2022 Q4 Form 20-F Financial Statement

#000121390023039841 Filed on May 15, 2023

View on sec.gov

Income Statement

Concept 2022 Q4 2022 2021 Q4
Revenue $26.91M $26.91M $18.63M
YoY Change 44.45% 44.45%
Cost Of Revenue $20.29M $20.29M $12.91M
YoY Change 57.17% 57.17%
Gross Profit $6.619M $6.619M $5.719M
YoY Change 15.72% 15.72%
Gross Profit Margin 24.6% 24.6% 30.7%
Selling, General & Admin $1.589M $1.650M $1.145M
YoY Change 38.83% 37.82%
% of Gross Profit 24.01% 24.92% 20.01%
Research & Development $909.8K $932.3K $947.5K
YoY Change -3.98% -5.53%
% of Gross Profit 13.75% 14.09% 16.57%
Depreciation & Amortization $148.0K $22.50K $215.1K
YoY Change -31.2% -42.85% 168.9%
% of Gross Profit 2.24% 0.34% 3.76%
Operating Expenses $2.582M $2.550M $2.186M
YoY Change 18.09% 14.16%
Operating Profit $4.037M $4.069M $3.533M
YoY Change 14.26% 16.72%
Interest Expense -$473.1K $473.1K -$425.9K
YoY Change 11.09% 13.27%
% of Operating Profit -11.72% 11.63% -12.05%
Other Income/Expense, Net $318.3K -$154.8K $636.8K
YoY Change -50.03% -173.4%
Pretax Income $3.914M $3.914M $3.697M
YoY Change 5.87% 5.87%
Income Tax $437.8K $437.8K $301.9K
% Of Pretax Income 11.19% 11.19% 8.17%
Net Earnings $3.476M $3.476M $3.395M
YoY Change 2.4% 2.4%
Net Earnings / Revenue 12.92% 12.92% 18.22%
Basic Earnings Per Share $0.38
Diluted Earnings Per Share $0.38 $0.38 $0.28
COMMON SHARES
Basic Shares Outstanding 9.148M shares
Diluted Shares Outstanding 9.148M shares

Balance Sheet

Concept 2022 Q4 2022 2021 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $7.033M $7.033M $5.175M
YoY Change 35.9% 35.9%
Cash & Equivalents $7.067M $7.033M $5.175M
Short-Term Investments
Other Short-Term Assets $4.751M $4.751M $2.608M
YoY Change 82.17% 82.17%
Inventory $6.227M $6.227M $3.902M
Prepaid Expenses $495.3K
Receivables $9.961M $9.961M $1.754M
Other Receivables $95.01K $263.2K $55.25K
Total Short-Term Assets $28.24M $28.24M $13.49M
YoY Change 109.25% 109.25%
LONG-TERM ASSETS
Property, Plant & Equipment $1.662M $9.327M $1.080M
YoY Change 53.91% -6.06%
Goodwill
YoY Change
Intangibles $8.814K $11.09K
YoY Change -20.54%
Long-Term Investments
YoY Change
Other Assets $33.49K $33.49K $36.25K
YoY Change -7.61% -7.61%
Total Long-Term Assets $9.369M $9.369M $9.976M
YoY Change -6.08% -6.08%
TOTAL ASSETS
Total Short-Term Assets $28.24M $28.24M $13.49M
Total Long-Term Assets $9.369M $9.369M $9.976M
Total Assets $37.61M $37.61M $23.47M
YoY Change 60.22% 60.22%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $4.729M $4.729M $4.152M
YoY Change 13.91% 13.91%
Accrued Expenses $790.6K $790.6K $626.5K
YoY Change 26.2% 26.2%
Deferred Revenue
YoY Change
Short-Term Debt $6.227M $6.227M $5.756M
YoY Change 8.18% 8.18%
Long-Term Debt Due $4.350M $4.350M
YoY Change
Total Short-Term Liabilities $18.04M $18.04M $11.87M
YoY Change 52.03% 52.03%
LONG-TERM LIABILITIES
Long-Term Debt $217.5K $217.5K $4.708M
YoY Change -95.38% -95.38%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $217.5K $217.5K $4.708M
YoY Change -95.38% -95.38%
TOTAL LIABILITIES
Total Short-Term Liabilities $18.04M $18.04M $11.87M
Total Long-Term Liabilities $217.5K $217.5K $4.708M
Total Liabilities $18.26M $18.26M $16.58M
YoY Change 10.17% 10.17%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock 5.000M cnies
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $19.34M $19.34M $6.894M
YoY Change
Total Liabilities & Shareholders Equity $37.61M $37.61M $23.47M
YoY Change 60.22% 60.22%

Cashflow Statement

Concept 2022 Q4 2022 2021 Q4
OPERATING ACTIVITIES
Net Income $3.476M $3.476M $3.395M
YoY Change 2.4% 2.4%
Depreciation, Depletion And Amortization $148.0K $22.50K $215.1K
YoY Change -31.2% -42.85% 168.9%
Cash From Operating Activities -$5.365M -$4.151M $4.643M
YoY Change -215.55% -189.41% -173.0%
INVESTING ACTIVITIES
Capital Expenditures $4.724M $694.8K $244.2K
YoY Change 1834.71% 184.74% 43.63%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$4.724M -$4.896M -$244.2K
YoY Change 1834.71% 1905.21% 43.63%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $1.012M
YoY Change
Cash From Financing Activities 10.70M $11.32M -3.396M
YoY Change -415.24% -433.38% -133.65%
NET CHANGE
Cash From Operating Activities -5.365M -$4.151M 4.643M
Cash From Investing Activities -4.724M -$4.896M -244.2K
Cash From Financing Activities 10.70M $11.32M -3.396M
Net Change In Cash 615.4K $1.893M 1.003M
YoY Change -38.66% 88.65% -71.82%
FREE CASH FLOW
Cash From Operating Activities -$5.365M -$4.151M $4.643M
Capital Expenditures $4.724M $694.8K $244.2K
Free Cash Flow -$10.09M -$4.846M $4.399M
YoY Change -329.35% -210.16% -167.36%

