2023 Q3 Form 10-Q Financial Statement

#000121390023066265 Filed on August 11, 2023

View on sec.gov

Income Statement

Concept 2023 Q3 2023 Q2 2022 Q4
Revenue $250.0K $54.19K
YoY Change -9.09% -97.36%
Cost Of Revenue $56.00K $0.00
YoY Change 69.7%
Gross Profit -$77.76K -$97.50K
YoY Change -160.94% -587.25%
Gross Profit Margin -31.1%
Selling, General & Admin $598.3K $649.9K $219.7K
YoY Change 25.48% 20.91% -40.01%
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $202.5K $229.9K $198.5K
YoY Change 2.14% 11.95% 36.81%
% of Gross Profit
Operating Expenses $598.3K $649.9K $417.7K
YoY Change 25.48% 20.91% 14.06%
Operating Profit -$676.1K -$747.4K
YoY Change 93.6% 44.42%
Interest Expense -$157.2K -$422.2K -$59.02K
YoY Change -134.72% -241.9% -126.43%
% of Operating Profit
Other Income/Expense, Net -$157.2K -$422.2K $0.00
YoY Change -134.72% -241.89% -100.0%
Pretax Income -$833.3K -$1.170M -$488.7K
YoY Change -903.83% 431.8% -159.38%
Income Tax -$14.14K
% Of Pretax Income
Net Earnings -$833.3K -$1.170M -$474.6K
YoY Change -903.83% 431.8% -157.67%
Net Earnings / Revenue -333.31% -875.81%
Basic Earnings Per Share -$0.16 -$0.22
Diluted Earnings Per Share -$0.16 -$0.22 -$0.09
COMMON SHARES
Basic Shares Outstanding 5.332M shares 5.332M shares 5.333M shares
Diluted Shares Outstanding 5.332M shares 5.332M shares

Balance Sheet

Concept 2023 Q3 2023 Q2 2022 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $611.5K $128.5K $90.60K
YoY Change 704.88% -43.68% -65.79%
Cash & Equivalents $611.5K $128.5K $90.60K
Short-Term Investments
Other Short-Term Assets $63.07K $33.36K $5.321K
YoY Change 381.72% 12.89% -56.76%
Inventory
Prepaid Expenses $33.36K $5.321K
Receivables
Other Receivables
Total Short-Term Assets $674.5K $161.9K $95.92K
YoY Change 121.43% -37.19% -65.39%
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill
YoY Change
Intangibles $3.870M $4.042M $1.131M
YoY Change 191.04% 272.26% 109.67%
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $3.870M $4.042M $1.131M
YoY Change 191.04% 272.26% 109.67%
TOTAL ASSETS
Total Short-Term Assets $674.5K $161.9K $95.92K
Total Long-Term Assets $3.870M $4.042M $1.131M
Total Assets $4.544M $4.204M $1.227M
YoY Change 178.07% 212.91% 50.26%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $283.3K $206.4K $148.5K
YoY Change 46.66% 60.68% 14.76%
Accrued Expenses $1.469M $1.254M $904.6K
YoY Change 86.49% 85.94% 83.87%
Deferred Revenue
YoY Change
Short-Term Debt $10.96M $10.03M $5.591M
YoY Change 102.12% 30.66% -9.02%
Long-Term Debt Due $2.797M $2.797M $2.797M
YoY Change -0.25% -0.22% -0.3%
Total Short-Term Liabilities $15.81M $14.64M $9.586M
YoY Change 67.98% 58.35% 14.08%
LONG-TERM LIABILITIES
Long-Term Debt $150.0K $150.0K $150.0K
YoY Change 1.63% 1.08% 0.0%
Other Long-Term Liabilities $53.67K $53.67K $53.67K
YoY Change -71.75% -71.75% -71.75%
Total Long-Term Liabilities $203.7K $203.7K $203.7K
YoY Change -39.67% -39.81% -40.1%
TOTAL LIABILITIES
Total Short-Term Liabilities $15.81M $14.64M $9.586M
Total Long-Term Liabilities $203.7K $203.7K $203.7K
Total Liabilities $16.01M $14.85M $9.790M
YoY Change 64.25% 54.89% 11.97%
SHAREHOLDERS EQUITY
Retained Earnings -$29.13M -$28.30M -$26.19M
YoY Change 13.29% 9.61% 2.96%
Common Stock $160.00 $160.00 $160.00
YoY Change 0.0% 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$11.47M -$10.64M -$8.563M
YoY Change
Total Liabilities & Shareholders Equity $4.544M $4.204M $1.227M
YoY Change 178.07% 212.91% 50.26%

