Exhibit 99.1
BON NATURAL LIFE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| As of | ||||||||
| March 31, 2023 | September 30, 2022 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash | $ | 542,272 | $ | 840,861 | ||||
| Accounts receivable, net | 9,260,407 | 6,784,307 | ||||||
| Inventories, net | 1,803,374 | 1,722,120 | ||||||
| Advance to suppliers, net | 7,644,920 | 4,091,990 | ||||||
| Acquisition deposit | 1,000,000 | 1,000,000 | ||||||
| Prepaid expenses and other current assets | 3,967,756 | 277,509 | ||||||
| TOTAL CURRENT ASSETS | 24,218,729 | 14,716,787 | ||||||
| Property, plant and equipment, net | 22,135,274 | 21,624,437 | ||||||
| Intangible assets, net | 373,751 | 366,167 | ||||||
| Right-of-use lease assets, net | 450,282 | 546,690 | ||||||
| Deferred tax assets, net | 29,023 | 2,768 | ||||||
| TOTAL ASSETS | $ | 47,207,059 | $ | 37,256,849 | ||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Short-term loans | $ | 2,666,457 | $ | 2,424,587 | ||||
| Current portion of long-term loans | 1,934,411 | 2,135,979 | ||||||
| Accounts payable | 324,240 | 214,585 | ||||||
| Due to related parties | 120,203 | 72,836 | ||||||
| Taxes payable | 1,676,714 | 1,239,708 | ||||||
| Deferred revenue | 989,027 | 188,745 | ||||||
| Accrued expenses and other current liabilities | 3,503,550 | 114,431 | ||||||
| Finance lease liabilities, current | - | 26,285 | ||||||
| Operating lease liability, current | 247,397 | 230,182 | ||||||
| TOTAL CURRENT LIABILITIES | 11,461,999 | 6,647,338 | ||||||
| Long-term loans | 30,336 | 189,813 | ||||||
| Operating lease liability, noncurrent | 212,955 | 327,202 | ||||||
| TOTAL LIABILITIES | $ | 11,705,290 | $ | 7,164,353 | ||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| EQUITY | ||||||||
| Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 11,146,226 and 8,396,226 shares issued and outstanding as of March 31, 2023 and September 30, 2022, respectively | 1,115 | 840 | ||||||
| Additional paid in capital | 17,946,174 | 15,711,450 | ||||||
| Statutory reserve | 1,804,116 | 1,804,116 | ||||||
| Retained earnings | 16,796,529 | 14,676,769 | ||||||
| Accumulated other comprehensive income | (1,559,550 | ) | (2,631,171 | ) | ||||
| TOTAL BON NATURAL LIFE LIMITED SHAREHOLDERS’ EQUITY | 34,988,384 | 29,562,004 | ||||||
| Non-controlling interest | 513,387 | 530,492 | ||||||
| TOTAL SHAREHOLDERS’ EQUITY | 35,501,771 | 30,092,496 | ||||||
| TOTAL LIABILITIES AND EQUITY | $ | 47,207,059 | $ | 37,256,849 | ||||
BON NATURAL LIFE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
For the six months ended March 31, | ||||||||
| 2023 | 2022 | |||||||
| REVENUE | $ | 14,149,967 | $ | 13,688,400 | ||||
| COST OF REVENUE | (9,432,619 | ) | (9,652,453 | ) | ||||
| GROSS PROFIT | 4,717,348 | 4,035,947 | ||||||
| OPERATING EXPENSES | ||||||||
| Selling expenses | (136,164 | ) | (83,970 | ) | ||||
| General and administrative expenses | (1,465,955 | ) | (998,943 | ) | ||||
| Research and development expenses | (129,995 | ) | (164,675 | ) | ||||
| Total operating expenses | (1,732,114 | ) | (1,247,588 | ) | ||||
| INCOME FROM OPERATIONS | 2,985,234 | 2,788,359 | ||||||
| OTHER INCOME (EXPENSES) | ||||||||
| Interest income | 8,732 | 589 | ||||||
| Interest expense | (178,557 | ) | (277,764 | ) | ||||
| Unrealized foreign transaction exchange loss | 8,452 | (16,994 | ) | |||||
