2022 Q4 Form 10-K Financial Statement

#000149315222036792 Filed on December 29, 2022

View on sec.gov

Income Statement

Concept 2022 Q4 2022 Q3 2022
Revenue $452.1K $179.3K $600.0K
YoY Change -90.32% -93.95% -89.27%
Cost Of Revenue $109.2K $43.35K $1.196M
YoY Change -84.6% -90.97% 19.56%
Gross Profit $342.9K $135.9K $6.314M
YoY Change -91.34% -94.52% 37.57%
Gross Profit Margin 75.85% 75.82% 1052.41%
Selling, General & Admin $1.104M $1.143M $8.339M
YoY Change -69.74% -42.4% 31.11%
% of Gross Profit 321.82% 840.54% 132.06%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $15.15K $55.93K $55.67K
YoY Change 58.96% 548.09% 178.33%
% of Gross Profit 4.42% 41.14% 0.88%
Operating Expenses $1.104M $1.143M $8.322M
YoY Change -69.74% -42.4% 30.85%
Operating Profit -$760.7K -$1.007M -$2.008M
YoY Change -343.15% -302.22% 13.42%
Interest Expense $50.00 $1.840K $1.840K
YoY Change -96.79% 291.49%
% of Operating Profit
Other Income/Expense, Net $373.00 -$1.160K $34.77K
YoY Change -98.41% 52.63%
Pretax Income -$760.3K -$1.006M -$1.973M
YoY Change -325.04% -302.2% 11.46%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$760.3K -$930.4K -$1.833M
YoY Change -347.8% -307.43% 13.84%
Net Earnings / Revenue -168.17% -518.94% -305.48%
Basic Earnings Per Share $0.00 -$0.01
Diluted Earnings Per Share $0.00 $0.00 -$0.01
COMMON SHARES
Basic Shares Outstanding 400.0M shares 40.00M shares 400.0M shares
Diluted Shares Outstanding 400.0M shares 400.0M shares

Balance Sheet

Concept 2022 Q4 2022 Q3 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $25.32K $267.1K $267.1K
YoY Change -99.06% -87.03% -87.03%
Cash & Equivalents $25.32K $267.1K $267.1K
Short-Term Investments
Other Short-Term Assets $568.8K $629.8K $629.8K
YoY Change -1.49% -8.42% -8.73%
Inventory
Prepaid Expenses $207.8K $268.3K
Receivables
Other Receivables $70.86K $65.85K
Total Short-Term Assets $630.2K $917.5K $917.5K
YoY Change -81.56% -68.04% -68.03%
LONG-TERM ASSETS
Property, Plant & Equipment $122.7K $134.0K $809.7K
YoY Change -53.23% 95.01% 131.34%
Goodwill
YoY Change
Intangibles $2.596K $2.082K
YoY Change -18.93%
Long-Term Investments
YoY Change
Other Assets $7.294K $8.317K $51.38K
YoY Change
Total Long-Term Assets $798.6K $863.1K $863.1K
YoY Change 201.64% 143.99% 146.61%
TOTAL ASSETS
Total Short-Term Assets $630.2K $917.5K $917.5K
Total Long-Term Assets $798.6K $863.1K $863.1K
Total Assets $1.429M $1.781M $1.781M
YoY Change -61.19% -44.79% -44.7%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.376M $799.6K $1.539M
YoY Change 30.48% -44.11% 7.6%
Accrued Expenses $675.5K $358.6K $358.6K
YoY Change 169.81% 6.97% 5.48%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $5.717M $5.172M $5.172M
YoY Change 7.62% -0.34% -0.35%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $266.6K $264.1K $264.1K
YoY Change 621.6% 397.12% 428.24%
Total Long-Term Liabilities $266.6K $264.1K $264.1K
YoY Change 621.59% 397.14% 428.24%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.717M $5.172M $5.172M
Total Long-Term Liabilities $266.6K $264.1K $264.1K
Total Liabilities $5.983M $5.436M $5.155M
YoY Change 14.71% 3.68% 1.48%
SHAREHOLDERS EQUITY
Retained Earnings -$4.414M -$3.654M
YoY Change 100.65%
Common Stock $40.00K $40.00K
YoY Change 900.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$4.274M -$3.375M -$3.375M
YoY Change
Total Liabilities & Shareholders Equity $1.429M $1.781M $1.781M
YoY Change -61.19% -44.79% -44.7%

