change -15.64% 32.49% 27.42%
% of Gross Profit 2.41% 6.69% 7.05%
Operating Expenses $7.762M $17.38M $9.873M
YoY Change -0.34% 25.7% 4.26%
Operating Profit -$2.371M -$5.470M -$6.078M
YoY Change 15.88% 39.52% 45.05%
Interest Expense -$2.091M -$137.5K $4.742M
YoY Change 10659.91% -231.58% 11755.25%
% of Operating Profit
Other Income/Expense, Net -$2.094M -$141.1K -$1.140K
YoY Change 6540.91% -236.18%
Pretax Income -$4.465M -$5.611M -$1.337M
YoY Change 112.93% 47.01% -67.79%
Income Tax $36.00K $36.00K $36.00K
% Of Pretax Income
Net Earnings -$4.501M -$5.647M -$1.373M
YoY Change 111.41% 46.72% -67.21%
Net Earnings / Revenue -33.64% -47.42% -11.86%
Basic Earnings Per Share -$0.07 -$0.06 -$0.02
Diluted Earnings Per Share -$48.13K -$62.53K -$15.23K
COMMON SHARES
Basic Shares Outstanding 93.64M shares 90.30M shares 90.12M shares
Diluted Shares Outstanding 93.52M shares 90.30M shares

Balance Sheet

Concept 2022 Q3 2022 Q2 2022 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $14.97M $18.56M $26.32M
YoY Change -52.87% -39.72% -26.07%
Cash & Equivalents $14.97M $13.63M $21.87M
Short-Term Investments $5.378M $4.928M $4.451M
Other Short-Term Assets $1.760M $2.262M $2.214M
YoY Change -12.01% -2.93% 10.71%
Inventory $6.661M $6.926M $7.133M
Prepaid Expenses
Receivables $14.79M $7.049M $9.330M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $38.18M $40.06M $44.99M
YoY Change -24.62% -19.88% -13.47%
LONG-TERM ASSETS
Property, Plant & Equipment $5.168M $1.739M $5.570M
YoY Change 44.57% -44.24% 74.06%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $7.612M $9.832M $9.554M
YoY Change 66.94% 116.54% 112.3%
Other Assets $170.9K $170.9K $170.9K
YoY Change 0.0% 5.21% -14.54%
Total Long-Term Assets $12.95M $15.51M $15.29M
YoY Change 55.93% 98.27% 93.6%
TOTAL ASSETS
Total Short-Term Assets $38.18M $40.06M $44.99M
Total Long-Term Assets $12.95M $15.51M $15.29M
Total Assets $51.13M $55.57M $60.29M
YoY Change -13.27% -3.9% 0.65%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $4.937M $4.861M $5.865M
YoY Change 35.79% -4.69% 4.73%
Accrued Expenses $8.283M $5.754M $6.497M
YoY Change 35.49% 0.48% 20.32%
Deferred Revenue $1.098M $3.047M
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $15.12M $14.94M $17.07M
YoY Change 10.37% -7.11% 10.15%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $4.149M $2.016M $4.516M
YoY Change 73.96% -4.04% 105.26%
Total Long-Term Liabilities $4.149M $2.016M $4.516M
YoY Change 73.96% -4.04% 105.26%
TOTAL LIABILITIES
Total Short-Term Liabilities $15.12M $14.94M $17.07M
Total Long-Term Liabilities $4.149M $2.016M $4.516M
Total Liabilities $19.10M $20.18M $21.42M
YoY Change 20.04% 12.06% 22.38%
SHAREHOLDERS EQUITY
Retained Earnings -$332.2M -$326.1M
YoY Change
Common Stock $926.3K $918.0K
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $32.03M $35.56M $38.87M
YoY Change
Total Liabilities & Shareholders Equity $51.13M $55.57M $60.29M
YoY Change -13.27% -3.9% 0.65%

Cashflow Statement

Concept 2022 Q3 2022 Q2 2022 Q1
OPERATING ACTIVITIES
Net Income -$4.501M -$5.647M -$1.373M
YoY Change 111.41% 46.72% -67.21%
Depreciation, Depletion And Amortization $130.0K $267.7K $267.6K
YoY Change -15.64% 32.49% 27.42%
Cash From Operating Activities -$4.166M -$9.154M -$2.283M
YoY Change 20.62% 71.09% 813.06%
INVESTING ACTIVITIES
Capital Expenditures -$37.21K -$80.57K -$524.4K
YoY Change -80.6% -75.1% 49.82%
Acquisitions
YoY Change
Other Investing Activities -$480.6K -$995.7K -$2.000M
YoY Change 1599.86% -5351.37% -1100.02%
Cash From Investing Activities -$517.7K -$1.076M -$2.524M
YoY Change 135.22% 253.31% 1582.93%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 832.2K 2.027M -95.61K
YoY Change -82.26% 141.96% -100.62%
NET CHANGE
Cash From Operating Activities -4.166M -9.154M -2.283M
Cash From Investing Activities -517.7K -1.076M -2.524M
Cash From Financing Activities 832.2K 2.027M -95.61K
Net Change In Cash -3.851M -8.204M -4.903M
YoY Change -478.62% 70.29% -132.49%
FREE CASH FLOW
