2023 Q1 Form 10-Q Financial Statement

#000184085623000031 Filed on May 12, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q1
Revenue $6.707M $0.00
YoY Change
Cost Of Revenue $1.976M $1.773M
YoY Change 11.45% 11.3%
Gross Profit $4.731M $2.517M
YoY Change 87.96% 17.29%
Gross Profit Margin 70.54%
Selling, General & Admin $12.00M $6.584M
YoY Change 82.26% 52.34%
% of Gross Profit 253.65% 261.58%
Research & Development $14.18M $16.65M
YoY Change -14.81% 15.28%
% of Gross Profit 299.81% 661.5%
Depreciation & Amortization $708.0K $1.292M
YoY Change -45.2% -10.96%
% of Gross Profit 14.97% 51.33%
Operating Expenses $26.18M $490.1K
YoY Change 5243.13% 501.73%
Operating Profit -$25.04M $2.027M
YoY Change -1335.25% -1.82%
Interest Expense $1.096M $104.6K
YoY Change 947.7% -4139.0%
% of Operating Profit 5.16%
Other Income/Expense, Net $63.00K -$467.0K
YoY Change -113.49% 42.38%
Pretax Income -$26.04M -$385.5K
YoY Change 6655.74% 358.71%
Income Tax $329.0K $352.0K
% Of Pretax Income
Net Earnings -$26.37M -$385.5K
YoY Change 6741.09% 358.71%
Net Earnings / Revenue -393.16%
Basic Earnings Per Share -$0.13 -$0.36
Diluted Earnings Per Share -$0.13 -$22.07K
COMMON SHARES
Basic Shares Outstanding 205.1M shares 69.60M shares
Diluted Shares Outstanding 205.1M shares 69.60M shares

Balance Sheet

Concept 2023 Q1 2022 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $46.33M $18.13K
YoY Change 255448.81% -98.12%
Cash & Equivalents $46.30M $18.13K
Short-Term Investments
Other Short-Term Assets $1.069M $78.57K
YoY Change 1260.57% -52.59%
Inventory
Prepaid Expenses $1.651M
Receivables $4.206M $1.332M
Other Receivables $0.00 $0.00
Total Short-Term Assets $53.26M $96.70K
YoY Change 54974.46% -91.44%
LONG-TERM ASSETS
Property, Plant & Equipment $10.15M $15.70M
YoY Change -35.37%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $133.0M
YoY Change 0.02%
Other Assets $2.074M $7.228M
YoY Change -71.31%
Total Long-Term Assets $19.55M $133.0M
YoY Change -85.31% 0.02%
TOTAL ASSETS
Total Short-Term Assets $53.26M $96.70K
Total Long-Term Assets $19.55M $133.0M
Total Assets $72.80M $133.1M
YoY Change -45.31% -0.75%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.542M $6.938M
YoY Change -63.36%
Accrued Expenses $12.31M $503.1K
YoY Change 2346.18% 379.94%
Deferred Revenue $5.319M
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due $16.98M $61.83M
YoY Change -72.55%
Total Short-Term Liabilities $41.51M $657.8K
YoY Change 6210.35% 70.72%
LONG-TERM LIABILITIES
Long-Term Debt $14.14M $0.00
YoY Change
Other Long-Term Liabilities $4.294M $154.8K
YoY Change 2674.44%
Total Long-Term Liabilities $4.294M $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $41.51M $657.8K
Total Long-Term Liabilities $4.294M $0.00
Total Liabilities $70.42M $657.8K
YoY Change 10604.88% 70.72%
SHAREHOLDERS EQUITY
Retained Earnings -$528.5M
YoY Change
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $2.382M -$363.4M
YoY Change
Total Liabilities & Shareholders Equity $72.80M $133.1M
YoY Change -45.31% -0.75%

Cashflow Statement

Concept 2023 Q1 2022 Q1
OPERATING ACTIVITIES
Net Income -$26.37M -$385.5K
YoY Change 6741.09% 358.71%
Depreciation, Depletion And Amortization $708.0K $1.292M
YoY Change -45.2% -10.96%
Cash From Operating Activities -$14.47M -$217.2K
YoY Change 6561.6% 16.78%
INVESTING ACTIVITIES
Capital Expenditures $15.00K -$611.0K
YoY Change -102.45% -1069.84%
Acquisitions $0.00
YoY Change
Other Investing Activities $0.00
YoY Change -100.0%
Cash From Investing Activities -$15.00K
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $28.36M
YoY Change
Debt Paid & Issued, Net $4.120M
YoY Change
Cash From Financing Activities $51.57M
YoY Change
NET CHANGE
Cash From Operating Activities -$14.47M -217.2K
Cash From Investing Activities -$15.00K
Cash From Financing Activities $51.57M
Net Change In Cash $37.09M $0.00
YoY Change -100.0%
FREE CASH FLOW
Cash From Operating Activities -$14.47M -$217.2K
Capital Expenditures $15.00K -$611.0K
Free Cash Flow -$14.48M $393.8K
YoY Change -3777.22% -258.19%