| Government subsidies | 11,916 | 542,256 | ||||||
| Income from short-term investments | - | 12,419 | ||||||
| Other income | (223,043 | ) | 43,532 | |||||
| Total other income, net | (372,501 | ) | 304,038 | |||||
| INCOME BEFORE INCOME TAX PROVISION | 2,617,733 | 3,092,397 | ||||||
| INCOME TAX PROVISION | (510,077 | ) | (562,737 | ) | ||||
| NET INCOME | 2,102,656 | 2,529,660 | ||||||
| Less: net loss attributable to non-controlling interest | (17,104 | ) | (19,018 | ) | ||||
| NET INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED | $ | 2,119,760 | $ | 2,548,678 | ||||
| NET INCOME | 2,102,656 | 2,529,660 | ||||||
| OTHER COMPREHENSIVE INCOME | ||||||||
| Total foreign currency translation adjustment | 1,071,621 | 485,503 | ||||||
| TOTAL COMPREHENSIVE INCOME | 3,174,277 | 3,015,163 | ||||||
| Less: comprehensive loss attributable to non-controlling interest | (17,104 | ) | (21,314 | ) | ||||
| COMPREHENSIVE INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED | $ | 3,191,381 | $ | 3,036,477 | ||||
| EARNINGS PER SHARE | ||||||||
| Basic | $ | 0.24 | $ | 0.31 | ||||
| Diluted | $ | 0.24 | $ | 0.30 | ||||
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | ||||||||
| Basic | 8,918,309 | 8,350,381 | ||||||
| Diluted | 8,979,243 | 8,386,306 | ||||||
BON NATURAL LIFE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE SIX MONTHS ENDED MARCH 31, 2023 AND 2022
(UNAUDITED)
| Common shares | Additional paid-in | Statutory | Retained | Accumulated other comprehensive | Total shareholders’ | Non- controlling | Total | |||||||||||||||||||||||||||||
| Shares | Amount | capital | reserve | earnings | loss | equity | interest | equity | ||||||||||||||||||||||||||||
| Balance at September 30, 2021 | 8,330,000 | $ | 833 | $ | 15,540,433 | $ | 1,050,721 | $ | 9,192,676 | $ | 222,221 | $ | 26,006,884 | $ | 527,865 | $ | 26,534,749 | |||||||||||||||||||
| Non-cash exercise of warrants | 20,381 | 2 | (2 | ) | - | - | - | - | - | - | ||||||||||||||||||||||||||
| Amortization of share-based compensation | - | - | 89,820 | - | - | - | 89,820 | - | 89,820 | |||||||||||||||||||||||||||
| Net income (loss) | - | - | - | - | 2,548,678 | - | 2,548,678 | (19,018 | ) | 2,529,660 | ||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | - | 487,799 | 487,799 | (2,296 | ) | 485,503 | ||||||||||||||||||||||||||
| Balance at March 31, 2022 | 8,350,381 | $ | 835 | $ | 15,630,251 | $ | 1,050,721 | $ | 11,741,354 | $ | 710,020 | $ | 29,133,181 | $ | 506,551 | $ | 29,639,732 | |||||||||||||||||||
| Balance at September 30, 2022 | 8,396,226 | $ | 840 | $ | 15,711,450 | $ | 1,804,116 | $ | 14,676,769 | $ | (2,631,171 | ) | $ | 29,562,004 | $ | 530,492 | $ | 30,092,496 | ||||||||||||||||||
| Issuance of ordinary shares in initial public offerings, net | 2,750,000 | 275 | 2,199,725 | - | - | - | 2,200,000 | - | 2,200,000 | |||||||||||||||||||||||||||
| Amortization of stock options | - | - | 35,000 | - | - | 35,000 | - | 35,000 | ||||||||||||||||||||||||||||
| Net income (loss) | - | -- | - | - | 2,119,760 | - | 2,119,760 | (17,104 | ) | 2,102,656 | ||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | 1,071,621 | 1,071,621 | - | 1,071,621 | ||||||||||||||||||||||||||||
| Balance at March 31, 2023 | 11,146,226 | $ | 1,115 | $ | 17,946,175 | $ | 1,804,116 | $ | 16,796,529 | $ | (1,559,550 | ) | $ | 34,988,384 | $ | 513,387 | $ | 35,501,771 | ||||||||||||||||||
