2024 Q2 Form 10-K Financial Statement

#000121465924007929 Filed on May 01, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2023 Q4 2023
Revenue $206.7K $68.90K $446.0K
YoY Change 120.96% -17.94% 318.81%
Cost Of Revenue $208.3K $73.40K $436.7K
YoY Change 162.6% 11.79% 426.75%
Gross Profit -$1.631K -$4.500K $9.351K
YoY Change -111.48% -124.59% -60.38%
Gross Profit Margin -0.79% -6.53% 2.1%
Selling, General & Admin $115.8K $104.7K $772.9K
YoY Change -45.32% -55.39% 17.84%
% of Gross Profit 8265.85%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $86.77K $80.04K $1.372K
YoY Change -14.47% 16.25% -98.27%
% of Gross Profit 14.67%
Operating Expenses $202.3K $184.4K $1.156M
YoY Change -73.47% -21.44% 76.23%
Operating Profit -$203.9K -$188.9K -$1.147M
YoY Change -72.74% -12.73% 81.32%
Interest Expense $66.74K -$82.41K $206.9K
YoY Change 30.85% 13.31% -169.83%
% of Operating Profit
Other Income/Expense, Net $3.00 $230.00 -$445.7K
YoY Change -99.98% -55.77% -13645.59%
Pretax Income -$278.5K -$282.5K -$1.906M
YoY Change -65.77% -2.15% 106.03%
Income Tax
% Of Pretax Income
Net Earnings -$278.5K -$282.5K -$1.906M
YoY Change -65.77% -2.15% 106.03%
Net Earnings / Revenue -134.76% -410.0% -427.42%
Basic Earnings Per Share -$0.01 -$0.09
Diluted Earnings Per Share -$0.01 -$0.02 -$0.09
COMMON SHARES
Basic Shares Outstanding 25.09M shares 22.49M shares 22.35M shares
Diluted Shares Outstanding 22.97M shares 22.35M shares

Balance Sheet

Concept 2024 Q2 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $11.00K $5.330K $5.330K
YoY Change 319.85% -73.81% -73.81%
Cash & Equivalents $11.00K $5.334K
Short-Term Investments
Other Short-Term Assets $707.00 $2.006K $4.110K
YoY Change -93.75% -75.17% -49.13%
Inventory
Prepaid Expenses $8.00 $2.101K
Receivables $7.010K $176.7K $176.7K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $18.72K $186.1K $186.1K
YoY Change -86.58% 80.31% 80.3%
LONG-TERM ASSETS
Property, Plant & Equipment $472.00 $1.055K $39.51K
YoY Change -72.89% -56.53% -47.2%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $538.4K $649.3K $649.3K
YoY Change -39.86% 70.5% 70.5%
TOTAL ASSETS
Total Short-Term Assets $18.72K $186.1K $186.1K
Total Long-Term Assets $538.4K $649.3K $649.3K
Total Assets $557.1K $835.4K $835.4K
YoY Change -46.16% 72.59% 72.59%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $108.1K $279.9K $279.9K
YoY Change -43.62% 265.42% 265.42%
Accrued Expenses $3.563M $3.232M $3.232M
YoY Change 16.42% 22.89% 22.89%
Deferred Revenue
YoY Change
Short-Term Debt $1.491M $1.444M
YoY Change 17.69% 23.89%
Long-Term Debt Due $645.0K
YoY Change
Total Short-Term Liabilities $5.917M $5.058M $5.058M
YoY Change 28.07% 27.32% 27.32%
LONG-TERM LIABILITIES
Long-Term Debt $2.500M $2.892M $2.892M
YoY Change -12.42% 2.65% 2.65%
Other Long-Term Liabilities $3.480K $0.00 $0.00
YoY Change -65.06% -100.0% -100.0%
Total Long-Term Liabilities $2.503M $2.892M $2.892M
YoY Change -12.6% 1.5% 1.5%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.917M $5.058M $5.058M
Total Long-Term Liabilities $2.503M $2.892M $2.892M
Total Liabilities $8.420M $7.950M $7.950M
YoY Change 12.5% 16.53% 16.53%
SHAREHOLDERS EQUITY
Retained Earnings -$141.7M -$141.3M
YoY Change 0.78% 1.37%
Common Stock $132.2M $132.5M
YoY Change -0.24% 0.87%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$7.863M -$7.114M -$7.114M
YoY Change
Total Liabilities & Shareholders Equity $557.1K $835.4K $835.4K
YoY Change -46.16% 72.59% 72.59%

Cashflow Statement

Concept 2024 Q2 2023 Q4 2023
OPERATING ACTIVITIES
Net Income -$278.5K -$282.5K -$1.906M
YoY Change -65.77% -2.15% 106.03%
Depreciation, Depletion And Amortization $86.77K $80.04K $1.372K
YoY Change -14.47% 16.25% -98.27%
Cash From Operating Activities -$30.02K -$126.9K -$298.8K
YoY Change -56.13% 1023.65% 50.58%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00
YoY Change -100.0%
Acquisitions
YoY Change
Other Investing Activities $0.00
YoY Change
Cash From Investing Activities $0.00 $0.00
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 22.75K 136.5K $278.4K
YoY Change -11.72% 391.89% 41.21%
NET CHANGE
Cash From Operating Activities -30.02K -126.9K -$298.8K
