Document And Entity Information
Document And Entity Information - shares | 12 Months Ended | |
Sep. 30, 2022 | Feb. 14, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | Ostin Technology Group Co., Ltd. | |
Trading Symbol | OST | |
Document Type | 20-F | |
Current Fiscal Year End Date | --09-30 | |
Entity Common Stock, Shares Outstanding | 14,006,250 | |
Amendment Flag | false | |
Entity Central Index Key | 0001803407 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | FY | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
ICFR Auditor Attestation Flag | false | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Entity File Number | 001-41362 | |
Entity Incorporation, State or Country Code | E9 | |
Entity Address, Address Line One | Building 2, 101/201 | |
Entity Address, Address Line Two | 1 Kechuang Road | |
Entity Address, Address Line Three | Qixia District | |
Entity Address, City or Town | Nanjing | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 210046 | |
Title of 12(b) Security | Ordinary shares, par value $0.0001 per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Document Accounting Standard | U.S. GAAP | |
Auditor Firm ID | 6706 | |
Auditor Name | TPS Thayer, LLC | |
Auditor Location | Sugar Land, Texas | |
Business Contact | ||
Document Information Line Items | ||
Entity Address, Address Line One | Building 2, 101/201 | |
Entity Address, Address Line Two | 1 Kechuang Road | |
Entity Address, Address Line Three | Qixia District | |
Entity Address, City or Town | Nanjing | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 210046 | |
Contact Personnel Name | Tao Ling | |
City Area Code | +86 | |
Local Phone Number | (25) 58595234 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 3,655,947 | $ 684,335 |
Restricted cash | 150,973 | |
Accounts receivable, net of allowance for doubtful accounts of $31,997 and $94,166, respectively | 6,270,505 | 25,551,527 |
Notes receivable | 101,361 | |
Inventories, net | 15,432,712 | 18,686,680 |
Advances to suppliers, net | 6,097,833 | 7,300,770 |
Tax receivables | 92,749 | 443,173 |
Prepaid expenses and other receivables | 207,584 | 1,426,790 |
Total Current Assets | 31,908,303 | 54,194,636 |
Property, plant and equipment, net | 19,415,829 | 19,368,333 |
Land use rights, net | 1,284,591 | 1,497,579 |
Intangible assets, net | 2,968,745 | 127,129 |
Deferred tax assets, net | 566,404 | 673,179 |
Long-term investment | 210,867 | |
Right-of-use lease assets | 5,571 | 105,625 |
Other long-term receivables | 823,116 | |
TOTAL ASSETS | 57,183,426 | 75,966,481 |
Current Liabilities | ||
Accounts payable | 6,279,484 | 17,618,986 |
Accrued expenses and other current liabilities | 1,950,122 | 2,632,370 |
Advances from customers | 1,415,175 | 4,506,016 |
Due to related parties | 477,964 | 3,197,070 |
Short-term borrowings | 21,292,963 | 32,417,418 |
Operating lease liabilities – current | 89,917 | 193,161 |
Total Current Liabilities | 31,505,625 | 60,565,021 |
Operating lease liabilities – non-current | 5,583 | |
Long-term liability | 194,022 | |
Other long-term payables | 52,590 | |
TOTAL LIABILITIES | 31,558,215 | 60,764,626 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY | ||
Common stock, $0.0001 par value, 500,000,000 shares authorized, 14,006,250 and 10,250,000 shares issued and outstanding as of September 30, 2022 and 2021 | 1,401 | 1,013 |
Additional paid-in capital | 23,256,219 | 10,856,169 |
Statutory reserves | 1,496,314 | 1,033,653 |
Retained earnings | 2,484,385 | 2,748,068 |
Accumulated other comprehensive loss | (1,902,108) | (316,017) |
Total Equity Attributable to Ostin Technology Group Co., Ltd. | 25,336,211 | 14,322,886 |
Equity attributable to non-controlling interests | 289,000 | 878,969 |
Total Shareholders’ Equity | 25,625,211 | 15,201,855 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 57,183,426 | $ 75,966,481 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Net of allowance for doubtful accounts (in Dollars) | $ 31,997 | $ 94,166 |
Common stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 14,006,250 | 10,250,000 |
Common stock, shares outstanding | 14,006,250 | 10,250,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | |||
Sales | $ 105,416,746 | $ 167,744,801 | $ 140,073,917 |
Cost of sales | (92,804,431) | (150,385,723) | (128,489,255) |
Gross profit | 12,612,315 | 17,359,078 | 11,584,662 |
Operating expenses: | |||
Selling and marketing expenses | (2,793,197) | (3,965,790) | (2,172,393) |
General and administrative expenses | (7,649,241) | (4,990,951) | (3,123,219) |
Research and development costs | (2,515,239) | (5,712,792) | (2,828,718) |
Gain from disposal of property, plant and equipment | 795,783 | 527,818 | |
Total operating expenses | (12,161,894) | (14,141,715) | (8,124,330) |
Operating income | 450,421 | 3,217,363 | 3,460,332 |
Other income (expenses): | |||
Interest income (expense), net | (1,290,811) | (1,112,045) | (688,401) |
Other income (expenses), net | 1,279,559 | 1,133,103 | (67,370) |
Total other income (expenses), net | (11,252) | 21,058 | (755,771) |
Income before income taxes | 439,169 | 3,238,421 | 2,704,561 |
Income tax provision | (326,942) | 57,086 | 126,725 |
Net income | 112,227 | 3,295,507 | 2,831,286 |
Net income (loss) attributable to non-controlling interests | (86,751) | 196,564 | 117,175 |
Net income attributable to Ostin Technology Group Co., Ltd. | 198,978 | 3,098,943 | 2,714,111 |
Net income | 112,227 | 3,295,507 | 2,831,286 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | (1,716,150) | 272,591 | 415,403 |
Comprehensive (loss) income | (1,603,923) | 3,568,098 | 3,246,689 |
Comprehensive (loss) income attributable to non-controlling interests | (216,810) | 219,497 | 126,444 |
Comprehensive (loss) income attributable to Ostin Technology Group Co., Ltd. | $ (1,387,113) | $ 3,348,601 | $ 3,120,245 |
Earnings per ordinary share | |||
Basic and diluted (in Dollars per share) | $ 0.02 | $ 0.3 | $ 0.27 |
Weighted average number of ordinary shares outstanding | |||
Basic and diluted (in Shares) | 11,773,202 | 10,125,000 | 10,125,000 |
Consolidated Statements of In_2
Consolidated Statements of Income and Comprehensive Income (Parentheticals) - $ / shares | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | |||
Diluted earning per ordinary share | $ 0.01 | $ 0.30 | $ 0.27 |
Diluted weighted average number of ordinary shares outstanding | 11,773,202 | 10,125,000 | 10,125,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity - USD ($) | Common Stock | Additional paid-in capital | Statutory reserves | Retained Earnings | Accumulated other comprehensive income (loss) | Non- controlling interests | Total |
Balance at Sep. 30, 2019 | $ 1,013 | $ 10,257,031 | $ 473,440 | $ (2,504,773) | $ (971,809) | $ 434,534 | $ 7,689,436 |
Balance (in Shares) at Sep. 30, 2019 | 10,125,000 | ||||||
Stock offering for cash, net of offering costs | 98,494 | 98,494 | |||||
Imputed interest | 228,291 | 228,291 | |||||
Foreign currency translation gain | 406,134 | 9,269 | 415,403 | ||||
Net income (loss) | 190,335 | 2,523,776 | 117,175 | 2,831,286 | |||
Balance at Sep. 30, 2020 | $ 1,013 | 10,485,322 | 663,775 | 19,003 | (565,675) | 659,472 | 11,262,910 |
Balance (in Shares) at Sep. 30, 2020 | 10,125,000 | ||||||
Imputed interest | 370,847 | 370,847 | |||||
Foreign currency translation gain | 249,658 | 22,933 | 272,591 | ||||
Net income (loss) | 369,878 | 2,729,065 | 196,564 | 3,295,507 | |||
Balance at Sep. 30, 2021 | $ 1,013 | 10,856,169 | 1,033,653 | 2,748,068 | (316,017) | 878,969 | 15,201,855 |
Balance (in Shares) at Sep. 30, 2021 | 10,125,000 | ||||||
Capital contribution | 45,779 | 45,779 | |||||
Dividends to non-controlling interests | (88,870) | (88,870) | |||||
Foreign currency translation gain | (1,586,091) | (130,059) | (1,716,150) | ||||
Net income (loss) | 462,661 | (263,683) | (86,751) | 112,227 | |||
Acquisition of non-controlling interest | (8,584) | (330,068) | (338,652) | ||||
Initial public offering | $ 388 | 12,408,634 | 12,409,022 | ||||
Initial public offering (in Shares) | 3,881,250 | ||||||
Balance at Sep. 30, 2022 | $ 1,401 | $ 23,256,219 | $ 1,496,314 | $ 2,484,385 | $ (1,902,108) | $ 289,000 | $ 25,625,211 |
Balance (in Shares) at Sep. 30, 2022 | 14,006,250 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities: | |||
Net income | $ 112,227 | $ 3,295,507 | $ 2,831,286 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation expense | 2,309,263 | 1,841,250 | 1,080,675 |
Amortization expense of land use rights | 78,926 | 85,842 | 18,447 |
Amortization expense of intangible assets | 214,703 | 199,913 | 327,636 |
Amortization expense of right-of-use assets | 53,627 | 114,387 | |
Bad debt expense for accounts receivable | (60,982) | 94,166 | 233,824 |
Bad debt expense for advances to suppliers | 228,251 | 311,811 | |
Inventory provision | 21,962 | 780,366 | 288,411 |
Deferred tax assets, net | 106,775 | 208,832 | (299,996) |
Gain from disposal of property, plant and equipment | (795,783) | (527,818) | |
Imputed interest for short-term borrowings from third parties | 370,847 | 228,291 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 18,373,339 | (15,163,687) | (6,710,021) |
Notes receivable | 99,663 | 2,129,820 | (1,887,698) |
Inventories | 1,599,407 | (559,724) | (5,752,729) |
Advances to suppliers | 330,995 | 1,378,929 | (2,130,279) |
Prepaid expenses and other receivables | 1,177,551 | (854,448) | 50,864 |
Other long-term receivables | (893,493) | ||
Accounts payable | (10,507,396) | (6,781,879) | 11,538,662 |
Accrued expenses and other current liabilities | (194,934) | (3,614,350) | 5,192,485 |
Advances from customers | (2,894,344) | (1,542,196) | 2,945,080 |
Income tax payable | 335,069 | 590,588 | (230,257) |
Operating lease liabilities | (53,629) | (22,415) | |
Other long-term payables | 57,086 | ||
Net cash (used in) provided by operating activities | 9,698,283 | (17,664,259) | 7,724,681 |
Cash Flows from Investing Activities: | |||
Purchases of property, plant and equipment | (5,122,095) | (6,211,335) | (3,701,172) |
Disposal of property, plant and equipment | 1,515,045 | 1,024,990 | |
Purchases of intangible assets | (3,060,601) | (11,568) | (1,475,783) |
Long-term investment | (210,867) | ||
Net cash used in investing activities | (6,878,518) | (5,197,913) | (5,176,956) |
Cash Flows from Financing Activities: | |||
Proceeds received from stock issuance | 12,409,022 | 98,494 | |
Repayment of notes payable | (1,070,573) | ||
Proceeds from (Repayments to) long-term liability | (873,401) | 93,928 | |
Proceeds from short-term bank borrowings | 15,706,830 | 17,850,026 | 9,335,389 |
Repayments on short-term bank borrowings | (16,243,972) | (12,569,361) | (8,007,879) |
Proceeds from short-term borrowings from third party individuals | 1,290,972 | 16,872,476 | 5,838,187 |
Repayments on short-term borrowings from third party individuals | (9,652,990) | (5,890,252) | (6,254,364) |
Proceeds from related parties | 2,746,749 | 9,092,860 | 3,004,804 |
Repayments to related parties | (5,371,422) | (6,885,557) | (2,733,592) |
Net cash provided by financing activities | 11,788 | 18,564,120 | 210,464 |
Effect of changes in currency exchange rates | 291,032 | (379,135) | 133,202 |
Net (decrease) increase in cash and cash equivalents | 3,122,585 | (4,677,187) | 2,891,392 |
Cash, cash equivalents and restricted cash at the beginning of year | 684,335 | 5,361,522 | 2,470,130 |
Cash and cash equivalents and restricted cash at the end of year | 3,806,920 | 684,335 | 5,361,522 |
Reconciliation of cash, cash equivalents and restricted cash to the Consolidated Balance Sheets | |||
Cash and cash equivalents | 3,655,947 | 684,335 | 5,343,434 |
Restricted cash | 150,973 | 18,088 | |
Total cash, cash equivalents and restricted cash | 3,806,920 | 684,335 | 5,361,522 |
Supplemental disclosures of cash flows information: | |||
Cash paid for income taxes | 241,697 | 374,951 | 268,724 |
Cash paid for interest | $ 1,010,897 | $ 751,658 | $ 527,027 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Sep. 30, 2022 | |
Organization and Nature of Operations [Abstract] | |
ORGANIZATION AND NATURE OF OPERATIONS | NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS Ostin Technology Group Co., Ltd. (“Ostin”) is a holding company incorporated on September 26, 2019 under the laws of the Cayman Islands. Ostin and its subsidiaries are collectively referred to as the “Company”. The Company engages in the business of designing, developing and manufacturing TFT-LCD modules and polarizers in a wide range of sizes and customized size according to the specifications of the customers utilizing automated production technique. The company currently operates one headquarter and three manufacturing facilities in China with an aggregate of 54,759 square meters – one factory is located in Jiangsu Province for the manufacture of display modules, one facility is in Sichuan Province for the manufacture of polarizers. The third manufacturing facilities is in Luzhou, Sichuan Province, for manufacture of display modules primarily to be used in devices in the education sector and commenced production in August 2020. The Company’s principal executive offices are located in Jiangsu Province, the People’s Republic of China (the “PRC” or “China”). Reorganization A reorganization of the Company’s legal structure was completed in June 2020. The reorganization involved (i) the incorporation of Ostin, a Cayman Islands company; Ostin Technology Holdings Limited (“Ostin BVI”), a British Virgin Islands company and a wholly owned subsidiary of Ostin; Ostin Technology Limited (“Ostin HK”), a Hong Kong company and a wholly owned subsidiary of Ostin BVI; and Nanjing Aosa Technology Development Co., Ltd. (“Nanjing Aosa”), a PRC limited liability company and a wholly owned subsidiary of Ostin HK; and (ii) the entry into a series of contractual arrangements (the “VIE Agreements”) by and between Nanjing Aosa and certain shareholders of Jiangsu Austin Optronics Technology Co., Ltd. (“Jiangsu Austin”) which was a PRC company limited by shares formed in December 2010 and has been the primary operating company of the Company in China. Ostin, Ostin BVI, Ostin HK, and Nanjing Aosa are all holding companies and have not commenced operations. Prior to the reorganization, Mr. Tao Ling, Mr. Xiaohong Yin and 54 other shareholders (collectively and excluding Suhong Yuanda (as defined below), the “VIE Shareholders”) collectively owned 87.88% of the outstanding shares of Jiangsu Austin and Mr. Tao Ling, through Beijing Suhongyuanda Science and Technology Co., Ltd. (“Suhong Yuanda”) of which he was the sole shareholder, controlled 9.97% of the outstanding shares of Jiangsu Austin. On June 29, 2020, Mr. Tao Ling transferred his 100% equity interests in Suhong Yuanda to Nanjing Aosa. In June 2020, Nanjing Aosa entered into the VIE Agreements with the VIE Shareholders. After the reorganization, Ostin, through its subsidiary and the VIE arrangement, controls an aggregate of 97.85% of the outstanding shares of Jiangsu Austin. The VIE Shareholders collectively own 100% of the outstanding ordinary shares of Ostin, of which 39.99% and 9.51%, respectively, is owned by Mr. Tao Ling and Mr. Xiaohong Yin through their wholly owned holding companies. Termination of the VIE Arrangements In August 2021, shareholders of Jiangsu Austin entered into shares transfer agreements with the Company. Pursuant to the agreement, they agreed to transfer an aggregate of 39.97% of shares of Jiangsu Austin, which resulted in Nanjing Aosa, the Company’s WFOE, holding an aggregate of 97.85% of the shares of Jiangsu Austin following the completion of the share transfers. In February 2022, the Company fully terminated the VIE Arrangements and completed the reorganization of its corporate structure. As a result, the Company holds 97.85% of the issued and outstanding shares of Jiangsu Austin. Termination of the VIE agreement does not have impact on the Company’s consolidated financial position, results of operations and cash flows. During the years presented in these consolidated financial statements, the control of the entities has never changed (always under the control of the Company). Accordingly, the combination has been treated as a corporate restructuring (“Reorganization”) of entities under common control and thus the current capital structure has been retroactively presented in prior periods as if such structure existed at that time and in accordance with ASC 805-50-45-5, the entities under common control are presented on a combined basis for all periods to which such entities were under common control. The consolidation of Ostin and its subsidiaries has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. Acquisition of non-controlling interest in Jiangsu Austin In June 2022, the Company’s PRC subsidiary, Nanjing Aosa Technology Development Co., Ltd. (“Nanjing Aosa”) entered into an equity transfer agreement to acquire the remaining 2.15% equity interests of Jiangsu Austin in consideration of $338,652 (RMB 2,409,000). The transaction to acquire the remaining 2.15% equity interests of Jiangsu Austin was closed in June 2022 and after the acquisition, Nanjing Aosa owns 100% of the equity interest of Jiangsu Austin. In USD Purchase consideration 338,652 Noncontrolling interests 330,068 Additional paid-in capital 8,584 338,652 The following diagram illustrates the Company’s corporate structure, including its subsidiaries as of the date of issuance of the consolidated financial statements: |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2022 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and principles of consolidation The accompanying consolidated financial statements and related notes have been prepared in accordance with generally accepted accounting principles in the United Stated of America (“U.S. GAAP”) and have been consistently applied. The consolidated financial statements include the financial statements of the Company and its subsidiaries. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Such estimates include, but are not limited to, allowances for doubtful accounts, inventory valuation, useful lives of property, plant and equipment, intangible assets, and income taxes related to realization of deferred tax assets and uncertain tax position. Actual results could differ from those estimates. Foreign currency translation The financial records of the Company’s subsidiaries in China are maintained in their local currencies which are Chinese Yuan (“RMB”). Monetary assets and liabilities denominated in currencies other than their local currencies are translated into local currencies at the rates of exchange in effect at the consolidated balance sheet dates. Transactions denominated in currencies other than their local currencies during the year are converted into local currencies at the applicable rates of exchange prevailing when the transactions occur. Transaction gains and losses are recorded in other income, net in the consolidated statements of income and comprehensive income. The Company and its subsidiaries in British Virgin Islands and Hong Kong maintained their financial record using the United States dollar (“USD”) as the functional currency, while the subsidiaries of the Company in mainland China maintained their financial records using RMB as the functional currency. The reporting currency of the Company is USD. When translating local financial reports of the Company’s subsidiaries into USD, assets and liabilities are translated at the exchange rates at the consolidated balance sheet date, equity accounts are translated at historical exchange rates and revenue, expenses, gains and losses are translated at the average rate for the period. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income in the consolidated statements of income and comprehensive income. The relevant exchange rates are listed below: September 30, September 30, September 30, Period ended RMB: USD exchange rate 7.1135 6.4434 6.7896 Period average RMB: USD exchange rate 6.5532 6.5238 7.0056 Cash and cash equivalents The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents. The Company maintains most of the bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. Restricted cash Restricted cash is cash held as collateral for the letters of credit the Company issued for its international transactions. Accounts receivable and allowance for doubtful accounts Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. Based on management of customers’ credit and ongoing relationship, management makes conclusions whether any balances outstanding at the end of the period will be deemed uncollectible on an individual basis and on an aging analysis basis. The provision is recorded against accounts receivable balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is principally determined using the weighted-average method. The Company records adjustments to inventory for excess quantities, obsolescence or impairment when appropriate to reflect inventory at net realizable value. These adjustments are based upon a combination of factors including current sales volume, market conditions, lower of cost or market analysis and expected realizable value of the inventory. Advances to suppliers Advances to suppliers refer to advances for purchase of materials or other services, which are applied against accounts payable when the materials or services are received. The Company reviews a supplier’s credit history and background information before advancing a payment. If the financial condition of its suppliers were to deteriorate, resulting in an impairment of their ability to deliver goods or provide services, the Company would write off such amount in the period when it is considered as impaired. The allowance for advances to suppliers recognized as of September 30, 2022 and 2021 were $496,531 and $311,811, respectively. Advances from customers Advances from customers refer to advances received from customers regarding product sales, for which revenue is recognized upon delivery. Property, plant and equipment, net Property, plant, and equipment are recorded at cost less accumulated depreciation. Depreciation commences upon placing the asset in usage and is recognized on a straight-line basis over the estimated useful lives of the assets with 5% of residual value, as follows: Useful Lives Buildings 20 years Machinery and equipment 5-10 years Transportation vehicles 4-5 years Office equipment 3-5 years Electronic equipment 3 years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses. Land use rights, net Under the PRC law, all land in the PRC is owned by the government and cannot be sold to an individual or company. The government grants individuals and companies the right to use parcels of land for specified periods of time. These land use rights are sometimes referred to informally as “ownership.” Land use rights are stated at cost less accumulated amortization. Rental period Land use rights 20-50 years Intangible assets, net Intangible assets consist of software and patent purchased from other companies and capitalized software developed by the Company, which are recorded at cost less accumulated amortization. Intangible assets are amortized using the straight-line method with the following estimated useful lives: Useful lives Software 3 years Patent 10 years Capitalized software represents software that is developed or purchased by an entity that will be sold, leased, or marketed as a stand-alone product as well as a software that will be sold as part of another product or process. All costs of developing software prior to establishing its technological feasibility are research and development costs and are expensed as incurred. Technological feasibility is achieved when an entity has completed all planning, designing, coding, and testing activities necessary to establish that the software product can be produced to meet its design specifications, including functions, features, and technical performance requirements. As described in ASC 985-20-25-1, this can be achieved through the use of either (1) a detail program design, or (2) the combination of a product design and working model, which have been confirmed for completeness by testing. Costs of developing software after establishing technological feasibility are recorded capitalized software. The capitalized costs of developing software that will be sold, leased, or marketed will be amortized separately for each software product. An entity will begin amortizing the capitalized costs of the software when the product first becomes available for general release to customers. For the year ended September 30, 2022, the Company purchased intangible assets from third parties, and engaged third parties to develop the intangible assets for the Company. Right of use lease assets The Company has two operating leases for manufacturing facilities and offices with no option to renew and the Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Effective October 1, 2019, the Company adopted the new lease accounting standard using a modified retrospective transition method which allowed the Company not to recast comparative periods presented in its consolidated financial statements. In addition, the Company elected the package of practical expedients, which allowed the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company combines the lease and non-lease components in determining the ROU assets and related lease obligation. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities as disclosed in financial statements and had no impact on accumulated deficit as of September 30, 2022. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term. Long-term investment Company’s long-term investment consists of equity investments without a readily determinable fair value. Under ASC Topic 321, Accounting for Equity Securities and Equity Investment Long-term liability The Company has four transactions with two third-party for manufacturing facilities where the Company sold certain machinery located in China and subsequently leased the machinery back for 24 months. In these arrangements, the Company has no obligation to transferring the underlying asset to an unaffiliated third party or has a bargain purchase option at a price of RMB 1 to buyback the underlying asset by the end of the lease term. All these machineries are currently being used by the Company for its production purpose. The Company determined that in these transactions, the control of the asset is not transferred for the following reasons: (1) under the circumstances of not paying the financial liabilities, the buyer-lessor has no call option on the asset; and (2) the seller-lessee has a call option on the asset, and a.) the option is exercisable at something other than fair value as of the exercise date, b.) no alternative assets are available that are substantially the same as the asset transferred. The Company concluded these transactions were not qualified as sale-leaseback accounting and shall account as normal borrowings from third parties. For accounting purposes, the Company did not derecognize the transferred asset and accounts for any amounts received as a financial liability measured at amortized cost subsequent to initial recognition. The balances with these third-party lenders as of September 30, 2022 and 2021 are as follows: September 30, September 30, Total loan payable $ 165,144 $ 1,070,602 Current portion of loan payable (included in accrued and other current liabilities) (165,144 ) (876,580 ) Long-term liability $ - $ 194,022 For the fiscal years ended September 30, 2022 and 2021, the Company recognized interest expense of $67,747 and $128,808 on these loan payables, respectively. Impairment of long-lived assets The Company’s management reviews the carrying values of long-lived assets whenever events and circumstances, such as a significant decline in the asset’s market value, obsolescence or physical damage affecting the asset, significant adverse changes in the assets use, deterioration in the expected level of the assets performance, cash flows for maintaining the asset are higher than forecast, indicate that the net book value of an asset may not be recovered through expected future cash flows from its use and eventual disposition. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. There was no impairment charge recognized for long-lived assets for the fiscal years ended September 30, 2022 and 2021. Fair value measurement Fair value measurements and disclosures requires disclosure of the fair value of financial instruments held by the Company. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: ● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology use one or more unobservable inputs which are significant to the fair value measurement. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. For the Company’s financial instruments, including cash and cash equivalents, accounts receivable, other receivables, accounts payable, due to related parties, notes receivable, notes payable, and short-term borrowing, the carrying amounts approximate their fair values due to their short maturities as of September 30, 2022 and 2021. Value-added tax (“VAT”) Sales revenue represents the invoiced value of goods, net of VAT. All of the Company’s products sold in the PRC are subject to a VAT on the gross sales price. The Company is subject a VAT rate of 13% effective on April 1, 2019. The VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing or acquiring its finished products. Revenue recognition The Company generates its revenues mainly from sales of display modules and polarizers to third-party customers, who are mainly display manufacturers and end-brand customers. The Company follows Financial Accounting Standards Board (FASB) ASC 606 and accounting standards updates (“ASU”) 2014-09 for revenue recognition. On October 1, 2017, the Company has early adopted ASU 2014-09, which is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The Company considers revenue realized or realizable and earned when all the five following criteria are met: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The Company considers customer purchase orders to be the contracts with a customer. As part of its consideration of the contract, the Company evaluates certain factors including the customer’s ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. The Company considers whether the nature of its promise is a performance obligation to provide the specified goods or services itself (that is, the entity is a principal) or to arrange for the other party to provide those goods or services (that is, the entity is an agent). In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. The Company offers customer warranty of six months to five years for defective products that is beyond contemplated defective rate mutually agreed in contract with customers. The Company analyzed historical refund claims for defective products and concluded that they have been immaterial. Revenues are reported net of all VAT. As the Company’s standard payment terms are less than one year, the Company has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on their relative standalone selling price. Revenue is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied at a point in time), which typically occurs at delivery. For international sales, the Company sells its products primarily under the free onboard (“FOB”) shipping point term. For sales under the FOB shipping point term, the Company recognizes revenues when products are delivered from Company to the designated shipping point. Prices are determined based on negotiations with the Company’s customers and are not subject to adjustment. The Company also generates revenues from providing repair services. Revenues from repair service agreements are recognized at a point in time once the service is rendered to the customer. The Company considers whether the nature of its promise is a performance obligation to provide the specified goods or services itself (that is, the entity is a principal) or to arrange for the other party to provide those goods or services (that is, the entity is an agent). The Company also generate revenues from providing research and development services. Revenues from research and development are mainly generated from video conferencing system development service. When the contract is awarded, the Company will develop the video conferencing system significantly customized to the needs of the customer. The duration of contracts ranges from nine months to twelve months. The Company develops the customized video conferencing system, which is combined output, to the customers. Therefore, each development contract is a single performance obligation under ASC 606-10-25-21. The Company considers whether the nature of its promise is a performance obligation to provide the specified goods or services itself (that is, the entity is a principal) or to arrange for the other party to provide those goods or services (that is, the entity is an agent). The Company is not able to sell the research and development services to another customer due to the individual customization of each contract and the Company has an enforceable right to payment for performance completed to date, which meets the criteria of the performance obligation over time under ASC 606-10-25-29. For performance obligations satisfied over time, the Company recognizes revenue over time by using the output method to measure the progress toward complete satisfaction of a performance obligation. The Company used the milestones reached method specified in each contract to determine the extent of progress toward completion. Government subsidies Government subsidies are recognized when received and all the conditions for their receipt have been met. Government subsidies as the compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related cost are recognized in profit or loss in the period in which they become receivable. For the fiscal years ended September 30, 2022, 2021 and 2020, the Company received government subsidies of $1,505,943, $517,054 and $16,718, respectively. The grants were recorded as other income in the consolidated financial statements. Research and development costs Research and development activities are directed toward the development of new products as well as improvements in existing processes. These costs, which primarily include salaries, contract services and supplies, are expensed as incurred. Shipping and handling costs Shipping and handling costs are expensed when incurred and are included in selling and marketing expense. Shipping and handling costs were $396,899, $511,741 and $573,669 for the fiscal years ended September 30, 2022, 2021 and 2020, respectively. Income taxes The Company accounts for income taxes using the asset and liability method whereby it calculates deferred tax assets or liabilities for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carry forwards and credits by applying enacted tax rates applicable to the fiscal years in which those temporary differences are expected to be reversed or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. The components of the deferred tax assets and liabilities are individually classified as non-current amounts. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. To the extent applicable, the Company records interest and penalties as other expense. All of the tax returns of the Company’s PRC subsidiaries remain subject to examination by PRC tax authorities for five years from the date of filing. The fiscal year for tax purpose in PRC is December 31. The Company is not subject to U.S. tax laws and local state tax laws. The Company’s income and that of its related entities must be computed in accordance with Chinese and foreign tax laws, as applicable, and all of which may be changed in a manner that could adversely affect the amount of distributions to shareholders. There can be no assurance that Income Tax Laws of PRC will not be changed in a manner that adversely affects shareholders. In particular, any such change could increase the amount of tax payable by the Company, reducing the amount available to pay dividends to the holders of the Company’s ordinary shares. Earnings per share Earnings per share is calculated in accordance with ASC 260 Earnings per Share. Basic earnings (loss) per share is computed by dividing the net income attributable to shareholders of the Company by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is computed in accordance with the treasury stock method and based on the weighted average number of ordinary shares and dilutive ordinary share equivalents. Dilutive ordinary share equivalents are excluded from the computation of diluted earnings per share if their effects would be anti-dilutive. There were no dilutive ordinary share equivalents outstanding during the fiscal years ended September 30, 2022, 2021 and 2020. Significant risks and uncertainties Exchange Rate Risks The Company operates in PRC, which may give rise to significant foreign currency risks mainly from fluctuations and the degree of volatility of foreign exchange rates between the USD and the RMB. Currency Convertibility Risks Substantially all of the Company’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with other information such as suppliers’ invoices, shipping documents and signed contracts. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentration of credit risks consist primarily of cash and cash equivalents, restricted cash, accounts receivables, and notes receivable. The Company places its cash and cash equivalents, restricted cash, and note receivable in good credit quality financial institutions in Hong Kong and PRC. Concentration of credit risks with respect to accounts receivables is linked to the concentration of revenue. To manage credit risk, the Company performs ongoing credit evaluations of customers’ financial condition. Interest Rate Risks The Company is subject to interest rate risk. Although the Company’s interest-bearing loans carry fixed interest rates within the reporting period, the Company is still subject to the risk of adverse changes in the interest rates charged by the banks if and when these loans are refinanced. Risks and Uncertainties The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results. Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standards updates. Management periodically reviews new accounting standards that are issued. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. This amends guidelines on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current U.S. GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current U.S. GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, which amended the effective date of ASU 2016-13. The amendments in these ASUs are effective for the Company’s fiscal years, and interim periods within those fiscal years beginning April 1, 2022. Early adoption is permitted. The Company does not expect to early adopt this guidance and is in the process of evaluating the impact of adoption of this guidance on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, as part of its Simplification Initiative to reduce the cost and complexity in accounting for income taxes. This standard removes certain exceptions related to the approach for intra period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. The amendments in these ASUs are effective for the Company’s fiscal years, and interim periods within those fiscal years beginning October 1, 2022. The Company does not expect to early adopt this guidance and is in the process of evaluating the impact of adoption of this guidance on the Company’s consolidated financial statements. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not expected to have a material effect on the Company’s financial position, result of operations or cash flows. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Sep. 30, 2022 | |
Accounts Receivable [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 3 – ACCOUNTS RECEIVABLE Accounts receivable as of September 30, 2022 and 2021 consisted of the following: September 30, September 30, Accounts receivable, gross $ 6,303,689 $ 25,645,693 Less: allowance for doubtful accounts (33,184 ) (94,166 ) Accounts receivable, net $ 6,270,505 $ 25,551,527 The Company’s customers are, for the most part, end-brand customers or their system integrators and display panel manufacturers. The Company’s credit policy typically requires payment within 30 to 120 days, and payments on the vast majority of its sales have been collected within 60 days. The average accounts receivable turnover period was approximately 55 days and 38 days for the fiscal years ended September 30, 2022 and 2021, respectively. Below is an aged analysis of accounts receivables as of September 30, 2022, respectively. As of September 30, 2022 Accounts Allowance Accounts Within 90 days $ 5,298,332 $ - $ 5,298,332 91-180 days 775,520 - 775,520 181-365 days 137,582 (6,879 ) 130,703 Greater than 1 year 92,255 (26,305 ) 65,950 Accounts receivable, net $ 6,303,689 $ (33,184 ) $ 6,270,505 Changes of allowance for doubtful accounts for the fiscal years ended September 30, 2022 and 2021 are as follows: 2022 2021 Beginning balance $ 94,166 $ — Additional reserve through bad debt expense - 94,166 Bad debt write-off (60,982 ) — Ending balance $ 33,184 $ 94,166 Bad debt expense for doubtful accounts receivables recorded by the Company for the fiscal years ended September 30, 2022 and 2021 were $0 and $94,166, respectively. |