Cashflow Statement

Concept 2023 Q3 2023 Q2 2022 Q4
OPERATING ACTIVITIES
Net Income -$833.3K -$1.170M -$474.6K
YoY Change -903.83% 431.8% -157.67%
Depreciation, Depletion And Amortization $202.5K $229.9K $198.5K
YoY Change 2.14% 11.95% 36.81%
Cash From Operating Activities -$418.5K -$490.2K -$150.2K
YoY Change 60.86% 66.94% -122.75%
INVESTING ACTIVITIES
Capital Expenditures $30.00K $0.00 $0.00
YoY Change -106.79% -100.0%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$30.00K $0.00 $0.00
YoY Change -93.21% -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 931.5K 491.7K 164.8K
YoY Change 69.36% 84.11% -377.51%
NET CHANGE
Cash From Operating Activities -418.5K -490.2K -150.2K
Cash From Investing Activities -30.00K 0.000 0.000
Cash From Financing Activities 931.5K 491.7K 164.8K
Net Change In Cash 483.0K 1.600K 14.63K
YoY Change -417.35% -106.04% -71.29%
FREE CASH FLOW
Cash From Operating Activities -$418.5K -$490.2K -$150.2K
Capital Expenditures $30.00K $0.00 $0.00
Free Cash Flow -$448.5K -$490.2K -$150.2K
YoY Change -346.7% 66.94% -112.41%