Cash From Investing Activities 0.000 0.000
Cash From Financing Activities 22.75K 136.5K $278.4K
Net Change In Cash -7.270K 9.640K -$15.02K
YoY Change -82.96% -41.43% 1032.5%
FREE CASH FLOW
Cash From Operating Activities -$30.02K -$126.9K -$298.8K
Capital Expenditures $0.00 $0.00
Free Cash Flow -$126.9K -$298.8K
YoY Change 1023.65% 49.77%

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CY2022 us-gaap Depreciation Depletion And Amortization
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CY2022 us-gaap Operating Lease Right Of Use Asset Amortization Expense
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CY2023 us-gaap Amortization Of Intangible Assets
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CY2022 us-gaap Amortization Of Intangible Assets
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CY2023 us-gaap Amortization Of Debt Discount Premium
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CY2022 us-gaap Amortization Of Debt Discount Premium
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CY2023 us-gaap Interest Expense Debt Excluding Amortization
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CY2022 us-gaap Interest Expense Debt Excluding Amortization
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CY2023 nwcn Loss On Written Off Of Intangible Assets
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CY2023 nwcn Stock Issued For Services
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CY2022 nwcn Stock Issued For Services
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CY2023 us-gaap Increase Decrease In Accounts Receivable
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CY2022 us-gaap Increase Decrease In Accounts Receivable
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CY2023 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2022 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2023 us-gaap Increase Decrease In Operating Lease Liability
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CY2022 us-gaap Increase Decrease In Operating Lease Liability
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CY2023 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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CY2022 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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CY2023 us-gaap Net Cash Provided By Used In Operating Activities
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CY2022 us-gaap Net Cash Provided By Used In Operating Activities
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CY2022 us-gaap Payments To Acquire Oil And Gas Property And Equipment
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CY2022 us-gaap Net Cash Provided By Used In Investing Activities
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CY2023 nwcn Proceeds From Shortterm Loans Related Party
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CY2022 nwcn Proceeds From Shortterm Loans Related Party
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CY2023 us-gaap Repayments Of Short Term Debt
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CY2023 us-gaap Net Cash Provided By Used In Financing Activities
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CY2022 us-gaap Net Cash Provided By Used In Financing Activities
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CY2023 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2022 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2023 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2022 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2023Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2022 nwcn Settlement Of Shortterm Loans By Conversion To Convertible Note
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CY2022 nwcn Settlement Of Shortterm Loans Interest Payable By Conversion To Convertible Note
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495000 usd
CY2023 nwcn Stockbased Compensation For Stock Granted For Intangible Asset
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1136258 usd
CY2022 nwcn Stockbased Compensation For Stock Granted For Intangible Asset
