Document And Entity Information
Document And Entity Information | 12 Months Ended |
Sep. 30, 2023 | |
Document Information Line Items | |
Entity Registrant Name | Global Mofy Metaverse Limited |
Document Type | POS AM |
Amendment Flag | true |
Amendment Description | Explanatory NoteOn December 26, 2023, the Registrant filed a registration statement on Form F-1 (Registration No. 333-276277), which was subsequently declared effective by the Securities and Exchange Commission on December 28, 2023 (“Registration Statement”).This Post-Effective Amendment is being filed pursuant to Section 10(a)(3) of the Securities Act of 1933, as amended, to update the Registration Statement to include the audited consolidated financial statements and the notes thereto for the fiscal years ended September 30, 2023 and 2022, and certain other information in such Registration Statement.No additional securities are being registered under this Post-Effective Amendment. All applicable registration fees were paid at the time of the original filing of such Registration Statement. |
Entity Central Index Key | 0001913749 |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Incorporation, State or Country Code | E9 |
Consolidated Balance Sheets
Consolidated Balance Sheets | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Current Assets | |||
Cash | $ 10,437,580 | $ 1,136,064 | |
Short-term investments | 780,000 | ||
Accounts receivable, net | 3,286,330 | 2,101,665 | |
Accounts receivable – related party | 298,587 | ||
Advance to vendors | 2,593,887 | 1,543,294 | |
Loans receivable – current | 287,829 | 295,213 | |
Prepaid expenses and other current assets, net | 507,336 | 395,842 | |
Total current assets | 17,892,962 | 5,953,416 | |
Property and equipment, net | 34,431 | 37,806 | |
Loan from third party, noncurrent | 107,542 | ||
Intangible assets | 6,505,792 | ||
Operating lease liabilities – noncurrent | 556,674 | ||
Operating lease right-of-use assets | 954,771 | 147,099 | |
Total non-current liabilities | 556,674 | 107,542 | |
Total Liabilities | 6,302,366 | 4,776,638 | |
Loans receivable – noncurrent | 447,505 | 458,986 | |
Advance to vendor – noncurrent | 1,020,874 | 1,800,000 | |
Prepaid expenses and other non-current assets, net | 262,986 | 129,222 | |
Total non-current assets | 9,226,359 | 2,573,113 | |
Total Assets | 27,119,321 | 8,526,529 | |
Current Liabilities | |||
Short-term bank loans | 2,442,609 | 1,532,073 | |
Loans from third parties | 22,615 | 108,245 | |
Accounts payable | 531,091 | 952,249 | |
Advance from customers | 345,838 | 1,154,100 | |
Tax payable | 1,555,059 | 474,370 | |
Accrued expenses and other liabilities | 555,440 | 327,641 | |
Operating lease liabilities – current | 293,040 | 120,418 | |
Total current liabilities | 5,745,692 | 4,669,096 | |
Non-current Liabilities | |||
Commitments | |||
Equity: | |||
Ordinary shares (US$0.000002 par value, 25,000,000,000 shares authorized, 25,926,155 and 23,618,037 shares issued and outstanding as of September 30, 2023 and 2022, respectively)* | [1] | 52 | 47 |
Additional paid-in capital | 16,035,229 | 5,112,181 | |
Statutory reserves | 368,271 | 39,620 | |
Accumulated earnings (deficit) | 5,158,115 | (1,065,072) | |
Accumulated other comprehensive (loss) | (604,182) | (193,324) | |
Total Global Mofy Metaverse Limited shareholders’ equity | 20,957,485 | 3,893,452 | |
Non-controlling interests | (140,530) | (143,561) | |
Total equity | 20,816,955 | 3,749,891 | |
Total liabilities and equity | 27,119,321 | 8,526,529 | |
Related Party | |||
Current Assets | |||
Due from related party | $ 182,751 | ||
[1] Retrospectively restated for effect of stock split and share reorganization (see Note 12). |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2023 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Ordinary Shares par value (in Dollars per share) | $ 0.000002 | $ 0.000002 |
Ordinary shares, shares authorized | 25,000,000,000 | 25,000,000,000 |
Ordinary shares, shares issued | 25,926,155 | 23,618,037 |
Ordinary shares, shares outstanding | 25,926,155 | 23,618,037 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Revenue | ||||
Revenue | $ 26,889,911 | $ 17,188,293 | $ 14,268,184 | |
Cost of revenue | (12,357,934) | (13,072,732) | (10,990,076) | |
Gross profit | 14,531,977 | 4,115,561 | 3,278,108 | |
Operating expenses: | ||||
Selling expenses | (294,587) | (153,822) | (143,708) | |
General and administrative expenses | (3,046,037) | (1,041,330) | (1,077,102) | |
Research and development expenses | (3,546,155) | (3,207,759) | (661,134) | |
Total operating expenses | (6,886,779) | (4,402,911) | (1,881,944) | |
Income (loss) from operations | 7,645,198 | (287,350) | 1,396,164 | |
Other (expenses) income: | ||||
Interest income | 41,230 | 42,948 | 42,690 | |
Interest expenses | (126,206) | (74,888) | (25,183) | |
Other income, net | 89,124 | 54,049 | 10,488 | |
Total other income, net | 4,148 | 22,109 | 27,995 | |
Income (loss) before income taxes | 7,649,346 | (265,241) | 1,424,159 | |
Income tax expense | (1,098,087) | (9,992) | ||
Net income (loss) | 6,551,259 | (265,241) | 1,414,167 | |
Net (loss) income attributable to non-controlling interest | (579) | 1,981 | (2,295) | |
Net income (loss) attributable to Global Mofy Metaverse Limited | 6,551,838 | (267,222) | 1,416,462 | |
Comprehensive income (loss) | ||||
Net income (loss) | 6,551,259 | (265,241) | 1,414,167 | |
Foreign currency translation (loss) gain | (407,248) | (198,124) | 7,983 | |
Total comprehensive income (loss) | 6,144,011 | (463,365) | 1,422,150 | |
Comprehensive income attributable to non-controlling interests | 3,031 | 2,304 | 4,259 | |
Comprehensive income (loss) attributable to Global Mofy Metaverse Limited | $ 6,140,980 | $ (465,669) | $ 1,417,891 | |
Earnings (loss) per common share | ||||
Basic (in Dollars per share) | [1] | $ 0.26 | $ (0.01) | $ 0.06 |
Weighted average number of common shares outstanding | ||||
Basic (in Shares) | [1] | 25,021,246 | 23,441,484 | 23,015,777 |
Revenue from third parties | ||||
Revenue | ||||
Revenue | $ 26,889,911 | $ 14,540,300 | $ 14,268,184 | |
Revenue from related parties | ||||
Revenue | ||||
Revenue | $ 2,647,993 | |||
[1] Retrospectively restated for effect of stock split and share reorganization (see Note 12). |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parentheticals) - $ / shares | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Income Statement [Abstract] | ||||
Diluted | [1] | $ 0.26 | $ (0.01) | $ 0.06 |
Diluted | [1] | 25,021,246 | 23,441,484 | 23,015,777 |
[1] Retrospectively restated for effect of stock split and share reorganization (see Note 12). |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Deficit) - USD ($) | Ordinary shares | Additional paid-in capital | Statutory reserves | Accumulated deficit | Accumulated other comprehensive income (loss) | Non- controlling interests | Total | ||
Balance at Sep. 30, 2020 | $ 46 | [1] | $ 2,293,919 | $ 650 | $ (2,175,342) | $ 3,694 | $ (150,124) | $ (27,157) | |
Balance (in Shares) at Sep. 30, 2020 | [1] | 23,015,777 | |||||||
Capital contribution | [1] | 818,263 | 818,263 | ||||||
Net income (loss) for the year | [1] | 1,416,462 | (2,295) | 1,414,167 | |||||
Appropriation to statutory reserve | [1] | 38,970 | (38,970) | ||||||
Foreign currency translation adjustment | [1] | 1,429 | 6,554 | 7,983 | |||||
Balance at Sep. 30, 2021 | $ 46 | [1] | 3,112,182 | 39,620 | (797,850) | 5,123 | (145,865) | 2,213,256 | |
Balance (in Shares) at Sep. 30, 2021 | [1] | 23,015,777 | |||||||
Capital contribution | $ 1 | [1] | 1,999,999 | 2,000,000 | |||||
Capital contribution (in Shares) | [1] | 602,260 | |||||||
Net income (loss) for the year | [1] | (267,222) | 1,981 | (265,241) | |||||
Appropriation to statutory reserve | [1] | ||||||||
Foreign currency translation adjustment | [1] | (198,447) | 323 | (198,124) | |||||
Balance at Sep. 30, 2022 | $ 47 | [1] | 5,112,181 | 39,620 | (1,065,072) | (193,324) | (143,561) | 3,749,891 | |
Balance (in Shares) at Sep. 30, 2022 | [1] | 23,618,037 | |||||||
Capital contribution | $ 5 | [1] | 10,923,048 | 10,923,053 | |||||
Capital contribution (in Shares) | [1] | 2,308,118 | |||||||
Net income (loss) for the year | [1] | 6,551,838 | (579) | 6,551,259 | |||||
Appropriation to statutory reserve | [1] | 328,651 | (328,651) | ||||||
Foreign currency translation adjustment | [1] | (410,858) | 3,610 | (407,248) | |||||
Balance at Sep. 30, 2023 | $ 52 | [1] | $ 16,035,229 | $ 368,271 | $ 5,158,115 | $ (604,182) | $ (140,530) | $ 20,816,955 | |
Balance (in Shares) at Sep. 30, 2023 | [1] | 25,926,155 | |||||||
[1] Retrospectively restated for effect of stock split and share reorganization (see Note 12). |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Statement of Cash Flows [Abstract] | |||
Net income (loss) | $ 6,551,259 | $ (265,241) | $ 1,414,167 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Depreciation | 439,279 | 27,852 | 23,140 |
Amortization of operating lease right-of-use assets | 184,427 | 151,863 | 147,482 |
Provision for doubtful accounts, net of recovery | 1,204,551 | (16,084) | 21,422 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (1,684,402) | 3,565,011 | (5,302,583) |
Accounts receivable – related party | 301,136 | (324,116) | |
Advances to vendors | (766,921) | (3,356,195) | 662,025 |
Prepaid expenses and other current assets | 1,518,313 | (16,901) | (323,016) |
Prepaid expenses and other noncurrent assets | (65,892) | 61,142 | |
Accounts payable | (411,037) | (1,823,331) | 1,405,228 |
Advance from customers | (809,364) | 738,642 | 49,877 |
Taxes payable | 1,129,748 | 29,585 | 485,017 |
Accrued expenses and other liabilities | (1,549,218) | 281,003 | 33,716 |
Lease liabilities | (265,773) | (190,457) | (89,756) |
Net cash provided by (used in) operating activities | 5,776,106 | (1,137,227) | (1,473,281) |
Cash flows from investing activities | |||
Purchase of property and equipment | (9,782) | (28,839) | (51,683) |
Purchase of intangible assets | (7,156,636) | ||
Purchase of short-term investments | (750,000) | ||
Collection of loans to related parties | 184,311 | 112,644 | |
Loans to third parties | (2,400,000) | (501,752) | |
Loans to related party | (198,376) | ||
Collection of loans to third parties | 2,400,000 | 61,039 | 359,602 |
Net cash used in investing activities | (7,732,107) | (166,176) | (81,189) |
Cash flows from financing activities | |||
Borrowings from third parties | (217,629) | 234,237 | 1,060,364 |
Repayments of third parties loans | 23,393 | (1,243,667) | |
Proceeds from short-term bank loans | 2,526,658 | 1,785,143 | 1,059,849 |
Repayments of short-term bank loans | (1,545,149) | (1,174,487) | (302,583) |
Deferred offering cost | (70,867) | (131,634) | |
Capital contributions | 10,923,053 | 2,000,000 | 805,722 |
Net cash provided by financing activities | 11,639,459 | 1,469,592 | 2,623,352 |
Effect of foreign exchange rate on cash | (381,942) | (118,819) | 11,054 |
Net increase in cash | 9,301,516 | 47,370 | 1,079,936 |
Cash at the beginning of the year | 1,136,064 | 1,088,694 | 8,758 |
Cash at the end of the year | 10,437,580 | 1,136,064 | 1,088,694 |
Supplemental disclosures of cash flow information: | |||
Income taxes paid | 258 | 739 | |
Interest paid | 126,206 | 74,888 | 25,183 |
Non-cash transactions of investing and financing activities: | |||
Initial recognition of right-of-use assets | $ 1,022,582 | $ 313,741 |
Organization and Business Descr
Organization and Business Description | 12 Months Ended |
Sep. 30, 2023 | |
Organization and Business Description [Abstract] | |
ORGANIZATION AND BUSINESS DESCRIPTION | NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION Global Mofy Metaverse Limited (“Global Mofy Cayman”) was incorporated on September 29, 2021 under the laws of the Cayman Islands with limited liability. Global Mofy Cayman owns 100% of the equity interests of Global Mofy HK Limited (“Global Mofy HK”), a business company incorporated in accordance with the laws and regulations of Hong Kong on October 21, 2021. Global Mofy HK owns 100% of the equity interests of Mofy Metaverse (Beijing) Technology Co., Ltd (“Global Mofy WFOE”), a business company incorporated in accordance with the laws and regulations of the People’s Republic of China (“China” or “PRC”) on December 09, 2021. Global Mofy Cayman, Global Mofy HK, and Global Mofy WFOE are currently not engaging in any active business operations and merely acting as holding companies. Prior to the reorganization described below, the main operating activities of the Company were carried out by Global Mofy (Beijing) Technology Co., Ltd. (“Global Mofy China”) and its subsidiaries. Global Mofy China was established on November 22, 2017 under the laws of the PRC. Global Mofy China has three wholly-owned subsidiaries, Kashi Mofy Interactive Digital Technology Co., Ltd. (“Kashi Mofy”), Shanghai Moying Feihuan Technology Co., Ltd. (“Shanghai Mofy”) and Mofy Filming (Hainan) Co., Ltd. (“Mofy Hainan”), which were established on July 31, 2019, May 11, 2020 and January 4, 2021 in China, respectively. Global Mofy China acquired 60% shares of Mofy (Beijing) Filming Technology Co., Ltd. (Beijing Mofy) and Xi’an Digital Cloud Database Technology Co., Ltd. (“Mofy Xi’an”) on February 7, 2018 and June 8, 2018, respectively. On December 1, 2021, Global Mofy China entered into an equity share transferring agreement with a third-party individual and transferred its 100% equity interest in Mofy Hainan for consideration of RMB1. Such transferring was completed on December 3, 2021. Mofy Hainan has no active business operation since its inception on January 4, 2021. In preparation for listing in a stock market of the United States of America, the Company underwent a reorganization through entering into various contractual arrangements (the “Contractual Arrangements”), which, effective from January 5, 2022, between Global Mofy WFOE, Global Mofy China and their respective equity holders (the “Corporate Reorganization”) due to regulatory restrictions on foreign ownership in the radio and television program production and operation business and value-added telecommunications business in the PRC. In June, 2022, the Company removed the radio and television program production from its business scope and the reason to use the VIE structure was no longer relevant. Historically, the Company did not produce any radio or television program. On June 28, 2022, Global Mofy WFOE entered into equity transfer agreements with each shareholder of Global Mofy China to purchase all the equity interest in Global Mofy China. On July 8, 2022, Global Mofy WFOE, Global Mofy China and shareholders of Global Mofy China signed a termination agreement of the VIE Agreements. The VIE structure was dissolved. The restructure was completed on July 8, 2022. As a result, Global Mofy China became a wholly owned subsidiary of Global Mofy WFOE. Immediately before this acquisition, Global Mofy China was a foreign-invested joint venture. Global Mofy Cayman together with its wholly owned subsidiaries Global Mofy HK, Global Mofy WFOE and Global Mofy China and its subsidiaries were effectively controlled by the same shareholders before and after the reorganization and therefore the Reorganization was considered under common control and included at their historical carrying values. The consolidation of the Company has been prepared on the basis as if the reorganization had become effective as of the beginning of the first period presented in the consolidated financial statements. Global Mofy Cayman and its subsidiaries (the “Company”), mainly engaged in providing virtual content production and online advertising services. The Company’s headquarters are located in the city of Beijing, China. As of September 30, 2023, the Company’s major subsidiaries are as follows: Name of Entity Date of Place of % of Principal Activities Global Mofy HK Limited (“Global Mofy HK”) October 21, 2021 Hong Kong 100 % Investment holding Mofy Metaverse (Beijing) Technology Co., Ltd (“Global Mofy WFOE”) December 09, 2021 PRC 100 % Investment holding Zhejiang Mofy Metaverse Technology Co., Ltd (“Zhejiang WFOE”) April 03, 2023 PRC 100 % Virtual technology service and digital marketing Global Mofy (Beijing) Technology Co., Ltd. (“Global Mofy China”) November 22, 2017 PRC 100 % Virtual technology service, digital marketing and digital asset development Kashi Mofy Interactive Digital Technology Co., Ltd. (“Kashi Mofy”) July 31, 2019 PRC 100 % Virtual technology service and digital marketing Shanghai Moying Feihuan Technology Co., Ltd. (“Shanghai Mofy”) May 11, 2020 PRC 100 % Virtual technology service and digital marketing Xi’an Shuzi Yunku Technology Co., Ltd (Xi’an Mofy) June 8, 2018 PRC 60 % Virtual technology service Mofy (Beijing) Filming Technology Co., Ltd. (Beijing Mofy) February 7, 2018 PRC 60 % Virtual technology service |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation 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 have been consistently applied for information pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company and its wholly-owned subsidiaries. All transactions and balances between the Company and its subsidiaries have been eliminated upon consolidation. (c) Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. (a) Non-controlling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. For the Company’s consolidated subsidiaries, non-controlling interests represent a minority shareholder’s 40% and 40% ownership interest in Beijing Mofy and Xi’an Mofy as of September 30, 2023 and 2022, respectively. Non-controlling interests are presented as a separate line item in the equity section of the Company’s Consolidated Balance Sheets and have been separately disclosed in the Company’s Consolidated Statements of Comprehensive Income (Loss) to distinguish the interests from that of the Company. (b) In preparing the consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenue and expenses during the reporting periods. Significant items subject to such estimates and assumptions include, but are not limited to, the assessment of the allowance for doubtful accounts, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets, uncertain tax position and valuation allowance for deferred tax assets. Actual results could differ from those estimates. (c) Cash includes cash on hand and demand deposits placed with commercial banks. The Company maintains most of the bank accounts in mainland China. (d) Short-term investments Short-term investments consist of wealth management products issued by private equity fund. During the year ended September 30, 2023, the Company purchased certain wealth management products through private equity fund and accounted for such investments as “short-term investments” and measure the investments at fair value. The Company had a unrealized gain of $30,000 in investments for the year ended September 30, 2023. (e) Accounts receivables are presented net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer payment history, customer’s current credit-worthiness, and current economic trends. Accounts are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. (f) Property and equipment are stated at cost, net of accumulated depreciation and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Expenditures for repairs and maintenance, which do not materially extend the useful lives of the assets, are expensed as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation and amortization are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. Depreciation expense was $514,161 and $27,852 for the years ended September 30, 2023 and 2022, respectively. Estimated useful lives are as follows: Category Estimated useful lives Office equipment 3 years Leasehold improvement Shorter of lease terms and estimated useful lives (g) Intangible assets are digital assets acquired from third-party suppliers, which mainly includes 3D models with finite lives are carried at cost less accumulated amortization and impairment loss, if any. Intangible assets with finite lives are amortized using the straight-line method over the estimated economic live. Estimated useful lives are as follows: Category Estimated useful lives Licensed digital assets 3-5 years (h) Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable or that the useful life is shorter than the Company had originally estimated. When such events occur, the Company evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. No impairment charge was recognized for the years ended September 30, 2023 and 2022. (i) The Company applies ASC 820, Fair Value Measurements and Disclosures ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: ● Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 — Include other inputs that are directly or indirectly observable in the marketplace. ● Level 3 — Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, accounts receivable, advances to vendors, prepaid expenses and other current assets, short-term bank loans, accounts payable, advance from customers, due to related parties, taxes payable, and accrued expenses and other current liabilities approximate their recorded values due to their short-term maturities. The fair value of longer-term leases approximates their recorded values as their stated interest rates approximate the rates currently available. The Company’s non-financial assets, such as property and equipment would be measured at fair value only if they were determined to be impaired. The following table presents the balance of assets measured at fair value on a recurring basis: Level 1 Level 2 Level 3 As of September 30, 2023 Short-term investments $ — $ 780,000 $ — Total $ — $ 780,000 $ — Level 1 Level 2 Level 3 As of September 30, 2022 Short-term investments $ — $ — $ — Total $ — $ — $ — (j) The Company accounted for leases in accordance with ASC Topic 842, Leases. The Company determines if an arrangement is a lease at inception. All the Company’s leases are operating leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate (“IBR”) based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and includes initial direct costs incurred. