2022 Q4 Form 10-Q Financial Statement

#000149315222031287 Filed on November 10, 2022

View on sec.gov

Income Statement

Concept 2022 Q4 2022 Q3 2021 Q3
Revenue $12.39M $12.71M $13.42M
YoY Change -19.92% -5.32% 6.09%
Cost Of Revenue $9.248M $8.454M $7.978M
YoY Change 18.1% 5.97% 27.24%
Gross Profit $3.142M $4.252M $5.443M
YoY Change -58.88% -21.88% -14.69%
Gross Profit Margin 25.36% 33.46% 40.56%
Selling, General & Admin $5.518M $5.488M $5.593M
YoY Change -0.41% -1.89% 10.97%
% of Gross Profit 175.59% 129.06% 102.76%
Research & Development $472.9K $469.6K $275.2K
YoY Change 100.9% 70.63% 205.81%
% of Gross Profit 15.05% 11.04% 5.06%
Depreciation & Amortization $198.2K $191.0K $980.0K
YoY Change -78.95% -80.52% 5.38%
% of Gross Profit 6.31% 4.49% 18.0%
Operating Expenses $6.189M $6.148M $6.083M
YoY Change 3.34% 1.08% 13.91%
Operating Profit -$3.047M -$1.896M -$639.6K
YoY Change -284.21% 196.46% -161.5%
Interest Expense $202.4K $121.6K $1.465M
YoY Change -80.67% -91.7% 405.28%
% of Operating Profit
Other Income/Expense, Net $864.6K $1.652M $3.030K
YoY Change 4295.56% 54407.19% -96.63%
Pretax Income -$2.182M -$244.6K $718.1K
YoY Change -182.65% -134.06% -48.34%
Income Tax $220.1K $193.3K $167.6K
% Of Pretax Income 23.34%
Net Earnings -$2.093M -$620.7K $188.0K
YoY Change -248.77% -430.23% -73.89%
Net Earnings / Revenue -16.89% -4.89% 1.4%
Basic Earnings Per Share -$0.19 -$0.06 $0.02
Diluted Earnings Per Share -$0.19 -$0.06 $16.70K
COMMON SHARES
Basic Shares Outstanding 11.27M shares 11.26M shares 11.25M shares
Diluted Shares Outstanding 11.27M shares 11.26M shares 11.25M shares

Balance Sheet

Concept 2022 Q4 2022 Q3 2021 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $20.95M $20.92M $27.00M
YoY Change -18.14% -22.51% 8.43%
Cash & Equivalents $20.95M $20.92M $27.00M
Short-Term Investments
Other Short-Term Assets $2.749M $2.480M $2.831M
YoY Change 8.9% -12.37% 13.22%
Inventory
Prepaid Expenses $1.634M $1.357M
Receivables $4.596M $7.320M $22.21M
Other Receivables $52.47K $61.61K $107.4K
Total Short-Term Assets $43.08M $44.07M $52.15M
YoY Change -20.36% -15.48% -1.05%
LONG-TERM ASSETS
Property, Plant & Equipment $8.720M $8.851M $12.02M
YoY Change -22.8% -26.36% -10.3%
Goodwill $9.303M $9.303M
YoY Change
Intangibles
YoY Change
Long-Term Investments $1.065M $1.059M $2.995M
YoY Change -63.57% -64.63% 24.8%
Other Assets $532.00 $529.00 $59.64K
YoY Change -98.4% -99.11%
Total Long-Term Assets $21.74M $22.37M $28.74M
YoY Change -20.69% -22.16% -5.45%
TOTAL ASSETS
Total Short-Term Assets $43.08M $44.07M $52.15M
Total Long-Term Assets $21.74M $22.37M $28.74M
Total Assets $64.82M $66.45M $80.89M
YoY Change -20.47% -17.86% -2.66%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $942.7K $1.192M $939.9K
YoY Change 8.17% 26.84% -27.7%
Accrued Expenses $4.115M $3.559M $5.455M
YoY Change -24.71% -34.75% -0.83%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $191.7K $351.8K $10.42M
YoY Change -98.11% -96.63% 7.46%
Total Short-Term Liabilities $19.36M $18.97M $21.01M
YoY Change -7.96% -9.71% 6.65%
LONG-TERM LIABILITIES
Long-Term Debt $293.3K $270.2K $396.8K
YoY Change 143.81% -31.91% -76.66%
Other Long-Term Liabilities $789.6K $836.9K $438.4K
YoY Change 147.06% 90.89% -60.14%
Total Long-Term Liabilities $293.3K $270.2K $835.2K
YoY Change -33.33% -67.65% -70.17%
TOTAL LIABILITIES
Total Short-Term Liabilities $19.36M $18.97M $21.01M
Total Long-Term Liabilities $293.3K $270.2K $835.2K
Total Liabilities $20.45M $20.10M $28.28M
YoY Change -27.97% -28.94% -3.14%
SHAREHOLDERS EQUITY
Retained Earnings -$42.37M -$40.27M
YoY Change
Common Stock $122.2K $122.1K
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $3.921M $3.921M
YoY Change
Treasury Stock Shares 939.0K shares 939.0K shares
Shareholders Equity $40.31M $42.07M $52.60M
YoY Change
Total Liabilities & Shareholders Equity $64.82M $66.45M $80.89M
YoY Change -20.47% -17.86% -2.66%

Cashflow Statement

Concept 2022 Q4 2022 Q3 2021 Q3
OPERATING ACTIVITIES
Net Income -$2.093M -$620.7K $188.0K
YoY Change -248.77% -430.23% -73.89%
Depreciation, Depletion And Amortization $198.2K $191.0K $980.0K