Cash From Operating Activities -$4.166M -$9.154M -$2.283M
Capital Expenditures -$37.21K -$80.57K -$524.4K
Free Cash Flow -$4.128M -$9.074M -$1.758M
YoY Change 26.57% 80.5% -1858.29%

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<p id="xdx_807_eus-gaap--BasisOfAccounting_z7cUd98AbiF6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>1. <span id="xdx_824_zMANZlNoa1ja">BASIS OF PRESENTATION</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 22.5pt; text-align: justify; text-indent: -22.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.3in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The condensed consolidated financial statements of Kopin Corporation as of June 25, 2022 and for the three and six month periods ended June 25, 2022 and June 26, 2021 are unaudited and include all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the periods then ended. These condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 25, 2021. The results of the Company’s operations for any interim period are not necessarily indicative of the results of the Company’s operations for any other interim period or for a full fiscal year. As used in this report, the terms “we,” “us,” “our,” “Kopin” and the “Company” mean Kopin Corporation and its subsidiaries, unless the context indicates another meaning.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 22.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.3in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s products are targeted towards the defense and industrial/enterprise wearable markets. Management believes the industrial wearable market is still developing and cannot predict how long it will take to develop or if the Company’s products will be accepted. In addition, the Company’s current strategy is to continue to invest in research and development, even during unprofitable periods, which may result in the Company continuing to incur net losses and negative cash flows from operations. If the Company is unable to achieve and maintain positive cash flows and profitability in the foreseeable future, its financial condition may ultimately be materially adversely affected such that management may be required to reduce operating expenses, including investments in research and development, or raise additional capital. While there can be no assurance the Company will be able to successfully reduce operating expenses or raise additional capital, management believes its historical success in managing cash flows and obtaining capital will continue in the foreseeable future.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 24pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 24pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.3in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has incurred net losses of $<span id="xdx_901_eus-gaap--NetIncomeLoss_iN_pn5n6_di_c20211226__20220625_zl2inbvpjbwh" title="Net losses">7.0</span> million and $<span id="xdx_901_eus-gaap--NetIncomeLoss_pn5n6_c20201227__20211225_zyzFlI56ITVg" title="Net losses">13.4</span> million for the six month period ended June 25, 2022 and for the fiscal year ended December 25, 2021, respectively, and net cash outflows from operations of $<span id="xdx_90A_eus-gaap--NetCashProvidedByUsedInOperatingActivities_iN_pn5n6_di_c20211226__20220625_zZbvlcetWiel" title="Net cash used in operating activities">11.4</span> million and $<span id="xdx_908_eus-gaap--NetCashProvidedByUsedInOperatingActivities_iN_pn5n6_di_c20201227__20211225_z9kqyFDjUMqd" title="Net cash used in operating activities">10.7</span> million for the six month period ended June 25, 2022 and for the fiscal year ended December 25, 2021, respectively. The Company’s net cash outflows from operations were partially a result of funding its ongoing investments in research and development which management believes will continue. The Company has in the past sold equity securities through an At The Money program and in the traditional fashion of