Cover
Cover | 12 Months Ended |
Sep. 30, 2021shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Sep. 30, 2021 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2021 |
Current Fiscal Year End Date | --09-30 |
Entity File Number | 001-40517 |
Entity Registrant Name | BON NATURAL LIFE LIMITED |
Entity Central Index Key | 0001816815 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | C601, Gazelle Valley, |
Entity Address, Address Line Two | No.69 Jinye Road. |
Entity Address, Address Line Three | Xi’an Hi-tech Zone |
Entity Address, City or Town | Xi’an |
Entity Address, Country | CN |
Title of 12(b) Security | Common Stock, $0.0001 par value |
Trading Symbol | BON |
Security Exchange Name | NASDAQ |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 8,330,000 |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | C601, Gazelle Valley |
Entity Address, Address Line Two | No.69 Jinye Road |
Entity Address, Address Line Three | Xi’an Hi-tech Zone |
Entity Address, City or Town | Xi’an |
Entity Address, Country | CN |
City Area Code | + 0086 |
Local Phone Number | 29-88346301 |
Contact Personnel Name | Yongwei Hu |
Contact Personnel Email Address | bonnatural@appchem.cn |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
CURRENT ASSETS | ||
Cash | $ 1,903,867 | $ 53,106 |
Short-term investments | 1,703,314 | |
Accounts receivable, net | 6,152,807 | 5,771,008 |
Inventories, net | 1,596,492 | 1,016,442 |
Advance to suppliers, net | 4,094,312 | 3,491,145 |
Deferred initial public offering costs | 510,079 | |
Acquisition deposit | 1,000,000 | |
Prepaid expenses and other current assets | 98,960 | 7,434 |
TOTAL CURRENT ASSETS | 16,549,752 | 10,840,214 |
Property, plant and equipment, net | 19,228,642 | 14,171,963 |
Intangible assets, net | 411,056 | 140,993 |
Right-of-use lease assets, net | 201,007 | |
Deferred tax assets, net | 22,342 | 49,059 |
TOTAL ASSETS | 36,412,799 | 25,202,229 |
CURRENT LIABILITIES | ||
Short-term loans | 41,381 | 1,289,081 |
Current portion of long-term loans | 448,005 | 1,227,346 |
Third party loans | 690,327 | |
Accounts payable | 380,385 | 1,288,629 |
Due to related parties | 245,104 | 2,322,990 |
Taxes payable | 5,052,018 | 4,402,625 |
Deferred revenue | 1,096,101 | 385,978 |
Accrued expenses and other current liabilities | 41,711 | 56,604 |
Finance lease liabilities, current | 161,286 | 33,389 |
Operating lease liability, current | 62,871 | |
TOTAL CURRENT LIABILITIES | 7,528,862 | 11,696,969 |
Long-term loans | 2,173,532 | 2,482,251 |
Finance lease liabilities, noncurrent | 28,953 | |
Operating lease liability, noncurrent | 146,703 | |
TOTAL LIABILITIES | 9,878,050 | 14,179,220 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY | ||
Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 8,330,000 and 5,800,000 shares issued and outstanding as of September 30, 2021 and 2020, respectively | 833 | 580 |
Additional paid in capital | 15,540,433 | 5,251,205 |
Statutory reserve | 1,050,721 | 579,922 |
Retained earnings | 9,192,676 | 5,072,672 |
Accumulated other comprehensive income (loss) | 222,221 | (388,102) |
TOTAL BON NATURAL LIFE LIMITED SHAREHOLDERS’ EQUITY | 26,006,884 | 10,516,277 |
Non-controlling interest | 527,865 | 506,732 |
Total equity | 26,534,749 | 11,023,009 |
TOTAL LIABILITIES AND EQUITY | $ 36,412,799 | $ 25,202,229 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 24, 2020 | Jun. 17, 2020 | Dec. 11, 2019 |
Statement of Financial Position [Abstract] | |||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 | 50,000,000 | ||
Ordinary shares, shares issued | 8,330,000 | 5,800,000 | 5,166,667 | 15,500,000 | 15,500,000 |
Ordinary shares, shares outstanding | 8,330,000 | 5,800,000 | 5,166,667 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | |||
REVENUE | $ 25,494,564 | $ 18,219,959 | $ 16,396,018 |
COST OF REVENUE | (18,382,637) | (13,017,646) | (11,113,922) |
GROSS PROFIT | 7,111,927 | 5,202,313 | 5,282,096 |
OPERATING EXPENSES | |||
Selling expenses | (138,530) | (161,719) | (273,841) |
General and administrative expenses | (1,323,726) | (1,367,070) | (1,310,215) |
Research and development expenses | (249,050) | (205,359) | (522,867) |
Total operating expenses | (1,711,306) | (1,734,148) | (2,106,923) |
INCOME FROM OPERATIONS | 5,400,621 | 3,468,165 | 3,175,173 |
OTHER INCOME (EXPENSES) | |||
Interest income | 3,207 | 714 | 2,271 |
Interest expense | (417,266) | (329,102) | (333,190) |
Unrealized foreign transaction exchange gain (loss) | (45,124) | (248) | 5,281 |
Gain on disposal of fixed assets | 20,150 | ||
Government subsidies | 449,972 | 362,187 | 140,295 |
Income from short-term investments | 565 | ||
Other income | 38,409 | 132,713 | |
Total other income (expenses), net | 29,763 | 186,414 | (185,343) |
INCOME BEFORE INCOME TAX PROVISION | 5,430,384 | 3,654,579 | 2,989,830 |
INCOME TAX PROVISION | (820,931) | (556,262) | (427,194) |
NET INCOME | 4,609,453 | 3,098,317 | 2,562,636 |
Less: net income (loss) attributable to non-controlling interest | 18,650 | 71,644 | (11,167) |
NET INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED | 4,590,803 | 3,026,673 | 2,573,803 |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Total foreign currency translation adjustment | 612,806 | 450,234 | (281,699) |
TOTAL COMPREHENSIVE INCOME | 5,222,259 | 3,548,551 | 2,280,937 |
Less: comprehensive income (loss) attributable to non-controlling interest | 21,133 | 81,737 | (10,969) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED | $ 5,201,126 | $ 3,466,814 | $ 2,291,906 |
EARNINGS PER SHARE | |||
Basic | $ 0.69 | $ 0.58 | $ 0.50 |
Diluted | $ 0.68 | $ 0.58 | $ 0.50 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | |||
Basic | 6,615,833 | 5,210,649 | 5,166,667 |
Diluted | 6,706,235 | 5,210,649 | 5,166,667 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Statutory Reserve [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total Shareholders Equity [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Sep. 30, 2018 | $ 517 | $ 5,040,156 | $ 52,118 | $ (546,346) | $ 4,546,445 | $ 4,546,445 | ||
Beginning balance, shares at Sep. 30, 2018 | 5,166,667 | |||||||
Amortization of stock options | ||||||||
Appropriation to statutory reserve | 257,409 | (257,409) | ||||||
Net income (loss) | 2,573,803 | 2,573,803 | (11,167) | 2,562,636 | ||||
Capital contribution by non-controlling interest | 435,964 | 435,964 | ||||||
Foreign currency translation adjustment | (281,897) | (281,897) | 198 | (281,699) | ||||
Ending balance, value at Sep. 30, 2019 | $ 517 | 5,040,156 | 257,409 | 2,368,512 | (828,243) | 6,838,351 | 424,995 | 7,263,346 |
Ending balance, shares at Sep. 30, 2019 | 5,166,667 | |||||||
Ordinary shares issued | $ 63 | 63 | 63 | |||||
Ordinary shares issued, shares | 633,333 | |||||||
Amortization of share-based compensation | 211,049 | 211,049 | 211,049 | |||||
Amortization of stock options | ||||||||
Appropriation to statutory reserve | 322,513 | (322,513) | ||||||
Net income (loss) | 3,026,673 | 3,026,673 | 71,644 | 3,098,317 | ||||
Foreign currency translation adjustment | 440,141 | 440,141 | 10,093 | 450,234 | ||||
Ending balance, value at Sep. 30, 2020 | $ 580 | 5,251,205 | 579,922 | 5,072,672 | (388,102) | 10,516,277 | 506,732 | 11,023,009 |
Ending balance, shares at Sep. 30, 2020 | 5,800,000 | |||||||
Issuance of ordinary shares in initial public offerings, net | $ 253 | 9,822,097 | 9,822,350 | 9,822,350 | ||||
Issuance of ordinary shares in initial public offerings, net, shares | 2,530,000 | |||||||
Amortization of share-based compensation | 422,221 | 422,221 | 422,221 | |||||
Amortization of stock options | 44,910 | 44,910 | 44,910 | |||||
Appropriation to statutory reserve | 470,799 | (470,799) | ||||||
Net income (loss) | 4,590,803 | 4,590,803 | 18,650 | 4,609,453 | ||||
Foreign currency translation adjustment | 610,323 | 610,323 | 2,483 | 612,806 | ||||
Ending balance, value at Sep. 30, 2021 | $ 833 | $ 15,540,433 | $ 1,050,721 | $ 9,192,676 | $ 222,221 | $ 26,006,884 | $ 527,865 | $ 26,534,749 |
Ending balance, shares at Sep. 30, 2021 | 8,330,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities | |||
Net income | $ 4,609,453 | $ 3,098,317 | $ 2,562,636 |
Adjustments to reconcile net income to cash provided by operating activities | |||
Allowance for doubtful accounts | 2,948 | 22,137 | 34,328 |
Depreciation and amortization | 228,547 | 230,597 | 226,633 |
Inventory reserve (recovery) | (312,532) | 29,539 | |
Deferred income tax | 29,109 | (7,751) | (5,149) |
Amortization of operating lease right-of-use assets | 58,147 | ||
Amortization of stock options | 44,910 | ||
Unrealized foreign currency exchange loss (gain) | 45,124 | 248 | (5,281) |
Gain on disposal of property and equipment | (20,150) | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | (89,543) | (284,546) | (2,912,222) |
Inventories | (209,011) | 1,636,321 | 6,681,972 |
Advance to suppliers, net | (399,262) | (3,021,739) | 168,868 |
Prepaid expenses and other current assets | 2,642 | 72,116 | 173,609 |
Accounts payable | (969,414) | (1,982,205) | (78,356) |
Operating lease liabilities | (49,648) | ||
Taxes payable | 410,716 | 2,662,542 | 1,538,662 |
Deferred revenue | 684,030 | 161,045 | (1,223,824) |
Accrued expenses and other current liabilities | (33,092) | 46,605 | (57,053) |
Net cash provided by operating activities | 4,053,124 | 2,643,076 | 7,104,823 |
Cash flows from investing activities | |||
Purchase of short-term investments | (2,159,920) | ||
Proceeds upon redemption of short-term investments | 470,082 | ||
Purchase of property and equipment | (51,878) | (31,885) | (213,634) |
Capital expenditures on construction-in-progress | (4,432,941) | (4,301,103) | (6,861,257) |
Purchase of intangible assets | (269,088) | ||
Refund (payment) of acquisition deposit | (1,000,000) | 1,329,945 | (1,355,067) |
Net cash used in investing activities | (7,443,745) | (3,003,043) | (8,429,958) |
Cash flows from financing activities | |||
Net proceeds from issuance of Ordinary Shares in initial public offerings | 11,271,480 | ||
Proceeds from short-term loans | 1,257,225 | 2,033,570 | 4,008,293 |
Proceeds from long-term loans | 1,245,871 | 319,342 | |
Repayment of short-term loans | (2,563,433) | (2,872,778) | (4,514,482) |
Repayment of long-term loans | (2,522,101) | ||
Proceeds from (repayment of) borrowings from related parties | (2,262,378) | 1,067,808 | 543,976 |
Proceeds from (repayment of) third party loans | (721,484) | 238,133 | (101,793) |
Principal payment from (repayment of) finance lease | 169,153 | (392,030) | 432,722 |
Capital contribution from non-controlling interest | 435,964 | ||
Payment for deferred initial public offering costs | (521,651) | (281,553) | |
Net cash provided by financing activities | 5,352,682 | 112,492 | 804,680 |
Effect of changes of foreign exchange rates on cash | (111,300) | 6,810 | (6,630) |
Net increase (decrease) in cash | 1,850,761 | (240,665) | (527,085) |
Cash, beginning of year | 53,106 | 293,771 | 820,856 |
Cash, end of year | 1,903,867 | 53,106 | 293,771 |
Supplemental disclosure of cash flow information | |||
Cash paid for interest expense | 417,266 | 276,671 | 333,190 |
Cash paid for income tax | 2,411 | 115,179 | |
Supplemental disclosure of non-cash investing and financing activities | |||
Amortization of share-based compensation for initial public offering services | 422,221 | 211,112 | |
Right-of-use assets obtained in exchange for operating lease obligations | $ 257,564 |
ORGANIZATION AND BUSINESS DESCR
ORGANIZATION AND BUSINESS DESCRIPTION | 12 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BUSINESS DESCRIPTION | NOTE 1 – ORGANIZATION AND BUSINESS DESCRIPTION Business Bon Natural Life Limited (“Bon Natural” or the “Company”), through its wholly-owned subsidiaries and entities controlled through contractual arrangements, is engaged in the research and development, manufacturing and sales of functional active ingredients extracted from natural herb plants which are widely used by manufacturer customers in the functional food, personal care, cosmetic and pharmaceutical industries. The Company sells its products to customers located in both Chinese and international markets. Organizations Bon Natural Life Limited was incorporated as an exempted company with limited liability under the laws of the Cayman Islands on December 11, 2019. Bon Natural owns 100 Xi’an Cell and Molecule Information Technology Limited. (“Xi’an CMIT”) was formed on April 9, 2020, as a Wholly Foreign-Owned Enterprise (“WOFE”) in the People’s Republic of China (“PRC”). Bon Natural, Tea Essence, and Xi’an CMIT are currently not engaging in any active business operations and merely acting as holding companies. Prior to the reorganization described below, Mr. Yongwei Hu, the chairman of the board of directors and the chief executive officer of the Company, was the controlling shareholder of Xi’an App-Chem Bio(Tech) Co., Ltd. (“Xi’an App-Chem”), an entity incorporated on April 23, 2006 in accordance with PRC laws. Xi’an App-Chem owns 100 In addition, Xi’an App-Chem also owns majority of the equity interest in the following two entities: Xi’an Dietary Therapy Medical Technology Co., Ltd (“Xi’an DT”) was incorporated on April 24, 2015 in accordance with PRC laws, with 75% 51% 100% On September 27, 2021, the Company disposed Balikun to a third party for RMB 1.00 Xi’an App-Chem, together with its subsidiaries are collectively referred to as the “Bon Operating Companies” below. Reorganization A reorganization of our legal structure (“Reorganization”) was completed on May 28, 2020. The reorganization involved the incorporation of Bon Natural Life, Tea Essence and Xi’an CMIT, and entering into certain contractual arrangements between Xi’an CMIT, the shareholders of Bon Operating Companies and the Bon Operating Companies. Consequently, the Company became the ultimate holding company of Tea Essence, Xi’an CMIT and Bon Operating Companies. BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – ORGANIZATION AND BUSINESS DESCRIPTION (continued) On May 28, 2020, Xi’an CMIT entered into a series of contractual arrangements with the shareholders of the Bon Operating Companies. These agreements include, Exclusive Service Agreement, Share Pledge Agreement, Proxy Agreement, Exclusive Option Agreement, Powers of Attorney, Spousal Consent Letter, and Loan Agreement intended to guarantee the exercise of the Exclusive Option Agreements and Spouse Consents (collectively the “VIE Agreements”). Pursuant to the VIE Agreements, Xi’an CMIT has the exclusive right to provide to the Bon Operating Companies consulting services related to business operations including technical and management consulting services. The VIE Agreements are designed to provide Xi’an CMIT with the power, rights, and obligations equivalent in all material respects to those it would possess as the sole equity holder of each of the Bon Operating Companies, including absolute control rights and the rights to the assets, property, and revenue of each of the Bon Operating Companies. As a result of our direct ownership in Xi’an CMIT and the VIE Agreements, we believe that the Bon Operating Companies should be treated as Variable Interest Entities (“VIEs”) under the Statement of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810 Consolidation and we are regarded as the primary beneficiary of our VIEs. We treat our VIEs as our consolidated entities under U.S. GAAP. The Company, together with its wholly owned subsidiaries and its VIEs, is effectively controlled by the same shareholders before and after the Reorganization and therefore the Reorganization is considered as a recapitalization of entities under common control. The consolidation of the Company, its subsidiaries, and its VIEs 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. Upon the completion of the Reorganization, the Company has subsidiaries in countries and jurisdictions in the PRC and Hong Kong. On September 8, 2021, Xi’an Youpincui Biotechnology Co., Ltd (“Xi’an Youpincui”) was formed as a Wholly Foreign-Owned Enterprise (“WFOE”) in the PRC. Tea Essence owns 100% On June 28, 2021, the Company closed its initial public offering (“IPO”) of 2,200,000 0.0001 5.00 330,000 0.0001 5.00 totaled 12.65 11.3 Details of the subsidiaries of the Company as of September 30, 2021 were set out below: SCHEDULE OF SUBSIDIARIES COMPANY Name of Entity Date of Place of % of Principal Activities Bon Natural Life December 11, 2019 Cayman Islands Parent, 100 Investment holding Tea Essence January 9, 2020 Hong Kong 100 Investment holding Xi’an CMIT April 9, 2020 Xi.an City, PRC 100 WOFE, Investment holding Xi’an Youpincui September 8, 2021 Xi.an City, PRC 100 WOFE, Investment holding VIE of the Company: Xi’an App- Chem Bio (Tech) April 23, 2006 Xi’an City, PRC VIE General administration and sales of the Company’s products to customers Bon Operating Companies (owned by VIE) App-Chem Health April 17, 2006 Tongchuan City, PRC 100 Registered owner of land with an area of 12,904 square meters, no other business activities App-Chem Ag-tech April 19, 2013 Dali County, PRC 100 Product manufacturing Xi’an YH September 15, 2009 Xi.an City, PRC 100 Research and development of product App-Chem Guangzhou April 27, 2018 Guangzhou City, PRC 100 Raw material purchase Tongchuan DT May 22, 2017 Tongchuan City, PRC 100 Product manufacturing Gansu BMK March 11, 2020 Jinquan City, PRC 100 Raw material purchase Xi’an DT April 24, 2015 Xi’an City, PRC 75 Research and development of product Tianjin YHX September 16, 2019 Tianjin City, PRC 51 Raw material purchase BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – ORGANIZATION AND BUSINESS DESCRIPTION (continued) The VIE contractual arrangements As of and for the years ended September 30, 2021, 2020 and 2019, the Company’s main operating entities, Xi’an App-Chem, and Shaanxi App-Chem Health (or the “Bon Operating Companies” as referred above), are controlled through contractual arrangements in lieu of direct equity ownership by the Company. A VIE is an entity which has a total equity investment that is insufficient to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected residual returns of the entity or obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary of, and must consolidate, the VIE. Xi’an CMIT is deemed to have a controlling financial interest in and be the primary beneficiary of the Bon Operating Companies because it has both of the following characteristics: ● The power to direct activities of the Bon Operating Companies that most significantly impact such entities’ economic performance, and ● The obligation to absorb losses of, and the right to receive benefits from, the Bon Operating Companies that could potentially be significant to such entities. Pursuant to these contractual arrangements, the Bon Operating Companies shall pay service fees equal to all of their net profit after tax payments to Xi’an CMIT. At the same time, Xi’an CMIT is obligated to absorb all of their losses. Such contractual arrangements are designed so that the operations of the Bon Operating Companies are solely for the benefit of Xi’an CMTI and ultimately, the Company. Risks associated with the VIE structure The Company believes that the contractual arrangements with its VIE and the shareholders of its VIE are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION (continued) ● revoke the business and operating licenses of the Company’s PRC subsidiaries and VIEs; ● discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiaries and VIE; ● limit the Company’s business expansion in China by way of entering into contractual arrangements; ● impose fines or other requirements with which the Company’s PRC subsidiaries and VIEs may not be able to comply; ● require the Company or the Company’s PRC subsidiaries and VIEs to restructure the relevant ownership structure or operations; or ● restrict or prohibit the Company’s use of the proceeds from public offering to finance the Company’s business and operations in China. The Company’s ability to conduct its financial service businesses may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIE and VIE’s subsidiaries in its consolidated financial statements as it may lose the ability to exert effective control over the VIE and their shareholders and it may lose the ability to receive economic benefits from the VIE. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiaries and its VIEs. The Company, Tea Essence and Xi’an CMIT are essentially holding companies and do not have active operations as of September 30, 2021 and 2020. As a result, total assets and liabilities presented on the Consolidated Balance Sheets as of September 30, 2021 and 2020, and revenue, expenses, and net income presented on the Consolidated Statement of Comprehensive Income as well as the cash flows from operating, investing and financing activities presented on the Consolidated Statement of Cash Flows for the years ended September 30, 2021, 2020 and 2019 are substantially the financial position, operation and cash flow of the Company’s VIE and VIE’s subsidiaries. The Company has not provided any financial support to the VIE for the years ended September 30, 2021, 2020 and 2019. The following financial statement amounts and balances of the VIE were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances: SCHEDULE OF FINANCIAL STATEMENT AMOUNTS AND BALANCES OF VIE September 30, 2021 September 30, 2020 Current assets $ 14,860,224 $ 10,840,214 Non-current assets 20,735,714 14,362,015 Total assets $ 35,595,938 $ 25,202,229 Current liabilities $ 7,283,758 $ 11,696,969 Non-current liabilities 2,349,188 2,482,251 Total liabilities $ 9,632,946 $ 14,179,220 For the years ended September 30, 2021 2020 2019 Revenue $ 25,494,564 $ 18,219,959 $ 16,396,018 Net income $ 4,902,246 $ 3,098,317 $ 2,562,636 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION (continued) For the years ended September 30, 2021 2020 2019 Net cash provided by operating activities $ 4,437,583 $ 2,643,076 $ 7,104,822 Net cash used in investing activities (6,443,745 ) (3,003,043 ) (8,429,958 ) Net cash provided by financing activities $ 3,493,925 $ 112,492 $ 804,680 Terminating the VIE agreements for corporate restructuring Due to PRC legal restrictions on foreign ownership in companies that engage in online sales China, the Company originally carried out its business through Xi’an App-Chem, a domestic PRC company holding a value-added telecommunications license, through a variable interest entity structure, because foreign investment in the value-added telecommunication services industry in China is extensively regulated and subject to numerous restrictions. However, the Company’s online sales have historically generated minimal revenues. On September 28, 2021, the Company’s Board of Directors approved a restructuring of the Company’s corporate structure to terminate the original VIE contractual agreements, to convert Xi’an App-Chem from a PRC domestic company into a Sino-foreign joint venture, and to transfer 100 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The accompanying consolidated financial statements include the financial statements of the Company, its wholly owned subsidiaries, and entities it controlled through VIE agreements. All inter-company balances and transactions are eliminated upon consolidation. Non-controlling interests Non-controlling interests represent minority shareholders’ 25 49 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Uses of estimates In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Risks and Uncertainties The main operation of the Company is 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. The development and commercialization of natural and healthy extracts and compounds products is highly competitive, and the industry currently is characterized by rapidly changing technologies, significant competition and a strong emphasis on intellectual property. The Company may face competition with respect to its current and future pharmaceutical product candidates from major pharmaceutical companies in China. The Company’s operations may be further affected by the ongoing outbreak of COVID-19 pandemic. Although the Company resumed its operations since March 2, 2020 and the COVID-19 impact on the Company’s operating results and financial performance for the years ended September 30, 2021 and 2020 seems to be temporary, a resurgence could negatively affect the execution of customer contracts, the collection of customer payments, or disruption of the Company’s supply chain. The continued uncertainties associated with COVID-19 may cause the Company’s revenue and cash flows to underperform in the next 12 months. The extent of the future impact of COVID-19 is still highly uncertain and cannot be predicted as of the financial statement reporting date. Cash and cash equivalents Cash includes currency on hand and deposits held by banks that can be added or withdrawn without limitation. The Company maintains most of its bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. Accounts receivable, net The Company determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trend. 