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333785 usd
CY2023 nwcn Stockbased Compensation For Services
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44650 usd
CY2022 nwcn Stockbased Compensation For Services
StockbasedCompensationForServices
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CY2023 us-gaap Nature Of Operations
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<p id="xdx_80E_eus-gaap--NatureOfOperations_zKlnJg8T4QLc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0"></td><td style="width: 49.45pt"><b>NOTE 1</b></td><td><b><span id="xdx_820_z3Or74Adkwfe">ORGANIZATION AND PRINCIPAL ACTIVITIES</span></b></td></tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Network CN Inc. was originally incorporated on September 10, 1993 in Delaware with headquarters in the Hong Kong Special Administrative Region of the People’s Republic of China (“PRC” or “China”).  Since August 2006, Network CN Inc., has been principally engaged in the provision of out-of-home advertising in China through the operation of a network of roadside light emitting diode digital video panels, mega-size LED digital video billboards and light boxes in major cities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Details of the Company’s principal subsidiaries as of December 31, 2023 are described in Note 3 – Subsidiaries. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b>Recent development</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Going Concern</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has net cash used in operating activities of $<span id="xdx_908_eus-gaap--NetCashProvidedByUsedInOperatingActivities_iN_pp0p0_di_c20230101__20231231_zZ1AiRuYFbYe" title="Net cash used in operating activities">298,765</span> and $<span id="xdx_904_eus-gaap--NetCashProvidedByUsedInOperatingActivities_iN_pp0p0_di_c20220101__20221231_z4a0drPVX5y6" title="Net cash used in operating activities">198,403</span> for the years ended December 31, 2023 and 2022 respectively. As of December 31, 2023 and 2022, the Company has stockholders’ deficit of $<span id="xdx_90F_eus-gaap--StockholdersEquity_iNI_pp0p0_di_c20231231_z5zBDU3YUTdc" title="Stockholders' deficits">7,114,191</span> and $<span id="xdx_909_eus-gaap--StockholdersEquity_iNI_pp0p0_di_c20221231_zNSZw7qRuBm9" title="Stockholders' deficits">6,337,754</span>, respectively. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s plans regarding those concerns are addressed in the following paragraph. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In response to current financial conditions, the Company has actively explored new prominent media projects in order to provide a wider range of media and advertising services and improve our financial performance. If the project can start to operate, the Company expects that the project will improve the Company’s future financial performance. The Company expects that the new project can generate positive cashflow.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The existing cash and cash equivalents together with highly liquid current assets are insufficient to fund the Company’s operations for the next twelve months. The Company will need to rely upon some combination of cash generated from the Company’s operations, or proceeds from the issuance of the Company’s equity and debt securities as well as the exercise of the conversion option by the Company’s note holders to convert the notes to the Company’s common stock, in order to maintain the Company’s operations. Based on the Company’s best estimates, the Company believes that there are sufficient financial resources to meet the cash requirements for the coming twelve months and the consolidated financial statements have been prepared on a going concern basis. However, there can be no assurance the Company will be able to continue as a going concern. These uncertainties may result in adverse effects on continuation of the Company as a going concern. The accompany consolidated financial statements do not reflect any adjustments that might result from the outcome of these uncertainties.