/PRNewswire/ — ZK International Group Co., Ltd. (ZKIN) (“ZK International” or the “Company”), a designer, engineer, manufacturer, and supplier of patented high-performance stainless steel and carbon steel pipe products primarily used for water and gas supplies, today announced its audited financial results for the fiscal year ended September 30, 2023.
Financial Highlights for the Fiscal Year 2023
| | For the Fiscal Year Ended
September 30, |
($ millions, except per share data) | | 2023 | | | 2022 | | | % Change |
Revenue | | $ | 111.60 | | | $ | 102.39 | | | | 8.99 % |
Gross profit | | $ | 1.30 | | | $ | 7.60 | | | | -82.93 % |
Gross margin | | | 1.16 % | | | | 7.42 % | | | | -6.26
percentage points |
Loss from operations | | $ | (60.44) | | | $ | (3.96) | | | | -1424.58 % |
Operating loss margin | | | (54.16 %) | | | | (3.87 %) | | | | -50.29
percentage
points |
Net loss attributable to ZK | | | | | | | | | | | |
International | | $ | (61.06) | | | $ | (6.08) | | | | -904.06 % |
Diluted loss per share | | $ | (1.94) | | | $ | (0.21) | | | | -835.72 % |
Net book value per share | | $ | 0.80 | | | $ | 2.80 | | | | -71.43 % |
Revenue
Revenues increased by $9.21 million or 8.99%, to $111.60 million for the year ended September 30, 2023 from $102.39 million for the year ended September 30, 2022. The increase in revenues was primarily driven by the following factors:
1) During the fiscal year 2023, the decline of real estate market in Chinaespecially the collapse of Evergrande, has set pressure on the steel pipe market. To strengthen the cash flow and expand our market share, we lowered our weighted average selling price (“ASP”) to boost our sales volume. However, we have observed the recovery of real estate market and increase of market demand for the 2024 fiscal year, we have increased ASP for the 2024 fiscal year.
2) During 2023 fiscal year, the average selling price of electrolytic nickel increased by 33.33% from RMB 113,716 per ton in fiscal year 2022 to RMB 151,619 in fiscal year 2023; the average selling price of steel strip decreased by 1.82% from RMB 20.3 per kilogram in fiscal year 2022 to RMB 19.93 in fiscal year 2023; the average selling price of steel pipe decreased by 20.25% from RMB 140.26 per piece in fiscal year 2022 to RMB 111.86 in fiscal year 2023; the average selling price of pipe fittings decreased by 4.86% from RMB 22.65 each in fiscal year 2022 to RMB 21.55 in fiscal year 2023.
3) Due to the decrease of product prices, we had an overall increase in sales volume. The sales volume of steel strip increased by 87.73% from 753.91 tons in fiscal year 2022 to 1,415.29 tons in fiscal year 2023; Sales volume of pipes increased by 0.42% from 592,919 in fiscal year 2022 to 595,395 in fiscal year 2023; The sales volume of pipe fittings increased by 29.28% from 7,103,894 pieces in fiscal year 2022 to 9,183,690 pieces in fiscal year 2023.
Gross Profit
Our gross profit decreased by $6.30 million or 82.93% to $1.30 million for the year ended September 30, 2023 from $7.60 million for the year ended September 30, 2022. Gross profit margin was 1.16% for the year ended September 30, 2023as compared to 7.42% for the year ended September 30, 2022. The decrease of gross profit was primarily due to decreased weighted average selling prices while our cost of raw material remained stable. However, we have observed the recovery of real estate market and increase of market demand for the 2024 fiscal year, we have increased ASP for the 2024 fiscal year which will improve our gross margin.
Loss from Operations
Loss from operations was $60.44 millioncompared to loss from operations of $3.96 million for the prior fiscal year. The increase of operational loss was mainly due to the one-off asset impairment cost of intangible asset and long-term investment, and stock-based compensation incurred during 2023 fiscal year for the expenses related to our new business operations and subsidiaries.
During 2023 fiscal year, the Company recorded asset impairment cost of $53.20 millionprimarily for the write off of its long-term investment in CG Malta and the software platforms, including xSigma Trading, MaximNFT, and the Defi Exchange.