Notes Receivable
Notes Receivable | 12 Months Ended |
Sep. 30, 2022 | |
Notes Receivable [Abstract] | |
NOTES RECEIVABLE | NOTE 4 – NOTES RECEIVABLE Notes receivable consisted of irrevocable letters of credit of $0 and $101,361 received from the Company’s customers as of September 30, 2022 and 2021, respectively. The letters of credit are provided by the Company’s international customers to pay their payable balances to the Company; and these notes were guaranteed by the banks. |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 5 – INVENTORIES Inventories as of September 30, 2022 and 2021 consisted of the following: September 30, September 30, Raw materials $ 6,401,458 $ 9,680,601 Work in process 7,830 5,530 Finished goods 7,117,789 6,867,979 Goods in transit 3,005,549 3,210,522 Inventory provision (1,099,914 ) (1,077,952 ) Total inventories, net $ 15,432,712 $ 18,686,6807 Goods in transit of $3,005,549 and $3,210,522 as of September 30, 2022 and 2021 refer to the inventory items that have been shipped out from the Company but yet to be received by the Company’s customers or the designated shipping points. For sales from domestic customers, control of the product is transferred to the customer upon delivery. For sales from international customers, the Company sells its products primarily under FOB shipping point term and control of the product is transferred upon delivery to the designated shipping point. For the fiscal year ended September 30, 2022 and 2021, the Company recorded inventory provision of $21,962 and $780,366, respectively, presented in cost of sales in the Company’s statement of income and comprehensive income. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment, Net [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 6 – PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment as of September 30, 2022 and 2021 consisted of the following: September 30, September 30, Buildings $ 10,384,017 $ 10,681,720 Machinery and equipment 7,632,069 6,812,581 Electronic equipment 1,876,114 2,438,059 Transportation vehicles 219,449 241,906 Office equipment 280,455 261,972 Leasehold improvement 793,929 718,740 Construction in progress 3,826,690 2,284,583 Total property plant and equipment, at cost 25,012,723 23,439,561 Less: accumulated depreciation (5,596,894 ) (4,071,228 ) Property, plant and equipment, net $ 19,415,829 $ 19,368,333 Depreciation expense was $2,309,263 and $1,841,250 for the fiscal years ended September 30, 2022 and 2021, respectively. For the fiscal years ended September 30, 2022 and 2021, the Company recorded no impairment of property, plant and equipment. For the fiscal years ended September 30, 2022 and 2021, the Company purchased new property plant and equipment of $5,122,095 and $6,211,335, respectively. For the fiscal years ended September 30, 2022, the Company disposed machinery, equipment and transportation vehicles with a net book value of $719,262 (cost of $938,669, accumulated depreciation of $219,407) and received cash from disposal of $1,515,045, causing a net disposal income of $795,783 included in operating income. For the fiscal years ended September 30, 2021, the Company disposed machinery, equipment and transportation vehicles with a net book value of $497,172 (cost of $1,613,185, accumulated depreciation of $1,116,013) and received cash from disposal of $1,024,990, causing a net disposal income of $527,818 included in operating income. The disposals were related to cutting maintenance cost of idle machinery, equipment, and transportation, and thus improving the production efficiency after the disposal. For the fiscal years ended September 30, 2022 and 2021, the construction in progress assets were related to construction of manufacturing facilities for the Company. As of September 30, 2022 and 2021, the Company pledged buildings to secure banking facilities granted to the Company. The carrying values of the pledged buildings to secure bank borrowings by the Company are shown in Note 12 |
Land Use Rights, Net
Land Use Rights, Net | 12 Months Ended |
Sep. 30, 2022 | |
Land Use Rights Net [Abstract] | |
LAND USE RIGHTS, NET | NOTE 7 – LAND USE RIGHTS, NET Land use rights as of September 30, 2022 and 2021 consisted of the following: September 30, September 30, Land use rights, at cost $ 1,454,194 $ 1,604,549 Less: accumulated amortization (169,603 ) (106,970 ) Total land use rights, net $ 1,284,591 $ 1,497,579 Amortization expense for land use rights were $78,926 and $85,842 for the fiscal years ended September 30, 2022 and 2021, respectively. For the fiscal years ended September 30, 2022 and 2021, the Company recorded no impairment for land use rights, nor pledged land use rights to secure bank loans. Estimated future amortization expense for land use rights is as follows as of September 30, 2022: Years ending September 30, Amortization expense 2023 $ 72,709 2024 72,709 2025 72,709 2026 72,709 2027 72,709 Thereafter 921,046 Total $ 1,284,591 |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 8 – INTANGIBLE ASSETS, NET Intangible assets, net as of September 30, 2022 and 2021 consisted of the following: September 30, 2022 September 30, Purchased software, cost $ 955,266 $ 935,587 Purchased patent, cost 1,100,000 - Capitalized software, cost 1,843,571 - Total intangible assets, at cost 3,898,837 935,587 Less: accumulated amortization (930,092 ) (808,458 ) Intangible assets, net $ 2,968,745 $ 127,129 For the year ended September 30, 2022, the Company purchased several patent rights from a third-party supplier of $1,100,000, purchased software of $117,030 and developed new capitalized software of $1,843,571, respectively. For the year ended September 30, 2021, the Company did not purchase or develop any other intangible assets. For the years ended September 30, 2022 and 2021, the Company disposed no intangible assets, respectively. Capitalized software represents smart video conference system that is developed by the Company that will be marketed as a stand-alone product or as part of the Company’s other products. Costs of developing software system after establishing technological feasibility are recorded capitalized software. The Company will begin amortizing the capitalized costs of the software when the product first becomes available for general release to customers in October 2022. For the year ended September 30, 2022, the Company purchased intangible assets from third parties, and engaged third parties to develop the intangible assets for the Company. Amortization expense for intangible assets were $214,703 and $199,913 for the fiscal years ended September 30, 2022 and 2021, respectively. For the fiscal years ended September 30, 2022 and 2021, the Company recorded no impairment of intangible asset, nor pledged intangible asset to secure bank loans. Estimated future amortization expense for intangible assets is as follows as of September 30, 2022: Years ending September 30, Amortization expense 2023 $ 725,887 2024 725,887 2025 685,592 2026 685,592 2027 145,787 Total $ 2,968,745 |
Long-Term Investment
Long-Term Investment | 12 Months Ended |
Sep. 30, 2022 | |
Long-Term Investment [Abstract] | |
LONG-TERM INVESTMENT | NOTE 9 – LONG-TERM INVESTMENT In July 2022, the Company made an investment in Nanjing Baituo Visual Technology Co., Ltd (“Nanjing Baituo”) by RMB 1,500,000 with equity percentage of 15%. The Company has no significant influence in Nanjing Baituo’s operation as the Company does not dedicate any members on the Board of Directors of Nanjing Baituo or participate in its management and daily operation. As of September 30, 2022, the Company carried the investment at its cost in the amount of $210,867. Nanjing Baituo is principally engaged in the operation of software development in artificial intelligence and virtual reality and manufacturing in wearable smart devices. |
Other Long-Term Receivable
Other Long-Term Receivable | 12 Months Ended |
Sep. 30, 2022 | |
Other Long-Term Receivable [Abstract] | |
OTHER LONG-TERM RECEIVABLE | NOTE 10 – OTHER LONG-TERM RECEIVABLE Other long-term receivable as of September 30, 2022 and 2021 consisted of the following: September 30, September 30, 2021 Escrow deposits for IPO proceeds $ 400,000 $ - Long- term deposits for contracts performance 313,986 - Other long-term receivables 109,130 - Total $ 823,116 $ - |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Sep. 30, 2022 | |
Accrued Expenses And Other Current Liabilities Abstract | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | NOTE 11 – ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities as of September 30, 2022 and 2021 consisted of the following: September 30, September 30, Deferred government subsidies $ 999,685 $ 1,185,945 Current portion of long-term payable 165,144 876,580 Notes payable 150,973 - Taxes payable 250,718 - Other payables and accruals 383,602 569,845 Total $ 1,950,122 $ 2,632,370 Deferred government subsidies were government subsidies the Company received from the local governments related to certain assets that will be amortized in the depreciated periods of the assets. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Sep. 30, 2022 | |
Short-Term Borrowings [Abstract] | |
SHORT-TERM BORROWINGS | NOTE 12 – SHORT-TERM BORROWINGS Short-term borrowings as of September 30, 2022 and 2021 consisted of the following: September 30, September 30, Short-term bank loans $ 14,469,670 $ 16,520,781 Short-term loans from third-party individuals and entities 6,823,293 15,896,637 Total $ 21,292,963 $ 32,417,418 Short-term bank loans as of September 30, 2022 consisted of the following: Bank Name Amount - RMB Amount - USD Issuance Date Expiration Date Interest Bank of Nanjing* 10,000,000 1,405,778 7/5/2022 7/3/2023 3.70 % Bank of Nanjing*** 6,900,000 969,987 10/13/2021 10/12/2022 4.35 % Bank of Nanjing* 5,000,000 702,889 5/24/2022 5/19/2023 3.80 % Bank of Communications 6,100,000 857,524 7/26/2022 7/25/2023 3.70 % Bank of Communications 2,000,000 281,156 8/4/2022 8/2/2023 3.70 % Bank of Communications 4,180,000 587,614 9/19/2022 9/15/2023 3.65 % Bank of Communications 3,000,000 421,733 9/19/2022 9/15/2023 3.65 % Bank of Communications 2,200,000 309,271 4/25/2022 4/23/2023 3.70 % Bank of Communications 7,800,000 1,096,507 4/24/2022 4/21/2023 3.70 % Bank of Chengdu 7,000,000 984,044 5/20/2022 5/19/2023 4.55 % Bank of Chengdu 5,000,000 702,889 3/24/2022 3/23/2023 4.55 % Zijin Rural Commercial Bank 2,000,000 281,156 3/17/2022 3/16/2023 4.45 % Bank of China* 3,000,000 421,733 8/10/2022 8/3/2023 3.70 % Bank of China* 10,000,000 1,405,778 8/19/2022 8/19/2023 3.90 % Bank of Jiangsu 10,000,000 1,405,778 8/11/2022 8/10/2023 4.36 % Bank of Ningbo 9,000,000 1,265,200 6/23/2022 6/20/2023 4.20 % Bank of Yongfeng** 4,750,000 667,744 4/1/2022 9/16/2022 4.90 % Bank of Yongfeng 5,000,000 702,889 8/25/2022 2/24/2023 4.20 % Total 102,930,000 $ 14,469,670 * As of September 30, 2022, a total of $5,215,436 bank loans were guaranteed by, or pledged by the personal assets owned by, the Company’s major shareholder, Mr. Tao Ling and his immediate family members. No guarantee-fee was charged by Mr. Tao Ling and his immediate family members for the guarantees for the fiscal year ended September 30, 2022. ** These short-term borrowings were repaid and renewed upon maturity. Short-term bank loans as of September 30, 2021 consisted of the following: Bank Name Amount - RMB Amount - USD Issuance Date Expiration Date Interest Bank of Nanjing** 9,000,000 1,396,778 4/19/2021 4/4/2022 4.35 % Bank of Nanjing** 6,100,000 946,705 7/9/2021 7/4/2022 4.35 % Bank of Nanjing** 6,900,000 1,070,863 10/10/2020 10/8/2021 5.66 % Bank of Nanjing** 3,000,000 465,593 5/26/2021 5/19/2022 4.05 % Bank of Nanjing** 2,000,000 310,395 5/24/2021 5/19/2022 4.05 % Bank of Jiangsu 3,000,000 465,593 3/5/2021 3/4/2022 4.36 % Bank of Communications 2,000,000 310,395 6/29/2021 6/28/2022 4.35 % Bank of Communications 3,000,000 465,593 7/30/2021 7/29/2022 4.35 % Bank of Communications 2,000,000 310,395 7/30/2021 1/29/2022 4.35 % Bank of Communications 3,000,000 465,593 9/23/2021 9/22/2022 4.35 % China Citic Bank 5,000,000 775,988 8/6/2021 8/6/2022 4.50 % Bank of Chengdu* 5,000,000 775,988 5/27/2021 11/26/2021*** 8.50 % Bank of Chengdu* 5,000,000 775,988 7/14/2021 1/13/2022*** 8.50 % Bank of Chengdu 5,000,000 775,988 1/25/2021 1/24/2022*** 4.55 % Bank of Chengdu 7,000,000 1,086,383 4/26/2021 4/25/2022 4.55 % Bank of Chengdu 3,000,000 465,593 7/15/2021 7/14/2022 4.55 % China Everbright Bank** 5,000,000 775,988 3/31/2021 3/30/2022 4.35 % China Everbright Bank** 7,700,000 1,195,021 8/30/2021 8/29/2022 4.35 % Zijin Rural Commercial Bank** 4,750,000 737,188 3/24/2021 3/24/2022 4.35 % Zijin Rural Commercial Bank** 2,000,000 310,395 3/26/2021 3/25/2022 4.35 % Bank of China** 1,000,000 155,198 7/7/2021 7/5/2022 4.20 % Bank of China** 4,000,000 620,790 7/15/2021 7/11/2022 4.20 % Bank of China** 2,000,000 310,395 7/15/2021 7/11/2022 4.20 % Bank of China** 7,200,000 1,117,422 5/24/2021 5/24/2022 3.90 % Bank of China** 2,800,000 434,553 6/23/2021 6/23/2022 3.90 % Total 106,450,000 $ 16,520,781 * The loans from Bank of Chengdu with an annual interest rate of 8.50% were guaranteed by Chengdu Juyuan Financing Co., Ltd. (“Chengdu Juyuan”). The interest rate 8.50% includes interests paid to Bank of Chendu and guarantee fee paid to Chengdu Juyuan. ** As of September 30, 2021, a total of $9,847,286 bank loans were guaranteed by, or pledged by the personal assets owned by, the Company’s major shareholder, Mr. Tao Ling and his immediate family members. No guarantee-fee was charged by Mr. Tao Ling and his immediate family members for the guarantees for the fiscal year ended September 30, 2021. *** All short-term borrowings as of September 30, 2021 were repaid or renewed upon maturity. Short-term borrowings also include loans from various individuals that are unsecured, due on demand, and bear interest of 3.70%. The Company recorded interest expense of $499,708 and $370,847 for the fiscal years ended September 30, 2022 and 2021, respectively. As of September 30, 2022 and 2021, the total amount of these loans was $6,823,293 and $15,896,637, respectively. The Company’s bank loans are guaranteed by the Company’s major shareholder, Mr. Tao Ling and his immediate family members, third-party individuals, and third-party companies. See Note 14 – Related Party Transactions September 30, September 30, Buildings, net $ 659,777 $ 724,859 Bank deposit 321,980 — Total $ 981,757 $ 724,859 For the fiscal years ended September 30, 2022 and 2021, interest expense on all short-term borrowings amounted to $1,536,169 and $1,001,575, respectively. |
Customer and Supplier Concentra
Customer and Supplier Concentrations | 12 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
CUSTOMER AND SUPPLIER CONCENTRATIONS | NOTE 13 – CUSTOMER AND SUPPLIER CONCENTRATIONS Significant customers and suppliers are those that account for greater than 10% of the Company’s revenues and purchases, respectively. For the fiscal year ended September 30, 2022, the Company had two significant customers which accounted for 53.8% and 13.0% of the Company’s total revenue, respectively. As of September 30, 2022, the Company had accounts receivable balances from four customers which accounted for 14.5%, 14.5%, 13.2% and 11.1% of the Company’s total accounts receivable balance. For the fiscal year ended September 30, 2021, the Company had two significant customers which accounted for 38.2% and 14.7% of total revenue, respectively. As of September 30, 2021, the Company had accounts receivable balance from one customer which accounted for 69.0% of the Company’s total accounts receivable balance. The loss of any of the Company’s significant customer or the failure to attract new customers could have a material adverse effect on the Company’s business, consolidated results of operations and financial condition. For the fiscal year ended September 30, 2022, two suppliers accounted for 58.8% and 10.5% of the Company’s total purchase of raw materials, respectively. As of September 30, 2022, the Company had accounts payable balance to one supplier which accounted for 31.1% of the Company’s total accounts payable balance. For the fiscal year ended September 30, 2021, two suppliers accounted for 34.1% and 17.8% of the Company’s total purchase of raw materials, respectively. As of September 30, 2021, the Company had accounts payable balances to one supplier which accounted for 25.2% of the Company’s total accounts payable balance. The loss of any of the Company’s significant supplier or the failure to purchase key raw material could have a material adverse effect on our business, consolidated results of operations and financial condition. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 14 – RELATED PARTY TRANSACTIONS 1) Nature of relationships with related parties: Name Relationship with the Company Tao Ling Principal shareholder, Chief Executive Officer and Chairman of the Company Xiaohong Yin Principal shareholder and director of the Company Bozhen Gong Immediate family member of Tao Ling Yun Tan Immediate family member of Tao Ling Luzhou Nachuan Investment Limited An entity which owns 5% equity interest of Luzhou Aozhi 2) Related party transactions For the fiscal year ended September 30, 2022, the Company’s related parties provided working capital to support the Company’s operations when needed. The borrowings were unsecured, due on demand, and interest free. The following table summarizes borrowing transactions with the Company’s related parties: Name of Related Parties Borrowing/ Payment/ Xiaohong Yin $ 2,441,555 $ 4,303,242 Bozhen Gong 305,194 1,068,180 Total $ 2,746,749 $ 5,371,422 As of September 30, 2022, a total of $5,215,436 bank loans were guaranteed by, or pledged by the personal assets owned by, the Company’s major shareholder, Mr. Tao Ling and his immediate family members. No guarantee fee was charged by Mr. Tao Ling and his immediate family members for the guarantees for the fiscal year ended September 30, 2022. For the fiscal year ended September 30, 2021, the Company’s related parties provided working capital to support the Company’s operations when needed. The borrowings were unsecured, due on demand, and interest free. The following table summarizes borrowing transactions with the Company’s related parties: Name of related parties Borrowing Amount Payment Amount Tao Ling $ 1,719,857 $ 1,873,141 Xiaohong Yin 6,085,410 4,215,335 Bozhen Gong 858,395 567,154 Yun Tan 429,198 229,927 Total $ 9,092,860 $ 6,885,557 As of September 30, 2021, a total of $9,847,286 bank loans were guaranteed by, or pledged by the personal assets owned by, the Company’s major shareholder, Mr. Tao Ling and his immediate family members. No guarantee-fee was charged by Mr. Tao Ling and his immediate family members for the guarantees for the fiscal year ended September 30, 2021. 3) Related party balances Net outstanding balances with related parties consisted of the following as of September 30, 2022 and 2021: Accounts Name of Related Parties September 30, September 30, Due to related parties Xiaohong Yin $ - $ 1,893,410 Due to related parties Bozhen Gong 295,213 1,101,903 Due to related parties Yun Tan 182,751 201,757 Total due to related parties $ 477,964 $ 3,197,070 |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 15 – STOCKHOLDERS’ EQUITY Ordinary Shares The Company is authorized to issue 500,000,000 ordinary shares of a single class, par value $0.0001 per ordinary share. There are currently 14,006,250 issued and outstanding ordinary shares, of which Mr. Tao Ling and Mr. Xiaohong Yin, respectively, owns 28.9% and 6.9% through their wholly owned holding companies. Share Surrender In December 2020, an aggregate of 27,175,000 ordinary shares were surrendered by all our shareholders for no consideration and were then cancelled which in nature is a stock reverse split. As a result, the number of issued and outstanding ordinary shares decreased from 37,300,000 shares to 10,125,000 shares. All share information included in the consolidated financial statements and notes thereto have been retroactively adjusted as if such occurred on the first day of the first period presented. Initial Public Offering On April 29, 2022, the Company consummated its initial public offering of 3,881,250 ordinary shares, par value $0.0001 per share (the “Ordinary Shares”), including 506,250 additional Ordinary Shares issued pursuant to the full exercise of the underwriters’ over-allotment option, at a price of $4.00 per share, generating gross proceeds to the Company of $15,525,000 before deducting underwriting discounts and commissions and offering expenses. The offering was conducted on a firm commitment basis. After deducting underwriting discounts, commissions and expenses related to the offering, the Company recorded $12,409,022 (with $388 in par value and $12,408,634 in additional paid-in capital) net proceeds from its initial public offering. Dividends Dividends declared by the Company are based on the distributable profits as reported in its statutory financial statements reported in accordance with PRC GAAP, which may differ from the results of operations reflected in the consolidated financial statements prepared in accordance with US GAAP. The Company’s ability to pay dividends is primarily from cash received from its operating activities in the PRC. Nanjing Zhancheng, the Company’s subsidiary in PRC, declared and paid dividends of $96,276 and $88,870 to Jiangsu Austin and the non-controlling equity holders during the year ended September 30, 2022. No dividends were declared or paid by the Company for the fiscal year ended September 30, 2021. Statutory Reserve The Company is required to make appropriations to certain reserve funds, comprising the statutory reserve and the discretionary reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity’s registered capital. Appropriations to the discretionary reserve are made at the discretion of the Board of Directors of each of the Company PRC subsidiaries. The reserved amounts as determined pursuant to PRC statutory laws totaled $1,496,314 and $1,033,653 as of September 30, 2022 and 2021, respectively. Under PRC laws and regulations, paid-in capital and statutory reserves are restricted to set-off against losses, expansion of production and operation and increasing registered capital of the respective company, and are not distributable other than upon liquidation. The reserves are not allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor allowed for distribution except under liquidation. Non-controlling Interests Non-controlling interests represent the interest of non-controlling shareholders in the Company’s subsidiaries based on their proportionate interests in the equity of that company adjusted for its proportionate share of income or losses from operations. The non-controlling interests were $289,000 and $878,969 as of September 30, 2022 and 2021, respectively. |