significant equity offerings. Management estimates the Company will have sufficient liquidity to fund operations at least through Q3 2023. Nonetheless, management monitors the capital markets on an ongoing basis and may consider raising capital if favorable market conditions develop. If the Company’s actual results are less than projected or the Company needs to raise capital for additional liquidity, the Company may be required to do additional equity financings, reduce expenses or enter into a strategic transaction. However, management can make no assurance that the Company will be able to raise additional capital, reduce expenses sufficiently, or enter into a strategic transaction on terms acceptable to the Company, or at all.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 24pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
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CY2021Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber
2077592 shares
CY2021Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue
2.90
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod
186500 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
1.53
CY2021Q4 us-gaap Contract With Customer Asset Net Current
ContractWithCustomerAssetNetCurrent
2299392 usd
CY2022Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber
1824723 shares
CY2022Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue
2.70
us-gaap Contract With Customer Asset Cumulative Catch Up Adjustment To Revenue Modification Of Contract
ContractWithCustomerAssetCumulativeCatchUpAdjustmentToRevenueModificationOfContract
2969362 usd
CY2022Q2 KOPN Percentage Of Change In Contract Assetscurrent
PercentageOfChangeInContractAssetscurrent
1.29 pure
CY2022Q2 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
417033 usd
CY2021Q2 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
514509 usd
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
1073106 usd
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
3124675 usd
CY2022Q2 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized
3000000.0 usd
us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1
P3Y
CY2021Q4 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
517000 usd
us-gaap Standard Product Warranty Accrual Warranties Issued
StandardProductWarrantyAccrualWarrantiesIssued
1037000 usd
us-gaap Standard Product Warranty Accrual Payments
StandardProductWarrantyAccrualPayments
585000 usd
CY2022Q2 us-gaap Standard Product Warranty Accrual
StandardProductWarrantyAccrual
969000 usd
CY2022Q2 us-gaap Current Income Tax Expense Benefit
CurrentIncomeTaxExpenseBenefit
100000 usd
us-gaap Current Income Tax Expense Benefit
CurrentIncomeTaxExpenseBenefit
100000 usd
CY2021Q2 us-gaap Current Income Tax Expense Benefit
CurrentIncomeTaxExpenseBenefit
100000 usd
us-gaap Current Income Tax Expense Benefit
CurrentIncomeTaxExpenseBenefit
100000 usd
CY2022Q2 us-gaap Operating Loss Carryforwards
OperatingLossCarryforwards
160300000 usd
KOPN Net Operating Loss Expiry Period
NetOperatingLossExpiryPeriod
expiring 2022 through 2037
CY2022Q2 KOPN Operating Loss Carryforwards Unlimited
OperatingLossCarryforwardsUnlimited
82400000 usd
CY2022Q2 us-gaap Contract With Customer Asset Net Current
ContractWithCustomerAssetNetCurrent
5268754 usd
CY2022Q2 us-gaap Contract With Customer Liability Current
ContractWithCustomerLiabilityCurrent
3047208 usd
CY2021Q4 us-gaap Contract With Customer Liability Current
ContractWithCustomerLiabilityCurrent
4063031 usd
KOPN Contract With Customer Liability And Billings In Revenue Cumulative Catch Up Adjustment To Revenue Modification Of Contract
ContractWithCustomerLiabilityAndBillingsInRevenueCumulativeCatchUpAdjustmentToRevenueModificationOfContract
1015823 usd
CY2022Q2 KOPN Percentage Contract Liabilities And Billings In Excess Of Revenue Earned
PercentageContractLiabilitiesAndBillingsInExcessOfRevenueEarned
-0.25 pure
CY2022Q2 us-gaap Contract With Customer Liability Noncurrent