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 estimate of specific losses on individual exposures, as well as a provision on historical trends of collections. Actual amounts received may differ from management’s estimate of credit worthiness and the economic environment. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the collection is not probable, $ 99,528 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) year ended September 30, 2021. Allowance for uncollectable balances amounted to $ 14,691 93,032 Advances to Suppliers, net Advances to suppliers consist of balances paid to suppliers for inventory raw materials and construction materials associated with the Company’s construction-in-progress projects that have not been provided or received. Advances to suppliers are reviewed periodically to determine whether their carrying value has become impaired. The Company considers the assets to be impaired if the collectability of the advance becomes doubtful. The Company uses the aging method to estimate the allowance for unrealizable balances. In addition, at each reporting date, the Company generally determines the adequacy of allowance for doubtful accounts by evaluating all available information, and then records specific allowances for those advances based on the specific facts and circumstances. As of September 30, 2021 and 2020, allowance for doubtful account amounted to Nil and $ 13,141 , respectively. Inventories, net Inventories are stated at net realizable value using weighted average method. Costs include the cost of raw materials, freight, direct labor and related production overhead. Any excess of the cost over the net realizable value of each item of inventories is recognized as a provision for diminution in the value of inventories. Net realizable value is the estimated selling price in the normal course of business less any costs to complete and sell products. The Company evaluates inventories on a quarterly basis for its net realizable value adjustments, and reduces the carrying value of those inventories that are obsolete or in excess of the forecasted usage to their estimated net realizable value based on various factors including aging, expiration dates, as applicable, taking into consideration historical and expected future product sales. The Company recorded inventory reserve of $ 147,960 439,486 Deferred initial public offering (“IPO”) costs The Company complies with the requirement of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “Expenses of Offering”. Deferred offering costs consist of underwriting, legal, and other expenses incurred through the balance sheet date that are directly related to the intended IPO. Deferred offering costs will be charged to shareholders’ equity upon the completion of the IPO. Deferred initial public offering costs amounted to Nil and $ 510,079 as of September 30, 2021 and 2020, respectively. Short-term investments The Company’s short-term investments consist of wealth management financial products purchased from PRC banks, which can be redeemed at any time. The banks invest the Company’s fund in certain financial instruments including money market funds, bonds or mutual funds, with floating interest rates. The carrying values of the Company’s short-term investments approximate fair value because of their short-term maturities. The interest earned is recognized in the consolidated statements of . operations and comprehensive income (loss) over the contractual term of these investments. As of September 30, 2021 and 2020, short-term investments consisted of the following: SCHEDULE OF SHORT-TERM INVESTMENT September 30, 2021 September 30, 2020 Beginning balance $ - $ - Add: purchase wealth management financial products 2,159,920 - Less: proceeds received upon maturity of short-term investments (470,082 ) - Foreign currency translation adjustments 13,476 - Ending balance of short-term investments $ 1,703,314 $ - BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Investment income generated from short-term investments amounted to $ 565 Nil Nil Fair value of financial instruments 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 (unadjusted) 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 market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. ● Level 3 — inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s cash, short-term investment, accounts receivable, inventories, advance to suppliers, prepaid expenses and other current assets, accounts payable, short-term bank loans, accrued expenses and other current liabilities, taxes payable and due to related parties, approximate the fair value of the respective assets and liabilities as of September 30, 2021 and 2020 based upon the short-term nature of the assets and liabilities. The Company believes that the carrying amount of long-term loans approximates fair value at September 30, 2021 and 2020 based on the terms of the borrowings and current market rates as the rates of the borrowings are reflective of the current market rates. Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment is provided using the straight-line method over their expected useful lives, as follows: SCHEDULE OF USEFUL LIVES OF PROPERTY, PLANT AND EQUIPMENT Useful life Buildings 20 Machinery and equipment 5 10 Automobiles 8 Office and electric equipment 3 5 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. Construction-in-Progress (“CIP” Construction-in-progress represents property and buildings under construction and consists of construction expenditures, equipment procurement, and other direct costs attributable to the construction. Construction-in-progress is not depreciated. Upon completion and ready for intended use, construction-in-progress is reclassified to the appropriate category within property, plant and equipment. BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Intangible assets, net The Company’s intangible assets primarily include two land use rights. A land use right in the PRC represents an exclusive right to occupy, use and develop a piece of land during the contractual term of the land use right. The cost of a land use right is usually paid in one lump sum at the date the right is granted. The prepayment usually covers the entire period of the land use right. The lump sum advance payment is capitalized and recorded as land use right and then charged to expense on a straight-line basis over the period of the right, which is normally 50 The Company acquired the first land use right of 4.1 0.2 8.2 0.3 Impairment of long-lived Assets Long-lived assets, such as property, plant and equipment, land use rights and long-term investment, are reviewed for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Recoverability of a long-lived asset or asset group to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying value of an asset or asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount that the carrying value exceeds the estimated fair value of the asset or asset group. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Assets to be disposed are reported at the lower of carrying amount or fair value less costs to sell, and are no longer depreciated. No impairment of long-lived assets was recognized as of September 30, 2021 and 2020. Leases On October 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (as amended by ASU 2018-01, 2018-10, 2018-11, 2018-20, and 2019-01, collectively “ASC 842”) using the modified retrospective basis and did not restate comparative periods as permitted under ASU 2018-11. ASC 842 requires that lessees recognize ROU assets and lease liabilities calculated based on the present value of lease payments for all lease agreements with terms that are greater than twelve months. ASC 842 distinguishes leases as either a finance lease or an operating lease that affects how the leases are measured and presented in the statement of operations and statement of cash flows. For operating leases, the Company calculated ROU assets and lease liabilities based on the present value of the remaining lease payments as of the date of adoption. There were no changes in the Company’s capital lease portfolio, which are now titled “finance leases” under ASC 842. Upon the adoption of the new guidance on October 1, 2020, the Company recognized operating lease right of use assets and operating lease liabilities of approximately $ 0.2 On December 25, 2020, the Company’s VIE, Xi’an App-Chem (the “Lessee”) entered into a sale and leaseback agreement with Taizhongyin Finance Lease (Suzhou) Ltd. (“the Lessor”) and sold part of its plant machines with carrying value of RMB 2 0.3 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Foreign Currency Translation The functional currency for Bon Natural is the U.S Dollar (“US$”). Tea Essence uses Hong Kong dollar as its functional currency. However, Bon Natural, and Tea Essence currently only serve as the holding companies and did not have active operations as of the date of this report. The Company operates its business through its subsidiaries and VIEs in the PRC as of September 30, 2021. The functional currency of the Company’s subsidiaries and VIEs is the Chinese Yuan (“RMB”). The Company’s consolidated financial statements have been translated into US$. Assets and liabilities accounts are translated using the exchange rate at each reporting period end date. Equity accounts are translated at historical rates. Income and expense accounts are translated at the average rate of exchange during the reporting period. The resulting translation adjustments are reported under other comprehensive income. Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the results of operations. The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in translation. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: SCHEDULE OF CURRENCY EXCHANGE RATES September 30, 2021 September 30, 2020 September 30, 2019 Period-end spot rate US$ 1 6.4580 US$ 1 6.8033 US$ 1 7.1383 Average rate US$ 1 6.5095 US$ 1 7.0066 US$ 1 6.8767 Revenue recognition To determine revenue recognition for contracts with customers, the Company performs the following five steps : (i) identify the contract(s) with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not In accordance to ASC 606, the Company recognizes revenue when it transfers its goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. The Company accounts for the revenue generated from sales of its products to its customers, in which the Company is acting as a principal in these transactions, is subject to inventory risk, has latitude in establishing prices, and is responsible for fulfilling the promise to provide customers the specified goods. All of the Company’s contracts have single performance obligation as the promise is to transfer the individual goods to customers, and there is no other separately identifiable promises in the contracts. The Company’s revenue streams are recognized at a point in time when title and risk of loss passes and the customer accepts the goods, which generally occurs at delivery. The Company’s products are sold with no right of return and the Company does not provide other credits or sales incentive to customers. The Company’s sales are net of value added tax (“VAT”) and business tax and surcharges collected on behalf of tax authorities in respect of product sales. BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Contract Assets and Liabilities Payment terms are established on the Company’s pre-established credit requirements based upon an evaluation of customers’ credit. The Company did not have contract assets as of September 30, 2021 and 2020. The Company’s contract liability primarily relates to unsatisfied performance obligations when payment has been received from customers before the Company’s products are delivered, and are recorded as deferred revenue on the consolidated balance sheets. Costs of fulfilling customers’ purchase orders, such as shipping, handling and delivery, which occur prior to the transfer of control, are recognized in selling, general and administrative expense when incurred. Deferred revenue amounted to $ 1,096,101 385,978 403,399 213,734 1,441,595 Disaggregation of Revenues The Company disaggregates its revenue from contracts by product types, as the Company believes it best depicts how the nature, amount, timing and uncertainty of the revenue and cash flows are affected by economic factors. The Company’s disaggregation of revenues for the years ended September 30, 2021, 2020 and 2019 are disclosed in Note 19 of the consolidation financial statements. Research and development expenses The Company expenses all internal research and development costs as incurred, which primarily comprise employee costs, internal and external costs related to execution of studies, including manufacturing costs, facility costs of the research center, and amortization and depreciation to intangible assets and property, plant and equipment used in the research and development activities. For the years ended September 30, 2021 and 2020 and 2019, research and development expense were approximately $ 249,050 205,359 522,867 Selling, General and Administrative Expenses Selling expenses represents primarily costs of payroll, benefits, commissions for sales representatives and advertising expenses. General and administrative expenses represent primarily payroll and benefits costs for administrative employees, rent and operating costs of office premises, depreciation and amortization of office facilities, professional fees and other administrative expenses. Advertising expense Advertising expenses primarily relate to promotion of the Company’s brand name and products through outdoor billboards and social media such as Weibo and WeChat. Advertising expenses are included in selling expenses in the consolidated statements of income and comprehensive income. Advertising expenses amounted to $ 25,397 14,264 51,257 Government subsidies Government subsidies primarily relate to local government’s cash award to High and New Technology Enterprises (“HNTEs”) to encourage entrepreneurship and stimulate local economy. Such awards are granted on a case-by-case basis by local government. The Company’s VIE, Xi’an App-chem was approved as a HNTE and received government subsidy in the form of export sales refund and cash awards based on annual financial performance. BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The Company recognizes government subsidies as other operating income when they are received because they are not subject to any past or future conditions, there are no performance conditions or conditions of use, and they are not subject to future refunds. Government subsidies received and recognized as other operating income totaled $ 449,972 362,187 140,295 Income taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. An uncertain tax position is recognized only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. As of September 30, 2021, the Company had income tax payable of approximately $ 1.7 1.7 The Company’s subsidiaries and VIEs in China are subject to the income tax laws of the PRC. No significant income was generated outside the PRC for the years ended September 30, 2021,2020 and 2019. As of September 30, 2021 and 2020, all of the Company’s tax returns of its PRC subsidiaries, its VIE and VIE’s subsidiaries remain open for statutory examination by PRC tax authorities. Value added tax (“VAT” Sales revenue represents the invoiced value of goods, net of VAT. The VAT is based on gross sales price and VAT rates range up to 17% (starting from May 1, 2018, VAT rate was lowered to 16%, and starting from April 1, 2019, VAT rate was further lowered to 13%), For export sales, VAT is not imposed on gross sales price, but the VAT related to purchasing raw materials is refunded after the export is completed. BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) As of September 30, 2021, the Company had large VAT tax payable of approximately $ 3.3 3.3 Employee Defined Contribution Plan The Company’s subsidiaries in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund are provided to eligible full-time employees. The relevant labor regulations require the Company’s subsidiaries in the PRC to pay the local labor and social welfare authorities monthly contributions based on the applicable benchmarks and rates stipulated by the local government. The contributions to the plan are expensed as incurred. Employee social security and welfare benefits included as expenses in the accompanying consolidated statements of income and comprehensive income amounted to $ 54,189 30,724 68,128 Share Based Compensation On June 23, 2020, the Company entered into consulting service agreements with three third-party consultants (collectively the “Consultants”), pursuant to which, the Consultants will provide public listing related consulting services to the Company in connection with the Company’s IPO. The Company issued 633,333 633,333 The Company applied ASC 718 and related interpretations in accounting for measuring the cost of share-based compensation over the period during which the consultants are required to provide services in exchange for the issued shares. For the years ended September 30, 2021, 2020 and 2019, $ 422,221 211,112 Nil Pursuant to the Director Service Agreements with the Company’s independent directors and following the completion of the Company’s IPO, on June 23, 2021, the Company granted stock options to three independent directors to purchase an aggregate of 36,000 0.0001 0.01 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Earnings per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the year ended September 30, 2021, 36,000 101,200 The following table sets forth the computation of basic and diluted earnings per share for the years ended September 30, 2021, 2020 and 2019: SCHEDULE OF EARNINGS PER SHARE For the Years ended September 30, 2021 2020 2019 Numerator: Net income attributable to ordinary shareholders $ 4,590,803 $ 3,026,673 $ 2,573,803 Denominator: Weighted-average number of ordinary shares outstanding – basic 6,615,833 5,210,649 5,166,667 Outstanding options 35,967 - - Outstanding warrants 54,435 - - Potentially dilutive shares from outstanding options and warrants 90,402 - - Weighted-average number of ordinary shares outstanding – diluted 6,706,235 5,210,649 5,166,667 Earnings per share – basic $ 0.69 $ 0.58 $ 0.50 Earnings per share – diluted $ 0.68 $ 0.58 $ 0.50 Comprehensive income Comprehensive income consists of two components, net income and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to US$ is reported in other comprehensive income (loss) in the consolidated statements of income and comprehensive income. Statement of Cash Flows In accordance with ASC 230, “Statement of Cash Flows”, cash flows from the Company’s operations are formulated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. Segment Reporting The Company uses the management approach in determining reportable operating segments. The management approach considers the internal reporting used by the Company’s chief operating decision maker for making operating decisions about the allocation of resources of the segment and the assessment of its performance in determining the Company’s reportable operating segments. Management has determined that the Company has one operating segment (See Note 17). BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Recent Accounting Pronouncements Recent Adopted Accounting Pronouncements In August 2018, the FASB Accounting Standards Board issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019, with early adoption permitted for any removed or modified disclosures. The removed and modified disclosures were adopted on a retrospective basis and the new disclosures were adopted on a prospective basis. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. On October 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases, using the modified retrospective basis and did not restate comparative periods as permitted under ASU 2018-11. ASC 842 requires that lessees recognize ROU assets and lease liabilities calculated based on the present value of lease payments for all lease agreements with terms that are greater than twelve months. ASC 842 distinguishes leases as either a finance lease or an operating lease that affects how the leases are measured and presented in the statement of operations and statement of cash flows. Upon the adoption of the new guidance on October 1, 2020, the Company recognized operating lease right of use assets and operating lease liabilities of approximately $ 0.2 Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASU 2016-13 was subsequently amended by ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10 and ASU 2020-02. For public entities, ASU 2016-13 and its amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. For all other entities, this guidance and its amendments will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. As an emerging growth company, the Company plans to adopt this guidance effective October 1, 2023. The Company does not expect the adoption of the new guidance to have a significant impact on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes. ASU 2019-12 is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years, with early adoption permitted. The Company does not expect the adoption of the new guidance to have a significant impact on its consolidated financial statements. In October 2020, the FASB issued ASU 2020-10, “Codification Improvements to Subtopic 205-10, presentation of financial statements”. The amendments in this Update improve the codification by ensuring that all guidance that requires or provides an option for an entity to provide information in the notes to financial statements is codified in the disclosure section of the codification. That reduce the likelihood that the disclosure r |
LIQUIDITY
LIQUIDITY | 12 Months Ended |
Sep. 30, 2021 | |
Liquidity | |
LIQUIDITY | NOTE 3— LIQUIDITY As reflected in the Company’s consolidated financial statements, the Company is currently constructing two new manufacturing plants. As of September 30, 2021, the Company had future minimum capital expenditure commitment on its construction-in-progress (“CIP”) project of approximately $ 2.3 5.1 In assessing its liquidity, management monitors and analyzes the Company’s cash on-hand, its ability to generate sufficient revenue sources in the future, and its operating and capital expenditure commitments. In June 2021, the Company closed its initial public offering and received net proceeds of approximately $ 11.3 As of September 30, 2021, the Company had cash on hand of $ 1.9 1.7 6.2 2.7 41,381 0.4 2.2 8.7 56 2.3 one year 2.0 one year 2.3 one year 2.0 three years 2.8 18 5.9 38 Based on the current operating plan, management believes that the above-mentioned measures, including cash on hand of $ 1.9 1.7 5.9 |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Sep. 30, 2021 | |
Credit Loss [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 4 — ACCOUNTS RECEIVABLE, NET Accounts receivable, net, consists of the following: SCHEDULE OF ACCOUNTS RECEIVABLE, NET September 30, 2021 September 30, 2020 Accounts receivable $ 6,167,498 $ 5,864,040 Less: allowance for doubtful accounts (14,691 ) (93,032 ) Accounts receivable, net $ 6,152,807 $ 5,771,008 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 4 — ACCOUNTS RECEIVABLE, NET (continued) The Company’s accounts receivable primarily includes balance due from customers when the Company’s products are sold and delivered to customers. Approximately $ 6.15 99.9% The following table summarizes the Company’s accounts receivable and subsequent collection by aging bucket: SCHEDULE OF ACCOUNTS RECEIVABLE AND SUBSEQUENT COLLECTION BY AGING BUCKET Accounts Receivable by aging bucket Balance as of September 30, 2021 Subsequent collection % of subsequent collection Less than 3 months $ 5,030,184 $ 5,028,868 100.0 % From 4 to 6 months 1,119,077 1,119,077 100.0 % From 7 to 9 months 1,487 1,487 100.0 % From 10 to 12 months 1,036 805 77.7 % Over 1 year 15,714 1,190 7.6 % Total gross accounts receivable 6,167,498 6,151,427 99.7 % Allowance for doubtful accounts (14,691 ) - Accounts Receivable, net $ 6,152,807 $ 6,151,427 99.9 % Allowance for doubtful accounts movement is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS September 30, 2021 September 30, 2020 Beginning balance $ 93,032 $ 73,386 Additions 16,891 15,569 Write-off uncollectible balance (99,548 ) - Foreign currency translation adjustments 4,316 4,077 Ending balance $ 14,691 $ 93,032 |
INVENTORIES, NET