For the 2021 and 2022 fiscal years, CG Malta achieved high growth with its online gaming services launched in more than 10 states in US with high growth rate of Real Money Handle and First-Time Depositor. However, during the 2023 fiscal year, the competition of gaming market has been increasingly intense. Market bullishness and valuations peaked in early-2023 and declined rapidly from there, preventing CG Malta from raising further capital to execute its business plan. For the best interest of the Company’s shareholder, the Company decided to stop funding CG Malta and instead demanded the management team of CG Malta took active measures to achieve organic growth and healthy cash flow. However, the business was unable to raise the capital required to fund the business plan, and therefore the shareholders of CG Malta passed shareholder resolution on November 27, 2023 to cease operations of CG Malta and wind up the entity. For the year ended September 30, 2023the Company has written off the investment in CG Malta.
During 2023 fiscal year, the Company evaluated the recoverability of the three platforms, including Defi Exchange, xSigma Trading, and MaximNFT and concluded that the carrying value of the three platforms may not be recoverable as it projects that the platform is likely to have continuing losses and it’s more likely than not this platform will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. For the year ended September 30, 2023the Company wrote off the carrying value of the three platforms.
Net Loss Attributable to ZK International
Net loss attributable to ZK International was $61.06 millionor net loss of $1.94 per share. This compared to net loss attributable to ZK International of $6.08 millionor $0.21 per share, for the prior fiscal year.
Net book value
Net book value per share was $0.80 as of September 30, 2023compared to $2.80 as of September 30, 2022.
Mr. Jiancong Huang, Chairman of ZK International, commented, “while ZK International declared a net loss of $61 million for the year, this was largely due to a series of one-time write-offs related to various non-core investments. These write-offs are part of the company’s broader strategy to streamline operations and focus on high-growth opportunities, ensuring a more robust financial foundation for the future.”
Mr. Huang continued, “While this year’s financial results reflect certain challenges, I am proud of the progress we have made in growing our revenue and strengthening our core business in China. The strategic decisions we’ve taken to write off certain investments position us for a more focused and profitable future. We remain committed to enhancing shareholder value and driving long-term growth for ZK International. As ZK International moves forward, the company remains confident in its ability to navigate the evolving market landscape and deliver sustainable value to its shareholders.”
About ZK International Group Co., Ltd.
ZK International Group Co., Ltd. is a China-based designer, engineer, manufacturer, and supplier of patented high-performance stainless steel and carbon steel pipe products that require sophisticated water or gas pipeline systems. The Company owns 33 patents, 21 trademarks, 2 Technical Achievement Awards, and 10 National and Industry Standard Awards. ZK International is Quality Management System Certified (ISO9001), Environmental Management System Certified (ISO1401), and a National Industrial Stainless Steel Production Licensee that is focused on supplying steel piping for the multi-billion dollar industries of Gas and Water sectors. ZK has supplied stainless steel pipelines for over 2,000 projects, including the Beijing National Airport, the “Water Cube”, and “Bird’s Nest”, which were venues for the 2008 Beijing Olympics.
Emphasizing superior properties and durability of its steel piping, ZK International is providing a solution for the delivery of high quality, highly sustainable, environmentally sound drinkable water not only to the China market but also to international markets such as Europe, East Asiaand Southeast Asia.