YoY Change -78.95% -80.52% 5.38%
Cash From Operating Activities $390.7K $1.299M -$3.392M
YoY Change 10.04% -138.3% -172.01%
INVESTING ACTIVITIES
Capital Expenditures -$95.27K $1.348M -$216.1K
YoY Change -82.92% -723.57% -55.9%
Acquisitions
YoY Change
Other Investing Activities -$383.3K $453.6K $19.71K
YoY Change -310.55% 2201.42% -165.7%
Cash From Investing Activities -$288.1K -$894.0K -$196.4K
YoY Change -23.34% 355.17% -62.23%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net -$100.1K
YoY Change -78.24%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -91.44K -$445.7K -463.6K
YoY Change -44.04% -3.85% -615.08%
NET CHANGE
Cash From Operating Activities 390.7K $1.299M -3.392M
Cash From Investing Activities -288.1K -$894.0K -196.4K
Cash From Financing Activities -91.44K -$445.7K -463.6K
Net Change In Cash 11.19K -$3.041M -4.052M
YoY Change -106.08% -24.95% -194.66%
FREE CASH FLOW
Cash From Operating Activities $390.7K $1.299M -$3.392M
Capital Expenditures -$95.27K $1.348M -$216.1K
Free Cash Flow $486.0K -$48.74K -$3.176M
YoY Change -46.77% -98.47% -161.07%

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CY2022Q3 us-gaap Net Income Loss
NetIncomeLoss
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CY2021Q3 us-gaap Net Income Loss
NetIncomeLoss
187969 usd
CY2022Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.06
CY2021Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.02
CY2022Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.06
CY2021Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.02
CY2022Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
11257539 shares
CY2021Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
11254205 shares
CY2022Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
11257539 shares
CY2021Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
11254205 shares
CY2022Q3 us-gaap Net Income Loss
NetIncomeLoss
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CY2021Q3 us-gaap Net Income Loss
NetIncomeLoss
187969 usd
CY2022Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
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CY2021Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
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CY2022Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Noncontrolling Interest
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToNoncontrollingInterest
-1233469 usd
CY2021Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Noncontrolling Interest
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToNoncontrollingInterest
-1138991 usd
CY2022Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
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CY2021Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
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CY2022Q3 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
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CY2021Q3 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
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CY2022Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
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CY2022Q3 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
39750 usd
CY2022Q3 us-gaap Adjustments To Additional Paid In Capital Share Based Compensation Stock Options Requisite Service Period Recognition
AdjustmentsToAdditionalPaidInCapitalShareBasedCompensationStockOptionsRequisiteServicePeriodRecognition
42084 usd
CY2022Q3 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-4151519 usd
CY2022Q3 us-gaap Profit Loss
ProfitLoss
-437971 usd
CY2022Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
46346567 usd
CY2021Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
61865602 usd
CY2021Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
61865602 usd
CY2021Q3 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
12009 usd
CY2021Q3 us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
100106 usd
CY2021Q3 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