INVENTORIES, NET | 12 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | NOTE 5 – INVENTORIES, NET Inventories, net, consist of the following: SCHEDULE OF INVENTORIES September 30, 2021 September 30, 2020 Raw materials $ 555,321 $ 246,383 Finished goods 1,189,131 1,209,545 Inventory valuation allowance (147,960 ) (439,486 ) Total inventory, net $ 1,596,492 $ 1,016,442 |
ADVANCES TO SUPPLIERS, NET
ADVANCES TO SUPPLIERS, NET | 12 Months Ended |
Sep. 30, 2021 | |
Advances To Suppliers Net | |
ADVANCES TO SUPPLIERS, NET | NOTE 6 – ADVANCES TO SUPPLIERS, NET Advances to suppliers, net, consist of the following: SCHEDULE OF ADVANCES TO SUPPLIERS September 30, 2021 September 30, 2020 Advances to suppliers for inventory raw materials $ 4,094,312 $ 3,504,486 Less: allowance for doubtful accounts - (13,141 ) Advances to suppliers, net $ 4,094,312 $ 3,491,145 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 6 –ADVANCES TO SUPPLIERS, NET (continued) September 30, 2020 advance to supplier balance has been fully realized by April 2021. For the balance as of September 30, 2021, approximately $ 4.0 98.4% |
ACQUISITION DEPOSIT
ACQUISITION DEPOSIT | 12 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITION DEPOSIT | NOTE 7— ACQUISITION DEPOSIT On July 6, 2021, the Company entered into a consulting agreement with the consulting firm Global Capital LP (“the consulting firm”), a New York based consulting firm, pursuant to which, the consulting firm will help the Company to (i) identify appropriate business partner candidates in New York or California in order to jointly establish a research and development center in the United States for future new product development; (ii) find opportunities to establish business relationship with U.S based companies with OEM demand and utilize the Company’s manufacturing strength and capability to manufacture healthcare ingredient products for U.S companies under the OEM arrangement and (iii) help the Company to purchase or lease appropriate commercial facilities in the U.S., etc. The consulting firm will be compensated with $ 30,000 in exchange for performing these designated consulting services. Given the fact that the Company lacks of credit history in the U.S, the Company is required to make a deposit of $ 1.5 million to the consulting firm. As of September 30, 2021, the Company has made deposit of $ 1 million to the consulting firm and recorded it as acquisition deposit on the balance sheets. Due to recent COVID-19 resurgence in Xi’an City and government mandatory quarantine and city lockdown, on January 20, 2022, the Company and the consulting firm signed a supplemental agreement to lower down the required deposit from original $ 1.5 million to $ 1 million. As a result, the Company does not have further obligation to make additional deposit to the consulting firm. The consulting firm expects to deliver the findings to the Company with a list of business partner candidates and potential acquisition targets around April 2022 and then the Company will determine whether it will proceed to the next step or not. The Company may, at its discretion, terminate the consulting agreement and request for full refund of the deposit anytime if the acquisition target or commercial facilities introduced by the consulting firm does not meet the expectation and the acquisition deposit of $ 1 million shall be refunded to the Company within three business days with written notice of termination. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 8— PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net, consists of the following: SCHEDULE OF PROPERTY, PLANT, AND EQUIPMENT September 30, 2021 September 30, 2020 Buildings $ 1,065,736 $ 601,408 Machinery, equipment and furniture 2,037,311 1,920,530 Motor Vehicles 222,679 175,117 Construction-in-progress (“CIP”) (1) 17,555,078 12,832,806 Subtotal 20,880,804 15,529,861 Less: accumulated depreciation (1,652,162 ) (1,357,898 ) Property, plant and equipment, net $ 19,228,642 $ 14,171,963 Depreciation expense was $ 219,906 , $ 226,527 and $ 222,486 for the years ended September 30, 2021, 2020 and 2019, respectively. (1) Construction-in-progress (“CIP”) represents direct costs of construction incurred for the Company’s manufacturing facilities. On August 16, 2017, the Company’s VIE, Xi’an App-Chem Bio(Tech) Co.,Ltd. started to construct a new manufacturing plant in Tongchuan City (“Tongchuan Project”), Shaanxi Province, with total budget of RMB 95 14.7 114 17.7 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 8— PROPERTY, PLANT AND EQUIPMENT, NET (continued) On May 10, 2021, a subsidiary of the Company’s VIE, Gansu Baimeikang Bioengineering Co., Ltd. obtained a land use right and started to construct a new manufacturing plant in Yumen City (“Yumen Project”), Gansu Province, with total budget of RMB 40 6.2 20 3.1 As of September 30, 2021, the Company has spent approximately RMB 113.4 million (approximately $ 17.6 million) on the CIP projects located in Tongchuan and Yumen, and future minimum capital expenditures on these two CIP projects are estimated to be approximately $ 5.1 million, among which approximately $ 2.3 million is required for the next 12 months. The Company currently plans to support its ongoing CIP project construction through cash flows from operations, net proceeds received from the IPO and bank borrowings. As of September 30, 2021, future minimum capital expenditures on the Company’s two CIP projects are estimated as follows: SCHEDULE OF FUTURE MINIMUM CAPITAL EXPENDITURES ON THE CONSTRUCTION-IN-PROGRESS Years ending September 30, Tongchuan CIP Project Yumen CIP Project Total 2022 $ 774,234 $ 1,548,467 $ 2,322,701 2023 493,563 1,300,712 1,794,275 2024 - - - 2025 - - - 2026 706,101 247,755 953,856 Total $ 1,973,898 $ 3,096,934 $ 5,070,832 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 9 – INTANGIBLE ASSETS, NET Intangible assets, net mainly consist of the following: SCHEDULE OF INTANGIBLE ASSETS September 30, 2021 September 30, 2020 Land use rights $ 474,731 $ 193,168 Less: accumulated amortization (63,675 ) (52,175 ) Land use rights, net $ 411,056 $ 140,993 Amortization expense was $ 8,641 4,070 4,147 SCHEDULE OF AMORTIZATION EXPENSES Years ending September 30, Amortization expense 2022 $ 9,833 2023 9,833 2024 9,833 2025 9,833 2026 9,833 Thereafter 361,891 Total $ 411,056 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
DEBT
DEBT | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 10— DEBT The Company borrowed from PRC banks, other financial institutions and third-parties as working capital funds. As of September 30, 2021 and 2020, the Company’s debt consisted of the following: (a) Short-term loans: SCHEDULE OF SHORT-TERM LOANS September 30, 2021 September 30, 2020 Xi’an Guosen Micro-Credit Co., Ltd. (“Guosen”) (1) $ - $ 279,276 Xi ‘an Xinchang Micro-lending Co. Ltd. (“Xinchang”) (2) 12,904 110,241 China Construction Bank (“CCB’) (3) 28,477 17,640 Bohai Bank (4) - 440,962 Huaxia Bank (5) - 440,962 Total short-term loans $ 41,381 $ 1,289,081 (1) On July 22, 2020, the Company’s VIE, Xi’an App-Chem, entered into a loan agreement with Xi’an Guosen Micro-Credit Co., Ltd (“Guosen”), to borrow RMB 2.0 279,276 as working capital for six months, with maturity date on January 21, 2021 17 On March 3, 2021, Xi’an App-Chem, entered into another loan agreement with Guosen to borrow RMB 2.0 309,693 as working capital for six months, with maturity date on September 3, 2021 15.4 (2) On June 1, 2020, Xi’an App-Chem, entered into a loan agreement with Xi’an Xinchang Micro-lending Co. Ltd. (“Xinchang”), to borrow RMB 750,002 110,241 as working capital for one year, with maturity date on May 31, 2021 18.0 On November 4, 2020, Xi’an App-Chem, entered into another loan agreement with Xinchang to borrow RMB 1.0 154,847 as working capital for one year, with maturity date on November 3, 2021 15.12 916,665 141,943 83,335 12,904 (3) On January 19, 2020, Xi’an App-Chem’s subsidiary Tongchuan DT, entered into a loan agreement with China Construction Bank (“CCB’) to borrow RMB 100,000 14,699 as working capital for one year, with maturity date on January 19, 2021 5.0 On May 15, 2020, Tongchuan DT entered into another loan agreement with CCB to borrow RMB 20,000 2,941 as working capital for one year, with maturity date on May 15, 2021 4.1 On January 12, 2021, Tongchuan DT entered into another loan agreement with CCB to borrow RMB 183,903 (equivalent to US$ 28,477 ) as working capital for one year, with maturity date on January 12, 2022 and interest rate of 3.85 % per annum. The loan was subsequently fully repaid upon maturity. (4) On May 22, 2020, Xi’an App-Chem, obtained a line of credit approval from Bohai Bank for a maximum of RMB 13 2.0 one year 3 0.4 as working capital for one year, with interest rate of 5.4 July 21, 2021 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 10— DEBT (continued) The Company’s controlling shareholder, Mr. Yongwei Hu and his wife Ms. Jing Liu, and a third-party Shannxi Jinma Financial Guarantee Co., Ltd. provided joint guarantee to this loan. In July 2021, the Company repaid the loan balance upon maturity and at the same time renewed the line of credit of RMB 13 2.0 (5) On April 3, 2020, Xi’an App-Chem, obtained a line of credit approval from Huaxia Bank for a maximum of RMB 15 2.3 3 0.4 one year 9 12 1.8 three years 6.6 3 0.4 as working capital for one year, with interest rate of 9.0 (b) Long-term loans: SCHEDULE OF LONG -TERM LOANS September 30, 2021 September 30, 2020 Xi’an Investment Holding Co., Ltd. (6) $ - $ 2,204,812 Xi’an High-Tech Emerging Industry Investment Fund Partnership (7) 1,238,774 1,175,900 Webank Co., Ltd. (8) 156,377 34,910 Huaxia Bank (9) 743,264 293,975 Qishang Bank (10) 387,117 - Webank Co., Ltd. (11) 96,005 - Total 2,621,537 3,709,597 Less: current portion of long-term loans (448,005 ) (1,227,346 ) Total long-term loans $ 2,173,532 $ 2,482,251 (6) On February 14, 2017 and on December 13, 2017, the Company’s VIE, Xi’an App-Chem entered into loan agreements with third-party Xi’an Investment Holdings Co., Ltd. (the “Lender”), to borrow an aggregate of RMB 15.0 2.3 as working capital for three years 2 4 15.0 5.0 0.8 February 13, 2020 10.0 1.5 10 December 12, 2022 (7) On June 26, 2017, the Company’s VIE, Xi’an App-Chem, entered into a loan agreement with third-party Xi’an High-tech Emerging Industries Investment Fund Partnership (the “Lender”) to borrow RMB 8.0 1.2 as working capital for three years, with maturity date on June 25, 2020 3.8 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 10— DEBT (continued) The loan matured on June 26, 2020 and not repaid on time due to COVID-19 impact. The Company has negotiated with the Lender to extend the loan repayment date to December 25, 2022 in accordance with a COVID-19 relief notice issued by local government, with adjusted interest rate of 4.75% per annum during the period from June 26, 2020 to June 25, 2021, and 5.225% per annum during the period from June 26, 2021 to December 25, 2022. (8) On January 19, 2020, the Company’s VIE, Xi’an App-Chem, entered into a loan agreement with Shenzhen Qianhai WeBank Co., Ltd, to borrow RMB 87,500 13,549 as working capital for 27 months, with maturity date on April 12, 2022 18.0 922,381 142,827 October 12, 2022 14.4 Loans from Shenzhen Qianhai WeBank Co., Ltd, in the amount of RMB 938,929 145,390 (9) As disclosed in (5) above, Xi’an App-Chem, obtained a line of credit approval from Huaxia Bank for a maximum of RMB 15 2.3 3 0.4 one year 9 12 1.8 three years 6.6 2.0 0.3 as working capital for three years, with the interest rate of 6.6 April 16, 2023 3 0.5 two years 8.5 May 14, 2023 5 0.2 30,969 0.6 92,908 June 21, 2022 4.2 0.65 92,908 (10) On December 10, 2020, the Company’s VIE, Xi’an App-Chem, obtained an approval of line of credit from Qishang Bank Co., Ltd. (“Qishang Bank”) for a maximum of RMB 13 million (approximately $ 2.0 million) loans as working capital. On December 15, 2020, the Company borrowed RMB 3.0 million (approximately $ 0.5 million) as working capital for three years, with maturity date on December 13, 2023 and interest rate of 6.65% The Company pledged certain free patent owned by the Company as collateral to safeguard this loan. In addition, the Company’s controlling shareholder, Mr. Yongwei Hu and his wife Ms. Jing Liu, also pledged their personal residence properties as collateral to safeguard this loan. The Company repaid RMB 0.5 million (equivalent to US$ 77,423 ) before September 30, 2021 and the outstanding loan balance as of September 30, 2021 was RMB 2.5 million (equivalent to US$ 387,117 ). According to the payment term, the Company is required to repay RMB 0.5 million (equivalent to US$ 77,423 ) on December 21, 2021 and June 22, 2021, respectively, with the remaining balance of RMB 1.5 million (equivalent to US$ 232,271 1.0 million (equivalent to US$ 154,847 ) was reclassified as current portion of long-term loans. As of the date of this filing, the Company had the availability to borrow additional approximately $ 1.5 million (RMB 10.0 million) from Qishang Bank before December 9, 2023. (11) On June 20, 2021, Xi’an App-Chem’s subsidiary, Tianjin YHX, entered into a loan agreement with Shenzhen Qianhai WeBank Co., Ltd, to borrow RMB 620,000 96,005 as working capital for 24 months, with maturity date on June 20, 2023 14.4% For the above-mentioned short-term and long-term loans from PRC banks and financial institutions, interest expense amounted to $ 417,266 329,102 333,190 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 10— DEBT (continued) In addition to the above mentioned short-term and long-term loans, on December 6, 2021, the Company’s VIE, Xi’an App-Chem, obtained an approval of line of credit from Shanghai Pudong Development Bank (“SPD Bank”) for a maximum of RMB 15 2.3 one year 10 1.5 5.0 January 9, 2023 100 5 0.8 As of the date of this filing, the Company had the availability to borrow an aggregate of approximately $ 5.9 38 SCHEDULE OF LINE OF CREDIT Name of financial institution: Amount Huaxia Bank $ 1,548,467 Qishang Bank 1,548,467 Bohai Bank 2,013,007 SPD Bank 774,234 Total $ 5,884,175 (c) Third party loans SCHEDULE OF THIRD PARTY LOANS September 30, 2021 September 30, 2020 Wei Wang $ - $ 440,962 Shaanxi Keyi Technology Co. Ltd. - 73,494 Biyun Xue - 9,775 Xi ‘an Kaimei Medical Technology Co., Ltd. - 166,096 Total third-party loans $ - $ 690,327 During the Company’s normal course of business, the Company also borrows funds from several third-party individuals or third-party companies as working capital. These borrowings are short-term, interest free and payable on demand. Loans payable to third-parties amounted to $ 690,327 no |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 11 — RELATED PARTY TRANSACTIONS SCHEDULE OF DUE TO RELATED PARTIES (a) Due to related parties Related party relationship September 30, 2021 September 30, 2020 Shaanxi Meishengyuang Bio-Technoloy Co., Ltd 5.5% shareholder of Xi’an App-chem $ - $ 738,864 Wenhu Guo Senior Management of the Company 3,376 368,145 Yongwei Hu Chief Executive Officer and Controlling shareholder of the Company - 1,208,337 Jing Liu Wife of the controlling shareholder 35,615 4,410 Sheying Wang Senior Management of the Company 3,407 3,234 Yuantao Wang 49% shareholder of Tianjin YHX 202,706 - Total due to related parties $ 245,104 $ 2,322,990 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 11 — RELATED PARTY TRANSACTIONS (continued) As of September 30, 2021 and 2020, the balance of due to related parties was comprised of the Company’s borrowings from related parties and was used for working capital during the Company’s normal course of business. Such advance was non-interest bearing and due on demand. (b) Loan guarantee provided by related parties In connection with the Company’s short-term and long-term loans borrowed from PRC banks and other financial institutions, the Company’s controlling shareholder, Mr. Yongwei Hu pledged his proportionate ownership interest in Xi’an App-chem, and his personal bank savings as collateral to safeguard the Company’s borrowings from the banks and financial institutions. Mr. Yongwei Hu and his wife Ms. Jing Liu also jointly pledged their personal residence property to guarantee the Company’s certain loans (see Note 10). |
TAXES
TAXES | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 12 — TAXES (a) Corporate Income Taxes (“CIT”) Cayman Islands Under the current tax laws of the Cayman Islands, Bon Natural Life Limited (“Bon Natural Life”) is not subject to tax on its income or capital gains. In addition, no Cayman Islands withholding tax will be imposed upon the payment of dividends by the Company to its shareholders. Hong Kong Tea Essence Limited (“Tea Essence”) is incorporated in Hong Kong and is subject to profit taxes in Hong Kong at a rate of 16.5 no PRC Under PRC CIT Law, domestic enterprises and Foreign Investment Enterprises (“FIEs”) are usually subject to a unified 25 Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15 CIT is typically governed by the local tax authority in PRC. Each local tax authority at times may grant tax holidays to local enterprises as a way to encourage entrepreneurship and stimulate local economy. The corporate income taxes for the years ended September 30, 2021, 2020 and 2019 were reported at a blended reduced rate as a result of Xi’an App-chem being approved as a HNTE and enjoying a 15% reduced income tax rate, but subsidiaries of Xi’an App-chem are subject to a 25% income tax rate. The impact of the tax holidays noted above decreased foreign taxes by $ 514,327 372,517 314,080 0.08 0.07 0.06 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 12 — TAXES (continued) The following table reconciles the China statutory rates to the Company’s effective tax rate for the years ended September 30, 2021, 2020 and 2019: SCHEDULE OF EFFECTIVE TAX RATE For the Years Ended September 30, 2021 2020 2019 PRC statutory income tax rate 25.0 % 25.0 % 25.0 % Effect of income tax holiday (9.5 )% (10.0 )% (10.0 )% Permanent difference 0.5 % 0.0 % 0.1 % Research and development deduction (3.4 )% (0.4 )% (1.9 )% Change in valuation allowance 2.5 % 0.6 % 1.1 % Effective tax rate 15.1 % 15.2 % 14.3 % The components of the income tax provision (benefit) are as follows: SCHEDULE OF COMPONENTS OF THE INCOME TAX PROVISION (BENEFIT) For the Years Ended September 30, 2021 2020 2019 Current tax provision: Cayman Islands $ - $ - $ - Hong Kong - - - China 791,822 564,013 432,343 Sub-total 791,822 564,013 432,343 Deferred tax provision (benefit): Cayman Islands - - Hong Kong - - China 29,109 (7,751 ) (5,149 ) Sub-total 29,109 (7,751 ) (5,149 ) Income tax provision $ 820,931 $ 556,262 $ 427,194 Deferred tax assets The Company’s deferred tax assets are comprised of the following: SCHEDULE OF DEFERRED TAX ASSETS September 30, 2021 September 30, 2020 Deferred tax assets derived from allowance for doubtful accounts and net operating losses (“NOL”) $ 237,696 $ 370,184 Less: valuation allowance (215,354 ) (321,125 ) Deferred tax assets $ 22,342 $ 49,059 The Company follows ASC 740, “Income Taxes”, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 12 — TAXES (continued) A valuation allowance is provided against deferred tax assets when the Company determines that it is more likely than not that the deferred tax assets will not be utilized in the future. The Company has subsidiaries and VIE in the PRC, among which 7 entities, including Xi’an CMIT, App-Chem Ag-tech, App-Chem Guangzhou, Tongchuan DT, Xi’an DT, Tianjin YHX and Gansu BMK, reported recurring operating losses since their inception and the chances for these subsidiaries and VIE that suffered recurring losses in prior period to become profitable in the foreseeable near future and to utilize their net operating loss carry forwards were remote. Accordingly, the Company provided valuation allowance of $ 215,354 321,125 318,572 As of September 30,2021, all of the Company’s tax returns of its PRC subsidiaries, its VIE and VIE’s subsidiaries remain open for statutory examination by PRC tax authorities. (b) Taxes payable Taxes payable consist of the following: SCHEDULE OF TAXES PAYABLE September 30, 2021 September 30, 2020 Income tax payable $ 1,691,007 $ 850,834 Value added tax payable 3,262,532 3,463,146 Other taxes 98,479 88,645 Total taxes payable $ 5,052,018 $ 4,402,625 As of September 30, 2021 and 2020, Company had accrued tax liabilities of approximately $ 5.1 4.4 The Company initially expected to settle the unpaid income tax liabilities in May 2021 when the 2020 annual income tax return is to be filed with local tax authority, and settle the unpaid VAT tax liabilities before September 30, 2021. In May 2021, the Company negotiated with local tax authorities and submitted a settlement extension application in accordance with the notices issued by local government to encourage enterprises to conduct public offerings. For the unpaid income tax and VAT tax liabilities, the Company obtained an approval from local tax authority to extend the tax liability settlement date from May 2021 to December 31, 2021. In December 2021, due to recent COVID-19 resurgence which caused strict city lockdown in Xi’an where the Company is headquartered, the Company re-negotiated with local tax authorities and submitted a settlement extension application in accordance with the notices issued by the State Administration of Taxation to encourage micro, small and medium-sized enterprises in manufacturing industry. For the unpaid income tax and VAT tax liabilities, the Company obtained an approval from local tax authority to further extend the tax liability settlement date from December 31, 2021 to June 30, 2022 without interest and penalty during this extended time period. To the extent the Company is unable to settle its tax liabilities as scheduled, or interest and penalties on unpaid tax liabilities assessed by tax authorities greatly exceed management’s estimates, the Company’s financial condition and operating results may be negatively impacted. BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
CAPITAL LEASE LIABILITIES
CAPITAL LEASE LIABILITIES | 12 Months Ended |
Sep. 30, 2021 | |
Capital Lease Liabilities | |
CAPITAL LEASE LIABILITIES | NOTE 13 — CAPITAL LEASE LIABILITIES On December 25, 2020, the Company’s VIE, Xi’an App-Chem (the “Lessee”) entered into a sale and leaseback agreement with Taizhongyin Finance Lease (Suzhou) Ltd. (“the Lessor”) and sold part of its plant machines with carrying value of RMB 2 0.3 15,707 The maturities of the Company’s finance lease liabilities are as follows: SCHEDULE OF MATURITY FINANCE LEASE LIABILITIES US$ Year Ending September 30, 2022 $ 176,525 2023 29,421 Total $ 205,946 |
OPERATING LEASE
OPERATING LEASE | 12 Months Ended |
Sep. 30, 2021 | |
Operating Lease | |
