Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jun. 30, 2022 | Aug. 22, 2022 | |
Document Information Line Items | ||
Entity Registrant Name | Gushen, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --09-30 | |
Entity Common Stock, Shares Outstanding | 410,618,750 | |
Amendment Flag | false | |
Entity Central Index Key | 0001639327 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-55666 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 47-3413138 | |
Entity Address, Address Line One | Room 513, 5th Floor | |
Entity Address, Address Line Two | No. 5 Haiying Road | |
Entity Address, Address Line Three | Fengtai District | |
Entity Address, City or Town | Beijing | |
Entity Address, Country | CN | |
City Area Code | +86 | |
Local Phone Number | 139-4977-8662 | |
Entity Address, Postal Zip Code | 00000 | |
Entity Interactive Data Current | No |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 | |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 1,076,074 | $ 2,659,116 | |
Other monetary funds | 9,713 | 506 | |
Accounts receivable, net | 24,883 | 0 | |
Prepayment | 614,201 | 618,325 | |
Other receivables | 104,997 | 198,656 | |
Due from related parties | 66,897 | 51,276 | |
Inventory | 404,719 | 414,063 | |
Total Current Assets | 2,301,484 | 3,941,942 | |
NON-CURRENT ASSETS | |||
Other long-term assets | 249,977 | 798,518 | |
Property, plant and equipment, net | 171,702 | 217,365 | |
Intangible assets | 62,850 | 73,183 | |
Deferred tax asset | 1,852,836 | 1,922,113 | |
Total non-Current Assets | 2,337,365 | 3,011,179 | |
TOTAL ASSETS | 4,638,849 | 6,953,121 | |
CURRENT LIABILITIES | |||
Accounts payable | 2,331,260 | 2,368,900 | |
Contract liability | 147,766 | 170,430 | |
Amount due to related parties | 537 | 543 | |
Payroll payable | 815,643 | 843,237 | |
Tax payable | 5,785,941 | 5,918,303 | |
Other payable | 197,107 | 13,892 | |
Total Current Liabilities | 9,278,254 | 9,315,305 | |
TOTAL LIABILITIES | 9,278,254 | 9,315,305 | |
COMMITMENTS AND CONTINGENCIES | |||
STOCKHOLDERS’ (DEFICIT) EQUITY | |||
Preferred stock, par value $0.0001, 1,000,000 shares authorized, 1,000,000 shares issued and outstanding as of June 30, 2022 and 1,000,000 shares issued and outstanding as of September 30, 2021* | [1] | 100 | 100 |
Common stock, Par Value $0.0001, 600,000,000 shares authorized, 410,618,750 shares issued and outstanding as of June 30, 2022 and 410,618,750 shares issued and outstanding as of September 30, 2021* | [1] | 41,062 | 41,062 |
Additional paid-in capital | 40,498 | 40,498 | |
Statutory reserve | 1,545 | 1,545 | |
(Accumulated deficits) retained earnings | (5,060,951) | (2,607,865) | |
Accumulated other comprehensive gain (loss) | 339,213 | 163,360 | |
Non-controlling interest | (872) | (884) | |
Total Stockholders’ (Deficit) Equity | (4,639,405) | (2,362,184) | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 4,638,849 | $ 6,953,121 | |
[1] Outstanding and issued shares retrospectively reflected the effect of recapitalization due to reverse acquisition |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2022 | Sep. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 1,000,000 | 1,000,000 |
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 410,618,750 | 410,618,750 |
Common stock, shares outstanding | 410,618,750 | 410,618,750 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Income Statement [Abstract] | |||||
REVENUE | $ 965,542 | $ 33,369 | $ 1,506,988 | $ 1,314,172 | |
COST OF REVENUE | (549,970) | (13,122) | (897,261) | (856,255) | |
GROSS PROFIT | 415,572 | 20,247 | 609,727 | 457,917 | |
OPERATING EXPENSES | |||||
Selling expenses | 613,971 | 1,746,126 | 2,044,152 | 5,752,580 | |
General and administrative expenses | 285,562 | 363,517 | 1,023,776 | 1,452,230 | |
Total Operating Expenses, net | 899,533 | 2,109,643 | 3,067,928 | 7,204,810 | |
LOSS FROM OPERATIONS | (483,961) | (2,089,396) | (2,458,201) | (6,746,893) | |
OTHER INCOME (EXPENSE), NET | |||||
Interest income | 793 | 3,476 | 3,439 | 18,447 | |
Other income | 610 | 2,320 | 4,633 | 17,403 | |
Other expense | (285) | (48) | (2,945) | (9,895) | |
Total Other Income (Expense), net | 1,118 | 5,748 | 5,127 | 25,955 | |
NET (LOSS) INCOME BEFORE TAXES | (482,843) | (2,083,648) | (2,453,074) | (6,720,938) | |
Income tax benefit (expense) | 408,431 | 483,283 | |||
NET (LOSS) INCOME | (482,843) | (1,675,217) | (2,453,074) | (6,237,655) | |
Less: Net income attributable to non-controlling interests | 17 | (784) | 12 | (871) | |
NET LOSS ATTRIBUTE TO THE COMPANY’S SHAREHOLDERS | (482,860) | (1,674,433) | (2,453,086) | (6,236,784) | |
OTHER COMPREHENSIVE INCOME (LOSS) | |||||
Foreign currency translation adjustment | 212,836 | 50,471 | 175,853 | 325,395 | |
COMPREHENSIVE LOSS | $ (270,024) | $ (1,623,962) | $ (2,277,233) | $ (5,911,389) | |
Basic and diluted loss per share (in Dollars per share) | [1] | $ (0.001) | $ (0.004) | $ (0.006) | $ (0.015) |
Weighted average number of common shares outstanding – basic and diluted (in Shares) | [1] | 410,618,750 | 410,618,750 | 410,618,750 | 410,618,750 |
[1] Outstanding and issued shares retrospectively reflected the effect of recapitalization due to reverse acquisition |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Diluted loss per share | $ (0.001) | $ (0.004) | $ (0.006) | $ (0.015) |
Weighted average number of common shares outstanding – diluted | 410,618,750 | 410,618,750 | 410,618,750 | 410,618,750 |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Statutory reserves | Retained Earnings | Accumulated other comprehensive income (loss) | Non- Controlling Interests | Total |
Balance at Sep. 30, 2020 | $ 100 | $ 41,062 | $ 40,498 | $ 1,545 | $ 7,306,289 | $ (145,325) | $ 0 | $ 7,244,169 |
Balance (in Shares) at Sep. 30, 2020 | 1,000,000 | 410,618,750 | ||||||
Net income (loss) | (6,236,784) | (871) | (6,237,655) | |||||
Foreign currency translation adjustment | 325,395 | (9) | 325,386 | |||||
Balance at Jun. 30, 2021 | $ 100 | $ 41,062 | 40,498 | 1,545 | 1,069,505 | 180,070 | (880) | 1,331,900 |
Balance (in Shares) at Jun. 30, 2021 | 1,000,000 | 410,618,750 | ||||||
Balance at Sep. 30, 2021 | $ 100 | $ 41,062 | 40,498 | 1,545 | (2,607,865) | 163,360 | (884) | (2,362,184) |
Balance (in Shares) at Sep. 30, 2021 | 1,000,000 | 410,618,750 | ||||||
Net income (loss) | (2,453,086) | 12 | (2,453,074) | |||||
Foreign currency translation adjustment | 175,853 | 175,853 | ||||||
Balance at Jun. 30, 2022 | $ 100 | $ 41,062 | $ 40,498 | $ 1,545 | $ (5,060,951) | $ 339,213 | $ (872) | $ (4,639,405) |
Balance (in Shares) at Jun. 30, 2022 | 1,000,000 | 410,618,750 |
Interim Condensed Consolidate_6
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (2,453,074) | $ (6,237,655) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Inventory impairment | (20,738) | |
Depreciation | 58,093 | 88,439 |
Amortization of prepaid expenses | 530,140 | 1,794,446 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (25,838) | |
Other receivables | 89,819 | 1,923,731 |
Advances to suppliers | (9,280) | (187,523) |
Due from related party | (18,140) | 41,977 |
Due to related parties | 16 | |
Inventory | (5,794) | 62,111 |
Deferred tax asset | (483,283) | |
Tax payables | 84,053 | (36,981) |
Other payables | 190,772 | (1,239,466) |
Accounts payable | 49,572 | 1,736,542 |
Contract liabilities | (17,155) | (1,046,351) |
Payroll payable | 2,905 | 116,636 |
Net cash used in operating activities | (1,523,911) | (3,488,115) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | (10,820) | (79,289) |
Net cash used in investing activities | (10,820) | (79,289) |
EFFECT OF EXCHANGE RATE ON CASH | (39,104) | 346,602 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (1,573,835) | (3,220,802) |
CASH AT BEGINNING OF YEAR | 2,659,622 | 7,134,106 |
CASH AT END OF YEAR | 1,085,787 | 3,913,303 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Income taxes | 26,445 | |
Interest |
Organization and Business
Organization and Business | 9 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND BUSINESS | 1. ORGANIZATION AND BUSINESS Gushen, Inc. (the “Company”) was incorporated on March 9, 2015, in the state of Nevada. On July 30, 2021, the Company, and Dyckmanst Limited, a company organized under the laws of the British Virgin Islands (“ Dyckmanst Limited Dyckmanst Limited Shareholders Dyckmanst Limited Shareholder Share Exchange Agreement Common Stock Share Exchange Preferred Stock Cancellation of Certain Preferred Stock Dyckmanst Limited, via Beijing Zhuoxun Century Culture Communication Co., Ltd. (“ Zhuoxun Beijing PRC In February 2021, Beijing Fengyuan Zhihui Education Technology Co., Ltd. (“ Fengyuan Beijing VIE Agreements Consulting Service Agreement Pursuant to the terms of an Exclusive Consulting and Service Agreement dated February 5, 2021, between Fengyuan Beijing and Zhuoxun Beijing (the “ Consulting Service Agreement Business Operation Agreement Pursuant to the terms of a Business Operation Agreement dated February 5, 2021, among Fengyuan Beijing, Zhuoxun Beijing and the shareholders of Zhuoxun Beijing (the “ Business Operation Agreement Proxy Agreement Pursuant to the terms of a Proxy Agreements dated February 5, 2021, among Fengyuan Beijing, and the shareholders of Zhuoxun Beijing (each, the “ Proxy Agreement Proxy Agreements Equity Disposal Agreement Pursuant to the terms of an Equity Disposal Agreement dated February 5, 2021, among Fengyuan Beijing, Zhuoxun Beijing, and the shareholders of Zhuoxun Beijing (the “ Equity Disposal Agreement Option” Equity Pledge Agreement Pursuant to the terms of an Equity Pledge Agreement dated February 5, 2021, among Fengyuan Beijing and the shareholders of Zhuoxun