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CY2021Q3 us-gaap Profit Loss
ProfitLoss
550495 usd
CY2021Q3 us-gaap Profit Loss
ProfitLoss
550495 usd
CY2021Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
59043604 usd
CY2021Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
59043604 usd
CY2022Q3 us-gaap Profit Loss
ProfitLoss
-437971 usd
CY2021Q3 us-gaap Profit Loss
ProfitLoss
550495 usd
CY2022Q3 us-gaap Depreciation Amortization And Accretion Net
DepreciationAmortizationAndAccretionNet
845003 usd
CY2021Q3 us-gaap Depreciation Amortization And Accretion Net
DepreciationAmortizationAndAccretionNet
980006 usd
CY2022Q3 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
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CY2021Q3 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
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CY2021Q3 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
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CY2022Q3 us-gaap Gain Loss On Sale Of Other Assets
GainLossOnSaleOfOtherAssets
23296 usd
CY2021Q3 us-gaap Gain Loss On Sale Of Other Assets
GainLossOnSaleOfOtherAssets
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CY2022Q3 us-gaap Share Based Compensation
ShareBasedCompensation
81834 usd
CY2021Q3 us-gaap Share Based Compensation
ShareBasedCompensation
3003 usd
CY2022Q3 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
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CY2021Q3 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
2034434 usd
CY2022Q3 NTWK Increase Decrease Revenues In Excess Of Billing
IncreaseDecreaseRevenuesInExcessOfBilling
337996 usd
CY2021Q3 NTWK Increase Decrease Revenues In Excess Of Billing
IncreaseDecreaseRevenuesInExcessOfBilling
-1952228 usd
CY2022Q3 us-gaap Increase Decrease In Other Current Assets
IncreaseDecreaseInOtherCurrentAssets
340390 usd
CY2021Q3 us-gaap Increase Decrease In Other Current Assets
IncreaseDecreaseInOtherCurrentAssets
35342 usd
CY2022Q3 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
687453 usd
CY2021Q3 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
-43293 usd
CY2022Q3 us-gaap Increase Decrease In Deferred Revenue
IncreaseDecreaseInDeferredRevenue
-619425 usd
CY2021Q3 us-gaap Increase Decrease In Deferred Revenue
IncreaseDecreaseInDeferredRevenue
-1086151 usd
CY2022Q3 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
1298857 usd
CY2021Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
13420761 usd
CY2022Q3 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
1356902 usd
CY2022Q2 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
1389370 usd
CY2022Q3 us-gaap Income Taxes Receivable
IncomeTaxesReceivable
199320 usd
CY2022Q2 us-gaap Income Taxes Receivable
IncomeTaxesReceivable
202783 usd
CY2021Q3 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-3391653 usd
CY2022Q3 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
1347601 usd
CY2021Q3 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
216112 usd
CY2022Q3 us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
453607 usd
CY2021Q3 us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
19705 usd
CY2022Q3 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-893994 usd
CY2021Q3 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-196407 usd
CY2021Q3 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
100106 usd
CY2022Q3 us-gaap Repayments Of Long Term Debt And Capital Securities
RepaymentsOfLongTermDebtAndCapitalSecurities
445737 usd
CY2021Q3 us-gaap Repayments Of Long Term Debt And Capital Securities
RepaymentsOfLongTermDebtAndCapitalSecurities
363464 usd
CY2022Q3 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-445737 usd
CY2021Q3 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-463570 usd
CY2022Q3 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
-2999975 usd
CY2021Q3 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
-2653648 usd
CY2022Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-3040849 usd
CY2021Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-6705278 usd
CY2022Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