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b>Termination of commercial agreements</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In May 2023, the Board of Directors agreed and approved the termination of all commercial agreements with Beijing Huizhong Bona Media Advertising Co., Ltd (“Bona”) and Xingpin Shanghai Advertising Limited (“Xingpin”). The Company delivered termination notice to terminate all the commercial agreements with Bona and Xingpin and the Company will no longer able to exert control over Bona and Xingpin when the termination notices become effective.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b>Our Business in Chengdu and Tianjin</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Company actively developing its advertising network and explored new media project in Chengdu and Tianjin, China. The Company has established two newly subsidiaries, NCN (Chengdu) Culture Media Co., Ltd, (“NCN Chengdu”) and NCN (Tianjin) Culture Co., Ltd (“NCN Tianjin”), a wholly foreign-owned enterprise in Chengdu and Tianjin, China. The Company owns 100% of the established subsidiary companies. In January 2023, NCN Chengdu and Tianjin started its operation and acquired rights to operate advertising panels in Chengdu and Tianjin. On April 25, 2023, the Company agreed to issue <span id="xdx_903_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20230401__20230425__srt--TitleOfIndividualAxis__custom--QiHaoMember_pdd" title="Agreed to issued shsares">933,964</span> and <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20230401__20230425__srt--TitleOfIndividualAxis__custom--YangWuQiangMember_pdd" title="Agreed to issued shsares">1,131,960</span> restricted shares of the Company’s common stock to the employee, Qi Hao and Yang Wu Qiang, respectively. On January 1, 2023, NCN Chengdu and Tianjin entered into an employment contract with Qi Hao and Yang Wu Qiang (“the employees”) under which the employees agreed to bring in the advertising rights in Chengdu and Tianjin to the Company and the Company will reward him for <span id="xdx_900_ecustom--RewardOfShares_c20230102__srt--TitleOfIndividualAxis__custom--ChengduMember_pdd" title="Reward of shares">933,964</span> and <span id="xdx_900_ecustom--RewardOfShares_c20230102__srt--TitleOfIndividualAxis__custom--TianjinMember_pdd" title="Reward of shares">1,131,960</span> shares of the Company’s common stock. On May 16, 2023, Mr. Qi Hao resigned and the Company early terminated the advertising rights fee contracts in Tianjin and <span id="xdx_901_ecustom--NumberOfSharesCancelled_c20230501__20230516__us-gaap--BusinessAcquisitionAxis__custom--TianjinMember_pdd" title="Number of shares cancelled">933,964</span> shares issued were cancelled.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Our Business in Ningbo</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company explored new media project in Ningbo, China and decided to restart its business and expects that will improve the Company’s future financial performance. In April 2022, the Company has established a newly subsidiary, NCN (Ningbo) Culture Media Co., Ltd (“NCN Ningbo”), a wholly foreign-owned enterprise in Ningbo, China. The Company owns 100% of the established subsidiary company, NCN Ningbo. In August 2022, NCN Ningbo started its operation and acquired rights to operate advertising panels in Ningbo, China and sell advertising airtime to our customers directly. <span style="background-color: white">On February 1, 2023, the Company agreed to issue 606,881 restricted shares of the Company’s common stock to the employee, Chen Zhu. On October 1, 2022, NCN Ningbo entered into an employment contract with Chen Zhu (“the employee”) under which the employee agreed to bring in the advertising rights in Ningbo to the Company and the <span id="xdx_904_ecustom--CommonStockDescription_c20230101__20231231" title="Common stock description">Company will reward him for 606,881 shares of the Company’s common stock. Pursuant to the terms of employment contract, if the employee can achieve the annual sales and profit before tax goal in 2023 and 2024, the Company will issue bonus shares of 303,441 and 303,441 restricted shares of the Company’s common stock to the employee, respectively.