Beijing (the “ Pledge Agreement Agreement Agreements Based on these contractual arrangements, the Company consolidates the VIE in accordance with SEC Regulation S-X Rule 3A-02 and Accounting Standards Codification (“ASC”) topic 810 (“ASC 810”), Consolidation. The accompanying interim condensed Name Background Ownership Dyckmanst Limited ● A British Virgin Islands company Holding Entity ● Principal activities: Investment holding Edeshler Limited ● A Hong Kong company 100% ● Principal activities: Investment holding Beijing Fengyuan Zhihui Education Technology Co., Ltd. ● A PRC limited liability company and deemed a wholly foreign-invested enterprise 100% ● Principal activities: Consultancy and information technology support Beijing Zhuoxun Century Culture ● A PRC limited liability company VIE by contractual ● Incorporated on September 2, 2020 arrangements ● Principal activities: family education services via online and onsite classes Beijing Zhuoxun Education Technology Co., Ltd. ● A PRC limited liability company 70% owned by VIE ● Principal activities: promotion and support The following combined financial information of the Group’s VIEs as of June 30, 2022 and September 30, 2021 and for the nine months ended June 30, 2022 and 2021 included in the accompanying consolidated financial statements of the Group was as follows: At At 2022 2021 (Unaudited) CURRENT ASSETS Cash and cash equivalents $ 1,008,334 $ 2,559,546 Other monetary funds 9,713 506 Accounts receivable, net 24,883 - Prepayment 614,201 618,325 Other receivables 90,774 183,900 Intercompany receivables 182,208 189,021 Due from related parties 66,897 51,276 Inventory 404,719 414,063 Total Current Assets 2,401,729 4,016,637 NON-CURRENT ASSETS Other long-term assets 249,977 798,518 Property, plant and equipment, net 171,702 217,365 Intangible assets 62,850 73,183 Deferred tax asset 1,852,836 1,922,113 Total non-Current Assets 2,337,365 3,011,179 TOTAL ASSETS $ 4,739,094 $ 7,027,816 CURRENT LIABILITIES Accounts payable $ 2,331,260 $ 2,368,900 Contract liability 147,766 170,430 Amount due to related parties 14 1 Payroll payable 815,643 843,237 Tax payable 5,785,941 5,918,303 Other payable 186,753 13,892 Total Current Liabilities 9,267,377 9,314,763 TOTAL LIABILITIES $ 9,267,377 $ 9,314,763 For The Three Months Ended For The Nine Months Ended June 30, June 30, 2022 2021 2022 2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited) REVENUES Training revenue $ 590,055 $ 33,050 $ 1,112,050 $ 1,312,870 Charge for use of brand 297,862 - 297,862 - Other revenues 77,625 319 97,076 1,302 Total revenues 965,542 33,369 1,506,988 1,314,172 NET (LOSS) INCOME $ (482,843 ) $ (1,675,217 ) $ (2,453,074 ) $ (6,237,655 ) For The Nine Months Ended June 30, 2022 2021 (Unaudited) (Unaudited) Net cash used in operating activities $ (1,523,911 ) $ (3,488,115 ) Net cash provided by (used in) investing activities (10,820 ) (79,289 ) Net cash provided by financing activities - - |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). Going Concern The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Company’s ability to operate profitably, to generate cash flows from operations, and to pursue financing arrangements to support its working capital requirements. In assessing the Company’s liquidity, the Company monitors and analyzes its cash and cash equivalents and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. As of June 30, 2022, the Company’s current liabilities exceeded the current assets by $6,976,770 , its accumulated deficit was and the Company has incurred losses during the nine months ended June 30, 2022 and 2021. None of the Company’s stockholders, officers or directors, or third parties, are under any obligation to advance us funds, or to invest in us. Accordingly, we may not be able to obtain additional financing. If we are unable to raise additional capital, we may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of our business plan, and reducing overhead expenses. We cannot provide any assurance that new financing will be available to us on commercially acceptable terms, if at all. In evaluating if there is substantial doubt about the ability to continue as a going concern, the Company are trying to alleviate the going concern risk through (1) increasing cash generated from operations by controlling operating expenses and increasing more online and offline training sessions to bring in more training revenue, (2) financing from domestic banks and other financial institutions, and (3) equity or debt financing. The Company has certain plans to mitigate these adverse conditions and to increase the liquidity. On an on-going basis, the Company will also receive financial support commitments from the Company’s related parties. These conditions raise substantial doubt about our ability to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. Use of Estimates The preparation of these interim condensed consolidated financial statements in conformity with U.S. GAAP requires management of the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an on-going basis, the Company evaluates its estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Identified below are the accounting policies that reflect the Company’s most significant estimates and judgments, and those that the Company believes are the most critical to fully understanding and evaluating its interim condensed consolidated financial statements. COVID-19 Outbreak In March 2020 the World Health Organization declared coronavirus COVID-19 a global pandemic. The COVID-19 pandemic has negatively impacted the global economy, workforces, customers, and created significant volatility and disruption of financial markets. It has also disrupted the normal operations of many businesses, including ours. This outbreak could decrease spending, adversely affect demand for our services and harm our business and results of operations. During 2022, there was resurgence of COVID-19 which has caused lockdowns in many cities in China. It is not possible for us to predict the duration or magnitude of the adverse results of the outbreak and its effects on our business or results of operations at this time. Revenue Recognition The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) the Company satisfies the performance obligation. Revenues are recognized when control of the promised goods or services is transferred to our customers, which may occur at a point in time or over time depending on the terms and conditions of the agreement, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The Company identified the following performance obligations for each type of contract: Training revenue The Company’s offline training course service primarily includes assigning instructors, providing offline classes and presenting training materials to the course participants who attend the classes. The series of tasks as discussed above are interrelated and are not separable or distinct as the clients cannot benefit from the standalone task. The Company’s online training course service primarily includes coursewares or videos which are already published on the website. Other than providing the access, there are no bundle or multiple separable and distinct tasks. According to ASC 606-10-25-19, there is one performance obligation for the training course service. Charge for use of brand The Company authorized other enterprises or individuals to use the Company's brand, providing services to customers at their location, with a brand usage fee. Revenue was recognized when such events using the Company’s brand are completed. Other revenues include sales of anti-addiction mobile phone device and online sales of household items. The amount was immaterial compared to total revenue during nine months ended June 30, 2022 and 2021. Practical expedients and exemption The Company has not occurred any costs to obtain contracts, and does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Other service income is earned when services have been rendered. Revenue by major product line For The Three Months Ended For The Nine Months Ended June 30, June 30, 2022 2021 2022 2021 Training revenue $ 590,055 $ 33,050 $ 1,112,050 $ 1,312,870 Charge for use of brand 297,862 - 297,862 - Other revenues 77,625 319 97,076 1,302 Total Revenue $ 965,542 $ 33,369 $ 1,506,988 $ 1,314,172 Income Taxes We account for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. We apply ASC 740, Accounting for Income Taxes Foreign Currency and Foreign Currency Translation The functional currency of the Company is the United States dollar (“US dollar”). Fengyuan Beijing and Zhuoxun Beijing, which are based in PRC, the local currency, the Chinese Yuan (“RMB”), as their functional currencies. An entity’s functional currency is the currency of the primary economic environment in which it operates, normally that is the currency of the environment in which the entity primarily generates and expends cash. Management’s judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are re-measured at the applicable rates of exchange in effect at that date. Gains and losses resulting from foreign currency re-measurement are included in the statements of comprehensive loss. The interim condensed consolidated financial statements are presented in U.S. dollars. Assets and liabilities are translated into U.S. dollars at the current exchange rate in effect at the balance sheet date, and revenues and expenses are translated at the average of the exchange rates in effect during the reporting period. Stockholders’ equity accounts are translated using the historical exchange rates at the date the entry to stockholders’ equity was recorded, except for the change in retained earnings during the period, which is translated using the historical exchange rates used to translate each period’s income statement. Differences resulting from translating functional currencies to the reporting currency are recorded in accumulated other comprehensive income in the interim condensed consolidated balance sheets. Translation of amounts from RMB into U.S. dollars has been made at the following exchange rates: Balance sheet items, except for equity accounts June 30, 2022 RMB6.6981 to $1 September 30, 2021 RMB6.4567 to $1 Income statement and cash flows items For the Nine months ended June 30, 2022 RMB6.4504 to $1 For the Nine months ended June 30, 2021 RMB6.5204 to $1 Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and at banks and highly liquid investments, which are unrestricted from withdrawal or use, and which have original maturities of three months or less when purchased. Other monetary funds Other monetary funds consist of cash deposited in financial institutions other than banks. Accounts Receivable, Net The carrying value of accounts receivable is reduced by an allowance that reflects the Company’s best estimate of the amounts that will not be collected. The Company makes estimations of the collectability of accounts receivable. Many factors are considered in estimating the general allowance, including reviewing delinquent accounts receivable, performing an aging analysis and a customer credit analysis, and analyzing historical bad debt records and current economic trends. The adoption of the new revenue standards did not change the Company’s historical accounting methods for its accounts receivable. Long-Lived Assets Long-lived assets consist primarily of property, plant and equipment and intangible assets. Property, plant and equipment Property, plant and equipment are recorded at cost less accumulated depreciation and accumulated impairment. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Estimated Office and computer equipment 5 Lease improvement 3 Transportation equipment 5 Expenditure for maintenance and repairs is expensed as incurred. The gain or loss on the disposal of property, plant and equipment is the difference between the net sales proceeds and the lower of the carrying value or fair value less cost to sell the relevant assets and is recognized in general and administrative expenses in the interim condensed consolidated statements of comprehensive loss. Intangible Assets Intangible assets mainly comprise domain names and trademarks. Intangible assets are recorded at cost less accumulated amortization with no residual value. Amortization of intangible assets o is computed using the straight-line method over their estimated useful lives. The estimated useful lives of the Company’s intangible assets are listed below: Estimated Software 10 Impairment of Long-lived Assets In accordance with ASC 360-10-35, the Company reviews the carrying values of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Based on the existence of one or more indicators of impairment, the Company measures any impairment of long-lived assets using the projected discounted cash flow method at the asset group level. The estimation of future cash flows requires significant management judgment based on the Company’s historical results and anticipated results and is subject to many factors. The discount rate that is commensurate with the risk inherent in the Company’s business model is determined by its management. An impairment loss would be recorded if the Company determined that the carrying value of long-lived assets may not be recoverable. The impairment to be recognized is measured by the amount by which the carrying values of the assets exceed the fair value of the assets. No impairment has been recorded by the Company as of June 30, 2022 and September 30, 2021. Credit risk Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents. As of June 30, 2022 and September 30, 2021, substantially all of the Company’s cash and cash equivalents were held by major financial institutions located in the PRC, which management believes are of high credit quality. For the credit risk related to trade accounts receivable, the Company performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses. Historically, such losses have been within management’s expectations. Segments The Company evaluates a reporting unit by first identifying its operating segments, and then evaluates each operating segment to determine if it includes one or more components that constitute a business. If there are components within an operating segment that meets the definition of a business, the Company evaluates those components to determine if they must be aggregated into one or more reporting units. If applicable, when determining if it is appropriate to aggregate different operating segments, the Company determines if the segments are economically similar and, if so, the operating segments are aggregated. The Company has only one major reportable segment in the periods presented. Fair Value of Financial Instruments U.S. GAAP establishes a three-tier hierarchy to prioritize the inputs used in the valuation methodologies in measuring the fair value of financial instruments. This hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three-tier fair value hierarchy is: Level 1 – observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – include other inputs that are directly or indirectly observable in the market place. Level 3 – unobservable inputs which are supported by little or no market activity. The carrying value of the Company’s financial instruments, including cash and cash equivalents, accounts and other receivables, other current assets, accounts and other payables, and other short-term liabilities approximate their fair value due to their short maturities. In accordance with ASC 825, for investments in financial instruments with a variable interest rate indexed to performance of underlying assets, the Company elected the fair value method at the date of initial recognition and carried these investments at fair value. Changes in the fair value are reflected in the accompanying interim condensed statements of operations and comprehensive loss as other income (expense). To estimate fair value, the Company refers to the quoted rate of return provided by banks at the end of each period using the discounted cash flow method. The Company classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. As of June 30, 2022 and September 30, 2021, the Company had no investments in financial instruments. Restricted assets Fengyuan Beijing and Zhuoxun Beijing are restricted in their ability to transfer a portion of their net assets to the Company. The payment of dividends by entities organized in China is subject to limitations, procedures and formalities. Regulations in the PRC currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in China. Fengyuan Beijing and Zhuoxun Beijing are also required to set aside at least 10% of its after-tax profit based on PRC accounting standards each year to its statutory reserves account until the accumulative amount of such reserves reaches 50% of its respective registered capital. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. In addition, the Company’s operations are conducted and revenues are generated in China, and all of the Company’s revenues earned and currency received are denominated in RMB. RMB is subject to the foreign exchange control regulation in China, and, as a result, the Company may be unable to distribute any dividends outside of China due to PRC foreign exchange control regulations that restrict the Company’s ability to convert RMB into U.S. dollars. Recent Accounting Pronouncements Accounting Pronouncements Issued But Not Yet Adopted Financial Instruments. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses (Topic 326)” (“ASU 2016-13”). ASU 2016-13 revises the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. Originally, ASU 2016-13 was effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. In November 2019, FASB issued ASU 2019-10, “Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842).” This ASU defers the effective date of ASU 2016-13 for public companies that are considered smaller reporting companies as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is planning to adopt this standard in the first quarter of fiscal 2023. The Company is currently evaluating the potential effects of adopting the provisions of ASU No. 2016-13 on its consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, which requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, as if it had originated the contracts. Prior to this ASU, an acquirer generally recognizes contract assets acquired and contract liabilities assumed that arose from contracts with customers at fair value on the acquisition date. The ASU is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The ASU is to be applied prospectively to business combinations occurring on or after the effective date of the amendment (or if adopted early as of an interim period, as of the beginning of the fiscal year that includes the interim period of early application). The Company is currently assessing this standard’s impact on its consolidated financial statements. Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have material impact on the consolidated financial position, statements of operations and cash flows. |
Prepayments
Prepayments | 9 Months Ended |
Jun. 30, 2022 | |
Prepayments [Abstract] | |