For more information please visitwww.ZKInternationalGroup.com. Additionally, please follow the Company onTwitter,Facebook,YouTubeandWeibo. For further information on the Company’s SEC filings please visitwww.sec.gov.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate” or “continue” or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements are not guarantee of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict and many of which are beyond the control of ZK International. Actual results may differ from those projected in the forward-looking statements due to risks and uncertainties, as well as other risk factors that are included in the Company’s filings with the U.S. Securities and Exchange Commission. Although ZK International believes that the as sumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by ZK International or any other person that their objectives or plans will be achieved. ZK International does not undertake any obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
ZK INTERNATIONAL GROUP CO., LTD |
CONSOLIDATED BALANCE SHEETS |
(IN U.S. DOLLARS) |
|
| | As of September 30, |
| | 2023 | | 2022 |
Assets | | | | | | |
Current assets | | | | | | |
Cash and cash equivalents | | $ | 4,994,411 | | $ | 7,515,147 |
Restricted cash | | | 50,995 | | | 101,992 |
Short-term Investment | | | 48,145 | | | 915,616 |
Accounts receivable, net of allowance for doubtful accounts and provision for expected credit loss
of $6,617,485 and $255,322, respectively | | | 14,967,186 | | | 28,362,933 |
Notes receivable | | | 54,825 | | | 49,611 |
Prepayment, deposit and other receivable – current | | | 383,413 | | | 2,360,539 |
Inventories | | | 17,937,425 | | | 21,141,501 |
Advance to suppliers | | | 4,810,044 | | | 6,322,592 |
Total current assets | | | 43,246,444 | | | 66,769,931 |
Property, plant and equipment, net | | | 7,836,017 | | | 7,124,587 |
Right-of-use asset – Operating lease | | | 43,840 | | | 30,998 |
Intangible assets, net | | | 1,437,384 | | | 11,415,451 |
Deferred tax assets | | | — | | | 320,164 |
Prepayment, deposit and other receivable – Non-current | | | 292,070 | | | — |
Long-term prepayment | | | — | | | 10,447,395 |
Long-term accounts receivable | | | 5,527,682 | | | 7,522,188 |
Long-term investment | | | 285,540 | | | 25,292,866 |
TOTAL ASSETS | | $ | 58,668,977 | | $ | 128,923,580 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | |
Current liabilities: | | | | | | |
Accounts payable | | $ | 2,611,220 | | $ | 10,066,758 |
Accrued expenses and other current liabilities | | | 4,964,893 | | | 6,949,772 |
Operating lease liability – current | | | 21,749 | | | 10,754 |
Accrued payroll and welfare | | | 1,918,415 | | | 1,880,377 |
Advance from customers | | | 821,694 | | | 1,758,800 |
Due to related parties | | | 1,111,001 | | | 2,052,403 |
Convertible debentures | | | 4,011,224 | | | 3,352,311 |
Bank borrowings – current | | | 9,388,706 | | | 16,257,820 |
Notes payables | | | 41,118 | | | 702,889 |
Income tax payable | | | 669 | | | 817,059 |
Total current liabilities | | | 24,890,689 | | | 43,848,943 |
Operating lease liability – non-current | | | 11,811 | | | 10,256 |
Bank borrowings – non-current | | | 8,527,686 | | | — |
TOTAL LIABILITIES | | $ | 33,430,186 | | $ | 43,859,199 |
| | | | | | |
COMMITMENTS AND CONTINGENCIES | | | — | | | — |
| | | | | | |
Equity | | | | | | |
Common stock, no par value, 50,000,000 shares authorized, 32,992,740 and 30,392,940 shares
issued and outstanding, respectively | | | | | | |
Additional paid-in capital | | | 72,886,898 | | | 70,872,765 |
Statutory surplus reserve | | | 3,176,556 | | | 3,176,556 |