Cashflow Statement

Concept 2022 Q4 2022 Q3 2022
OPERATING ACTIVITIES
Net Income -$760.3K -$930.4K -$1.833M
YoY Change -347.8% -307.43% 13.84%
Depreciation, Depletion And Amortization $15.15K $55.93K $55.67K
YoY Change 58.96% 548.09% 178.33%
Cash From Operating Activities -$242.9K -$1.592M -$1.592M
YoY Change -135.74% -185.65% -183.36%
INVESTING ACTIVITIES
Capital Expenditures $139.2K $139.2K
YoY Change -1272.37% -795.78%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$509.00 -$139.2K -$139.2K
YoY Change -93.18% 1072.37% 595.78%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities
YoY Change
NET CHANGE
Cash From Operating Activities -$242.9K -1.592M -$1.592M
Cash From Investing Activities -$509.00 -139.2K -$139.2K
Cash From Financing Activities
Net Change In Cash -$241.8K -1.731M -$1.793M
YoY Change -135.97% -193.74% -194.84%
FREE CASH FLOW
Cash From Operating Activities -$242.9K -$1.592M -$1.592M
Capital Expenditures $139.2K $139.2K
Free Cash Flow -$242.9K -$1.731M -$1.731M
YoY Change -135.35% -192.55% -189.7%