PREPAYMENTS | 3. PREPAYMENTS Prepayments consist of the following: June 30, September 30, Prepaid marketing fee $ 192,741 $ 193,443 Prepaid service fee 380,923 388,125 Prepaid rent 40,537 36,757 Prepaid other expense - - $ 614,201 $ 618,325 |
Other Receivables
Other Receivables | 9 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
OTHER RECEIVABLES | 4. OTHER RECEIVABLES Other receivables consist of the following: Amount due from agents is mainly the payment collected by the agents from the trainees on behalf of the Company. Agents provide various services to facilitate the in-person training seminars scheduled by the Company. June 30, September 30, Amount due from third parties 15,560 140,996 Amount due from employees 48,760 38,107 Deposit & guarantee 53,443 30,388 Others 16,920 19,961 $ 134,683 $ 229,452 Less: allowance for doubtful accounts (29,686 ) (30,796 ) $ 104,997 $ 198,656 The following table sets forth the movement of allowance for doubtful accounts: June 30, September 30, 2022 2021 Beginning $ 30,796 $ 294,063 Additions - 30,556 Write off bad debt - (307,441 ) Exchange rate difference (1,110 ) 13,618 Balance $ 29,686 $ 30,796 |
Inventory
Inventory | 9 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORY | 5. INVENTORY The company’s sole inventory is the anti-addiction cell phone which has primarily four functions including anti-addiction, myopia prevention, security, and study assistance, for the purpose of managing elementary and middle school students. June 30, September 30, 2022 2021 Cost $ 407,818 $ 417,278 Less: provision for inventory (3,099 ) (3,215 ) Net amount $ 404,719 $ 414,063 The following table sets forth the movement of provision for the inventory: June 30, September 30, 2022 2021 Beginning $ 3,215 $ 19,881 Additions - - Charge-offs - (17,589 ) Exchange rate difference (116 ) 923 Balance $ 3,099 $ 3,215 |
Other Long-Term Assets
Other Long-Term Assets | 9 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
OTHER LONG-TERM ASSETS | 6. OTHER LONG-TERM ASSETS Other long-term assets consist of the following: The prepaid marketing fees are mainly for the two-year marketing service provided by different agents which the Company has signed contracts with. June 30, September 30, 2022 2021 Prepaid marketing fee $ 164,675 $ 733,665 Prepaid service fee 85,302 64,853 $ 249,977 $ 798,518 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | 7. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consist of the following: June 30, September 30, 2022 2021 Office and computer equipment $ 296,458 $ 378,818 Lease improvement 127,648 132,421 Transportation equipment 79,127 - Less: Accumulated depreciation $ (331,531 ) $ (293,874 ) $ 171,702 $ 217,365 Depreciation expenses charged to the statements of operations for the three months ended June 30, 2022 and 2021 were $18,185 and $30,785, and for the nine months ended June 30, 2022 and 2021 were $37,657 and $80,534, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | 8. INTANGIBLE ASSETS, NET Intangible assets, net, consist of the following: June 30, September 30, 2022 2021 Software $ 102,611 $ 106,448 Less: Accumulated amortization (39,761 ) (33,265 ) $ 62,850 $ 73,183 Amortization charged to the statements of operations for the three months ended June 30, 2022 and 2021 were $2,614 and $2,661, and for the nine months June 30, 2022 and 2021 were $6,496 and $7,906, respectively. |
Accounts Payable
Accounts Payable | 9 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE | 9. ACCOUNTS PAYABLE Accounts payable consist of the following: June 30, September 30, 2022 2021 Amount due to agents $ 1,349,365 $ 1,350,292 Amount due to other service providers 981,895 1,018,608 $ 2,331,260 $ 2,368,900 |
Balances with Related Parties
Balances with Related Parties | 9 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
BALANCES WITH RELATED PARTIES | 10. BALANCES WITH RELATED PARTIES June 30, September 30, Note 2022 2021 Due from related parties Yulong Yi (a) $ 49,458 $ 32,727 Ru Zhang (b) 6,251 6,486 Shaowei Peng (c) 11,188 12,063 $ 66,897 $ 51,276 Due to related parties Yulong Yi (a) $ 522 $ 542 Ru Zhang (b) - 1 Shaowei Peng (c) 15 - $ 537 $ 543 (a) Chairman of Beijing ZhuoXun Century Culture Communication Co., Ltd. and Chairman and legal representative of Beijing Fengyuan Zhihui Education Technology Co., Ltd. And holds 46% voting rights of Beijing ZhuoXun Century Culture Communication Co., Ltd. (b) Holder of 11% registed capital of Beijing ZhuoXun Century Culture Communication Co., Ltd. (c) CTO of Beijing ZhuoXun Century Culture Communication Co., Ltd. and Director of WFOE Amount due from related parties are mainly cash in advance provided to the related parties by the Company. Amount due to related parties are mainly the out-of-pocket expenses incurred by the related parties for working purpose which are to be reimbursed by the Company. All the above balances are due on demand, interest-free, unsecured and expected to be settled within one operating period. |
Taxes
Taxes | 9 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
TAXES | 11. TAXES Income tax The Company is subject to income taxes on an entity basis on income arising in or derived from the tax jurisdiction in which each entity is domiciled. PRC Tax The Company is subject to corporate income tax (“CIT”) at 25% for the three months ended June 30, 2022 and 2021 and the nine months ended June 30, 2022 and 2021. For The Three Months Ended For The Nine Months Ended June 30, June 30, 2022 2021 2022 2021 PRC $ (482,843 ) $ (2,083,648 ) $ (2,453,074 ) $ (6,720,938 ) Total income (loss) before income taxes $ (482,843 ) $ (2,083,648 ) $ (2,453,074 ) $ (6,720,938 ) Deferred tax assets The tax effects of temporary differences that give rise to significant portions of the deferred tax asset and liability as of June 30, 2022 and September 30, 2021 are presented below: June 30, September 30, 2022 2021 Deferred tax asset: Bad debt provision 7,421 7,699 Inventory provision 775 804 Tax loss carryforward $ 1,844,640 $ 1,916,369 1,852,836 1,924,872 Deferred tax liability: Depreciation $ - $ 2,759 Net amount 1,852,836 1,922,113 Management believes that it is more likely than not that the Company will not realize these potential tax benefits as these operations will not generate any operating profits in the foreseeable future. As a result, a valuation allowance was provided against the full amount of the potential tax benefits. Taxes payable Taxes payable consisted of the following: June 30, September 30, 2022 2021 VAT tax payable $ 1,432,113 $ 1,408,729 Company income tax payable 2,034,043 2,110,094 Individual income tax payable 2,142,118 2,223,544 Other taxes payable 177,667 175,936 Totals $ 5,785,941 $ 5,918,303 |
China Contribution Plan
China Contribution Plan | 9 Months Ended |
Jun. 30, 2022 | |
Defined Contribution Plan [Abstract] | |
CHINA CONTRIBUTION PLAN | 12. CHINA CONTRIBUTION PLAN The Company participates in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. Chinese labor regulations require the Company to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; the Company has no further commitments beyond their monthly contributions. For the nine months ended June 30, 2022 and 2021, the Company contributed a total of $194,715 and $420,111, respectively, to these funds. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | 13. SUBSEQUENT EVENT On January 18, 2022, the Company filed a Definitive Information Statement (the “Definitive Information Statement”) to the SEC in connection with, among other matters, adoption of an Equity Incentive Plan (the “EIP”) for the employees, officers, directors and consultants of the Company or its affiliates effective on the twentieth (20th) day following the date on which an Information Statement was mailed to the stockholders of the Company (the “Effective Date”). Simultaneously on the same day, a copy of the Definitive Information Statement was mailed to all shareholders of the Company. On July 31, 2022, the Board approved the issuance of an aggregate of 42,061,876 shares of the Company’s common stock to certain employees (the “Participants”) of Zhuoxun Beijing as restricted stock under Equity Incentive Plan (the “Restricted Stock”) pursuant to a certain stock award agreement (collectively the “Award Agreements”, each an “Award Agreement”) with each of the Participants. Pursuant to the terms of the Equity Incentive Plan and each Award Agreement, the Company will issue 14,301,038, 13,880,419, and 13,880,419 shares of Restricted Stock to Hao Wang, Brand Promotion Specialist, Bolei Liu, Marketing Service Specialist, and Deqiang Wen, Research & Development Manager, respectively which shall be vested on October 31, 2022, subject to participant’s continued employment with Zhuoxun Beijing until such time and other terms and conditions set forth therein. The Company has analyzed its operations subsequent to June 30, 2022 to the date these condensed consolidation financial statements were issued. There is not material subsequent event to disclose in these condensed consolidated financial statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). |