Subscription receivable | | | (125,000) | | | (125,000) |
Retained earnings (Deficits) | | | (47,666,657) | | | 13,394,137 |
Accumulated other comprehensive loss | | | (3,190,985) | | | (2,640,753) |
Total equity attributable to ZK International Group Co., Ltd. | | | 25,080,812 | | | 84,677,705 |
Equity attributable to non-controlling interests | | | 157,980 | | | 386,676 |
Total equity | | | 25,238,792 | | | 85,064,381 |
TOTAL LIABILITIES AND EQUITY | | $ | 58,668,977 | | $ | 128,923,580 |
ZK INTERNATIONAL GROUP CO., LTD |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
(IN U.S. DOLLARS, EXCEPT SHARE DATA) |
|
| | For the year ended September 30, |
| | 2023 | | 2022 | | 2021 |
Revenues | | $ | 111,599,686 | | $ | 102,391,636 | | $ | 99,407,217 |
Cost of sales | | | (110,303,270) | | | (94,796,037) | | | (92,936,029) |
Gross profit | | | 1,296,416 | | | 7,595,599 | | | 6,471,188 |
| | | | | | | | | |
Operating expenses: | | | | | | | | | |
Selling and marketing expenses | | | 2,117,810 | | | 2,380,429 | | | 3,117,906 |
General and administrative expenses | | | 5,144,340 | | | 5,421,575 | | | 5,772,710 |
Asset impairment loss | | | 53,203,517 | | | 2,771,019 | | | — |
Research and development costs | | | 1,274,337 | | | 987,186 | | | 1,234,161 |
Total operating expenses | | | 61,740,004 | | | 11,560,209 | | | 10,124,777 |
| | | | | | | | | |
Operating loss | | | (60,443,588) | | | (3,964,610) | | | (3,653,589) |
| | | | | | | | | |
Other income (expenses): | | | | | | | | | |
Interest expenses | | | (1,583,734) | | | (3,451,665) | | | (1,196,648) |
Interest income | | | 36,699 | | | 109,290 | | | 13,733 |
Income on investment | | | — | | | — | | | 50,649 |
Other income (expense), net | | | 240,378 | | | (88,125) | | | 431,438 |
Total other expenses, net | | | (1,306,657) | | | (3,430,500) | | | (700,828) |
| | | | | | | | | |
Loss before income taxes | | | (61,750,245) | | | (7,395,110) | | | (4,354,417) |
| | | | | | | | | |
Income tax recovery | | | 459,855 | | | 1,340,844 | | | 552,146 |
| | | | | | | | | |
Net loss | | $ | (61,290,390) | | $ | (6,054,266) | | $ | (3,802,271) |
Net (loss) income attributable to non-controlling interests | | | 229,596 | | | (27,147) | | | 2,757 |
| | | | | | | | | |
Net loss attributable to ZK International Group Co., Ltd. | | | (61,060,794) | | | (6,081,413) | | $ | (3,799,514) |
| | | | | | | | | |
Net loss | | | (61,290,390) | | $ | (6,054,266) | | $ | (3,802,271) |
| | | | | | | | | |
Other comprehensive income (loss): | | | | | | | | | |
Foreign currency translation adjustment | | | (549,332) | | | (5,504,385) | | | 2,423,439 |
| | | | | | | | | |
Total comprehensive loss | | $ | (61,839,722) | | $ | (11,558,651) | | $ | (1,378,832) |
Comprehensive loss (income) attributable to non-controlling interests | | | 228,696 | | | (62,109) | | | (14,773) |
Comprehensive loss attributable to ZK International Group Co., Ltd. | | $ | (61,611,026) | | $ | (11,620,760) | | $ | (1,393,605) |
| | | | | | | | | |
Basic and diluted loss per share | | | | | | | | | |
Basic | | $ | (1.94) | | $ | (0.21) | | $ | (0.17) |
Diluted | | | (1.94) | | | (0.21) | | | (0.17) |
Weighted average number of shares outstanding | | | | | | | | | |
Basic | | | 31,445,962 | | | 29,305,828 | | | 21,873,594 |
Diluted | | | 31,445,962 | | | 29,431,781 | | | 22,633,819 |
ZK INTERNATIONAL GROUP CO., LTD |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY |
FOR THE YEARS ENDED SEPTEMBER 30, 2023, 2022 AND 2021 |
(IN U.S. DOLLARS, EXCEPT SHARE DATA) |
|
| | Shares | | Additional paid-in capital | | Subscription Receivable | | Statutory surplus reserve | Retained earnings