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expenses for minimum lease payments are recognized on a straight-line basis over the lease term. All operating lease right-of-use assets are reviewed for impairment annually. There was no impairment for operating lease right-of-use lease assets for the years ended September 30, 2023 and 2022. The Company elected not to record assets and liabilities on its consolidated balance sheet for lease arrangements with terms of 12 months or less. The Company recognizes lease expenses for such lease on a straight-line basis over the lease term. (k) The Company adopted ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”) using the modified retrospective approach for the year ended September 30, 2020 and has elected to apply it retrospectively for the year ended September 30, 2019. In accordance with ASC 606, revenues from contracts with customers are recognized when control of the promised goods or services are transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company determines revenue recognition through the following steps: (i) identify the contracts with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when, or as the entity satisfies a performance obligation. The Company’s revenues are derived principally from virtual technology service, digital marketing and digital asset development and others. Value added taxes (“VAT”) are presented as a reduction of revenues. Revenue from virtual technology service The Company engages in virtual content production for visual effect in movies, television series, animations, games, advertisement, tourism, and augmented reality (“AR”) and virtual reality (“VR”) technology etc. The virtual content production contracts are primarily on a fixed price basis, which require the Company to perform services for visual effect design, content development, production and integration based on customers’ specific needs. The required production period is generally less than one year. The virtual content production services are considered as a single performance obligation because the Company provides a significant service of integrating different services underlying each contract, which are highly interdependent and interrelated with one another. The Company currently does not have any modification of contract and the contracts currently do not have any variable consideration. The customer of the virtual content production contract can only obtain control of the produced virtual content after the project is completed. The Company satisfy its performance obligation at a point in time only when it transfers the developed content to the customer. The virtual content are assets when they are developed by the Company. The Company can direct the use of the product and obtain substantially all of the remaining benefits of the asset. The customer can direct the use and obtain benefits of the assets only after the development completed and control transfer occurred from the Company upon acceptance by the customer. The customer does not simultaneously receive or consume the benefits provided by the Company’s performance as the Company performs. The customer can only benefit from the final output of the virtual content as delivered by the Company. The customer does not have control over the content as it is developed. The developed virtual content may be sold as digital assets by the Company and the payment collected in advance based on the contract upon each milestone would be refundable if the Company does not meet the customer’s needs or there is other default. Hence, none of the criteria of ASC 606-10-25-27 is met. Revenue from virtual content production is recognized at a point in time when the Company satisfies the performance obligation by transferring promised virtual content product upon acceptance by customers. Revenue from digital marketing The Company enters into two types of digital marketing contracts directly with customers. For one type of contracts, pursuant to which the Company provides advertisement production and promotion services to customers. The advertisements are in different format, including but not limited to short video, landing pages and static materials. The Company considers that both of the advertisement production and promotion services are highly interrelated and not separately identifiable. The Company’s overall promise represents a combined output that is a single performance obligation; there is no multiple performance obligations. The Company engages third-party advising distributor while providing the promotion services. The Company considers itself as principal of the services as it has control of the specified services at any time before it is transferred to the customers which is evidenced by (i) the Company is primarily responsible for the production of content for advertisements and (ii) having latitude in select third party distributors for promotion and establish pricing. Therefore, the Company acts as the principal of these arrangements and reports revenue earned and costs incurred related to these transactions on a gross basis. Under a framework contract, the Company receives separate purchase orders from customers. Accordingly, each purchase order is identified as a separate performance obligation, containing a bundle of advertisements that are substantially the same and that have the same pattern of transfer to the customer. Where collectability is reasonably assured, revenue is recognized over the service period of the purchase order, which is based on specific action (i.e. cost per mille “CPM”) for online display. The amount of the revenue is the gross billing charged to the customers. Revenue is recognized on a CPM basis as impressions or clicks are delivered through the Group’s display of the advertisements in accordance with the revenue contracts. The Company entered into another type of contracts with advertisers during the fiscal year 2022. Pursuant to which, the Company earns net fees from advertisers by acting as an agent to purchase advertisement inventories and advertise services on behalf of the advertisers. The Company recognizes revenues over the contracted service period. The Company is not a principal in these arrangements as it does not obtain control of ad inventories or advertising services, and therefore recorded net revenues at the difference between the gross billing amount charged to the advertisers and the costs of purchasing ad inventories and advertising services. Revenue from digital asset development and others The Company enters into copyright licensing contracts to authorize production rights, adaption rights, sublicense rights of licensed copyrights and digital assets with entertainment production companies. The licensing provides customers the right to use the Company’s IP as it exists since neither the criteria as stated in ASC 610-10-55-62 is met. The specific licensed copyrights and digital assets authorized to customers are all developed IP, which are unique and do not require ongoing maintenance or effort from the Company to assure the usefulness of the license. The Company is entitled to receive the license fee under the licensing arrangements and does not have any future obligation once it has provided the underlying IP content to the licensee. The Company may use such authorized assets as a base model to produce new digital assets, however, these customers will not be contractually or practically required to use them. The revenue is recognized at a point in time when the licensed copyright and digital asset is made available for the customer’s use and benefit. Disaggregation of revenue The following table summarized disaggregated revenue for the years ended September 30, 2023, 2022 and 2021: For the Years Ended 2023 2022 2021 US$ US$ US$ Category of Revenue Virtual technology service $ 15,382,324 $ 12,536,957 $ 6,722,143 Digital marketing — 632,070 6,191,046 Digital asset development and others 11,507,587 4,019,266 1,354,995 $ 26,889,911 $ 17,188,293 $ 14,268,184 Timing of Revenue Recognition Services transferred at a point in time $ 26,889,911 $ 16,556,223 $ 8,077,138 Services transferred over time — 632,070 6,191,046 $ 26,889,911 $ 17,188,293 $ 14,268,184 Revenue recognized on gross basis $ 26,889,911 $ 16,556,223 $ 14,268,184 Revenue recognized on net basis — 632,070 — $ 26,886,911 $ 17,188,293 $ 14,268,184 Contract balance The Company recognizes accounts receivable in its consolidated balance sheets when it performs a service in advance of receiving consideration and it has the unconditional right to receive consideration. Payments received from its customers are based on the payment terms established in its contracts. Such payments are initially recorded to advance from customers and are recognized into revenue as the Company satisfies its performance obligations. As of September 30, 2023 and 2022, the balance of advance from customers amounted to $345,838 and $1,154,100, respectively. Substantially all of advance from customers will be recognized as revenue during the Company’s following fiscal year. (l) Cost of revenues consists primarily of outsourcing content production cost, amortization cost of intangible assets, payroll and related costs for employees involved with the Company’s operations and product support, such as rental and depreciation expenses. These costs are charged to the consolidated statement of comprehensive income (loss) as incurred. (m) Selling expenses consist primarily of promotion and advertising expenses, staff costs and other daily expenses which are related to the selling and marketing departments. These expenses are charged to the consolidated statement of comprehensive income (loss) as incurred. (n) General and administrative expenses consist primarily of salaries and welfare expenses and related expenses for employees involved in general corporate functions, including accounting, legal and human resources; and costs associated with use by these functions of facilities and equipment, such as traveling and general expenses, professional service fees and other related expenses. These expenses are charged to the consolidated statement of comprehensive income (loss) as incurred. (o) Research and development expenses consist primarily of employee salaries and benefits for research and development personnel, allocated overhead and outsourced development expenses. Cost incurred for the internally developed IP of virtual content, scripts and digital assets to be licensed or sold during the planning and designing stage are expensed when incurred and are included in the research and development expenses. Costs incurred in the development phase subsequent to establishing technological feasibility of such IP are capitalized. During the fiscal years ended September 30, 2023, 2022 and 2021, as no such costs qualified for capitalization, all of the cost incurred for the internally developed IP of virtual content, scripts and digital assets to be licensed or sold are expensed. (p) The Company accounts for income taxes in accordance with ASC 740, Income Taxes. ASC 740 requires an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or future deductibility is uncertain. The Company’s subsidiaries in the PRC and Hong Kong are subject to the income tax laws of the PRC and Hong Kong. No taxable income was generated outside the PRC for the years ended September 30, 2023, 2022 and 2021. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes”, prescribe a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. Tax positions that meet the “more likely than not” recognition threshold are measured, using a cumulative probability approach, at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. The estimated liability for unrecognized tax benefits are periodically assessed for adequacy and may be affected by changing interpretations of laws, rulings by tax authorities, changes and or developments with respect to tax audits, and the expiration of the statute of limitations. Additionally, in future periods, changes in facts and circumstances, and new information may require the Company and its wholly-owned subsidiaries to adjust the recognition and measurement of estimates with regards to changes in individual tax position. Changes in recognition and measurement of estimates are recognized in the period which the change occurs. ASC 740 also provides guidance on the recognition of income tax assets and liabilities, classification accounting for interest and penalties associated with tax positions, years open for tax examination, accounting for income taxes in interim periods and income tax disclosures. As of September 30, 2023 and 2022, there were $1,066,949 and $ nil (q) The Company’s PRC subsidiaries are subject to value added tax (“VAT”) and related surcharges based on gross sales or service price depending on the type of services provided in the PRC (“output VAT”), and the VAT may be offset by VAT paid by the Company on service purchases (“input VAT”). The applicable rate of output VAT or input VAT for the Company is 6%. Gross sales or service price charged to customers is subject to output VAT at a rate of 6% and subsequently paid to PRC tax authorities after netting input VAT on purchases incurred during the period. The Company’s revenues are presented net of VAT collected on behalf of PRC tax authorities and its related surcharges; the VAT is not included in the consolidated statements of comprehensive income (loss). All of the VAT returns filed by the Company’s subsidiaries in the PRC, have been and remain subject to examination by the tax authorities for five years from the date of filing. (r) The Company computes earnings (loss) 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 are computed by dividing net income (loss) available to ordinary shareholders of the Company by the weighted average ordinary shares outstanding during the period. Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares. Potential ordinary share that has an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted earnings per share. For the years ended September 30, 2023 and 2022, there were no dilutive shares. (s) The reporting currency of the Company is U.S. dollars (“US$”) and the accompanying consolidated financial statements have been expressed in US$. The Company’s principal country of operations is the PRC. The financial position and results of its operations are determined using the Chinese Yuan (“RMB”), the local currency, as the functional currency. The Company’s consolidated financial statements have been translated into the reporting currency, US$. The results of operations and the consolidated statements of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in equity (deficit). Gains and losses from foreign currency transactions and balances are included in the results of operations. The value of RMB against US$ and other currencies may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of RMB may materially affect the Company’s financial condition in terms of US$ reporting. The following table outlines the currency exchange rates that were used in preparing the consolidated financial statements: September 30, September 30, Year-end spot rate 7.2960 7.1135 For the Years Ended 2023 2022 2021 Average rate 7.0553 6.5532 6.5072 (t) ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and the types of customers to help users of financial statements to better understand the Company’s performance, assess its prospects for future cash net cash flow and make more informed judgements about the Company in a whole. The Company uses the management approach to determine reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Company’s CODM has been identified as the CEO, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. Based on the management’s assessment, the Company determined that it has only one operating segment and therefore one reportable segment as defined by ASC 280. The Company’s assets are substantially all located in the PRC and substantially all of the Company’s revenue and expense are derived in the PRC. Therefore, no geographical segments are presented. (u) Currency convertibility risk Substantially all of the Company’s operating activities are settled in RMB, which 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 Company foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. Concentration and credit risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. The Company maintains certain bank accounts in the PRC, Hong Kong and Cayman. As of September 30, 2023 and 2022, cash balances in the PRC are $10,195,088 and $1,131,886, respectively. On May 1, 2015, China’s new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as commercial banks, established in the PRC are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them. Such Deposit Insurance Regulation would not be effective in providing complete protection for the Company’s accounts, as its aggregate deposits are much higher than the compensation limit, which is RMB500,000 for one bank. Other than such deposit insurance mechanism, the Company’s bank accounts are not insured by Federal Deposit Insurance Corporation insurance or other insurance. However, the Company believes that the risk of failure of any of these Chinese banks is remote. Bank failure is uncommon in the PRC and the Company believes that those Chinese banks that hold the Company’s cash are financially sound based on public available information. Accounts receivables are typically unsecured and derived from services rendered to customers that are located in China, thereby exposed to credit risk. The risk is mitigated by the Company’s assessment of customers’ creditworthiness and its ongoing monitoring of outstanding balances. The Company has a concentration of its accounts receivable with specific customers. Major Customers For the year ended September 30, 2023, one customer accounted for approximately 10% of total revenues. As of September 30, 2023, the balance due from four customers accounted for approximately 23%, 16%, 16% and 15% of the Company’s total accounts receivable, respectively. For the year ended September 30, 2022, two customers accounted for approximately 20% and 17% of total revenues, respectively. As of September 30, 2022, the balance due from three customers accounted for approximately 42%, 24% and 21% of the Company’s total accounts receivable, respectively. For the year ended September 30, 2021, three customers accounted for approximately 20%, 10% and 10% of total revenues, respectively. Major Suppliers For the year ended September 30, 2 |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Sep. 30, 2023 | |