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b>Issuance of Convertible Promissory Note</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On January 18, 2022, the Company entered into a Subscription Agreement under which the Subscriber agreed to purchase the 1% Senior Unsecured Convertible Note Agreement from the Company for an agreement purchase price of two million five hundred thousand US Dollars ($<span id="xdx_900_ecustom--AgreementPurchasePrice_c20220118__us-gaap--TypeOfArrangementAxis__custom--SubscriptionAgreementMember_pp0p0" title="Agreement purchase price">2,500,000</span>). On the same date, the Company signed the with 1% Senior Unsecured Convertible Note Agreement under which the Company may sell and issue to the Subscriber up to an aggregate maximum amount of $<span id="xdx_90E_eus-gaap--DebtInstrumentFaceAmount_c20220118__us-gaap--TypeOfArrangementAxis__custom--SubscriptionAgreementMember_pp0p0" title="Principal amount">2,500,000</span> in principal amount of Convertible Notes prior to January 19, 2027. The Convertible Promissory Notes issued to the Investor are convertible at the holder’s option into shares of Company common stock at $<span id="xdx_90E_eus-gaap--SharesIssuedPricePerShare_c20220118__us-gaap--TypeOfArrangementAxis__custom--SubscriptionAgreementMember_pdd" title="Shares issued price per share">1.25</span> per share.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><b>Authorized capital</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On April 28, 2020, the Board of Directors and Majority of stockholders of the Company approved to increase the total number of authorized shares of Common Stock from <span id="xdx_903_eus-gaap--CommonStockSharesAuthorized_iI_c20200428_zKOn3k03qlC6" title="Common stock, shares authorized">26,666,667</span> to 100,000,000,000. On October 11, 2021, we filed a Certificate of Amendment to our Certificate of Incorporation with the Delaware Secretary of State to increase our authorized shares of common stock from 26,666,667 to 100,000,000,000 and the increase had approved by Delaware secretary of state on April 5, 2022. On March 22, 2023, the Board of Directors and Majority of stockholders of the Company approved to decrease the total number of authorized shares of Common Stock from 100,000,000,000 to <span id="xdx_907_eus-gaap--CommonStockSharesAuthorized_iI_c20231231_zLJ2QmxuDHqg" title="Common stock, shares authorized">100,000,000</span>.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On December 20, 2023, the Board of Directors and Majority of stockholders of the Company approved to amend the Company's Certificate of Incorporation, as amended, to increase the total number of authorized shares of Preferred Stock from <span id="xdx_902_eus-gaap--PreferredStockSharesAuthorized_iI_c20231220_zlGxd0t678Na">5,000,000 </span>to <span id="xdx_900_eus-gaap--PreferredStockSharesAuthorized_iI_c20231231_zPccTvxxB7r">10,000,000</span>. On February 7, 2024, we filed a Certificate of Amendment to our Certificate of Incorporation with the Delaware Secretary of State to increase the total number of authorized shares of Preferred Stock from 5,000,000 to 10,000,000 and the increase had approved by Delaware secretary of state on February 8, 2024. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
CY2023 us-gaap Net Cash Provided By Used In Operating Activities
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CY2022 us-gaap Net Cash Provided By Used In Operating Activities
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CY2022Q4 us-gaap Stockholders Equity
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CY2023 nwcn Common Stock Description
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Company will reward him for 606,881 shares of the Company’s common stock. Pursuant to the terms of employment contract, if the employee can achieve the annual sales and profit before tax goal in 2023 and 2024, the Company will issue bonus shares of 303,441 and 303,441 restricted shares of the Company’s common stock to the employee, respectively.