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS</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"><b>Erayak Power Solution Group Inc. (“Erayak Group”)</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">Erayak Group was incorporated on June 14, 2019 under the laws of Cayman Islands. Under its memorandum of association, Erayak Group is authorized to issue 500,000,000 ordinary shares of par value of $0.0001 each, comprising of: (i) 450,000,000 Class A Ordinary Shares of par value of USD0.0001 each, and (ii) 50,000,000 Class B Ordinary Shares of par value of USD0.0001 each. There are currently 11,000,000 issued and outstanding Class A Ordinary Shares and 1,000,000 issued and outstanding Class B Ordinary Shares, of which 6,000,000 Class A and 1,000,000 Class B Ordinary Shares are owned by Erayak International Limited, 1,400,000 Class A Ordinary Shares are owned by CEC Science and Innovation Co., Ltd., and 600,000 Class A Ordinary Shares are owned by Grand Merchant Incorporation Limited.</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">Erayak Group is a holding company and is currently not actively engaging in any business. Erayak Group’s registered agent is Harneys Fiduciary (Cayman) Limited, and its registered office is at 4th Floor, Harbour Place, 103 South Church Street, P.O. Box 10240, Grand Cayman, KY1-1002, Cayman Islands.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1.5pt solid; white-space: nowrap; width: 30%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Entity Name</b></span></td> <td style="white-space: nowrap; width: 1%; text-align: center"> </td> <td style="vertical-align: bottom; text-align: center; border-bottom: black 1.5pt solid; white-space: nowrap; width: 15%"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><b>Registered</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><b>Location</b></p></td> <td style="white-space: nowrap; width: 1%; text-align: center"> </td> <td style="vertical-align: bottom; border-bottom: black 1.5pt solid; white-space: nowrap; width: 20%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Date of Incorporation</b></span></td> <td style="white-space: nowrap; width: 1%; text-align: center"> </td> <td style="vertical-align: bottom; text-align: center; border-bottom: black 1.5pt solid; white-space: nowrap; width: 33%"> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><b>Ownership as of the</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><b>issuance date of the report</b></p></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Erayak Power Solution Group Inc. (“Erayak Group”)</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cayman Islands</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 14, 2019</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Parent</span></td></tr> <tr style="background-color: White"> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Erayak Power Solution Limited<br/> (“Erayak BVI’)</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">British Virgin Island</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 17, 2019</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">100% by the Parent</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Erayak Power Solution Hong Kong Limited (“Erayak HK”)</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Hong Kong</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 26, 2019</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">100% by Erayak BVI</span></td></tr> <tr style="background-color: White"> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Wenzhou Wenjie Technology Limited (“Wenjie”)</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Wenzhou, China</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">December 11, 2019</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">100% by Erayak HK</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Beijing Leiya Meijia Technology Co., Ltd. (“Meijia”)</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Beijing, China</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">May 14, 2019</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">100% by Wenjie</span></td></tr> <tr style="background-color: White"> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Zhejiang Leiya Electronics Limited (“Leiya”)</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Wenzhou, China</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">March 5, 2009</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">100% by Wenjie</span></td></tr> <tr style="background-color: rgb(204,238,255)"> <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Wenzhou New Focus Limited<br/> (“New Focus”)</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Wenzhou, China</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">November 21, 2012</span></td> <td style="text-align: center"> </td> <td style="vertical-align: bottom; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">100% by Leiya</span></td></tr> </table><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"><b>Erayak Power Solution Limited (“Erayak BVI”)</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">Erayak BVI was incorporated on June 17, 2019 under the laws of British Virgin Islands. Under its memorandum of association, Erayak BVI is authorized to issue 50,000 ordinary shares of a single class, par value $1 per ordinary share. There are currently 100 issued and outstanding ordinary shares, of which 100% are owned by Erayak Power Solution Group Limited. Erayak BVI is a holding company and is currently not actively engaging in any business. Erayak BVI’s registered agent is Harneys Corporate Services Limited and its registered office is at Craigmuir Chambers, Road Town, Tortola, VG 1110, British Virgin Islands.