OPERATING LEASE | NOTE 14 - OPERATING LEASE The Company entered into following lease agreements to lease its factory in Dali County, Shaanxi Province of China and its office spaces in Xi’an City, Shaanxi Province of China. The Company intend to continue these leases for the next three years. On January 1, 2020, the Company entered into a five . The rental payment related to the lease were $ 23,043 and $ 16,056 for the years ended September 30, 2021 and 2020, respectively. On June 30, 2020, the Company entered into a one 42,494 9,870 Balance sheet information related to the operating lease is as follows: SCHEDULE OF BALANCE SHEET INFORMATION RELATED OPERATING LEASE September 30, 2021 Operating lease assets: Operating lease right of use assets $ 201,007 Total operating lease assets 201,007 Operating lease obligations: Current operating lease liabilities 62,871 Non-current operating lease liabilities 146,703 Total operating lease obligations $ 209,574 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 14 - OPERATING LEASE (continued) The weighted-average remaining lease term and the weighted-average discount rate of leases are as follows: SCHEDULE OF WEIGHTED-AVERAGE OF OPERATING LEASE September 30, 2021 Weighted-average remaining lease term 2.9 Weighted-average discount rate 4.75 % The following table summarizes the maturity of operating lease liabilities as of September 30, 2021: SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITIES Year ending September 30, US$ 2022 $ 71,414 2023 78,553 2024 69,629 2025 5,806 Total lease payments 225,402 Less: imputed interest (15,828 ) Total lease liabilities $ 209,574 |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 12 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 15— SHAREHOLDERS’ EQUITY Ordinary Shares Bon Natural Life Limited (“Bon Natural Life”, or the “Company”) was incorporated under the laws of Cayman Islands on December 11, 2019. The authorized number of ordinary shares was 50,000,000 0.0001 15,500,000 On June 17, 2020, the Company’s shareholders approved a reverse split of the outstanding ordinary shares at a ratio of 1-for-3 shares 10,333,333 15,500,000 5,166,667 5,166,667 On June 23, 2020, the Company entered into consulting service agreements with three third-party consultants (collectively the “Consultants”), pursuant to which, the Consultants will provide public listing related consulting services to the Company in connection with the Company’s intended IPO effort. Such consulting services include but not limit to market research and feasibility study, business plan drafting, reorganization, pre-listing education and tutoring, reorganization, legal and audit firm recommendation and coordination, investor referral and pre-listing equity financing source identification and recommendations, and independent directors and audit committee candidate’s recommendation, etc. The Company issued 633,333 633,333 633,333 For the year ended September 30, 2021 and 2020, 422,221 211,112 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 15— SHAREHOLDERS’ EQUITY (continued) On June 28, 2021, the Company closed its initial public offering (“IPO”) of 2,200,000 0.0001 5.00 330,000 0.0001 5.00 As of September 30, 2021 and 2020, the Company had 8,330,000 5,800,000 Underwriter warrants In connection with the Company’s IPO, the Company also agreed to issue to the underwriters and to register herein warrants to purchase up to a total of 101,200 4% These warrants have warrant term of five years 5.00 5.00 5 The warrants are exercisable at any time, and from time to time, in whole or in part, commencing 180 days from the closing of the IPO. Management determined that these warrants meet the requirements for equity classification under ASC 815-40 because they are indexed to its own stock. As of September 30, 2021, 101,200 none A summary of warrants activity for the years ended September 30, 2021 and 2020 was as follows: SCHEDULE OF WARRANT ACTIVITY Number of warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Term Fair Value Outstanding, September 30, 2020 - - - - Granted 101,200 $ 5.00 - $ - Forfeited - - - - Exercised - - - - Outstanding, September 30, 2021 101,200 $ 5.00 4.75 $ - Exercisable, September 30, 2021 101,200 $ 5.00 4.75 $ - BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Non-controlling interest The Company’s VIE, Xi’an App-chem, owns majority of the equity interest in the following two entities: Xi’an Dietary Therapy Medical Technology Co., Ltd (“Xi’an DT”) and Tianjin Yonghexiang Bio(Tech) Co., Ltd. (“Tianjin YHX”) Non-controlling interests represent minority shareholders’ 25 49 SCHEDULE OF NON-CONTROLLING INTEREST Xi’an DT Tianjin YHX Total As of September 30, 2020 $ 492,753 $ 13,979 $ 506,732 Non-controlling interest, beginning $ 492,753 $ 13,979 $ 506,732 Net income attributable to non-controlling interest (10,370 ) 29,020 18,650 Foreign currency translation adjustment 654 1,829 2,482 As of September 30, 2021 $ 483,037 $ 44,828 $ 527,865 Non-controlling interest, ending $ 483,037 $ 44,828 $ 527,865 Statutory reserve and restricted net assets Relevant PRC laws and regulations restrict the Company’s PRC subsidiaries, VIE and VIE’s subsidiaries from transferring a portion of their net assets, equivalent to their statutory reserves and their share capital, to the Company in the form of loans, advances or cash dividends. Only PRC entities’ accumulated profits may be distributed as dividends to the Company without the consent of a third party. The Company is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory surplus 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. The payment of dividends by entities organized in China is subject to limitations, procedures and formalities. Regulations in the PRC currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in China. The results of operations reflected in the consolidated financial statements prepared in accordance with U.S GAAP differ from those in the statutory financial statements of the WFOE and VIE. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated by State Administration of Foreign Exchange. In light of the foregoing restrictions, the Company’s WFOE Xi’an CMIT, VIE and VIE’s subsidiaries are restricted in their ability to transfer their net assets to the Company. Foreign exchange and other regulations in the PRC may further restrict the WFOE, VIE and VIE’s subsidiaries from transferring funds to the Company in the form of dividends, loans and advances. As of September 30, 2021 and 2020, the restricted amounts as determined pursuant to PRC statutory laws totaled $ 1,050,721 579,922 16,591,987 5,831,707 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 16 - SHARE-BASED COMPENSATION On June 23, 2020, the Company entered into consulting service agreements with three third-party consultants (collectively the “Consultants”), pursuant to which, the Consultants will provide public listing related consulting services to the Company in connection with the Company’s intended IPO effort. The Company issued 633,333 633,333 633,333 The Company applied ASC 718 and related interpretations in accounting for measuring the cost of share-based compensation over the period during which the consultants are required to provide services in exchange for the issued shares. For the year ended September 30, 2021 and 2020, $ 422,221 211,112 Pursuant to the Director Service Agreements with the Company’s independent directors and following the completion of the Company’s IPO, on June 23, 2021, the Company granted stock options to three independent directors to purchase an aggregate of 36,000 0.0001 0.01 12 months The aggregate fair value of the options granted to independent directors was $ 179,640 5.0 4.35 1 0.01 71.1 Nil For the year ended September 30, 2021, 2020 and 2019, $ 44,910 Nil Nil The following table summarizes the Company’s stock option activities: SUMMARY OF STOCK OPTION Number of options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Fair Value Outstanding, September 30, 2020 - - - - Granted 36,000 $ 0.01 - $ 179,640 Forfeited - - - - Exercised - - - - Outstanding, September 30, 2021 36,000 $ 0.01 0.75 $ 179,640 Exercisable, September 30, 2021 9,000 $ 0.01 0.75 $ 44,910 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
CONCENTRATION
CONCENTRATION | 12 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION | NOTE 17 - CONCENTRATION A majority of the Company’s revenue and expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. For the years ended September, 2021, 2020 and 2019, the Company’s substantial assets were located in the PRC and the Company’s substantial revenues were derived from its subsidiaries located in the PRC. As of September 30, 2021 and 2020, $ 1,903,453 49,668 The Company sells its products primarily through direct distributors in the People’s Republic of China (the “PRC”) and to some extent, the overseas customers in European countries, North America and Middle East. For the years ended September, 2021, two customers accounted for 35.5 26.1 29.0 27.2 14.1 17.2 12.1 10.2 As of September, 2021, two customers accounted for approximately 61.0 33.1 43.7 25.8 10.4 For the years ended September 30, 2021, two suppliers accounted for approximately 30.1 13.4 28.9 28.8 24.1 14.8 10.1 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 18 - COMMITMENTS AND CONTINGENCIES From time to time, the Company is a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. For the years ended September, 2021 and 2020, the Company did not have any material legal claims or litigation that, individually or in aggregate, could have a material adverse impact on the Company’s consolidated financial position, results of operations and cash flows. The Company has an ongoing CIP project associated with the construction of a new manufacturing facility. As of September 30, 2021, future minimum capital expenditures on the Company’s CIP project amounted to approximately $ 5.1 2.3 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 19— SEGMENT REPORTING An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, and is identified on the basis of the internal financial reports that are provided to and regularly reviewed by the Company’s chief operating decision maker in order to allocate resources and assess performance of the segment. The Company’s conducts its business in China through its wholly-owned subsidiaries and entities controlled through contractual arrangements. The Company’s VIE, Xi’an App-chem, is primarily engaged in the general administration and sales of the Company’s products. The VIE’s subsidiaries are engaged in the manufacturing, research and development and raw material purchase (see Note 1). The Company develops, manufactures and sells products to customers located in both Chinese and international markets. The Company’s products have similar economic characteristics with respect to raw materials, vendors, marketing and promotions, customers and methods of distribution. The Company’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company, rather than by product types or geographic area; hence the Company has only one Revenue by region SCHEDULE OF SEGMENT REPORTING REVENUE BY REGION For Years ended September 30, 2021 2020 2019 PRC $ 23,704,259 $ 15,461,801 $ 11,192,324 Overseas 1,790,305 2,758,158 5,203,694 Total revenue $ 25,494,564 $ 18,219,959 $ 16,396,018 Revenue by product categories The summary of our total revenues by product categories for the years ended September 30, 2021, 2020 and 2019 was as follows: SCHEDULE OF SEGMENT REPORTING REVENUE BY PRODUCT CATEGORIES For Years ended September 30, 2021 2020 2019 Fragrance compounds $ 12,744,029 $ 7,879,300 $ 6,738,274 Health supplements (solid drinks) 6,655,982 3,887,096 4,342,490 Bioactive food ingredients 6,094,553 6,453,563 5,315,254 Total revenue $ 25,494,564 $ 18,219,959 $ 16,396,018 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 20 - SUBSEQUENT EVENTS (1). Bank Loans From October 2021 to January 2022, the Company repaid total of $ 41,381 267,238 On December 6, 2021, the Company’s VIE, Xi’an App-Chem, obtained an approval of line of credit from Shanghai Pudong Development Bank for a maximum of RMB 15 2.3 10 1.5 5.0 January 9, 2023 A third-party Xian Financial Guarantee Co., Ltd. provided guarantee to this loan. In addition, the Company pledged its 100% ownership interest in App-Chem Health and certain free patent owned by the Company as collateral to guarantee this loan. 5 0.8 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 20 - SUBSEQUENT EVENTS (continued) (2). Terminating the VIE agreements for corporate restructuring Due to PRC legal restrictions on foreign ownership in companies that engage in online sales China, we originally carried out our business through Xi’an App-Chem, a domestic PRC company holding a value-added telecommunications license, through a variable interest entity structure, because foreign investment in the value-added telecommunication services industry in China is extensively regulated and subject to numerous restrictions. However, our online sales have historically generated minimal revenues. On September 28, 2021, our Board of Directors approved a restructuring of our corporate structure to terminate the original VIE contractual agreements, to convert Xi’an App-Chem from a PRC domestic company into a Sino-foreign joint venture, and to transfer 100 100 Effective November 1, 2021, we completed the reorganization of our corporate structure in the PRC and are the indirect sole shareholder of Xi’an App-Chem. Xi’an App-Chem is wholly-owned by two WOFEs Xi’an CMIT and Xi’an Youpincui. Each of the WOFEs are in turn wholly-owned by Tea Essence, our direct wholly-owned subsidiary in Hong Kong. Xi’an App-Chem’s financial results are consolidated into our consolidated financial statements in accordance with U.S. GAAP because we have control over that entity by way of 100 (3) Exercise of the warrants As disclosed in Note 15, in connection with the Company’s IPO, the Company agreed to issue to the underwriters with warrants to purchase up to a total of 101,200 ordinary shares of the Company, with warrant terms of five years and with an exercise price of $ 5.00 per share. On October 1, 2021, the underwriters elected to exercise 20,381 shares of warrants with cashless exercise. The Company did not receive any proceeds from this transaction. |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 12 Months Ended |
Sep. 30, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | NOTE 21— CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY Rule 12-04(a), 5-04(c) and 4-08(e)(3) of Regulation S-X require the condensed financial information of the parent company to be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The Company performed a test on the restricted net assets of consolidated subsidiaries in accordance with such requirement and concluded that it was applicable to the Company as the restricted net assets of the Company’s PRC subsidiaries and VIEs exceeded 25% of the consolidated net assets of the Company, therefore, the financial statements for the parent company are included herein. For purposes of the above test, restricted net assets of consolidated subsidiaries and VIEs shall mean that amount of the Company’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries and VIEs in the form of loans, advances or cash dividends without the consent of a third party. The 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 equity method to account for investment in its subsidiaries and VIEs. Such investment is presented on the condensed balance sheets as “Investment in subsidiaries and VIEs” and the respective profit or loss as “Equity in earnings of subsidiaries and VIEs” on the condensed statements of comprehensive income. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S GAAP have been condensed or omitted. The Company did not pay any dividend for the periods presented. As of September 30, 2021 and 2020, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any. BON NATURAL LIFE LIMITED AND SUBSIDIARIES PARENT COMPANY BALANCE SHEETS SCHEDULE OF CONDENSED BALANCE SHEET September 30, 2021 September 30, 2020 ASSETS Current assets Cash $ 245,081 $ - Acquisition deposit 1,000,000 - Due from subsidiaries and VIEs 10,000,000 - Prepaid expenses and other current assets 2,600 - Total current assets 11,247,681 - Non-current assets Investment in subsidiaries and VIEs 14,759,203 10,516,277 Total assets $ 26,006,884 $ 10,516,277 LIABILITIES AND SHAREHOLDERS’ EQUITY LIABILITIES $ - $ - COMMITMENTS AND CONTINGENCIES - SHAREHOLDERS’ EQUITY Ordinary shares, $ 0.0001 500,000,000 8,330,000 5,800,000 $ 833 $ 580 Additional paid-in capital 15,540,433 5,251,205 Retained earnings 10,243,397 5,652,594 Accumulated other comprehensive income (loss) 222,221 (388,102 ) Total Bon Natural Life Limited shareholders’ equity 26,006,884 10,516,277 Total liabilities and Bon Natural Life Limited shareholders’ equity $ 26,006,884 $ 10,516,277 BON NATURAL LIFE LIMITED AND SUBSIDIARIES PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME SCHEDULE OF CONDENSED INCOME STATEMENT 2021 2020 2019 For the Years Ended September 30, 2021 2020 2019 General and administrative expenses $ (68,722 ) $ - $ - Interest income 13 - - Equity in earnings of subsidiaries and VIEs 4,659,512 3,026,673 2,573,803 NET INCOME 4,590,803 3,026,673 2,573,803 Foreign currency translation adjustment 610,323 440,141 (281,897 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED $ 5,201,126 $ 3,466,814 $ 2,291,906 BON NATURAL LIFE LIMITED AND SUBSIDIARIES PARENT COMPANY STATEMENTS OF CASH FLOWS SCHEDULE OF CONDENSED CASH FLOW STATEMENT 2021 2020 2019 For the Years Ended September 30, 2021 2020 2019 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 4,590,803 $ 3,026,673 $ 2,573,803 Adjustments to reconcile net cash flows from operating activities: - Equity in earnings of subsidiaries and VIEs (4,659,512 ) (3,026,673 ) (2,573,803 ) Stock-based compensation 44,910 - - Changes in operating assets and liabilities: Prepaid expenses and other current assets (2,600 ) - - Net cash used in operating activities (26,399 ) - - CASH FLOWS FROM INVESTING ACTIVITIES: Payment of acquisition deposit (1,000,000 ) - - Net cash used in investing activities (1,000,000 ) - - CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Issuance of Ordinary Shares 11,271,480 - - Cash lent to subsidiaries and VIE (10,000,000 ) - - Net cash provided by (used in) financing activities 1,271,480 - - CHANGES IN CASH AND RESTRICTED CASH 245,081 - - CASH AND RESTRICTED CASH, beginning of period - - - CASH AND RESTRICTED CASH, end of period $ 245,081 $ - $ - |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The accompanying consolidated financial statements include the financial statements of the Company, its wholly owned subsidiaries, and entities it controlled through VIE agreements. All inter-company balances and transactions are eliminated upon consolidation. |
Non-controlling interests | Non-controlling interests Non-controlling interests represent minority shareholders’ 25 49 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Uses of estimates | Uses of estimates In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. |
Risks and Uncertainties | Risks and Uncertainties The main operation of the Company is 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. The development and commercialization of natural and healthy extracts and compounds products is highly competitive, and the industry currently is characterized by rapidly changing technologies, significant competition and a strong emphasis on intellectual property. The Company may face competition with respect to its current and future pharmaceutical product candidates from major pharmaceutical companies in China. The Company’s operations may be further affected by the ongoing outbreak of COVID-19 pandemic. Although the Company resumed its operations since March 2, 2020 and the COVID-19 impact on the Company’s operating results and financial performance for the years ended September 30, 2021 and 2020 seems to be temporary, a resurgence could negatively affect the execution of customer contracts, the collection of customer payments, or disruption of the Company’s supply chain. The continued uncertainties associated with COVID-19 may cause the Company’s revenue and cash flows to underperform in the next 12 months. The extent of the future impact of COVID-19 is still highly uncertain and cannot be predicted as of the financial statement reporting date. |
Cash and cash equivalents | Cash and cash equivalents Cash includes currency on hand and deposits held by banks that can be added or withdrawn without limitation. The Company maintains most of its bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. |
Accounts receivable, net | Accounts receivable, net The Company determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trend. 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 estimate of specific losses on individual exposures, as well as a provision on historical trends of collections. Actual amounts received may differ from management’s estimate of credit worthiness and the economic environment. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the collection is not probable, $ 99,528 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) year ended September 30, 2021. Allowance for uncollectable balances amounted to $ 14,691 93,032 |
Advances to Suppliers, net | Advances to Suppliers, net Advances to suppliers consist of balances paid to suppliers for inventory raw materials and construction materials associated with the Company’s construction-in-progress projects that have not been provided or received. Advances to suppliers are reviewed periodically to determine whether their carrying value has become impaired. The Company considers the assets to be impaired if the collectability of the advance becomes doubtful. The Company uses the aging method to estimate the allowance for unrealizable balances. In addition, at each reporting date, the Company generally determines the adequacy of allowance for doubtful accounts by evaluating all available information, and then records specific allowances for those advances based on the specific facts and circumstances. As of September 30, 2021 and 2020, allowance for doubtful account amounted to Nil and $ 13,141 , respectively. |
Inventories, net | Inventories, net Inventories are stated at net realizable value using weighted average method. Costs include the cost of raw materials, freight, direct labor and related production overhead. Any excess of the cost over the net realizable value of each item of inventories is recognized as a provision for diminution in the value of inventories. Net realizable value is the estimated selling price in the normal course of business less any costs to complete and sell products. The Company evaluates inventories on a quarterly basis for its net realizable value adjustments, and reduces the carrying value of those inventories that are obsolete or in excess of the forecasted usage to their estimated net realizable value based on various factors including aging, expiration dates, as applicable, taking into consideration historical and expected future product sales. The Company recorded inventory reserve of $ 147,960 439,486 |
Deferred initial public offering (“IPO”) costs | Deferred initial public offering (“IPO”) costs The Company complies with the requirement of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “Expenses of Offering”. Deferred offering costs consist of underwriting, legal, and other expenses incurred through the balance sheet date that are directly related to the intended IPO. Deferred offering costs will be charged to shareholders’ equity upon the completion of the IPO. Deferred initial public offering costs amounted to Nil and $ 510,079 as of September 30, 2021 and 2020, respectively. |
Short-term investments | Short-term investments The Company’s short-term investments consist of wealth management financial products purchased from PRC banks, which can be redeemed at any time. The banks invest the Company’s fund in certain financial instruments including money market funds, bonds or mutual funds, with floating interest rates. The carrying values of the Company’s short-term investments approximate fair value because of their short-term maturities. The interest earned is recognized in the consolidated statements of . operations and comprehensive income (loss) over the contractual term of these investments. As of September 30, 2021 and 2020, short-term investments consisted of the following: SCHEDULE OF SHORT-TERM INVESTMENT September 30, 2021 September 30, 2020 Beginning balance $ - $ - Add: purchase wealth management financial products 2,159,920 - Less: proceeds received upon maturity of short-term investments (470,082 ) - Foreign currency translation adjustments 13,476 - Ending balance of short-term investments $ 1,703,314 $ - BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Investment income generated from short-term investments amounted to $ 565 Nil Nil |
Fair value of financial instruments | Fair value of financial instruments 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 (unadjusted) 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 market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. ● Level 3 — inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s cash, short-term investment, accounts receivable, inventories, advance to suppliers, prepaid expenses and other current assets, accounts payable, short-term bank loans, accrued expenses and other current liabilities, taxes payable and due to related parties, approximate the fair value of the respective assets and liabilities as of September 30, 2021 and 2020 based upon the short-term nature of the assets and liabilities. The Company believes that the carrying amount of long-term loans approximates fair value at September 30, 2021 and 2020 based on the terms of the borrowings and current market rates as the rates of the borrowings are reflective of the current market rates. |
Property, plant and equipment, net | Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment is provided using the straight-line method over their expected useful lives, as follows: SCHEDULE OF USEFUL LIVES OF PROPERTY, PLANT AND EQUIPMENT Useful life Buildings 20 Machinery and equipment 5 10 Automobiles 8 Office and electric equipment 3 5 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. |