Other Income (Expenses), Net
Other Income (Expenses), Net | 12 Months Ended |
Sep. 30, 2022 | |
Other Income (Expenses), Net [Abstract] | |
OTHER INCOME (EXPENSES), NET | NOTE 16 – OTHER INCOME (EXPENSES), NET Other income (expenses), net for the fiscal years ended September 30, 2022, 2021 and 2020 consisted of the following: For the years ended 2022 2021 2020 Government subsidies* $ 1,505,943 $ 517,054 $ 16,718 Gain from settlement of payables** - 556,808 - Other miscellaneous non-business income (loss) (226,384 ) 59,241 (84,088 ) Total other income (expenses), net $ 1,279,559 $ 1,133,103 $ (67,370 ) * Government subsidies as the compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related cost are recognized in profit or loss in the period in which they become receivable. Government subsidies as the support for certain assets were recorded in deferred government subsidies and are amortized in the future periods. For the years ended September 30, 2022, 2021 and 2020, the Company recorded government subsidies of $1,505,943, $517,054 and $16,718, respectively. ** For the year ended September 30, 2021, the Company reached settlements with its vendors for several old outstanding payables in which the Company had no further obligations to pay these balances. These balances were generated from vendors that the Company had no business with during the reporting periods or no intention to further cooperate with. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 17 – INCOME TAXES Enterprise Income Taxes (“EIT”) The Company is incorporated in Cayman Island as an offshore holding company and is not subject to tax on income or capital gain under the laws of Cayman Island. Ostin BVI is incorporated in BVI as an offshore holding company and is not subject to tax on income or capital gain under the laws of BVI. Ostin HK and Austin Optronics are established in Hong Kong and are subject to statutory income tax rate at 16.5%. The PRC subsidiaries of the Company are subject to statutory income tax rate at 25%. The Company’s main operating subsidiary in PRC was certified as a High and New Technology Enterprise (“HNTE”) and enjoys a preferential tax rate of 15% since 2013, and the HNTE certificate needs to be renewed every three years. The subsidiary was eligible for a 15% preferential tax rate for the fiscal years ended September 30, 2022, 2021 and 2020, and the Company has renewed its HNTE certificate in November 2019 and thus its validity extends to November 2022. As of September 30, 2022, the tax years ended December 31, 2017 through December 31, 2021 for the Company’s PRC entities remain open for statutory examination by PRC tax authorities. The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of September 30, 2022 and 2021, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur any interest and penalties related to potential underpaid income tax expenses for the fiscal years ended September 30, 2022, 2021 and 2020, respectively, and also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from September 30, 2022. Per the consolidated statements of income and comprehensive income, the income tax expenses for the Company can be reconciled to the income before income taxes for the fiscal years ended September 30, 2022, 2021 and 2020 as follows: For the years ended 2022 2021 2020 Income before taxes excluded the amounts of loss incurring entities $ 4,936,803 $ 4,849,826 $ 1,659,567 PRC EIT tax rates 25%, 15% 25%, 15% 15 % Tax at the PRC EIT tax rates $ 740,521 $ 763,440 $ 248,935 Tax effect of R&D expenses deduction (618,891 ) (1,105,212 ) (29,558 ) Tax effect of deferred tax recognized 106,775 208,832 (347,833 ) Tax effect of non-deductible expenses 98,538 75,854 1,732 Income tax provision $ 326,942 $ (57,086 ) $ (126,725 ) Income taxes for the fiscal years ended September 30, 2022, 2021 and 2020 are attributed to the Company’s continuing operations in China and consisted of: For the fiscal years ended 2022 2021 2020 Current income tax $ 118,905 $ (265,918 ) $ 173,271 Deferred income tax 208,037 208,832 (299,996 ) Total income tax provision $ 326,942 $ (57,086 ) $ (126,725 ) The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of September 30, 2022 and 2021 are presented below: September 30, September 30, Deferred tax assets: Bad debt allowance $ 85,006 $ 14,125 Inventory impairment provision 164,987 161,693 Other deductible temporary difference (55,232 ) (7,583 ) Net operating loss carry-forward 371,643 504,944 Total $ 566,404 $ 673,179 There was no valuation allowance for the deferred tax assets as of September 30, 2022 and 2021. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income, projections for future taxable income over the periods in which the deferred tax assets are deductible, and the scheduled reversal of deferred tax liabilities, management believes it is more likely than not the company will realize the benefits of those deductible differences as of September 30, 2022 and 2021. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENT AND CONTINGENCIES | NOTE 18 – COMMITMENT AND CONTINGENCIES As of September 30, 2022, the Company had the following capital commitments under non-cancelable agreements: Future payments Capital October 2022 to September 2023 $ 323,086 October 2023 to September 2024 7,301,011 October 2024 to September 2025 - October 2025 to September 2026 - October 2026 to September 2027 - Thereafter - Total $ 7,624,098 From time to time, the Company is involved in various legal proceedings, claims and other disputes arising from commercial operations, employees, and other matters which, in general, are subject to uncertainties and in which the outcomes are not predictable. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. Although the Company can give no assurances about the resolution of pending claims, litigation or other disputes and the effect such outcomes may have on the Company, the Company believes that any ultimate liability resulting from the outcome of such proceedings to the extent not otherwise provided or covered by insurance, will not have a material adverse effect on our consolidated financial position or results of operations or liquidity. As of September 30, 2022 and 2021, the Company had no pending legal proceedings outstanding. |
Disaggregated Revenue
Disaggregated Revenue | 12 Months Ended |
Sep. 30, 2022 | |
Disaggregated Revenue [Abstract] | |
DISAGGREGATED REVENUE | NOTE 19 – DISAGGREGATED REVENUE The following table presents revenue by major product categories for the fiscal years ended September 30, 2022, 2021 and 2020, respectively: September 30, 2022 September 30, 2021 September 30, 2020 Revenue Category Revenue As % Revenue As % Revenue As % Sales of display modules $ 35,113,651 34 % $ 96,087,963 58 % $ 100,304,865 72 % Sales of polarizers 62,709,731 59 % 62,625,352 37 % 36,794,524 26 % Research and developments 5,715,914 5 % - - % - - % Others 1,877,450 2 % 9,031,486 5 % 2,974,528 2 % Total $ 105,416,746 100 % $ 167,744,801 100 % $ 140,073,917 100 % The revenue under category of others, are mostly from repairing services and mold product sales that have not become significant portion of the revenue for the year ended September 30, 2022. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 20 – SEGMENT REPORTING ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company’s business segments. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. All of the Company’s operating facilities and long-lived assets are in China, although the Company sells its products across different geographic regions. Based on management’s assessment, the Company has determined that it has only one operating segment as defined by ASC 280. The following table presents revenues by geographic areas for the fiscal years ended September 30, 2022, 2021 and 2020, respectively. September 30, 2022 September 30, 2021 September 30, 2020 Country/Region Revenue As % Revenue As % Revenue As % Mainland China $ 96,449,118 92 % $ 133,852,929 80 % $ 102,253,954 73 % Hong Kong and Taiwan 8,948,112 8 % 32,244,188 19 % 29,415,528 21 % Others 19,516 - % 1,647,684 1 % 8,404,435 6 % Total $ 105,416,746 100 % $ 167,744,801 100 % $ 140,073,917 100 % |
Impact of Covid-19
Impact of Covid-19 | 12 Months Ended |
Sep. 30, 2022 | |
Impact of Covid-19 [Abstract] | |
IMPACT OF COVID-19 | NOTE 21 – IMPACT OF COVID-19 The COVID-19 pandemic continues to spread in China and other parts of the world, and COVID-19 restrictions and controls in China have not been relaxed until the end of 2022. Although the Chinese government has now lifted the restrictions related to COVID-19, the COVID-19 pandemic still has negatively impacted, and may continue to negatively impact, the global economy and disrupt normal business activity, which may have an adverse effect on our results of operations. The impacts of COVID-19 on the Company’s business, financial condition, and results of operations include, but are not limited to, the following: ● The demand for consumer electronics including TVs, monitors, and entertainment devices has been reduced due to market saturation during the early stages of the pandemic. This has resulted in a decline in the Company’s sales of display modules during the fiscal year ended September 30, 2022, compared to the previous year. ● The Company experienced some disruption to supply chain during the Chinese government mandated lockdowns, with suppliers increasing lead times and purchase price for raw materials. While all of the major suppliers are currently fully operational, any future disruption in their operations would impact the Company’s ability to manufacture and deliver the products to customers. In addition, reductions in commercial airline and cargo flights, disruptions to ports and other shipping infrastructure resulting from the pandemic have led to increased transport times to deliver materials and components to the Company’s facilities and to transfer the products to its key suppliers, and have also affected the Company’s ability to timely ship its products to customers. As a result of these supply chain disruptions, the Company had increased customer order lead times. This has limited the Company’s ability to fulfill orders with short lead times and it is therefore unable to satisfy all of the demand for its products in a timely manner, which did not have any material adverse impact on the relationship with its customers given the delay is an industrywide issue caused by the ongoing pandemic. ● The Company’s credit policy typically requires payment within 30 to 120 days, and payments on the vast majority of our sales have been collected within 45 days. The Company’s average accounts receivable turnover period was approximately 55 days for the fiscal year ended September 30, 2022. Therefore, the Company’s payment collection has not been adversely impacted by the pandemic. ● For the fiscal year ended September 30, 2022, the Company was able to repay all its debt and other obligations without taking advantage of any available payment deferral or forbearance term. ● The Company’s workforce remained stable for the fiscal year ended September 30, 2022. The Company did not receive government subsidy or take advantage of any government assistance program in relation to the pandemic. The Company has complied with the various safety measures required by the local government and provided its employees with protective gears and regularly monitor and trace the health condition of its employees. However, the Company does not believe those safety measures have materially impacted its operation. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 22 – SUBSEQUENT EVENTS The Company evaluated all events and transactions that occurred after September 30, 2022 up through the date of the issuance of consolidated financial statements on February 15, 2023 and concluded that no other material subsequent events except for the disclosed above. |
Condensed Financial Information
Condensed Financial Information of The Parent Company | 12 Months Ended |
Sep. 30, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | NOTE 23 –CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY The following is the condensed financial information of the Company on a parent company only basis. As of September 30, 2022 2021 ASSETS Cash and cash equivalents $ 17,673 $ - Prepayments, deposits and other current assets 8,828,142 - Investment in subsidiaries 13,340,885 10,857,182 Total assets $ 22,186,700 $ 10,857,182 LIABILITIES AND SHAREHOLDERS’ EQUITY Total liabilities $ - $ - SHAREHOLDERS’ EQUITY Common stock, $0.0001 par value, 500,000,000 shares authorized, 14,006,250 and 10,250,000 shares issued and outstanding as of September 30, 2022 and 2021 1,401 1,013 Additional paid-in capital 23,256,219 10,856,169 Retained earnings (1,070,920 ) - Accumulated other comprehensive loss - - Total equity of the Company’s shareholders 22,186,700 10,857,182 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 22,186,700 $ 10,857,182 For the years ended 2022 2021 2020 Operating expenses: - - General and administrative expenses $ (1,070,920 ) $ - $ - Total operating expenses (1,070,920 ) Net loss $ (1,070,920 ) $ - $ - Other comprehensive loss: - Foreign currency translation adjustment, net of nil tax $ (1,070,920 ) $ - $ - Total comprehensive loss $ (1,070,920 ) $ - $ - For the years ended 2022 2021 2020 Cash Flows from Operating Activities: Net loss $ (1,070,920 ) $ - $ - Changes in operating assets and liabilities: Prepaid expenses and other receivables (556,141 ) - - Net cash used in operating activities (1,627,061 ) - - Cash Flows from Investing Activities: Long-term investment (4,078,601 ) - - Net cash used in investing activities (4,078,601 ) - - Cash Flows from Financing Activities: Proceeds received from stock issuance 12,409,022 Payments to related parties (6,685,687 ) - - Net cash provided by financing activities 5,723,335 - - Effect of changes in currency exchange rates - - - Net (decrease) increase in cash and cash equivalents 17,673 - - Cash, cash equivalents and restricted cash at the beginning of year - - - Cash and cash equivalents and restricted cash at the end of year $ 17,673 $ - $ - (a) Basis of Presentation Condensed financial information is used for the presentation of the Company, or the parent company. The condensed financial information of the parent company has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company used the cost method to account for investment in its subsidiaries. The parent company’s condensed financial statements should be read in conjunction with the Company’s consolidated financial statements. (b) Shareholders’ Equity The Company is authorized to issue 500,000,000 ordinary shares of a single class, par value $0.0001 per ordinary share. There are currently 14,006,250 issued and outstanding ordinary shares, of which Mr. Tao Ling and Mr. Xiaohong Yin, respectively, owns 28.9% and 6.9% through their wholly owned holding companies. Share Surrender In December 2020, an aggregate of 27,175,000 ordinary shares were surrendered by all our shareholders for no consideration and were then cancelled which in nature is a stock reverse split. As a result, the number of issued and outstanding ordinary shares decreased from 37,300,000 shares to 10,125,000 shares. All share information included in the consolidated financial statements and notes thereto have been retroactively adjusted as if such occurred on the first day of the first period presented. Initial Public Offering On April 29, 2022, the Company consummated its initial public offering of 3,881,250 ordinary shares, par value $0.0001 per share, including 506,250 additional ordinary shares issued pursuant to the full exercise of the underwriters’ over-allotment option, at a price of $4.00 per share, generating gross proceeds to the Company of $15,525,000 before deducting underwriting discounts and commissions and offering expenses. The offering was conducted on a firm commitment basis. After deducting underwriting discounts, commissions and expenses related to the offering, the Company recorded $12,409,022 (with $388 in par value and $12,408,634 in additional paid-in capital) net proceeds from its initial public offering. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Sep. 30, 2022 | |
Organization and Nature of Operations [Abstract] | |
Basis of presentation and principles of consolidation | Basis of presentation and principles of consolidation The accompanying consolidated financial statements and related notes have been prepared in accordance with generally accepted accounting principles in the United Stated of America (“U.S. GAAP”) and have been consistently applied. The consolidated financial statements include the financial statements of the Company and its subsidiaries. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. |
Use of estimates | Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Such estimates include, but are not limited to, allowances for doubtful accounts, inventory valuation, useful lives of property, plant and equipment, intangible assets, and income taxes related to realization of deferred tax assets and uncertain tax position. Actual results could differ from those estimates. |
Foreign currency translation | Foreign currency translation The financial records of the Company’s subsidiaries in China are maintained in their local currencies which are Chinese Yuan (“RMB”). Monetary assets and liabilities denominated in currencies other than their local currencies are translated into local currencies at the rates of exchange in effect at the consolidated balance sheet dates. Transactions denominated in currencies other than their local currencies during the year are converted into local currencies at the applicable rates of exchange prevailing when the transactions occur. Transaction gains and losses are recorded in other income, net in the consolidated statements of income and comprehensive income. The Company and its subsidiaries in British Virgin Islands and Hong Kong maintained their financial record using the United States dollar (“USD”) as the functional currency, while the subsidiaries of the Company in mainland China maintained their financial records using RMB as the functional currency. The reporting currency of the Company is USD. When translating local financial reports of the Company’s subsidiaries into USD, assets and liabilities are translated at the exchange rates at the consolidated balance sheet date, equity accounts are translated at historical exchange rates and revenue, expenses, gains and losses are translated at the average rate for the period. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income in the consolidated statements of income and comprehensive income. The relevant exchange rates are listed below: September 30, September 30, September 30, Period ended RMB: USD exchange rate 7.1135 6.4434 6.7896 Period average RMB: USD exchange rate 6.5532 6.5238 7.0056 |
