| Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated
financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.
GAAP”) pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). The interim results of
operations are not necessarily indicative of results to be expected for any other interim period or for a full year. In the opinion of
management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation of its financial
position and operating results have been included. These financial statements should be read in conjunction with the Company’s
audited consolidated financial statements and the related notes thereto for the fiscal years ended December 31, 2023 and 2022. Use of Estimates The preparation of unaudited condensed consolidated
financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts
reported and disclosed in the consolidated financial statements and related notes. The most significant estimates and judgments
include allowance for credit losses, the valuation of inventory, useful life of property, plant and equipment and income taxes related
to realization of deferred tax assets and uncertain tax position. Actual amounts could differ from those estimates. Non-controlling interests Non-controlling
interest represents the portion of the net assets of subsidiaries attributable to interests that are not owned or controlled by the Company.
The non-controlling interest is presented in the consolidated balance sheets, separately from equity attributable to the shareholders
of the Company. Non-controlling interest’s operating results are presented on the face of the consolidated statements of income
and comprehensive income as an allocation of the total income for the period between non-controlling
shareholders and the shareholders of the Company. As of June 30, 2024, non-controlling interests amounted to $ nil Functional Currency and Foreign Currency
Translation The Company’s reporting currency is the
United States dollar (“US$”). The Company’s operations are principally conducted through the PRC subsidiaries where
the local currency is the functional currency. Therefore, the functional currency of Kang Fu is Hong Kong dollar and the functional currency
of other subsidiaries is Renminbi (“RMB”). Transactions denominated in currencies other
than the functional currencies are translated into the functional currency of the entity at the exchange rates prevailing on the transaction
dates. Monetary assets and liabilities denominated in currencies other than the applicable functional currency are translated into the
functional currency at the prevailing rates of exchange at the balance sheet date. The resulting exchange differences are reported in
the consolidated statements of income and comprehensive income. The assets and liabilities of the Company are translated at the exchange
spot rate at the balance sheet date, shareholders’ equity is translated at the historical rates and the revenues and
expenses are translated at the average exchange rates for the periods, except that the exchange rate used for translation from Hong Kong
dollar to US$ was 7.8000, a pegged rate determined by the linked exchange rate system in Hong Kong. This pegged rate was used to translate
Kang Fu’s balance sheets, income statement items and cash flow items for both the six months ended June 30, 2024 and 2023. The resulting
translation adjustments are reported under other comprehensive income in the consolidated statements of income and comprehensive income
in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 220,
Comprehensive Income. The following are the exchange rates that were used in translating the Company’s PRC subsidiaries’ financial
statements into the consolidated financial statements:
June
30, 2024 December 31, 2023 June
30, 2023
Period-end spot rate US$1=RMB 7.2672 US$1=RMB 7.0999 US$1=RMB 7.2513
Average rate US$1=RMB 7.2150 US$1=RMB 7.0809 US$1=RMB 6.9283 Certain Risks and Concentration The Company’s financial instruments that
potentially subject the Company to significant concentrations of credit risk consist primarily of cash and receivables. As of June 30,
2024 and December 31, 2023 substantially all the Company’s cash was held in major financial institutions located in Hong Kong and
mainland China, which institutions management considers to be of high credit quality. For the six months ended June 30, 2024, one customer
accounted for approximately 12.40% of the Company’s total revenues. For the six months ended June 30, 2023, two customers accounted
for approximately 18.18% and 10.01% of the Company’s total revenues. As of June 30, 2024, one customer accounted for
approximately 12.20% of the Company’s accounts receivable. As of December 31, 2023, one customer accounted for approximately 15.63%
of the Company’s accounts receivable. For the six months ended June 30, 2024, one supplier
accounted for approximately 13.19% of the Company’s total purchases. For the six months ended June 30, 2023, one supplier accounted
for approximately 14.73% of the Company’s total purchases. Fair Value Measurement Fair value is the price that would be received
from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company
considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants
would use when pricing the asset or liability. The Company adopted the guidance of Accounting
Standards Codification (“ASC”) 820 for fair value measurements which clarifies the definition of fair value, prescribes methods
for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:
Level 1: Inputs
are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.
Level 2: Inputs
are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets
and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated
by observable market data.