Construction-in-Progress (“CIP” | Construction-in-Progress (“CIP” Construction-in-progress represents property and buildings under construction and consists of construction expenditures, equipment procurement, and other direct costs attributable to the construction. Construction-in-progress is not depreciated. Upon completion and ready for intended use, construction-in-progress is reclassified to the appropriate category within property, plant and equipment. BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Intangible assets, net | Intangible assets, net The Company’s intangible assets primarily include two land use rights. A land use right in the PRC represents an exclusive right to occupy, use and develop a piece of land during the contractual term of the land use right. The cost of a land use right is usually paid in one lump sum at the date the right is granted. The prepayment usually covers the entire period of the land use right. The lump sum advance payment is capitalized and recorded as land use right and then charged to expense on a straight-line basis over the period of the right, which is normally 50 The Company acquired the first land use right of 4.1 0.2 8.2 0.3 |
Impairment of long-lived Assets | Impairment of long-lived Assets Long-lived assets, such as property, plant and equipment, land use rights and long-term investment, are reviewed for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Recoverability of a long-lived asset or asset group to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying value of an asset or asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount that the carrying value exceeds the estimated fair value of the asset or asset group. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Assets to be disposed are reported at the lower of carrying amount or fair value less costs to sell, and are no longer depreciated. No impairment of long-lived assets was recognized as of September 30, 2021 and 2020. |
Leases | Leases On October 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (as amended by ASU 2018-01, 2018-10, 2018-11, 2018-20, and 2019-01, collectively “ASC 842”) using the modified retrospective basis and did not restate comparative periods as permitted under ASU 2018-11. ASC 842 requires that lessees recognize ROU assets and lease liabilities calculated based on the present value of lease payments for all lease agreements with terms that are greater than twelve months. ASC 842 distinguishes leases as either a finance lease or an operating lease that affects how the leases are measured and presented in the statement of operations and statement of cash flows. For operating leases, the Company calculated ROU assets and lease liabilities based on the present value of the remaining lease payments as of the date of adoption. There were no changes in the Company’s capital lease portfolio, which are now titled “finance leases” under ASC 842. Upon the adoption of the new guidance on October 1, 2020, the Company recognized operating lease right of use assets and operating lease liabilities of approximately $ 0.2 On December 25, 2020, the Company’s VIE, Xi’an App-Chem (the “Lessee”) entered into a sale and leaseback agreement with Taizhongyin Finance Lease (Suzhou) Ltd. (“the Lessor”) and sold part of its plant machines with carrying value of RMB 2 0.3 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Foreign Currency Translation | Foreign Currency Translation The functional currency for Bon Natural is the U.S Dollar (“US$”). Tea Essence uses Hong Kong dollar as its functional currency. However, Bon Natural, and Tea Essence currently only serve as the holding companies and did not have active operations as of the date of this report. The Company operates its business through its subsidiaries and VIEs in the PRC as of September 30, 2021. The functional currency of the Company’s subsidiaries and VIEs is the Chinese Yuan (“RMB”). The Company’s consolidated financial statements have been translated into US$. Assets and liabilities accounts are translated using the exchange rate at each reporting period end date. Equity accounts are translated at historical rates. Income and expense accounts are translated at the average rate of exchange during the reporting period. The resulting translation adjustments are reported under other comprehensive income. Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the results of operations. The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in translation. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: SCHEDULE OF CURRENCY EXCHANGE RATES September 30, 2021 September 30, 2020 September 30, 2019 Period-end spot rate US$ 1 6.4580 US$ 1 6.8033 US$ 1 7.1383 Average rate US$ 1 6.5095 US$ 1 7.0066 US$ 1 6.8767 |
Revenue recognition | Revenue recognition To determine revenue recognition for contracts with customers, the Company performs the following five steps : (i) identify the contract(s) with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not In accordance to ASC 606, the Company recognizes revenue when it transfers its goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. The Company accounts for the revenue generated from sales of its products to its customers, in which the Company is acting as a principal in these transactions, is subject to inventory risk, has latitude in establishing prices, and is responsible for fulfilling the promise to provide customers the specified goods. All of the Company’s contracts have single performance obligation as the promise is to transfer the individual goods to customers, and there is no other separately identifiable promises in the contracts. The Company’s revenue streams are recognized at a point in time when title and risk of loss passes and the customer accepts the goods, which generally occurs at delivery. The Company’s products are sold with no right of return and the Company does not provide other credits or sales incentive to customers. The Company’s sales are net of value added tax (“VAT”) and business tax and surcharges collected on behalf of tax authorities in respect of product sales. BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Contract Assets and Liabilities Payment terms are established on the Company’s pre-established credit requirements based upon an evaluation of customers’ credit. The Company did not have contract assets as of September 30, 2021 and 2020. The Company’s contract liability primarily relates to unsatisfied performance obligations when payment has been received from customers before the Company’s products are delivered, and are recorded as deferred revenue on the consolidated balance sheets. Costs of fulfilling customers’ purchase orders, such as shipping, handling and delivery, which occur prior to the transfer of control, are recognized in selling, general and administrative expense when incurred. Deferred revenue amounted to $ 1,096,101 385,978 403,399 213,734 1,441,595 |
Disaggregation of Revenues | Disaggregation of Revenues The Company disaggregates its revenue from contracts by product types, as the Company believes it best depicts how the nature, amount, timing and uncertainty of the revenue and cash flows are affected by economic factors. The Company’s disaggregation of revenues for the years ended September 30, 2021, 2020 and 2019 are disclosed in Note 19 of the consolidation financial statements. |
Research and development expenses | Research and development expenses The Company expenses all internal research and development costs as incurred, which primarily comprise employee costs, internal and external costs related to execution of studies, including manufacturing costs, facility costs of the research center, and amortization and depreciation to intangible assets and property, plant and equipment used in the research and development activities. For the years ended September 30, 2021 and 2020 and 2019, research and development expense were approximately $ 249,050 205,359 522,867 |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling expenses represents primarily costs of payroll, benefits, commissions for sales representatives and advertising expenses. General and administrative expenses represent primarily payroll and benefits costs for administrative employees, rent and operating costs of office premises, depreciation and amortization of office facilities, professional fees and other administrative expenses. |
Advertising expense | Advertising expense Advertising expenses primarily relate to promotion of the Company’s brand name and products through outdoor billboards and social media such as Weibo and WeChat. Advertising expenses are included in selling expenses in the consolidated statements of income and comprehensive income. Advertising expenses amounted to $ 25,397 14,264 51,257 |
Government subsidies | Government subsidies Government subsidies primarily relate to local government’s cash award to High and New Technology Enterprises (“HNTEs”) to encourage entrepreneurship and stimulate local economy. Such awards are granted on a case-by-case basis by local government. The Company’s VIE, Xi’an App-chem was approved as a HNTE and received government subsidy in the form of export sales refund and cash awards based on annual financial performance. BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The Company recognizes government subsidies as other operating income when they are received because they are not subject to any past or future conditions, there are no performance conditions or conditions of use, and they are not subject to future refunds. Government subsidies received and recognized as other operating income totaled $ 449,972 362,187 140,295 |
Income taxes | Income taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. An uncertain tax position is recognized only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. As of September 30, 2021, the Company had income tax payable of approximately $ 1.7 1.7 The Company’s subsidiaries and VIEs in China are subject to the income tax laws of the PRC. No significant income was generated outside the PRC for the years ended September 30, 2021,2020 and 2019. As of September 30, 2021 and 2020, all of the Company’s tax returns of its PRC subsidiaries, its VIE and VIE’s subsidiaries remain open for statutory examination by PRC tax authorities. |
Value added tax (“VAT” | Value added tax (“VAT” Sales revenue represents the invoiced value of goods, net of VAT. The VAT is based on gross sales price and VAT rates range up to 17% (starting from May 1, 2018, VAT rate was lowered to 16%, and starting from April 1, 2019, VAT rate was further lowered to 13%), For export sales, VAT is not imposed on gross sales price, but the VAT related to purchasing raw materials is refunded after the export is completed. BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) As of September 30, 2021, the Company had large VAT tax payable of approximately $ 3.3 3.3 |
Employee Defined Contribution Plan | Employee Defined Contribution Plan The Company’s subsidiaries in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund are provided to eligible full-time employees. The relevant labor regulations require the Company’s subsidiaries in the PRC to pay the local labor and social welfare authorities monthly contributions based on the applicable benchmarks and rates stipulated by the local government. The contributions to the plan are expensed as incurred. Employee social security and welfare benefits included as expenses in the accompanying consolidated statements of income and comprehensive income amounted to $ 54,189 30,724 68,128 |
Share Based Compensation | Share Based Compensation On June 23, 2020, the Company entered into consulting service agreements with three third-party consultants (collectively the “Consultants”), pursuant to which, the Consultants will provide public listing related consulting services to the Company in connection with the Company’s IPO. The Company issued 633,333 633,333 The Company applied ASC 718 and related interpretations in accounting for measuring the cost of share-based compensation over the period during which the consultants are required to provide services in exchange for the issued shares. For the years ended September 30, 2021, 2020 and 2019, $ 422,221 211,112 Nil Pursuant to the Director Service Agreements with the Company’s independent directors and following the completion of the Company’s IPO, on June 23, 2021, the Company granted stock options to three independent directors to purchase an aggregate of 36,000 0.0001 0.01 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Earnings per Share | Earnings per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the year ended September 30, 2021, 36,000 101,200 The following table sets forth the computation of basic and diluted earnings per share for the years ended September 30, 2021, 2020 and 2019: SCHEDULE OF EARNINGS PER SHARE For the Years ended September 30, 2021 2020 2019 Numerator: Net income attributable to ordinary shareholders $ 4,590,803 $ 3,026,673 $ 2,573,803 Denominator: Weighted-average number of ordinary shares outstanding – basic 6,615,833 5,210,649 5,166,667 Outstanding options 35,967 - - Outstanding warrants 54,435 - - Potentially dilutive shares from outstanding options and warrants 90,402 - - Weighted-average number of ordinary shares outstanding – diluted 6,706,235 5,210,649 5,166,667 Earnings per share – basic $ 0.69 $ 0.58 $ 0.50 Earnings per share – diluted $ 0.68 $ 0.58 $ 0.50 |
Comprehensive income | Comprehensive income Comprehensive income consists of two components, net income and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to US$ is reported in other comprehensive income (loss) in the consolidated statements of income and comprehensive income. |
Statement of Cash Flows | Statement of Cash Flows In accordance with ASC 230, “Statement of Cash Flows”, cash flows from the Company’s operations are formulated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. |
Segment Reporting | Segment Reporting The Company uses the management approach in determining reportable operating segments. The management approach considers the internal reporting used by the Company’s chief operating decision maker for making operating decisions about the allocation of resources of the segment and the assessment of its performance in determining the Company’s reportable operating segments. Management has determined that the Company has one operating segment (See Note 17). BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recent Adopted Accounting Pronouncements In August 2018, the FASB Accounting Standards Board issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019, with early adoption permitted for any removed or modified disclosures. The removed and modified disclosures were adopted on a retrospective basis and the new disclosures were adopted on a prospective basis. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. On October 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases, using the modified retrospective basis and did not restate comparative periods as permitted under ASU 2018-11. ASC 842 requires that lessees recognize ROU assets and lease liabilities calculated based on the present value of lease payments for all lease agreements with terms that are greater than twelve months. ASC 842 distinguishes leases as either a finance lease or an operating lease that affects how the leases are measured and presented in the statement of operations and statement of cash flows. Upon the adoption of the new guidance on October 1, 2020, the Company recognized operating lease right of use assets and operating lease liabilities of approximately $ 0.2 |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASU 2016-13 was subsequently amended by ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10 and ASU 2020-02. For public entities, ASU 2016-13 and its amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. For all other entities, this guidance and its amendments will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. As an emerging growth company, the Company plans to adopt this guidance effective October 1, 2023. The Company does not expect the adoption of the new guidance to have a significant impact on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes. ASU 2019-12 is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years, with early adoption permitted. The Company does not expect the adoption of the new guidance to have a significant impact on its consolidated financial statements. In October 2020, the FASB issued ASU 2020-10, “Codification Improvements to Subtopic 205-10, presentation of financial statements”. The amendments in this Update improve the codification by ensuring that all guidance that requires or provides an option for an entity to provide information in the notes to financial statements is codified in the disclosure section of the codification. That reduce the likelihood that the disclosure requirement would be missed. ASU 2020-10 is effective for the Company for annual and interim reporting periods beginning January 1, 2022. Early application of the amendments is permitted for any annual or interim period for which financial statements are available to be issued. The amendments in this Update should be applied retrospectively. An entity should apply the amendments at the beginning of the period that includes the adoption date. The Company is currently evaluating the impact of this new standard on Company’s consolidated financial statements and related disclosures. |
ORGANIZATION AND BUSINESS DES_2
ORGANIZATION AND BUSINESS DESCRIPTION (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SCHEDULE OF SUBSIDIARIES COMPANY | Details of the subsidiaries of the Company as of September 30, 2021 were set out below: SCHEDULE OF SUBSIDIARIES COMPANY Name of Entity Date of Place of % of Principal Activities Bon Natural Life December 11, 2019 Cayman Islands Parent, 100 Investment holding Tea Essence January 9, 2020 Hong Kong 100 Investment holding Xi’an CMIT April 9, 2020 Xi.an City, PRC 100 WOFE, Investment holding Xi’an Youpincui September 8, 2021 Xi.an City, PRC 100 WOFE, Investment holding VIE of the Company: Xi’an App- Chem Bio (Tech) April 23, 2006 Xi’an City, PRC VIE General administration and sales of the Company’s products to customers Bon Operating Companies (owned by VIE) App-Chem Health April 17, 2006 Tongchuan City, PRC 100 Registered owner of land with an area of 12,904 square meters, no other business activities App-Chem Ag-tech April 19, 2013 Dali County, PRC 100 Product manufacturing Xi’an YH September 15, 2009 Xi.an City, PRC 100 Research and development of product App-Chem Guangzhou April 27, 2018 Guangzhou City, PRC 100 Raw material purchase Tongchuan DT May 22, 2017 Tongchuan City, PRC 100 Product manufacturing Gansu BMK March 11, 2020 Jinquan City, PRC 100 Raw material purchase Xi’an DT April 24, 2015 Xi’an City, PRC 75 Research and development of product Tianjin YHX September 16, 2019 Tianjin City, PRC 51 Raw material purchase |
SCHEDULE OF FINANCIAL STATEMENT AMOUNTS AND BALANCES OF VIE | SCHEDULE OF FINANCIAL STATEMENT AMOUNTS AND BALANCES OF VIE September 30, 2021 September 30, 2020 Current assets $ 14,860,224 $ 10,840,214 Non-current assets 20,735,714 14,362,015 Total assets $ 35,595,938 $ 25,202,229 Current liabilities $ 7,283,758 $ 11,696,969 Non-current liabilities 2,349,188 2,482,251 Total liabilities $ 9,632,946 $ 14,179,220 For the years ended September 30, 2021 2020 2019 Revenue $ 25,494,564 $ 18,219,959 $ 16,396,018 Net income $ 4,902,246 $ 3,098,317 $ 2,562,636 BON NATURAL LIFE LIMITED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION (continued) For the years ended September 30, 2021 2020 2019 Net cash provided by operating activities $ 4,437,583 $ 2,643,076 $ 7,104,822 Net cash used in investing activities (6,443,745 ) (3,003,043 ) (8,429,958 ) Net cash provided by financing activities $ 3,493,925 $ 112,492 $ 804,680 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SCHEDULE OF SHORT-TERM INVESTMENT | SCHEDULE OF SHORT-TERM INVESTMENT September 30, 2021 September 30, 2020 Beginning balance $ - $ - Add: purchase wealth management financial products 2,159,920 - Less: proceeds received upon maturity of short-term investments (470,082 ) - Foreign currency translation adjustments 13,476 - Ending balance of short-term investments $ 1,703,314 $ - |
SCHEDULE OF USEFUL LIVES OF PROPERTY, PLANT AND EQUIPMENT | Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment is provided using the straight-line method over their expected useful lives, as follows: SCHEDULE OF USEFUL LIVES OF PROPERTY, PLANT AND EQUIPMENT Useful life Buildings 20 Machinery and equipment 5 10 Automobiles 8 Office and electric equipment 3 5 |
SCHEDULE OF CURRENCY EXCHANGE RATES | The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: SCHEDULE OF CURRENCY EXCHANGE RATES September 30, 2021 September 30, 2020 September 30, 2019 Period-end spot rate US$ 1 6.4580 US$ 1 6.8033 US$ 1 7.1383 Average rate US$ 1 6.5095 US$ 1 7.0066 US$ 1 6.8767 |
SCHEDULE OF EARNINGS PER SHARE | The following table sets forth the computation of basic and diluted earnings per share for the years ended September 30, 2021, 2020 and 2019: SCHEDULE OF EARNINGS PER SHARE For the Years ended September 30, 2021 2020 2019 Numerator: Net income attributable to ordinary shareholders $ 4,590,803 $ 3,026,673 $ 2,573,803 Denominator: Weighted-average number of ordinary shares outstanding – basic 6,615,833 5,210,649 5,166,667 Outstanding options 35,967 - - Outstanding warrants 54,435 - - Potentially dilutive shares from outstanding options and warrants 90,402 - - Weighted-average number of ordinary shares outstanding – diluted 6,706,235 5,210,649 5,166,667 Earnings per share – basic $ 0.69 $ 0.58 $ 0.50 Earnings per share – diluted $ 0.68 $ 0.58 $ 0.50 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Credit Loss [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE, NET | Accounts receivable, net, consists of the following: SCHEDULE OF ACCOUNTS RECEIVABLE, NET September 30, 2021 September 30, 2020 Accounts receivable $ 6,167,498 $ 5,864,040 Less: allowance for doubtful accounts (14,691 ) (93,032 ) Accounts receivable, net $ 6,152,807 $ 5,771,008 |
SCHEDULE OF ACCOUNTS RECEIVABLE AND SUBSEQUENT COLLECTION BY AGING BUCKET | The following table summarizes the Company’s accounts receivable and subsequent collection by aging bucket: SCHEDULE OF ACCOUNTS RECEIVABLE AND SUBSEQUENT COLLECTION BY AGING BUCKET Accounts Receivable by aging bucket Balance as of September 30, 2021 Subsequent collection % of subsequent collection Less than 3 months $ 5,030,184 $ 5,028,868 100.0 % From 4 to 6 months 1,119,077 1,119,077 100.0 % From 7 to 9 months 1,487 1,487 100.0 % From 10 to 12 months 1,036 805 77.7 % Over 1 year 15,714 1,190 7.6 % Total gross accounts receivable 6,167,498 6,151,427 99.7 % Allowance for doubtful accounts (14,691 ) - Accounts Receivable, net $ 6,152,807 $ 6,151,427 99.9 % |
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS | Allowance for doubtful accounts movement is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS September 30, 2021 September 30, 2020 Beginning balance $ 93,032 $ 73,386 Additions 16,891 15,569 Write-off uncollectible balance (99,548 ) - Foreign currency translation adjustments 4,316 4,077 Ending balance $ 14,691 $ 93,032 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES | Inventories, net, consist of the following: SCHEDULE OF INVENTORIES September 30, 2021 September 30, 2020 Raw materials $ 555,321 $ 246,383 Finished goods 1,189,131 1,209,545 Inventory valuation allowance (147,960 ) (439,486 ) Total inventory, net $ 1,596,492 $ 1,016,442 |
ADVANCES TO SUPPLIERS, NET (Tab
ADVANCES TO SUPPLIERS, NET (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Advances To Suppliers Net | |
SCHEDULE OF ADVANCES TO SUPPLIERS | Advances to suppliers, net, consist of the following: SCHEDULE OF ADVANCES TO SUPPLIERS September 30, 2021 September 30, 2020 Advances to suppliers for inventory raw materials $ 4,094,312 $ 3,504,486 Less: allowance for doubtful accounts - (13,141 ) Advances to suppliers, net $ 4,094,312 $ 3,491,145 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY, PLANT, AND EQUIPMENT | Property, plant and equipment, net, consists of the following: SCHEDULE OF PROPERTY, PLANT, AND EQUIPMENT September 30, 2021 September 30, 2020 Buildings $ 1,065,736 $ 601,408 Machinery, equipment and furniture 2,037,311 1,920,530 Motor Vehicles 222,679 175,117 Construction-in-progress (“CIP”) (1) 17,555,078 12,832,806 Subtotal 20,880,804 15,529,861 Less: accumulated depreciation (1,652,162 ) (1,357,898 ) Property, plant and equipment, net $ 19,228,642 $ 14,171,963 |
SCHEDULE OF FUTURE MINIMUM CAPITAL EXPENDITURES ON THE CONSTRUCTION-IN-PROGRESS | As of September 30, 2021, future minimum capital expenditures on the Company’s two CIP projects are estimated as follows: SCHEDULE OF FUTURE MINIMUM CAPITAL EXPENDITURES ON THE CONSTRUCTION-IN-PROGRESS Years ending September 30, Tongchuan CIP Project Yumen CIP Project Total 2022 $ 774,234 $ 1,548,467 $ 2,322,701 2023 493,563 1,300,712 1,794,275 2024 - - - 2025 - - - 2026 706,101 247,755 953,856 Total $ 1,973,898 $ 3,096,934 $ 5,070,832 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS | Intangible assets, net mainly consist of the following: SCHEDULE OF INTANGIBLE ASSETS September 30, 2021 September 30, 2020 Land use rights $ 474,731 $ 193,168 Less: accumulated amortization (63,675 ) (52,175 ) Land use rights, net $ 411,056 $ 140,993 |