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CY2023Q4 us-gaap Preferred Stock Shares Authorized
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<p id="xdx_844_eus-gaap--UseOfEstimates_zVtPhtoRehhg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>(C) <span id="xdx_866_zFKXMZFDxJGf">Use of Estimates</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expense during the reporting period. Estimates are used when accounting for certain items such as accounting for income tax valuation allowances. Estimates are based on historical experience, where applicable, and assumptions that management believes are reasonable under the circumstances. Due to the inherent uncertainty involved with estimates, actual results may differ.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
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<p id="xdx_84A_eus-gaap--PriorPeriodReclassificationAdjustmentDescription_z01JJAIDNNwg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>(S) <span id="xdx_864_z3Q5K9A7Izsk">Reclassifications</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain reclassifications have been made to the prior year financial information to conform to the presentation used in the financial statements for the year ended December 31, 2023.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63pt; text-indent: -63pt"><b></b></p>
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CY2022Q4 us-gaap Accounts Receivable Gross
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CY2022Q4 us-gaap Allowance For Doubtful Accounts Receivable
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CY2022Q4 us-gaap Accounts Receivable Net
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CY2022Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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CY2023Q4 us-gaap Property Plant And Equipment Net
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CY2022Q4 us-gaap Property Plant And Equipment Net
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Depreciation
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CY2022 us-gaap Amortization Of Intangible Assets
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CY2023Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Next Twelve Months
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CY2023Q4 us-gaap Property Subject To Or Available For Operating Lease Accumulated Depreciation
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CY2022Q4 us-gaap Property Subject To Or Available For Operating Lease Accumulated Depreciation
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CY2023Q4 nwcn Operating Lease Right Of Use Assets
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OperatingLeaseRightOfUseAssets
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CY2023 nwcn Depreciation On Rightofuse Net
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CY2022 nwcn Depreciation On Rightofuse Net
DepreciationOnRightofuseNet
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CY2023 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2022 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2023 nwcn Derecognition Of Rightofuse Assets
DerecognitionOfRightofuseAssets
371009 usd
CY2022 nwcn Derecognition Of Rightofuse Assets
DerecognitionOfRightofuseAssets
34348 usd
CY2023Q4 nwcn Accounts Payable
AccountsPayable
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CY2022Q4 nwcn Accounts Payable
AccountsPayable
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CY2023Q4 nwcn Payment In Advance
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CY2023Q4 us-gaap Employee Related Liabilities Current
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2519680 usd
CY2022Q4 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
2153063 usd
CY2023Q4 us-gaap Accrued Professional Fees Current
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128929 usd
CY2022Q4 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
93171 usd
CY2023Q4 us-gaap Accrued Income Taxes Current
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448662 usd
CY2022Q4 us-gaap Accrued Income Taxes Current
AccruedIncomeTaxesCurrent
214094 usd
CY2022Q4 nwcn Franchise Tax Payable
FranchiseTaxPayable
92300 usd
CY2023Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
127783 usd
CY2022Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
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CY2023Q4 us-gaap Accounts Payable Other Current And Noncurrent
AccountsPayableOtherCurrentAndNoncurrent
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CY2022Q4 us-gaap Accounts Payable Other Current And Noncurrent
AccountsPayableOtherCurrentAndNoncurrent
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CY2023Q4 us-gaap Accounts Payable And Accrued Liabilities Current And Noncurrent
AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent
3606902 usd
CY2022Q4 us-gaap Accounts Payable And Accrued Liabilities Current And Noncurrent
AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent
2771345 usd
CY2023Q4 us-gaap Short Term Bank Loans And Notes Payable
ShortTermBankLoansAndNotesPayable
1443785 usd
CY2022Q4 us-gaap Short Term Bank Loans And Notes Payable
ShortTermBankLoansAndNotesPayable
1165372 usd
CY2023 nwcn Interest Expense On Short Term Debt
InterestExpenseOnShortTermDebt
208090 usd
CY2022 nwcn Interest Expense On Short Term Debt
InterestExpenseOnShortTermDebt
193528 usd
CY2022Q4 us-gaap Convertible Notes Payable
ConvertibleNotesPayable
645000 usd
CY2023 us-gaap Proceeds From Issuance Of Debt