23963797 usd
CY2021Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
33705154 usd
CY2022Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
20922948 usd
CY2021Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
26999876 usd
CY2022Q3 us-gaap Interest Paid Net
InterestPaidNet
94942 usd
CY2021Q3 us-gaap Interest Paid Net
InterestPaidNet
191835 usd
CY2022Q3 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
172064 usd
CY2021Q3 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
155098 usd
CY2022Q3 us-gaap Use Of Estimates
UseOfEstimates
<p id="xdx_844_eus-gaap--UseOfEstimates_zK8P2iPfnk2a" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_864_z27fhWt7ju9g">Use of Estimates</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 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: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The areas requiring significant estimates are provision for doubtful accounts, provision for taxation, useful life of depreciable assets, useful life of intangible assets, contingencies, assumptions used to determine the net present value of operating lease liabilities, and estimated contract costs. The estimates and underlying assumptions are reviewed on an ongoing basis. Actual results could differ from those estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><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 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NETSOL TECHNOLOGIES, INC.</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Condensed Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>September 30, 2022</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(Unaudited)</b></span></p> <p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2022Q3 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p id="xdx_84A_eus-gaap--ConcentrationRiskCreditRisk_zUou8jGLFVZg" style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_86A_zRjpFpa1w05g">Concentration of Credit Risk</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 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: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash includes cash on hand and demand deposits in accounts maintained within the United States as well as in foreign countries. Certain financial instruments, which subject the Company to concentration of credit risk, consist of cash and restricted cash. The Company maintains balances at financial institutions which, from time to time, may exceed Federal Deposit Insurance Corporation insured limits for the banks located in the United States. Balances at financial institutions within certain foreign countries are not covered by insurance except balances maintained in China are insured for RMB <span id="xdx_900_eus-gaap--CashFDICInsuredAmount_iI_pp0p0_uRMB_c20220930__srt--StatementGeographicalAxis__country--CN_zhUEfmJTEIGi" title="Cash, FDIC insured amount">500,000</span> ($<span id="xdx_90C_eus-gaap--CashFDICInsuredAmount_iI_pp0p0_c20220930__srt--StatementGeographicalAxis__country--CN_zc60OX4Yz1De" title="Cash, FDIC insured amount">70,323</span>) in each bank and in the UK for GBP <span id="xdx_90B_eus-gaap--CashFDICInsuredAmount_iI_pp0p0_uGBP_c20220930__srt--StatementGeographicalAxis__country--GB_zkw3NNx2Y0Yj" title="Cash, FDIC insured amount">85,000</span> ($<span id="xdx_906_eus-gaap--CashFDICInsuredAmount_iI_pp0p0_c20220930__srt--StatementGeographicalAxis__country--GB_z6WSHhcHk8v8" title="Cash, FDIC insured amount">94,444</span>) in each bank. The Company maintains three bank accounts in China and nine bank accounts in the UK. As of September 30, 2022, and June 30, 2022, the Company had uninsured deposits related to cash deposits in accounts maintained within foreign entities of approximately $<span id="xdx_902_eus-gaap--CashUninsuredAmount_iI_pp0p0_c20220930_zAW9S2Jfzmrg" title="Uninsured deposits related to cash deposits">18,393,548</span> and $<span id="xdx_908_eus-gaap--CashUninsuredAmount_iI_pp0p0_c20220630_zrpjYSb7J3p2" title="Uninsured deposits related to cash deposits">22,758,963</span>, respectively. The Company has not experienced any losses in such accounts.