Cash and cash equivalents | Cash and cash equivalents The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents. The Company maintains most of the bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. |
Restricted cash | Restricted cash Restricted cash is cash held as collateral for the letters of credit the Company issued for its international transactions. |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. Based on management of customers’ credit and ongoing relationship, management makes conclusions whether any balances outstanding at the end of the period will be deemed uncollectible on an individual basis and on an aging analysis basis. The provision is recorded against accounts receivable balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is principally determined using the weighted-average method. The Company records adjustments to inventory for excess quantities, obsolescence or impairment when appropriate to reflect inventory at net realizable value. These adjustments are based upon a combination of factors including current sales volume, market conditions, lower of cost or market analysis and expected realizable value of the inventory. |
Advances to suppliers | Advances to suppliers Advances to suppliers refer to advances for purchase of materials or other services, which are applied against accounts payable when the materials or services are received. The Company reviews a supplier’s credit history and background information before advancing a payment. If the financial condition of its suppliers were to deteriorate, resulting in an impairment of their ability to deliver goods or provide services, the Company would write off such amount in the period when it is considered as impaired. The allowance for advances to suppliers recognized as of September 30, 2022 and 2021 were $496,531 and $311,811, respectively. |
Advances from customers | Advances from customers Advances from customers refer to advances received from customers regarding product sales, for which revenue is recognized upon delivery. |
Property, plant and equipment, net | Property, plant and equipment, net Property, plant, and equipment are recorded at cost less accumulated depreciation. Depreciation commences upon placing the asset in usage and is recognized on a straight-line basis over the estimated useful lives of the assets with 5% of residual value, as follows: Useful Lives Buildings 20 years Machinery and equipment 5-10 years Transportation vehicles 4-5 years Office equipment 3-5 years Electronic equipment 3 years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses. |
Land use rights, net | Land use rights, net Under the PRC law, all land in the PRC is owned by the government and cannot be sold to an individual or company. The government grants individuals and companies the right to use parcels of land for specified periods of time. These land use rights are sometimes referred to informally as “ownership.” Land use rights are stated at cost less accumulated amortization. Rental period Land use rights 20-50 years |
Intangible assets, net | Intangible assets, net Intangible assets consist of software and patent purchased from other companies and capitalized software developed by the Company, which are recorded at cost less accumulated amortization. Intangible assets are amortized using the straight-line method with the following estimated useful lives: Useful lives Software 3 years Patent 10 years Capitalized software represents software that is developed or purchased by an entity that will be sold, leased, or marketed as a stand-alone product as well as a software that will be sold as part of another product or process. All costs of developing software prior to establishing its technological feasibility are research and development costs and are expensed as incurred. Technological feasibility is achieved when an entity has completed all planning, designing, coding, and testing activities necessary to establish that the software product can be produced to meet its design specifications, including functions, features, and technical performance requirements. As described in ASC 985-20-25-1, this can be achieved through the use of either (1) a detail program design, or (2) the combination of a product design and working model, which have been confirmed for completeness by testing. Costs of developing software after establishing technological feasibility are recorded capitalized software. The capitalized costs of developing software that will be sold, leased, or marketed will be amortized separately for each software product. An entity will begin amortizing the capitalized costs of the software when the product first becomes available for general release to customers. For the year ended September 30, 2022, the Company purchased intangible assets from third parties, and engaged third parties to develop the intangible assets for the Company. |
Right of use lease assets | Right of use lease assets The Company has two operating leases for manufacturing facilities and offices with no option to renew and the Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Effective October 1, 2019, the Company adopted the new lease accounting standard using a modified retrospective transition method which allowed the Company not to recast comparative periods presented in its consolidated financial statements. In addition, the Company elected the package of practical expedients, which allowed the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company combines the lease and non-lease components in determining the ROU assets and related lease obligation. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities as disclosed in financial statements and had no impact on accumulated deficit as of September 30, 2022. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term. |
Long-term investment | Long-term investment Company’s long-term investment consists of equity investments without a readily determinable fair value. Under ASC Topic 321, Accounting for Equity Securities and Equity Investment |
Long-term liability | Long-term liability The Company has four transactions with two third-party for manufacturing facilities where the Company sold certain machinery located in China and subsequently leased the machinery back for 24 months. In these arrangements, the Company has no obligation to transferring the underlying asset to an unaffiliated third party or has a bargain purchase option at a price of RMB 1 to buyback the underlying asset by the end of the lease term. All these machineries are currently being used by the Company for its production purpose. The Company determined that in these transactions, the control of the asset is not transferred for the following reasons: (1) under the circumstances of not paying the financial liabilities, the buyer-lessor has no call option on the asset; and (2) the seller-lessee has a call option on the asset, and a.) the option is exercisable at something other than fair value as of the exercise date, b.) no alternative assets are available that are substantially the same as the asset transferred. The Company concluded these transactions were not qualified as sale-leaseback accounting and shall account as normal borrowings from third parties. For accounting purposes, the Company did not derecognize the transferred asset and accounts for any amounts received as a financial liability measured at amortized cost subsequent to initial recognition. The balances with these third-party lenders as of September 30, 2022 and 2021 are as follows: September 30, September 30, Total loan payable $ 165,144 $ 1,070,602 Current portion of loan payable (included in accrued and other current liabilities) (165,144 ) (876,580 ) Long-term liability $ - $ 194,022 For the fiscal years ended September 30, 2022 and 2021, the Company recognized interest expense of $67,747 and $128,808 on these loan payables, respectively. |
Impairment of long-lived assets | Impairment of long-lived assets The Company’s management reviews the carrying values of long-lived assets whenever events and circumstances, such as a significant decline in the asset’s market value, obsolescence or physical damage affecting the asset, significant adverse changes in the assets use, deterioration in the expected level of the assets performance, cash flows for maintaining the asset are higher than forecast, indicate that the net book value of an asset may not be recovered through expected future cash flows from its use and eventual disposition. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value. There was no impairment charge recognized for long-lived assets for the fiscal years ended September 30, 2022 and 2021. |
Fair value measurement | Fair value measurement Fair value measurements and disclosures requires disclosure of the fair value of financial instruments held by the Company. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: ● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology use one or more unobservable inputs which are significant to the fair value measurement. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. For the Company’s financial instruments, including cash and cash equivalents, accounts receivable, other receivables, accounts payable, due to related parties, notes receivable, notes payable, and short-term borrowing, the carrying amounts approximate their fair values due to their short maturities as of September 30, 2022 and 2021. |
Value-added tax (“VAT”) | Value-added tax (“VAT”) Sales revenue represents the invoiced value of goods, net of VAT. All of the Company’s products sold in the PRC are subject to a VAT on the gross sales price. The Company is subject a VAT rate of 13% effective on April 1, 2019. The VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing or acquiring its finished products. |
Revenue recognition | Revenue recognition The Company generates its revenues mainly from sales of display modules and polarizers to third-party customers, who are mainly display manufacturers and end-brand customers. The Company follows Financial Accounting Standards Board (FASB) ASC 606 and accounting standards updates (“ASU”) 2014-09 for revenue recognition. On October 1, 2017, the Company has early adopted ASU 2014-09, which is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The Company considers revenue realized or realizable and earned when all the five following criteria are met: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The Company considers customer purchase orders to be the contracts with a customer. As part of its consideration of the contract, the Company evaluates certain factors including the customer’s ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. The Company considers whether the nature of its promise is a performance obligation to provide the specified goods or services itself (that is, the entity is a principal) or to arrange for the other party to provide those goods or services (that is, the entity is an agent). In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. The Company offers customer warranty of six months to five years for defective products that is beyond contemplated defective rate mutually agreed in contract with customers. The Company analyzed historical refund claims for defective products and concluded that they have been immaterial. Revenues are reported net of all VAT. As the Company’s standard payment terms are less than one year, the Company has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on their relative standalone selling price. Revenue is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied at a point in time), which typically occurs at delivery. For international sales, the Company sells its products primarily under the free onboard (“FOB”) shipping point term. For sales under the FOB shipping point term, the Company recognizes revenues when products are delivered from Company to the designated shipping point. Prices are determined based on negotiations with the Company’s customers and are not subject to adjustment. The Company also generates revenues from providing repair services. Revenues from repair service agreements are recognized at a point in time once the service is rendered to the customer. The Company considers whether the nature of its promise is a performance obligation to provide the specified goods or services itself (that is, the entity is a principal) or to arrange for the other party to provide those goods or services (that is, the entity is an agent). The Company also generate revenues from providing research and development services. Revenues from research and development are mainly generated from video conferencing system development service. When the contract is awarded, the Company will develop the video conferencing system significantly customized to the needs of the customer. The duration of contracts ranges from nine months to twelve months. The Company develops the customized video conferencing system, which is combined output, to the customers. Therefore, each development contract is a single performance obligation under ASC 606-10-25-21. The Company considers whether the nature of its promise is a performance obligation to provide the specified goods or services itself (that is, the entity is a principal) or to arrange for the other party to provide those goods or services (that is, the entity is an agent). The Company is not able to sell the research and development services to another customer due to the individual customization of each contract and the Company has an enforceable right to payment for performance completed to date, which meets the criteria of the performance obligation over time under ASC 606-10-25-29. For performance obligations satisfied over time, the Company recognizes revenue over time by using the output method to measure the progress toward complete satisfaction of a performance obligation. The Company used the milestones reached method specified in each contract to determine the extent of progress toward completion. |
Government subsidies | Government subsidies Government subsidies are recognized when received and all the conditions for their receipt have been met. Government subsidies as the compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related cost are recognized in profit or loss in the period in which they become receivable. For the fiscal years ended September 30, 2022, 2021 and 2020, the Company received government subsidies of $1,505,943, $517,054 and $16,718, respectively. The grants were recorded as other income in the consolidated financial statements. |
Research and development costs | Research and development costs Research and development activities are directed toward the development of new products as well as improvements in existing processes. These costs, which primarily include salaries, contract services and supplies, are expensed as incurred. |
Shipping and handling costs | Shipping and handling costs Shipping and handling costs are expensed when incurred and are included in selling and marketing expense. Shipping and handling costs were $396,899, $511,741 and $573,669 for the fiscal years ended September 30, 2022, 2021 and 2020, respectively. |
Income taxes | Income taxes The Company accounts for income taxes using the asset and liability method whereby it calculates deferred tax assets or liabilities for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carry forwards and credits by applying enacted tax rates applicable to the fiscal years in which those temporary differences are expected to be reversed or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. The components of the deferred tax assets and liabilities are individually classified as non-current amounts. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. To the extent applicable, the Company records interest and penalties as other expense. All of the tax returns of the Company’s PRC subsidiaries remain subject to examination by PRC tax authorities for five years from the date of filing. The fiscal year for tax purpose in PRC is December 31. The Company is not subject to U.S. tax laws and local state tax laws. The Company’s income and that of its related entities must be computed in accordance with Chinese and foreign tax laws, as applicable, and all of which may be changed in a manner that could adversely affect the amount of distributions to shareholders. There can be no assurance that Income Tax Laws of PRC will not be changed in a manner that adversely affects shareholders. In particular, any such change could increase the amount of tax payable by the Company, reducing the amount available to pay dividends to the holders of the Company’s ordinary shares. |
Earnings per share | Earnings per share Earnings per share is calculated in accordance with ASC 260 Earnings per Share. Basic earnings (loss) per share is computed by dividing the net income attributable to shareholders of the Company by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is computed in accordance with the treasury stock method and based on the weighted average number of ordinary shares and dilutive ordinary share equivalents. Dilutive ordinary share equivalents are excluded from the computation of diluted earnings per share if their effects would be anti-dilutive. There were no dilutive ordinary share equivalents outstanding during the fiscal years ended September 30, 2022, 2021 and 2020. |
Significant risks and uncertainties | Significant risks and uncertainties Exchange Rate Risks The Company operates in PRC, which may give rise to significant foreign currency risks mainly from fluctuations and the degree of volatility of foreign exchange rates between the USD and the RMB. Currency Convertibility Risks Substantially all of the Company’s operating activities are transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with other information such as suppliers’ invoices, shipping documents and signed contracts. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentration of credit risks consist primarily of cash and cash equivalents, restricted cash, accounts receivables, and notes receivable. The Company places its cash and cash equivalents, restricted cash, and note receivable in good credit quality financial institutions in Hong Kong and PRC. Concentration of credit risks with respect to accounts receivables is linked to the concentration of revenue. To manage credit risk, the Company performs ongoing credit evaluations of customers’ financial condition. Interest Rate Risks The Company is subject to interest rate risk. Although the Company’s interest-bearing loans carry fixed interest rates within the reporting period, the Company is still subject to the risk of adverse changes in the interest rates charged by the banks if and when these loans are refinanced. Risks and Uncertainties The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standards updates. Management periodically reviews new accounting standards that are issued. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. This amends guidelines on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current U.S. GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current U.S. GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, which amended the effective date of ASU 2016-13. The amendments in these ASUs are effective for the Company’s fiscal years, and interim periods within those fiscal years beginning April 1, 2022. Early adoption is permitted. The Company does not expect to early adopt this guidance and is in the process of evaluating the impact of adoption of this guidance on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, as part of its Simplification Initiative to reduce the cost and complexity in accounting for income taxes. This standard removes certain exceptions related to the approach for intra period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. The amendments in these ASUs are effective for the Company’s fiscal years, and interim periods within those fiscal years beginning October 1, 2022. The Company does not expect to early adopt this guidance and is in the process of evaluating the impact of adoption of this guidance on the Company’s consolidated financial statements. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not expected to have a material effect on the Company’s financial position, result of operations or cash flows. |
Organization and Nature of Op_2
Organization and Nature of Operations (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Organization and Nature of Operations [Abstract] | |