</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"><b>Erayak Power Solution Hong Kong Limited (“Erayak HK”)</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">Erayak HK was incorporated on June 26, 2019 under the laws of Hong Kong and is a wholly owned subsidiary of Erayak Power Solution Limited. The paid in capital was zero as of December 31, 2022. Erayak HK did not have any operations as of December 31, 2022.</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"><b>Wenzhou Wenjie Technology Limited (“Wenjie”)</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">Wenjie was incorporated on December 11, 2019 in People’s Republic of China (“China” or “PRC”), and is a wholly owned subsidiary of Erayak Power Solution Hong Kong Limited. Wenjie is a wholly-foreign owned enterprise organized under the laws of the PRC. The registered capital is RMB 5,000,000 and the paid in capital was zero as of December 31, 2022. Wenjie did not have any operations as of December 31, 2022.</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"><b>Beijing Leiya Meijia Technology Co., Limited (“Meijia”)</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Meijia was incorporated on May 14, 2019 under the laws of the People’s Republic of China. The registered capital is RMB 100,000, and the paid in capital was zero as of December 31, 2022. Meijia was acquired by Wenjie on January 12, 2021 and did not have any operations as of December 31, 2022.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Zhejiang Leiya Electronics Limited (“Leiya”)</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Leiya was incorporated on March 5, 2009 under the laws of the People’s Republic of China. The registered capital is RMB 50,000,000, and the paid in capital is RMB 6,900,000 as of December 31, 2022.</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">The registered principal activities of Leiya are mainly development, production and sales of inverters, chargers and gasoline generators.  </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"><b>Wenzhou New Focus Limited (“New Focus”)</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">New Focus was incorporated on November 21, 2012 in China, and is a wholly owned subsidiary of Leiya. The registered capital is RMB 30,000,000. The paid in capital was RMB 5,000,000 as of December 31, 2022.</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">The principal activity of New Focus is mainly the sale of Leiya’s products, which involves exports to multiple countries.</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"><b>Reorganization</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In or about April and August 2020, the Company completed corporate reorganization to roll several controlled entities (now referred to as the subsidiaries) into one legal corporation (the Company). Shengling Xiang transferred 10% equity of Leiya to Hecang Limited, a Hong Kong entity’s subsidiary, on January 14, 2020. On April 21, 2020, Wenjie acquired 90% equity of Leiya from Shengling Xiang, and 10% from Hecang Limited. As a result, Leiya’s equity interest is 100% held by Wenjie as of April 21, 2020. On August 12, 2020, Chuanlong Lin transferred 100% equity of New Focus to Leiya. Therefore, Leiya holds 100% of equity interest of New Focus as of August 12, 2020. Shengling Xiang, Hecang Limited, and Chuanlong Lin were holding shares on behalf of Lingyi Kong, and therefore, the Company is under the control of Lingyi Kong both before and after the transactions.</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">During the years presented in these consolidated financial statements, the control of the entities has never changed (always under the ultimate control of Lingyi Kong).   Accordingly, the combination has been treated as a corporate restructuring (reorganization) of entities under common control and thus the current capital structure has been retroactively presented in prior periods as if such structure existed at that time and in accordance with ASC 805-50-45-5, the entities under common control are presented on a combined basis for all periods to which such entities were under common control. The consolidation of the Company and its subsidiaries has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements.</p>
CY2022Q4 us-gaap Additional Paid In Capital Common Stock
AdditionalPaidInCapitalCommonStock
5000000 cny
CY2020Q1 us-gaap Health Care Organization Allowance For Doubtful Accounts Percentage Of Accounts Receivable
HealthCareOrganizationAllowanceForDoubtfulAccountsPercentageOfAccountsReceivable
0.10 pure
CY2020Q3 us-gaap Plan Of Reorganization Description Of Debt Securities Issued Or To Be Issued
PlanOfReorganizationDescriptionOfDebtSecuritiesIssuedOrToBeIssued
Wenjie acquired 90% equity of Leiya from Shengling Xiang, and 10% from Hecang Limited. As a result, Leiya’s equity interest is 100% held by Wenjie as of April 21, 2020.