Facts In Submission

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">Use of Estimates</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenue and expenses during the reporting period. Actual results could differ from those estimates.</p>
us-gaap Revenue Recognition Allowances
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">Revenue Recognition</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Patent Licensing Fees</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company recognizes revenue in accordance with ASC Topic 606, “Revenue from Contracts with Customers”. Revenue is recognized when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. Under Topic 606, revenue is recognized when there is a contract which has commercial substance which is approved by both parties and identifies the rights of the parties and the payment terms.</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">For the periods presented, revenue contracts executed by the Company primarily provided for the payment of contractually determined, one-time, paid-up license fees in consideration for the grant of certain intellectual property rights for patented technologies owned or controlled by the Company’s operating subsidiaries as part of the settlement of litigation commenced by the Company’s subsidiaries. Intellectual property rights granted included the following, as applicable: (i) the grant of a non-exclusive, retroactive and future license to manufacture and/or sell products covered by patented technologies, (ii) a covenant-not-to-sue, (iii) the release of the licensee from certain claims, and (iv) the dismissal of any pending litigation. The intellectual property rights granted were perpetual in nature, extending until the legal expiration date of the related patents. The individual intellectual property rights are not accounted for as separate performance obligations, as (a) the nature of the promise, within the context of the contract, is to transfer combined items to which the promised intellectual property rights are inputs and (b) the Company’s promise to transfer each individual intellectual property right described above to the customer is not separately identifiable from other promises to transfer intellectual property rights in the contract.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Since the promised intellectual property rights are not individually distinct, the Company combined each individual IP right in the contract into a bundle of IP rights that is distinct, and accounted for all of the intellectual property rights promised in the contract as a single performance obligation. The intellectual property rights granted were “functional IP rights” that have significant standalone functionality. The Company’s subsequent activities do not substantively change that functionality and do not significantly affect the utility of the IP to which the licensee has rights. The Company’s subsidiaries have no further obligation with respect to the grant of intellectual property rights, including no express or implied obligation to maintain or upgrade the technology, or provide future support or services. The contracts provide for the grant (i.e., transfer of control) of the licenses, covenants-not-to-sue, releases, and other significant deliverables upon execution of the contract. Licensees legally obtain control of the intellectual property rights upon execution of the contract. As such, the earnings process is complete and revenue is recognized upon the execution of the contract, when collectability is probable and all other revenue recognition criteria have been met. Revenue contracts generally provide for payment of contractual amounts within 30 to 90 days of execution of the contract. Contractual payments made by licensees are generally non-refundable. The Company does not have any significant payment terms, as payment is received shortly after goods are delivered or services are provided, therefore there is no significant financing component or consideration payable to the customer in these transactions.</p>
us-gaap Deferred Foreign Income Tax Expense Benefit
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CY2023Q2 qprc Acquisition Funding
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">Concentration of Credit Risk</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company maintains its cash in bank deposit accounts, which at times, may exceed federally insured limits. The Company has not experienced any such losses in these accounts.</p>
qprc Warrants Granted
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962463 shares
qprc Purchase Agreement Stock Options
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qprc Stock Options Granted To Officers And Consultant
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CY2023Q2 qprc Due To Other Related Partie Current And Noncurrent
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us-gaap Debt Instrument Increase Accrued Interest
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CY2023Q2 qprc Funding Liability Qf3
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CY2023Q2 qprc Net Funding Liabilities
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CY2023Q2 us-gaap Obligation With Joint And Several Liability Arrangement Amount Outstanding
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us-gaap Repayments Of Debt
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814000 usd
us-gaap Debt Instrument Repaid Principal
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CY2023Q2 us-gaap Class Of Warrant Or Right Number Of Securities Called By Warrants Or Rights
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962463 shares
CY2023Q2 us-gaap Short Term Debt Percentage Bearing Variable Interest Rate
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0.10 pure
qprc Purchase Agreement
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92000 usd
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qprc Operating Capital Advance
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qprc Operating Capital Advance
OperatingCapitalAdvance
400000 usd
CY2023Q2 qprc Funding Liability
fundingLiability
95000 usd
us-gaap Other Nonoperating Expense
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qprc Requested And Received
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us-gaap Payments For Restructuring
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us-gaap Payments For Previous Acquisition
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3300000 usd
CY2023Q2 us-gaap Notes And Loans Payable Current
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CY2015Q4 qprc Purchase Agreement
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4672810 usd
us-gaap Notes Issued1
NotesIssued1
250000 usd
qprc Loss On Debt Conversion
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305556 usd
qprc Asset Acquired Description
AssetAcquiredDescription