(deficits) | | Accumulated other comprehensive income (loss) | | Non- controlling interests | | Total equity |
Balance at
September 30, 2020 | | 16,558,037 | | 18,049,630 | | — | | 2,904,699 | 23,546,921 | | 492,685 | | 309,794 | | 45,303,729 |
| | | | | | | | | | | | | | | |
Issuance of common stock,
net of offering costs | | 7,080,762 | | 24,884,560 | | (125,000) | | | | | | | | | 24,759,560 |
Common stock issued in
connection with
conversion of convertible
notes | | 4,374,176 | | 11,443,067 | | | | | | | | | | | 11,443,067 |
Issuance of common stock
related to exercise of
warrants | | 355,202 | | 1,345,056 | | | | | | | | | | | 1,345,056 |
Stock-based compensation | | 550,000 | | 9,542,783 | | | | | | | | | | | 9,542,783 |
Unearned Compensation | | | | (1,891,011) | | | | | | | | | | | (1,891,011) |
Foreign currency
translations | | | | | | | | | | | 2,405,909 | | 17,530 | | 2,423,439 |
Net loss | | | | | | | | 9,903 | (3,809,417) | | | | (2,757) | | (3,802,271) |
Balance at September 30, 2021 | | 28,918,177 | | 63,374,085 | | (125,000) | | 2,914,602 | 19,737,504 | | 2,898,594 | | 324,567 | | 89,124,352 |
Stock incentive issuance | | 1,407,200 | | 1,688,640 | | | | | | | | | | | 1,688,640 |
Stock issued in connection
with conversion of
convertible notes | | 67,563 | | 116,781 | | | | | | | | | | | 116,781 |
Fair value change due to
convertible notes
extension | | | | 678,782 | | | | | | | | | | | 678,782 |
Stock-based compensation | | | | 5,603,615 | | | | | | | | | | | 5,603,615 |
Unearned Compensation | | | | (589,138) | | | | | | | | | | | (589,138) |
Foreign currency
translations | | | | | | | | | | | (5,539,347) | | 34,962 | | (5,504,385) |
Net loss | | | | | | | | 261,954 | (6,343,367) | | | | 27,147 | | (6,054,266) |
Balance at September 30,
2022 | | 30,392,940 | | 70,872,765 | | (125,000) | | 3,176,556 | 13,394,137 | | (2,640,753) | | 386,676 | | 85,064,381 |
Stock-based compensation | | 2,599,800 | | 1,839,733 | | | | | | | | | | | 1,839,733 |
Unearned Compensation | | | | 174,400 | | | | | | | | | | | 174,400 |
Foreign currency
translations | | | | | | | | | | | (550,232) | | 900 | | (549,332) |
Net loss | | | | | | | | | (61,060,794) | | | | (229,596) | | (61,290,390) |
Balance at
September 30, 2023 | | 32,992,740 | | 72,886,898 | | (125,000) | | 3,176,556 | (47,666,657) | | (3,190,985) | | 157,980 | | 25,238,792 |
ZK INTERNATIONAL GROUP CO., LTD |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(IN U.S. DOLLARS) |
|
| | For the year ended September 30, |
| | 2023 | | 2022 | | 2021 |
Cash Flows from Operating Activities: | | | | | | | | | |
Net loss | | $ | (61,290,390) | | $ | (6,054,266) | | $ | (3,802,271) |
Adjustments to reconcile net income to net cash used in operating activities: | | | | | | | | | |
Depreciation expense | | | 677,275 | | | 672,368 | | | 568,038 |
Amortization expense | | | 298,431 | | | 830,481 | | | 481,763 |
Right of use assets | | | — | | | — | | | (53,634) |
Bad debt expense and credit loss | | | 17,897,334 | | | 227,837 | | | 92,032 |
Write-off of advance to suppliers | | | — | | | — | | | 108,395 |
Deferred tax expenses | | | 322,897 | | | — | | | 406,064 |
Gain on accounts receivable factoring, net of discount | | | — | | | (1,602,500) | | | — |
Impairment on intangible assets and long-term investment | | | 35,346,769 | | | 2,771,019 | | | — |
Change in unrecognized tax benefits | | | (823,340) | | | (1,428,458) | | | (918,038) |
Stock compensation expense | | | 2,014,133 | | | 2,674,807 | | | 1,351,082 |
Interest expense of convertible notes | | | 658,913 | | | 1,324,510 | | | 210,173 |