ContractWithCustomerLiabilityNoncurrent
5371 usd
CY2021Q4 us-gaap Contract With Customer Liability Noncurrent
ContractWithCustomerLiabilityNoncurrent
20664 usd
us-gaap Contract With Customer Liability Cumulative Catch Up Adjustment To Revenue Modification Of Contract
ContractWithCustomerLiabilityCumulativeCatchUpAdjustmentToRevenueModificationOfContract
15293 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
4401670 usd
CY2022Q2 KOPN Percentage Of Change In Contract Liabilitiesnoncurrent
PercentageOfChangeInContractLiabilitiesnoncurrent
-0.74 pure
CY2022Q2 KOPN Net Contract Assets Liabilities
NetContractAssetsLiabilities
2216175 usd
CY2021Q4 KOPN Net Contract Assets Liabilities
NetContractAssetsLiabilities
-1784303 usd
KOPN Contract With Customer Assets Liability Cumulative Catch Up Adjustment To Revenue Modification Of Contract
ContractWithCustomerAssetsLiabilityCumulativeCatchUpAdjustmentToRevenueModificationOfContract
4000478 usd
CY2022Q2 KOPN Percentage Of Change In Net Contract Assets Liabilities
PercentageOfChangeInNetContractAssetsLiabilities
-2.24 pure
KOPN Contract With Customer Assets Liability Cumulative Catch Up Adjustment To Revenue Modification Of Contract
ContractWithCustomerAssetsLiabilityCumulativeCatchUpAdjustmentToRevenueModificationOfContract
4000000.0 usd
CY2022Q2 us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
2900000 usd
us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
200000 usd
CY2021Q2 us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
100000 usd
us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
1300000 usd
CY2022Q2 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
33400000 usd
CY2022Q2 us-gaap Operating Lease Cost
OperatingLeaseCost
250361 usd
CY2021Q2 us-gaap Operating Lease Cost
OperatingLeaseCost
289685 usd
us-gaap Operating Lease Cost
OperatingLeaseCost
499864 usd
us-gaap Operating Lease Cost
OperatingLeaseCost
576578 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear
480260 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
981434 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
892573 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
638070 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
604000 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
805333 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
660971 usd
CY2022Q2 us-gaap Operating Lease Liability
OperatingLeaseLiability
3740699 usd
KOPN Percentage Of Total Revenue
PercentageOfTotalRevenue
1 pure
us-gaap Revenues
Revenues
21582000 usd
CY2022Q2 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
767440 usd
CY2022Q2 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
2973259 usd
CY2022Q2 us-gaap Operating Lease Liability
OperatingLeaseLiability
3740699 usd
us-gaap Operating Lease Payments
OperatingLeasePayments
504916 usd
CY2022Q2 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0589 pure
CY2022Q2 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P5Y1M9D
CY2022Q2 us-gaap Noncurrent Assets
NoncurrentAssets
5506000 usd
CY2021Q4 us-gaap Noncurrent Assets
NoncurrentAssets
5717000 usd
CY2022Q2 us-gaap Revenues
Revenues
11909000 usd
CY2022Q2 KOPN Percentage Of Total Revenue
PercentageOfTotalRevenue
1 pure
CY2021Q2 us-gaap Revenues
Revenues
9905000 usd
CY2021Q2 KOPN Percentage Of Total Revenue
PercentageOfTotalRevenue
1 pure
us-gaap Revenues
Revenues
23487000 usd
KOPN Percentage Of Total Revenue
PercentageOfTotalRevenue
1 pure
CY2022Q2 us-gaap Revenues
Revenues
11909000 usd
CY2021Q2 us-gaap Revenues
Revenues
9905000 usd
us-gaap Revenues
Revenues
23487000 usd
us-gaap Revenues
Revenues
21582000 usd
CY2022Q2 us-gaap Revenue From Related Parties
RevenueFromRelatedParties
157730 usd
CY2021Q2 us-gaap Revenue From Related Parties
RevenueFromRelatedParties
1482962 usd
us-gaap Revenue From Related Parties
RevenueFromRelatedParties
781947 usd
us-gaap Revenue From Related Parties
RevenueFromRelatedParties
2805847 usd

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