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 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: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s operations are carried out globally. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments of each country and by the general state of the country’s economy. The Company’s operations in each foreign country are subject to specific considerations and significant risks not typically associated with companies in economically developed nations. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p>
CY2022Q3 us-gaap Cash Uninsured Amount
CashUninsuredAmount
18393548 usd
CY2022Q2 us-gaap Cash Uninsured Amount
CashUninsuredAmount
22758963 usd
CY2022Q3 us-gaap Contract With Customer Asset Net Noncurrent
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CY2022Q3 us-gaap Assets Fair Value Disclosure
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CY2022Q2 us-gaap Contract With Customer Asset Net Noncurrent
ContractWithCustomerAssetNetNoncurrent
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CY2022Q2 us-gaap Assets Fair Value Disclosure
AssetsFairValueDisclosure
853601 usd
CY2022Q2 NTWK Contract With Customer Asset
ContractWithCustomerAsset
853601 usd
CY2022Q3 us-gaap Capitalized Contract Cost Amortization
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9369 usd
CY2022Q3 NTWK Contract With Customer Asset Transfers To Short Term
ContractWithCustomerAssetTransfersToShortTerm
-93245 usd
CY2022Q3 NTWK Contract With Customer Liability Effect Of Translation Adjustment
ContractWithCustomerLiabilityEffectOfTranslationAdjustment
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CY2022Q3 NTWK Contract With Customer Asset
ContractWithCustomerAsset
714458 usd
CY2022Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
12706119 usd
CY2022Q3 us-gaap Contract With Customer Asset Net
ContractWithCustomerAssetNet
14061982 usd
CY2022Q2 us-gaap Contract With Customer Asset Net
ContractWithCustomerAssetNet
15425377 usd
CY2022Q3 us-gaap Deferred Revenue
DeferredRevenue
3982198 usd
CY2022Q2 us-gaap Deferred Revenue
DeferredRevenue
4901562 usd
CY2022Q3 us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
2108715 usd
CY2022Q3 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
38252000 usd
CY2022Q3 NTWK Revenue Remaining Performance Obligation Next Twelve Months
RevenueRemainingPerformanceObligationNextTwelveMonths
15400000 usd
CY2022Q3 NTWK Revenue Remaining Performance Obligations Expected Timing Of Satisfaction Period
RevenueRemainingPerformanceObligationsExpectedTimingOfSatisfactionPeriod
P5Y
CY2022Q3 us-gaap Accumulated Other Comprehensive Income Loss Net Of Tax
AccumulatedOtherComprehensiveIncomeLossNetOfTax
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CY2022Q2 us-gaap Accumulated Other Comprehensive Income Loss Net Of Tax
AccumulatedOtherComprehensiveIncomeLossNetOfTax
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CY2022Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
-2918050 usd
CY2021Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
-2145405 usd
CY2022Q3 us-gaap Due From Employees Current
DueFromEmployeesCurrent
90550 usd
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DueFromEmployeesCurrent
87627 usd
CY2022Q3 us-gaap Security Deposit
SecurityDeposit
331301 usd
CY2022Q2 us-gaap Security Deposit
SecurityDeposit
236909 usd
CY2022Q3 us-gaap Other Receivables Net Current
OtherReceivablesNetCurrent
61614 usd
CY2017Q2 us-gaap Debt Instrument Interest Rate Stated Percentage
DebtInstrumentInterestRateStatedPercentage
0.05 pure
CY2017Q2 us-gaap Debt Instrument Maturity Date
DebtInstrumentMaturityDate
2018-03-02
CY2017Q2 us-gaap Convertible Debt
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750000 usd
CY2017Q2 us-gaap Interest Payable Current And Noncurrent
InterestPayableCurrentAndNoncurrent
110202 usd
CY2018Q1 us-gaap Debt Instrument Interest Rate Stated Percentage
DebtInstrumentInterestRateStatedPercentage
0.10 pure