ProceedsFromIssuanceOfDebt
2500000 usd
CY2023 nwcn Allocated Intrinsic Value Of Beneficial Conversion Feature
AllocatedIntrinsicValueOfBeneficialConversionFeature
-400000 usd
CY2023 us-gaap Amortization Of Financing Costs And Discounts
AmortizationOfFinancingCostsAndDiscounts
147062 usd
CY2023Q4 us-gaap Convertible Notes Payable
ConvertibleNotesPayable
2892062 usd
CY2023 us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
74577 usd
CY2022 us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
72485 usd
CY2023 us-gaap Interest Expense Debt
InterestExpenseDebt
31450 usd
CY2022 us-gaap Interest Expense Debt
InterestExpenseDebt
30217 usd
CY2023Q4 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
5259 usd
CY2023Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
1736 usd
CY2023Q4 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
6995 usd
CY2023Q4 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
170 usd
CY2023Q4 us-gaap Operating Lease Liability
OperatingLeaseLiability
6825 usd
CY2023Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P1Y4M20D
CY2022Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P1Y8M15D
CY2023Q4 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0366 pure
CY2022Q4 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0460 pure
CY2023 nwcn Operating Cash Outflows From Operating Lease
OperatingCashOutflowsFromOperatingLease
202267 usd
CY2022 nwcn Operating Cash Outflows From Operating Lease
OperatingCashOutflowsFromOperatingLease
54974 usd
CY2021Q4 nwcn Shares Granted Of Common Stock
SharesGrantedOfCommonStock
132172 shares
CY2023 nwcn Noncash Stockbased Compensation
NoncashStockbasedCompensation
0 usd
CY2022 nwcn Noncash Stockbased Compensation
NoncashStockbasedCompensation
24000 usd
CY2023 nwcn Common Stock Descriptions
CommonStockDescriptions
Company will reward him for 606,881 shares of the Company’s common stock. On February 1, 2023, the Company agreed to issue 606,881 restricted shares of the Company’s common stock to the employee, Chen Zhu. Pursuant to the terms of employment contract, if the employee can achieve the annual sales and profit before tax goal in 2023 and 2024, the Company will issue bonus shares of 303,441 and 303,441 restricted shares of the Company’s common stock to the employee, respectively.
CY2023 us-gaap Interest Expense
InterestExpense
206855 usd
CY2022 us-gaap Interest Expense
InterestExpense
192247 usd
CY2023Q4 us-gaap Accrued Salaries Current
AccruedSalariesCurrent
1809142 usd
CY2022Q4 us-gaap Accrued Salaries Current
AccruedSalariesCurrent
1592218 usd
CY2023Q4 us-gaap Management Fee Payable
ManagementFeePayable
320757 usd
CY2022Q4 us-gaap Management Fee Payable
ManagementFeePayable
286680 usd
CY2023 us-gaap Net Income Loss
NetIncomeLoss
-1906353 usd
CY2022 us-gaap Net Income Loss
NetIncomeLoss
-925278 usd
CY2023 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
22347843 shares
CY2022 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
21017190 shares
CY2023 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
22347843 shares
CY2022 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
21017190 shares
CY2023 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.09
CY2023 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.09
CY2022 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.04
CY2022 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.04
CY2023 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-1906353 usd
CY2022 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-925278 usd
CY2023 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-1906353 usd
CY2022 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-925278 usd
CY2023 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.21 pure
CY2022 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.21 pure
CY2023 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
-400334 usd
CY2022 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
-194308 usd
CY2023 us-gaap Income Tax Reconciliation Nondeductible Expense
IncomeTaxReconciliationNondeductibleExpense
184840 usd
CY2022 us-gaap Income Tax Reconciliation Nondeductible Expense
IncomeTaxReconciliationNondeductibleExpense
117723 usd
CY2023 us-gaap Effective Income Tax Rate Reconciliation Share Based Compensation Excess Tax Benefit Amount
EffectiveIncomeTaxRateReconciliationShareBasedCompensationExcessTaxBenefitAmount
9377 usd
CY2022 us-gaap Effective Income Tax Rate Reconciliation Share Based Compensation Excess Tax Benefit Amount
EffectiveIncomeTaxRateReconciliationShareBasedCompensationExcessTaxBenefitAmount
5040 usd
CY2023 us-gaap Income Tax Reconciliation Change In Enacted Tax Rate
IncomeTaxReconciliationChangeInEnactedTaxRate
1917 usd
CY2022 us-gaap Income Tax Reconciliation Change In Enacted Tax Rate
IncomeTaxReconciliationChangeInEnactedTaxRate
755 usd
CY2023 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
204200 usd
CY2022 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
70790 usd
CY2023 us-gaap Tax Credit Carryforward Description
TaxCreditCarryforwardDescription
Under Hong Kong tax laws, deferred tax assets are recognized for tax loss carried forward to the extent that the realization of the related tax benefit through future taxable profits is probable. These tax losses do not expire under current Hong Kong tax legislation. Under PRC tax laws, tax losses may be carried forward for 5 years and no carry-back is allowed. At December 31, 2023 the Company does not have available tax losses in the Hong Kong and PRC to utilize for future taxable profits.