Going Concern | Going Concern The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Company’s ability to operate profitably, to generate cash flows from operations, and to pursue financing arrangements to support its working capital requirements. In assessing the Company’s liquidity, the Company monitors and analyzes its cash and cash equivalents and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. As of June 30, 2022, the Company’s current liabilities exceeded the current assets by $6,976,770 , its accumulated deficit was and the Company has incurred losses during the nine months ended June 30, 2022 and 2021. None of the Company’s stockholders, officers or directors, or third parties, are under any obligation to advance us funds, or to invest in us. Accordingly, we may not be able to obtain additional financing. If we are unable to raise additional capital, we may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of our business plan, and reducing overhead expenses. We cannot provide any assurance that new financing will be available to us on commercially acceptable terms, if at all. In evaluating if there is substantial doubt about the ability to continue as a going concern, the Company are trying to alleviate the going concern risk through (1) increasing cash generated from operations by controlling operating expenses and increasing more online and offline training sessions to bring in more training revenue, (2) financing from domestic banks and other financial institutions, and (3) equity or debt financing. The Company has certain plans to mitigate these adverse conditions and to increase the liquidity. On an on-going basis, the Company will also receive financial support commitments from the Company’s related parties. These conditions raise substantial doubt about our ability to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. |
Use of Estimates | Use of Estimates The preparation of these interim condensed consolidated financial statements in conformity with U.S. GAAP requires management of the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an on-going basis, the Company evaluates its estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Identified below are the accounting policies that reflect the Company’s most significant estimates and judgments, and those that the Company believes are the most critical to fully understanding and evaluating its interim condensed consolidated financial statements. |
COVID-19 Outbreak | COVID-19 Outbreak In March 2020 the World Health Organization declared coronavirus COVID-19 a global pandemic. The COVID-19 pandemic has negatively impacted the global economy, workforces, customers, and created significant volatility and disruption of financial markets. It has also disrupted the normal operations of many businesses, including ours. This outbreak could decrease spending, adversely affect demand for our services and harm our business and results of operations. During 2022, there was resurgence of COVID-19 which has caused lockdowns in many cities in China. It is not possible for us to predict the duration or magnitude of the adverse results of the outbreak and its effects on our business or results of operations at this time. |
Revenue Recognition | Revenue Recognition The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) the Company satisfies the performance obligation. Revenues are recognized when control of the promised goods or services is transferred to our customers, which may occur at a point in time or over time depending on the terms and conditions of the agreement, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The Company identified the following performance obligations for each type of contract: Training revenue The Company’s offline training course service primarily includes assigning instructors, providing offline classes and presenting training materials to the course participants who attend the classes. The series of tasks as discussed above are interrelated and are not separable or distinct as the clients cannot benefit from the standalone task. The Company’s online training course service primarily includes coursewares or videos which are already published on the website. Other than providing the access, there are no bundle or multiple separable and distinct tasks. According to ASC 606-10-25-19, there is one performance obligation for the training course service. Charge for use of brand The Company authorized other enterprises or individuals to use the Company's brand, providing services to customers at their location, with a brand usage fee. Revenue was recognized when such events using the Company’s brand are completed. Other revenues include sales of anti-addiction mobile phone device and online sales of household items. The amount was immaterial compared to total revenue during nine months ended June 30, 2022 and 2021. Practical expedients and exemption The Company has not occurred any costs to obtain contracts, and does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Other service income is earned when services have been rendered. Revenue by major product line For The Three Months Ended For The Nine Months Ended June 30, June 30, 2022 2021 2022 2021 Training revenue $ 590,055 $ 33,050 $ 1,112,050 $ 1,312,870 Charge for use of brand 297,862 - 297,862 - Other revenues 77,625 319 97,076 1,302 Total Revenue $ 965,542 $ 33,369 $ 1,506,988 $ 1,314,172 |
Income Taxes | Income Taxes We account for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. We apply ASC 740, Accounting for Income Taxes |
Foreign Currency and Foreign Currency Translation | Foreign Currency and Foreign Currency Translation The functional currency of the Company is the United States dollar (“US dollar”). Fengyuan Beijing and Zhuoxun Beijing, which are based in PRC, the local currency, the Chinese Yuan (“RMB”), as their functional currencies. An entity’s functional currency is the currency of the primary economic environment in which it operates, normally that is the currency of the environment in which the entity primarily generates and expends cash. Management’s judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are re-measured at the applicable rates of exchange in effect at that date. Gains and losses resulting from foreign currency re-measurement are included in the statements of comprehensive loss. The interim condensed consolidated financial statements are presented in U.S. dollars. Assets and liabilities are translated into U.S. dollars at the current exchange rate in effect at the balance sheet date, and revenues and expenses are translated at the average of the exchange rates in effect during the reporting period. Stockholders’ equity accounts are translated using the historical exchange rates at the date the entry to stockholders’ equity was recorded, except for the change in retained earnings during the period, which is translated using the historical exchange rates used to translate each period’s income statement. Differences resulting from translating functional currencies to the reporting currency are recorded in accumulated other comprehensive income in the interim condensed consolidated balance sheets. Translation of amounts from RMB into U.S. dollars has been made at the following exchange rates: Balance sheet items, except for equity accounts June 30, 2022 RMB6.6981 to $1 September 30, 2021 RMB6.4567 to $1 Income statement and cash flows items For the Nine months ended June 30, 2022 RMB6.4504 to $1 For the Nine months ended June 30, 2021 RMB6.5204 to $1 |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and at banks and highly liquid investments, which are unrestricted from withdrawal or use, and which have original maturities of three months or less when purchased. |
Other monetary funds | Other monetary funds Other monetary funds consist of cash deposited in financial institutions other than banks. |
Accounts Receivable, Net | Accounts Receivable, Net The carrying value of accounts receivable is reduced by an allowance that reflects the Company’s best estimate of the amounts that will not be collected. The Company makes estimations of the collectability of accounts receivable. Many factors are considered in estimating the general allowance, including reviewing delinquent accounts receivable, performing an aging analysis and a customer credit analysis, and analyzing historical bad debt records and current economic trends. The adoption of the new revenue standards did not change the Company’s historical accounting methods for its accounts receivable. |
Long-Lived Assets | Long-Lived Assets Long-lived assets consist primarily of property, plant and equipment and intangible assets. Property, plant and equipment Property, plant and equipment are recorded at cost less accumulated depreciation and accumulated impairment. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Estimated Office and computer equipment 5 Lease improvement 3 Transportation equipment 5 Expenditure for maintenance and repairs is expensed as incurred. The gain or loss on the disposal of property, plant and equipment is the difference between the net sales proceeds and the lower of the carrying value or fair value less cost to sell the relevant assets and is recognized in general and administrative expenses in the interim condensed consolidated statements of comprehensive loss. Intangible Assets Intangible assets mainly comprise domain names and trademarks. Intangible assets are recorded at cost less accumulated amortization with no residual value. Amortization of intangible assets o is computed using the straight-line method over their estimated useful lives. The estimated useful lives of the Company’s intangible assets are listed below: Estimated Software 10 |