CY2020Q2 us-gaap Plan Of Reorganization Description Of Debt Securities Issued Or To Be Issued
PlanOfReorganizationDescriptionOfDebtSecuritiesIssuedOrToBeIssued
Chuanlong Lin transferred 100% equity of New Focus to Leiya. Therefore, Leiya holds 100% of equity interest of New Focus as of August 12, 2020.
CY2022 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-4151135 usd
CY2022Q4 us-gaap Partners Capital
PartnersCapital
10192102 usd
CY2022 us-gaap Use Of Estimates
UseOfEstimates
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Use of Estimates</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">The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Such estimates include, but are not limited to, allowances for doubtful accounts, inventory valuation, useful lives of property, plant and equipment, intangible assets, and income taxes related to realization of deferred tax assets and uncertain tax position. Actual results could differ from those estimates.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
CY2022Q4 us-gaap Derivative Forward Exchange Rate1
DerivativeForwardExchangeRate1
6.8972 pure
CY2021Q4 us-gaap Derivative Forward Exchange Rate1
DerivativeForwardExchangeRate1
6.3726 pure
CY2020Q4 us-gaap Derivative Forward Exchange Rate1
DerivativeForwardExchangeRate1
6.525 pure
CY2022Q4 us-gaap Derivative Average Exchange Rate Cap1
DerivativeAverageExchangeRateCap1
6.729 pure
CY2021Q4 us-gaap Derivative Average Exchange Rate Cap1
DerivativeAverageExchangeRateCap1
6.4508 pure
CY2020Q4 us-gaap Derivative Average Exchange Rate Cap1
DerivativeAverageExchangeRateCap1
6.9042 pure
CY2022Q4 us-gaap Restricted Cash Current
RestrictedCashCurrent
34728 usd
CY2022Q4 us-gaap Property Plant And Equipment Salvage Value Percentage
PropertyPlantAndEquipmentSalvageValuePercentage
0.05 pure
CY2022 raya Vat Description
VATDescription
The Company is subject to a VAT rate of 17% before May 1, 2018, 16% on and after May 1, 2018, and a new VAT rate of 13% effective on April 1, 2019. The VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing or acquiring its finished products.