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CY2022 us-gaap Temporary Equity Foreign Currency Translation Adjustments
TemporaryEquityForeignCurrencyTranslationAdjustments
335412 usd
CY2022Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
-3655583 usd
CY2020Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
-215655 usd
CY2021 KPEA Stock Issued During Period Value Reverse Acquisition Recapitalization
StockIssuedDuringPeriodValueReverseAcquisitionRecapitalization
-4 usd
CY2021 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-1612334 usd
CY2021 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
-162400 usd
CY2021 us-gaap Temporary Equity Foreign Currency Translation Adjustments
TemporaryEquityForeignCurrencyTranslationAdjustments
-27761 usd
CY2021Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
-2018154 usd
CY2022 us-gaap Profit Loss
ProfitLoss
-1972841 usd
CY2021 us-gaap Profit Loss
ProfitLoss
-1774734 usd
CY2022 us-gaap Depreciation And Amortization
DepreciationAndAmortization
55932 usd
CY2021 us-gaap Depreciation And Amortization
DepreciationAndAmortization
24527 usd
CY2022 us-gaap Operating Lease Right Of Use Asset Amortization Expense
OperatingLeaseRightOfUseAssetAmortizationExpense
386152 usd
CY2021 us-gaap Operating Lease Right Of Use Asset Amortization Expense
OperatingLeaseRightOfUseAssetAmortizationExpense
294658 usd
CY2022 us-gaap Gain Loss On Sale Of Property Plant Equipment
GainLossOnSaleOfPropertyPlantEquipment
-3752 usd
CY2022 us-gaap Increase Decrease In Prepaid Expense
IncreaseDecreaseInPrepaidExpense
-32770 usd
CY2021 us-gaap Increase Decrease In Prepaid Expense
IncreaseDecreaseInPrepaidExpense
636390 usd
CY2022 us-gaap Increase Decrease In Other Receivables
IncreaseDecreaseInOtherReceivables
-50351 usd
CY2021 us-gaap Increase Decrease In Other Receivables
IncreaseDecreaseInOtherReceivables
-15242 usd
CY2022 us-gaap Increase Decrease In Security Deposits
IncreaseDecreaseInSecurityDeposits
-46802 usd
CY2022 us-gaap Increase Decrease In Other Accounts Payable
IncreaseDecreaseInOtherAccountsPayable
257078 usd
CY2021 us-gaap Increase Decrease In Other Accounts Payable
IncreaseDecreaseInOtherAccountsPayable
1404380 usd
CY2022 us-gaap Increase Decrease In Deferred Revenue
IncreaseDecreaseInDeferredRevenue
142789 usd
CY2021 us-gaap Increase Decrease In Deferred Revenue
IncreaseDecreaseInDeferredRevenue
2879891 usd
CY2022 us-gaap Increase Decrease In Employee Related Liabilities
IncreaseDecreaseInEmployeeRelatedLiabilities
-45723 usd
CY2021 us-gaap Increase Decrease In Employee Related Liabilities
IncreaseDecreaseInEmployeeRelatedLiabilities
12323 usd
CY2022 us-gaap Increase Decrease In Due To Related Parties
IncreaseDecreaseInDueToRelatedParties
251175 usd
CY2021 us-gaap Increase Decrease In Due To Related Parties
IncreaseDecreaseInDueToRelatedParties
-224243 usd
CY2022 us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
-206303 usd
CY2021 us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
212862 usd
CY2022 us-gaap Increase Decrease In Operating Lease Liability
IncreaseDecreaseInOperatingLeaseLiability
-500460 usd
CY2021 us-gaap Increase Decrease In Operating Lease Liability
IncreaseDecreaseInOperatingLeaseLiability
-294658 usd
CY2022 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-1592130 usd
CY2021 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
1913858 usd
CY2022 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
139155 usd
CY2021 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
19306 usd
CY2021 us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
2677 usd
CY2022 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-139155 usd
CY2021 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-21983 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
-61269 usd
CY2021 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
26644 usd
CY2022 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-1792554 usd
CY2021 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
1918519 usd
CY2021Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
2059685 usd
CY2020Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
141166 usd
CY2022Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
267131 usd
CY2021Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
2059685 usd
CY2021 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
5633 usd
CY2022 us-gaap Fair Value Of Assets Acquired
FairValueOfAssetsAcquired
750486 usd
CY2021 us-gaap Fair Value Of Assets Acquired
FairValueOfAssetsAcquired
195738 usd
CY2022Q3 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
400000000 shares
CY2022Q3 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
400000000 shares
CY2021Q3 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
338629 usd
CY2022Q3 KPEA Prepaid Supplies
PrepaidSupplies
202150 usd
CY2021Q3 KPEA Prepaid Supplies
PrepaidSupplies
78248 usd
CY2022Q3 us-gaap Prepaid Expense Current And Noncurrent
PrepaidExpenseCurrentAndNoncurrent
9369 usd
CY2022 us-gaap Marketing Expense
MarketingExpense
16572 usd
CY2022Q3 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2021Q3 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2022Q3 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2022Q3 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2021Q3 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2021Q3 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2022Q3 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
1000000000 shares
CY2022 us-gaap Use Of Estimates
UseOfEstimates