SCHEDULE OF AMORTIZATION EXPENSES | Amortization expense was $ 8,641 4,070 4,147 SCHEDULE OF AMORTIZATION EXPENSES Years ending September 30, Amortization expense 2022 $ 9,833 2023 9,833 2024 9,833 2025 9,833 2026 9,833 Thereafter 361,891 Total $ 411,056 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF SHORT-TERM LOANS | (a) Short-term loans: SCHEDULE OF SHORT-TERM LOANS September 30, 2021 September 30, 2020 Xi’an Guosen Micro-Credit Co., Ltd. (“Guosen”) (1) $ - $ 279,276 Xi ‘an Xinchang Micro-lending Co. Ltd. (“Xinchang”) (2) 12,904 110,241 China Construction Bank (“CCB’) (3) 28,477 17,640 Bohai Bank (4) - 440,962 Huaxia Bank (5) - 440,962 Total short-term loans $ 41,381 $ 1,289,081 |
SCHEDULE OF LONG -TERM LOANS | (b) Long-term loans: SCHEDULE OF LONG -TERM LOANS September 30, 2021 September 30, 2020 Xi’an Investment Holding Co., Ltd. (6) $ - $ 2,204,812 Xi’an High-Tech Emerging Industry Investment Fund Partnership (7) 1,238,774 1,175,900 Webank Co., Ltd. (8) 156,377 34,910 Huaxia Bank (9) 743,264 293,975 Qishang Bank (10) 387,117 - Webank Co., Ltd. (11) 96,005 - Total 2,621,537 3,709,597 Less: current portion of long-term loans (448,005 ) (1,227,346 ) Total long-term loans $ 2,173,532 $ 2,482,251 |
SCHEDULE OF LINE OF CREDIT | As of the date of this filing, the Company had the availability to borrow an aggregate of approximately $ 5.9 38 SCHEDULE OF LINE OF CREDIT Name of financial institution: Amount Huaxia Bank $ 1,548,467 Qishang Bank 1,548,467 Bohai Bank 2,013,007 SPD Bank 774,234 Total $ 5,884,175 |
SCHEDULE OF THIRD PARTY LOANS | (c) Third party loans SCHEDULE OF THIRD PARTY LOANS September 30, 2021 September 30, 2020 Wei Wang $ - $ 440,962 Shaanxi Keyi Technology Co. Ltd. - 73,494 Biyun Xue - 9,775 Xi ‘an Kaimei Medical Technology Co., Ltd. - 166,096 Total third-party loans $ - $ 690,327 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF DUE TO RELATED PARTIES | SCHEDULE OF DUE TO RELATED PARTIES (a) Due to related parties Related party relationship September 30, 2021 September 30, 2020 Shaanxi Meishengyuang Bio-Technoloy Co., Ltd 5.5% shareholder of Xi’an App-chem $ - $ 738,864 Wenhu Guo Senior Management of the Company 3,376 368,145 Yongwei Hu Chief Executive Officer and Controlling shareholder of the Company - 1,208,337 Jing Liu Wife of the controlling shareholder 35,615 4,410 Sheying Wang Senior Management of the Company 3,407 3,234 Yuantao Wang 49% shareholder of Tianjin YHX 202,706 - Total due to related parties $ 245,104 $ 2,322,990 |
TAXES (Tables)
TAXES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF EFFECTIVE TAX RATE | The following table reconciles the China statutory rates to the Company’s effective tax rate for the years ended September 30, 2021, 2020 and 2019: SCHEDULE OF EFFECTIVE TAX RATE For the Years Ended September 30, 2021 2020 2019 PRC statutory income tax rate 25.0 % 25.0 % 25.0 % Effect of income tax holiday (9.5 )% (10.0 )% (10.0 )% Permanent difference 0.5 % 0.0 % 0.1 % Research and development deduction (3.4 )% (0.4 )% (1.9 )% Change in valuation allowance 2.5 % 0.6 % 1.1 % Effective tax rate 15.1 % 15.2 % 14.3 % |
SCHEDULE OF COMPONENTS OF THE INCOME TAX PROVISION (BENEFIT) | The components of the income tax provision (benefit) are as follows: SCHEDULE OF COMPONENTS OF THE INCOME TAX PROVISION (BENEFIT) For the Years Ended September 30, 2021 2020 2019 Current tax provision: Cayman Islands $ - $ - $ - Hong Kong - - - China 791,822 564,013 432,343 Sub-total 791,822 564,013 432,343 Deferred tax provision (benefit): Cayman Islands - - Hong Kong - - China 29,109 (7,751 ) (5,149 ) Sub-total 29,109 (7,751 ) (5,149 ) Income tax provision $ 820,931 $ 556,262 $ 427,194 |
SCHEDULE OF DEFERRED TAX ASSETS | The Company’s deferred tax assets are comprised of the following: SCHEDULE OF DEFERRED TAX ASSETS September 30, 2021 September 30, 2020 Deferred tax assets derived from allowance for doubtful accounts and net operating losses (“NOL”) $ 237,696 $ 370,184 Less: valuation allowance (215,354 ) (321,125 ) Deferred tax assets $ 22,342 $ 49,059 |
SCHEDULE OF TAXES PAYABLE | Taxes payable consist of the following: SCHEDULE OF TAXES PAYABLE September 30, 2021 September 30, 2020 Income tax payable $ 1,691,007 $ 850,834 Value added tax payable 3,262,532 3,463,146 Other taxes 98,479 88,645 Total taxes payable $ 5,052,018 $ 4,402,625 |
CAPITAL LEASE LIABILITIES (Tabl
CAPITAL LEASE LIABILITIES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Capital Lease Liabilities | |
SCHEDULE OF MATURITY FINANCE LEASE LIABILITIES | The maturities of the Company’s finance lease liabilities are as follows: SCHEDULE OF MATURITY FINANCE LEASE LIABILITIES US$ Year Ending September 30, 2022 $ 176,525 2023 29,421 Total $ 205,946 |
OPERATING LEASE (Tables)
OPERATING LEASE (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Operating Lease | |
SCHEDULE OF BALANCE SHEET INFORMATION RELATED OPERATING LEASE | Balance sheet information related to the operating lease is as follows: SCHEDULE OF BALANCE SHEET INFORMATION RELATED OPERATING LEASE September 30, 2021 Operating lease assets: Operating lease right of use assets $ 201,007 Total operating lease assets 201,007 Operating lease obligations: Current operating lease liabilities 62,871 Non-current operating lease liabilities 146,703 Total operating lease obligations $ 209,574 |
SCHEDULE OF WEIGHTED-AVERAGE OF OPERATING LEASE | The weighted-average remaining lease term and the weighted-average discount rate of leases are as follows: SCHEDULE OF WEIGHTED-AVERAGE OF OPERATING LEASE September 30, 2021 Weighted-average remaining lease term 2.9 Weighted-average discount rate 4.75 % |
SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITIES | The following table summarizes the maturity of operating lease liabilities as of September 30, 2021: SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITIES Year ending September 30, US$ 2022 $ 71,414 2023 78,553 2024 69,629 2025 5,806 Total lease payments 225,402 Less: imputed interest (15,828 ) Total lease liabilities $ 209,574 |
SHAREHOLDERS_ EQUITY (Tables)
SHAREHOLDERS’ EQUITY (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
SCHEDULE OF WARRANT ACTIVITY | A summary of warrants activity for the years ended September 30, 2021 and 2020 was as follows: SCHEDULE OF WARRANT ACTIVITY Number of warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Term Fair Value Outstanding, September 30, 2020 - - - - Granted 101,200 $ 5.00 - $ - Forfeited - - - - Exercised - - - - Outstanding, September 30, 2021 101,200 $ 5.00 4.75 $ - Exercisable, September 30, 2021 101,200 $ 5.00 4.75 $ - |
SCHEDULE OF NON-CONTROLLING INTEREST | SCHEDULE OF NON-CONTROLLING INTEREST Xi’an DT Tianjin YHX Total As of September 30, 2020 $ 492,753 $ 13,979 $ 506,732 Non-controlling interest, beginning $ 492,753 $ 13,979 $ 506,732 Net income attributable to non-controlling interest (10,370 ) 29,020 18,650 Foreign currency translation adjustment 654 1,829 2,482 As of September 30, 2021 $ 483,037 $ 44,828 $ 527,865 Non-controlling interest, ending $ 483,037 $ 44,828 $ 527,865 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SUMMARY OF STOCK OPTION | The following table summarizes the Company’s stock option activities: SUMMARY OF STOCK OPTION Number of options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Fair Value Outstanding, September 30, 2020 - - - - Granted 36,000 $ 0.01 - $ 179,640 Forfeited - - - - Exercised - - - - Outstanding, September 30, 2021 36,000 $ 0.01 0.75 $ 179,640 Exercisable, September 30, 2021 9,000 $ 0.01 0.75 $ 44,910 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SEGMENT REPORTING REVENUE BY REGION | Revenue by region SCHEDULE OF SEGMENT REPORTING REVENUE BY REGION For Years ended September 30, 2021 2020 2019 PRC $ 23,704,259 $ 15,461,801 $ 11,192,324 Overseas 1,790,305 2,758,158 5,203,694 Total revenue $ 25,494,564 $ 18,219,959 $ 16,396,018 |
SCHEDULE OF SEGMENT REPORTING REVENUE BY PRODUCT CATEGORIES | The summary of our total revenues by product categories for the years ended September 30, 2021, 2020 and 2019 was as follows: SCHEDULE OF SEGMENT REPORTING REVENUE BY PRODUCT CATEGORIES For Years ended September 30, 2021 2020 2019 Fragrance compounds $ 12,744,029 $ 7,879,300 $ 6,738,274 Health supplements (solid drinks) 6,655,982 3,887,096 4,342,490 Bioactive food ingredients 6,094,553 6,453,563 5,315,254 Total revenue $ 25,494,564 $ 18,219,959 $ 16,396,018 |
CONDENSED FINANCIAL INFORMATI_2
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
SCHEDULE OF CONDENSED BALANCE SHEET | SCHEDULE OF CONDENSED BALANCE SHEET September 30, 2021 September 30, 2020 ASSETS Current assets Cash $ 245,081 $ - Acquisition deposit 1,000,000 - Due from subsidiaries and VIEs 10,000,000 - Prepaid expenses and other current assets 2,600 - Total current assets 11,247,681 - Non-current assets Investment in subsidiaries and VIEs 14,759,203 10,516,277 Total assets $ 26,006,884 $ 10,516,277 LIABILITIES AND SHAREHOLDERS’ EQUITY LIABILITIES $ - $ - COMMITMENTS AND CONTINGENCIES - SHAREHOLDERS’ EQUITY Ordinary shares, $ 0.0001 500,000,000 8,330,000 5,800,000 $ 833 $ 580 Additional paid-in capital 15,540,433 5,251,205 Retained earnings 10,243,397 5,652,594 Accumulated other comprehensive income (loss) 222,221 (388,102 ) Total Bon Natural Life Limited shareholders’ equity 26,006,884 10,516,277 Total liabilities and Bon Natural Life Limited shareholders’ equity $ 26,006,884 $ 10,516,277 |
SCHEDULE OF CONDENSED INCOME STATEMENT | SCHEDULE OF CONDENSED INCOME STATEMENT 2021 2020 2019 For the Years Ended September 30, 2021 2020 2019 General and administrative expenses $ (68,722 ) $ - $ - Interest income 13 - - Equity in earnings of subsidiaries and VIEs 4,659,512 3,026,673 2,573,803 NET INCOME 4,590,803 3,026,673 2,573,803 Foreign currency translation adjustment 610,323 440,141 (281,897 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED $ 5,201,126 $ 3,466,814 $ 2,291,906 |
SCHEDULE OF CONDENSED CASH FLOW STATEMENT | SCHEDULE OF CONDENSED CASH FLOW STATEMENT 2021 2020 2019 For the Years Ended September 30, 2021 2020 2019 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 4,590,803 $ 3,026,673 $ 2,573,803 Adjustments to reconcile net cash flows from operating activities: - Equity in earnings of subsidiaries and VIEs (4,659,512 ) (3,026,673 ) (2,573,803 ) Stock-based compensation 44,910 - - Changes in operating assets and liabilities: Prepaid expenses and other current assets (2,600 ) - - Net cash used in operating activities (26,399 ) - - CASH FLOWS FROM INVESTING ACTIVITIES: Payment of acquisition deposit (1,000,000 ) - - Net cash used in investing activities (1,000,000 ) - - CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Issuance of Ordinary Shares 11,271,480 - - Cash lent to subsidiaries and VIE (10,000,000 ) - - Net cash provided by (used in) financing activities 1,271,480 - - CHANGES IN CASH AND RESTRICTED CASH 245,081 - - CASH AND RESTRICTED CASH, beginning of period - - - CASH AND RESTRICTED CASH, end of period $ 245,081 $ - $ - |
SCHEDULE OF SUBSIDIARIES COMPAN
SCHEDULE OF SUBSIDIARIES COMPANY (Details) | 12 Months Ended | ||||
Sep. 30, 2021 | Mar. 11, 2020 | Jan. 09, 2020 | Sep. 16, 2019 | Apr. 24, 2015 | |
Bon Natural Life [Member] | |||||
Date of Incorporation | Dec. 11, 2019 | ||||
Place of Incorporation | Cayman Islands | ||||
% of Ownership | 100.00% | ||||
Principal activities | Investment holding | ||||
Tea Essence Limited [Member] | |||||
Date of Incorporation | Jan. 9, 2020 | ||||
Place of Incorporation | Hong Kong | ||||
% of Ownership | 100.00% | 100.00% | |||
Principal activities | Investment holding | ||||
Xi'an CMIT [Member] | |||||
Date of Incorporation | Apr. 9, 2020 | ||||
Place of Incorporation | Xi.an City, PRC | ||||
% of Ownership | 100.00% | ||||
Principal activities | WOFE, Investment holding | ||||
Xian Youpincui [Member] | |||||
Date of Incorporation | Sep. 8, 2021 | ||||
Place of Incorporation | Xi.an City, PRC | ||||
% of Ownership | 100.00% | ||||
Principal activities | WOFE, Investment holding | ||||
Xian App Chem Bio Tech [Member] | |||||
Date of Incorporation | Apr. 23, 2006 | ||||
Place of Incorporation | Xi’an City, PRC | ||||
Principal activities | General administration and sales of the Company’s products to customers | ||||
App Chem Health [Member] | |||||
Date of Incorporation | Apr. 17, 2006 | ||||
Place of Incorporation | Tongchuan City, PRC | ||||
% of Ownership | 100.00% | 100.00% | |||
Principal activities | Registered owner of land with an area of 12,904 square meters, no other business activities | ||||
App-Chem Ag-tech [Member] | |||||
Date of Incorporation | Apr. 19, 2013 | ||||
Place of Incorporation | Dali County, PRC | ||||
% of Ownership | 100.00% | ||||
Principal activities | Product manufacturing | ||||
Xian YH [Member] | |||||
Date of Incorporation | Sep. 15, 2009 | ||||
Place of Incorporation | Xi.an City, PRC | ||||
% of Ownership | 100.00% | ||||
Principal activities | Research and development of product | ||||
App-Chem Guangzhou [Member] | |||||
Date of Incorporation | Apr. 27, 2018 | ||||
Place of Incorporation | Guangzhou City, PRC | ||||
% of Ownership | 100.00% | ||||
Principal activities | Raw material purchase | ||||
Tongchuan DT [Member] | |||||
Date of Incorporation | May 22, 2017 | ||||
Place of Incorporation | Tongchuan City, PRC | ||||
% of Ownership | 100.00% | ||||
Principal activities | Product manufacturing | ||||
Gansu BMK [Member] | |||||
Date of Incorporation | Mar. 11, 2020 | ||||
Place of Incorporation | Jinquan City, PRC | ||||
% of Ownership | 100.00% | ||||
Principal activities | Raw material purchase | ||||
Xi'an DT [Member] | |||||
Date of Incorporation | Apr. 24, 2015 | ||||
Place of Incorporation | Xi’an City, PRC | ||||
% of Ownership | 75.00% | 75.00% | |||
Principal activities | Research and development of product | ||||
Tianjin YHX [Member] | |||||
Date of Incorporation | Sep. 16, 2019 | ||||
Place of Incorporation | Tianjin City, PRC | ||||
% of Ownership | 51.00% | 51.00% | |||
Principal activities | Raw material purchase |
SCHEDULE OF FINANCIAL STATEMENT
SCHEDULE OF FINANCIAL STATEMENT AMOUNTS AND BALANCES OF VIE (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Current assets | $ 16,549,752 | $ 10,840,214 | |
Total assets | 36,412,799 | 25,202,229 | |
Current liabilities | 7,528,862 | 11,696,969 | |
Total liabilities | 9,878,050 | 14,179,220 | |
Revenue | 25,494,564 | 18,219,959 | $ 16,396,018 |
Net income | 4,609,453 | 3,098,317 | 2,562,636 |
Net cash provided by operating activities | 4,053,124 | 2,643,076 | 7,104,823 |
Net cash used in investing activities | (7,443,745) | (3,003,043) | (8,429,958) |
Net cash provided by financing activities | 5,352,682 | 112,492 | 804,680 |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Current assets | 14,860,224 | 10,840,214 | |
Non-current assets | 20,735,714 | 14,362,015 | |
Total assets | 35,595,938 | 25,202,229 | |
Current liabilities | 7,283,758 | 11,696,969 | |
Non-current liabilities | 2,349,188 | 2,482,251 | |
Total liabilities | 9,632,946 | 14,179,220 | |
Revenue | 25,494,564 | 18,219,959 | 16,396,018 |
Net income | 4,902,246 | 3,098,317 | 2,562,636 |
Net cash provided by operating activities | 4,437,583 | 2,643,076 | 7,104,822 |
Net cash used in investing activities | (6,443,745) | (3,003,043) | (8,429,958) |
Net cash provided by financing activities | $ 3,493,925 | $ 112,492 | $ 804,680 |
ORGANIZATION AND BUSINESS DES_3
ORGANIZATION AND BUSINESS DESCRIPTION (Details Narrative) | Jul. 02, 2021USD ($)$ / sharesshares | Jun. 28, 2021$ / sharesshares | Sep. 30, 2021USD ($)$ / shares | Sep. 28, 2021 | Sep. 27, 2021CNY (¥) | Sep. 08, 2021 | Sep. 30, 2020$ / shares | Mar. 11, 2020 | Jan. 09, 2020 | Dec. 11, 2019$ / shares | Sep. 16, 2019 | Apr. 24, 2015 | Apr. 23, 2006 |
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||
Gross proceeds from issuance initial public offering and over-allotment shares | $ | $ 9,822,350 | ||||||||||||
IPO [Member] | |||||||||||||
Ordinary shares, shares issued | shares | 2,200,000 | ||||||||||||
Ordinary shares, par value | $ 0.0001 | ||||||||||||
Shares issued, price per share | $ 5 | ||||||||||||
Over-Allotment Option [Member] | |||||||||||||
Ordinary shares, shares issued | shares | 330,000 | ||||||||||||
Ordinary shares, par value | $ 0.0001 | ||||||||||||
Shares issued, price per share | $ 5 | ||||||||||||
Initial Public offering And Over Allotment Option [Member] | |||||||||||||
Gross proceeds from issuance initial public offering and over-allotment shares | $ | $ 12,650,000 | ||||||||||||
Underwriting discounts and other related expenses | $ | $ 11,300,000 | ||||||||||||
Tea Essence Limited [Member] | |||||||||||||
Equity ownership | 100.00% | 100.00% | |||||||||||
Xian App Chem [Member] | |||||||||||||
Equity ownership | 100.00% | ||||||||||||
Xi'an DT [Member] | |||||||||||||
Equity ownership | 75.00% | 75.00% | |||||||||||
Tianjin YHX [Member] | |||||||||||||
Equity ownership | 51.00% | 51.00% | |||||||||||
App Chem Health [Member] | |||||||||||||
Equity ownership | 100.00% | 100.00% | |||||||||||
Balikun [Member] | |||||||||||||
Disposal operation, assets | ¥ | ¥ 1 | ||||||||||||
Tianjin Yonghexiang Bio(Tech) Co., Ltd [Member] | |||||||||||||
Equity ownership | 100.00% | ||||||||||||
App ChemBio Tech Co. Ltd. [Member] | |||||||||||||
Equity ownership | 100.00% |
SCHEDULE OF SHORT-TERM INVESTME
SCHEDULE OF SHORT-TERM INVESTMENT (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accounting Policies [Abstract] | |||
Beginning balance | |||
Add: purchase wealth management financial products | 2,159,920 | ||
Less: proceeds received upon maturity of short-term investments | (470,082) | ||
Foreign currency translation adjustments | 13,476 | ||
Ending balance of short-term investments | $ 1,703,314 |
SCHEDULE OF USEFUL LIVES OF PRO
SCHEDULE OF USEFUL LIVES OF PROPERTY, PLANT AND EQUIPMENT (Details) | 12 Months Ended |
Sep. 30, 2021 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Automobiles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 8 years |
Office and Electric Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Office and Electric Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
SCHEDULE OF CURRENCY EXCHANGE R
SCHEDULE OF CURRENCY EXCHANGE RATES (Details) | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Period-End Spot Rate [Member] | |||
Debt Instrument [Line Items] | |||
Exchange rate | 1 | 1 | 1 |
Period-End Spot Rate [Member] | RMB [Member] | |||
Debt Instrument [Line Items] | |||
Exchange rate | 6.4580 | 6.8033 | 7.1383 |
Average Rate [Member] | |||
Debt Instrument [Line Items] | |||
Exchange rate | 1 | 1 | 1 |
Average Rate [Member] | RMB [Member] | |||
Debt Instrument [Line Items] | |||
Exchange rate | 6.5095 | 7.0066 | 6.8767 |
SCHEDULE OF EARNINGS PER SHARE
SCHEDULE OF EARNINGS PER SHARE (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accounting Policies [Abstract] | |||
Net income attributable to ordinary shareholders | $ 4,590,803 | $ 3,026,673 | $ 2,573,803 |
Weighted-average number of ordinary shares outstanding – basic | 6,615,833 | 5,210,649 | 5,166,667 |
Outstanding options | 35,967 | ||
Outstanding warrants | 54,435 | ||
Potentially dilutive shares from outstanding options and warrants | 90,402 | ||
Weighted-average number of ordinary shares outstanding – diluted | 6,706,235 | 5,210,649 | 5,166,667 |
Earnings per share – basic | $ 0.69 | $ 0.58 | $ 0.50 |
Earnings per share – diluted | $ 0.68 | $ 0.58 | $ 0.50 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ / shares in Units, ¥ in Millions | Jun. 23, 2021$ / sharesshares | May 10, 2021USD ($)ft² | Jun. 23, 2020USD ($)shares | Sep. 30, 2021USD ($)ft²$ / shares | Sep. 30, 2021USD ($)ft²$ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019USD ($)shares | Sep. 30, 2011USD ($) | Jun. 30, 2022USD ($) | Dec. 25, 2020USD ($) | Dec. 25, 2020CNY (¥) | Oct. 02, 2020USD ($) | Dec. 11, 2019$ / shares |
Uncollectable account receivable written-off | $ 99,528 | $ 99,528 | |||||||||||
Allowance for uncollectable balances | 14,691 | 14,691 | $ 93,032 | $ 73,386 | |||||||||
[custom:AllowanceForDoubtfulAccounts-0] | 13,141 | ||||||||||||
Inventory reserve | 147,960 | 147,960 | 439,486 | ||||||||||
Deferred Offering Costs | 510,079 | ||||||||||||
Short term investments | $ 565 | ||||||||||||
Estimated useful lives of intangible assets | 50 years | ||||||||||||
Land acquired | ft² | 8.2 | 4.1 | 4.1 | ||||||||||
Payments to acquire property, plant, and equipment | $ 51,878 | 31,885 | 213,634 | ||||||||||
Operating lease liabilities | $ 209,574 | 209,574 | $ 200,000 | ||||||||||
Finance lease liabilities | $ 300,000 | ¥ 2 | |||||||||||
Deferred revenue | $ 1,096,101 | 1,096,101 | 385,978 | ||||||||||
Deferred revenue, revenue recognized | 403,399 | 213,734 | 1,441,595 | ||||||||||
Research and development expense | 249,050 | 205,359 | 522,867 | ||||||||||
Advertising expenses | 25,397 | 14,264 | 51,257 | ||||||||||
Government subsidies | $ 449,972 | 362,187 | 140,295 | ||||||||||
Value added tax rate description | 17% (starting from May 1, 2018, VAT rate was lowered to 16%, and starting from April 1, 2019, VAT rate was further lowered to 13%), | ||||||||||||
Employee defined cost | $ 54,189 | 30,724 | 68,128 | ||||||||||
Share-based compensation expenses | $ 422,221 | $ 211,112 | |||||||||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||
Share price | $ / shares | $ 5 | $ 5 | |||||||||||
Antidilutive shares | shares | 90,402 | ||||||||||||
Operating lease right of use assets | $ 201,007 | $ 201,007 | |||||||||||
Operating lease liabilities | 62,871 | $ 62,871 | |||||||||||
Accounting Standards Update 2016-02 [Member] | |||||||||||||
Operating lease right of use assets | 200,000 | ||||||||||||
Operating lease liabilities | $ 200,000 | ||||||||||||
Option Shares [Member] | |||||||||||||
Antidilutive shares | shares | 36,000 | ||||||||||||
Underwriter Warrants [Member] | |||||||||||||
Antidilutive shares | shares | 101,200 | ||||||||||||
Three Independent Directors [Member] | Common Stock [Member] | |||||||||||||
Shares issued, shares | shares | 36,000 | ||||||||||||
Common stock, par value | $ / shares | $ 0.0001 | ||||||||||||
Share price | $ / shares | $ 0.01 | ||||||||||||
VAT [Member] | |||||||||||||
Income tax payable | 3,300,000 | $ 3,300,000 | |||||||||||
VAT [Member] | Subsequent Event [Member] | |||||||||||||
Unpaid income tax liabilities | $ 3,300,000 | ||||||||||||
Forecast [Member] | |||||||||||||
Unpaid income tax liabilities | $ 1,700,000 | ||||||||||||
CHINA | |||||||||||||
Income tax payable | $ 1,700,000 | $ 1,700,000 | |||||||||||
Tongchuan Cip Project [Member] | |||||||||||||
Payments to acquire property, plant, and equipment | $ 200,000 | ||||||||||||
Yumen Cip Project [Member] | |||||||||||||
Payments to acquire property, plant, and equipment | $ 300,000 | ||||||||||||
Consulting Service Agreements [Member] | Consultants [Member] | |||||||||||||
Number of shares issued for service | shares | 633,333 | ||||||||||||
Number of shares issued for service, value | $ 633,333 | ||||||||||||
Xi'an DT [Member] | |||||||||||||
Non-controlling interests rate | 25.00% | 25.00% | |||||||||||
Tianjin YHX [Member] | |||||||||||||
Non-controlling interests rate | 49.00% | 49.00% | 49.00% |
LIQUIDITY (Details Narrative)
LIQUIDITY (Details Narrative) ¥ in Millions | Dec. 06, 2021USD ($) | Jun. 30, 2021USD ($) | May 22, 2020USD ($) | Dec. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2021CNY (¥) | Dec. 06, 2021CNY (¥) | Sep. 30, 2021CNY (¥) | Dec. 31, 2020USD ($) | Jul. 22, 2020USD ($) | May 22, 2020CNY (¥) | Apr. 16, 2020USD ($) | Apr. 16, 2020CNY (¥) | Apr. 03, 2020USD ($) | Apr. 03, 2020CNY (¥) |
Line of Credit Facility [Line Items] | |||||||||||||||||
Construction in progress | $ 2,300,000 | ||||||||||||||||
Unpaid tax liabilities | 5,100,000 | ||||||||||||||||
Proceeds from initial public offering | $ 11,300,000 | 11,271,480 | |||||||||||||||
Cash on hand | 1,903,867 | 53,106 | |||||||||||||||
Short term investments | 1,703,314 | ||||||||||||||||
Accounts receivable | 6,152,807 | 5,771,008 | |||||||||||||||
Loans Payables | 690,327 | $ 690,327 | |||||||||||||||
Short-term bank loans | 41,381 | 1,289,081 | |||||||||||||||
Long-term bank loans current | 448,005 | 1,227,346 | |||||||||||||||
Long-term bank loans non-current | 2,173,532 | $ 2,482,251 | |||||||||||||||
Lines of credit | 5,884,175 | ||||||||||||||||
Line of credit borrowing capacity | 2,800,000 | ¥ 18 | |||||||||||||||
Line of credit, maximum borrowing capacity | 5,900,000 | ¥ 15 | ¥ 38 | ||||||||||||||
PRC Banks [Member] | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Loans Payables | 2,700,000 | ||||||||||||||||
Short-term bank loans | 41,381 | ||||||||||||||||
Long-term bank loans current | 400,000 | ||||||||||||||||
Long-term bank loans non-current | 2,200,000 | ||||||||||||||||