Pursuant to the MPA-NA, until the TMPO has been paid in full, Intelligent Partners is entitled to receive 10% of the net proceeds realized from new assets acquired by the Company. If, in any calendar quarter, net proceeds realized exceed $1,000,000, Intelligent Partners’ entitlement for that quarter only shall increase to 30% on the portion of net proceeds in excess of $1,000,000 but less than $3,000,000. If in the same calendar quarter, net proceeds exceed $3,000,000, Intelligent Partners’ entitlement for that quarter only shall increase to 50% on the portion of net proceeds in excess of $3,000,000.
qprc Payments For Loan
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275000 usd
qprc Obligation Excess
ObligationExcess
1000000 usd
CY2020Q2 us-gaap Derivative Maturity Dates
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2050-05-14
qprc Deducted Loan Amount
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100 usd
qprc Loan Origination Cost
loanOriginationCost
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CY2021Q1 us-gaap Shares Issued
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0.10 pure
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0.10 pure
CY2023Q2 us-gaap Derivative Fair Value Of Derivative Liability
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359000 usd
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145000 usd
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3.94 pure
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0.54
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
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0.0137 pure
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
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0.0137 pure
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P7Y8M12D
CY2022 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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P8Y1M6D
CY2022Q4 qprc Warrant Liability
WarrantLiability
145428 usd
CY2023Q1 qprc Gain On Subsequent Measurementin Dollars
GainOnSubsequentMeasurementinDollars
8566 usd
CY2023Q1 qprc Warrant Liability
WarrantLiability
153994 usd
CY2023Q2 qprc Gain On Subsequent Measurementin Dollars
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CY2023Q2 qprc Warrant Liability
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CY2021Q4 qprc Warrant Liability
WarrantLiability
1636187 usd
CY2022Q1 qprc Gain On Subsequent Measurement
GainOnSubsequentMeasurement
-471607 usd
CY2022Q1 qprc Warrant Liability
WarrantLiability
1164580 usd
CY2022Q2 qprc Gain On Subsequent Measurement
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-394610 usd
CY2022Q2 qprc Warrant Liability
WarrantLiability
769970 usd
CY2022Q3 us-gaap Conversion Of Stock Shares Converted1
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0.01 shares
qprc Patents
Patents
6057000 usd
CY2022 qprc Patents
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2757000 usd
CY2023Q2 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
6057000 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
2757000 usd
CY2023Q2 us-gaap Finite Lived Intangible Assets Accumulated Amortization
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CY2022Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
-1625846 usd
CY2023Q2 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
4042408 usd
CY2022Q4 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
1131154 usd
qprc Weighted Average Amortization Period Years
WeightedAverageAmortizationPeriodYears
P5Y11M8D
CY2022 qprc Weighted Average Amortization Period Years
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P2Y5M23D
CY2020Q2 qprc Purchase Price
PurchasePrice
95000 usd
CY2020Q2 qprc Net Proceeds
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230000 usd
CY2020Q2 qprc Net Proceeds Percentage
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0.50 pure
CY2021Q1 qprc Purchase Price
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350000 usd
CY2021Q1 qprc Gross Proceeds
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350000 usd
CY2021Q1 qprc Aggregate Amount
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93900 usd
CY2021Q2 qprc Purchase Price
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250000 usd
CY2021Q4 qprc Purchase Price
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550000 usd
CY2021Q4 us-gaap Finite Lived Intangible Asset Useful Life
FiniteLivedIntangibleAssetUsefulLife
P11Y
CY2022Q1 qprc Purchase Price
PurchasePrice
1060000 usd
CY2022Q3 qprc Purchase Price
PurchasePrice
92000 usd
CY2023Q1 qprc Purchase Price
PurchasePrice
3300000 usd
CY2023Q2 us-gaap Adjustment For Amortization
AdjustmentForAmortization
230000 usd
us-gaap Adjustment For Amortization
AdjustmentForAmortization
389000 usd
CY2022Q2 us-gaap Adjustment For Amortization
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205000 usd
CY2023Q2 us-gaap Earnings Per Share Diluted
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-0.22
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.39
us-gaap Adjustment For Amortization
AdjustmentForAmortization
514000 usd
CY2023Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Next Rolling Twelve Months
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CY2023Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Rolling Year Four
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461663 usd
CY2023Q2 us-gaap Finite Lived Intangible Assets Amortization Expense Rolling After Year Five
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4042408 usd
CY2023Q2 qprc Cost Of Service
CostOfService
0 usd
qprc Cost Of Service
CostOfService
62000 usd
CY2022Q2 qprc Cost Of Service
CostOfService
0 usd
qprc Cost Of Service
CostOfService
28000 usd
CY2016Q3 qprc Annual Bonus Compensation Equal Percentage
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0.30 pure
CY2016Q3 us-gaap Income Loss From Subsidiaries Before Tax
IncomeLossFromSubsidiariesBeforeTax
500000 usd
CY2023Q2 us-gaap Deposits
Deposits
33000 usd
CY2022Q2 us-gaap Deposits
Deposits
14500 usd
us-gaap Treasury Stock Acquired Average Cost Per Share
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0.01
CY2022Q2 us-gaap Revenue From Contract With Customer Including Assessed Tax
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us-gaap Interest Paid Net
InterestPaidNet
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ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
pure
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ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
pure
us-gaap Asset Retirement Obligation Period Increase Decrease
AssetRetirementObligationPeriodIncreaseDecrease
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CY2022 us-gaap Asset Retirement Obligation Period Increase Decrease
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dei Amendment Flag
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false
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q2
dei Entity Central Index Key
EntityCentralIndexKey
0000824416

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