BON NATURAL LIFE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the six months ended March 31, | ||||||||
| 2023 | 2022 | |||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 2,102,656 | $ | 2,529,660 | ||||
| Adjustments to reconcile net income to cash provided by operating activities | ||||||||
| Allowance for doubtful accounts | - | 187 | ||||||
| Depreciation and amortization | 282,888 | 112,945 | ||||||
| Inventory reserve | 105,314 | - | ||||||
| Deferred income tax | (25,749 | ) | (28 | ) | ||||
| Amortization of operating lease right-of-use assets | 114,179 | 33,122 | ||||||
| Amortization of stock options | 35,000 | 89,820 | ||||||
| Unrealized foreign currency exchange loss | (8,452 | ) | 16,994 | |||||
| Gain on disposal of property and equipment | - | (745 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (2,198,450 | ) | (1,265,109 | ) | ||||
| Inventories | (124,601 | ) | (515,690 | ) | ||||
| Advance to suppliers, net | (3,353,433 | ) | 977,033 | |||||
| Prepaid expenses and other current assets | (3,595,458 | ) | (38,795 | ) | ||||
| Accounts payable | 100,386 | 165,741 | ||||||
| Operating lease liabilities | (115,170 | ) | (30,589 | ) | ||||
| Taxes payable | 386,510 | (1,806,543 | ) | |||||
| Deferred revenue | 781,183 | (440,032 | ) | |||||
| Accrued expenses and other current liabilities | 3,335,205 | 41,452 | ||||||
| Net cash used in operating activities | (2,177,992 | ) | (130,577 | ) | ||||
| Cash flows from investing activities | ||||||||
| Purchase of short-term investments | - | (3,678,199 | ) | |||||
| Proceeds upon redemption of short-term investments | - | 5,273,186 | ||||||
| Purchase of property and equipment | (15,131 | ) | (10,231 | ) | ||||
| Proceeds from sales of property and equipment | - | 1,659 | ||||||
| Capital expenditures on construction-in-progress | (2,970 | ) | (3,577,995 | ) | ||||
| Net cash used in investing activities | (18,101 | ) | (1,991,580 | ) | ||||
| Cash flows from financing activities | ||||||||
| Net proceeds from issuance of Ordinary Shares in initial public offerings | 2,200,000 | - | ||||||
| Proceeds from short-term loans | 259,767 | 1,608,378 | ||||||
| Proceeds from long-term loans | - | 594,864 | ||||||
| Repayment of short-term loans | (79,165 | ) | (41,945 | ) | ||||
| Repayment of long-term loans | (437,412 | ) | (339,343 | ) | ||||
| Proceeds from (repayment of) borrowings from related parties | (1,038 | ) | 91,965 | |||||
| Principal repayment of capital lease | (27,236 | ) | (89,465 | ) | ||||
| Net cash provided by financing activities | 1,914,916 | 1,824,454 | ||||||
| Effect of changes of foreign exchange rates on cash | (17,412 | ) | 2,915 | |||||
| Net decrease in cash | (298,589 | ) | (294,788 | ) | ||||
| Cash, beginning of period | 840,861 | 1,903,867 | ||||||
| Cash, end of period | $ | 542,272 | $ | 1,609,079 | ||||
| Supplemental disclosure of cash flow information | ||||||||
| Cash paid for interest expense | $ | 178,557 | $ | 277,764 | ||||
| Cash paid for income tax | $ | 500,251 | $ | 785,853 | ||||
| Supplemental disclosure of non-cash investing and financing activities | ||||||||
| Amortization of share-based compensation for initial public offering services | $ | 35,000 | $ | 89,820 | ||||
| Right-of-use assets obtained in exchange for operating lease obligations | $ | 458,181 | $ | - | ||||