Accounts Receivable, Net [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 3 — ACCOUNTS RECEIVABLE, NET Accounts receivable, net consisted of the following: As of 2023 2022 US$ US$ Accounts receivable $ 3,682,126 $ 2,106,445 Less: allowance for doubtful accounts (395,796 ) (4,780 ) Accounts receivable, net $ 3,286,330 $ 2,101,665 The movement of allowance of doubtful accounts is as follows: As of 2023 2022 US$ US$ Balance at beginning of the year $ 4,780 $ 21,635 Addition 404,595 45,649 Write-off — (61,734 ) Foreign exchange translation (13,579 ) (770 ) Balance at end of the year $ 395,796 $ 4,780 |
Advance to Vendors
Advance to Vendors | 12 Months Ended |
Sep. 30, 2023 | |
Advance to Vendors [Abstract] | |
ADVANCE TO VENDORS | NOTE 4 — ADVANCE TO VENDORS Advance to vendors consisted of the following: As of 2023 2022 US$ US$ Prepayments for virtual technology services $ 277,952 $ 567,736 Prepayments for digital marketing — 400,042 Prepayments for digital assets development 3,723,351 2,375,516 Subtotal 4,001,303 3,343,294 Less: allowance for doubtful accounts (386,542 ) — 3,614,761 3,343,294 Less: advance to vendors - noncurrent 1,020,874 1,800,000 Advance to vendors – current $ 2,593,887 $ 1,543,294 Advance to vendors primarily consisted of prepayments for virtual technology services, digital marketing and digital assets development outsourced to third party vendors. As of September 30, 2023 and 2022, allowance recorded of $386,542 and $ nil |
Loans Receivable, Net
Loans Receivable, Net | 12 Months Ended |
Sep. 30, 2023 | |
Loans Receivable, Net [Abstract] | |
LOANS RECEIVABLE, NET | NOTE 5 — LOANS RECEIVABLE, NET Loans receivable, net consisted of the following: As of 2023 2022 US$ US$ Wuyuan Yangyang Culture Media Studio (a) $ 287,829 $ 295,213 Less: allowance for doubtful accounts — — Total loans receivable, net – current $ 287,829 $ 295,213 Wuyuan Yangyang Culture Media Studio (a) $ — $ — Pingnan Motian Culture Media Studio (b) 438,596 449,849 Hanning Jin (c) 8,909 9,137 $ 447,505 $ 458,986 Less: allowance for doubtful accounts — — Total loans receivable, net – noncurrent $ 447,505 $ 458,986 Total loans receivable, net $ 735,334 $ 754,199 (a) On June 28, 2020, Global Mofy China entered into a loan agreement with a third party, Wuyuan Yangyang Culture Media Studio (“Yangyang”) to lend $712,854 (or RMB 4,840,000) for its working capital needs with a fixed interest rate of 5.2% per annum. The amount of $356,427 (or RMB2,420,000) of the loan was due on December 31, 2020. The remaining amount of $356,427 (or RMB2,420,000) of the loan was due on June 28, 2022. A total of $363,162 (or RMB2,340,000) of the loan was collected in January 2021. A total of $63,098 (or RMB400,000) of the loan was collected in November 2021. On June 28, 2022, Global Mofy China renewed the loan agreement with Yangyang to extend the loan term of the loan receivable balance of $295,213 (or RMB2,100,000) for its working capital needs for one year and interest rate remained the original fixed rate of 5.2% per annum. On June 28, 2023, Global Mofy China renewed the loan with Yangyang for one year at an annual rate of 5.2%. (b) On October 20, 2020, Global Mofy China entered into a loan agreement with a third party, Pingnan Motian Culture Media Studio (“Pingnan”) to lend $496,632 (or RMB 3,200,000) for its working capital needs with a maturity date of October 20, 2022. The loan bores a fixed interest rate of 5.2% per annum. On October 20, 2022, Global Mofy China renewed the loan agreement with Pingnan to extend the loan term of the loan receivable balance of $449,849 (or RMB3,200,000) for its working capital needs for one year and interest rate remained the original fixed rate of 5.2% per annum. On October 20, 2023, Global Mofy China renewed the loan with Pingnan for one year at an annual rate of 5.2%. (c) On January 14, 2021, Global Mofy China entered into an interest-free loan agreement with Hanning Jin, a third party individual, to lend $10,088 (or RMB65,000) for working capital needs with a maturity date of January 14, 2023. On January 14, 2023, Global Mofy China renewed the interest-free loan agreement with Hanning Jin to extend the loan term of the loan receivable balance of $9,137 (or RMB65,000) for its working capital needs for one year. In January 2024, Global Mofy China renewed the interest-free loan with Hanning Jin for one year. For the years ended September 30, 2023, 2022 and 2021, interest income related to the above loans amounted to $39,074 (or RMB275,600), $42,456 (or RMB278,221) and $42,164 (or RMB274,370), respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Sep. 30, 2023 | |
Intangible Assets, Net [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 6 — INTANGIBLE ASSETS, NET Intangible assets, net consisted of the following: As of Gross Accumulated US$ US$ Intangible assets Licensed digital assets $ 6,918,572 $ (412,780 ) Total $ 6,918,572 $ (412,780 ) Aggregate Amortization expenses: For year ended 9/30/2023 $ 412,780 Estimated Amortization Expenses: For year ended 9/30/2024 $ 1,512,046 For year ended 9/30/2025 $ 1,507,914 For year ended 9/30/2026 $ 1,287,201 For year ended 9/30/2027 $ 1,197,414 For year ended 9/30/2028 $ 1,001,217 The movement of intangible assets is as follows: As of Gross Accumulated US$ US$ Balance at beginning of the year $ — $ — Additions (a) 6,918,572 426,983 Disposal — — Foreign exchange translation — (14,203 ) Balance at end of the year $ 6,918,572 $ 412,780 (a) Additions are all acquired from third-party suppliers in the current year. Amortization expense was $426,983 and $ nil |
Leases
Leases | 12 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
LEASES | NOTE 7 — LEASES The Company’s leasing activities primarily consist of three operating leases for offices. ASC 842 requires leases to recognize right-of-use assets and lease liabilities on the balance sheet. The Company has elected an accounting policy to not recognize short-term leases (one year or less) on the balance sheet. As of 2023 2022 US$ US$ Operating lease right-of-use assets $ 954,771 $ 147,099 Operating lease liabilities – current $ 293,040 $ 120,418 Operating lease liabilities – noncurrent 556,674 — Total operating lease liabilities $ 849,714 $ 120,418 The weighted-average remaining lease term and the weighted-average discount rate of leases are as follows: As of 2023 2022 Weighted-average remaining lease term (years) 2.45 1.96 Weighted-average discount rate 4.75 % 4.75 % During the years ended September 30, 2023, 2022 and 2021, the Company incurred total operating lease expenses of $196,500, $163,552 and $164,899, respectively. The following table summarizes the maturity of operating lease liabilities as of September 30, 2023: 12 months ending September 30, Operating US$ 2024 $ 328,558 2025 280,700 2026 302,764 Thereafter — Total lease payments 912,022 Less: imputed interest (62,308 ) Total lease liabilities $ 849,714 |
Short-Term Bank Loans
Short-Term Bank Loans | 12 Months Ended |
Sep. 30, 2023 | |
Short-Term Bank Loans [Abstract] | |
SHORT-TERM BANK LOANS | NOTE 8 — SHORT-TERM BANK LOANS Short-term bank loans represent amounts due to various banks maturing within one year. The principal of the borrowings is due at maturity. Accrued interest is due either monthly or quarterly. Short-term borrowings consisted of the following: As of 2023 2022 US$ US$ Bank of China (1) $ — $ 421,733 Bank of Nanjing (2) 411,184 421,733 Bank of Huaxia (3) 1,370,614 702,889 Bank of Hangzhou (4) 685,307 — Deferred financing costs (5) (24,496 ) (14,282 ) Total $ 2,442,609 $ 1,532,073 (1) On September 30, 2021, Global Mofy China entered into a loan agreement with Bank of China to obtain a loan of $310,395 (or RMB 2,000,000) for a term from September 30, 2021 to September 29, 2022 at a fixed annual interest rate of 3.85%. The loan is guaranteed by a third party, Beijing Shichuang Tongsheng Financing Guarantee Limited. The Company repaid the loan in advance on September 15, 2022. On September 19, 2022, the Company entered into a new loan agreement with Bank of China to obtain a loan of $421,733 (or RMB 3,000,000) for the period from September 19, 2022 to September 19, 2023 with a floating annual interest rate. The loan is guaranteed by a third party, Beijing Shichuang Tongsheng Financing Guarantee Limited. The Company is required to make quarterly interest payment with principal due at maturity. The Company repaid the loan in full upon maturity on September 19, 2023. (2) On March 12, 2021, Global Mofy China entered into a loan agreement with Bank of Nanjing to obtain a loan of $155,198 (or RMB1,000,000) for a term from March 12, 2021 to March 11, 2022. The loan was fully repaid on March 11, 2022. On July 29, 2021, Global Mofy China entered into another loan agreement with Bank of Nanjing to obtain a loan of $155,198 (or RMB1,000,000) for a term from July 29, 2021 to July 28, 2022. Both of these loans bore a fixed annual interest rate of 6.08%. On July 29, 2022, the Company renewed the loan agreement with Bank of Nanjing to obtain a loan of $140,578 (or RMB1,000,000) for the period from July 29, 2022 to July 29, 2023 with an annual interest rate of 6%. The Company repaid the loan on July 31, 2023. On March 31, 2022, Global Mofy China and Bank of Nanjing entered into a loan agreement to borrow $281,155 (or RMB2,000,000) of loan for the period from March 31, 2022 to March 31, 2023 with an annual interest rate of 6.0%. Mr. Haogang, Yang, the Chairman of the Company’s board of directors and CEO, together with his wife, Ms. Dong Mingxing, guaranteed the repayment of these loans. The Company repaid the loan in advance on March 16, 2023. On March 17, 2023, Global Mofy China and Bank of Nanjing entered into a loan agreement to borrow $274,123 (or RMB2,000,000) of loan for the period from March 17, 2023 to March 17, 2024 with an annual interest rate of 6%. Mr. Haogang, Yang, the Chairman of the Company’s board of directors and CEO, together with his wife, Ms. Dong Mingxing and Ms. Wenjun Jiang, the CTO of the Company, guaranteed the repayment of these loans. On September 20, 2023, Global Mofy China and Bank of Nanjing entered into a loan agreement to borrow $137,061 (or RMB1,000,000) of loan for the period from September 20, 2023 to September 20, 2024 with an annual interest rate of 5.5%. Mr. Haogang, Yang, the Chairman of the Company’s board of directors and CEO, together with his wife, Ms. Dong Mingxing, guaranteed the repayment of these loans. (3) On November 14, 2021, Global Mofy China and Huaxia Bank entered into a loan agreement to borrow $126,197 (or RMB800,000) of loan for the period from November 14, 2021 to November 14, 2022 with an annual interest rate of 5.225%. The Company’s CEO, Mr. Haogang Yang, and his wife, Ms. Mingxing Dong, provided guarantee to this loan. The Company is required to make monthly interest payment with principal due at maturity. On July 8, 2022, the Company repaid loan in advance. On July 27, 2022, Global Mofy China and Huaxia Bank entered into a loan agreement to borrow $702,889 (or RMB5,000,000) of loan for the period from July 27, 2022 to July 27, 2023 with a floating annual interest rate. The loan is guaranteed by a third party, Beijing Zhongguancun Technology Financing Guarantee Limited. The Company is required to make monthly interest payment with principal due at maturity. The Company repaid the loan on July 31, 2023. On March 17, 2023, Global Mofy China and Huaxia Bank entered into a loan agreement to borrow $685,307 (or RMB5,000,000) of loan for the period from March 17, 2023 to March 17, 2024 with a floating annual interest rate. The loan is guaranteed by a third party, Beijing Zhongguancun Technology Financing Guarantee Limited. On August 30, 2023, Global Mofy China and Huaxia Bank entered into a loan agreement to borrow $685,307 (or RMB5,000,000) of loan for the period from August 30, 2023 to August 30, 2024 with a floating annual interest rate. The loan is guaranteed by a third party, Beijing Zhongguancun Technology Financing Guarantee Limited. (4) On February 13, 2023, Global Mofy China entered into a loan agreement with Bank of Hangzhou to obtain a loan of $274,123 (or RMB 2,000,000) for a term from February 13, 2023 to February 12, 2024 at a fixed annual interest rate of 4.35%. The loan is guaranteed by a third party, Beijing Yizhuang Guoji Financing Guarantee Limited. On March 30, 2023, Global Mofy China entered into a loan agreement with Bank of Hangzhou to obtain a loan of $411,184 (or RMB 3,000,000) for a term from March 30, 2023 to December 29, 2023 at a fixed annual interest rate of 4.35%. The Company’s CEO, Mr. Haogang Yang, and his wife, Ms. Mingxing Dong, provided guarantee to this loan. The Company repaid the loan in full upon maturity on December 29, 2023. (5) In order to obtain the guarantees provided by the third-party guaranty company for the loans from banks, the Company incurred guarantee fees, which are deferred and presented on the consolidated balance sheets as a direct deduction from the carrying amount of the loans and amortized to interest expense over the term of the associated loans. For the years ended September 30, 2023 and 2022, the weighted average annual interest rate for the bank loans was approximately 5.49% and 4.35%, respectively. Interest expenses for the above-mentioned loans amount to $126,206, $74,888 and $25,183 for the years ended September 30, 2023, 2022 and 2021, respectively. |
Loans from Third Parties
Loans from Third Parties | 12 Months Ended |
Sep. 30, 2023 | |
Loans from Third Parties [Abstract] | |
LOANS FROM THIRD PARTIES | NOTE 9 — LOANS FROM THIRD PARTIES As of 2023 2022 US$ US$ Loans from third parties – current $ 22,615 $ 108,245 Loans from third party – noncurrent — 107,542 Total loans from third parties $ 22,615 $ 215,787 As of September 30, 2022, the balance of $108,245 (or RMB770,000) represented the interest-free loan borrowed from Beijing Angel Palace Education Technology Co., Ltd. (“Angel Palace”) for the Company’s working capital purpose, with the maturity date due on March 9, 2023. In June 2023, the Company signed a virtual technology service contract with Angel Palace to provide virtual production with the consideration of RMB770,000 to offset the loan from Angel Palace. As of September 30, 2023, the service was delivered and accepted by Angel Palace. As of September 30, 2022, the balance of $107,542 (or RMB765,000) represented the interest-free loan borrowed from Wuxi Huanxiang Culture Co., Ltd. (“Wuxi Huangxiang”) for the Company’s working capital purpose with the maturity date due on January 24, 2023. On January 24, 2023, Global Mofy China renewed the loan agreement with Wuxi Huanxiang to extend the loan term of the interest-free loan with the balance of $107,542 (or RMB765,000) for the Company’s working capital needs for one year. Accordingly, the outstanding loan balance as of September 30, 2022 was classified as noncurrent. The loan of $82,237 (or RMB600,000) was early repaid by the Company in January 2023. |
Related Party Transactions and
Related Party Transactions and Balances | 12 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions and Balances [Abstract] | |
RELATED PARTY TRANSACTIONS AND BALANCES | NOTE 10 — RELATED PARTY TRANSACTIONS AND BALANCES Nature of relationships with related parties: Name Relationship with the Company Mr. Jianru Yang Business Development Director of the Company Mr. Yuchao Lu Directly hold a 5.05% equity interest in the Company Ms. Yang Li Finance Controller of the Company Lianyungang Zongteng Film Studio Controlled by Mr. Yuchao Lu Moxing Shangxing (Beijing) Technology Co., Ltd Controlled by Mr. Jianru Yang Mofy Filming (Hainan) Co., Ltd. (“Mofy Hainan”) Ms. Yang li is the Finance Controller of Mofy Hainan Transactions with related parties For the Years Ended 2023 2022 US$ US$ Revenue earned from related parties Mofy Filming (Hainan) Co., Ltd. $ — $ 1,439,596 Moxing Shangxing (Beijing) Technology Co., Ltd (a) — 1,208,397 $ — $ 2,647,993 Service fees charged by related party Lianyungang Zongteng Film Studio $ — $ 10,808 Balances with related parties As of September 30, 2023 and 2022, the balances with related parties were as follows: As of 2023 2022 US$ US$ Accounts receivable – related party Moxing Shangxing (Beijing) Technology Co., Ltd $ — $ 298,587 Due from related party Moxing Shangxing (Beijing) Technology Co., Ltd (a) $ — $ 182,751 (a) As of September 30, 2022, the balance of $182,751 (or RMB1,300,000) represented the interest-free loan lend to Moxing Shangxing (Beijing) Technology Co., Ltd. for the working capital purpose, with the maturity date due on August 24, 2023. The loan was fully collected in December 2022. |
Taxes
Taxes | 12 Months Ended |
Sep. 30, 2023 | |
Taxes [Abstract] | |