PRC Banks and Financial Institutions [Member] | Subsequent Event [Member] | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Lines of credit | $ 8,700,000 | ¥ 56 | |||||||||||||||
Huaxia Bank [Member] | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Lines of credit | 1,548,467 | ||||||||||||||||
Line of credit, maximum borrowing capacity | $ 2,300,000 | ¥ 15 | $ 2,300,000 | ¥ 15 | |||||||||||||
Huaxia Bank [Member] | Subsequent Event [Member] | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Lines of credit | $ 2,300,000 | ||||||||||||||||
Period of line of credit | 1 year | ||||||||||||||||
Bohai Bank [Member] | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Short-term bank loans | $ 3,000,000 | ||||||||||||||||
Lines of credit | 2,013,007 | ||||||||||||||||
Period of line of credit | 1 year | ||||||||||||||||
Line of credit, maximum borrowing capacity | $ 2,000,000 | ¥ 13 | |||||||||||||||
Bohai Bank [Member] | Subsequent Event [Member] | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Lines of credit | $ 2,000,000 | ||||||||||||||||
Period of line of credit | 1 year | ||||||||||||||||
Shanghai pudong development bank [Member] | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Period of line of credit | 1 year | ||||||||||||||||
Line of credit, maximum borrowing capacity | $ 1,500,000 | ¥ 10 | |||||||||||||||
Shanghai pudong development bank [Member] | Subsequent Event [Member] | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Lines of credit | $ 2,300,000 | ||||||||||||||||
Period of line of credit | 1 year | ||||||||||||||||
Qishang Bank [Member] | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Lines of credit | $ 1,548,467 | ||||||||||||||||
Qishang Bank [Member] | Subsequent Event [Member] | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Lines of credit | $ 2,000,000 | ||||||||||||||||
Period of line of credit | 3 years |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE, NET (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Credit Loss [Abstract] | ||
Accounts receivable | $ 6,167,498 | $ 5,864,040 |
Less: allowance for doubtful accounts | (14,691) | (93,032) |
Accounts receivable, net | $ 6,152,807 | $ 5,771,008 |
SCHEDULE OF ACCOUNTS RECEIVAB_2
SCHEDULE OF ACCOUNTS RECEIVABLE AND SUBSEQUENT COLLECTION BY AGING BUCKET (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Total gross accounts receivable | $ 6,167,498 | ||
Percentage of subsequent collection | 99.70% | ||
Allowance for doubtful accounts | $ (14,691) | $ (93,032) | |
Allowance for doubtful accounts | (14,691) | (93,032) | $ (73,386) |
Accounts Receivable, net | 6,152,807 | 5,771,008 | |
Accounts Receivable, net | $ 6,152,807 | $ 5,771,008 | |
% of account receivable subsequent collection | 99.90% | ||
Subsequent Collection [Member] | |||
Total gross accounts receivable | $ 6,151,427 | ||
Allowance for doubtful accounts | |||
Accounts Receivable, net | 6,151,427 | ||
Less than 3 Months [Member] | |||
Total gross accounts receivable | 5,030,184 | ||
Less than 3 Months [Member] | Subsequent Collection [Member] | |||
Total gross accounts receivable | $ 5,028,868 | ||
Percentage of subsequent collection | 100.00% | ||
From 4 to 6 Months [Member] | |||
Total gross accounts receivable | $ 1,119,077 | ||
From 4 to 6 Months [Member] | Subsequent Collection [Member] | |||
Total gross accounts receivable | $ 1,119,077 | ||
Percentage of subsequent collection | 100.00% | ||
From 7 to 9 Months [Member] | |||
Total gross accounts receivable | $ 1,487 | ||
From 7 to 9 Months [Member] | Subsequent Collection [Member] | |||
Total gross accounts receivable | $ 1,487 | ||
Percentage of subsequent collection | 100.00% | ||
From 10 to 12 Months [Member] | |||
Total gross accounts receivable | $ 1,036 | ||
From 10 to 12 Months [Member] | Subsequent Collection [Member] | |||
Total gross accounts receivable | $ 805 | ||
Percentage of subsequent collection | 77.70% | ||
Over 1 Year [Member] | |||
Total gross accounts receivable | $ 15,714 | ||
Over 1 Year [Member] | Subsequent Collection [Member] | |||
Total gross accounts receivable | $ 1,190 | ||
Percentage of subsequent collection | 7.60% |
SCHEDULE OF ALLOWANCE FOR DOUBT
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Credit Loss [Abstract] | ||
Beginning balance | $ 93,032 | $ 73,386 |
Additions | 16,891 | 15,569 |
Write-off uncollectible balance | (99,548) | |
Foreign currency translation adjustments | 4,316 | 4,077 |
Ending balance | $ 14,691 | $ 93,032 |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details Narrative) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Product Information [Line Items] | ||
Accounts receivable, net | $ 6,152,807 | $ 5,771,008 |
Account receivable, percentage | 99.90% | |
Accounts Receivable [Member] | ||
Product Information [Line Items] | ||
Accounts receivable, net | $ 6,150,000 |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 555,321 | $ 246,383 |
Finished goods | 1,189,131 | 1,209,545 |
Inventory valuation allowance | (147,960) | (439,486) |
Total inventory, net | $ 1,596,492 | $ 1,016,442 |
SCHEDULE OF ADVANCES TO SUPPLIE
SCHEDULE OF ADVANCES TO SUPPLIERS (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Advances To Suppliers Net | ||
Advances to suppliers for inventory raw materials | $ 4,094,312 | $ 3,504,486 |
Less: allowance for doubtful accounts | (13,141) | |
Advances to suppliers, net | $ 4,094,312 | $ 3,491,145 |
ADVANCES TO SUPPLIERS, NET (Det
ADVANCES TO SUPPLIERS, NET (Details Narrative) $ in Millions | 12 Months Ended |
Sep. 30, 2021USD ($) | |
Advances To Suppliers Net | |
Due from Related Parties, Current | $ 4 |
Prepaid inventory, percentage | 98.40% |
ACQUISITION DEPOSIT (Details Na
ACQUISITION DEPOSIT (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Jul. 06, 2021 | Sep. 30, 2020 | |
Business Acquisition [Line Items] | |||
Business Combination, Consideration Transferred | $ 30,000 | ||
Deposits Assets, Current | 1,000,000 | ||
Refunded amount for acquisition deposit | 1,000,000 | ||
The consulting firm Global Capital LP [Member] | |||
Business Acquisition [Line Items] | |||
Deposit Assets | 1,000,000 | $ 1,500,000 | |
Deposits Assets, Current | $ 1,500,000 |
SCHEDULE OF PROPERTY, PLANT, AN
SCHEDULE OF PROPERTY, PLANT, AND EQUIPMENT (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 20,880,804 | $ 15,529,861 |
Less: accumulated depreciation | (1,652,162) | (1,357,898) |
Property, plant and equipment, net | 19,228,642 | 14,171,963 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 1,065,736 | 601,408 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 2,037,311 | 1,920,530 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 222,679 | 175,117 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 17,555,078 | $ 12,832,806 |
SCHEDULE OF FUTURE MINIMUM CAPI
SCHEDULE OF FUTURE MINIMUM CAPITAL EXPENDITURES ON THE CONSTRUCTION-IN-PROGRESS (Details) | Sep. 30, 2021USD ($) |
Property, Plant and Equipment [Line Items] | |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | $ 2,322,701 |
Capital Leases, Future Minimum Payments Due in Two Years | 1,794,275 |
Capital Leases, Future Minimum Payments Due in Three Years | |
Capital Leases, Future Minimum Payments Due in Four Years | |
Capital Leases, Future Minimum Payments Due in Five Years | 953,856 |
Capital Leases, Future Minimum Payments Due | 5,070,832 |
Tongchuan Cip Project [Member] | |
Property, Plant and Equipment [Line Items] | |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 774,234 |
Capital Leases, Future Minimum Payments Due in Two Years | 493,563 |
Capital Leases, Future Minimum Payments Due in Three Years | |
Capital Leases, Future Minimum Payments Due in Four Years | |
Capital Leases, Future Minimum Payments Due in Five Years | 706,101 |
Capital Leases, Future Minimum Payments Due | 1,973,898 |
Yumen Cip Project [Member] | |
Property, Plant and Equipment [Line Items] | |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 1,548,467 |
Capital Leases, Future Minimum Payments Due in Two Years | 1,300,712 |
Capital Leases, Future Minimum Payments Due in Three Years | |
Capital Leases, Future Minimum Payments Due in Four Years | |
Capital Leases, Future Minimum Payments Due in Five Years | 247,755 |
Capital Leases, Future Minimum Payments Due | $ 3,096,934 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details Narrative) ¥ in Millions | 12 Months Ended | |||||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2021CNY (¥) | May 10, 2021USD ($) | May 10, 2021CNY (¥) | |
Property, Plant and Equipment [Line Items] | ||||||
Depreciation | $ 219,906 | $ 226,527 | $ 222,486 | |||
Construction in Progress, Gross | 2,300,000 | |||||
Future minimum capital expenditures on construction in progress | 17,700,000 | ¥ 114 | ||||
Yumen Cip Project [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Future minimum capital expenditures on construction in progress | 3,100,000 | 20 | $ 6,200,000 | ¥ 40 | ||
Tongchuan & Yumen CIP Project [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Construction in Progress, Gross | 17,600,000 | 113.4 | ||||
Future minimum capital expenditures on construction in progress | 5,100,000 | |||||
Future minimum capital expenditures on construction in progress next twelve months | 2,300,000 | |||||
Xian App Chem Bio Tech Co Ltd [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Construction in Progress, Gross | ¥ | ¥ 95 | |||||
Xian App Chem Bio Tech Co Ltd [Member] | RMB [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Construction in Progress, Gross | $ 14,700,000 |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Land use rights | $ 474,731 | $ 193,168 |
Less: accumulated amortization | (63,675) | (52,175) |
Land use rights, net | $ 411,056 | $ 140,993 |
SCHEDULE OF AMORTIZATION EXPENS
SCHEDULE OF AMORTIZATION EXPENSES (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 9,833 | |
2023 | 9,833 | |
2024 | 9,833 | |
2025 | 9,833 | |
2026 | 9,833 | |
Thereafter | 361,891 | |
Total | $ 411,056 | $ 140,993 |
SCHEDULE OF SHORT-TERM LOANS (D
SCHEDULE OF SHORT-TERM LOANS (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Short-term Debt [Line Items] | ||
Short-term Debt | $ 41,381 | $ 1,289,081 |
Xian Guosen Micro Credit Co Ltd [Member] | ||
Short-term Debt [Line Items] | ||
Short-term Debt | 279,276 | |
Xian Xinchang Micro Lending Co Ltd [Member] | ||
Short-term Debt [Line Items] | ||
Short-term Debt | 12,904 | 110,241 |
China Construction Bank [Member] | ||
Short-term Debt [Line Items] | ||
Short-term Debt | 28,477 | 17,640 |
Bohai Bank [Member] | ||
Short-term Debt [Line Items] | ||
Short-term Debt | 440,962 | |
Huaxia Bank [Member] | ||
Short-term Debt [Line Items] | ||
Short-term Debt | $ 440,962 |
SCHEDULE OF LONG -TERM LOANS (D
SCHEDULE OF LONG -TERM LOANS (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 2,621,537 | $ 3,709,597 |
Long-term Debt, Current Maturities | (448,005) | (1,227,346) |
Long-term Debt, Excluding Current Maturities | 2,173,532 | 2,482,251 |
Xian Investment Holding Co Ltd [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 2,204,812 | |
Xian High Tech Emerging Industry Investment Fund Partnership [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 1,238,774 | 1,175,900 |
We Bank Co Ltd [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 156,377 | 34,910 |
Huaxia Bank [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 743,264 | 293,975 |
Qishang Bank [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 387,117 | |
We Bank Co Ltd One [Membe] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 96,005 |
SCHEDULE OF LINE OF CREDIT (Det
SCHEDULE OF LINE OF CREDIT (Details) | Sep. 30, 2021USD ($) |
Line of Credit Facility [Line Items] | |
Line of Credit, Current | $ 5,884,175 |
Huaxia Bank [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit, Current | 1,548,467 |
Qishang Bank [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit, Current | 1,548,467 |
Bohai Bank [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit, Current | 2,013,007 |
S P D Bank [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit, Current | $ 774,234 |
SCHEDULE OF THIRD PARTY LOANS (
SCHEDULE OF THIRD PARTY LOANS (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Loans Payable, Current | $ 690,327 | $ 690,327 | |
Wei Wang [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Loans Payable, Current | 440,962 | ||
Shaanxi Keyi Technology Co Ltd [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Loans Payable, Current | 73,494 | ||
Biyun Xue [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Loans Payable, Current | 9,775 | ||
Xian Kaimei Medical Technology Co Ltd [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Loans Payable, Current | $ 166,096 |
DEBT (Details Narrative)
DEBT (Details Narrative) | Dec. 21, 2021CNY (¥) | Dec. 06, 2021USD ($) | Jun. 30, 2021 | Jun. 22, 2021USD ($) | Jun. 20, 2021USD ($) | Mar. 03, 2021USD ($) | Jan. 12, 2021CNY (¥) | Dec. 15, 2020USD ($) | Nov. 04, 2020USD ($) | Nov. 04, 2020CNY (¥) | Oct. 22, 2020USD ($) | Jul. 22, 2020USD ($) | Jun. 29, 2020USD ($) | Jun. 02, 2020 | May 22, 2020USD ($) | May 15, 2020USD ($) | Apr. 16, 2020USD ($) | Apr. 03, 2020USD ($) | Jan. 19, 2020USD ($) | Jun. 26, 2017USD ($) | Feb. 14, 2017USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2021CNY (¥) | Jul. 07, 2021USD ($) | Jul. 07, 2021CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 06, 2021CNY (¥) | Sep. 30, 2021CNY (¥) | Aug. 05, 2021USD ($) | Aug. 05, 2021CNY (¥) | Jul. 31, 2021USD ($) | Jul. 31, 2021CNY (¥) | Jul. 07, 2021CNY (¥) | Jun. 20, 2021CNY (¥) | Jun. 02, 2021USD ($) | Jun. 02, 2021CNY (¥) | Mar. 03, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 15, 2020CNY (¥) | Dec. 10, 2020USD ($) | Dec. 10, 2020CNY (¥) | Nov. 04, 2020CNY (¥) | Oct. 22, 2020CNY (¥) | Jul. 22, 2020CNY (¥) | Jun. 29, 2020CNY (¥) | May 22, 2020CNY (¥) | May 15, 2020CNY (¥) | Apr. 16, 2020CNY (¥) | Apr. 03, 2020CNY (¥) | Jan. 19, 2020CNY (¥) | Jan. 12, 2020USD ($) | Jun. 26, 2017CNY (¥) | Feb. 14, 2017CNY (¥) |
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank loans | $ 41,381 | $ 41,381 | $ 1,289,081 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of debt | 2,563,433 | 2,872,778 | $ 4,514,482 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit maximum borrowing capacity | 5,900,000 | 5,900,000 | ¥ 15,000,000 | ¥ 38,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long term borrowings | 2,621,537 | 2,621,537 | 3,709,597 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expenses | 417,266 | 329,102 | $ 333,190 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Payable, Current | 690,327 | $ 690,327 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Huaxia Bank [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank loans | $ 440,962 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bohai Bank [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank loans | $ 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date, description | as working capital for one year, with interest rate of 5.4% per annum and maturity date on July 21, 2021. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date | Jul. 21, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit maximum borrowing capacity | $ 2,000,000 | ¥ 13,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Period of line of credit | 1 year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit remaining borrowing capacity | $ 2,000,000 | ¥ 13,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Huaxia Bank [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date, description | June 21, 2022 | June 21, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date | Apr. 16, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 6.60% | 6.60% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit maximum borrowing capacity | $ 2,300,000 | $ 2,300,000 | ¥ 15,000,000 | ¥ 15,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt, repayment | $ 92,908 | ¥ 600,000 | ¥ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining balance | 650,000 | 650,000 | 4,200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Huaxia Bank [Member] | Huaxia Bank [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit maximum borrowing capacity | $ 500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Huaxia Bank [Member] | One Year With 9% [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit maximum borrowing capacity | $ 400,000 | $ 400,000 | ¥ 3,000,000 | ¥ 3,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Period of line of credit | 1 year | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit interest rate | 9.00% | 9.00% | 9.00% | 9.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Huaxia Bank [Member] | Three Year With 6.6% [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit maximum borrowing capacity | $ 1,800,000 | $ 1,800,000 | ¥ 12,000,000 | ¥ 12,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Period of line of credit | 3 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit interest rate | 6.60% | 6.60% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
S P D Bank [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank loans | $ 800,000 | 5,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit maximum borrowing capacity | $ 2,300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shanghai pudong development bank [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date | Jan. 9, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit maximum borrowing capacity | $ 1,500,000 | ¥ 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Period of line of credit | 1 year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit interest rate | 5.00% | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ownership percentage | 100.00% | 100.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Agreement [Member] | China Construction Bank [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank loans | ¥ 183,903 | $ 2,941 | $ 14,699 | ¥ 20,000 | ¥ 100,000 | $ 28,477 | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date, description | as working capital for one year, with maturity date on | as working capital for one year, with maturity date on May 15, 2021 | as working capital for one year, with maturity date on January 19, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date | Jan. 12, 2022 | May 15, 2021 | Jan. 19, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 4.10% | 5.00% | 4.10% | 5.00% | 3.85% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Agreement [Member] | Bohai Bank [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank loans | $ 400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 540.00% | 540.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Agreement [Member] | Huaxia Bank [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank loans | $ 400,000 | ¥ 3,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date, description | as working capital for one year, with interest rate of 9.0% per annum and maturity date on April 16, 2021 and June 29, 2021, respectively. | as working capital for three years, with the interest rate of 6.6% per annum and maturity date on April 16, 2023. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date | May 14, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 9.00% | 9.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit maximum borrowing capacity | ¥ | ¥ 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period of line of credit | 2 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit interest rate | 8.50% | 8.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long term borrowings | $ 300,000 | 30,969 | 30,969 | 200,000 | ¥ 2,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Agreement [Member] | Qishang Bank [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date, description | as working capital for three years, with maturity date on December 13, 2023 and interest rate of 6.65% per annum. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 6.65% | 6.65% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding balance | 387,117 | 387,117 | 2,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Long term borrowings | $ 500,000 | 154,847 | 154,847 | 1 | $ 1,500,000 | ¥ 10,000,000 | ¥ 3,000,000 | $ 2,000,000 | ¥ 13,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt, repayment | ¥ 500,000 | $ 77,423 | 77,423 | ¥ 500,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining balance | $ 232,271 | ¥ 1,500,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Agreement [Member] | We Bank Co Ltd [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date, description | as working capital for 24 months, with maturity date on June 20, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date | Jun. 20, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 14.40% | 14.40% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long term borrowings | $ 96,005 | ¥ 620,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Agreement [Member] | Xian Guosen Micro Credit Co Ltd [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank loans | $ 309,693 | $ 279,276 | ¥ 2,000,000 | ¥ 2,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date, description | as working capital for six months, with maturity date on September 3, 2021 | as working capital for six months, with maturity date on January 21, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date | Sep. 3, 2021 | Jan. 21, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 15.40% | 17.00% | 15.40% | 17.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Agreement [Member] | Xian Xinchang Micro Lending Co Ltd [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term bank loans | $ 154,847 | $ 110,241 | ¥ 750,002 | ¥ 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date, description | as working capital for one year, with maturity date on November 3, 2021 | as working capital for one year, with maturity date on November 3, 2021 | as working capital for one year, with maturity date on May 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date | Nov. 3, 2021 | Nov. 3, 2021 | May 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 15.12% | 18.00% | 15.12% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of debt | $ 141,943 | ¥ 916,665 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding balance | 12,904 | 12,904 | 83,335 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Agreement [Member] | Xian Investment Holding Co Ltd [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date, description | as working capital for three years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date | Feb. 13, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long term borrowings | $ 2,300,000 | ¥ 15,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans payable | ¥ | 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt extended maturity date | Dec. 12, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Agreement [Member] | Xian Investment Holding Co Ltd [Member] | Mature On February Thirteen Two Thousand Twenty [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans payable | $ 800,000 | 5,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Agreement [Member] | Xian Investment Holding Co Ltd [Member] | Mature on December 12, 2020 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans payable | $ 1,500,000 | ¥ 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Agreement [Member] | Xian Investment Holding Co Ltd [Member] | Minimum [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 2.00% | 2.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Agreement [Member] | Xian Investment Holding Co Ltd [Member] | Maximum [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 4.00% | 4.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Agreement [Member] | Xian High Tech Emerging Industry Investment Fund Partnership [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date, description | The Company has negotiated with the Lender to extend the loan repayment date to December 25, 2022 in accordance with a COVID-19 relief notice issued by local government, with adjusted interest rate of 4.75% per annum during the period from June 26, 2020 to June 25, 2021, and 5.225% per annum during the period from June 26, 2021 to December 25, 2022. | as working capital for three years, with maturity date on June 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date | Jun. 25, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 3.80% | 3.80% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long term borrowings | $ 1,200,000 | ¥ 8,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Agreement [Member] | We Bank Co Ltd [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date, description | October 12, 2022 | as working capital for 27 months, with maturity date on April 12, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity date | Apr. 12, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 14.40% | 18.00% | 14.40% | 18.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long term borrowings | $ 142,827 | $ 13,549 | $ 145,390 | $ 145,390 | ¥ 938,929 | ¥ 922,381 | ¥ 87,500 |