<p id="xdx_84F_eus-gaap--UseOfEstimates_zPyGOD0Q3S9i" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline"><span id="xdx_863_zPo6lL1SXlai">Use of Estimates and Assumptions</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimate and assumptions that impact the presented amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the presented amounts of revenues and expenses during the period. Actual results may differ from those estimates. Significant estimates during the year ended September 30, 2022 and 2021 include the collectability of receivables, the useful lives of long-lived assets and intangibles, assumptions used in assessing impairment of long-lived assets, valuation of accruals for expenses and tax due.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2022 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<p id="xdx_847_eus-gaap--PriorPeriodReclassificationAdjustmentDescription_zTWE2haL89rl" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline"><span id="xdx_865_z0PRwKVqWbgd">Reclassification</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.45in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.45in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2022 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-1592130 usd
CY2022 us-gaap Profit Loss
ProfitLoss
-1972841 usd
CY2022 KPEA Working Capital Deficit
WorkingCapitalDeficit
4254598 usd
CY2022 us-gaap Proceeds From Related Party Debt
ProceedsFromRelatedPartyDebt
300000 usd
CY2022 KPEA Revenue Percentage
RevenuePercentage
0.344 pure
CY2021 us-gaap Revenues
Revenues
400000 usd
CY2022 us-gaap Revenues
Revenues
600000 usd
CY2021Q3 us-gaap Prepaid Expense Current And Noncurrent
PrepaidExpenseCurrentAndNoncurrent
148708 usd
CY2022Q3 us-gaap Accumulated Other Comprehensive Income Loss Net Of Tax
AccumulatedOtherComprehensiveIncomeLossNetOfTax
279367 usd
CY2021Q3 us-gaap Accumulated Other Comprehensive Income Loss Net Of Tax
AccumulatedOtherComprehensiveIncomeLossNetOfTax
-32016 usd
CY2022Q3 KPEA Prepaid Rent And Building Management And Utilities
PrepaidRentAndBuildingManagementAndUtilities
23324 usd
CY2021Q3 KPEA Prepaid Rent And Building Management And Utilities
PrepaidRentAndBuildingManagementAndUtilities
85474 usd
CY2022Q3 us-gaap Supplies
Supplies
202150 usd
CY2021Q3 us-gaap Supplies
Supplies
78248 usd
CY2021Q3 KPEA Prepaid System Maintenance Services
PrepaidSystemMaintenanceServices
5209 usd
CY2022Q3 us-gaap Prepaid Taxes
PrepaidTaxes
5154 usd
CY2022 us-gaap Selling Expense
SellingExpense
6641485 usd
CY2021 us-gaap Selling Expense
SellingExpense
3741389 usd
CY2022 KPEA Sales Commissions Expense
SalesCommissionsExpense
5844846 usd
CY2021 KPEA Sales Commissions Expense
SalesCommissionsExpense
2929080 usd
CY2022 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p id="xdx_844_eus-gaap--ConcentrationRiskCreditRisk_zXvVIMaxA5hl" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline"><span id="xdx_86F_zK79sJgnzxN6">Concentration of Risk</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Credit risk</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 29.15pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and other receivable. As September 30, 2022 and 2021, $<span id="xdx_907_eus-gaap--Deposits_iI_c20220930_zflF6eokzOQb" title="Deposits">252,512</span> (RMB<span id="xdx_90C_eus-gaap--Deposits_iI_uRMB_c20220930__srt--StatementGeographicalAxis__country--CN_za0NwW9cztfe" title="Deposits">1,796,861</span>) and $<span id="xdx_905_eus-gaap--Deposits_iI_c20210930_zdx5WS2vfqxf" title="Deposits">1,886,622</span> (RMB<span id="xdx_909_eus-gaap--Deposits_iI_uRMB_c20210930__srt--StatementGeographicalAxis__country--CN_zkoppgpR0yj7" title="Deposits">12,162,295</span>), respectively, were deposited with various major financial institutions located in the PRC. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 29.15pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Historically, deposits in Chinese banks are secure due to state policy to protect depositor interests. However, China promulgated a Bankruptcy Law in August 2006 that came into effect on June 1, 2007, which contains a separate article expressly stating that the State Council may promulgate implementation measures to provide for the bankruptcy of Chinese banks based on the Bankruptcy Law. Under the current Bankruptcy Law, a Chinese bank may file bankruptcy if it deems itself to be insolvent. In addition, since China’s concession to the World Trade Organization, foreign banks have been gradually permitted to operate in China and have intensified competition in many aspects, especially since the opening of the Renminbi business to foreign banks in late 2006. Therefore, the risk of bankruptcy at the institutions that the Company maintains deposits has increased. In the event of bankruptcy, the Company is unlikely to reclaim its deposits in full since it is unlikely to be classified as a secured creditor under PRC laws.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.05pt; text-align: justify; text-indent: -0.05pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.05pt; text-align: justify; text-indent: -0.05pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risks of variable interest entity structure</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.05pt; text-align: justify; text-indent: 29.1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In the opinion of management, (i) the corporate structure of the Company is in compliance with existing PRC laws and regulations; (ii) the VIE Arrangements are valid and binding, and do not result in any violation of PRC laws or regulations currently in effect; and (iii) the business operations of the foreign-invested enterprise and the VIE are in compliance with existing PRC laws and regulations in all material respects.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.05pt; text-align: justify; text-indent: 29.1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">However, there are substantial uncertainties regarding the interpretation and application of current and future PRC laws and regulations. Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to the foregoing opinion of its management. If the current corporate structure of the Company or the VIE Arrangements is found to be in violation of any existing or future PRC laws and regulations, the Company may be required to restructure its corporate structure and operations in the PRC to comply with changing and new PRC laws and regulations. In the opinion of management, the likelihood of loss in respect of the Company’s current corporate structure or the VIE Arrangements is remote based on current facts and circumstances.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2022Q3 us-gaap Deposits