Impairment of Long-lived Assets | Impairment of Long-lived Assets In accordance with ASC 360-10-35, the Company reviews the carrying values of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Based on the existence of one or more indicators of impairment, the Company measures any impairment of long-lived assets using the projected discounted cash flow method at the asset group level. The estimation of future cash flows requires significant management judgment based on the Company’s historical results and anticipated results and is subject to many factors. The discount rate that is commensurate with the risk inherent in the Company’s business model is determined by its management. An impairment loss would be recorded if the Company determined that the carrying value of long-lived assets may not be recoverable. The impairment to be recognized is measured by the amount by which the carrying values of the assets exceed the fair value of the assets. No impairment has been recorded by the Company as of June 30, 2022 and September 30, 2021. |
Credit risk | Credit risk Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents. As of June 30, 2022 and September 30, 2021, substantially all of the Company’s cash and cash equivalents were held by major financial institutions located in the PRC, which management believes are of high credit quality. For the credit risk related to trade accounts receivable, the Company performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses. Historically, such losses have been within management’s expectations. |
Segments | Segments The Company evaluates a reporting unit by first identifying its operating segments, and then evaluates each operating segment to determine if it includes one or more components that constitute a business. If there are components within an operating segment that meets the definition of a business, the Company evaluates those components to determine if they must be aggregated into one or more reporting units. If applicable, when determining if it is appropriate to aggregate different operating segments, the Company determines if the segments are economically similar and, if so, the operating segments are aggregated. The Company has only one major reportable segment in the periods presented. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments U.S. GAAP establishes a three-tier hierarchy to prioritize the inputs used in the valuation methodologies in measuring the fair value of financial instruments. This hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three-tier fair value hierarchy is: Level 1 – observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – include other inputs that are directly or indirectly observable in the market place. Level 3 – unobservable inputs which are supported by little or no market activity. The carrying value of the Company’s financial instruments, including cash and cash equivalents, accounts and other receivables, other current assets, accounts and other payables, and other short-term liabilities approximate their fair value due to their short maturities. In accordance with ASC 825, for investments in financial instruments with a variable interest rate indexed to performance of underlying assets, the Company elected the fair value method at the date of initial recognition and carried these investments at fair value. Changes in the fair value are reflected in the accompanying interim condensed statements of operations and comprehensive loss as other income (expense). To estimate fair value, the Company refers to the quoted rate of return provided by banks at the end of each period using the discounted cash flow method. The Company classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. As of June 30, 2022 and September 30, 2021, the Company had no investments in financial instruments. |
Restricted assets | Restricted assets Fengyuan Beijing and Zhuoxun Beijing are restricted in their ability to transfer a portion of their net assets to the Company. The payment of dividends by entities organized in China is subject to limitations, procedures and formalities. Regulations in the PRC currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in China. Fengyuan Beijing and Zhuoxun Beijing are also required to set aside at least 10% of its after-tax profit based on PRC accounting standards each year to its statutory reserves account until the accumulative amount of such reserves reaches 50% of its respective registered capital. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. In addition, the Company’s operations are conducted and revenues are generated in China, and all of the Company’s revenues earned and currency received are denominated in RMB. RMB is subject to the foreign exchange control regulation in China, and, as a result, the Company may be unable to distribute any dividends outside of China due to PRC foreign exchange control regulations that restrict the Company’s ability to convert RMB into U.S. dollars. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Issued But Not Yet Adopted Financial Instruments. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses (Topic 326)” (“ASU 2016-13”). ASU 2016-13 revises the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. Originally, ASU 2016-13 was effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. In November 2019, FASB issued ASU 2019-10, “Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842).” This ASU defers the effective date of ASU 2016-13 for public companies that are considered smaller reporting companies as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is planning to adopt this standard in the first quarter of fiscal 2023. The Company is currently evaluating the potential effects of adopting the provisions of ASU No. 2016-13 on its consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, which requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, as if it had originated the contracts. Prior to this ASU, an acquirer generally recognizes contract assets acquired and contract liabilities assumed that arose from contracts with customers at fair value on the acquisition date. The ASU is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The ASU is to be applied prospectively to business combinations occurring on or after the effective date of the amendment (or if adopted early as of an interim period, as of the beginning of the fiscal year that includes the interim period of early application). The Company is currently assessing this standard’s impact on its consolidated financial statements. Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have material impact on the consolidated financial position, statements of operations and cash flows. |
Organization and Business (Tabl
Organization and Business (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of ownership | Name Background Ownership Dyckmanst Limited ● A British Virgin Islands company Holding Entity ● Principal activities: Investment holding Edeshler Limited ● A Hong Kong company 100% ● Principal activities: Investment holding Beijing Fengyuan Zhihui Education Technology Co., Ltd. ● A PRC limited liability company and deemed a wholly foreign-invested enterprise 100% ● Principal activities: Consultancy and information technology support Beijing Zhuoxun Century Culture ● A PRC limited liability company VIE by contractual ● Incorporated on September 2, 2020 arrangements ● Principal activities: family education services via online and onsite classes Beijing Zhuoxun Education Technology Co., Ltd. ● A PRC limited liability company 70% owned by VIE ● Principal activities: promotion and support |
Schedule of consolidated financial statements | At At 2022 2021 (Unaudited) CURRENT ASSETS Cash and cash equivalents $ 1,008,334 $ 2,559,546 Other monetary funds 9,713 506 Accounts receivable, net 24,883 - Prepayment 614,201 618,325 Other receivables 90,774 183,900 Intercompany receivables 182,208 189,021 Due from related parties 66,897 51,276 Inventory 404,719 414,063 Total Current Assets 2,401,729 4,016,637 NON-CURRENT ASSETS Other long-term assets 249,977 798,518 Property, plant and equipment, net 171,702 217,365 Intangible assets 62,850 73,183 Deferred tax asset 1,852,836 1,922,113 Total non-Current Assets 2,337,365 3,011,179 TOTAL ASSETS $ 4,739,094 $ 7,027,816 CURRENT LIABILITIES Accounts payable $ 2,331,260 $ 2,368,900 Contract liability 147,766 170,430 Amount due to related parties 14 1 Payroll payable 815,643 843,237 Tax payable 5,785,941 5,918,303 Other payable 186,753 13,892 Total Current Liabilities 9,267,377 9,314,763 TOTAL LIABILITIES $ 9,267,377 $ 9,314,763 |
Schedule of consolidated statements of operations | For The Three Months Ended For The Nine Months Ended June 30, June 30, 2022 2021 2022 2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited) REVENUES Training revenue $ 590,055 $ 33,050 $ 1,112,050 $ 1,312,870 Charge for use of brand 297,862 - 297,862 - Other revenues 77,625 319 97,076 1,302 Total revenues 965,542 33,369 1,506,988 1,314,172 NET (LOSS) INCOME $ (482,843 ) $ (1,675,217 ) $ (2,453,074 ) $ (6,237,655 ) |
Schedule of consolidated statements of cash flows | For The Nine Months Ended June 30, 2022 2021 (Unaudited) (Unaudited) Net cash used in operating activities $ (1,523,911 ) $ (3,488,115 ) Net cash provided by (used in) investing activities (10,820 ) (79,289 ) Net cash provided by financing activities - - |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of revenue by major product line | For The Three Months Ended For The Nine Months Ended June 30, June 30, 2022 2021 2022 2021 Training revenue $ 590,055 $ 33,050 $ 1,112,050 $ 1,312,870 Charge for use of brand 297,862 - 297,862 - Other revenues 77,625 319 97,076 1,302 Total Revenue $ 965,542 $ 33,369 $ 1,506,988 $ 1,314,172 |
Schedule of exchange rates | Balance sheet items, except for equity accounts June 30, 2022 RMB6.6981 to $1 September 30, 2021 RMB6.4567 to $1 Income statement and cash flows items For the Nine months ended June 30, 2022 RMB6.4504 to $1 For the Nine months ended June 30, 2021 RMB6.5204 to $1 |