Level 3: Inputs
are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would
use in pricing the asset or liability based on the best available information. The Company’s financial instruments include
cash, accounts receivable, bank acceptance receivables, due from related parties, accounts payable, other liabilities and accrued expenses
and short-term bank borrowings. The carrying amounts approximate their fair values due to their short maturities as of June 30, 2024
and December 31, 2023. The
Company elected the fair value option to account for its convertible loans. The Company engaged an independent valuation firm to perform
the valuation. The convertible loans are classified as level 3 instruments as the valuation was determined based on unobservable inputs
which are supported by little or no market activity and reflect the Company’s own assumptions in measuring fair value. Significant
estimates used in developing the fair value of the convertible loans include time to maturity, historical volatility of the Company’s
share prices, risk-free interest rate and discount rate. Refer to Note 8 for additional information. As
the inputs used in developing the fair value for level 3 instruments are unobservable, and require significant management estimation,
a change in these inputs could result in a significant change in
the fair value measurement. The following is a reconciliation of the beginning
and ending balances for convertible loans measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
as of June 30, 2024.
June 30, 2024
Opening balance $ -
New convertible loans issued 4,985,000
Loss on change in fair value of convertible loan 514,862
Conversion of convertible loans (1,438,879 )
Total $ 4,060,983 Accounts Receivable and Allowance for Credit
Losses In June 2016, the FASB issued ASU No. 2016-13,
“Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires
the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net
income. The Company adopted this guidance effective January 1, 2020. ASC 326 introduces an approach based on expected losses to estimate
the allowance for credit losses, which replaces the previous incurred loss impairment model. The adoption of this guidance did not have
a material impact on the Company’s consolidated financial statements. Accounts receivable are recognized and carried at original
invoiced amount less an estimated allowance for credit losses. The Company estimates the allowance for credit losses based on an analysis
of the aging of accounts receivable, assessment of collectability, including any known or anticipated economic conditions, customer-specific
circumstances, recent payment history and other relevant factors. The Company’s provision for credit losses
related to accounts receivable were $1,131,267 and $ nil Inventories Inventories are valued using the lower of cost
or net realizable value. Cost is principally determined using the weighted-average method. Manufactured inventories included cost of
materials, labor and overhead expenses. The Company records adjustments to inventory for excess quantities, obsolescence, or impairment,
when appropriate, to reflect inventory at net realizable value. These adjustments are based upon a combination of factors including current
sales volume, market conditions, lower of cost or market analysis and expected realizable value of the inventory. There were no write-downs recognized on inventories
as of June 30, 2024 and December 31, 2023. Intangible Assets Intangible assets are non-monetary assets without
physical substance. These items are initially measured at cost and subsequently carried at cost less any accumulated amortization and
impairment losses. Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated useful lives.
Amortization of finite-lived intangible assets is computed using the straight-line method over the estimated useful lives, which is as
follows: Category Useful Land use rights 50 years Patent 5 years Trademark 10 years Impairment of Long-Lived Assets The Company accounts for impairment of long-lived
assets in accordance with Accounting Standards Codification (“ASC”) 360, Property, Plant and Equipment Investment In accordance with Financial Accounting Standards
Board (“FASB”) ASC 321, “Investment-Equity Securities,” the Company accounts for non-marketable securities on
a prospective basis. Equity investments that do not have readily determinable fair values and do not qualify for the net asset value
practical expedient are eligible for the measurement alternative. On March 3, 2011, Yada invested in Yangzhou Juyuan
Guarantee Co., Ltd (“Juyuan”) and obtained a 12% equity interest of Juyuan. Since the Company does not have significant influence
on the private company which does not have readily determinable fair values, the Company has elected the measurement alternative defined
as cost, less impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical
or a similar investment of the Company. The investment is reviewed periodically to determine if its value has been impaired and adjustments
are recorded as necessary in profit or loss for the period. On January 5, 2023, majority shareholder of Juyuan purchased 5% equity interest
of Juyuan from Yada for a consideration of $353,062 (RMB 2.5 million), leaving Yada with a 7% equity interest. Investments in entities in which the Company
can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of
accounting in accordance with ASC 323, Investments-Equity Method and Joint Ventures (“ASC 323”). Under the equity method,
the Company initially records its investment at cost and the difference between the cost of the equity investee and the amount of the
underlying equity in the net assets of the equity investee is accounted for as if the investee were a consolidated subsidiary. The share
of earnings or losses of the investee are recognized in the consolidated statements of comprehensive loss. Equity method adjustments
include the Company’s proportionate share of investee income or loss, adjustments to recognize certain differences between the
Company’s carrying value and its equity in net assets of the investee at the date of investment, impairments, and other adjustments
required by the equity method. The Company assesses its equity investment for other-than-temporary impairment by considering factors
as well as all relevant and available information including, but not limited to, current economic and market conditions, the operating