TAXES | NOTE 11 — TAXES Corporation Income Tax (“CIT”) Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders. Hong Kong Global Mofy HK is incorporated in Hong Kong and is subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate for the first HKD$2 million of assessable profits is 8.25% and assessable profits above HKD$2 million will continue to be subject to the rate of 16.5% for corporations in Hong Kong, effective from the year of assessment 2018/2019. Global Mofy HK did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since inception. Under Hong Kong tax laws, Global Mofy HK is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. PRC Under the Enterprise Income Tax (“EIT”) Law of the PRC, domestic enterprises and Foreign Investment Enterprises (the “FIE”) are usually subject to a unified 25% EIT rate while preferential tax rates, tax holidays, and even tax exemption may be granted on case-by-case basis. Kashi Mofy is subject to a five- year income tax holiday since generating revenues, as it is incorporated in the Kashi Economic District, Xinjiang province. The five-year income tax holiday of Kashi Mofy will end on December 31, 2023. In accordance with the implementation rules of EIT Laws, a qualified “High and New Technology Enterprise” (“HNTE”) is eligible for a preferential tax rate of 15%. The HNTE certificate is effective for a period of three years. An entity could re-apply for the HNTE certificate when the prior certificate expires. “05-Global Mofy China” obtained its HNTE certificate on October 21, 2020 and re-applied its HNTE certificate on October 26,2023. Therefore, “05-Global Mofy China” is eligible to enjoy a preferential tax rate of 15% from 2020 to 2025 to the extent it has taxable income under the EIT Law. The Company’s pre-tax income (loss) is derived from the following tax jurisdictions: For the years ended 2023 2022 2021 US$ US$ US$ PRC $ 8,637,772 $ (180,032 ) $ 1,424,159 HK (30 ) (2,136 ) — Cayman (988,396 ) (83,073 ) — Income (loss) before income taxes $ 7,649,346 $ (265,241 ) $ 1,424,159 The provision for income tax consisted of the following: For the years ended 2023 2022 2021 US$ US$ US$ Current income tax expense $ 1,098,087 $ — $ 9,992 Deferred income tax benefit — — — Income tax provision $ 1,098,087 $ — $ 9,992 The following table reconciles the statutory rate to the Company’s effective tax rate: For the Years Ended 2023 2022 2021 PRC statutory tax rate 25.0 % 25.0 % 25.0 % Effect of tax holiday and preferential tax rate (a) (14.2 )% (11.6 )% (21.0 )% Effect of tax rate in a foreign jurisdiction 3.2 % (7.8 )% — % Additional deduction for R&D expenses (1.0 )% Non-deductible expenses 0.1 % (10.6 )% 2.8 % Operating income offset loss carryforward — % — % — % Change of tax rate — % — % — % Change in valuation allowance 1.2 % 5.0 % (6.1 )% Effective tax rate 14.3 % (0.0 )% 0.7 % (a) The Company’s subsidiaries, Global Mofy China, Kashi Mofy, Shanghai Mofy, Xi’an Mofy and Beijing Mofy are subject to different favorable tax rates and tax holiday for the years ended September 30, 2023 and 2022. For the years ended September 30, 2023 and 2022, as for the years ended September 30, 2022 is a negative amount, there is not a tax saving, the tax saving as the result of the favorable tax rate and tax holiday amounted to $1,086,519 and $ nil Deferred tax assets and liabilities Components of deferred tax assets and liabilities were as follows: As of 2023 2022 US$ US$ Provision for doubtful debt $ 110,374 $ 773 Tax loss carry forwards 70,341 75,595 Operating lease liabilities 133,489 — Total deferred tax assets 314,204 76,368 Less: Valuation allowance (162,974 ) (76,368 ) Total deferred tax assets, net of valuation allowance $ 151,230 $ — As of September 30, 2023, the Company has total of net operating loss carry forward of approximately $0.4 million in the PRC that expire from 2025 through 2028. As of 2023 2022 US$ US$ Right of use assets $ 151,230 $ — Total deferred tax liabilities 151,230 — Total deferred tax assets, net $ — $ — The roll forward of valuation allowance of deferred tax assets were as follows: As of 2023 2022 US$ US$ Balance as of beginning of year $ (76,368 ) $ (97,933 ) Additions of valuation allowance (134,811 ) 21,565 Reductions of valuation allowance 43,249 — Exchange difference 4,956 — Balance as of end of year $ (162,974 ) $ (76,368 ) The Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets, which are composed principally of net operating loss carryforwards. Under the applicable accounting standards, management expects to continue to maintain a significant investment in research and development, given the Company’s history of losses, as the Company increases research and development of its digital assets in the future. At the same time, the Company’s management believes that customer development for digital assets and the Company’s visibility in the digital assets industry will take several years to build, which will result in the Company continuing to lose money over the next few years. So the management concluded that it is more likely than not that the Company will not generate future taxable income prior to the expiration of the majority of net operating losses, and it was considered that valuation allowance should be fully accrued. Accordingly, as of September 30, 2023 and 2022, a $162,974 and $76,368 valuation allowance has been established respectively. Uncertain Tax Position A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows: As of 2023 2022 US$ US$ Balance as of beginning of year $ — $ — Increase related to prior year tax positions 5,639 — Increase related to current year tax positions 1,061,310 — Balance as of end of year $ 1,066,949 $ — As of September 30, 2023 and 2022, there were $1,066,949 and $nil The company recognizes interest and penalty charges related to uncertain tax positions as necessary in the provision for income taxes. For the years ended September 30, 2023 and 2022, no interest expense or penalty was accrued in relation to the unrecognized tax benefit. The Company has a liability for accrued interest of $nil In general, the PRC tax authority has up to five years to contact examinations of the Company’s tax filings. As of September 30, 2023, tax years ended December 31, 2018 through December 31, 2022 for the Company’s PRC subsidiaries remain open for statutory examination by PRC tax authorities. Tax payable The tax payable consisted of the following: As of 2023 2022 US$ US$ VAT payable $ 487,744 $ 468,586 Corporate income tax payable 1,066,949 5,784 Other tax 366 — Tax payable $ 1,555,059 $ 474,370 |
Equity
Equity | 12 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
EQUITY | NOTE 12 — EQUITY Ordinary shares The Company was established under the laws of the Cayman Islands on September 29, 2021. The authorized number of ordinary shares upon incorporation of the Company was 5,000,000,000 shares with a par value of $0.00001 per share, and 5,000,000 ordinary shares were issued on September 29, 2021. On January 15, 2022, the Company issued 130,631 ordinary shares at par value $0.00001 per share to a new investor, Viru Technology Limited (the “Viru Technology”). The total cash consideration of $2,000,000 was received in April 2022. On September 16, 2022, the Company’s shareholders and Board of Directors approved a 1-to-5 share split, following which the authorized share capital of $50,000 was divided into 25,000,000,000 ordinary shares with a par value of $0.000002 each, and the issued shares was divided into 25,000,000 ordinary shares. On September 16, 2022, all the existing shareholders of the Company surrendered a total of 1,653,155 ordinary shares of $0.000002 par value each for no consideration, of which 41,155 ordinary shares were surrendered by Viru Technology. The Company has cancelled the 1,653,155 of surrendered shares concurrently. The Company believes its is appropriate to reflect the share split on a retrospective basis pursuant to ASC 260. The Company has retrospectively restated all shares and per share data for all periods presented. On November 15, 2022, all existing shareholders surrendered in an aggregative of 381,963 ordinary shares on a pro-rata basis for no consideration. The Company has cancelled the 381,963 of surrendered shares concurrently. On the same day, the Company, together with Mr. Haogang Yang, our founder and CEO, certain BVI founder entities and all its subsidiaries in Hong Kong and mainland China, entered into an equity investment agreement with Standard International Capital Partners SPC (for and on behalf of Standard International Capital Partners Fund I SP), a segregated portfolio company organized and existing under the laws of the Cayman Islands (the “Investor”), pursuant to which the Investor agreed to invest $1.5 million in Global Mofy Cayman for 381,963 ordinary shares. On February 10, 2023, the Company entered into a share purchase agreement with Anguo Jijian Enterprise Management Co., Ltd (“Anguo”), Anjiu Jiheng Enterprise Management Co., Ltd (“Anjiu”), and Anling Management Co., Ltd (“Anling”), pursuant to which the Company issued 740,829, 740,829, and 444,497 ordinary shares, par value US$0.000002, to Anguo, Anjiu, and Anling, respectively, for an aggregate issue price of $9.4 million (RMB65,000,000). All of the $9.4 million was received at the end of March 2023. As a result, there were 25,926,155 and 23,618,037 ordinary shares issued and outstanding as of September 30, 2023 and 2022, respectively. Statutory reserve In accordance with the PRC Company Laws, the Company’s subsidiaries in the PRC are required to provide for statutory reserves, which are appropriated from net profit as reported in the Company’s PRC statutory accounts. They are required to allocate 10% of their after-tax profits to fund statutory reserves until such reserves have reached 50% of their respective registered capital. These reserve funds, however, may not be distributed as cash dividends. As of September 30, 2023 and 2022, the statutory reserves of the Company’s PRC subsidiaries have not reached 50% of their respective registered capital. As of September 30, 2023 and 2022, the Company’s PRC subsidiaries collectively attributed $368,271 and $39,620 of retained earnings for their statutory reserves, respectively. Restricted net assets The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries. Foreign exchange and other regulations in the PRC may further restrict the Company’s subsidiaries from transferring funds to the Company in the form of dividends, loans and advances. Amounts restricted include paid-in capital and statutory reserves of the Company’s PRC subsidiaries as determined pursuant to PRC generally accepted accounting principles. As of September 30, 2023 and 2022, restricted net assets of the Company’s PRC subsidiaries were $4,100,499 and $3,151,848, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 13 — SUBSEQUENT EVENTS In October 2023, the Company completed initial public offering, issued and sold 1,240,000 Ordinary Shares, of which 1,200,000 shares related to the public offering, and 40,000 shares to an over-allotment arrangement, at $5.00 per share for $6.2 million. The net proceeds of $4.9 million after deducting underwriting discounts and the offering expenses payable was received by the Company. In December 2023, the Company issued and sold 1,379,313 Ordinary Shares accompanying warrants of 2,068,970 shares to two mutual funds established in North America, at $7.25 per share for $10.0 million. The net proceeds of $8.9 million was received on January 4, 2024. On January 4, 2024, in Los Angeles, the Company established a wholly-owned subsidiary, Global Mofy Technology LLC (“Global Mofy US”), a business company incorporated in accordance with the laws and regulations of the United States, to develop and expand overseas business. On January 11, 2024, the Company announced its strategic investment in MERAEDU, marking its entrance into the vocation education sector. The RMB 8 million funding round was led by the Anji Country Government Industrial Guidance Fund, with Global Mofy Metaverse as a co-investor. |
Condensed Financial Information
Condensed Financial Information of the Parent Company | 12 Months Ended |
Sep. 30, 2023 | |
Condensed Financial Information of the Parent Company [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | NOTE 14 — CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY The Company performed a test on the restricted net assets of the consolidated subsidiaries in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial information for the parent company only. The subsidiaries did not pay any dividends to the Company for the periods presented. Certain information and footnote disclosures generally included in the financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. These statements should be read in conjunction with the notes to the consolidated financial statements of the Company. 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 investments in its subsidiaries. The following represents condensed financial information of the parent company: BALANCE SHEETS As of 2023 2022 ASSETS Cash $ 235,014 $ 4,170 Short-term investments 780,000 — Due from subsidiaries 10,630,138 1,870,008 Prepaid expenses and other current assets, net 105,000 — Prepaid expenses and other noncurrent assets, net 163,589 92,722 Investment in subsidiaries 11,103,806 2,967,699 Total Assets $ 23,017,547 $ 4,934,599 LIABILITIES AND EQUITY Current liabilities Accrued expenses and other liabilities $ 62,157 $ 49,973 Total current liabilities 62,157 49,973 Equity: Common stock (US$0.000002 par value, 25,000,000,000 shares authorized, 25,926,155 and 23,618,037 shares issued and outstanding as of September 30, 2023 and 2022, respectively) 52 47 Additional paid-in capital 16,035,229 5,112,181 Statutory reserves 368,271 39,620 Accumulated deficit 6,551,838 (267,222 ) Total equity 22,955,390 4,884,626 Total liabilities and shareholders’ equity $ 23,017,547 $ 4,934,599 STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Years Ended 2023 2022 2021 (a) Operating expenses: General and administrative expenses (611,474 ) (83,073 ) — Equity income (loss) in subsidiaries 7,163,312 (184,149 ) — Net income (loss) 6,551,838 (267,222 ) — Foreign currency translation adjustment — — — Comprehensive income (loss) $ 6,551,838 $ (267,222 ) $ — (a) The Company was established on September 29, 2021 and has no operation for the year ended September 30, 2021. STATEMENTS OF CASH FLOWS For the Years Ended 2023 2022 2021 (a) Net cash used in investing activities $ (10,621,341 ) $ (1,903,038 ) $ — Net cash provided by financing activities 10,852,185 1,907,208 — Effect of exchange rate changes on cash — — — Net increase in cash 230,844 4,170 — Cash at the beginning of the year 4,170 — — Cash at the end of the year $ 235,014 4,170 $ — (a) The Company was established on September 29, 2021 and has no operation for the year ended September 30, 2021. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of presentation | (a) Basis of presentation 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 have been consistently applied for information pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). |
Principles of consolidation | (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company and its wholly-owned subsidiaries. All transactions and balances between the Company and its subsidiaries have been eliminated upon consolidation. |
Emerging Growth Company | (c) Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. |
Non-controlling interests | (a) Non-controlling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. For the Company’s consolidated subsidiaries, non-controlling interests represent a minority shareholder’s 40% and 40% ownership interest in Beijing Mofy and Xi’an Mofy as of September 30, 2023 and 2022, respectively. Non-controlling interests are presented as a separate line item in the equity section of the Company’s Consolidated Balance Sheets and have been separately disclosed in the Company’s Consolidated Statements of Comprehensive Income (Loss) to distinguish the interests from that of the Company. |
Use of estimates | (b) In preparing the consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenue and expenses during the reporting periods. Significant items subject to such estimates and assumptions include, but are not limited to, the assessment of the allowance for doubtful accounts, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets, uncertain tax position and valuation allowance for deferred tax assets. Actual results could differ from those estimates. |
Cash | (c) Cash includes cash on hand and demand deposits placed with commercial banks. The Company maintains most of the bank accounts in mainland China. |
Short-term investments | (d) Short-term investments Short-term investments consist of wealth management products issued by private equity fund. During the year ended September 30, 2023, the Company purchased certain wealth management products through private equity fund and accounted for such investments as “short-term investments” and measure the investments at fair value. The Company had a unrealized gain of $30,000 in investments for the year ended September 30, 2023. |
Accounts receivable, net | (e) Accounts receivables are presented net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer payment history, customer’s current credit-worthiness, and current economic trends. Accounts are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Property and equipment, net | (f) Property and equipment are stated at cost, net of accumulated depreciation and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Expenditures for repairs and maintenance, which do not materially extend the useful lives of the assets, are expensed as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation and amortization are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. Depreciation expense was $514,161 and $27,852 for the years ended September 30, 2023 and 2022, respectively. Estimated useful lives are as follows: Category Estimated useful lives Office equipment 3 years Leasehold improvement Shorter of lease terms and estimated useful lives |
Intangible assets, net | (g) Intangible assets are digital assets acquired from third-party suppliers, which mainly includes 3D models with finite lives are carried at cost less accumulated amortization and impairment loss, if any. Intangible assets with finite lives are amortized using the straight-line method over the estimated economic live. Estimated useful lives are as follows: Category Estimated useful lives Licensed digital assets 3-5 years |
Impairment of long-lived assets other than goodwill | (h) Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable or that the useful life is shorter than the Company had originally estimated. When such events occur, the Company evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. No impairment charge was recognized for the years ended September 30, 2023 and 2022. |
Fair value of financial instruments | (i) The Company applies ASC 820, Fair Value Measurements and Disclosures ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: ● Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 — Include other inputs that are directly or indirectly observable in the marketplace. ● Level 3 — Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, accounts receivable, advances to vendors, prepaid expenses and other current assets, short-term bank loans, accounts payable, advance from customers, due to related parties, taxes payable, and accrued expenses and other current liabilities approximate their recorded values due to their short-term maturities. The fair value of longer-term leases approximates their recorded values as their stated interest rates approximate the rates currently available. The Company’s non-financial assets, such as property and equipment would be measured at fair value only if they were determined to be impaired. The following table presents the balance of assets measured at fair value on a recurring basis: Level 1 Level 2 Level 3 As of September 30, 2023 Short-term investments $ — $ 780,000 $ — Total $ — $ 780,000 $ — Level 1 Level 2 Level 3 As of September 30, 2022 Short-term investments $ — $ — $ — Total $ — $ — $ — |
Leases | (j) The Company accounted for leases in accordance with ASC Topic 842, Leases. The Company determines if an arrangement is a lease at inception. All the Company’s leases are operating leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate (“IBR”) based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and includes initial direct costs incurred. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expenses for minimum lease payments are recognized on a straight-line basis over the lease term. All operating lease right-of-use assets are reviewed for impairment annually. There was no impairment for operating lease right-of-use lease assets for the years ended September 30, 2023 and 2022. The Company elected not to record assets and liabilities on its consolidated balance sheet for lease arrangements with terms of 12 months or less. The Company recognizes lease expenses for such lease on a straight-line basis over the lease term. |