Schedule of estimated useful lives of the assets | Estimated Office and computer equipment 5 Lease improvement 3 Transportation equipment 5 |
Schedule of intangible assets | Estimated Software 10 |
Prepayments (Tables)
Prepayments (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Prepayments [Abstract] | |
Schedule of prepayments | June 30, September 30, Prepaid marketing fee $ 192,741 $ 193,443 Prepaid service fee 380,923 388,125 Prepaid rent 40,537 36,757 Prepaid other expense - - $ 614,201 $ 618,325 |
Other Receivables (Tables)
Other Receivables (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule of amount due from agents | June 30, September 30, Amount due from third parties 15,560 140,996 Amount due from employees 48,760 38,107 Deposit & guarantee 53,443 30,388 Others 16,920 19,961 $ 134,683 $ 229,452 Less: allowance for doubtful accounts (29,686 ) (30,796 ) $ 104,997 $ 198,656 |
Schedule of allowance for doubtful accounts | June 30, September 30, 2022 2021 Beginning $ 30,796 $ 294,063 Additions - 30,556 Write off bad debt - (307,441 ) Exchange rate difference (1,110 ) 13,618 Balance $ 29,686 $ 30,796 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of company’s sole inventory | June 30, September 30, 2022 2021 Cost $ 407,818 $ 417,278 Less: provision for inventory (3,099 ) (3,215 ) Net amount $ 404,719 $ 414,063 |
Schedule of movement of provision for the inventory | June 30, September 30, 2022 2021 Beginning $ 3,215 $ 19,881 Additions - - Charge-offs - (17,589 ) Exchange rate difference (116 ) 923 Balance $ 3,099 $ 3,215 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of prepaid marketing fees | June 30, September 30, 2022 2021 Prepaid marketing fee $ 164,675 $ 733,665 Prepaid service fee 85,302 64,853 $ 249,977 $ 798,518 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | June 30, September 30, 2022 2021 Office and computer equipment $ 296,458 $ 378,818 Lease improvement 127,648 132,421 Transportation equipment 79,127 - Less: Accumulated depreciation $ (331,531 ) $ (293,874 ) $ 171,702 $ 217,365 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible assets, net | June 30, September 30, 2022 2021 Software $ 102,611 $ 106,448 Less: Accumulated amortization (39,761 ) (33,265 ) $ 62,850 $ 73,183 |
Accounts Payable (Tables)
Accounts Payable (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of accounts payable | June 30, September 30, 2022 2021 Amount due to agents $ 1,349,365 $ 1,350,292 Amount due to other service providers 981,895 1,018,608 $ 2,331,260 $ 2,368,900 |
Balances with Related Parties (
Balances with Related Parties (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of related Parties | June 30, September 30, Note 2022 2021 Due from related parties Yulong Yi (a) $ 49,458 $ 32,727 Ru Zhang (b) 6,251 6,486 Shaowei Peng (c) 11,188 12,063 $ 66,897 $ 51,276 Due to related parties Yulong Yi (a) $ 522 $ 542 Ru Zhang (b) - 1 Shaowei Peng (c) 15 - $ 537 $ 543 (a) Chairman of Beijing ZhuoXun Century Culture Communication Co., Ltd. and Chairman and legal representative of Beijing Fengyuan Zhihui Education Technology Co., Ltd. And holds 46% voting rights of Beijing ZhuoXun Century Culture Communication Co., Ltd. (b) Holder of 11% registed capital of Beijing ZhuoXun Century Culture Communication Co., Ltd. (c) CTO of Beijing ZhuoXun Century Culture Communication Co., Ltd. and Director of WFOE |
Taxes (Tables)
Taxes (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of subject to corporate income tax | For The Three Months Ended For The Nine Months Ended June 30, June 30, 2022 2021 2022 2021 PRC $ (482,843 ) $ (2,083,648 ) $ (2,453,074 ) $ (6,720,938 ) Total income (loss) before income taxes $ (482,843 ) $ (2,083,648 ) $ (2,453,074 ) $ (6,720,938 ) |
Schedule of deferred tax asset and liability | June 30, September 30, 2022 2021 Deferred tax asset: Bad debt provision 7,421 7,699 Inventory provision 775 804 Tax loss carryforward $ 1,844,640 $ 1,916,369 1,852,836 1,924,872 Deferred tax liability: Depreciation $ - $ 2,759 Net amount 1,852,836 1,922,113 |
Schedule of taxes payable | June 30, September 30, 2022 2021 VAT tax payable $ 1,432,113 $ 1,408,729 Company income tax payable 2,034,043 2,110,094 Individual income tax payable 2,142,118 2,223,544 Other taxes payable 177,667 175,936 Totals $ 5,785,941 $ 5,918,303 |
Organization and Business (Deta
Organization and Business (Details) - $ / shares | 9 Months Ended | |
Jun. 30, 2022 | Jul. 30, 2021 | |
Organization and Business (Details) [Line Items] | ||
Shares of common stock | 381,600,000 | |
Common stock per share (in Dollars per share) | $ 0.0001 | |
Common stock outstanding | 410,618,750 | |
Preferred stock issued | 1,000,000 | |
Voting power rate | 90.72% | |
Share Exchange Agreement [Member] | ||
Organization and Business (Details) [Line Items] | ||
Ownership consideration percentage | 100% | |
Series A Preferred Stock [Member] | ||
Organization and Business (Details) [Line Items] | ||
Aggregate shares | 30,000,000 | |
Preferred stock per share (in Dollars per share) | $ 0.0001 | |
Preferred Stock shares for cancellation | 29,000,000 | |
Consulting Service Agreement [Member] | ||
Organization and Business (Details) [Line Items] | ||
Agreement valid term | 10 years | |
Business Operation Agreement [Member] | ||
Organization and Business (Details) [Line Items] | ||
Business operation agreement term | 10 years | |
Proxy Agreement [Member] | ||
Organization and Business (Details) [Line Items] | ||
Business operation agreement term | 10 years | |
Equity Disposal Agreement [Member] | ||
Organization and Business (Details) [Line Items] | ||
Agreement valid term | 10 years |
Organization and Business (De_2
Organization and Business (Details) - Schedule of ownership | 9 Months Ended |
Jun. 30, 2022 | |
Dyckmanst Limited [Member] | |
Other Ownership Interests [Line Items] | |
Nature of related party transaction | A British Virgin Islands company |
Ownership of principal activities | Holding Entity |
Dyckmanst Limited One [Member] | |
Other Ownership Interests [Line Items] | |
Nature of related party transaction | Principal activities: Investment holding |
Edeshler Limited [Member] | |
Other Ownership Interests [Line Items] | |
Nature of related party transaction | A Hong Kong company |
Ownership of principal activities | 100% |
Edeshler Limited One [Member] | |
Other Ownership Interests [Line Items] | |
Nature of related party transaction | Principal activities: Investment holding |
Beijing Fengyuan Zhihui Education Technology Co., Ltd. [Member] | |
Other Ownership Interests [Line Items] | |
Nature of related party transaction | A PRC limited liability company and deemed a wholly foreign-invested enterprise |
Ownership of principal activities | 100% |
Beijing Fengyuan Zhihui Education Technology Co., Ltd. One [Member] | |
Other Ownership Interests [Line Items] | |
Nature of related party transaction | Principal activities: Consultancy and information technology support |
Beijing Zhuoxun Century Culture Communication [Member] | |
Other Ownership Interests [Line Items] | |
Nature of related party transaction | A PRC limited liability company |
Ownership of principal activities | VIE by contractual |
Beijing Zhuoxun Century Culture Communication Co., Ltd. One [Member] | |
Other Ownership Interests [Line Items] | |
Nature of related party transaction | Incorporated on September 2, 2020 |
Ownership of principal activities | arrangements |
Beijing Zhuoxun Century Culture Communication Co., Ltd. Two [Member] | |
Other Ownership Interests [Line Items] | |
Nature of related party transaction | Principal activities: family education services via online and onsite classes |
Beijing Zhuoxun Education Technology Co., Ltd. [Member] | |
Other Ownership Interests [Line Items] | |
Nature of related party transaction | A PRC limited liability company |
Ownership of principal activities | 70% owned by VIE |
Beijing Zhuoxun Education Technology Co., Ltd. One [Member] | |
Other Ownership Interests [Line Items] | |
Nature of related party transaction | Principal activities: promotion and support |
Organization and Business (De_3
Organization and Business (Details) - Schedule of consolidated financial statements - VIE [Member] - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,008,334 | $ 2,559,546 |
Other monetary funds | 9,713 | 506 |
Accounts receivable, net | 24,883 | |
Prepayment | 614,201 | 618,325 |
Other receivables | 90,774 | 183,900 |
Intercompany receivables | 182,208 | 189,021 |
Due from related parties | 66,897 | 51,276 |
Inventory | 404,719 | 414,063 |
Total Current Assets | 2,401,729 | 4,016,637 |
NON-CURRENT ASSETS | ||
Other long-term assets | 249,977 | 798,518 |
Property, plant and equipment, net | 171,702 | 217,365 |
Intangible assets | 62,850 | 73,183 |
Deferred tax asset | 1,852,836 | 1,922,113 |
Total non-Current Assets | 2,337,365 | 3,011,179 |
TOTAL ASSETS | 4,739,094 | 7,027,816 |
CURRENT LIABILITIES | ||
Accounts payable | 2,331,260 | 2,368,900 |
Contract liability | 147,766 | 170,430 |
Amount due to related parties | 14 | 1 |
Payroll payable | 815,643 | 843,237 |
Tax payable | 5,785,941 | 5,918,303 |
Other payable | 186,753 | 13,892 |
Total Current Liabilities | 9,267,377 | 9,314,763 |
TOTAL LIABILITIES | $ 9,267,377 | $ 9,314,763 |
Organization and Business (De_4
Organization and Business (Details) - Schedule of consolidated statements of operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
REVENUES | ||||
Training revenue | $ 590,055 | $ 33,050 | $ 1,112,050 | $ 1,312,870 |
Charge for use of brand | 297,862 | 297,862 | ||
Other revenues | 77,625 | 319 | 97,076 | 1,302 |
Total revenues | 965,542 | 33,369 | 1,506,988 | 1,314,172 |