performance of the investees including current earnings trends, the general market conditions in the investee’s industry or geographic
area, factors related to the investee’s ability to remain in business, such as the investee’s liquidity, debt ratios, and
cash burn rate and other company-specific information. Investments in equity securities without readily
determinable fair values are measured at cost minus impairment adjusted by observable price changes in orderly transactions for the identical
or a similar investment of the same issuer. These investments are measured at fair value on a nonrecurring basis when there are events
or changes in circumstances that may have a significant adverse effect. An impairment loss is recognized in the consolidated statements
of comprehensive loss equal to the amount by which the carrying value exceeds the fair value of the investment. Prior to the adoption
of ASU 2016-01 on January 1, 2019, these investments were accounted for using the cost method of accounting, measured at cost less other-than-temporary
impairment. On December 1, 2022, Huadong invested RMB 40
million into Jiangsu Zhongxiangxin International Science and Technology Innovation Park Co., Ltd. (“Zhongxiangxin”) and obtained
25% ownership interest of Zhongxiangxin. Zhongxiangxin manufactures and sells medical materials in the PRC. The Company accounted for
the investments using the equity method, because the Company has significant influence but does not own a majority equity interest or
otherwise exercise control over the equity investee. Under the equity method, the Company adjusts the carrying amount of the investment
and recognizes investment income or loss for its share of the earnings or loss of the investee after the date of investment. When the
Company’s share of losses in the equity investee equals or exceeds its interest in the equity investee, the Company does not recognize
further losses, unless the Company has incurred obligations or made payments or guarantees on behalf of the equity investee. For the
six months ended June 30, 2024 and 2023, the investment gain from Zhongxiangxin was $3,747 and $1,632, respectively. On February 26, 2024, the Company
transferred 45% equity interest in Hainan Guoxie from Kangfu to Huadong, and the remaining 10% equity interest was sold to a third
party, Yangzhou Boxin Medical Equipment Co., Ltd. (“Boxin”) in exchange for $637,940 (RMB4.4 million) in consideration.
After the transaction, the Company no longer controls Hainan Guoxie, thus the Company deconsolidated Hainan Guoxie upon the
completion of the transaction. A disposition gain of $21,304 (RMB153,700) resulting from disposal of the 10% equity interest was
included in line item “Other (income) expense, net” of Statements of Income and Comprehensive Income. $ nil After the transaction, the Company accounted for
the investments using the equity method, because the Company has significant influence but does not own a majority equity interest or
otherwise exercise control over the equity investee. Under the equity method, the Company adjusts the carrying amount of the investment
and recognizes investment income or loss for its share of the earnings or loss in the investee after the date of investment. When the
Company’s share of losses in the equity investee equals or exceeds its interest in the equity investee, the Company does not recognize
further losses unless the Company has incurred obligations or made payments or guarantees on behalf of the equity investee. For the six
months ended June 30, 2024 and 2023, the investment gain from Guoxie was $3,187 and $ nil The Company continually reviews its investments
in equity investees to determine whether a decline in fair value below the carrying value is other-than-temporary. The primary factors
the Company considers in its determination include the financial condition, operating performance and the prospects of the equity investee;
other company specific information such as recent financing rounds; the geographic region, market and industry in which the equity investee
operates; and the length of time that the fair value of the investment is below its carrying value. If the decline in fair value is deemed
to be other-than-temporary, the carrying value of the equity investee is written down to fair value. For the for the six months ended June 30, 2024
and 2023, no impairment indicators were identified and no loss related to revaluation of its investment in the private company was recorded. Related Parties Parties are considered to be related to the Company
if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with
the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal
owners of the Company and its management, and other parties with which the Company may deal with if one party controls or can significantly
influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from
fully pursuing its own separate interests. The Company discloses all significant related party transactions. Revenue Recognition Effective January 1, 2018, the Company adopted
ASC Topic 606 using the modified retrospective adoption method. Based on the requirements of ASC Topic 606, revenue is recognized when
control of the promised goods or services is transferred to the customers in an amount that reflects the consideration the Company expects
to be entitled to receive in exchange for those goods or services. The Company primarily sells its products to hospitals and medical
equipment companies. Revenue is recognized when the following 5-step revenue recognition criteria are met:
1) Identify the contract with
a customer
2) Identify the performance obligations in the contract
3) Determine the transaction price
4) Allocate the transaction price
5) Recognize revenue when or as the entity satisfies a
performance obligation Revenue from product sales is recognized at the
point in time control of the products is transferred, generally upon customer receipt based upon the standard contract terms. Shipping
and handling activities are considered to be fulfillment activities rather than promised services and are not, therefore, considered
to be separate performance obligations. The Company’s sales terms provide no right of return outside of a standard quality policy
and returns are generally not significant. Payment terms for product sales are generally set at 90 to 180 days after the consideration