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CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
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CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
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CashAndCashEquivalentsAtCarryingValue
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RestrictedCashAndCashEquivalentsAtCarryingValue
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230000 usd
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RestrictedCashAndCashEquivalentsNoncurrent
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CY2023Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
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CY2022Q1 us-gaap Income Taxes Paid
IncomeTaxesPaid
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DebtIssuanceCostsIncurredDuringNoncashOrPartialNoncashTransaction
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CY2022Q1 us-gaap Debt Issuance Costs Incurred During Noncash Or Partial Noncash Transaction
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0 usd
CY2023Q1 soun Deferred Offering Costs Reclassified To Additional Paid In Capital
DeferredOfferingCostsReclassifiedToAdditionalPaidInCapital
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CY2023Q1 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2023Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
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CashAndCashEquivalentsAtCarryingValue
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CY2023Q1 us-gaap Prior Period Reclassification Adjustment Description
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<div style="margin-top:12pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%;text-decoration:underline">Reclassification</span></div><div style="margin-top:12pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Certain prior period balances have been reclassified to conform to the current year presentation. Such changes include reclassifications or combinations of certain accounts on the condensed consolidated balance sheets.</span></div><div style="margin-top:12pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">These reclassifications had no impact on total assets, total liabilities, net loss or accumulated deficit in the previously reported consolidated financial statements for the year ended December 31, 2022.</span></div>
CY2023Q1 us-gaap Foreign Currency Cash Flow Hedge Gain Loss Reclassified To Earnings Net
ForeignCurrencyCashFlowHedgeGainLossReclassifiedToEarningsNet
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CY2022Q1 us-gaap Foreign Currency Cash Flow Hedge Gain Loss Reclassified To Earnings Net
ForeignCurrencyCashFlowHedgeGainLossReclassifiedToEarningsNet
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CY2023Q1 us-gaap Use Of Estimates
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<div style="margin-top:12pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%;text-decoration:underline">Use of Estimates</span></div><div style="margin-top:12pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported and disclosures in the condensed consolidated financial statements and accompanying notes. Such estimates include revenue recognition, allowance for doubtful accounts, accrued liabilities, derivative and warrant liabilities, calculation of the incremental borrowing rate, financial instruments recorded at fair value on a recurring basis, valuation of deferred tax assets and uncertain tax positions and the fair value of common stock and other assumptions used to measure stock-based compensation expense. The Company bases its estimates on historical experience, the current economic environment and on assumptions it believes are reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from changes in the economic environment will be reflected in the financial statements in future periods. Actual results could differ materially from those estimates.</span></div>
CY2023Q1 us-gaap Concentration Risk Credit Risk
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<div style="margin-top:12pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%;text-decoration:underline">Concentrations of Credit Risk and Other Risks and Uncertainties</span></div><div style="margin-top:12pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents. The Company regularly monitors its credit risk exposure and takes steps to mitigate the likelihood of these exposures resulting in actual loss.</span></div>
CY2022Q2 soun Common Stock And Preferred Stock Shares Authorized
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500000000 shares
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PreferredStockParOrStatedValuePerShare
0.0001
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ConversionOfStockShareConversionRate
5.5562 shares
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CashAcquiredThroughReverseRecapitalization
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CY2022Q2 soun Proceeds From Reverse Recapitalization Transaction
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CY2022Q2 soun Stock Issued During Period Value Reverse Recapitalization
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CY2022Q2 us-gaap Stock Issued During Period Value Acquisitions
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CY2022Q2 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
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CY2023Q1 us-gaap Revenue Performance Obligation Description Of Timing
RevenuePerformanceObligationDescriptionOfTiming
Hosted services, along with non-distinct customization, integration, maintenance and support professional services, allow customers to access the Houndify platform over the contract period without taking possession of the software. The contract terms of hosted services range from one year to twenty years.
CY2023Q1 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
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CY2022Q1 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
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RevenueFromContractWithCustomerIncludingAssessedTax
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RevenueFromContractWithCustomerIncludingAssessedTax
4290000 usd
CY2023Q1 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