CY2018Q1 us-gaap Debt Instrument Maturity Date
DebtInstrumentMaturityDate
2019-03-31
CY2018Q1 us-gaap Convertible Debt
ConvertibleDebt
2500000 usd
CY2018Q1 us-gaap Interest Payable Current And Noncurrent
InterestPayableCurrentAndNoncurrent
500773 usd
CY2019Q2 us-gaap Debt Instrument Interest Rate Stated Percentage
DebtInstrumentInterestRateStatedPercentage
0.10 pure
CY2019Q2 us-gaap Debt Instrument Maturity Date
DebtInstrumentMaturityDate
2020-03-31
CY2019Q2 us-gaap Convertible Debt
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600000 usd
CY2019Q2 us-gaap Interest Payable Current And Noncurrent
InterestPayableCurrentAndNoncurrent
57648 usd
CY2019Q3 us-gaap Debt Instrument Interest Rate Stated Percentage
DebtInstrumentInterestRateStatedPercentage
0.10 pure
CY2019Q3 us-gaap Debt Instrument Maturity Date
DebtInstrumentMaturityDate
2020-03-31
CY2019Q3 us-gaap Convertible Debt
ConvertibleDebt
400000 usd
CY2019Q3 us-gaap Interest Payable Current And Noncurrent
InterestPayableCurrentAndNoncurrent
32439 usd
CY2022Q3 us-gaap Convertible Debt
ConvertibleDebt
4250000 usd
CY2022Q3 us-gaap Interest Payable Current And Noncurrent
InterestPayableCurrentAndNoncurrent
701062 usd
CY2022Q3 us-gaap Allowance For Doubtful Other Receivables Current
AllowanceForDoubtfulOtherReceivablesCurrent
4250000 usd
CY2022Q3 us-gaap Accounts Payable Interest Bearing Current And Noncurrent
AccountsPayableInterestBearingCurrentAndNoncurrent
701062 usd
CY2022Q3 us-gaap Interest Payable Current And Noncurrent
InterestPayableCurrentAndNoncurrent
701062 usd
CY2022Q2 us-gaap Interest Payable Current And Noncurrent
InterestPayableCurrentAndNoncurrent
701062 usd
CY2022Q2 us-gaap Other Receivables Net Current
OtherReceivablesNetCurrent
21581 usd
CY2022Q3 NTWK Other Current Assets
OtherCurrentAssets
440728 usd
CY2022Q2 NTWK Other Current Assets
OtherCurrentAssets
285091 usd
CY2022Q3 us-gaap Due From Related Parties Current
DueFromRelatedPartiesCurrent
1243633 usd
CY2022Q2 us-gaap Due From Related Parties Current
DueFromRelatedPartiesCurrent
1243633 usd
CY2022Q3 NTWK Other Current Asset Total Current
OtherCurrentAssetTotalCurrent
3724048 usd
CY2022Q2 NTWK Other Current Asset Total Current
OtherCurrentAssetTotalCurrent
3466994 usd
CY2022Q3 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
1243633 usd
CY2022Q2 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
1243633 usd
CY2022Q3 us-gaap Other Assets Current
OtherAssetsCurrent
2480415 usd
CY2022Q2 us-gaap Other Assets Current
OtherAssetsCurrent
2223361 usd
CY2022Q3 NTWK Costs In Excess Of Billings On Uncompleted Contracts Or Programs Expected To Be Collected After One Year Gross
CostsInExcessOfBillingsOnUncompletedContractsOrProgramsExpectedToBeCollectedAfterOneYearGross
733114 usd
CY2022Q2 NTWK Costs In Excess Of Billings On Uncompleted Contracts Or Programs Expected To Be Collected After One Year Gross
CostsInExcessOfBillingsOnUncompletedContractsOrProgramsExpectedToBeCollectedAfterOneYearGross
881940 usd
CY2022Q3 NTWK Fair Value Adjustment Of Revenue In Excess Of Billings Long Term To Subsequent Period
FairValueAdjustmentOfRevenueInExcessOfBillingsLongTermToSubsequentPeriod
18656 usd
CY2022Q2 NTWK Fair Value Adjustment Of Revenue In Excess Of Billings Long Term To Subsequent Period
FairValueAdjustmentOfRevenueInExcessOfBillingsLongTermToSubsequentPeriod
28339 usd
CY2022Q3 us-gaap Contract With Customer Asset Net Noncurrent
ContractWithCustomerAssetNetNoncurrent
714458 usd
CY2022Q2 us-gaap Contract With Customer Asset Net Noncurrent
ContractWithCustomerAssetNetNoncurrent
853601 usd
CY2022Q3 us-gaap Interest Income Operating
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0.039 pure
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OperatingLeasePayments
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CY2022Q3 NTWK Operating Cash Flows Related From Finance Leases
OperatingCashFlowsRelatedFromFinanceLeases
1807 usd
CY2021Q3 NTWK Operating Cash Flows Related From Finance Leases
OperatingCashFlowsRelatedFromFinanceLeases
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CY2022Q3 us-gaap Finance Lease Interest Payment On Liability