CY2022 us-gaap Debt Instrument Term
DebtInstrumentTerm
P1Y
CY2022Q4 us-gaap Grants Receivable
GrantsReceivable
194001 usd
CY2021Q4 us-gaap Grants Receivable
GrantsReceivable
169827 usd
CY2020Q4 us-gaap Grants Receivable
GrantsReceivable
220245 usd
CY2022 us-gaap Costs Incurred Exploration Costs
CostsIncurredExplorationCosts
181556 usd
CY2021 us-gaap Costs Incurred Exploration Costs
CostsIncurredExplorationCosts
78281 usd
CY2020 us-gaap Costs Incurred Exploration Costs
CostsIncurredExplorationCosts
24231 usd
CY2022 us-gaap Advertising Expense
AdvertisingExpense
8513 usd
CY2021 us-gaap Advertising Expense
AdvertisingExpense
5873 usd
CY2020 us-gaap Advertising Expense
AdvertisingExpense
11724 usd
CY2022 us-gaap Effective Income Tax Rate Reconciliation Change In Enacted Tax Rate
EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate
0.50 pure
CY2022 raya Prc Tax Authorities
PRCTaxAuthorities
P5Y
CY2022 raya Certain Risks And Concentration
CertainRisksAndConcentration
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Certain Risks and Concentration</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"><i>Exchange Rate Risks</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i> </i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company operates in PRC, which may give rise to significant foreign currency risks mainly from fluctuations and the degree of volatility of foreign exchange rates between the USD and the RMB.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Currency Convertibility Risks</i></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">Substantially all of the Company’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with other information such as suppliers’ invoices, shipping documents and signed contracts.</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"><i>Concentration of Credit Risks</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Financial instruments that potentially subject the Company to concentration of credit risks consist primarily of cash and cash equivalents, restricted cash, notes receivable. The Company places its cash and cash equivalents, restricted cash, and note receivable in good credit quality financial institutions in Hong Kong and PRC. Concentration of credit risks with respect to accounts receivables is linked to the concentration of revenue. To manage credit risk, the Company performs ongoing credit evaluations of customers’ financial condition.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Interest Rate Risks</i></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 is subject to interest rate risk. The Company has bank interest bearing loans charged at variable interest rates. And although some bank interest bearing loans are charged at fixed interest rates within the reporting period, the Company is still subject to the risk of adverse changes in the interest rates charged by the banks when these loans are refinanced.</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"><i>Risks and Uncertainties</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i> </i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note1, this may not be indicative of future results.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Liquidity Risks</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our primary sources of liquidity consist of existing cash balances, cash flows from our operating activities and availability under our revolving credit facility. Our ability to generate sufficient cash flows from our operating activities is primarily dependent on our sales of converters and power generating products to our customers at margins sufficient to cover fixed and variable expenses.</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">As of December 31, 2022, and 2021, we had cash and cash equivalents of $7,067,247 and $5,174,693, respectively. We believe that our current cash, cash to be generated from our operations and access to loans from our related parties will be sufficient to meet our working capital needs for at least the next twelve months. Although we do not have any amounts committed to be provided by our related parties, due to their relatively small amounts, we do not believe our working capital needs will be negatively impacted without such funds provided by related parties.   We are also not dependent upon this offering to meet our liquidity needs for the next twelve months. However, we plan to expand our business to implement our growth strategies in our existing market and strengthen our position in the marketplace. To do so, we will need more capital through equity financing to increase our production and meet market demands.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
CY2022Q4 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
7067247 usd
CY2021Q4 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
5174693 usd
CY2022 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Reclassification of Prior Year Presentation</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">Prior periods have been reclassified to conform to the current period presentation. The reclassification had no impact on the Consolidated Balance Sheet and Consolidated Statement of Income and Comprehensive Income or Consolidated Statement of Cash Flows.</p>
CY2022Q4 us-gaap Accounts Receivable Gross Current
AccountsReceivableGrossCurrent
9963821 usd
CY2021Q4 us-gaap Accounts Receivable Gross Current
AccountsReceivableGrossCurrent
1756562 usd