Schedule of acquisition of non-controlling interest in Jiangsu Austin | In USD Purchase consideration 338,652 Noncontrolling interests 330,068 Additional paid-in capital 8,584 338,652 |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Organization and Nature of Operations [Abstract] | |
Schedule of relevant exchange rates | September 30, September 30, September 30, Period ended RMB: USD exchange rate 7.1135 6.4434 6.7896 Period average RMB: USD exchange rate 6.5532 6.5238 7.0056 |
Schedule of intangible assets are amortized | Useful Lives Buildings 20 years Machinery and equipment 5-10 years Transportation vehicles 4-5 years Office equipment 3-5 years Electronic equipment 3 years |
Schedule of land use rights | Rental period Land use rights 20-50 years |
Schedule of intangible assets estimated useful lives | Useful lives Software 3 years Patent 10 years |
Schedule of third-party lenders | September 30, September 30, Total loan payable $ 165,144 $ 1,070,602 Current portion of loan payable (included in accrued and other current liabilities) (165,144 ) (876,580 ) Long-term liability $ - $ 194,022 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Credit Loss, Additional Improvements [Abstract] | |
Schedule of accounts receivable | September 30, September 30, Accounts receivable, gross $ 6,303,689 $ 25,645,693 Less: allowance for doubtful accounts (33,184 ) (94,166 ) Accounts receivable, net $ 6,270,505 $ 25,551,527 |
Schedule of an aged analysis of accounts receivables | As of September 30, 2022 Accounts Allowance Accounts Within 90 days $ 5,298,332 $ - $ 5,298,332 91-180 days 775,520 - 775,520 181-365 days 137,582 (6,879 ) 130,703 Greater than 1 year 92,255 (26,305 ) 65,950 Accounts receivable, net $ 6,303,689 $ (33,184 ) $ 6,270,505 |
Schedule of changes of allowance for doubtful accounts | 2022 2021 Beginning balance $ 94,166 $ — Additional reserve through bad debt expense - 94,166 Bad debt write-off (60,982 ) — Ending balance $ 33,184 $ 94,166 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | September 30, September 30, Raw materials $ 6,401,458 $ 9,680,601 Work in process 7,830 5,530 Finished goods 7,117,789 6,867,979 Goods in transit 3,005,549 3,210,522 Inventory provision (1,099,914 ) (1,077,952 ) Total inventories, net $ 15,432,712 $ 18,686,6807 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of property plant and equipment | September 30, September 30, Buildings $ 10,384,017 $ 10,681,720 Machinery and equipment 7,632,069 6,812,581 Electronic equipment 1,876,114 2,438,059 Transportation vehicles 219,449 241,906 Office equipment 280,455 261,972 Leasehold improvement 793,929 718,740 Construction in progress 3,826,690 2,284,583 Total property plant and equipment, at cost 25,012,723 23,439,561 Less: accumulated depreciation (5,596,894 ) (4,071,228 ) Property, plant and equipment, net $ 19,415,829 $ 19,368,333 |
Land Use Rights, Net (Tables)
Land Use Rights, Net (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Land Use Rights Net [Abstract] | |
Schedule of land use rights | September 30, September 30, Land use rights, at cost $ 1,454,194 $ 1,604,549 Less: accumulated amortization (169,603 ) (106,970 ) Total land use rights, net $ 1,284,591 $ 1,497,579 |
Schedule of estimated future amortization expense for land use rights | Years ending September 30, Amortization expense 2023 $ 72,709 2024 72,709 2025 72,709 2026 72,709 2027 72,709 Thereafter 921,046 Total $ 1,284,591 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets, net | September 30, 2022 September 30, Purchased software, cost $ 955,266 $ 935,587 Purchased patent, cost 1,100,000 - Capitalized software, cost 1,843,571 - Total intangible assets, at cost 3,898,837 935,587 Less: accumulated amortization (930,092 ) (808,458 ) Intangible assets, net $ 2,968,745 $ 127,129 |
Schedule of estimated future amortization expense for intangible assets | Years ending September 30, Amortization expense 2023 $ 725,887 2024 725,887 2025 685,592 2026 685,592 2027 145,787 Total $ 2,968,745 |
Other Long-Term Receivable (Tab
Other Long-Term Receivable (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Other Long-Term Receivable [Abstract] | |
Schedule of other long-term receivable | September 30, September 30, 2021 Escrow deposits for IPO proceeds $ 400,000 $ - Long- term deposits for contracts performance 313,986 - Other long-term receivables 109,130 - Total $ 823,116 $ - |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Accrued Expenses And Other Current Liabilities Abstract | |
Schedule of accrued expenses and other current liabilities | September 30, September 30, Deferred government subsidies $ 999,685 $ 1,185,945 Current portion of long-term payable 165,144 876,580 Notes payable 150,973 - Taxes payable 250,718 - Other payables and accruals 383,602 569,845 Total $ 1,950,122 $ 2,632,370 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Short-Term Borrowings [Abstract] | |
Schedule of short-term borrowings | September 30, September 30, Short-term bank loans $ 14,469,670 $ 16,520,781 Short-term loans from third-party individuals and entities 6,823,293 15,896,637 Total $ 21,292,963 $ 32,417,418 |
Short-term bank loans | Bank Name Amount - RMB Amount - USD Issuance Date Expiration Date Interest Bank of Nanjing* 10,000,000 1,405,778 7/5/2022 7/3/2023 3.70 % Bank of Nanjing*** 6,900,000 969,987 10/13/2021 10/12/2022 4.35 % Bank of Nanjing* 5,000,000 702,889 5/24/2022 5/19/2023 3.80 % Bank of Communications 6,100,000 857,524 7/26/2022 7/25/2023 3.70 % Bank of Communications 2,000,000 281,156 8/4/2022 8/2/2023 3.70 % Bank of Communications 4,180,000 587,614 9/19/2022 9/15/2023 3.65 % Bank of Communications 3,000,000 421,733 9/19/2022 9/15/2023 3.65 % Bank of Communications 2,200,000 309,271 4/25/2022 4/23/2023 3.70 % Bank of Communications 7,800,000 1,096,507 4/24/2022 4/21/2023 3.70 % Bank of Chengdu 7,000,000 984,044 5/20/2022 5/19/2023 4.55 % Bank of Chengdu 5,000,000 702,889 3/24/2022 3/23/2023 4.55 % Zijin Rural Commercial Bank 2,000,000 281,156 3/17/2022 3/16/2023 4.45 % Bank of China* 3,000,000 421,733 8/10/2022 8/3/2023 3.70 % Bank of China* 10,000,000 1,405,778 8/19/2022 8/19/2023 3.90 % Bank of Jiangsu 10,000,000 1,405,778 8/11/2022 8/10/2023 4.36 % Bank of Ningbo 9,000,000 1,265,200 6/23/2022 6/20/2023 4.20 % Bank of Yongfeng** 4,750,000 667,744 4/1/2022 9/16/2022 4.90 % Bank of Yongfeng 5,000,000 702,889 8/25/2022 2/24/2023 4.20 % Total 102,930,000 $ 14,469,670 * As of September 30, 2022, a total of $5,215,436 bank loans were guaranteed by, or pledged by the personal assets owned by, the Company’s major shareholder, Mr. Tao Ling and his immediate family members. No guarantee-fee was charged by Mr. Tao Ling and his immediate family members for the guarantees for the fiscal year ended September 30, 2022. ** These short-term borrowings were repaid and renewed upon maturity. Bank Name Amount - RMB Amount - USD Issuance Date Expiration Date Interest Bank of Nanjing** 9,000,000 1,396,778 4/19/2021 4/4/2022 4.35 % Bank of Nanjing** 6,100,000 946,705 7/9/2021 7/4/2022 4.35 % Bank of Nanjing** 6,900,000 1,070,863 10/10/2020 10/8/2021 5.66 % Bank of Nanjing** 3,000,000 465,593 5/26/2021 5/19/2022 4.05 % Bank of Nanjing** 2,000,000 310,395 5/24/2021 5/19/2022 4.05 % Bank of Jiangsu 3,000,000 465,593 3/5/2021 3/4/2022 4.36 % Bank of Communications 2,000,000 310,395 6/29/2021 6/28/2022 4.35 % Bank of Communications 3,000,000 465,593 7/30/2021 7/29/2022 4.35 % Bank of Communications 2,000,000 310,395 7/30/2021 1/29/2022 4.35 % Bank of Communications 3,000,000 465,593 9/23/2021 9/22/2022 4.35 % China Citic Bank 5,000,000 775,988 8/6/2021 8/6/2022 4.50 % Bank of Chengdu* 5,000,000 775,988 5/27/2021 11/26/2021*** 8.50 % Bank of Chengdu* 5,000,000 775,988 7/14/2021 1/13/2022*** 8.50 % Bank of Chengdu 5,000,000 775,988 1/25/2021 1/24/2022*** 4.55 % Bank of Chengdu 7,000,000 1,086,383 4/26/2021 4/25/2022 4.55 % Bank of Chengdu 3,000,000 465,593 7/15/2021 7/14/2022 4.55 % China Everbright Bank** 5,000,000 775,988 3/31/2021 3/30/2022 4.35 % China Everbright Bank** 7,700,000 1,195,021 8/30/2021 8/29/2022 4.35 % Zijin Rural Commercial Bank** 4,750,000 737,188 3/24/2021 3/24/2022 4.35 % Zijin Rural Commercial Bank** 2,000,000 310,395 3/26/2021 3/25/2022 4.35 % Bank of China** 1,000,000 155,198 7/7/2021 7/5/2022 4.20 % Bank of China** 4,000,000 620,790 7/15/2021 7/11/2022 4.20 % Bank of China** 2,000,000 310,395 7/15/2021 7/11/2022 4.20 % Bank of China** 7,200,000 1,117,422 5/24/2021 5/24/2022 3.90 % Bank of China** 2,800,000 434,553 6/23/2021 6/23/2022 3.90 % Total 106,450,000 $ 16,520,781 * The loans from Bank of Chengdu with an annual interest rate of 8.50% were guaranteed by Chengdu Juyuan Financing Co., Ltd. (“Chengdu Juyuan”). The interest rate 8.50% includes interests paid to Bank of Chendu and guarantee fee paid to Chengdu Juyuan. ** As of September 30, 2021, a total of $9,847,286 bank loans were guaranteed by, or pledged by the personal assets owned by, the Company’s major shareholder, Mr. Tao Ling and his immediate family members. No guarantee-fee was charged by Mr. Tao Ling and his immediate family members for the guarantees for the fiscal year ended September 30, 2021. *** All short-term borrowings as of September 30, 2021 were repaid or renewed upon maturity. |
Schedule of company’s bank loans are guaranteed by the Company’s major shareholder | September 30, September 30, Buildings, net $ 659,777 $ 724,859 Bank deposit 321,980 — Total $ 981,757 $ 724,859 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of nature of relationships with related parties | Name Relationship with the Company Tao Ling Principal shareholder, Chief Executive Officer and Chairman of the Company Xiaohong Yin Principal shareholder and director of the Company Bozhen Gong Immediate family member of Tao Ling Yun Tan Immediate family member of Tao Ling Luzhou Nachuan Investment Limited An entity which owns 5% equity interest of Luzhou Aozhi |
Schedule of related party transactions | Name of Related Parties Borrowing/ Payment/ Xiaohong Yin $ 2,441,555 $ 4,303,242 Bozhen Gong 305,194 1,068,180 Total $ 2,746,749 $ 5,371,422 Name of related parties Borrowing Amount Payment Amount Tao Ling $ 1,719,857 $ 1,873,141 Xiaohong Yin 6,085,410 4,215,335 Bozhen Gong 858,395 567,154 Yun Tan 429,198 229,927 Total $ 9,092,860 $ 6,885,557 |
Schedule of net outstanding balances with related parties | Accounts Name of Related Parties September 30, September 30, Due to related parties Xiaohong Yin $ - $ 1,893,410 Due to related parties Bozhen Gong 295,213 1,101,903 Due to related parties Yun Tan 182,751 201,757 Total due to related parties $ 477,964 $ 3,197,070 |
Other Income (Expenses), Net (T
Other Income (Expenses), Net (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Other Income (Expenses), Net [Abstract] | |
Schedule of other income (expenses) | For the years ended 2022 2021 2020 Government subsidies* $ 1,505,943 $ 517,054 $ 16,718 Gain from settlement of payables** - 556,808 - Other miscellaneous non-business income (loss) (226,384 ) 59,241 (84,088 ) Total other income (expenses), net $ 1,279,559 $ 1,133,103 $ (67,370 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of reconciled to the income before income taxes | For the years ended 2022 2021 2020 Income before taxes excluded the amounts of loss incurring entities $ 4,936,803 $ 4,849,826 $ 1,659,567 PRC EIT tax rates 25%, 15% 25%, 15% 15 % Tax at the PRC EIT tax rates $ 740,521 $ 763,440 $ 248,935 Tax effect of R&D expenses deduction (618,891 ) (1,105,212 ) (29,558 ) Tax effect of deferred tax recognized 106,775 208,832 (347,833 ) Tax effect of non-deductible expenses 98,538 75,854 1,732 Income tax provision $ 326,942 $ (57,086 ) $ (126,725 ) |
Schedule of income taxes | For the fiscal years ended 2022 2021 2020 Current income tax $ 118,905 $ (265,918 ) $ 173,271 Deferred income tax 208,037 208,832 (299,996 ) Total income tax provision $ 326,942 $ (57,086 ) $ (126,725 ) |
Schedule of deferred tax assets and deferred tax liabilities | September 30, September 30, Deferred tax assets: Bad debt allowance $ 85,006 $ 14,125 Inventory impairment provision 164,987 161,693 Other deductible temporary difference (55,232 ) (7,583 ) Net operating loss carry-forward 371,643 504,944 Total $ 566,404 $ 673,179 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of capital commitments under non-cancelable agreements | Future payments Capital October 2022 to September 2023 $ 323,086 October 2023 to September 2024 7,301,011 October 2024 to September 2025 - October 2025 to September 2026 - October 2026 to September 2027 - Thereafter - Total $ 7,624,098 |
Disaggregated Revenue (Tables)
Disaggregated Revenue (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Disclosure Text Block [Abstract] | |
Schedule of revenue by major product categories | September 30, 2022 September 30, 2021 September 30, 2020 Revenue Category Revenue As % Revenue As % Revenue As % Sales of display modules $ 35,113,651 34 % $ 96,087,963 58 % $ 100,304,865 72 % Sales of polarizers 62,709,731 59 % 62,625,352 37 % 36,794,524 26 % Research and developments 5,715,914 5 % - - % - - % Others 1,877,450 2 % 9,031,486 5 % 2,974,528 2 % Total $ 105,416,746 100 % $ 167,744,801 100 % $ 140,073,917 100 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of revenues by geographic areas | September 30, 2022 September 30, 2021 September 30, 2020 Country/Region Revenue As % Revenue As % Revenue As % Mainland China $ 96,449,118 92 % $ 133,852,929 80 % $ 102,253,954 73 % Hong Kong and Taiwan 8,948,112 8 % 32,244,188 19 % 29,415,528 21 % Others 19,516 - % 1,647,684 1 % 8,404,435 6 % Total $ 105,416,746 100 % $ 167,744,801 100 % $ 140,073,917 100 % |
Condensed Financial Informati_2
Condensed Financial Information of The Parent Company (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed financial information | As of September 30, 2022 2021 ASSETS Cash and cash equivalents $ 17,673 $ - Prepayments, deposits and other current assets 8,828,142 - Investment in subsidiaries 13,340,885 10,857,182 Total assets $ 22,186,700 $ 10,857,182 LIABILITIES AND SHAREHOLDERS’ EQUITY Total liabilities $ - $ - SHAREHOLDERS’ EQUITY Common stock, $0.0001 par value, 500,000,000 shares authorized, 14,006,250 and 10,250,000 shares issued and outstanding as of September 30, 2022 and 2021 1,401 1,013 Additional paid-in capital 23,256,219 10,856,169 Retained earnings (1,070,920 ) - Accumulated other comprehensive loss - - Total equity of the Company’s shareholders 22,186,700 10,857,182 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 22,186,700 $ 10,857,182 For the years ended 2022 2021 2020 Operating expenses: - - General and administrative expenses $ (1,070,920 ) $ - $ - Total operating expenses (1,070,920 ) Net loss $ (1,070,920 ) $ - $ - Other comprehensive loss: - Foreign currency translation adjustment, net of nil tax $ (1,070,920 ) $ - $ - Total comprehensive loss $ (1,070,920 ) $ - $ - For the years ended 2022 2021 2020 Cash Flows from Operating Activities: Net loss $ (1,070,920 ) $ - $ - Changes in operating assets and liabilities: Prepaid expenses and other receivables (556,141 ) - - Net cash used in operating activities (1,627,061 ) - - Cash Flows from Investing Activities: Long-term investment (4,078,601 ) - - Net cash used in investing activities (4,078,601 ) - - Cash Flows from Financing Activities: Proceeds received from stock issuance 12,409,022 Payments to related parties (6,685,687 ) - - Net cash provided by financing activities 5,723,335 - - Effect of changes in currency exchange rates - - - Net (decrease) increase in cash and cash equivalents 17,673 - - Cash, cash equivalents and restricted cash at the beginning of year - - - Cash and cash equivalents and restricted cash at the end of year $ 17,673 $ - $ - |
Organization and Nature of Op_3
Organization and Nature of Operations (Details) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) m² | Aug. 31, 2021 | Jun. 29, 2020 | |
Organization and Nature of Operations (Details) [Line Items] | |||||
Aggregate area (in Square Meters) | 54,759 | ||||
Outstanding shares percentage | 97.85% | ||||
Aggregate of shares percentage | 97.85% | ||||
Purchase consideration | $ 338,652 | ¥ 2,409,000 | $ 338,652 | ||
Mr. Tao Ling [Member] | |||||
Organization and Nature of Operations (Details) [Line Items] | |||||
Equity interests percentage | 28.90% | 100% | |||
Jiangsu Austin [Member] | |||||
Organization and Nature of Operations (Details) [Line Items] | |||||
Equity interests percentage | 2.15% | 2.15% | |||
Jiangsu Austin [Member] | Acquisition of non-controlling interest [Member] | |||||
Organization and Nature of Operations (Details) [Line Items] | |||||
Equity interests percentage | 2.15% | 2.15% | |||
Mr. Tao Ling [Member] | |||||
Organization and Nature of Operations (Details) [Line Items] | |||||
Owns of equity interest | 39.99% | ||||
Mr. Xiaohong Yin [Member] | |||||
Organization and Nature of Operations (Details) [Line Items] | |||||
Owns of equity interest | 9.51% | ||||
Jiangsu Austin [Member] | |||||
Organization and Nature of Operations (Details) [Line Items] | |||||
Owns of equity interest | 100% | 100% | |||
Jiangsu Austin [Member] | |||||
Organization and Nature of Operations (Details) [Line Items] | |||||
Outstanding shares percentage | 9.97% | ||||
Aggregate of shares percentage | 39.97% | ||||
Issued and outstanding shares percentage | 97.85% | ||||
Ostin [Member] | |||||
Organization and Nature of Operations (Details) [Line Items] | |||||
Outstanding shares percentage | 100% | ||||
Mr. Tao Ling [Member] | Jiangsu Austin [Member] | |||||
Organization and Nature of Operations (Details) [Line Items] | |||||
Outstanding shares percentage | 87.88% |
Organization and Nature of Op_4
Organization and Nature of Operations (Details) - Schedule of acquisition of non-controlling interest in Jiangsu Austin | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2022 USD ($) | Jun. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | |
Schedule Of Acquisition Of Non Controlling Interest In Jiangsu Austin Abstract | |||
Purchase consideration | $ 338,652 | ¥ 2,409,000 | $ 338,652 |
Noncontrolling interests | 330,068 | ||
Additional paid-in capital | 8,584 | ||
Noncontrolling interests, total | $ 338,652 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |||
Apr. 01, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Organization and Nature of Operations [Abstract] | ||||
Paid to suppliers | $ 496,531 | $ 311,811 | ||
Residual value percentage | 5% | |||
Interest expense | $ 67,747 | 128,808 | ||
VAT rate | 13% | |||
Subsidies received | 1,505,943 | 517,054 | $ 16,718 | |
Shipping and handling costs | $ 396,899 | $ 511,741 | $ 573,669 | |
Tax benefit percentage | 50% |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of relevant exchange rates | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Schedule of relevant exchange Rates [Abstract] | |||
Period ended RMB: USD exchange rate | 7.1135 | 6.4434 | 6.7896 |
Period average RMB: USD exchange rate | 6.5532 | 6.5238 | 7.0056 |
Significant Accounting Polici_5
Significant Accounting Policies (Details) - Schedule of Property, plant, and equipment | 12 Months Ended |
Sep. 30, 2022 | |
Building [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 20 years |
Machinery and equipment [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 5 years |
Machinery and equipment [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 10 years |
Transportation vehicles [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 4 years |
Transportation vehicles [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 5 years |
Office equipment [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 3 years |
Office equipment [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 5 years |
Electronic equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 3 years |
Significant Accounting Polici_6
Significant Accounting Policies (Details) - Schedule of land use rights | 12 Months Ended |
Sep. 30, 2022 | |
Minimum [Member] | |
Significant Accounting Policies (Details) - Schedule of land use rights [Line Items] | |
Land use rights | 20 years |
Maximum [Member] | |
Significant Accounting Policies (Details) - Schedule of land use rights [Line Items] | |
Land use rights | 50 years |
Significant Accounting Polici_7
Significant Accounting Policies (Details) - Schedule of intangible assets estimated useful lives | 12 Months Ended |
Sep. 30, 2022 | |
Software [Member] | |
Significant Accounting Policies (Details) - Schedule of intangible assets estimated useful lives [Line Items] | |
Intangible assets | 3 years |
Patent [Member] | |
Significant Accounting Policies (Details) - Schedule of intangible assets estimated useful lives [Line Items] | |
Intangible assets | 10 years |
Significant Accounting Polici_8