Revenue recognition | (k) The Company adopted ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”) using the modified retrospective approach for the year ended September 30, 2020 and has elected to apply it retrospectively for the year ended September 30, 2019. In accordance with ASC 606, revenues from contracts with customers are recognized when control of the promised goods or services are transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company determines revenue recognition through the following steps: (i) identify the contracts with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when, or as the entity satisfies a performance obligation. The Company’s revenues are derived principally from virtual technology service, digital marketing and digital asset development and others. Value added taxes (“VAT”) are presented as a reduction of revenues. Revenue from virtual technology service The Company engages in virtual content production for visual effect in movies, television series, animations, games, advertisement, tourism, and augmented reality (“AR”) and virtual reality (“VR”) technology etc. The virtual content production contracts are primarily on a fixed price basis, which require the Company to perform services for visual effect design, content development, production and integration based on customers’ specific needs. The required production period is generally less than one year. The virtual content production services are considered as a single performance obligation because the Company provides a significant service of integrating different services underlying each contract, which are highly interdependent and interrelated with one another. The Company currently does not have any modification of contract and the contracts currently do not have any variable consideration. The customer of the virtual content production contract can only obtain control of the produced virtual content after the project is completed. The Company satisfy its performance obligation at a point in time only when it transfers the developed content to the customer. The virtual content are assets when they are developed by the Company. The Company can direct the use of the product and obtain substantially all of the remaining benefits of the asset. The customer can direct the use and obtain benefits of the assets only after the development completed and control transfer occurred from the Company upon acceptance by the customer. The customer does not simultaneously receive or consume the benefits provided by the Company’s performance as the Company performs. The customer can only benefit from the final output of the virtual content as delivered by the Company. The customer does not have control over the content as it is developed. The developed virtual content may be sold as digital assets by the Company and the payment collected in advance based on the contract upon each milestone would be refundable if the Company does not meet the customer’s needs or there is other default. Hence, none of the criteria of ASC 606-10-25-27 is met. Revenue from virtual content production is recognized at a point in time when the Company satisfies the performance obligation by transferring promised virtual content product upon acceptance by customers. Revenue from digital marketing The Company enters into two types of digital marketing contracts directly with customers. For one type of contracts, pursuant to which the Company provides advertisement production and promotion services to customers. The advertisements are in different format, including but not limited to short video, landing pages and static materials. The Company considers that both of the advertisement production and promotion services are highly interrelated and not separately identifiable. The Company’s overall promise represents a combined output that is a single performance obligation; there is no multiple performance obligations. The Company engages third-party advising distributor while providing the promotion services. The Company considers itself as principal of the services as it has control of the specified services at any time before it is transferred to the customers which is evidenced by (i) the Company is primarily responsible for the production of content for advertisements and (ii) having latitude in select third party distributors for promotion and establish pricing. Therefore, the Company acts as the principal of these arrangements and reports revenue earned and costs incurred related to these transactions on a gross basis. Under a framework contract, the Company receives separate purchase orders from customers. Accordingly, each purchase order is identified as a separate performance obligation, containing a bundle of advertisements that are substantially the same and that have the same pattern of transfer to the customer. Where collectability is reasonably assured, revenue is recognized over the service period of the purchase order, which is based on specific action (i.e. cost per mille “CPM”) for online display. The amount of the revenue is the gross billing charged to the customers. Revenue is recognized on a CPM basis as impressions or clicks are delivered through the Group’s display of the advertisements in accordance with the revenue contracts. The Company entered into another type of contracts with advertisers during the fiscal year 2022. Pursuant to which, the Company earns net fees from advertisers by acting as an agent to purchase advertisement inventories and advertise services on behalf of the advertisers. The Company recognizes revenues over the contracted service period. The Company is not a principal in these arrangements as it does not obtain control of ad inventories or advertising services, and therefore recorded net revenues at the difference between the gross billing amount charged to the advertisers and the costs of purchasing ad inventories and advertising services. Revenue from digital asset development and others The Company enters into copyright licensing contracts to authorize production rights, adaption rights, sublicense rights of licensed copyrights and digital assets with entertainment production companies. The licensing provides customers the right to use the Company’s IP as it exists since neither the criteria as stated in ASC 610-10-55-62 is met. The specific licensed copyrights and digital assets authorized to customers are all developed IP, which are unique and do not require ongoing maintenance or effort from the Company to assure the usefulness of the license. The Company is entitled to receive the license fee under the licensing arrangements and does not have any future obligation once it has provided the underlying IP content to the licensee. The Company may use such authorized assets as a base model to produce new digital assets, however, these customers will not be contractually or practically required to use them. The revenue is recognized at a point in time when the licensed copyright and digital asset is made available for the customer’s use and benefit. Disaggregation of revenue The following table summarized disaggregated revenue for the years ended September 30, 2023, 2022 and 2021: For the Years Ended 2023 2022 2021 US$ US$ US$ Category of Revenue Virtual technology service $ 15,382,324 $ 12,536,957 $ 6,722,143 Digital marketing — 632,070 6,191,046 Digital asset development and others 11,507,587 4,019,266 1,354,995 $ 26,889,911 $ 17,188,293 $ 14,268,184 Timing of Revenue Recognition Services transferred at a point in time $ 26,889,911 $ 16,556,223 $ 8,077,138 Services transferred over time — 632,070 6,191,046 $ 26,889,911 $ 17,188,293 $ 14,268,184 Revenue recognized on gross basis $ 26,889,911 $ 16,556,223 $ 14,268,184 Revenue recognized on net basis — 632,070 — $ 26,886,911 $ 17,188,293 $ 14,268,184 Contract balance The Company recognizes accounts receivable in its consolidated balance sheets when it performs a service in advance of receiving consideration and it has the unconditional right to receive consideration. Payments received from its customers are based on the payment terms established in its contracts. Such payments are initially recorded to advance from customers and are recognized into revenue as the Company satisfies its performance obligations. As of September 30, 2023 and 2022, the balance of advance from customers amounted to $345,838 and $1,154,100, respectively. Substantially all of advance from customers will be recognized as revenue during the Company’s following fiscal year. |
Cost of revenue | (l) Cost of revenues consists primarily of outsourcing content production cost, amortization cost of intangible assets, payroll and related costs for employees involved with the Company’s operations and product support, such as rental and depreciation expenses. These costs are charged to the consolidated statement of comprehensive income (loss) as incurred. |
Selling expenses | (m) Selling expenses consist primarily of promotion and advertising expenses, staff costs and other daily expenses which are related to the selling and marketing departments. These expenses are charged to the consolidated statement of comprehensive income (loss) as incurred. |
General and administrative expenses | (n) General and administrative expenses consist primarily of salaries and welfare expenses and related expenses for employees involved in general corporate functions, including accounting, legal and human resources; and costs associated with use by these functions of facilities and equipment, such as traveling and general expenses, professional service fees and other related expenses. These expenses are charged to the consolidated statement of comprehensive income (loss) as incurred. |
Research and development expenses | (o) Research and development expenses consist primarily of employee salaries and benefits for research and development personnel, allocated overhead and outsourced development expenses. Cost incurred for the internally developed IP of virtual content, scripts and digital assets to be licensed or sold during the planning and designing stage are expensed when incurred and are included in the research and development expenses. Costs incurred in the development phase subsequent to establishing technological feasibility of such IP are capitalized. During the fiscal years ended September 30, 2023, 2022 and 2021, as no such costs qualified for capitalization, all of the cost incurred for the internally developed IP of virtual content, scripts and digital assets to be licensed or sold are expensed. |
Income taxes | (p) The Company accounts for income taxes in accordance with ASC 740, Income Taxes. ASC 740 requires an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or future deductibility is uncertain. The Company’s subsidiaries in the PRC and Hong Kong are subject to the income tax laws of the PRC and Hong Kong. No taxable income was generated outside the PRC for the years ended September 30, 2023, 2022 and 2021. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes”, prescribe a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. Tax positions that meet the “more likely than not” recognition threshold are measured, using a cumulative probability approach, at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. The estimated liability for unrecognized tax benefits are periodically assessed for adequacy and may be affected by changing interpretations of laws, rulings by tax authorities, changes and or developments with respect to tax audits, and the expiration of the statute of limitations. Additionally, in future periods, changes in facts and circumstances, and new information may require the Company and its wholly-owned subsidiaries to adjust the recognition and measurement of estimates with regards to changes in individual tax position. Changes in recognition and measurement of estimates are recognized in the period which the change occurs. ASC 740 also provides guidance on the recognition of income tax assets and liabilities, classification accounting for interest and penalties associated with tax positions, years open for tax examination, accounting for income taxes in interim periods and income tax disclosures. As of September 30, 2023 and 2022, there were $1,066,949 and $ nil |
Value added tax (“VAT”) | (q) The Company’s PRC subsidiaries are subject to value added tax (“VAT”) and related surcharges based on gross sales or service price depending on the type of services provided in the PRC (“output VAT”), and the VAT may be offset by VAT paid by the Company on service purchases (“input VAT”). The applicable rate of output VAT or input VAT for the Company is 6%. Gross sales or service price charged to customers is subject to output VAT at a rate of 6% and subsequently paid to PRC tax authorities after netting input VAT on purchases incurred during the period. The Company’s revenues are presented net of VAT collected on behalf of PRC tax authorities and its related surcharges; the VAT is not included in the consolidated statements of comprehensive income (loss). All of the VAT returns filed by the Company’s subsidiaries in the PRC, have been and remain subject to examination by the tax authorities for five years from the date of filing. |
Earnings (loss) per share | (r) The Company computes earnings (loss) 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 are computed by dividing net income (loss) available to ordinary shareholders of the Company by the weighted average ordinary shares outstanding during the period. Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares. Potential ordinary share that has an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted earnings per share. For the years ended September 30, 2023 and 2022, there were no dilutive shares. |
Foreign currency translation and transactions | (s) The reporting currency of the Company is U.S. dollars (“US$”) and the accompanying consolidated financial statements have been expressed in US$. The Company’s principal country of operations is the PRC. The financial position and results of its operations are determined using the Chinese Yuan (“RMB”), the local currency, as the functional currency. The Company’s consolidated financial statements have been translated into the reporting currency, US$. The results of operations and the consolidated statements of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in equity (deficit). Gains and losses from foreign currency transactions and balances are included in the results of operations. The value of RMB against US$ and other currencies may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of RMB may materially affect the Company’s financial condition in terms of US$ reporting. The following table outlines the currency exchange rates that were used in preparing the consolidated financial statements: September 30, September 30, Year-end spot rate 7.2960 7.1135 For the Years Ended 2023 2022 2021 Average rate 7.0553 6.5532 6.5072 |
Segment reporting | (t) ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and the types of customers to help users of financial statements to better understand the Company’s performance, assess its prospects for future cash net cash flow and make more informed judgements about the Company in a whole. The Company uses the management approach to determine reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Company’s CODM has been identified as the CEO, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. Based on the management’s assessment, the Company determined that it has only one operating segment and therefore one reportable segment as defined by ASC 280. The Company’s assets are substantially all located in the PRC and substantially all of the Company’s revenue and expense are derived in the PRC. Therefore, no geographical segments are presented. |
Significant risks and uncertainties | (u) Currency convertibility risk Substantially all of the Company’s operating activities are settled in RMB, which 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 Company foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. Concentration and credit risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. The Company maintains certain bank accounts in the PRC, Hong Kong and Cayman. As of September 30, 2023 and 2022, cash balances in the PRC are $10,195,088 and $1,131,886, respectively. On May 1, 2015, China’s new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as commercial banks, established in the PRC are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them. Such Deposit Insurance Regulation would not be effective in providing complete protection for the Company’s accounts, as its aggregate deposits are much higher than the compensation limit, which is RMB500,000 for one bank. Other than such deposit insurance mechanism, the Company’s bank accounts are not insured by Federal Deposit Insurance Corporation insurance or other insurance. However, the Company believes that the risk of failure of any of these Chinese banks is remote. Bank failure is uncommon in the PRC and the Company believes that those Chinese banks that hold the Company’s cash are financially sound based on public available information. Accounts receivables are typically unsecured and derived from services rendered to customers that are located in China, thereby exposed to credit risk. The risk is mitigated by the Company’s assessment of customers’ creditworthiness and its ongoing monitoring of outstanding balances. The Company has a concentration of its accounts receivable with specific customers. Major Customers For the year ended September 30, 2023, one customer accounted for approximately 10% of total revenues. As of September 30, 2023, the balance due from four customers accounted for approximately 23%, 16%, 16% and 15% of the Company’s total accounts receivable, respectively. For the year ended September 30, 2022, two customers accounted for approximately 20% and 17% of total revenues, respectively. As of September 30, 2022, the balance due from three customers accounted for approximately 42%, 24% and 21% of the Company’s total accounts receivable, respectively. For the year ended September 30, 2021, three customers accounted for approximately 20%, 10% and 10% of total revenues, respectively. Major Suppliers For the year ended September 30, 2023, three suppliers accounted for approximately 23%, 13% and 12% of the total purchases, respectively. As of September 30, 2023, two suppliers accounted for approximately 26% and 21% of the Company’s accounts payable, respectively. For the year ended September 30, 2022, four suppliers accounted for approximately 32%, 19%, 17% and 10% of the total purchases, respectively. As of September 30, 2022, three suppliers accounted for approximately 37%, 22% and 12% of the Company’s accounts payable, respectively. For the year ended September 30, 2021, three suppliers accounted for approximately 24%, 12% and 10% of the total purchases, respectively. Interest rate risk Fluctuations in market interest rates may negatively affect the Company’s financial condition and results of operations. The Company is exposed to floating interest rate risk on cash deposit and floating rate borrowings, and the risks due to changes in interest rates is not material. The Company has not used any derivative financial instruments to manage the Company’s interest risk exposure. Impact of COVID-19 Outbreak On March 11, 2020, the World Health Organization declared COVID-19 a pandemic — the first pandemic caused by a coronavirus. The outbreak has reached more than 160 countries, resulting in the implementation of significant governmental measures, including lockdowns, closures, quarantines, and travel bans, intended to control the spread of the virus. The Chinese government has ordered quarantines, travel restrictions, and the temporary closure of stores and facilities. Companies are also taking precautions, such as requiring employees to work remotely, imposing travel restrictions and temporarily closing businesses. During the year ended September 30, 2023, COVID-19 has had limited impact on the Company’s operations. There are still uncertainties of COVID-19’s future impact, and the extent of the impact will depend on a number of factors, including the duration and severity of the pandemic; and the macroeconomic impact of government measures to contain the spread of COVID-19 and related government stimulus measures. |