CY2022Q4 us-gaap Allowance For Doubtful Accounts Premiums And Other Receivables
AllowanceForDoubtfulAccountsPremiumsAndOtherReceivables
2478 usd
CY2021Q4 us-gaap Allowance For Doubtful Accounts Premiums And Other Receivables
AllowanceForDoubtfulAccountsPremiumsAndOtherReceivables
2682 usd
CY2022Q4 us-gaap Accounts Receivable Net Current
AccountsReceivableNetCurrent
9961343 usd
CY2021Q4 us-gaap Accounts Receivable Net Current
AccountsReceivableNetCurrent
1753880 usd
CY2022Q4 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
2682 usd
CY2021 us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
2649 usd
CY2022 raya Exchange Difference
ExchangeDifference
204 usd
CY2021 raya Exchange Difference
ExchangeDifference
-33 usd
CY2022Q4 us-gaap Allowance For Doubtful Accounts Receivable Noncurrent
AllowanceForDoubtfulAccountsReceivableNoncurrent
2478 usd
CY2021Q4 us-gaap Allowance For Doubtful Accounts Receivable Noncurrent
AllowanceForDoubtfulAccountsReceivableNoncurrent
2682 usd
CY2022 us-gaap Interest Expense Debt
InterestExpenseDebt
0 usd
CY2021 us-gaap Interest Expense Debt
InterestExpenseDebt
2682 usd
CY2020 us-gaap Interest Expense Debt
InterestExpenseDebt
0 usd
CY2022Q4 us-gaap Inventory Raw Materials
InventoryRawMaterials
4298235 usd
CY2021Q4 us-gaap Inventory Raw Materials
InventoryRawMaterials
2173972 usd
CY2022Q4 us-gaap Inventory Work In Process
InventoryWorkInProcess
642235 usd
CY2021Q4 us-gaap Inventory Work In Process
InventoryWorkInProcess
827996 usd
CY2022Q4 us-gaap Inventory Finished Goods
InventoryFinishedGoods
1300383 usd
CY2021Q4 us-gaap Inventory Finished Goods
InventoryFinishedGoods
948038 usd
CY2022Q4 raya Exchange Difference On The Allowance
ExchangeDifferenceOnTheAllowance
13397 usd
CY2021Q4 raya Exchange Difference On The Allowance
ExchangeDifferenceOnTheAllowance
47939 usd
CY2022Q4 us-gaap Inventory Adjustments
InventoryAdjustments
6227456 usd
CY2021Q4 us-gaap Inventory Adjustments
InventoryAdjustments
3902067 usd
CY2022Q4 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
31668 usd
CY2021Q4 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
47358 usd
CY2022 us-gaap Payments To Suppliers
PaymentsToSuppliers
515137 usd
CY2021 us-gaap Payments To Suppliers
PaymentsToSuppliers
2112852 usd
CY2022 raya Advance Payment For Potential Land Purchase
AdvancePaymentForPotentialLandPurchase
4201354 usd
CY2022 raya Total Advance To Suppliers
TotalAdvanceToSuppliers
4716491 usd
CY2021 raya Total Advance To Suppliers
TotalAdvanceToSuppliers
2112852 usd
CY2022 us-gaap Payments To Suppliers And Employees
PaymentsToSuppliersAndEmployees
4200000 usd
CY2021 us-gaap Cost Of Goods And Services Sold Depreciation
CostOfGoodsAndServicesSoldDepreciation
121455 usd
CY2020 us-gaap Cost Of Goods And Services Sold Depreciation
CostOfGoodsAndServicesSoldDepreciation
57041 usd
CY2022 us-gaap Payments To Acquire Land
PaymentsToAcquireLand
4000000 usd
CY2022 us-gaap Legal Fees
LegalFees
200000 usd
CY2022 us-gaap Other Expenses
OtherExpenses
1354 usd
CY2022 us-gaap Payments To Suppliers And Employees
PaymentsToSuppliersAndEmployees
4201354 usd
CY2022Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
2646102 usd
CY2021Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
1861576 usd
CY2022Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment Excluding Capital Leased Assets
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipmentExcludingCapitalLeasedAssets
983947 usd
CY2021Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment Excluding Capital Leased Assets
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipmentExcludingCapitalLeasedAssets
781593 usd
CY2022Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
1662155 usd
CY2021Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
1079983 usd
CY2022 us-gaap Property Plant And Equipment Additions
PropertyPlantAndEquipmentAdditions
926117 usd
CY2021 us-gaap Property Plant And Equipment Additions
PropertyPlantAndEquipmentAdditions
323287 usd
CY2022 raya Disposal
Disposal
0 usd
CY2021 raya Disposal
Disposal
0 usd
CY2022Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
268346 usd
CY2021Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
215121 usd
CY2020Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
148194 usd
CY2022 us-gaap Cost Of Goods And Services Sold Depreciation
CostOfGoodsAndServicesSoldDepreciation
184542 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
13136 usd
CY2021Q4 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
14060 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
-2851 usd
CY2021Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
-1709 usd
CY2021 us-gaap Servicing Liability At Amortized Value Additions
ServicingLiabilityAtAmortizedValueAdditions
157 usd
CY2022 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
1471 usd
CY2021 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
1415 usd
CY2022Q4 us-gaap Intangible Assets Current
IntangibleAssetsCurrent
8814 usd
CY2021Q4 us-gaap Intangible Assets Current
IntangibleAssetsCurrent
11093 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
1314 usd
CY2021Q4 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
7500 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
1314 usd
CY2021Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
6186 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
1314 usd
CY2021Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
4872 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
1314 usd