SCHEDULE OF DUE TO RELATED PART
SCHEDULE OF DUE TO RELATED PARTIES (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | ||
Due to related parties | $ 245,104 | $ 2,322,990 |
Shaanxi Meishengyuang Bio-Technoloy Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Related party relationship description | 5.5% shareholder of Xi’an App-chem | 5.5% shareholder of Xi’an App-chem |
Due to related parties | $ 738,864 | |
Wenhu Guo [Member] | ||
Related Party Transaction [Line Items] | ||
Related party relationship description | Senior Management of the Company | Senior Management of the Company |
Due to related parties | $ 3,376 | $ 368,145 |
Yongwei Hu [Member] | ||
Related Party Transaction [Line Items] | ||
Related party relationship description | Chief Executive Officer and Controlling shareholder of the Company | Chief Executive Officer and Controlling shareholder of the Company |
Due to related parties | $ 1,208,337 | |
Jing Liu [Member] | ||
Related Party Transaction [Line Items] | ||
Related party relationship description | Wife of the controlling shareholder | Wife of the controlling shareholder |
Due to related parties | $ 35,615 | $ 4,410 |
Sheying Wang [Member] | ||
Related Party Transaction [Line Items] | ||
Related party relationship description | Senior Management of the Company | Senior Management of the Company |
Due to related parties | $ 3,407 | $ 3,234 |
Yuantao Wang [Member] | ||
Related Party Transaction [Line Items] | ||
Related party relationship description | 49% shareholder of Tianjin YHX | 49% shareholder of Tianjin YHX |
Due to related parties | $ 202,706 |
SCHEDULE OF EFFECTIVE TAX RATE
SCHEDULE OF EFFECTIVE TAX RATE (Details) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
PRC statutory income tax rate | 25.00% | 25.00% | 25.00% |
Effect of income tax holiday | (9.50%) | (10.00%) | (10.00%) |
Permanent difference | 0.50% | 0.00% | 0.10% |
Research and development deduction | (3.40%) | (0.40%) | (1.90%) |
Change in valuation allowance | 2.50% | 0.60% | 1.10% |
Effective tax rate | 15.10% | 15.20% | 14.30% |
SCHEDULE OF COMPONENTS OF THE I
SCHEDULE OF COMPONENTS OF THE INCOME TAX PROVISION (BENEFIT) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Current tax provision | $ 791,822 | $ 564,013 | $ 432,343 |
Deferred tax provision (benefit) | 29,109 | (7,751) | (5,149) |
Income tax provision | 820,931 | 556,262 | 427,194 |
CAYMAN ISLANDS | |||
Current tax provision | |||
Deferred tax provision (benefit) | |||
HONG KONG | |||
Current tax provision | |||
Deferred tax provision (benefit) | |||
CHINA | |||
Current tax provision | 791,822 | 564,013 | 432,343 |
Deferred tax provision (benefit) | $ 29,109 | $ (7,751) | $ (5,149) |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Income Tax Disclosure [Abstract] | |||
Deferred tax assets derived from allowance for doubtful accounts and net operating losses (“NOL”) | $ 237,696 | $ 370,184 | |
Less: valuation allowance | (215,354) | (321,125) | $ (318,572) |
Deferred tax assets | $ 22,342 | $ 49,059 |
SCHEDULE OF TAXES PAYABLE (Deta
SCHEDULE OF TAXES PAYABLE (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Total taxes payable | $ 5,052,018 | $ 4,402,625 |
Income Tax [Member] | ||
Total taxes payable | 1,691,007 | 850,834 |
Value Added Tax Value Added Tax [Member] | ||
Total taxes payable | 3,262,532 | 3,463,146 |
Other Taxes [Member] | ||
Total taxes payable | $ 98,479 | $ 88,645 |
TAXES (Details Narrative)
TAXES (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Provision for income taxes | $ 820,931 | $ 556,262 | $ 427,194 |
Income tax description | Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for their HNTE status every three years. The Company’s VIE, Xi’an App-Chem was approved as a HNTE and is entitled to a reduced income tax rate of 15% beginning October 18, 2017, which is valid for three years. In December 2020, Xi’an App-Chem successfully renewed its HNTE Certificate with local government and will continue to enjoy the reduced income tax rate of 15% for another three years by December 1, 2023 | ||
Changes in income taxes | $ 514,327 | $ 372,517 | $ 314,080 |
Changes in income per share | $ 0.08 | $ 0.07 | $ 0.06 |
Deferred tax assets valuation allowance | $ 215,354 | $ 321,125 | $ 318,572 |
Accrued tax liabilities | $ 5,052,018 | 4,402,625 | |
High And New Technology Enterprises [Member] | |||
Effective income tax rate | 15.00% | ||
CHINA | |||
Effective income tax rate | 25.00% | ||
Tea Essence Limited [Member] | HONG KONG | |||
Effective income tax rate | 16.50% | ||
Provision for income taxes | $ 0 | $ 0 | $ 0 |
SCHEDULE OF MATURITY FINANCE LE
SCHEDULE OF MATURITY FINANCE LEASE LIABILITIES (Details) | Sep. 30, 2021USD ($) |
Capital Lease Liabilities | |
2022 | $ 176,525 |
2023 | 29,421 |
Total | $ 205,946 |
CAPITAL LEASE LIABILITIES (Deta
CAPITAL LEASE LIABILITIES (Details Narrative) ¥ in Millions | Dec. 25, 2020USD ($) | Dec. 25, 2020CNY (¥) | Sep. 30, 2021USD ($) |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Lease interest income | $ 15,707 | ||
Sale And Lease Back Agreement [Member] | Plant Machines [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Proceeds from sale of plant and machinery | $ 300,000 | ¥ 2 |
SCHEDULE OF BALANCE SHEET INFOR
SCHEDULE OF BALANCE SHEET INFORMATION RELATED OPERATING LEASE (Details) - USD ($) | Sep. 30, 2021 | Oct. 02, 2020 | Sep. 30, 2020 |
Operating Lease | |||
Operating lease right of use assets | $ 201,007 | ||
Total operating lease assets | 201,007 | ||
Current operating lease liabilities | 62,871 | ||
Non-current operating lease liabilities | 146,703 | ||
Total operating lease obligations | $ 209,574 | $ 200,000 |
SCHEDULE OF WEIGHTED-AVERAGE OF
SCHEDULE OF WEIGHTED-AVERAGE OF OPERATING LEASE (Details) | Sep. 30, 2021 |
Operating Lease | |
Weighted-average remaining lease term | 2 years 10 months 24 days |
Weighted-average discount rate | 4.75% |
SCHEDULE OF MATURITY OF OPERATI
SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITIES (Details) - USD ($) | Sep. 30, 2021 | Oct. 02, 2020 |
Operating Lease | ||
2022 | $ 71,414 | |
2023 | 78,553 | |
2024 | 69,629 | |
2025 | 5,806 | |
Total lease payments | 225,402 | |
Less: imputed interest | (15,828) | |
Total lease liabilities | $ 209,574 | $ 200,000 |
OPERATING LEASE (Details Narrat
OPERATING LEASE (Details Narrative) - USD ($) | Jan. 02, 2020 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Five -Year Lease Agreement [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Operating lease, description | the Company entered into a five-years lease agreement with an individual to rent a factory space of 19,333 square meters at Dali County, PRC | |||
Lease terms | 5 years | |||
Lease rental payment | $ 23,043 | $ 16,056 | ||
One -Year Lease Agreement [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Operating lease, description | the Company entered into a one-year lease agreement with Pioneering Park of Xi’an High-tech Zone to rent an office space of 807 square meters at Xi’an City, PRC. On June 3, 2021, the Company renewed the lease agreement with three years term from July 1, 2021 to June 30, 2024 | |||
Lease terms | 1 year | |||
Lease rental payment | $ 42,494 | $ 9,870 |
SCHEDULE OF WARRANT ACTIVITY (D
SCHEDULE OF WARRANT ACTIVITY (Details) | 12 Months Ended |
Sep. 30, 2021shares | |
Equity [Abstract] | |
Number of Warrants, Outstanding, Beginning | |
Weighted Average Exercise Price, Outstanding, Beginning | |
Weighted Average Remaining Contractual Term, Outstanding, Beginning | |
Fair Value, Outstanding, Beginning | |
Number of Warrants, Granted | 101,200 |
Weighted Average Exercise Price, Granted | 5 |
Number of Warrants, Forfeited | |
Weighted Average Exercise Price, Forfeited | |
Number of Warrants, Exercised | |
Weighted Average Exercise Price, Exercised | |
Number of Warrants, Outstanding, Ending | 101,200 |
Weighted Average Exercise Price, Outstanding, Ending | 5 |
Weighted Average Remaining Contractual Term, Outstanding, Ending | 4.75 |
Fair Value, Outstanding, Ending | |
Number of Warrants, Exercisable, Ending | 101,200 |
Weighted Average Exercise Price, Exercisable, Ending | 5 |
Weighted Average Remaining Contractual Term, Exerciusable, Ending | 4.75 |
Fair Value, Exercisable, Ending |
SCHEDULE OF NON-CONTROLLING INT
SCHEDULE OF NON-CONTROLLING INTEREST (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Non-controlling interest, beginning | $ 506,732 | ||
Net income attributable to non-controlling interest | 18,650 | $ 71,644 | $ (11,167) |
Foreign currency translation adjustment | 2,482 | ||
Non-controlling interest, ending | 527,865 | 506,732 | |
Xi'an DT [Member] | |||
Non-controlling interest, beginning | 492,753 | ||
Net income attributable to non-controlling interest | (10,370) | ||
Foreign currency translation adjustment | 654 | ||
Non-controlling interest, ending | 483,037 | 492,753 | |
Tianjin YHX [Member] | |||
Non-controlling interest, beginning | 13,979 | ||
Net income attributable to non-controlling interest | 29,020 | ||
Foreign currency translation adjustment | 1,829 | ||
Non-controlling interest, ending | $ 44,828 | $ 13,979 |
SHAREHOLDERS_ EQUITY (Details N
SHAREHOLDERS’ EQUITY (Details Narrative) - USD ($) | Jul. 02, 2021 | Jun. 23, 2020 | Jun. 17, 2020 | Jun. 28, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 24, 2020 | Dec. 11, 2019 |
Subsidiary, Sale of Stock [Line Items] | ||||||||
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 | 50,000,000 | |||||
Ordinary stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Ordinary shares, shares issued | 15,500,000 | 8,330,000 | 5,800,000 | 5,166,667 | 15,500,000 | |||
Reverse stock split, description | 1-for-3 shares | |||||||
Redemption of shares during period | 10,333,333 | |||||||
Ordinary shares, shares outstanding | 8,330,000 | 5,800,000 | 5,166,667 | |||||
Number of shares vested | 422,221 | 211,112 | ||||||
Warrants exercised | ||||||||
Statutory surplus reserve, description | Appropriations to the statutory surplus 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. | |||||||
Restricted cash equivalents | $ 1,050,721 | $ 579,922 | ||||||
Restricted net assets | $ 16,591,987 | $ 5,831,707 | ||||||
Xi'an DT [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Non-controlling interests rate | 25.00% | |||||||
Tianjin YHX [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Non-controlling interests rate | 49.00% | 49.00% | ||||||
Underwriter Warrants [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Number of warrants issued | 101,200 | |||||||
Warrants terms | 5 years | |||||||
Warrant exercise price | $ 5 | |||||||
Warrants issued and outstanding | 101,200 | |||||||
Warrants exercised | 0 | |||||||
IPO [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Ordinary stock, par value | $ 0.0001 | |||||||
Number of warrants issued | 101,200 | |||||||
Warrant issued, percentage | 4.00% | |||||||
Warrants terms | 5 years | |||||||
Warrant exercise price | $ 5 | |||||||
Warrant offering price | $ 5 | |||||||
Warrants exercisable year | 5 years | |||||||
IPO [Member] | Ordinary Shares [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Ordinary stock, par value | $ 0.0001 | |||||||
Sale of stock, shares issued | 2,200,000 | |||||||
Sale of stock, price per share | $ 5 | |||||||
Over-Allotment Option [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Ordinary stock, par value | $ 0.0001 | |||||||
Over-Allotment Option [Member] | Ordinary Shares [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Ordinary stock, par value | $ 0.0001 | |||||||
Sale of stock, shares issued | 330,000 | |||||||
Sale of stock, price per share | $ 5 | |||||||
Consultant [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Number of stock issued, services, shares | 633,333 | |||||||
Number of stock issued, services, values | $ 633,333 |
SUMMARY OF STOCK OPTION (Detail
SUMMARY OF STOCK OPTION (Details) | 12 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Number of options, Outstanding, Beginning | shares | |
Weighted Average Exercise Price, Outstanding, Beginning | |
Weighted Average Remaining Contractual Term, Outstanding, Beginning | |
Fair Value, Outstanding, Beginning | $ | |
Number of options, Granted | shares | 36,000 |
Weighted Average Exercise Price, Granted | $ 0.01 |
Fair Value, Granted | $ 179,640 |
Number of options, Forfeited | shares | |
Weighted Average Exercise Price, Forfeited | |
Fair Value, Forfeited | |
Number of options, Exercised | shares | |
Weighted Average Exercise Price, Exercised | |
Fair Value, Exercised | $ | |
Number of options, Outstanding, Ending | shares | 36,000 |
Weighted Average Exercise Price, Outstanding, Ending | $ 0.01 |
Weighted Average Remaining Contractual Term, Outstanding, Ending | 9 months |
Fair Value, Outstanding, Ending | $ | $ 179,640 |
Number of options, Exercisable | shares | 9,000 |
Weighted Average Exercise Price, Exercisable | $ 0.01 |
Weighted Average Remaining Contractual Term, Exerciable | 9 months |
Fair Value, Exercisable | $ | $ 44,910 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details Narrative) - USD ($) | Jun. 23, 2020 | Jun. 23, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 11, 2019 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Share based compensation | $ 422,221 | $ 211,112 | ||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Exercise price | 0.01 | |||||
Fair value of shares granted | 179,640 | |||||
Share price | $ 5 | |||||
Risk free interest rate | 4.35% | |||||
Expected term | 1 year | |||||
Exercise price | $ 0.01 | |||||
Volatility | 71.10% | |||||
Dividends | ||||||
General and Administrative Expense [Member] | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Share based compensation | $ 44,910 | |||||
Consultant [Member] | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Number of stock issued, services, shares | 633,333 | |||||
Number of stock issued, services, values | $ 633,333 | |||||
Director [Member] | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Number of shares granted | 36,000 | |||||
Common stock, par value | $ 0.0001 | |||||
Exercise price | $ 0.01 | |||||
Options vested and expected to vest term | 12 months | |||||
Fair value of shares granted | $ 179,640 |
CONCENTRATION (Details Narrativ
CONCENTRATION (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Concentration Risk [Line Items] | |||
Cash deposit at financial instutions | $ 1,903,453 | $ 49,668 | |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 35.50% | 29.00% | 17.20% |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 26.10% | 27.20% | 12.10% |
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Customer Three [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 14.10% | 10.20% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 61.00% | 43.70% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 33.10% | 25.80% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Three [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.40% | ||
Purchase [Member] | Customer Concentration Risk [Member] | Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 30.10% | 28.90% | 24.10% |
Purchase [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 13.40% | 28.80% | 14.80% |
Purchase [Member] | Customer Concentration Risk [Member] | Customer Three [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.10% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) $ in Millions | Sep. 30, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Future captial expenditure | $ 5.1 |
Future captial expenditure in next twelve month | $ 2.3 |
SCHEDULE OF SEGMENT REPORTING R
SCHEDULE OF SEGMENT REPORTING REVENUE BY REGION (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 25,494,564 | $ 18,219,959 | $ 16,396,018 |
PRC [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 23,704,259 | 15,461,801 | 11,192,324 |
Overseas [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 1,790,305 | $ 2,758,158 | $ 5,203,694 |
SCHEDULE OF SEGMENT REPORTING_2
SCHEDULE OF SEGMENT REPORTING REVENUE BY PRODUCT CATEGORIES (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from External Customer [Line Items] | |||
Total revenue | $ 25,494,564 | $ 18,219,959 | $ 16,396,018 |
Fragrance Compounds [Member] | |||
Revenue from External Customer [Line Items] | |||
Total revenue | 12,744,029 | 7,879,300 | 6,738,274 |
Health Supplements Solid Drinks [Member] | |||
Revenue from External Customer [Line Items] | |||
Total revenue | 6,655,982 | 3,887,096 | 4,342,490 |
Bioactive Food Ingredients [Member] | |||
Revenue from External Customer [Line Items] | |||
Total revenue | $ 6,094,553 | $ 6,453,563 | $ 5,315,254 |
SEGMENT REPORTING (Details Narr
SEGMENT REPORTING (Details Narrative) | 12 Months Ended |
Sep. 30, 2021Integer | |
Segment Reporting [Abstract] | |
Number of reporting segment | 1 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) | Jan. 10, 2022USD ($) | Jan. 10, 2022CNY (¥) | Nov. 01, 2021 | Oct. 21, 2021 | Oct. 02, 2021shares | Sep. 28, 2021 | Jan. 31, 2022USD ($) | Jan. 31, 2022CNY (¥) | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Jan. 26, 2022USD ($) | Jan. 26, 2022CNY (¥) | Dec. 06, 2021USD ($) | Dec. 06, 2021CNY (¥) | Sep. 30, 2021CNY (¥) | Jun. 28, 2021$ / sharesshares |
Subsequent Event [Line Items] | |||||||||||||||||
Repayments of short term loan | $ | $ 2,563,433 | $ 2,872,778 | $ 4,514,482 | ||||||||||||||
Line of credit maximum borrowing capacity | $ 5,900,000 | ¥ 15,000,000 | ¥ 38,000,000 | ||||||||||||||
Variable interest entity ownership percentage | 100.00% | ||||||||||||||||
Warrants exercised | |||||||||||||||||
Underwriter Warrants [Member] | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Warrants issued | 101,200 | ||||||||||||||||
Warrant terms | 5 years | ||||||||||||||||
Warrant exercise price | $ / shares | $ 5 | ||||||||||||||||
Warrants exercised | 0 | ||||||||||||||||
Xian App Chem Bio Tech [Member] | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Variable interest entity ownership percentage | 100.00% | ||||||||||||||||
Xian CMIT and Xian Youpincui [Member] | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Variable interest entity ownership percentage | 100.00% | ||||||||||||||||
Subsequent Event [Member] | Underwriter Warrants [Member] | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Warrants exercised | 20,381 | ||||||||||||||||
Subsequent Event [Member] | Shanghai pudong development bank [Member] | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Line of credit maximum borrowing capacity | $ 2,300,000 | ¥ 15,000,000 | |||||||||||||||
Proceeds from lines of credit | $ 1,500,000 | ¥ 10,000,000 | |||||||||||||||
Line of credit, Interest rate | 5.00% | 5.00% | |||||||||||||||
Line of credit, maturity date | Jan. 9, 2023 | Jan. 9, 2023 | |||||||||||||||
Line of credit, collateral | A third-party Xian Financial Guarantee Co., Ltd. provided guarantee to this loan. In addition, the Company pledged its 100% ownership interest in App-Chem Health and certain free patent owned by the Company as collateral to guarantee this loan. | A third-party Xian Financial Guarantee Co., Ltd. provided guarantee to this loan. In addition, the Company pledged its 100% ownership interest in App-Chem Health and certain free patent owned by the Company as collateral to guarantee this loan. | |||||||||||||||
Line of credit remaining borrowing capacity | $ 800,000 | ¥ 5,000,000 | |||||||||||||||
Subsequent Event [Member] | PRC Banks [Member] | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Repayments of short term loan | $ 41,381 | ¥ 267,238 |
SCHEDULE OF CONDENSED BALANCE S
SCHEDULE OF CONDENSED BALANCE SHEET (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Current assets | ||
Cash | $ 1,903,867 | $ 53,106 |
Due from subsidiaries and VIEs | 4,000,000 | |
Prepaid expenses and other current assets | 98,960 | 7,434 |
TOTAL CURRENT ASSETS | 16,549,752 | 10,840,214 |
Non-current assets | ||
TOTAL ASSETS | 36,412,799 | 25,202,229 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
LIABILITIES | 9,878,050 | 14,179,220 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY | ||
Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 8,330,000 and 5,800,000 shares issued and outstanding as of September 30, 2021 and 2020, respectively | 833 | 580 |
Retained earnings | 9,192,676 | 5,072,672 |
Accumulated other comprehensive income (loss) | 222,221 | (388,102) |
TOTAL BON NATURAL LIFE LIMITED SHAREHOLDERS’ EQUITY | 26,006,884 | 10,516,277 |
TOTAL LIABILITIES AND EQUITY | 36,412,799 | 25,202,229 |
Parent Company [Member] | ||
Current assets | ||
Cash | 245,081 | |
Acquisition deposit | 1,000,000 | |
Due from subsidiaries and VIEs | 10,000,000 | |
Prepaid expenses and other current assets | 2,600 | |
TOTAL CURRENT ASSETS | 11,247,681 | |
Non-current assets | ||
Investment in subsidiaries and VIEs | 14,759,203 | 10,516,277 |
TOTAL ASSETS | 26,006,884 | 10,516,277 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
LIABILITIES | ||
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY | ||
Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 8,330,000 and 5,800,000 shares issued and outstanding as of September 30, 2021 and 2020, respectively | 833 | 580 |
Additional paid-in capital | 15,540,433 | 5,251,205 |
Retained earnings | 10,243,397 | 5,652,594 |
Accumulated other comprehensive income (loss) | 222,221 | (388,102) |
TOTAL BON NATURAL LIFE LIMITED SHAREHOLDERS’ EQUITY | 26,006,884 | 10,516,277 |
TOTAL LIABILITIES AND EQUITY | $ 26,006,884 | $ 10,516,277 |
SCHEDULE OF CONDENSED BALANCE_2
SCHEDULE OF CONDENSED BALANCE SHEET (Details) (Parenthetical) - $ / shares | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 24, 2020 | Jun. 17, 2020 | Dec. 11, 2019 |
Condensed Financial Information Disclosure [Abstract] | |||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 | 50,000,000 | ||
Ordinary shares, shares issued | 8,330,000 | 5,800,000 | 5,166,667 | 15,500,000 | 15,500,000 |
Ordinary shares, shares outstanding | 8,330,000 | 5,800,000 | 5,166,667 |
SCHEDULE OF CONDENSED INCOME ST
SCHEDULE OF CONDENSED INCOME STATEMENT (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Condensed Financial Statements, Captions [Line Items] | |||
General and administrative expenses | $ (1,323,726) | $ (1,367,070) | $ (1,310,215) |
Interest income | 3,207 | 714 | 2,271 |
NET INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED | 4,590,803 | 3,026,673 | 2,573,803 |
Foreign currency translation adjustment | 612,806 | 450,234 | (281,699) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED | 5,201,126 | 3,466,814 | 2,291,906 |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
General and administrative expenses | (68,722) | ||
Interest income | 13 | ||
Equity in earnings of subsidiaries and VIEs | 4,659,512 | 3,026,673 | 2,573,803 |
NET INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED | 4,590,803 | 3,026,673 | 2,573,803 |
Foreign currency translation adjustment | 610,323 | 440,141 | (281,897) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED | $ 5,201,126 | $ 3,466,814 | $ 2,291,906 |
SCHEDULE OF CONDENSED CASH FLOW
SCHEDULE OF CONDENSED CASH FLOW STATEMENT (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 4,590,803 | $ 3,026,673 | $ 2,573,803 |
Adjustments to reconcile net cash flows from operating activities: | |||
Stock-based compensation | 422,221 | 211,112 | |
Changes in operating assets and liabilities: | |||
Prepaid expenses and other current assets | 2,642 | 72,116 | 173,609 |
Net cash provided by operating activities | 4,053,124 | 2,643,076 | 7,104,823 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net cash used in investing activities | (7,443,745) | (3,003,043) | (8,429,958) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net cash provided by financing activities | 5,352,682 | 112,492 | 804,680 |
Parent Company [Member] | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | 4,590,803 | 3,026,673 | 2,573,803 |
Adjustments to reconcile net cash flows from operating activities: | |||
Equity in earnings of subsidiaries and VIEs | (4,659,512) | (3,026,673) | (2,573,803) |
Stock-based compensation | 44,910 | ||
Changes in operating assets and liabilities: | |||
Prepaid expenses and other current assets | (2,600) | ||
Net cash provided by operating activities | (26,399) | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Payment of acquisition deposit | (1,000,000) | ||
Net cash used in investing activities | (1,000,000) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from Issuance of Ordinary Shares | 11,271,480 | ||
Cash lent to subsidiaries and VIE | (10,000,000) | ||
Net cash provided by financing activities | 1,271,480 | ||
CHANGES IN CASH AND RESTRICTED CASH | 245,081 | ||
CASH AND RESTRICTED CASH, beginning of period | |||
CASH AND RESTRICTED CASH, end of period | $ 245,081 |