Recent accounting pronouncements | (v) In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments — Credit Losses (Topic 326). The amendments in this Update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss, which will be more decision useful to users of the financial statements. This ASU is effective for annual and interim periods beginning after September 15, 2019 for issuers and September 15, 2020 for non-issuers. Early adoption is permitted for all entities for annual periods beginning after September 15, 2018, and interim periods therein. In May 2019, the FASB issued ASU 2019-05, Financial Instruments — Credit Losses (Topic 326): Targeted Transition Relief. This ASU adds optional transition relief for entities to elect the fair value option for certain financial assets previously measured at amortized cost basis to increase comparability of similar financial assets. The ASUs should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified retrospective approach). On November 19, 2019, the FASB issued ASU 2019-10 to amend the effective date for ASU 2016-13 to be fiscal years beginning after December 15, 2022 and interim periods therein. The Company will adopt this ASU on October 1, 2023 and expects that the adoption will not have a material impact on the Company’s consolidated financial statements and related disclosures. In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280)”. The amendment in this Update is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments also require a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. For public entity with single reportable segment, the Update requires the entity to provide all the disclosures required by the amendments in the ASU and all existing segment disclosures in Topic 280. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company will adopt this ASU on October 1, 2024 and expects that the adoption will not have a material impact on the Company’s consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The Update requires that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income [or loss] by the applicable statutory income tax rate). The ASU is effective for public business entities for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. The Company will adopt this ASU on October 1, 2026. The Company does not expect the adoption will have a material impact on the Company’s consolidated financial statements and related disclosures. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated financial position, statements of comprehensive income and cash flows. |
Organization and Business Des_2
Organization and Business Description (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Organization and Business Description [Abstract] | |
Schedule of Major Subsidiaries | As of September 30, 2023, the Company’s major subsidiaries are as follows: Name of Entity Date of Place of % of Principal Activities Global Mofy HK Limited (“Global Mofy HK”) October 21, 2021 Hong Kong 100 % Investment holding Mofy Metaverse (Beijing) Technology Co., Ltd (“Global Mofy WFOE”) December 09, 2021 PRC 100 % Investment holding Zhejiang Mofy Metaverse Technology Co., Ltd (“Zhejiang WFOE”) April 03, 2023 PRC 100 % Virtual technology service and digital marketing Global Mofy (Beijing) Technology Co., Ltd. (“Global Mofy China”) November 22, 2017 PRC 100 % Virtual technology service, digital marketing and digital asset development Kashi Mofy Interactive Digital Technology Co., Ltd. (“Kashi Mofy”) July 31, 2019 PRC 100 % Virtual technology service and digital marketing Shanghai Moying Feihuan Technology Co., Ltd. (“Shanghai Mofy”) May 11, 2020 PRC 100 % Virtual technology service and digital marketing Xi’an Shuzi Yunku Technology Co., Ltd (Xi’an Mofy) June 8, 2018 PRC 60 % Virtual technology service Mofy (Beijing) Filming Technology Co., Ltd. (Beijing Mofy) February 7, 2018 PRC 60 % Virtual technology service |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives | Estimated useful lives are as follows: Category Estimated useful lives Office equipment 3 years Leasehold improvement Shorter of lease terms and estimated useful lives |
Schedule of Estimated Useful Lives Intangible Assets, Net | Estimated useful lives are as follows: Category Estimated useful lives Licensed digital assets 3-5 years |
Schedule of Balance of Assets Measured at Fair Value on a Recurring Basis | The following table presents the balance of assets measured at fair value on a recurring basis: Level 1 Level 2 Level 3 As of September 30, 2023 Short-term investments $ — $ 780,000 $ — Total $ — $ 780,000 $ — Level 1 Level 2 Level 3 As of September 30, 2022 Short-term investments $ — $ — $ — Total $ — $ — $ — |
Schedule of Disaggregated Revenue | The following table summarized disaggregated revenue for the years ended September 30, 2023, 2022 and 2021: For the Years Ended 2023 2022 2021 US$ US$ US$ Category of Revenue Virtual technology service $ 15,382,324 $ 12,536,957 $ 6,722,143 Digital marketing — 632,070 6,191,046 Digital asset development and others 11,507,587 4,019,266 1,354,995 $ 26,889,911 $ 17,188,293 $ 14,268,184 Timing of Revenue Recognition Services transferred at a point in time $ 26,889,911 $ 16,556,223 $ 8,077,138 Services transferred over time — 632,070 6,191,046 $ 26,889,911 $ 17,188,293 $ 14,268,184 Revenue recognized on gross basis $ 26,889,911 $ 16,556,223 $ 14,268,184 Revenue recognized on net basis — 632,070 — $ 26,886,911 $ 17,188,293 $ 14,268,184 |
Schedule of Unaudited Condensed Consolidated Financial Statements | The following table outlines the currency exchange rates that were used in preparing the consolidated financial statements: September 30, September 30, Year-end spot rate 7.2960 7.1135 For the Years Ended 2023 2022 2021 Average rate 7.0553 6.5532 6.5072 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable, net consisted of the following: As of 2023 2022 US$ US$ Accounts receivable $ 3,682,126 $ 2,106,445 Less: allowance for doubtful accounts (395,796 ) (4,780 ) Accounts receivable, net $ 3,286,330 $ 2,101,665 |
Schedule of Allowance of Doubtful Accounts | The movement of allowance of doubtful accounts is as follows: As of 2023 2022 US$ US$ Balance at beginning of the year $ 4,780 $ 21,635 Addition 404,595 45,649 Write-off — (61,734 ) Foreign exchange translation (13,579 ) (770 ) Balance at end of the year $ 395,796 $ 4,780 |
Advance to Vendors (Tables)
Advance to Vendors (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Advance to Vendors [Abstract] | |
Schedule of Advance to Vendors | Advance to vendors consisted of the following: As of 2023 2022 US$ US$ Prepayments for virtual technology services $ 277,952 $ 567,736 Prepayments for digital marketing — 400,042 Prepayments for digital assets development 3,723,351 2,375,516 Subtotal 4,001,303 3,343,294 Less: allowance for doubtful accounts (386,542 ) — 3,614,761 3,343,294 Less: advance to vendors - noncurrent 1,020,874 1,800,000 Advance to vendors – current $ 2,593,887 $ 1,543,294 |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Loans Receivable, Net [Abstract] | |
Schedule of Loans Receivable Net Consisted | Loans receivable, net consisted of the following: As of 2023 2022 US$ US$ Wuyuan Yangyang Culture Media Studio (a) $ 287,829 $ 295,213 Less: allowance for doubtful accounts — — Total loans receivable, net – current $ 287,829 $ 295,213 Wuyuan Yangyang Culture Media Studio (a) $ — $ — Pingnan Motian Culture Media Studio (b) 438,596 449,849 Hanning Jin (c) 8,909 9,137 $ 447,505 $ 458,986 Less: allowance for doubtful accounts — — Total loans receivable, net – noncurrent $ 447,505 $ 458,986 Total loans receivable, net $ 735,334 $ 754,199 (a) On June 28, 2020, Global Mofy China entered into a loan agreement with a third party, Wuyuan Yangyang Culture Media Studio (“Yangyang”) to lend $712,854 (or RMB 4,840,000) for its working capital needs with a fixed interest rate of 5.2% per annum. The amount of $356,427 (or RMB2,420,000) of the loan was due on December 31, 2020. The remaining amount of $356,427 (or RMB2,420,000) of the loan was due on June 28, 2022. A total of $363,162 (or RMB2,340,000) of the loan was collected in January 2021. A total of $63,098 (or RMB400,000) of the loan was collected in November 2021. On June 28, 2022, Global Mofy China renewed the loan agreement with Yangyang to extend the loan term of the loan receivable balance of $295,213 (or RMB2,100,000) for its working capital needs for one year and interest rate remained the original fixed rate of 5.2% per annum. On June 28, 2023, Global Mofy China renewed the loan with Yangyang for one year at an annual rate of 5.2%. (b) On October 20, 2020, Global Mofy China entered into a loan agreement with a third party, Pingnan Motian Culture Media Studio (“Pingnan”) to lend $496,632 (or RMB 3,200,000) for its working capital needs with a maturity date of October 20, 2022. The loan bores a fixed interest rate of 5.2% per annum. On October 20, 2022, Global Mofy China renewed the loan agreement with Pingnan to extend the loan term of the loan receivable balance of $449,849 (or RMB3,200,000) for its working capital needs for one year and interest rate remained the original fixed rate of 5.2% per annum. On October 20, 2023, Global Mofy China renewed the loan with Pingnan for one year at an annual rate of 5.2%. (c) On January 14, 2021, Global Mofy China entered into an interest-free loan agreement with Hanning Jin, a third party individual, to lend $10,088 (or RMB65,000) for working capital needs with a maturity date of January 14, 2023. On January 14, 2023, Global Mofy China renewed the interest-free loan agreement with Hanning Jin to extend the loan term of the loan receivable balance of $9,137 (or RMB65,000) for its working capital needs for one year. In January 2024, Global Mofy China renewed the interest-free loan with Hanning Jin for one year. |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Intangible Assets, Net [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consisted of the following: As of Gross Accumulated US$ US$ Intangible assets Licensed digital assets $ 6,918,572 $ (412,780 ) Total $ 6,918,572 $ (412,780 ) |
Schedule of Amortization Expenses | Aggregate Amortization expenses: For year ended 9/30/2023 $ 412,780 Estimated Amortization Expenses: For year ended 9/30/2024 $ 1,512,046 For year ended 9/30/2025 $ 1,507,914 For year ended 9/30/2026 $ 1,287,201 For year ended 9/30/2027 $ 1,197,414 For year ended 9/30/2028 $ 1,001,217 |
Schedule of Movement of Intangible Assets | The movement of intangible assets is as follows: As of Gross Accumulated US$ US$ Balance at beginning of the year $ — $ — Additions (a) 6,918,572 426,983 Disposal — — Foreign exchange translation — (14,203 ) Balance at end of the year $ 6,918,572 $ 412,780 (a) Additions are all acquired from third-party suppliers in the current year. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Lease Term and the Weighted-Average Discount Rate | The Company has elected an accounting policy to not recognize short-term leases (one year or less) on the balance sheet. As of 2023 2022 US$ US$ Operating lease right-of-use assets $ 954,771 $ 147,099 Operating lease liabilities – current $ 293,040 $ 120,418 Operating lease liabilities – noncurrent 556,674 — Total operating lease liabilities $ 849,714 $ 120,418 |
Schedule of Lease Term and the Weighted-Average Discount Rate | The weighted-average remaining lease term and the weighted-average discount rate of leases are as follows: As of 2023 2022 Weighted-average remaining lease term (years) 2.45 1.96 Weighted-average discount rate 4.75 % 4.75 % |
Schedule of the Maturity of Operating Lease Liabilities | The following table summarizes the maturity of operating lease liabilities as of September 30, 2023: 12 months ending September 30, Operating US$ 2024 $ 328,558 2025 280,700 2026 302,764 Thereafter — Total lease payments 912,022 Less: imputed interest (62,308 ) Total lease liabilities $ 849,714 |
Short-Term Bank Loans (Tables)
Short-Term Bank Loans (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Short-Term Bank Loans [Abstract] | |
Schedule of Short-Term Bank Loans | Short-term bank loans represent amounts due to various banks maturing within one year. The principal of the borrowings is due at maturity. Accrued interest is due either monthly or quarterly. Short-term borrowings consisted of the following: As of 2023 2022 US$ US$ Bank of China (1) $ — $ 421,733 Bank of Nanjing (2) 411,184 421,733 Bank of Huaxia (3) 1,370,614 702,889 Bank of Hangzhou (4) 685,307 — Deferred financing costs (5) (24,496 ) (14,282 ) Total $ 2,442,609 $ 1,532,073 (1) On September 30, 2021, Global Mofy China entered into a loan agreement with Bank of China to obtain a loan of $310,395 (or RMB 2,000,000) for a term from September 30, 2021 to September 29, 2022 at a fixed annual interest rate of 3.85%. The loan is guaranteed by a third party, Beijing Shichuang Tongsheng Financing Guarantee Limited. The Company repaid the loan in advance on September 15, 2022. On September 19, 2022, the Company entered into a new loan agreement with Bank of China to obtain a loan of $421,733 (or RMB 3,000,000) for the period from September 19, 2022 to September 19, 2023 with a floating annual interest rate. The loan is guaranteed by a third party, Beijing Shichuang Tongsheng Financing Guarantee Limited. The Company is required to make quarterly interest payment with principal due at maturity. The Company repaid the loan in full upon maturity on September 19, 2023. (2) On March 12, 2021, Global Mofy China entered into a loan agreement with Bank of Nanjing to obtain a loan of $155,198 (or RMB1,000,000) for a term from March 12, 2021 to March 11, 2022. The loan was fully repaid on March 11, 2022. On July 29, 2021, Global Mofy China entered into another loan agreement with Bank of Nanjing to obtain a loan of $155,198 (or RMB1,000,000) for a term from July 29, 2021 to July 28, 2022. Both of these loans bore a fixed annual interest rate of 6.08%. On July 29, 2022, the Company renewed the loan agreement with Bank of Nanjing to obtain a loan of $140,578 (or RMB1,000,000) for the period from July 29, 2022 to July 29, 2023 with an annual interest rate of 6%. The Company repaid the loan on July 31, 2023. On March 31, 2022, Global Mofy China and Bank of Nanjing entered into a loan agreement to borrow $281,155 (or RMB2,000,000) of loan for the period from March 31, 2022 to March 31, 2023 with an annual interest rate of 6.0%. Mr. Haogang, Yang, the Chairman of the Company’s board of directors and CEO, together with his wife, Ms. Dong Mingxing, guaranteed the repayment of these loans. The Company repaid the loan in advance on March 16, 2023. On March 17, 2023, Global Mofy China and Bank of Nanjing entered into a loan agreement to borrow $274,123 (or RMB2,000,000) of loan for the period from March 17, 2023 to March 17, 2024 with an annual interest rate of 6%. Mr. Haogang, Yang, the Chairman of the Company’s board of directors and CEO, together with his wife, Ms. Dong Mingxing and Ms. Wenjun Jiang, the CTO of the Company, guaranteed the repayment of these loans. On September 20, 2023, Global Mofy China and Bank of Nanjing entered into a loan agreement to borrow $137,061 (or RMB1,000,000) of loan for the period from September 20, 2023 to September 20, 2024 with an annual interest rate of 5.5%. Mr. Haogang, Yang, the Chairman of the Company’s board of directors and CEO, together with his wife, Ms. Dong Mingxing, guaranteed the repayment of these loans. (3) On November 14, 2021, Global Mofy China and Huaxia Bank entered into a loan agreement to borrow $126,197 (or RMB800,000) of loan for the period from November 14, 2021 to November 14, 2022 with an annual interest rate of 5.225%. The Company’s CEO, Mr. Haogang Yang, and his wife, Ms. Mingxing Dong, provided guarantee to this loan. The Company is required to make monthly interest payment with principal due at maturity. On July 8, 2022, the Company repaid loan in advance. On July 27, 2022, Global Mofy China and Huaxia Bank entered into a loan agreement to borrow $702,889 (or RMB5,000,000) of loan for the period from July 27, 2022 to July 27, 2023 with a floating annual interest rate. The loan is guaranteed by a third party, Beijing Zhongguancun Technology Financing Guarantee Limited. The Company is required to make monthly interest payment with principal due at maturity. The Company repaid the loan on July 31, 2023. On March 17, 2023, Global Mofy China and Huaxia Bank entered into a loan agreement to borrow $685,307 (or RMB5,000,000) of loan for the period from March 17, 2023 to March 17, 2024 with a floating annual interest rate. The loan is guaranteed by a third party, Beijing Zhongguancun Technology Financing Guarantee Limited. On August 30, 2023, Global Mofy China and Huaxia Bank entered into a loan agreement to borrow $685,307 (or RMB5,000,000) of loan for the period from August 30, 2023 to August 30, 2024 with a floating annual interest rate. The loan is guaranteed by a third party, Beijing Zhongguancun Technology Financing Guarantee Limited. (4) On February 13, 2023, Global Mofy China entered into a loan agreement with Bank of Hangzhou to obtain a loan of $274,123 (or RMB 2,000,000) for a term from February 13, 2023 to February 12, 2024 at a fixed annual interest rate of 4.35%. The loan is guaranteed by a third party, Beijing Yizhuang Guoji Financing Guarantee Limited. On March 30, 2023, Global Mofy China entered into a loan agreement with Bank of Hangzhou to obtain a loan of $411,184 (or RMB 3,000,000) for a term from March 30, 2023 to December 29, 2023 at a fixed annual interest rate of 4.35%. The Company’s CEO, Mr. Haogang Yang, and his wife, Ms. Mingxing Dong, provided guarantee to this loan. The Company repaid the loan in full upon maturity on December 29, 2023. (5) In order to obtain the guarantees provided by the third-party guaranty company for the loans from banks, the Company incurred guarantee fees, which are deferred and presented on the consolidated balance sheets as a direct deduction from the carrying amount of the loans and amortized to interest expense over the term of the associated loans. |
Loans from Third Parties (Table
Loans from Third Parties (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Loans from Third Parties [Abstract] | |
Schedule of Loans from Third Parties | As of 2023 2022 US$ US$ Loans from third parties – current $ 22,615 $ 108,245 Loans from third party – noncurrent — 107,542 Total loans from third parties $ 22,615 $ 215,787 |
Related Party Transactions an_2