6707000 usd
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RevenueFromContractWithCustomerIncludingAssessedTax
4290000 usd
CY2023Q1 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
6707000 usd
CY2022Q1 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
4290000 usd
CY2023Q1 us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
1800000 usd
CY2022Q1 us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
2200000 usd
CY2023Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
18400000 usd
CY2023Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
7300000 usd
CY2023Q1 us-gaap Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period1
RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod1
P1Y
CY2023Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
7900000 usd
CY2023Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
3200000 usd
CY2023Q1 soun Long Term Contract Term
LongTermContractTerm
P1Y
CY2023Q1 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
11046000 usd
CY2022Q4 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
6134000 usd
CY2023Q1 us-gaap Interest Payable Current
InterestPayableCurrent
210000 usd
CY2022Q4 us-gaap Interest Payable Current
InterestPayableCurrent
236000 usd
CY2023Q1 soun Accrued Vendor Payables Current
AccruedVendorPayablesCurrent
535000 usd
CY2022Q4 soun Accrued Vendor Payables Current
AccruedVendorPayablesCurrent
1002000 usd
CY2023Q1 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
386000 usd
CY2022Q4 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
89000 usd
CY2023Q1 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
129000 usd
CY2022Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
1000 usd
CY2023Q1 us-gaap Accrued Liabilities Current
AccruedLiabilitiesCurrent
12306000 usd
CY2022Q4 us-gaap Accrued Liabilities Current
AccruedLiabilitiesCurrent
7462000 usd
CY2023Q1 us-gaap Contractual Obligation Future Minimum Payments Due Remainder Of Fiscal Year
ContractualObligationFutureMinimumPaymentsDueRemainderOfFiscalYear
5250000 usd
CY2023Q1 us-gaap Contractual Obligation Due In Next Twelve Months
ContractualObligationDueInNextTwelveMonths
11000000 usd
CY2023Q1 us-gaap Contractual Obligation Due In Second Year
ContractualObligationDueInSecondYear
14000000 usd
CY2023Q1 us-gaap Contractual Obligation Due In Third Year
ContractualObligationDueInThirdYear
16000000 usd
CY2023Q1 us-gaap Contractual Obligation Due In Fourth Year
ContractualObligationDueInFourthYear
24000000 usd
CY2023Q1 soun Contractual Obligation To Be Paid After Year Four
ContractualObligationToBePaidAfterYearFour
24000000 usd
CY2023Q1 us-gaap Contractual Obligation
ContractualObligation
94250000 usd
CY2023Q1 us-gaap Restructuring And Related Cost Number Of Positions Eliminated Period Percent
RestructuringAndRelatedCostNumberOfPositionsEliminatedPeriodPercent
0.40
CY2023Q1 us-gaap Restructuring And Related Cost Number Of Positions Eliminated
RestructuringAndRelatedCostNumberOfPositionsEliminated
180 employee
CY2023Q1 us-gaap Restructuring And Related Cost Expected Cost1
RestructuringAndRelatedCostExpectedCost1
3800000 usd
CY2023Q1 us-gaap Restructuring Costs
RestructuringCosts
3600000 usd
CY2023Q1 us-gaap Payments For Restructuring
PaymentsForRestructuring
1300000 usd
CY2023Q1 us-gaap Restructuring And Related Cost Expected Cost Remaining1
RestructuringAndRelatedCostExpectedCostRemaining1
200000 usd
CY2022Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
127785195 shares
CY2022Q2 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
106949326 shares
CY2022Q2 us-gaap Preferred Stock Liquidation Preference Value
PreferredStockLiquidationPreferenceValue
1582562000 usd
CY2022Q2 us-gaap Preferred Stock Value Outstanding
PreferredStockValueOutstanding
279503000 usd
CY2022Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
1000000 shares
CY2022Q2 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2023Q1 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
1000000 shares
CY2022Q2 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
250030433 shares
CY2022Q2 soun Common Stock And Preferred Stock Shares Authorized
CommonStockAndPreferredStockSharesAuthorized
500000000 shares
CY2022Q2 us-gaap Preferred Stock Shares Authorized
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1000000 shares
CY2022Q2 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2023Q1 us-gaap Interest Income Other
InterestIncomeOther
157000 usd
CY2022Q1 us-gaap Interest Income Other
InterestIncomeOther
2000 usd
CY2023Q1 us-gaap Fair Value Adjustment Of Warrants
FairValueAdjustmentOfWarrants
0 usd
CY2022Q1 us-gaap Fair Value Adjustment Of Warrants
FairValueAdjustmentOfWarrants
592000 usd
CY2023Q1 us-gaap Other Expenses
OtherExpenses
63000 usd
CY2022Q1 us-gaap Other Expenses
OtherExpenses
467000 usd
CY2023Q1 us-gaap Other Operating Income Expense Net
OtherOperatingIncomeExpenseNet
94000 usd
CY2022Q1 us-gaap Other Operating Income Expense Net
OtherOperatingIncomeExpenseNet
-1057000 usd
CY2023Q1 us-gaap Net Income Loss
NetIncomeLoss
-26369000 usd
CY2022Q1 us-gaap Net Income Loss
NetIncomeLoss
-25103000 usd
CY2023Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
205082328 shares
CY2023Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
205082328 shares
CY2022Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
69604188 shares
CY2022Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
69604188 shares
CY2023Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.13
CY2023Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.13
CY2022Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.36
CY2022Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.36
CY2022Q1 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
-0.0142
CY2023Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
63452307 shares
CY2022Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
138028209 shares
CY2023Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-26040000 usd
CY2022Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-24751000 usd
CY2023Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
329000 usd
CY2022Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
352000 usd
CY2023Q1 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
-0.0126
CY2022Q1 us-gaap Revenue From Related Parties
RevenueFromRelatedParties
2200000 usd

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