CY2023Q4 us-gaap Operating Loss Carryforwards
OperatingLossCarryforwards
17959386 usd
CY2023Q4 us-gaap Operating Loss Carryforwards Valuation Allowance
OperatingLossCarryforwardsValuationAllowance
3771472 usd
CY2023 nwcn Operating Loss Carryforwards Expiration Year
OperatingLossCarryforwardsExpirationYear
expire on various from 2024 through 2037
CY2023Q4 nwcn Operating Loss Carried Forward2024 To2028
OperatingLossCarriedForward2024To2028
2279147 usd
CY2023Q4 nwcn Operating Loss Carried Forward2029 To2033
OperatingLossCarriedForward2029To2033
892375 usd
CY2023Q4 nwcn Operating Loss Carried Forward2034 To2037
OperatingLossCarriedForward2034To2037
217937 usd
CY2023Q4 nwcn Operating Loss Carried Forward Indefinitely
OperatingLossCarriedForwardIndefinitely
382013 usd
CY2023Q4 nwcn Effect Of Net Operating Loss Carried Forward
EffectOfNetOperatingLossCarriedForward
3771472 usd
CY2022Q4 us-gaap Operating Loss Carryforwards
OperatingLossCarryforwards
17011007 usd
CY2022Q4 us-gaap Operating Loss Carryforwards Valuation Allowance
OperatingLossCarryforwardsValuationAllowance
3567272 usd
CY2022 nwcn Operating Loss Carryforwards Expiration Year
OperatingLossCarryforwardsExpirationYear
expire on various from 2024 through 2037
CY2022Q4 nwcn Operating Loss Carried Forward2024 To2028
OperatingLossCarriedForward2024To2028
2279147 usd
CY2022Q4 nwcn Operating Loss Carried Forward2029 To2033
OperatingLossCarriedForward2029To2033
892375 usd
CY2022Q4 nwcn Operating Loss Carried Forward2034 To2037
OperatingLossCarriedForward2034To2037
217937 usd
CY2022Q4 nwcn Operating Loss Carried Forward Indefinitely
OperatingLossCarriedForwardIndefinitely
177813 usd
CY2022Q4 nwcn Effect Of Net Operating Loss Carried Forward
EffectOfNetOperatingLossCarriedForward
3567272 usd
CY2023Q4 us-gaap Deferred Tax Assets Gross
DeferredTaxAssetsGross
3771472 usd
CY2022Q4 us-gaap Deferred Tax Assets Gross
DeferredTaxAssetsGross
3567272 usd
CY2023Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3771472 usd
CY2022Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3567272 usd
CY2022Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3567272 usd
CY2021Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3496482 usd
CY2023 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
204200 usd
CY2022 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
70790 usd
CY2023Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3771472 usd
CY2022Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
3567272 usd
CY2023Q4 us-gaap Cash Equivalents At Carrying Value
CashEquivalentsAtCarryingValue
1050 usd
CY2022Q4 us-gaap Cash Equivalents At Carrying Value
CashEquivalentsAtCarryingValue
1571 usd
CY2023Q4 us-gaap Deposits
Deposits
4284 usd
CY2022Q4 us-gaap Deposits
Deposits
18780 usd

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