Related Party Transactions and Balances (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions and Balances [Abstract] | |
Schedule of Nature of Relationships with Related Parties | Nature of relationships with related parties: Name Relationship with the Company Mr. Jianru Yang Business Development Director of the Company Mr. Yuchao Lu Directly hold a 5.05% equity interest in the Company Ms. Yang Li Finance Controller of the Company Lianyungang Zongteng Film Studio Controlled by Mr. Yuchao Lu Moxing Shangxing (Beijing) Technology Co., Ltd Controlled by Mr. Jianru Yang Mofy Filming (Hainan) Co., Ltd. (“Mofy Hainan”) Ms. Yang li is the Finance Controller of Mofy Hainan |
Schedule of Transactions with Related Parties | Transactions with related parties For the Years Ended 2023 2022 US$ US$ Revenue earned from related parties Mofy Filming (Hainan) Co., Ltd. $ — $ 1,439,596 Moxing Shangxing (Beijing) Technology Co., Ltd (a) — 1,208,397 $ — $ 2,647,993 Service fees charged by related party Lianyungang Zongteng Film Studio $ — $ 10,808 (a) As of September 30, 2022, the balance of $182,751 (or RMB1,300,000) represented the interest-free loan lend to Moxing Shangxing (Beijing) Technology Co., Ltd. for the working capital purpose, with the maturity date due on August 24, 2023. The loan was fully collected in December 2022. |
Schedule of Balances with Related Parties | the balances with related parties were as follows: As of 2023 2022 US$ US$ Accounts receivable – related party Moxing Shangxing (Beijing) Technology Co., Ltd $ — $ 298,587 Due from related party Moxing Shangxing (Beijing) Technology Co., Ltd (a) $ — $ 182,751 (a) As of September 30, 2022, the balance of $182,751 (or RMB1,300,000) represented the interest-free loan lend to Moxing Shangxing (Beijing) Technology Co., Ltd. for the working capital purpose, with the maturity date due on August 24, 2023. The loan was fully collected in December 2022. |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Taxes [Abstract] | |
Schedule of Pre-Tax Income (loss) is Derived | The Company’s pre-tax income (loss) is derived from the following tax jurisdictions: For the years ended 2023 2022 2021 US$ US$ US$ PRC $ 8,637,772 $ (180,032 ) $ 1,424,159 HK (30 ) (2,136 ) — Cayman (988,396 ) (83,073 ) — Income (loss) before income taxes $ 7,649,346 $ (265,241 ) $ 1,424,159 |
Schedule of Provision for Income Tax | The provision for income tax consisted of the following: For the years ended 2023 2022 2021 US$ US$ US$ Current income tax expense $ 1,098,087 $ — $ 9,992 Deferred income tax benefit — — — Income tax provision $ 1,098,087 $ — $ 9,992 |
Schedule of Reconciles the Statutory Rate | The following table reconciles the statutory rate to the Company’s effective tax rate: For the Years Ended 2023 2022 2021 PRC statutory tax rate 25.0 % 25.0 % 25.0 % Effect of tax holiday and preferential tax rate (a) (14.2 )% (11.6 )% (21.0 )% Effect of tax rate in a foreign jurisdiction 3.2 % (7.8 )% — % Additional deduction for R&D expenses (1.0 )% Non-deductible expenses 0.1 % (10.6 )% 2.8 % Operating income offset loss carryforward — % — % — % Change of tax rate — % — % — % Change in valuation allowance 1.2 % 5.0 % (6.1 )% Effective tax rate 14.3 % (0.0 )% 0.7 % (a) The Company’s subsidiaries, Global Mofy China, Kashi Mofy, Shanghai Mofy, Xi’an Mofy and Beijing Mofy are subject to different favorable tax rates and tax holiday for the years ended September 30, 2023 and 2022. For the years ended September 30, 2023 and 2022, as for the years ended September 30, 2022 is a negative amount, there is not a tax saving, the tax saving as the result of the favorable tax rate and tax holiday amounted to $1,086,519 and $ nil |
Schedule of Components of Deferred Tax Assets and Liabilities | Components of deferred tax assets and liabilities were as follows: As of 2023 2022 US$ US$ Provision for doubtful debt $ 110,374 $ 773 Tax loss carry forwards 70,341 75,595 Operating lease liabilities 133,489 — Total deferred tax assets 314,204 76,368 Less: Valuation allowance (162,974 ) (76,368 ) Total deferred tax assets, net of valuation allowance $ 151,230 $ — |
Schedule of Net Operating Loss Carry Forward | As of September 30, 2023, the Company has total of net operating loss carry forward of approximately $0.4 million in the PRC that expire from 2025 through 2028. As of 2023 2022 US$ US$ Right of use assets $ 151,230 $ — Total deferred tax liabilities 151,230 — Total deferred tax assets, net $ — $ — |
Schedule of Valuation Allowance of Deferred Tax Assets | The roll forward of valuation allowance of deferred tax assets were as follows: As of 2023 2022 US$ US$ Balance as of beginning of year $ (76,368 ) $ (97,933 ) Additions of valuation allowance (134,811 ) 21,565 Reductions of valuation allowance 43,249 — Exchange difference 4,956 — Balance as of end of year $ (162,974 ) $ (76,368 ) |
Schedule of Unrecognized Tax Benefit | A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows: As of 2023 2022 US$ US$ Balance as of beginning of year $ — $ — Increase related to prior year tax positions 5,639 — Increase related to current year tax positions 1,061,310 — Balance as of end of year $ 1,066,949 $ — |
Schedule of Tax Payable | The tax payable consisted of the following: As of 2023 2022 US$ US$ VAT payable $ 487,744 $ 468,586 Corporate income tax payable 1,066,949 5,784 Other tax 366 — Tax payable $ 1,555,059 $ 474,370 |
Condensed Financial Informati_2
Condensed Financial Information of the Parent Company (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Condensed Financial Information of the Parent Company [Abstract] | |
Schedule of Balance Sheets | BALANCE SHEETS As of 2023 2022 ASSETS Cash $ 235,014 $ 4,170 Short-term investments 780,000 — Due from subsidiaries 10,630,138 1,870,008 Prepaid expenses and other current assets, net 105,000 — Prepaid expenses and other noncurrent assets, net 163,589 92,722 Investment in subsidiaries 11,103,806 2,967,699 Total Assets $ 23,017,547 $ 4,934,599 LIABILITIES AND EQUITY Current liabilities Accrued expenses and other liabilities $ 62,157 $ 49,973 Total current liabilities 62,157 49,973 Equity: Common stock (US$0.000002 par value, 25,000,000,000 shares authorized, 25,926,155 and 23,618,037 shares issued and outstanding as of September 30, 2023 and 2022, respectively) 52 47 Additional paid-in capital 16,035,229 5,112,181 Statutory reserves 368,271 39,620 Accumulated deficit 6,551,838 (267,222 ) Total equity 22,955,390 4,884,626 Total liabilities and shareholders’ equity $ 23,017,547 $ 4,934,599 |
Schedule of Statements of Operations and Comprehensive Income (Loss) | STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Years Ended 2023 2022 2021 (a) Operating expenses: General and administrative expenses (611,474 ) (83,073 ) — Equity income (loss) in subsidiaries 7,163,312 (184,149 ) — Net income (loss) 6,551,838 (267,222 ) — Foreign currency translation adjustment — — — Comprehensive income (loss) $ 6,551,838 $ (267,222 ) $ — (a) The Company was established on September 29, 2021 and has no operation for the year ended September 30, 2021. |
Statements of Cash Flows | STATEMENTS OF CASH FLOWS For the Years Ended 2023 2022 2021 (a) Net cash used in investing activities $ (10,621,341 ) $ (1,903,038 ) $ — Net cash provided by financing activities 10,852,185 1,907,208 — Effect of exchange rate changes on cash — — — Net increase in cash 230,844 4,170 — Cash at the beginning of the year 4,170 — — Cash at the end of the year $ 235,014 4,170 $ — (a) The Company was established on September 29, 2021 and has no operation for the year ended September 30, 2021. |
Organization and Business Des_3
Organization and Business Description (Details) - CNY (¥) | 12 Months Ended | |||||
Dec. 01, 2021 | Jun. 08, 2018 | Feb. 07, 2018 | Sep. 30, 2023 | Dec. 09, 2021 | Oct. 21, 2021 | |
Organization and Business Description [Line Items] | ||||||
Date of incorporation | Sep. 29, 2021 | |||||
Acquired shares percentage | 60% | 60% | ||||
Global Mofy Caymans [Member] | ||||||
Organization and Business Description [Line Items] | ||||||
Equity interests percentage | 100% | |||||
Mofy Metaverse (Beijing) Technology [Member] | ||||||
Organization and Business Description [Line Items] | ||||||
Equity interests percentage | 100% | |||||
Global Mofy China [Member] | ||||||
Organization and Business Description [Line Items] | ||||||
Equity interests percentage | 100% | |||||
Consideration amount (in Yuan Renminbi) | ¥ 1 |
Organization and Business Des_4
Organization and Business Description (Details) - Schedule of Major Subsidiaries | 12 Months Ended |
Sep. 30, 2023 | |
Global Mofy HK Limited [Member] | |
Schedule of Major Subsidiaries [Line Items] | |
Date of Incorporation | Oct. 21, 2021 |
Place of Incorporation | Hong Kong |
Principal Activities | Investment holding |
Global Mofy HK Limited [Member] | Ownership Percent [Member] | |
Schedule of Major Subsidiaries [Line Items] | |
Percentage of Ownership | 100% |
Mofy Metaverse (Beijing) Technology Co., Ltd [Member] | |
Schedule of Major Subsidiaries [Line Items] | |
Date of Incorporation | Dec. 09, 2021 |
Place of Incorporation | PRC |
Principal Activities | Investment holding |
Mofy Metaverse (Beijing) Technology Co., Ltd [Member] | Ownership Percent [Member] | |
Schedule of Major Subsidiaries [Line Items] | |
Percentage of Ownership | 100% |
Zhejiang Mofy Metaverse Technology Co., Ltd [Member] | |
Schedule of Major Subsidiaries [Line Items] | |
Date of Incorporation | Apr. 03, 2023 |
Place of Incorporation | PRC |
Principal Activities | Virtual technology service and digital marketing |
Zhejiang Mofy Metaverse Technology Co., Ltd [Member] | Ownership Percent [Member] | |
Schedule of Major Subsidiaries [Line Items] | |
Percentage of Ownership | 100% |
Global Mofy (Beijing) Technology Co., Ltd. [Member] | |
Schedule of Major Subsidiaries [Line Items] | |
Date of Incorporation | Nov. 22, 2017 |
Place of Incorporation | PRC |
Principal Activities | Virtual technology service, digital marketing and digital asset development |
Global Mofy (Beijing) Technology Co., Ltd. [Member] | Ownership Percent [Member] | |
Schedule of Major Subsidiaries [Line Items] | |
Percentage of Ownership | 100% |
Kashi Mofy Interactive Digital Technology Co., Ltd. [Member] | |
Schedule of Major Subsidiaries [Line Items] | |
Date of Incorporation | Jul. 31, 2019 |
Place of Incorporation | PRC |
Principal Activities | Virtual technology service and digital marketing |
Kashi Mofy Interactive Digital Technology Co., Ltd. [Member] | Ownership Percent [Member] | |
Schedule of Major Subsidiaries [Line Items] | |
Percentage of Ownership | 100% |
Shanghai Moying Feihuan Technology Co., Ltd. [Member] | |
Schedule of Major Subsidiaries [Line Items] | |
Date of Incorporation | May 11, 2020 |
Place of Incorporation | PRC |
Principal Activities | Virtual technology service and digital marketing |
Shanghai Moying Feihuan Technology Co., Ltd. [Member] | Ownership Percent [Member] | |
Schedule of Major Subsidiaries [Line Items] | |
Percentage of Ownership | 100% |
Xi’an Shuzi Yunku Technology Co., Ltd [Member] | |
Schedule of Major Subsidiaries [Line Items] | |
Date of Incorporation | Jun. 08, 2018 |
Place of Incorporation | PRC |
Principal Activities | Virtual technology service |
Xi’an Shuzi Yunku Technology Co., Ltd [Member] | Ownership Percent [Member] | |
Schedule of Major Subsidiaries [Line Items] | |
Percentage of Ownership | 60% |
Mofy (Beijing) Filming Technology Co., Ltd. [Member] | |
Schedule of Major Subsidiaries [Line Items] | |
Date of Incorporation | Feb. 07, 2018 |
Place of Incorporation | PRC |
Principal Activities | Virtual technology service |
Mofy (Beijing) Filming Technology Co., Ltd. [Member] | Ownership Percent [Member] | |
Schedule of Major Subsidiaries [Line Items] | |
Percentage of Ownership | 60% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2023 CNY (¥) | |
Summary of Significant Accounting Policies [Line Items] | ||||
Unrealized gain in investments (in Dollars) | $ 30,000 | |||
Depreciation expense (in Dollars) | 514,161 | $ 27,852 | ||
Revenue from Contract with Customer, Excluding Assessed Tax (in Dollars) | $ 345,838 | 1,154,100 | ||
Tax benefit | 50% | |||
Unrecognized tax benefits (in Dollars) | $ 1,066,949 | |||
Value added tax | 6% | |||
Cash balances (in Dollars) | $ 10,195,088 | |||
Aggregate deposit compensation amount (in Yuan Renminbi) | ¥ | ¥ 500,000 | |||
Beijing Mofy [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Minority percentage | 40% | 40% | ||
Xi’an Mofy [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Minority percentage | 40% | |||
Bank account [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Cash balances (in Dollars) | $ 1,131,886 | |||
Other Customer [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Value added tax | 6% | |||
Customer One [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Risk percentage | 10% | 20% | 20% | |
Customer One [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Risk percentage | 23% | 42% | ||
Customer Two [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Risk percentage | 17% | 10% | ||
Customer Two [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Risk percentage | 16% | 24% | ||
Customer Three [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Risk percentage | 10% | |||
Customer Three [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Risk percentage | 16% | 21% | ||
Customer Four [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Risk percentage | 15% | |||
Suppliers One [Member] | Purchase [Member] | Supplier Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Risk percentage | 23% | 32% | 24% | |
Suppliers One [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Risk percentage | 26% | 37% | ||
Suppliers Two [Member] | Purchase [Member] | Supplier Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Risk percentage | 13% | 19% | 12% | |
Suppliers Two [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Risk percentage | 21% | 22% | ||
Suppliers Three [Member] | Purchase [Member] | Supplier Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Risk percentage | 12% | 17% | 10% | |
Suppliers Three [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Risk percentage | 12% | |||
Suppliers Four [Member] | Purchase [Member] | Supplier Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Risk percentage | 10% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives | Sep. 30, 2023 |
Schedule of Estimated Useful Lives [Abstract] | |
Property and equipment, useful lives | 3 years |
Property and equipment, useful lives | Shorter of lease terms and estimated useful lives |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives Intangible Assets, Net - Licensed digital assets [Member] | Sep. 30, 2023 |
Schedule of Estimated Useful Lives Intangible Assets, Net [Line Items] | |
Licensed digital assets | 5 years |
Minimum [Member] | |
Schedule of Estimated Useful Lives Intangible Assets, Net [Line Items] | |
Licensed digital assets | 3 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of Balance of Assets Measured at Fair Value on a Recurring Basis - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Level 1 [Member] | ||
Schedule of Balance of Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Short-term investments | ||
Total | ||
Level 2 [Member] | ||
Schedule of Balance of Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Short-term investments | 780,000 | |
Total | 780,000 | |
Level 3 [Member] | ||
Schedule of Balance of Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Short-term investments | ||
Total |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of Disaggregated Revenue - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Category of Revenue | |||
Revenue | $ 26,886,911 | $ 17,188,293 | $ 14,268,184 |
Services transferred at a point in time [Member] | |||
Category of Revenue | |||
Revenue | 26,889,911 | 16,556,223 | 8,077,138 |
Services transferred over time [Member] | |||
Category of Revenue | |||
Revenue | 632,070 | 6,191,046 | |
Timing of Revenue Recognition [Member] | |||
Category of Revenue | |||
Revenue | 26,889,911 | 17,188,293 | 14,268,184 |
Revenue recognized on gross basis [Member] | |||
Category of Revenue | |||
Revenue | 26,889,911 | 16,556,223 | 14,268,184 |
Revenue recognized on net basis [Member] | |||
Category of Revenue | |||
Revenue | 632,070 | ||
Virtual technology service [Member] | |||
Category of Revenue | |||
Revenue | 15,382,324 | 12,536,957 | 6,722,143 |
Digital marketing [Member] | |||
Category of Revenue | |||
Revenue | 632,070 | 6,191,046 | |
Digital asset development and others [Member] | |||
Category of Revenue | |||
Revenue | 11,507,587 | 4,019,266 | 1,354,995 |
Category of Revenue [Member] | |||
Category of Revenue | |||
Revenue | $ 26,889,911 | $ 17,188,293 | $ 14,268,184 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - Schedule of Unaudited Condensed Consolidated Financial Statements | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Unaudited Condensed Consolidated Financial Statements [Abstract] | |||
Year-end spot rate | 7.296 | 7.1135 | |
Average rate | 7.0553 | 6.5532 | 6.5072 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of Accounts Receivable, Net - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of Accounts Receivable, Net [Abstract] | ||
Accounts receivable | $ 3,682,126 | $ 2,106,445 |
Less: allowance for doubtful accounts | (395,796) | (4,780) |
Accounts receivable, net | $ 3,286,330 | $ 2,101,665 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of Allowance of Doubtful Accounts - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Allowance of Doubtful Accounts [Abstract] | ||
Balance at beginning of the period | $ 4,780 | $ 21,635 |
Addition | 404,595 | 45,649 |
Write-off | (61,734) | |
Foreign exchange translation | (13,579) | (770) |
Balance at end of the year | $ 395,796 | $ 4,780 |
Advance to Vendors (Details)
Advance to Vendors (Details) | 12 Months Ended | |
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Advance to Vendors [Abstract] | ||
allowance for doubtful accounts | $ (386,542) | |
Advance amount | $ 1,020,874 | $ 1,800,000 |
Number of vendor | 1 | |
Expected utilized term | 1 year |
Advance to Vendors (Details) -
Advance to Vendors (Details) - Schedule of Advance to Vendors - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of Advance to Vendors [Abstract] | ||
Prepayments for virtual technology services | $ 277,952 | $ 567,736 |
Prepayments for digital marketing | 400,042 | |
Prepayments for digital assets development | 3,723,351 | 2,375,516 |
Subtotal | 4,001,303 | 3,343,294 |
Less: allowance for doubtful accounts | (386,542) | |
Total | 3,614,761 | 3,343,294 |
Less: advance to vendors - noncurrent | 1,020,874 | 1,800,000 |
Advance to vendors – current | $ 2,593,887 | $ 1,543,294 |
Loans Receivable, Net (Details)
Loans Receivable, Net (Details) | 12 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2022 | Nov. 30, 2021 USD ($) | Nov. 30, 2021 CNY (¥) | Jan. 14, 2021 USD ($) | Oct. 20, 2020 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 USD ($) | Sep. 30, 2021 CNY (¥) | Oct. 20, 2023 | Jun. 28, 2023 | Jan. 14, 2023 USD ($) | Jan. 14, 2023 CNY (¥) | Oct. 20, 2022 USD ($) | Oct. 20, 2022 CNY (¥) | Jun. 28, 2022 USD ($) | Jun. 28, 2022 CNY (¥) | Jan. 31, 2021 USD ($) | Jan. 31, 2021 CNY (¥) | Jan. 14, 2021 CNY (¥) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 CNY (¥) | Oct. 20, 2020 CNY (¥) | Jun. 28, 2020 USD ($) | Jun. 28, 2020 CNY (¥) | |
Loans Receivable [Line Items] | |||||||||||||||||||||||||||
Lending amount | $ 10,088 | $ 496,632 | $ 363,162 | ¥ 2,340,000 | ¥ 65,000 | ¥ 3,200,000 | $ 712,854 | ¥ 4,840,000 | |||||||||||||||||||