Interest expense of financing lease | | | — | | | — | | | 44,458 |
Interest expense of accounts receivable factoring | | | 359,051 | | | 1,151,453 | | | — |
Changes in operating assets and liabilities: | | | | | | | | | |
Accounts receivable | | | 8,165,567 | | | (12,059,620) | | | 5,804,654 |
Other receivables and prepayments | | | 349,612 | | | (260,755) | | | 1,345,520 |
Notes receivable | | | (6,676) | | | (53,853) | | | 201,187 |
Inventories | | | 2,870,541 | | | (2,606,504) | | | 2,021,789 |
Advance to suppliers | | | 1,401,001 | | | 5,493,624 | | | (8,297,301) |
Accounts payable | | | (7,451,608) | | | 8,803,924 | | | (8,662,576) |
Notes payable | | | (666,355) | | | 762,986 | | | (159,823) |
Accrued expenses and other current liabilities | | | (1,918,915) | | | 752,241 | | | 2,428,410 |
Accrued payroll and welfare | | | 130,063 | | | 219,178 | | | 211,632 |
Advance from customers | | | (923,844) | | | (3,662,097) | | | 3,162,961 |
Income tax payable | | | — | | | — | | | (77,214) |
Long-term prepaid expenses | | | 707,470 | | | — | | | — |
Lease liability – Operating lease | | | (23,841) | | | (28,595) | | | 53,635 |
Net cash used in operating activities | | | (1,905,912) | | | (2,072,220) | | | (3,479,064) |
| | | | | | | | | |
Cash Flows from Investing Activities: | | | | | | | | | |
Purchases of property, plant and equipment | | | (656,178) | | | (507,663) | | | (114,319) |
Purchase of CIP | | | (930,814) | | | (12,666) | | | (47,942) |
Purchases of intangible assets | | | (707,470) | | | (1,588,107) | | | (1,983,812) |
Investment into CG Malta | | | — | | | — | | | (25,000,000) |
Net cash used in investing activities | | | (2,294,462) | | | (2,108,436) | | | (27,146,073) |
| | | | | | | | | |
Cash Flows from Financing activities: | | | | | | | | | |
Net proceeds released from (placed into) short-term investment | | | 852,542 | | | 1,523,953 | | | (2,228,301) |
Proceeds from short-term bank borrowings | | | 21,486,396 | | | 31,113,044 | | | 31,203,129 |
Repayments of short-term bank borrowings | | | (19,350,091) | | | (34,501,465) | | | (28,144,978) |
Net (repayment) receiving for due to related parties | | | (920,690) | | | 1,173,516 | | | (280,313) |
Repayment of other borrowing | | | — | | | (279,004) | | | (483,458) |
Proceeds from stock issuances | | | — | | | — | | | 24,758,458 |
Proceeds from convertible notes issuances | | | — | | | — | | | 14,071,908 |
Proceeds from stock warrants exercise | | | — | | | — | | | 1,345,056 |
Net cash provided by (used in) financing activities | | | 2,068,157 | | | (969,956) | | | 40,241,501 |
| | | | | | | | | |
Effect of exchange rate changes on cash | | | (439,515) | | | (835,453) | | | 227,305 |
| | | | | | | | | |
Net (decrease) increase in cash, cash equivalents and restricted cash | | | (2,571,733) | | | (5,986,065) | | | 9,843,669 |
Cash and cash equivalents and restricted cash at the beginning of period | | | 7,617,139 | | | 13,603,204 | | | 3,759,535 |
Cash, cash equivalents and restricted cash at the end of period | | $ | 5,045,406 | | $ | 7,617,139 | | $ | 13,603,204 |
| | | | | | | | | |
Supplemental disclosures of cash flows information: | | | | | | | | | |
Cash paid for income taxes | | $ | 38,695 | | $ | 87,473 | | $ | 37,041 |
Cash paid for interest expenses | | $ | 774,929 | | $ | 976,091 | | $ | 338,575 |
| | | | | | | | | |
Non-cash transactions | | | | | | | | | |
Offset between due from related parties and due to related parties balances | | $ | 545,844 | | | 623,363 | | | 604,719 |
Intangible assets obtained in exchange for settlement of long-term deposit | | $ | 707,470 | | | 749,252 | | | — |