Significant Accounting Policies (Details) - Schedule of third-party lenders - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Schedule of third party lenders [Abstract] | ||
Total loan payable | $ 165,144 | $ 1,070,602 |
Current portion of loan payable (included in accrued and other current liabilities) | (165,144) | (876,580) |
Long-term liability | $ 194,022 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Credit Loss, Additional Improvements [Abstract] | ||
Doubtful accounts receivables | $ 0 | $ 94,166 |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of accounts receivable - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Schedule of Accounts Receivable [Abstract] | ||
Accounts receivable, gross | $ 6,303,689 | $ 25,645,693 |
Less: allowance for doubtful accounts | (33,184) | (94,166) |
Accounts receivable, net | $ 6,270,505 | $ 25,551,527 |
Accounts Receivable (Details)_2
Accounts Receivable (Details) - Schedule of an aged analysis of accounts receivables | Sep. 30, 2021 USD ($) |
Within 90 days [Member] | |
Accounts Receivable (Details) - Schedule of an aged analysis of accounts receivables [Line Items] | |
Accounts receivable, gross | $ 5,298,332 |
Allowance for doubtful accounts | |
Accounts receivable, net | 5,298,332 |
91-180 days [Member] | |
Accounts Receivable (Details) - Schedule of an aged analysis of accounts receivables [Line Items] | |
Accounts receivable, gross | 775,520 |
Allowance for doubtful accounts | |
Accounts receivable, net | 775,520 |
181-365 days [Member] | |
Accounts Receivable (Details) - Schedule of an aged analysis of accounts receivables [Line Items] | |
Accounts receivable, gross | 137,582 |
Allowance for doubtful accounts | (6,879) |
Accounts receivable, net | 130,703 |
Greater than 1 year [Member] | |
Accounts Receivable (Details) - Schedule of an aged analysis of accounts receivables [Line Items] | |
Accounts receivable, gross | 92,255 |
Allowance for doubtful accounts | (26,305) |
Accounts receivable, net | 65,950 |
Accounts receivable, net [Member] | |
Accounts Receivable (Details) - Schedule of an aged analysis of accounts receivables [Line Items] | |
Accounts receivable, gross | 6,303,689 |
Allowance for doubtful accounts | (33,184) |
Accounts receivable, net | $ 6,270,505 |
Accounts Receivable (Details)_3
Accounts Receivable (Details) - Schedule of changes of allowance for doubtful accounts - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Changes of Allowance for Doubtful Accounts [Abstract] | ||
Beginning balance | $ 94,166 | |
Additional reserve through bad debt expense | 94,166 | |
Bad debt write-off | (60,982) | |
Ending balance | $ 33,184 | $ 94,166 |
Notes Receivable (Details)
Notes Receivable (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Notes Receivable [Abstract] | ||
Notes receivable letter of credit | $ 0 | $ 101,361 |
Inventories (Details)
Inventories (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |||
Goods in transit | $ 3,005,549 | $ 3,210,522 | |
Inventory provision | $ 21,962 | $ 780,366 | $ 288,411 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Schedule of inventories [Abstract] | ||
Raw materials | $ 6,401,458 | $ 9,680,601 |
Work in process | 7,830 | 5,530 |
Finished goods | 7,117,789 | 6,867,979 |
Goods in transit | 3,005,549 | 3,210,522 |
Inventory provision | (1,099,914) | (1,077,952) |
Total inventories, net | $ 15,432,712 | $ 186,866,807 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment, Net [Abstract] | |||
Depreciation expense | $ 2,309,263 | $ 1,841,250 | $ 1,080,675 |
Purchased new property plant and equipment | 5,122,095 | 6,211,335 | |
Net book value | $ 719,262 | $ 497,172 | |
Cost | $938,669 | $1,613,185 | |
Accumulated depreciation | $ 219,407 | $ 1,116,013 | |
Cash from disposal | 1,515,045 | 1,024,990 | |
Net disposal income | $ 795,783 | $ 527,818 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Details) - Schedule of property plant and equipment - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, at cost | $ 25,012,723 | $ 23,439,561 |
Less: accumulated depreciation | (5,596,894) | (4,071,228) |
Property, plant and equipment, net | 19,415,829 | 19,368,333 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, at cost | 10,384,017 | 10,681,720 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, at cost | 7,632,069 | 6,812,581 |
Electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, at cost | 1,876,114 | 2,438,059 |
Transportation vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, at cost | 219,449 | 241,906 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, at cost | 280,455 | 261,972 |
Leasehold improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, at cost | 793,929 | 718,740 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, at cost | $ 3,826,690 | $ 2,284,583 |
Land Use Rights, Net (Details)
Land Use Rights, Net (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Land Use Rights Net [Abstract] | |||
Amortization expense for land use rights | $ 78,926 | $ 85,842 | $ 18,447 |
Land Use Rights, Net (Details)
Land Use Rights, Net (Details) - Schedule of land use rights - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Land use rights, at cost | $ 1,454,194 | $ 1,604,549 |
Less: accumulated amortization | (169,603) | (106,970) |
Total land use rights, net | $ 1,284,591 | $ 1,497,579 |
Land Use Rights, Net (Details_2
Land Use Rights, Net (Details) - Schedule of estimated future amortization expense for land use rights | Sep. 30, 2022 USD ($) |
Land Use Rights, Net (Details) - Schedule of estimated future amortization expense for land use rights [Line Items] | |
2023 | $ 72,709 |
2024 | 72,709 |
2025 | 72,709 |
2026 | 72,709 |
2027 | 72,709 |
Thereafter | 921,046 |
Total | $ 1,284,591 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Patent rights | $ 1,100,000 | ||
Software | 117,030 | ||
Developed new capitalized software | 1,843,571 | ||
Amortization expense | $ 214,703 | $ 199,913 | $ 327,636 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of intangible assets, net - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Intangible Assets, Net (Details) - Schedule of intangible assets, net [Line Items] | ||
Total intangible assets, at cost | $ 3,898,837 | $ 935,587 |
Less: accumulated amortization | (930,092) | (808,458) |
Intangible assets, net | 2,968,745 | 127,129 |
Software, cost [Member] | ||
Intangible Assets, Net (Details) - Schedule of intangible assets, net [Line Items] | ||
Total intangible assets, at cost | 955,266 | 935,587 |
Patent, cost [Member] | ||
Intangible Assets, Net (Details) - Schedule of intangible assets, net [Line Items] | ||
Total intangible assets, at cost | 1,100,000 | |
Capitalized software, cost [Member] | ||
Intangible Assets, Net (Details) - Schedule of intangible assets, net [Line Items] | ||
Total intangible assets, at cost | $ 1,843,571 |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of estimated future amortization expense for intangible assets | Sep. 30, 2022 USD ($) |
Schedule Of Estimated Future Amortization Expense For Intangible Assets Abstract | |
2023 | $ 725,887 |
2024 | 725,887 |
2025 | 685,592 |
2026 | 685,592 |
2027 | 145,787 |
Total | $ 2,968,745 |
Long-Term Investment (Details)
Long-Term Investment (Details) | Sep. 30, 2022 USD ($) | Jul. 31, 2022 CNY (¥) |
Long-Term Investment (Details) [Line Items] | ||
Company investment | $ | $ 210,867 | |
Nanjing Baituo Visual Technology Co., Ltd [Member] | ||
Long-Term Investment (Details) [Line Items] | ||
Equity percentage | 15% | |
Nanjing Baituo Visual Technology Co., Ltd [Member] | ||
Long-Term Investment (Details) [Line Items] | ||
Company investment | ¥ | ¥ 1,500,000 |
Other Long-Term Receivable (Det
Other Long-Term Receivable (Details) - Schedule of other long-term receivable - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of other long-term receivable [Abstract] | ||
Escrow deposits for IPO proceeds | $ 400,000 | |
Long- term deposits for contracts performance | 313,986 | |
Other long-term receivables | 109,130 | |
Total | $ 823,116 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - Schedule of accrued expenses and other current liabilities - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Schedule of accrued expenses and other current liabilities [Abstract] | ||
Deferred government subsidies | $ 999,685 | $ 1,185,945 |
Current portion of long-term payable | 165,144 | 876,580 |
Notes payable | 150,973 | |
Taxes payable | 250,718 | |
Other payables and accruals | 383,602 | 569,845 |
Total | $ 1,950,122 | $ 2,632,370 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Short-Term Borrowings (Details) [Line Items] | ||
Bank loans | $ 5,215,436 | |
Annual interest rate | 8.50% | |
Interest rate | 8.50% | |
Short term borrowings bear interest | 3.70% | |
Interest expense borrowings | $ 499,708 | $ 370,847 |
Short term loan from third parties | 6,823,293 | 15,896,637 |
Short term borrowing interest expense | $ 1,536,169 | 1,001,575 |
Short-Term Debt [Member] | ||
Short-Term Borrowings (Details) [Line Items] | ||
Bank loan guaranteed | $ 9,847,286 |
Short-Term Borrowings (Detail_2
Short-Term Borrowings (Details) - Schedule of short-term borrowings - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Schedule of short-term borrowings [Abstract] | ||
Short-term bank loans | $ 14,469,670 | $ 16,520,781 |
Short-term loans from third-party individuals and entities | 6,823,293 | 15,896,637 |
Total | $ 21,292,963 | $ 32,417,418 |
Short-Term Borrowings (Detail_3
Short-Term Borrowings (Details) - Short-term bank loans | 12 Months Ended | ||||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 CNY (¥) | ||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 14,469,670 | $ 16,520,781 | ¥ 102,930,000 | ¥ 106,450,000 | |
Amount - USD | 14,469,670 | 16,520,781 | 102,930,000 | 106,450,000 | |
Bank of Nanjing [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [1] | 1,405,778 | 10,000,000 | ||
Amount - USD | [1] | $ 1,405,778 | ¥ 10,000,000 | ||
Issuance Date | [1] | Jul. 05, 2022 | |||
Expiration Date | [1] | Jul. 03, 2023 | |||
Interest | [1] | 3.70% | 3.70% | ||
Bank of Nanjing 1 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [2] | $ 969,987 | ¥ 6,900,000 | ||
Amount - USD | [2] | $ 969,987 | ¥ 6,900,000 | ||
Issuance Date | [2] | Oct. 13, 2021 | |||
Expiration Date | [2] | Oct. 12, 2022 | |||
Interest | [2] | 4.35% | 4.35% | ||
Bank of Nanjing 2 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [1] | $ 702,889 | ¥ 5,000,000 | ||
Amount - USD | [1] | $ 702,889 | ¥ 5,000,000 | ||
Issuance Date | [1] | May 24, 2022 | |||
Expiration Date | [1] | May 19, 2023 | |||
Interest | [1] | 3.80% | 3.80% | ||
Bank of Communications [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 857,524 | ¥ 6,100,000 | |||
Amount - USD | $ 857,524 | ¥ 6,100,000 | |||
Issuance Date | Jul. 26, 2022 | ||||
Expiration Date | Jul. 25, 2023 | ||||
Interest | 3.70% | 3.70% | |||
Bank of Communications 1 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 281,156 | ¥ 2,000,000 | |||
Amount - USD | $ 281,156 | ¥ 2,000,000 | |||
Issuance Date | Aug. 04, 2022 | ||||
Expiration Date | Aug. 02, 2023 | ||||
Interest | 3.70% | 3.70% | |||
Bank of Communications 2 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 587,614 | ¥ 4,180,000 | |||
Amount - USD | $ 587,614 | ¥ 4,180,000 | |||
Issuance Date | Sep. 19, 2022 | ||||
Expiration Date | Sep. 15, 2023 | ||||
Interest | 3.65% | 3.65% | |||
Bank of Communications 3 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 421,733 | ¥ 3,000,000 | |||
Amount - USD | $ 421,733 | ¥ 3,000,000 | |||
Issuance Date | Sep. 19, 2022 | ||||
Expiration Date | Sep. 15, 2023 | ||||
Interest | 3.65% | 3.65% | |||
Bank of Communications 4 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 309,271 | ¥ 2,200,000 | |||
Amount - USD | $ 309,271 | ¥ 2,200,000 | |||
Issuance Date | Apr. 25, 2022 | ||||
Expiration Date | Apr. 23, 2023 | ||||
Interest | 3.70% | 3.70% | |||
Bank of Communications 5 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 1,096,507 | ¥ 7,800,000 | |||
Amount - USD | $ 1,096,507 | ¥ 7,800,000 | |||
Issuance Date | Apr. 24, 2022 | ||||
Expiration Date | Apr. 21, 2023 | ||||
Interest | 3.70% | 3.70% | |||
Bank of Chengdu [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 984,044 | ¥ 7,000,000 | |||
Amount - USD | $ 984,044 | ¥ 7,000,000 | |||
Issuance Date | May 20, 2022 | ||||
Expiration Date | May 19, 2023 | ||||
Interest | 4.55% | 4.55% | |||
Bank of Chengdu 1 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [1] | $ 702,889 | ¥ 5,000,000 | ||
Amount - USD | [1] | $ 702,889 | ¥ 5,000,000 | ||
Issuance Date | [1] | Mar. 24, 2022 | |||
Expiration Date | [1] | Mar. 23, 2023 | |||
Interest | [1] | 4.55% | 4.55% | ||
Zijin Rural Commercial Bank [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 281,156 | ¥ 2,000,000 | |||
Amount - USD | $ 281,156 | ¥ 2,000,000 | |||
Issuance Date | Mar. 17, 2022 | ||||
Expiration Date | Mar. 16, 2023 | ||||
Interest | 4.45% | 4.45% | |||
Bank of China [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [1] | $ 421,733 | ¥ 3,000,000 | ||
Amount - USD | [1] | $ 421,733 | ¥ 3,000,000 | ||
Issuance Date | [1] | Aug. 10, 2022 | |||
Expiration Date | [1] | Aug. 03, 2023 | |||
Interest | [1] | 3.70% | 3.70% | ||
Bank of China 1 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [1] | $ 1,405,778 | ¥ 10,000,000 | ||
Amount - USD | [1] | $ 1,405,778 | ¥ 10,000,000 | ||
Issuance Date | [1] | Aug. 19, 2022 | |||
Expiration Date | [1] | Aug. 19, 2023 | |||
Interest | [1] | 3.90% | 3.90% | ||
Bank of Jiangsu [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 1,405,778 | ¥ 10,000,000 | |||
Amount - USD | $ 1,405,778 | ¥ 10,000,000 | |||
Issuance Date | Aug. 11, 2022 | ||||
Expiration Date | Aug. 10, 2023 | ||||
Interest | 4.36% | 4.36% | |||
Bank of Ningbo [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 1,265,200 | ¥ 9,000,000 | |||
Amount - USD | $ 1,265,200 | ¥ 9,000,000 | |||
Issuance Date | Jun. 23, 2022 | ||||
Expiration Date | Jun. 20, 2023 | ||||
Interest | 4.20% | 4.20% | |||
Bank of Yongfeng | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [3] | $ 667,744 | ¥ 4,750,000 | ||
Amount - USD | [3] | $ 667,744 | ¥ 4,750,000 | ||
Issuance Date | [3] | Apr. 01, 2022 | |||
Expiration Date | [3] | Sep. 16, 2022 | |||
Interest | [3] | 4.90% | 4.90% | ||
Bank of Yongfeng 1 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 702,889 | ¥ 5,000,000 | |||
Amount - USD | $ 702,889 | ¥ 5,000,000 | |||
Issuance Date | Aug. 25, 2022 | ||||
Expiration Date | Feb. 24, 2023 | ||||
Interest | 4.20% | 4.20% | |||
Bank of Nanjing 3 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [3],[4] | 1,396,778 | 9,000,000 | ||
Amount - USD | [3],[4] | $ 1,396,778 | ¥ 9,000,000 | ||
Issuance Date | [3],[4] | Apr. 19, 2021 | |||
Expiration Date | [3],[4] | Apr. 04, 2022 | |||
Interest | [3],[4] | 4.35% | 4.35% | ||
Bank of Nanjing 4 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [4] | $ 946,705 | ¥ 6,100,000 | ||
Amount - USD | [4] | $ 946,705 | ¥ 6,100,000 | ||
Issuance Date | [4] | Jul. 09, 2021 | |||
Expiration Date | [4] | Jul. 04, 2022 | |||
Interest | [4] | 4.35% | 4.35% | ||
Bank of Nanjing 5 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [4] | $ 1,070,863 | ¥ 6,900,000 | ||
Amount - USD | [4] | $ 1,070,863 | ¥ 6,900,000 | ||
Issuance Date | [4] | Oct. 10, 2020 | |||
Expiration Date | [4] | Oct. 08, 2021 | |||
Interest | [4] | 5.66% | 5.66% | ||
Bank of Nanjing 6 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [4] | $ 465,593 | ¥ 3,000,000 | ||
Amount - USD | [4] | $ 465,593 | ¥ 3,000,000 | ||
Issuance Date | [4] | May 26, 2021 | |||
Expiration Date | [4] | May 19, 2022 | |||
Interest | [4] | 4.05% | 4.05% | ||
Bank of Nanjing 7 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [4] | $ 310,395 | ¥ 2,000,000 | ||
Amount - USD | [4] | $ 310,395 | ¥ 2,000,000 | ||
Issuance Date | [4] | May 24, 2021 | |||
Expiration Date | [4] | May 19, 2022 | |||
Interest | [4] | 4.05% | 4.05% | ||
Bank of Jiangsu 1 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 465,593 | ¥ 3,000,000 | |||
Amount - USD | $ 465,593 | ¥ 3,000,000 | |||
Issuance Date | Mar. 05, 2021 | ||||
Expiration Date | Mar. 04, 2022 | ||||
Interest | 4.36% | 4.36% | |||
Bank of Communications 6 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 310,395 | ¥ 2,000,000 | |||
Amount - USD | $ 310,395 | ¥ 2,000,000 | |||
Issuance Date | Jun. 29, 2021 | ||||
Expiration Date | Jun. 28, 2022 | ||||
Interest | 4.35% | 4.35% | |||
Bank of Communications 7 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 465,593 | ¥ 3,000,000 | |||
Amount - USD | $ 465,593 | ¥ 3,000,000 | |||
Issuance Date | Jul. 30, 2021 | ||||
Expiration Date | Jul. 29, 2022 | ||||
Interest | 4.35% | 4.35% | |||
Bank of Communications 8 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 310,395 | ¥ 2,000,000 | |||
Amount - USD | $ 310,395 | ¥ 2,000,000 | |||
Issuance Date | Jul. 30, 2021 | ||||
Expiration Date | Jan. 29, 2022 | ||||
Interest | 4.35% | 4.35% | |||
Bank of Communications 9 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 465,593 | ¥ 3,000,000 | |||
Amount - USD | $ 465,593 | ¥ 3,000,000 | |||
Issuance Date | Sep. 23, 2021 | ||||
Expiration Date | Sep. 22, 2022 | ||||
Interest | 4.35% | 4.35% | |||
China Citic Bank [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 775,988 | ¥ 5,000,000 | |||
Amount - USD | $ 775,988 | ¥ 5,000,000 | |||
Issuance Date | Aug. 06, 2021 | ||||
Expiration Date | Aug. 06, 2022 | ||||
Interest | 4.50% | 4.50% | |||
Bank of Chengdu 2 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [5] | $ 775,988 | ¥ 5,000,000 | ||
Amount - USD | [5] | $ 775,988 | ¥ 5,000,000 | ||
Issuance Date | [5] | May 27, 2021 | |||
Expiration Date | [5] | Nov. 26, 2021 | |||
Interest | [5] | 8.50% | 8.50% | ||
Bank of Chengdu 4 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [5] | $ 775,988 | ¥ 5,000,000 | ||
Amount - USD | [5] | $ 775,988 | ¥ 5,000,000 | ||
Issuance Date | [5] | Jul. 14, 2021 | |||
Expiration Date | [5] | Jan. 13, 2022 | |||
Interest | [5] | 8.50% | 8.50% | ||
Bank of Chengdu 5 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 775,988 | ¥ 5,000,000 | |||
Amount - USD | $ 775,988 | ¥ 5,000,000 | |||
Issuance Date | Jan. 25, 2021 | ||||
Expiration Date | [2] | Jan. 24, 2022 | |||
Interest | 4.55% | 4.55% | |||
Bank of Chengdu 6 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 1,086,383 | ¥ 7,000,000 | |||
Amount - USD | $ 1,086,383 | ¥ 7,000,000 | |||
Issuance Date | Apr. 26, 2021 | ||||
Expiration Date | Apr. 25, 2022 | ||||
Interest | 4.55% | 4.55% | |||
Bank of Chengdu 7 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | $ 465,593 | ¥ 3,000,000 | |||
Amount - USD | $ 465,593 | ¥ 3,000,000 | |||
Issuance Date | Jul. 15, 2021 | ||||
Expiration Date | Jul. 14, 2022 | ||||
Interest | 4.55% | 4.55% | |||
China Everbright Bank [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [4] | $ 775,988 | ¥ 5,000,000 | ||
Amount - USD | [4] | $ 775,988 | ¥ 5,000,000 | ||
Issuance Date | [4] | Mar. 31, 2021 | |||
Expiration Date | [4] | Mar. 30, 2022 | |||
Interest | [4] | 4.35% | 4.35% | ||
China Everbright Bank 1 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [4] | $ 1,195,021 | ¥ 7,700,000 | ||
Amount - USD | [4] | $ 1,195,021 | ¥ 7,700,000 | ||
Issuance Date | [4] | Aug. 30, 2021 | |||
Expiration Date | [4] | Aug. 29, 2022 | |||
Interest | [4] | 4.35% | 4.35% | ||
Zijin Rural Commercial Bank 1 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [4] | $ 737,188 | ¥ 4,750,000 | ||
Amount - USD | [4] | $ 737,188 | ¥ 4,750,000 | ||
Issuance Date | [4] | Mar. 24, 2021 | |||
Expiration Date | [4] | Mar. 24, 2022 | |||
Interest | [4] | 4.35% | 4.35% | ||
Zijin Rural Commercial Bank 2 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [4] | $ 310,395 | ¥ 2,000,000 | ||
Amount - USD | [4] | $ 310,395 | ¥ 2,000,000 | ||
Issuance Date | [4] | Mar. 26, 2021 | |||
Expiration Date | [4] | Mar. 25, 2022 | |||
Interest | [4] | 4.35% | 4.35% | ||
Bank of China 2 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [4] | $ 155,198 | ¥ 1,000,000 | ||
Amount - USD | [4] | $ 155,198 | ¥ 1,000,000 | ||
Issuance Date | [4] | Jul. 07, 2021 | |||
Expiration Date | [4] | Jul. 05, 2022 | |||
Interest | [4] | 4.20% | 4.20% | ||
Bank of China 3 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [4] | $ 620,790 | ¥ 4,000,000 | ||
Amount - USD | [4] | $ 620,790 | ¥ 4,000,000 | ||
Issuance Date | [4] | Jul. 15, 2021 | |||
Expiration Date | [4] | Jul. 11, 2022 | |||
Interest | [4] | 4.20% | 4.20% | ||
Bank of China 4 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [4] | $ 310,395 | ¥ 2,000,000 | ||
Amount - USD | [4] | $ 310,395 | ¥ 2,000,000 | ||
Issuance Date | [4] | Jul. 15, 2021 | |||
Expiration Date | [4] | Jul. 11, 2022 | |||
Interest | [4] | 4.20% | 4.20% | ||