CY2021Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
3558 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive
1314 usd
CY2021Q4 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive
2244 usd
CY2022 raya Lease Term Period
LeaseTermPeriod
P20Y
CY2022Q4 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
7665013 usd
CY2021Q4 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
8849073 usd
CY2022Q4 us-gaap Short Term Bank Loans And Notes Payable
ShortTermBankLoansAndNotesPayable
4777301 usd
CY2021Q4 us-gaap Short Term Bank Loans And Notes Payable
ShortTermBankLoansAndNotesPayable
4078425 usd
CY2021 us-gaap Short Term Debt Refinanced Amount
ShortTermDebtRefinancedAmount
108503 usd
CY2022 us-gaap Proceeds From Loans
ProceedsFromLoans
1449864 usd
CY2021 us-gaap Proceeds From Loans
ProceedsFromLoans
1569218 usd
CY2022Q4 us-gaap Other Short Term Borrowings
OtherShortTermBorrowings
6227165 usd
CY2021Q4 us-gaap Other Short Term Borrowings
OtherShortTermBorrowings
5756146 usd
CY2022Q4 raya Bank Loan
BankLoan
32950000 cny
CY2022Q4 raya Bank Loan
BankLoan
4777301 usd
CY2021Q4 raya Bank Loan
BankLoan
25990168 cny
CY2021Q4 raya Bank Loan
BankLoan
4078425 usd
CY2022 us-gaap Interest Expense Short Term Borrowings
InterestExpenseShortTermBorrowings
192198 usd
CY2021 us-gaap Interest Expense Short Term Borrowings
InterestExpenseShortTermBorrowings
139764 usd
CY2020 us-gaap Interest Expense Short Term Borrowings
InterestExpenseShortTermBorrowings
91529 usd
CY2022 us-gaap Shortterm Debt Maximum Amount Outstanding During Period
ShorttermDebtMaximumAmountOutstandingDuringPeriod
54614 usd
CY2022Q4 raya Imputed Interest Expenses
ImputedInterestExpenses
10538 usd
CY2021Q4 raya Imputed Interest Expenses
ImputedInterestExpenses
59657 usd
CY2022Q4 us-gaap Long Term Debt Fair Value
LongTermDebtFairValue
31500300 cny
CY2022Q4 us-gaap Long Term Debt Fair Value
LongTermDebtFairValue
4567114 usd
CY2022Q4 raya Current Portion Of Longterm
CurrentPortionOfLongterm
-30000000 cny
CY2022Q4 raya Current Portion Of Longterm
CurrentPortionOfLongterm
-4349591 usd
CY2022Q4 us-gaap Other Long Term Debt Current
OtherLongTermDebtCurrent
1500300 cny
CY2022Q4 us-gaap Other Long Term Debt Current
OtherLongTermDebtCurrent
217523 usd
CY2021Q4 us-gaap Longterm Construction Loan Current And Noncurrent
LongtermConstructionLoanCurrentAndNoncurrent
4707655 usd
CY2022 us-gaap Interest Expense Long Term Debt
InterestExpenseLongTermDebt
212451 usd
CY2021 us-gaap Interest Expense Long Term Debt
InterestExpenseLongTermDebt
153611 usd
CY2022 raya Disaggregated Sales
DisaggregatedSales
26909025 usd
CY2021 raya Disaggregated Sales
DisaggregatedSales
18628886 usd
CY2020 raya Disaggregated Sales
DisaggregatedSales
14121838 usd
CY2022 us-gaap Disposal Group Including Discontinued Operation Rental Income
DisposalGroupIncludingDiscontinuedOperationRentalIncome
388058 usd
CY2021 us-gaap Disposal Group Including Discontinued Operation Rental Income
DisposalGroupIncludingDiscontinuedOperationRentalIncome
416692 usd
CY2022 raya Selling And Marketing Expenses
SellingAndMarketingExpenses
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 14 – SELLING AND MARKETING EXPENSES</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">Selling and marketing expenses as of December 31, 2022, 2021 and 2020 consisted of the following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Employee compensation and benefits</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">141,600</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">99,797</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">106,623</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Travel and promotion</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">36,768</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">45,083</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">47,199</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Transportation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">181,556</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">78,281</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">47,886</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Insurance</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,813</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,561</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Consulting fee</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,917</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,203</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Inspection and certification fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">196,732</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">77,352</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">108,062</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Entertainment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">140,292</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">166,295</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Office and miscellaneous</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">16,255</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">30,481</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,978</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">720,120</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">506,305</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">325,309</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table>
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