FinanceLeaseInterestPaymentOnLiability
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FinanceLeaseInterestPaymentOnLiability
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LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
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LesseeOperatingLeaseLiabilityPaymentsDueYearThree
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LesseeOperatingLeaseLiabilityPaymentsDueYearFour
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LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive
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LesseeOperatingLeaseLiabilityPaymentsDue
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CY2022Q3 us-gaap Operating Lease Liability
OperatingLeaseLiability
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OperatingLeaseLiabilityCurrent
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EquityMethodInvestmentsGross
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EquityMethodInvestments
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EquityMethodInvestments
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FiniteLivedIntangibleAssetsGross
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FiniteLivedIntangibleAssetsGross
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CY2022Q3 NTWK Finite Lived Intangible Assets Effect Of Translation Adjustment
FiniteLivedIntangibleAssetsEffectOfTranslationAdjustment
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FiniteLivedIntangibleAssetsEffectOfTranslationAdjustment
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FiniteLivedIntangibleAssetsAccumulatedAmortization
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FiniteLivedIntangibleAssetsNet
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AccruedPayrollCurrent
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AccountsPayableAndOtherAccruedLiabilitiesCurrent
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LoansPayableCurrent
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CY2022Q3 us-gaap Long Term Loans Payable
LongTermLoansPayable
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CY2022Q3 NTWK Subsidiary Finance Leases
SubsidiaryFinanceLeases
54998 usd
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SubsidiaryFinanceLeasesCurrent
32718 usd
CY2022Q3 NTWK Subsidiary Finance Leases Non Current
SubsidiaryFinanceLeasesNonCurrent
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CY2022Q3 NTWK Notes Payable And Capital Lease
NotesPayableAndCapitalLease
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LongTermDebtAndCapitalLeaseObligations
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CY2022Q2 us-gaap Loans Payable
LoansPayable
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CY2022Q2 us-gaap Long Term Loans Payable
LongTermLoansPayable
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CY2022Q2 NTWK Subsidiary Finance Leases
SubsidiaryFinanceLeases
68571 usd
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SubsidiaryFinanceLeasesCurrent
35095 usd
CY2022Q2 NTWK Subsidiary Finance Leases Non Current
SubsidiaryFinanceLeasesNonCurrent
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CY2022Q2 NTWK Notes Payable And Capital Lease
NotesPayableAndCapitalLease
9043368 usd
CY2022Q2 us-gaap Long Term Debt And Capital Lease Obligations Current
LongTermDebtAndCapitalLeaseObligationsCurrent
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CY2022Q2 us-gaap Long Term Debt And Capital Lease Obligations
LongTermDebtAndCapitalLeaseObligations
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CY2022Q3 us-gaap Finance Lease Liability Payments Due Next Twelve Months
FinanceLeaseLiabilityPaymentsDueNextTwelveMonths
37312 usd
CY2022Q3 us-gaap Finance Lease Liability Payments Due Year Two
FinanceLeaseLiabilityPaymentsDueYearTwo
22390 usd
CY2022Q3 us-gaap Finance Lease Liability Payments Due Year Three
FinanceLeaseLiabilityPaymentsDueYearThree
1058 usd
CY2022Q3 us-gaap Finance Lease Liability Payments Due