Bank of China 5 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [4] | $ 1,117,422 | ¥ 7,200,000 | ||
Amount - USD | [4] | $ 1,117,422 | ¥ 7,200,000 | ||
Issuance Date | [4] | May 24, 2021 | |||
Expiration Date | [4] | May 24, 2022 | |||
Interest | [4] | 3.90% | 3.90% | ||
Bank of China 6 [Member] | |||||
Short-Term Borrowings (Details) - Short-term bank loans [Line Items] | |||||
Amount - RMB | [4] | $ 434,553 | ¥ 2,800,000 | ||
Amount - USD | [4] | $ 434,553 | ¥ 2,800,000 | ||
Issuance Date | [4] | Jun. 23, 2021 | |||
Expiration Date | [4] | Jun. 23, 2022 | |||
Interest | [4] | 3.90% | 3.90% | ||
[1]As of September 30, 2022, a total of $5,215,436 bank loans were guaranteed by, or pledged by the personal assets owned by, the Company’s major shareholder, Mr. Tao Ling and his immediate family members. No guarantee-fee was charged by Mr. Tao Ling and his immediate family members for the guarantees for the fiscal year ended September 30, 2022.[2] All short-term borrowings as of September 30, 2021 were repaid or renewed upon maturity. These short-term borrowings were repaid and renewed upon maturity. As of September 30, 2021, a total of $9,847,286 bank loans were guaranteed by, or pledged by the personal assets owned by, the Company’s major shareholder, Mr. Tao Ling and his immediate family members. No guarantee-fee was charged by Mr. Tao Ling and his immediate family members for the guarantees for the fiscal year ended September 30, 2021. The loans from Bank of Chengdu with an annual interest rate of 8.50% were guaranteed by Chengdu Juyuan Financing Co., Ltd. (“Chengdu Juyuan”). The interest rate 8.50% includes interests paid to Bank of Chendu and guarantee fee paid to Chengdu Juyuan. |
Short-Term Borrowings (Detail_4
Short-Term Borrowings (Details) - Schedule of company’s bank loans are guaranteed by the Company’s major shareholder - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Schedule of company’s bank loans are guaranteed by the Company’s major shareholder [Abstract] | ||
Buildings, net | $ 659,777 | $ 724,859 |
Bank deposit | 321,980 | |
Total | $ 981,757 | $ 724,859 |
Customer and Supplier Concent_2
Customer and Supplier Concentrations (Details) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Customer and Supplier Concentrations (Details) [Line Items] | ||
Concentration risk percentage | 10% | |
Revenue [Member] | ||
Customer and Supplier Concentrations (Details) [Line Items] | ||
Number of customers | 2 | 2 |
Accounts Receivable [Member] | ||
Customer and Supplier Concentrations (Details) [Line Items] | ||
Concentration risk percentage | 69% | |
Number of customers | 4 | 1 |
Customer One [Member] | Revenue [Member] | ||
Customer and Supplier Concentrations (Details) [Line Items] | ||
Concentration risk percentage | 53.80% | 38.20% |
Customer One [Member] | Accounts Receivable [Member] | ||
Customer and Supplier Concentrations (Details) [Line Items] | ||
Concentration risk percentage | 14.50% | |
Customer Two [Member] | Revenue [Member] | ||
Customer and Supplier Concentrations (Details) [Line Items] | ||
Concentration risk percentage | 13% | 14.70% |
Customer Two [Member] | Accounts Receivable [Member] | ||
Customer and Supplier Concentrations (Details) [Line Items] | ||
Concentration risk percentage | 14.50% | |
Customer Three [Member] | Accounts Receivable [Member] | ||
Customer and Supplier Concentrations (Details) [Line Items] | ||
Concentration risk percentage | 13.20% | |
Customer Four [Member] | Accounts Receivable [Member] | ||
Customer and Supplier Concentrations (Details) [Line Items] | ||
Concentration risk percentage | 11.10% | |
Suppliers [Member] | ||
Customer and Supplier Concentrations (Details) [Line Items] | ||
Number of suppliers | 2 | 2 |
Suppliers [Member] | Accounts Payable [Member] | ||
Customer and Supplier Concentrations (Details) [Line Items] | ||
Concentration risk percentage | 31.10% | |
Suppliers One [Member] | Purchase [Member] | ||
Customer and Supplier Concentrations (Details) [Line Items] | ||
Concentration risk percentage | 58.80% | 34.10% |
Suppliers One [Member] | Accounts Payable [Member] | ||
Customer and Supplier Concentrations (Details) [Line Items] | ||
Concentration risk percentage | 25.20% | |
Suppliers Two [Member] | Purchase [Member] | ||
Customer and Supplier Concentrations (Details) [Line Items] | ||
Concentration risk percentage | 10.50% | 17.80% |
Accounts Payable [Member] | ||
Customer and Supplier Concentrations (Details) [Line Items] | ||
Number of suppliers | 1 | 1 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Related Party Transactions [Abstract] | ||
Bank loans | $ 5,215,436 | $ 9,847,286 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of nature of relationships with related parties | 12 Months Ended |
Sep. 30, 2022 | |
Tao Ling [Member] | |
Related Party Transactions (Details) - Schedule of nature of relationships with related parties [Line Items] | |
Relationship with the Company | Principal shareholder, Chief Executive Officer and Chairman of the Company |
Xiaohong Yin [Member] | |
Related Party Transactions (Details) - Schedule of nature of relationships with related parties [Line Items] | |
Relationship with the Company | Principal shareholder and director of the Company |
Bozhen Gong [Member] | |
Related Party Transactions (Details) - Schedule of nature of relationships with related parties [Line Items] | |
Relationship with the Company | Immediate family member of Tao Ling |
Yun Tan [Member] | |
Related Party Transactions (Details) - Schedule of nature of relationships with related parties [Line Items] | |
Relationship with the Company | Immediate family member of Tao Ling |
Luzhou Nachuan Investment Limited [Member] | |
Related Party Transactions (Details) - Schedule of nature of relationships with related parties [Line Items] | |
Relationship with the Company | An entity which owns 5% equity interest of Luzhou Aozhi |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of related party transactions - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Related Party Transaction [Line Items] | ||
Borrowing Amount | $ 2,746,749 | $ 9,092,860 |
Payment Amount | 5,371,422 | 6,885,557 |
Xiaohong Yin [Member] | ||
Related Party Transaction [Line Items] | ||
Borrowing Amount | 2,441,555 | 6,085,410 |
Payment Amount | 4,303,242 | 4,215,335 |
Bozhen Gong [Member] | ||
Related Party Transaction [Line Items] | ||
Borrowing Amount | 305,194 | 858,395 |
Payment Amount | $ 1,068,180 | 567,154 |
Tao Ling [Member] | ||
Related Party Transaction [Line Items] | ||
Borrowing Amount | 1,719,857 | |
Payment Amount | 1,873,141 | |
Yun Tan [Member] | ||
Related Party Transaction [Line Items] | ||
Borrowing Amount | 429,198 | |
Payment Amount | $ 229,927 |
Related Party Transactions (D_4
Related Party Transactions (Details) - Schedule of net outstanding balances with related parties - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Related Party Transactions (Details) - Schedule of net outstanding balances with related parties [Line Items] | ||
Due to related parties | $ 477,964 | $ 3,197,070 |
Xiaohong Yin [Member] | ||
Related Party Transactions (Details) - Schedule of net outstanding balances with related parties [Line Items] | ||
Due to related parties | 1,893,410 | |
Bozhen Gong [Member] | ||
Related Party Transactions (Details) - Schedule of net outstanding balances with related parties [Line Items] | ||
Due to related parties | 295,213 | 1,101,903 |
Yun Tan [Member] | ||
Related Party Transactions (Details) - Schedule of net outstanding balances with related parties [Line Items] | ||
Due to related parties | $ 182,751 | $ 201,757 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Apr. 29, 2022 | Apr. 29, 2022 | Dec. 31, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stockholders’ Equity (Details) [Line Items] | ||||||
Ordinary share authorized | 500,000,000 | 500,000,000 | ||||
Ordinary share par value | $ 0.0001 | $ 0.0001 | ||||
Ordinary share issued | 14,006,250 | 10,250,000 | ||||
Ordinary share outstanding | 14,006,250 | 10,250,000 | ||||
Ordinary share surrender | 27,175,000 | 27,175,000 | ||||
Initial public offering | 3,881,250 | 3,881,250 | ||||
Gross proceeds | $ 15,525,000 | $ 15,525,000 | ||||
Net proceeds | 12,409,022 | 12,409,022 | ||||
Ordinary shares value | 388 | 388 | $ 1,401 | $ 1,013 | ||
Additional paid-in capital | $ 12,408,634 | $ 12,408,634 | ||||
Paid dividends | 96,276 | 88,870 | ||||
Statutory income | 1,496,314 | 1,033,653 | ||||
Non-controlling interests | $ 289,000 | $ 878,969 | ||||
Maximum [Member] | ||||||
Stockholders’ Equity (Details) [Line Items] | ||||||
Ordinary share issued | 37,300,000 | 10,125,000 | ||||
Ordinary share outstanding | 37,300,000 | 10,125,000 | ||||
After tax net income | 50% | |||||
Minimum [Member] | ||||||
Stockholders’ Equity (Details) [Line Items] | ||||||
Ordinary share issued | 10,125,000 | 37,300,000 | ||||
Ordinary share outstanding | 10,125,000 | 37,300,000 | ||||
After tax net income | 10% | |||||
Over-Allotment Option [Member] | ||||||
Stockholders’ Equity (Details) [Line Items] | ||||||
Price per share | $ 4 | $ 4 | ||||
Common Stock [Member] | ||||||
Stockholders’ Equity (Details) [Line Items] | ||||||
Ordinary share authorized | 500,000,000 | |||||
Ordinary share par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Ordinary share issued | 506,250 | 506,250 | 14,006,250 | |||
Ordinary share outstanding | 14,006,250 | |||||
Mr. Tao Ling [Member] | Common Stock [Member] | ||||||
Stockholders’ Equity (Details) [Line Items] | ||||||
Wholly owned | 28.90% | |||||
Mr. Xiaohong Yin [Member] | Common Stock [Member] | ||||||
Stockholders’ Equity (Details) [Line Items] | ||||||
Wholly owned | 6.90% |
Other Income (Expenses), Net (D
Other Income (Expenses), Net (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Other Income (Expenses), Net [Abstract] | |||
Government subsidies amount | $ 1,505,943 | $ 517,054 | $ 16,718 |
Other Income (Expenses), Net _2
Other Income (Expenses), Net (Details) - Schedule of other income expenses - USD ($) | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Schedule of other income expenses [Abstract] | ||||
Government subsidies | [1] | $ 1,505,943 | $ 517,054 | $ 16,718 |
Gain from settlement of payables | [2] | 556,808 | ||
Other miscellaneous non-business income (loss) | (226,384) | 59,241 | (84,088) | |
Total other income (expenses), net | $ 1,279,559 | $ 1,133,103 | $ (67,370) | |
[1]Government subsidies as the compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related cost are recognized in profit or loss in the period in which they become receivable. Government subsidies as the support for certain assets were recorded in deferred government subsidies and are amortized in the future periods. For the years ended September 30, 2022, 2021 and 2020, the Company recorded government subsidies of $1,505,943, $517,054 and $16,718, respectively.[2]For the year ended September 30, 2021, the Company reached settlements with its vendors for several old outstanding payables in which the Company had no further obligations to pay these balances. These balances were generated from vendors that the Company had no business with during the reporting periods or no intention to further cooperate with. |
Income Taxes (Details)
Income Taxes (Details) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Taxes (Details) [Line Items] | |||
Statutory income tax rate | 15% | ||
Preferential tax rate | 50% | ||
Preferential tax rate | 15% | 15% | 15% |
Hong Kong [Member] | |||
Income Taxes (Details) [Line Items] | |||
Statutory income tax rate | 16.50% | ||
PRC [Member] | |||
Income Taxes (Details) [Line Items] | |||
Statutory income tax rate | 25% | ||
High and New Technology Enterprise [Member] | |||
Income Taxes (Details) [Line Items] | |||
Preferential tax rate | 15% | ||
Renewed term | 3 years |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of reconciled to the income before income taxes - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Taxes (Details) - Schedule of reconciled to the income before income taxes [Line Items] | |||
Income before taxes excluded the amounts of loss incurring entities | $ 4,936,803 | $ 4,849,826 | $ 1,659,567 |
PRC EIT tax rates | 15% | ||
Tax at the PRC EIT tax rates | 740,521 | 763,440 | $ 248,935 |
Tax effect of R&D expenses deduction | (618,891) | (1,105,212) | (29,558) |
Tax effect of deferred tax recognized | 106,775 | 208,832 | (347,833) |
Tax effect of non-deductible expenses | 98,538 | 75,854 | 1,732 |
Income tax provision | $ 326,942 | $ (57,086) | $ (126,725) |
Maximum [Member] | |||
Income Taxes (Details) - Schedule of reconciled to the income before income taxes [Line Items] | |||
PRC EIT tax rates | 25% | 25% | |
Minimum [Member] | |||
Income Taxes (Details) - Schedule of reconciled to the income before income taxes [Line Items] | |||
PRC EIT tax rates | 15% | 15% |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of income taxes - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule Of Income Taxes Abstract | |||
Current income tax | $ 118,905 | $ (265,918) | $ 173,271 |
Deferred income tax | 208,037 | 208,832 | (299,996) |
Total income tax provision | $ 326,942 | $ (57,086) | $ (126,725) |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of deferred tax assets and deferred tax liabilities - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Deferred tax assets: | ||
Bad debt allowance | $ 85,006 | $ 14,125 |
Inventory impairment provision | 164,987 | 161,693 |
Other deductible temporary difference | (55,232) | (7,583) |
Net operating loss carry-forward | 371,643 | 504,944 |
Total | $ 566,404 | $ 673,179 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - Schedule of capital commitments under non-cancelable agreements | Sep. 30, 2022 USD ($) |
Schedule of capital commitments under non-cancelable agreements [Abstract] | |
October 2022 to September 2023 | $ 323,086 |
October 2023 to September 2024 | 7,301,011 |
October 2024 to September 2025 | |
October 2025 to September 2026 | |
October 2026 to September 2027 | |
Thereafter | |
Total | $ 7,624,098 |
Disaggregated Revenue (Details)
Disaggregated Revenue (Details) - Schedule of revenue by major product categories - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Product category revenue amount | $ 105,416,746 | $ 167,744,801 | $ 140,073,917 |
Product category % of revenue | 100% | 100% | 100% |
Sales of Display Modules [Member] | |||
Segment Reporting Information [Line Items] | |||
Product category revenue amount | $ 35,113,651 | $ 96,087,963 | $ 100,304,865 |
Product category % of revenue | 34% | 58% | 72% |
Sales of Polarizers [Member] | |||
Segment Reporting Information [Line Items] | |||
Product category revenue amount | $ 62,709,731 | $ 62,625,352 | $ 36,794,524 |
Product category % of revenue | 59% | 37% | 26% |
Research and Developments [Member] | |||
Segment Reporting Information [Line Items] | |||
Product category revenue amount | $ 5,715,914 | ||
Product category % of revenue | 5% | ||
Others [Member] | |||
Segment Reporting Information [Line Items] | |||
Product category revenue amount | $ 1,877,450 | $ 9,031,486 | $ 2,974,528 |
Product category % of revenue | 2% | 5% | 2% |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of revenues by geographic areas - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting (Details) - Schedule of revenues by geographic areas [Line Items] | |||
Sales Amount | $ 105,416,746 | $ 167,744,801 | $ 140,073,917 |
Sales Percentage | 100% | 100% | 100% |
Mainland China [Member] | |||
Segment Reporting (Details) - Schedule of revenues by geographic areas [Line Items] | |||
Sales Amount | $ 96,449,118 | $ 133,852,929 | $ 102,253,954 |
Sales Percentage | 92% | 80% | 73% |
Hong Kong and Taiwan [Member] | |||
Segment Reporting (Details) - Schedule of revenues by geographic areas [Line Items] | |||
Sales Amount | $ 8,948,112 | $ 32,244,188 | $ 29,415,528 |
Sales Percentage | 8% | 19% | 21% |
Others [Member] | |||
Segment Reporting (Details) - Schedule of revenues by geographic areas [Line Items] | |||
Sales Amount | $ 19,516 | $ 1,647,684 | $ 8,404,435 |
Sales Percentage | 1% | 6% |
Condensed Financial Informati_3
Condensed Financial Information of The Parent Company (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Apr. 29, 2022 | Apr. 29, 2022 | Dec. 31, 2020 | Sep. 30, 2022 | Sep. 30, 2020 | Sep. 30, 2021 | Jun. 29, 2020 | |
Condensed Financial Information of The Parent Company (Details) [Line Items] | |||||||
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 | |||||
Ordinary share par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | |||||
Ordinary share issued | 14,006,250 | 10,250,000 | |||||
Ordinary share outstanding | 14,006,250 | 10,250,000 | |||||
Ordinary share surrender | 27,175,000 | 27,175,000 | |||||
Initial public offering | 3,881,250 | 3,881,250 | |||||
Gross proceeds (in Dollars) | $ 15,525,000 | $ 15,525,000 | |||||
Net proceeds (in Dollars) | 12,409,022 | 12,409,022 | |||||
Ordinary shares value (in Dollars) | 388 | 388 | $ 1,401 | $ 1,013 | |||
Additional Paid in Capital, Common Stock (in Dollars) | $ 12,408,634 | $ 12,408,634 | |||||
Common Stock [Member] | |||||||
Condensed Financial Information of The Parent Company (Details) [Line Items] | |||||||
Ordinary share par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | |||||
Ordinary share issued | 506,250 | 506,250 | |||||
Initial public offering | 3,881,250 | ||||||
Mr. Tao Ling [Member] | |||||||
Condensed Financial Information of The Parent Company (Details) [Line Items] | |||||||
Ownership, percentage | 28.90% | 100% | |||||
Mr. Xiaohong Yin [Member] | |||||||
Condensed Financial Information of The Parent Company (Details) [Line Items] | |||||||
Ownership, percentage | 6.90% | ||||||
Minimum [Member] | |||||||
Condensed Financial Information of The Parent Company (Details) [Line Items] | |||||||
Ordinary share issued | 10,125,000 | 37,300,000 | |||||
Ordinary share outstanding | 10,125,000 | 37,300,000 | |||||
Maximum [Member] | |||||||
Condensed Financial Information of The Parent Company (Details) [Line Items] | |||||||
Ordinary share issued | 37,300,000 | 10,125,000 | |||||
Ordinary share outstanding | 37,300,000 | 10,125,000 | |||||
Over-Allotment Option [Member] | |||||||
Condensed Financial Information of The Parent Company (Details) [Line Items] | |||||||
Price per share (in Dollars per share) | $ 4 | $ 4 |
Condensed Financial Informati_4
Condensed Financial Information of The Parent Company (Details) - Schedule of condensed financial information - Parent [Member] - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
ASSETS | |||
Cash and cash equivalents | $ 17,673 | ||
Prepayments, deposits and other current assets | 8,828,142 | ||
Investment in subsidiaries | 13,340,885 | 10,857,182 | |
Total assets | 22,186,700 | 10,857,182 | |
Total liabilities | |||
SHAREHOLDERS’ EQUITY | |||
Common stock, $0.0001 par value, 500,000,000 shares authorized, 14,006,250 and 10,250,000 shares issued and outstanding as of September 30, 2022 and 2021 | 1,401 | 1,013 | |
Additional paid-in capital | 23,256,219 | 10,856,169 | |
Retained earnings | (1,070,920) | ||
Accumulated other comprehensive loss | |||
Total equity of the Company’s shareholders | 22,186,700 | 10,857,182 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 22,186,700 | 10,857,182 | |
General and administrative expenses | (1,070,920) | ||
Total operating expenses | (1,070,920) | ||
Net loss | (1,070,920) | ||
Foreign currency translation adjustment, net of nil tax | (1,070,920) | ||
Total comprehensive loss | (1,070,920) | ||
Cash Flows from Operating Activities: | |||
Net loss | (1,070,920) | ||
Changes in operating assets and liabilities: | |||
Prepaid expenses and other receivables | (556,141) | ||
Net cash used in operating activities | (1,627,061) | ||
Cash Flows from Investing Activities: | |||
Long-term investment | (4,078,601) | ||
Net cash used in investing activities | (4,078,601) | ||
Cash Flows from Financing Activities: | |||
Proceeds received from stock issuance | 12,409,022 | ||
Payments to related parties | (6,685,687) | ||
Net cash provided by financing activities | 5,723,335 | ||
Effect of changes in currency exchange rates | |||
Net (decrease) increase in cash and cash equivalents | 17,673 | ||
Cash, cash equivalents and restricted cash at the beginning of year | |||
Cash and cash equivalents and restricted cash at the end of year | $ 17,673 |
Condensed Financial Informati_5
Condensed Financial Information of The Parent Company (Details) - Schedule of condensed financial information (Parentheticals) - Parent [Member] - $ / shares | Sep. 30, 2022 | Sep. 30, 2021 |
Condensed Financial Statements, Captions [Line Items] | ||
Common stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 14,006,250 | 10,250,000 |
Common stock, shares outstanding | 14,006,250 | 10,250,000 |