becomes due and payable. Revenue Disaggregation The Company’s disaggregated revenues are
represented by two categories which are type of goods and type of customers. Type of Goods
For The Six Months Ended
2024 2023
US$ US$
Self-Manufactured Products 20,693,991 23,435,544
Resales of Sourced Disposable Medical Devices from Third Party Manufacturers 24,649,707 24,754,532
Total Revenue 45,343,698 48,190,076 Type of Customers
For The Six Months Ended
2024 2023
US$ US$
Direct sales 3,370,827 4,305,506
Distributors 41,972,871 43,884,570
Total Revenue 45,343,698 48,190,076 Earnings per Ordinary Share Earnings (loss) per ordinary share is calculated
in accordance with ASC 260, Earnings per Share Comprehensive Income (Loss) ASC 220, Comprehensive Income (“ASC 220”)
establishes rules for reporting and display of comprehensive income and its components. ASC 220 requires that unrealized gains and losses
on the Company’s foreign currency translation adjustments be included in comprehensive income (loss). Advertising Costs The Company’s advertising costs are expensed
as incurred. Advertising expenses are included in selling expenses in the accompanying consolidated statements of income and comprehensive
income. Advertising expenses were $859 and $8,275 for the six months ended June 30, 2024, and 2023, respectively. Research and Development Costs Research and development expenses are expensed
as incurred. Research and development expenses were $ 1,459,945 and $1,460,376 for the six months ended June 30, 2024, and 2023, respectively. Income Tax Current income taxes are provided on the basis
of net profit for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income
tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred
income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in
the consolidated financial statements, net operating loss carry forwards and credits. Deferred tax assets are reduced by a valuation
allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will
not be realized. Current income taxes are provided in accordance with the laws of the relevant taxing authorities. Deferred tax
assets and liabilities are measured using enacted rates expected to apply to taxable income in which temporary differences are
expected to be reversed or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in the
statement of comprehensive income in the period of the enactment of the change. The Company considers positive and negative evidence
when determining whether a portion or all of its deferred tax assets will more likely than not be realized. This assessment considers,
among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration
of statutory carry-forward periods, its experience with tax attributes expiring unused, and its tax planning strategies. The ultimate
realization of deferred tax assets is dependent upon its ability to generate sufficient future taxable income within the carry-forward
periods provided for in the tax law and during the periods in which the temporary differences become deductible. When assessing the realization
of deferred tax assets, the Company has considered possible sources of taxable income including (i) future reversals of existing
taxable temporary differences, (ii) future taxable income exclusive of reversing temporary differences and carryforwards, (iii) future
taxable income arising from implementing tax planning strategies, and (iv) specific known trend of profits expected to be reflected
within the industry. The Company recognizes a tax benefit associated
with an uncertain tax position when, in its judgment, it is more likely than not that the position will be sustained upon examination
by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, the Company initially and subsequently
measures the tax benefit as the largest amount that the Company judges to have a greater than 50% likelihood of being realized upon ultimate
settlement with a taxing authority. The Company’s liability associated with unrecognized tax benefits is adjusted periodically
due to changing circumstances, such as the progress of tax audits, case law developments and new or emerging legislation. Such adjustments
are recognized entirely in the period in which they are identified. The Company’s effective tax rate includes the net impact of
changes in the liability for unrecognized tax benefits and subsequent adjustments as considered appropriate by management. The Company
classifies interest and penalties recognized on the liability for unrecognized tax benefits as income tax expense. Segment Reporting FASB 280, “Segment Reporting,” establishes
standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure
as well as information of the Company’s business segments, geographical areas, segments and major customers. The Company uses the
“management approach” in determining reportable operating segments. The management approach considers the internal organization
and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as
the source for determining the Company’s reportable segments. The chief operating decision maker is the Company’s president
and Chief Executive Officer (“CEO”). Management, including the chief operating decision maker, reviews operating results
of different products at revenue level with no allocation of operating costs. Consequently, based on management’s assessment, the
Company has determined that it has only one operating segment as defined by FASB ASC 280. The Company has disclosed the type of revenue by government category
as follows.
June 30, 2024 June 30, 2023
US$ US$
Category Produced Purchased Total Produced Purchased Total
Class I 3,499,514 5,532,267 9,031,781 3,561,156 4,462,704 8,023,860
Class II 15,812,678 17,118,859 32,931,537 17,313,377 17,761,970 35,075,347
Class III 313,103 628,028 941,131 524,802 873,575 1,398,377
Others 1,068,696 1,370,553 2,439,249 2,036,209 1,656,283 3,692,492
Total 20,693,991 24,649,707 45,343,698 23,435,544 24,754,532 48,190,076 Class I, II, and III medical devices are defined
by the National Medical Products Administration of China according to their risk levels under the Regulation on the Supervision and Administration
of Medical Devices (2021 Revision), Article 6 as follows:
● “Class I Medical
Devices” means medical devices with low risks, whose safety and effectiveness can be ensured through routine administration.