FinanceLeaseLiabilityPaymentsDue
60760 usd
CY2022Q3 us-gaap Finance Lease Liability Undiscounted Excess Amount
FinanceLeaseLiabilityUndiscountedExcessAmount
5762 usd
CY2022Q3 us-gaap Finance Lease Liability
FinanceLeaseLiability
54998 usd
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FinanceLeaseLiabilityCurrent
32718 usd
CY2022Q3 us-gaap Finance Lease Liability Noncurrent
FinanceLeaseLiabilityNoncurrent
22280 usd
CY2022Q3 us-gaap Long Term Debt Maturities Repayments Of Principal In Next Twelve Months
LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths
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CY2022Q3 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Two
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo
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CY2022Q3 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Three
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree
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CY2022Q3 us-gaap Long Term Debt
LongTermDebt
621939 usd
CY2022Q3 us-gaap Long Term Debt Current
LongTermDebtCurrent
351763 usd
CY2022Q3 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
270176 usd
CY2021Q3 us-gaap Profit Loss
ProfitLoss
550495 usd
CY2022Q3 us-gaap Depreciation Amortization And Accretion Net
DepreciationAmortizationAndAccretionNet
845003 usd
CY2022Q3 us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<p id="xdx_804_eus-gaap--LossContingencyDisclosures_zi0coihWkTHd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 17 – <span id="xdx_820_zLJqb6an0S3a">CONTINGENCIES</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><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 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">From time to time, the Company is subject to legal proceedings, claims, and litigation arising in the ordinary course of business including tax assessments. The Company defends itself vigorously against any such claims. When (i) it is probable that an asset has been impaired or a liability has been incurred and (ii) the amount of the loss can be reasonably estimated, the Company records the estimated loss. The Company provides disclosure in the notes to the consolidated financial statements for loss contingencies that do not meet both conditions if there is a reasonable possibility that a loss may have been incurred that would be material to the financial statements. Significant judgment is required to determine the probability that a liability has been incurred and whether such liability is reasonably estimable. The Company bases accruals on the best information available at the time, which can be highly subjective. The final outcome of these matters could vary significantly from the amounts included in the accompanying consolidated financial statements.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2022Q3 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
3 segments
CY2022Q3 us-gaap Assets
Assets
66445632 usd
CY2022Q2 us-gaap Assets
Assets
72608632 usd
CY2022Q3 us-gaap Equity Method Investments
EquityMethodInvestments
1059368 usd
CY2022Q2 us-gaap Equity Method Investments
EquityMethodInvestments
1059368 usd
CY2022Q3 us-gaap Profit Loss
ProfitLoss
-437971 usd
CY2021Q3 us-gaap Depreciation Amortization And Accretion Net
DepreciationAmortizationAndAccretionNet
980006 usd
CY2022Q3 us-gaap Interest Expense
InterestExpense
121610 usd
CY2021Q3 us-gaap Interest Expense
InterestExpense
101013 usd
CY2022Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
193348 usd
CY2021Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
167627 usd
CY2022Q3 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
1347601 usd
CY2021Q3 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
216112 usd
CY2022Q3 us-gaap Minority Interest
MinorityInterest
4279113 usd
CY2022Q2 us-gaap Minority Interest
MinorityInterest
5450389 usd
CY2022Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
193348 usd
CY2021Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
167627 usd

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