NET (LOSS) INCOME | $ (482,843) | $ (1,675,217) | $ (2,453,074) | $ (6,237,655) |
Organization and Business (De_5
Organization and Business (Details) - Schedule of consolidated statements of cash flows - VIE [Member] - USD ($) | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash used in operating activities | $ (1,523,911) | $ (3,488,115) |
Net cash provided by (used in) investing activities | (10,820) | (79,289) |
Net cash provided by financing activities |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 9 Months Ended |
Jun. 30, 2022 USD ($) | |
Accounting Policies [Abstract] | |
Current assets | $ 6,976,770 |
Accumulated deficit | $ 5,060,951 |
After tax profit | 10% |
Registered capital | 50% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of revenue by major product line - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue, Major Customer [Line Items] | ||||
Total Revenue | $ 965,542 | $ 33,369 | $ 1,506,988 | $ 1,314,172 |
Training Revenue [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Revenue | 590,055 | 33,050 | 1,112,050 | 1,312,870 |
Charge for use of brand [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Revenue | 297,862 | 297,862 | ||
Other Revenue [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Revenue | $ 77,625 | $ 319 | $ 97,076 | $ 1,302 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of exchange rates | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 $ / shares | Jun. 30, 2022 ¥ / shares | Jun. 30, 2021 $ / shares | Jun. 30, 2021 ¥ / shares | Sep. 30, 2021 $ / shares | Sep. 30, 2021 ¥ / shares | |
Balance sheet items, except for equity accounts | ||||||
Balance sheet items, except for equity accounts | (per share) | $ 1 | ¥ 6.6981 | $ 1 | ¥ 6.4567 | ||
Income statement and cash flows items | ||||||
Income statement and cash flows items | (per share) | $ 1 | ¥ 6.4504 | $ 1 | ¥ 6.5204 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of the assets - Estimated useful lives [Member] | 9 Months Ended |
Jun. 30, 2022 | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Office and computer equipment | 5 years |
Lease improvement | 3 years |
Transportation equipment | 5 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of intangible assets | 9 Months Ended |
Jun. 30, 2022 | |
Schedule of Intangible Assets [Abstract] | |
Software | 10 years |
Prepayments (Details) - Schedul
Prepayments (Details) - Schedule of prepayments - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Schedule of Prepayments [Abstract] | ||
Prepaid marketing fee | $ 192,741 | $ 193,443 |
Prepaid service fee | 380,923 | 388,125 |
Prepaid rent | 40,537 | 36,757 |
Prepaid other expense | ||
Total | $ 614,201 | $ 618,325 |
Other Receivables (Details) - S
Other Receivables (Details) - Schedule of amount due from agents - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Schedule of Amount Due From Agents [Abstract] | ||
Amount due from third parties | $ 15,560 | $ 140,996 |
Amount due from employees | 48,760 | 38,107 |
Deposit & guarantee | 53,443 | 30,388 |
Others | 16,920 | 19,961 |
Total | 134,683 | 229,452 |
Less: allowance for doubtful accounts | (29,686) | (30,796) |
Total | $ 104,997 | $ 198,656 |
Other Receivables (Details) -_2
Other Receivables (Details) - Schedule of allowance for doubtful accounts - USD ($) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Schedule of Allowance For Doubtful Accounts [Abstract] | ||
Beginning | $ 30,796 | $ 294,063 |
Additions | 30,556 | |
Write off bad debt | (307,441) | |
Exchange rate difference | (1,110) | 13,618 |
Balance | $ 29,686 | $ 30,796 |
Inventory (Details) - Schedule
Inventory (Details) - Schedule of company’s sole inventory - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Schedule Of Company SSole Inventory Abstract | ||
Cost | $ 407,818 | $ 417,278 |
Less: provision for inventory | (3,099) | (3,215) |
Net amount | $ 404,719 | $ 414,063 |
Inventory (Details) - Schedul_2
Inventory (Details) - Schedule of movement of provision for the inventory - USD ($) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Schedule Of Movement Of Provision For The Inventory Abstract | ||
Beginning balance | $ 3,215 | $ 19,881 |
Additions | ||
Charge-offs | (17,589) | |
Exchange rate difference | (116) | 923 |
Ending balance | $ 3,099 | $ 3,215 |
Other Long-Term Assets (Details
Other Long-Term Assets (Details) - Schedule of prepaid marketing fees - USD ($) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Schedule Of Prepaid Marketing Fees Abstract | ||
Prepaid marketing fee | $ 164,675 | $ 733,665 |
Prepaid service fee | 85,302 | 64,853 |
Total | $ 249,977 | $ 798,518 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expenses | $ 18,185 | $ 30,785 | $ 37,657 | $ 80,534 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Details) - Schedule of property, plant and equipment - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Less: Accumulated depreciation | $ (331,531) | $ (293,874) |
Property, plant and equipment net | 171,702 | 217,365 |
Office and computer equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 296,458 | 378,818 |
Lease improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 127,648 | 132,421 |
Transportation equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 79,127 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of Intangible Assets | $ 2,614 | $ 2,661 | $ 6,496 | $ 7,906 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of Intangible assets, net - USD ($) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Schedule Of Intangible Assets Net Abstract | ||
Software | $ 102,611 | $ 106,448 |
Less: Accumulated amortization | (39,761) | (33,265) |
Total | $ 62,850 | $ 73,183 |
Accounts Payable (Details) - Sc
Accounts Payable (Details) - Schedule of accounts payable - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Schedule Of Accounts Payable Abstract | ||
Amount due to agents | $ 1,349,365 | $ 1,350,292 |
Amount due to other service providers | 981,895 | 1,018,608 |
Total | $ 2,331,260 | $ 2,368,900 |
Balances with Related Parties_2
Balances with Related Parties (Details) | 9 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Voting rights percentage | 46% |
Register capital percentage | 11% |
Balances with Related Parties_3
Balances with Related Parties (Details) - Schedule of related Parties - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 | |
Due from related parties | |||
Due from related parties | $ 66,897 | $ 51,276 | |
Due to related parties | 537 | 543 | |
Yulong Yi [Member] | |||
Due from related parties | |||
Due from related parties | [1] | 49,458 | 32,727 |
Due to related parties | [1] | 522 | 542 |
Ru Zhang [Member] | |||
Due from related parties | |||
Due from related parties | [2] | 6,251 | 6,486 |
Due to related parties | [2] | 1 | |
Shaowei Peng [Member] | |||
Due from related parties | |||
Due from related parties | [3] | 11,188 | 12,063 |
Due to related parties | [3] | $ 15 | |
[1] Chairman of Beijing ZhuoXun Century Culture Communication Co., Ltd. and Chairman and legal representative of Beijing Fengyuan Zhihui Education Technology Co., Ltd. And holds 46% voting rights of Beijing ZhuoXun Century Culture Communication Co., Ltd. Holder of 11% registed capital of Beijing ZhuoXun Century Culture Communication Co., Ltd. CTO of Beijing ZhuoXun Century Culture Communication Co., Ltd. and Director of WFOE |
Taxes (Details)
Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Corporate income tax | 25% | 25% | 25% | 25% |
Taxes (Details) - Schedule of s
Taxes (Details) - Schedule of subject to corporate income tax - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule Of Subject To Corporate Income Tax Abstract | ||||
PRC | $ (482,843) | $ (2,083,648) | $ (2,453,074) | $ (6,720,938) |
Total income (loss) before income taxes | $ (482,843) | $ (2,083,648) | $ (2,453,074) | $ (6,720,938) |
Taxes (Details) - Schedule of d
Taxes (Details) - Schedule of deferred tax asset and liability - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Deferred tax asset: | ||
Bad debt provision | $ 7,421 | $ 7,699 |
Inventory provision | 775 | 804 |
Tax loss carryforward | 1,844,640 | 1,916,369 |
Deferred tax asset | 1,852,836 | 1,924,872 |
Depreciation | 2,759 | |
Net amount | $ 1,852,836 | $ 1,922,113 |
Taxes (Details) - Schedule of t
Taxes (Details) - Schedule of taxes payable - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Schedule Of Taxes Payable Abstract | ||
VAT tax payable | $ 1,432,113 | $ 1,408,729 |
Company income tax payable | 2,034,043 | 2,110,094 |
Individual income tax payable | 2,142,118 | 2,223,544 |
Other taxes payable | 177,667 | 175,936 |
Totals | $ 5,785,941 | $ 5,918,303 |
China Contribution Plan (Detail
China Contribution Plan (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Contribution Plan [Abstract] | ||
Total contributed amount | $ 194,715 | $ 420,111 |
Subsequent Event (Details)
Subsequent Event (Details) - shares | 1 Months Ended | |
Oct. 31, 2022 | Jul. 31, 2022 | |
Subsequent Event [Member] | ||
Subsequent Event (Details) [Line Items] | ||
Issuance of an aggregate shares | 42,061,876 | |
Forecast [Member] | ||
Subsequent Event (Details) [Line Items] | ||
Equity incentive plan description | Pursuant to the terms of the Equity Incentive Plan and each Award Agreement, the Company will issue 14,301,038, 13,880,419, and 13,880,419 shares of Restricted Stock to Hao Wang, Brand Promotion Specialist, Bolei Liu, Marketing Service Specialist, and Deqiang Wen, Research & Development Manager, respectively which shall be vested on October 31, 2022, subject to participant’s continued employment with Zhuoxun Beijing until such time and other terms and conditions set forth therein. |