● “Class II Medical
Devices” means medical devices with moderate risks, which shall be strictly controlled and administered to ensure their safety
and effectiveness.
● “Class III Medical
Devices” means medical devices with relatively high risks, which shall be strictly controlled and administered through special
measures to ensure their safety and effectiveness. Furthermore, the Company has disclosed revenue by major product type
included in each government category.
June 30, 2024 June 30, 2023
Category Products US$ US$
Class I Eye drops bottle 671,889 1,073,853
Oral medicine bottle 1,296,401 1,830,363
Anal bag 1,348,431 849,099
Other Class I 5,715,060 4,270,545
Subtotal-Class I 9,031,781 8,023,860
Class II Masks 67,144 47,946
Identification tape 6,215,605 5,494,306
Disposable medical brush 4,348,913 4,481,601
Gynecological inspection kits 3,690,332 3,022,727
Surgical kit 1,221,656 2,206,201
Medical brush 2,466,810 2,809,448
Medical kit 856,880 983,584
Other Class II 14,064,197 16,029,534
Subtotal-Class II 32,931,537 35,075,347
Class III Electronic pump 89,329 138,751
Anesthesia puncture kit 144,757 229,616
Disposable infusion pump 52,857 113,335
Infusion pump 91,687 178,461
Electronic infusion pump 970 330
Laparoscopic trocar 4,923 38
Other Class III 556,608 737,846
Subtotal-Class III 941,131 1,398,377
Others 2,439,249 3,692,492
Total 45,343,698 48,190,076 For the six months ended June 30, 2024, and 2023,
revenues and assets within the PRC contributed to more than 99.0% of the Company’s total revenues and assets. Recent Accounting Pronouncements In June 2022, the FASB issued ASU 2022-03 Fair
Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The update clarifies
that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security
and, therefore, is not considered in measuring fair value. The update also clarifies that an entity cannot, as a separate unit of account,
recognize and measure a contractual sale restriction. The update also requires certain additional disclosures for equity securities subject
to contractual sale restrictions. For public business entities, the amendments in this Update are effective for fiscal years beginning
after December 15, 2023, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal
years beginning after December 15, 2024, and interim periods within those fiscal years. Early adoption is permitted for both interim
and annual financial statements that have not yet been issued or made available for issuance. As an emerging growth company, the standard
is effective for the Company for the year ended December 31, 2025. The Company is in the process of evaluating the impact of the new
guidance on its consolidated financial statements. In December 2023, the Financial Accounting Standards
Board (“FASB”) issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU
2023-09”). This ASU requires that public business entities must annually “(1) disclose specific categories in the rate reconciliation
and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items
is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income
tax rate).” A public entity should apply the amendments in ASU 2023-09 prospectively to all annual periods beginning after December
15, 2024. The Company is currently evaluating these new disclosure requirements and does not expect the adoption to have a material impact. On November 27, 2023, the FASB issued ASU 2023-07.
The amendments improve reportable segment disclosure requirements. Main provisions include: (1) significant segment expenses—public
entities are required to disclose significant segment expenses by reportable segment if they are regularly provided to the CODM and included
in each reported measure of segment profit or loss; (2) other segment items—public entities are required to disclose other segment
items by reportable segment. Such a disclosure would constitute the difference between reported segment revenues less the significant
segment expenses (disclosed) less reported segment profit or loss; (3) multiple measures of a segment’s profit or loss—public
entities may disclose more than one measure of segment profit or loss used by the CODM, provided that at least one of the reported measures
includes the segment profit or loss measure that is most consistent with GAAP measurement principles; (4) CODM-related disclosures—disclosure
of the CODM’s title and position is required on an annual basis, as well as an explanation of how the CODM uses the reported measure(s)
and other disclosures. (5) entities with a single reportable segment—public entities must apply all of the ASU’s disclosure
requirements, as well as all existing segment disclosure and reconciliation requirements in ASC 280; (6) recasting of prior-period segment
information to conform to current-period segment information—recasting is required if segment information regularly provided to
the CODM is changed in a manner that causes the identification of significant segment expenses to change. The amendments in ASU 2023-07
are effective for all public entities for fiscal years beginning after December 15, 2023. The adoption of this guidance did not have
a material impact on the Company’s unaudited condensed consolidated financial statements |