Deposits
252512 usd
CY2021Q3 us-gaap Deposits
Deposits
1886622 usd
CY2021Q3 us-gaap Prepaid Taxes
PrepaidTaxes
5689 usd
CY2022Q3 KPEA Prepaid Professional Services
PrepaidProfessionalServices
25941 usd
CY2021Q3 KPEA Prepaid Professional Services
PrepaidProfessionalServices
148708 usd
CY2022Q3 us-gaap Other Prepaid Expense Current
OtherPrepaidExpenseCurrent
11737 usd
CY2021Q3 us-gaap Other Prepaid Expense Current
OtherPrepaidExpenseCurrent
15301 usd
CY2022Q3 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
268306 usd
CY2022Q3 us-gaap Prepaid Rent
PrepaidRent
14735 usd
CY2021Q3 us-gaap Prepaid Rent
PrepaidRent
93583 usd
CY2022Q3 KPEA Advance To Employees
AdvanceToEmployees
45250 usd
CY2021Q3 KPEA Advance To Employees
AdvanceToEmployees
30241 usd
CY2022Q3 us-gaap Other Receivables Gross Current
OtherReceivablesGrossCurrent
5865 usd
CY2022Q3 us-gaap Other Receivables Net Current
OtherReceivablesNetCurrent
65850 usd
CY2021Q3 us-gaap Other Receivables Net Current
OtherReceivablesNetCurrent
123824 usd
CY2022Q3 us-gaap Other Receivables Gross Current
OtherReceivablesGrossCurrent
5865 usd
CY2022Q3 KPEA Refundable Fees
RefundableFees
3677 usd
CY2022Q3 us-gaap Short Term Bank Loans And Notes Payable
ShortTermBankLoansAndNotesPayable
2188 usd
CY2022Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
170115 usd
CY2021Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
96476 usd
CY2022Q3 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
36092 usd
CY2021Q3 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
27751 usd
CY2022Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
134023 usd
CY2021Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
68725 usd
CY2022 us-gaap Depreciation
Depreciation
55666 usd
CY2021 us-gaap Depreciation
Depreciation
24392 usd
CY2022Q2 us-gaap Leasehold Improvements Gross
LeaseholdImprovementsGross
16184 usd
CY2022Q2 us-gaap Other Receivables
OtherReceivables
3677 usd
CY2022Q2 us-gaap Proceeds From Sale Of Furniture And Fixtures
ProceedsFromSaleOfFurnitureAndFixtures
281 usd
CY2022Q2 us-gaap Gain Loss On Sale Of Property Plant Equipment
GainLossOnSaleOfPropertyPlantEquipment
-3752 usd
CY2022Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2021Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2022Q3 us-gaap Intangible Assets Gross Excluding Goodwill
IntangibleAssetsGrossExcludingGoodwill
2449 usd
CY2021Q3 us-gaap Intangible Assets Gross Excluding Goodwill
IntangibleAssetsGrossExcludingGoodwill
2703 usd
CY2022Q3 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
367 usd
CY2021Q3 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
135 usd
CY2022Q3 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
2082 usd
CY2021Q3 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
2568 usd
CY2021Q3 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
1071 usd
CY2021Q2 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
1377 usd
CY2022 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
266 usd
CY2021 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
135 usd
CY2022Q3 KPEA Advance Payments From Customers
AdvancePaymentsFromCustomers
2960357 usd
CY2021Q3 KPEA Advance Payments From Customers
AdvancePaymentsFromCustomers
3122705 usd
CY2022Q3 us-gaap Deferred Revenue Current
DeferredRevenueCurrent
2960357 usd
CY2021Q3 us-gaap Deferred Revenue Current
DeferredRevenueCurrent
3122705 usd
CY2022Q3 us-gaap Deferred Revenue Current
DeferredRevenueCurrent
2960357 usd
CY2021Q3 us-gaap Deferred Revenue Current
DeferredRevenueCurrent
3122705 usd
CY2022Q3 us-gaap Due To Related Parties Current And Noncurrent
DueToRelatedPartiesCurrentAndNoncurrent
267006 usd
CY2021Q3 us-gaap Due To Related Parties Current And Noncurrent
DueToRelatedPartiesCurrentAndNoncurrent
39629 usd
CY2021Q3 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
1000000000 shares
CY2022Q3 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.0001
CY2021Q3 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.0001
CY2022Q3 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
400000000 shares
CY2022Q3 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
400000000 shares
CY2021Q3 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
400000000 shares
CY2021Q3 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
400000000 shares
CY2021Q2 us-gaap Stock Issued During Period Shares New Issues
StockIssuedDuringPeriodSharesNewIssues
34158391 shares
CY2021Q2 us-gaap Stock Repurchased And Retired During Period Shares
StockRepurchasedAndRetiredDuringPeriodShares
15535309 shares
CY2022 us-gaap Other Comprehensive Income Loss Before Reclassifications Tax
OtherComprehensiveIncomeLossBeforeReclassificationsTax
-1972841 usd
CY2021 us-gaap Other Comprehensive Income Loss Before Reclassifications Tax
OtherComprehensiveIncomeLossBeforeReclassificationsTax
-1774734 usd
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CY2022 us-gaap Effective Income Tax Rate Continuing Operations
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CY2021 us-gaap Operating Lease Right Of Use Asset Amortization Expense
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