Fixed interest rate | 5.20% | 5.20% | 5.20% | 5.20% | |||||||||||||||||||||||
Loan due | $ 356,427 | ¥ 2,420,000 | $ 356,427 | ¥ 2,420,000 | |||||||||||||||||||||||
Collection of loan | $ 63,098 | ¥ 400,000 | $ 184,311 | $ 112,644 | |||||||||||||||||||||||
Loan receivable balance | $ 9,137 | ¥ 65,000 | $ 449,849 | ¥ 3,200,000 | $ 295,213 | ¥ 2,100,000 | |||||||||||||||||||||
Interest rate | 5.20% | 5.20% | 5.20% | 5.20% | 5.20% | ||||||||||||||||||||||
Maturity interest | Jan. 24, 2023 | Jan. 14, 2023 | Oct. 20, 2022 | ||||||||||||||||||||||||
Interest income | $ 39,074 | ||||||||||||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||||||||||
Loans Receivable [Line Items] | |||||||||||||||||||||||||||
Interest rate | 5.20% | ||||||||||||||||||||||||||
Global Mofy China [Member] | |||||||||||||||||||||||||||
Loans Receivable [Line Items] | |||||||||||||||||||||||||||
Interest income | ¥ 275,600 | $ 42,456 | ¥ 278,221 | $ 42,164 | ¥ 274,370 |
Loans Receivable, Net (Detail_2
Loans Receivable, Net (Details) - Schedule of Loans Receivable Net Consisted - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 | |
Loans Receivable Net Disclosure [Line Items] | |||
Total loans receivable, net – current | $ 287,829 | $ 295,213 | |
Total loans receivable, net – noncurrent | 447,505 | 458,986 | |
Total loans receivable, net | 735,334 | 754,199 | |
Less: allowance for doubtful accounts | |||
Less: allowance for doubtful accounts | |||
Wuyuan Yangyang Culture Media Studio [Member] | |||
Loans Receivable Net Disclosure [Line Items] | |||
Total loans receivable, net – current | [1] | 287,829 | 295,213 |
Total loans receivable, net – noncurrent | [1] | ||
Pingnan Motian Culture Media Studio [Member] | |||
Loans Receivable Net Disclosure [Line Items] | |||
Total loans receivable, net – noncurrent | [2] | 438,596 | 449,849 |
Hanning Jin [Member] | |||
Loans Receivable Net Disclosure [Line Items] | |||
Total loans receivable, net – noncurrent | [3] | $ 8,909 | $ 9,137 |
[1] On June 28, 2020, Global Mofy China entered into a loan agreement with a third party, Wuyuan Yangyang Culture Media Studio (“Yangyang”) to lend $712,854 (or RMB 4,840,000) for its working capital needs with a fixed interest rate of 5.2% per annum. The amount of $356,427 (or RMB2,420,000) of the loan was due on December 31, 2020. The remaining amount of $356,427 (or RMB2,420,000) of the loan was due on June 28, 2022. A total of $363,162 (or RMB2,340,000) of the loan was collected in January 2021. A total of $63,098 (or RMB400,000) of the loan was collected in November 2021. On June 28, 2022, Global Mofy China renewed the loan agreement with Yangyang to extend the loan term of the loan receivable balance of $295,213 (or RMB2,100,000) for its working capital needs for one year and interest rate remained the original fixed rate of 5.2% per annum. On June 28, 2023, Global Mofy China renewed the loan with Yangyang for one year at an annual rate of 5.2%. On October 20, 2020, Global Mofy China entered into a loan agreement with a third party, Pingnan Motian Culture Media Studio (“Pingnan”) to lend $496,632 (or RMB 3,200,000) for its working capital needs with a maturity date of October 20, 2022. The loan bores a fixed interest rate of 5.2% per annum. On October 20, 2022, Global Mofy China renewed the loan agreement with Pingnan to extend the loan term of the loan receivable balance of $449,849 (or RMB3,200,000) for its working capital needs for one year and interest rate remained the original fixed rate of 5.2% per annum. On October 20, 2023, Global Mofy China renewed the loan with Pingnan for one year at an annual rate of 5.2%. On January 14, 2021, Global Mofy China entered into an interest-free loan agreement with Hanning Jin, a third party individual, to lend $10,088 (or RMB65,000) for working capital needs with a maturity date of January 14, 2023. On January 14, 2023, Global Mofy China renewed the interest-free loan agreement with Hanning Jin to extend the loan term of the loan receivable balance of $9,137 (or RMB65,000) for its working capital needs for one year. In January 2024, Global Mofy China renewed the interest-free loan with Hanning Jin for one year. |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Intangible Assets, Net [Abstract] | ||
Amortization expense | $ 426,983 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of Intangible Assets, Net | Sep. 30, 2023 USD ($) |
Intangible assets | |
Gross Carrying Amount, Intangible assets | $ 6,918,572 |
Accumulated Amortization, Intangible assets | (412,780) |
Licensed digital assets [Member] | |
Intangible assets | |
Gross Carrying Amount, Intangible assets | 6,918,572 |
Accumulated Amortization, Intangible assets | $ (412,780) |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of Amortization Expenses | Sep. 30, 2023 USD ($) |
Aggregate Amortization expenses: | |
For year ended 9/30/2023 | $ 412,780 |
Estimated Amortization Expenses: | |
For year ended 9/30/2024 | 1,512,046 |
For year ended 9/30/2025 | 1,507,914 |
For year ended 9/30/2026 | 1,287,201 |
For year ended 9/30/2027 | 1,197,414 |
For year ended 9/30/2028 | $ 1,001,217 |
Intangible Assets, Net (Detai_4
Intangible Assets, Net (Details) - Schedule of Movement of Intangible Assets | 12 Months Ended | |
Sep. 30, 2023 USD ($) | ||
Gross Carrying Amount [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning of the year | ||
Additions | 6,918,572 | [1] |
Disposal | ||
Foreign exchange translation | ||
Balance at end of the year | 6,918,572 | |
Accumulated Amortization [Member] | ||
Goodwill [Line Items] | ||
Balance at beginning of the year | ||
Additions | 426,983 | [1] |
Disposal | ||
Foreign exchange translation | (14,203) | |
Balance at end of the year | $ 412,780 | |
[1] Additions are all acquired from third-party suppliers in the current year. |
Leases (Details)
Leases (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Line Items] | |||
Operating lease expenses | $ 196,500 | $ 163,552 | $ 164,899 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Recognize Right-of-Use Assets and Lease Liabilities on the Balance Sheet - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of Recognize Right-of-Use Assets and Lease Liabilities on the Balance Sheet [Abstract] | ||
Operating lease right-of-use assets | $ 954,771 | $ 147,099 |
Operating lease liabilities – current | 293,040 | 120,418 |
Operating lease liabilities – noncurrent | 556,674 | |
Total operating lease liabilities | $ 849,714 | $ 120,418 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of Lease Term and the Weighted-Average Discount Rate | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of Lease Term and the Weighted-Average Discount Rate [Abstract] | ||
Weighted-average remaining lease term (years) | 2 years 5 months 12 days | 1 year 11 months 15 days |
Weighted-average discount rate | 4.75% | 4.75% |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of the Maturity of Operating Lease Liabilities - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of the Maturity of Operating Lease Liabilities [Abstract] | ||
2024 | $ 328,558 | |
2025 | 280,700 | |
2026 | 302,764 | |
Thereafter | ||
Total lease payments | 912,022 | |
Less: imputed interest | (62,308) | |
Total lease liabilities | $ 849,714 | $ 120,418 |
Short-Term Bank Loans (Details)
Short-Term Bank Loans (Details) | 12 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 20, 2023 USD ($) | Sep. 20, 2023 CNY (¥) | Apr. 30, 2023 USD ($) | Apr. 30, 2023 CNY (¥) | Mar. 30, 2023 USD ($) | Mar. 30, 2023 CNY (¥) | Mar. 17, 2023 USD ($) | Mar. 17, 2023 CNY (¥) | Feb. 13, 2023 USD ($) | Feb. 13, 2023 CNY (¥) | Sep. 19, 2022 USD ($) | Sep. 19, 2022 CNY (¥) | Jul. 29, 2022 USD ($) | Jul. 29, 2022 CNY (¥) | Jul. 27, 2022 USD ($) | Jul. 27, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2022 CNY (¥) | Nov. 14, 2021 USD ($) | Nov. 14, 2021 CNY (¥) | Sep. 30, 2021 CNY (¥) | Jul. 29, 2021 USD ($) | Jul. 29, 2021 CNY (¥) | Mar. 12, 2021 USD ($) | Mar. 12, 2021 CNY (¥) | |
Short-Term Bank Loans [Line Items] | ||||||||||||||||||||||||||||
Loan amount | $ 2,442,609 | $ 1,532,073 | $ 310,395 | $ 137,061 | ¥ 1,000,000 | $ 685,307 | ¥ 5,000,000 | $ 411,184 | ¥ 3,000,000 | $ 274,123 | ¥ 2,000,000 | $ 274,123 | ¥ 2,000,000 | $ 421,733 | ¥ 3,000,000 | $ 140,578 | ¥ 1,000,000 | $ 702,889 | ¥ 5,000,000 | $ 281,155 | ¥ 2,000,000 | $ 126,197 | ¥ 800,000 | ¥ 2,000,000 | $ 155,198 | ¥ 1,000,000 | $ 155,198 | ¥ 1,000,000 |
Fixed interest rate | 3.85% | 5.50% | 5.50% | 4.35% | 4.35% | 6% | 6% | 4.35% | 4.35% | 6% | 6% | 6% | 6% | 5.225% | 5.225% | 3.85% | 6.08% | 6.08% | ||||||||||
Weighted average annual interest rate | 5.49% | 4.35% | ||||||||||||||||||||||||||
Interest expense | $ 126,206 | $ 74,888 | $ 25,183 | |||||||||||||||||||||||||
Huaxia Bank [Member] | ||||||||||||||||||||||||||||
Short-Term Bank Loans [Line Items] | ||||||||||||||||||||||||||||
Loan amount | $ 685,307 | ¥ 5,000,000 |
Short-Term Bank Loans (Detail_2
Short-Term Bank Loans (Details) - Schedule of Short-Term Bank Loans | Sep. 30, 2023 USD ($) | Sep. 20, 2023 USD ($) | Sep. 20, 2023 CNY (¥) | Apr. 30, 2023 USD ($) | Apr. 30, 2023 CNY (¥) | Mar. 30, 2023 USD ($) | Mar. 30, 2023 CNY (¥) | Mar. 17, 2023 USD ($) | Mar. 17, 2023 CNY (¥) | Feb. 13, 2023 USD ($) | Feb. 13, 2023 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 19, 2022 USD ($) | Sep. 19, 2022 CNY (¥) | Jul. 29, 2022 USD ($) | Jul. 29, 2022 CNY (¥) | Jul. 27, 2022 USD ($) | Jul. 27, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2022 CNY (¥) | Nov. 14, 2021 USD ($) | Nov. 14, 2021 CNY (¥) | Sep. 30, 2021 USD ($) | Sep. 30, 2021 CNY (¥) | Jul. 29, 2021 USD ($) | Jul. 29, 2021 CNY (¥) | Mar. 12, 2021 USD ($) | Mar. 12, 2021 CNY (¥) | |
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||||
Short-term bank loans | $ 2,442,609 | $ 137,061 | ¥ 1,000,000 | $ 685,307 | ¥ 5,000,000 | $ 411,184 | ¥ 3,000,000 | $ 274,123 | ¥ 2,000,000 | $ 274,123 | ¥ 2,000,000 | $ 1,532,073 | $ 421,733 | ¥ 3,000,000 | $ 140,578 | ¥ 1,000,000 | $ 702,889 | ¥ 5,000,000 | $ 281,155 | ¥ 2,000,000 | $ 126,197 | ¥ 800,000 | $ 310,395 | ¥ 2,000,000 | $ 155,198 | ¥ 1,000,000 | $ 155,198 | ¥ 1,000,000 | |
Bank of China [Member] | |||||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||||
Short-term bank loans | [1] | 421,733 | |||||||||||||||||||||||||||
Bank of Nanjing [Member] | |||||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||||
Short-term bank loans | [2] | 411,184 | 421,733 | ||||||||||||||||||||||||||
Bank of Huaxia [Member] | |||||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||||
Short-term bank loans | [3] | 1,370,614 | 702,889 | ||||||||||||||||||||||||||
Bank of Hangzhou [Member] | |||||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||||
Short-term bank loans | [4] | 685,307 | |||||||||||||||||||||||||||
Deferred financing costs [Member] | |||||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||||
Deferred financing costs | [5] | $ (24,496) | $ (14,282) | ||||||||||||||||||||||||||
[1]On September 30, 2021, Global Mofy China entered into a loan agreement with Bank of China to obtain a loan of $310,395 (or RMB 2,000,000) for a term from September 30, 2021 to September 29, 2022 at a fixed annual interest rate of 3.85%. The loan is guaranteed by a third party, Beijing Shichuang Tongsheng Financing Guarantee Limited. The Company repaid the loan in advance on September 15, 2022. On September 19, 2022, the Company entered into a new loan agreement with Bank of China to obtain a loan of $421,733 (or RMB 3,000,000) for the period from September 19, 2022 to September 19, 2023 with a floating annual interest rate. The loan is guaranteed by a third party, Beijing Shichuang Tongsheng Financing Guarantee Limited. The Company is required to make quarterly interest payment with principal due at maturity. The Company repaid the loan in full upon maturity on September 19, 2023.[2]On March 12, 2021, Global Mofy China entered into a loan agreement with Bank of Nanjing to obtain a loan of $155,198 (or RMB1,000,000) for a term from March 12, 2021 to March 11, 2022. The loan was fully repaid on March 11, 2022. On July 29, 2021, Global Mofy China entered into another loan agreement with Bank of Nanjing to obtain a loan of $155,198 (or RMB1,000,000) for a term from July 29, 2021 to July 28, 2022. Both of these loans bore a fixed annual interest rate of 6.08%. On July 29, 2022, the Company renewed the loan agreement with Bank of Nanjing to obtain a loan of $140,578 (or RMB1,000,000) for the period from July 29, 2022 to July 29, 2023 with an annual interest rate of 6%. The Company repaid the loan on July 31, 2023. On March 31, 2022, Global Mofy China and Bank of Nanjing entered into a loan agreement to borrow $281,155 (or RMB2,000,000) of loan for the period from March 31, 2022 to March 31, 2023 with an annual interest rate of 6.0%. Mr. Haogang, Yang, the Chairman of the Company’s board of directors and CEO, together with his wife, Ms. Dong Mingxing, guaranteed the repayment of these loans. The Company repaid the loan in advance on March 16, 2023. On March 17, 2023, Global Mofy China and Bank of Nanjing entered into a loan agreement to borrow $274,123 (or RMB2,000,000) of loan for the period from March 17, 2023 to March 17, 2024 with an annual interest rate of 6%. Mr. Haogang, Yang, the Chairman of the Company’s board of directors and CEO, together with his wife, Ms. Dong Mingxing and Ms. Wenjun Jiang, the CTO of the Company, guaranteed the repayment of these loans. On September 20, 2023, Global Mofy China and Bank of Nanjing entered into a loan agreement to borrow $137,061 (or RMB1,000,000) of loan for the period from September 20, 2023 to September 20, 2024 with an annual interest rate of 5.5%. Mr. Haogang, Yang, the Chairman of the Company’s board of directors and CEO, together with his wife, Ms. Dong Mingxing, guaranteed the repayment of these loans.[3]On November 14, 2021, Global Mofy China and Huaxia Bank entered into a loan agreement to borrow $126,197 (or RMB800,000) of loan for the period from November 14, 2021 to November 14, 2022 with an annual interest rate of 5.225%. The Company’s CEO, Mr. Haogang Yang, and his wife, Ms. Mingxing Dong, provided guarantee to this loan. The Company is required to make monthly interest payment with principal due at maturity. On July 8, 2022, the Company repaid loan in advance. On July 27, 2022, Global Mofy China and Huaxia Bank entered into a loan agreement to borrow $702,889 (or RMB5,000,000) of loan for the period from July 27, 2022 to July 27, 2023 with a floating annual interest rate. The loan is guaranteed by a third party, Beijing Zhongguancun Technology Financing Guarantee Limited. The Company is required to make monthly interest payment with principal due at maturity. The Company repaid the loan on July 31, 2023. On March 17, 2023, Global Mofy China and Huaxia Bank entered into a loan agreement to borrow $685,307 (or RMB5,000,000) of loan for the period from March 17, 2023 to March 17, 2024 with a floating annual interest rate. The loan is guaranteed by a third party, Beijing Zhongguancun Technology Financing Guarantee Limited. On August 30, 2023, Global Mofy China and Huaxia Bank entered into a loan agreement to borrow $685,307 (or RMB5,000,000) of loan for the period from August 30, 2023 to August 30, 2024 with a floating annual interest rate. The loan is guaranteed by a third party, Beijing Zhongguancun Technology Financing Guarantee Limited.[4]On February 13, 2023, Global Mofy China entered into a loan agreement with Bank of Hangzhou to obtain a loan of $274,123 (or RMB 2,000,000) for a term from February 13, 2023 to February 12, 2024 at a fixed annual interest rate of 4.35%. The loan is guaranteed by a third party, Beijing Yizhuang Guoji Financing Guarantee Limited. On March 30, 2023, Global Mofy China entered into a loan agreement with Bank of Hangzhou to obtain a loan of $411,184 (or RMB 3,000,000) for a term from March 30, 2023 to December 29, 2023 at a fixed annual interest rate of 4.35%. The Company’s CEO, Mr. Haogang Yang, and his wife, Ms. Mingxing Dong, provided guarantee to this loan. The Company repaid the loan in full upon maturity on December 29, 2023.[5] In order to obtain the guarantees provided by the third-party guaranty company for the loans from banks, the Company incurred guarantee fees, which are deferred and presented on the consolidated balance sheets as a direct deduction from the carrying amount of the loans and amortized to interest expense over the term of the associated loans. |
Loans from Third Parties (Detai
Loans from Third Parties (Details) | Sep. 30, 2022 USD ($) | Jan. 14, 2021 | Oct. 20, 2020 | Sep. 30, 2023 USD ($) | Jun. 30, 2023 CNY (¥) | Jan. 31, 2023 USD ($) | Jan. 31, 2023 CNY (¥) | Jan. 24, 2023 USD ($) | Jan. 24, 2023 CNY (¥) | Sep. 30, 2022 CNY (¥) |
Loans from Third Parties [Line Items] | ||||||||||
Loan balance | $ 108,245 | $ 22,615 | ¥ 770,000 | |||||||
Maturity date | Jan. 24, 2023 | Jan. 14, 2023 | Oct. 20, 2022 | |||||||
Loan repaid | $ 82,237 | ¥ 600,000 | ||||||||
Beijing Angel Palace Education Technology Co.[Member] | ||||||||||
Loans from Third Parties [Line Items] | ||||||||||
Loan balance | $ 108,245 | ¥ 770,000 | ||||||||
Maturity date | Mar. 09, 2023 | |||||||||
Wuxi Huanxiang Culture Co., Ltd.[Member] | ||||||||||
Loans from Third Parties [Line Items] | ||||||||||
Loan balance | $ 107,542 | ¥ 765,000 | ||||||||
Wuxi Huanxiang Xiniu Culture Co., Ltd [Member] | ||||||||||
Loans from Third Parties [Line Items] | ||||||||||
Loan balance | $ 107,542 | ¥ 765,000 |
Loans from Third Parties (Det_2
Loans from Third Parties (Details) - Schedule of Loans from Third Parties | Sep. 30, 2023 USD ($) | Jun. 30, 2023 CNY (¥) | Sep. 30, 2022 USD ($) |
Schedule of Loans from Third Parties [Line Items] | |||
Loans from third parties – current | $ 22,615 | ¥ 770,000 | $ 108,245 |
Loans from third party – noncurrent | 107,542 | ||
Total loans from third parties | $ 22,615 | $ 215,787 |
Related Party Transactions an_3
Related Party Transactions and Balances (Details) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 USD ($) | Sep. 30, 2022 CNY (¥) | |
Related Party Transactions and Balances [Line Items] | |||
Maturity date | Aug. 24, 2023 | ||
Moxing Shangxing (Beijing) Technology Co., Ltd [Member] | |||
Related Party Transactions and Balances [Line Items] | |||
Interest-free loan | ¥ | ¥ 1,300,000 | ||
Moxing Shangxing (Beijing) Technology Co., Ltd [Member] | |||
Related Party Transactions and Balances [Line Items] | |||
Interest-free loan | $ | $ 182,751 |
Related Party Transactions an_4
Related Party Transactions and Balances (Details) - Schedule of Nature of Relationships with Related Parties | 12 Months Ended |
Sep. 30, 2023 | |
Mr. Jianru Yang [Member] | |
Schedule of Nature of Relationships with Related Parties [Line Items] | |
Relationship with the Company | Business Development Director of the Company |
Mr. Yuchao Lu [Member] | |
Schedule of Nature of Relationships with Related Parties [Line Items] | |
Relationship with the Company | Directly hold a 5.05% equity interest in the Company |
Ms. Yang Li [Member] | |
Schedule of Nature of Relationships with Related Parties [Line Items] | |
Relationship with the Company | Finance Controller of the Company |
Lianyungang Zongteng Film Studio [Member] | |
Schedule of Nature of Relationships with Related Parties [Line Items] | |
Relationship with the Company | Controlled by Mr. Yuchao Lu |
Moxing Shangxing (Beijing) Technology Co., Ltd [Member] | |
Schedule of Nature of Relationships with Related Parties [Line Items] | |
Relationship with the Company | Controlled by Mr. Jianru Yang |
Mofy Filming (Hainan) Co., Ltd. (“Mofy Hainan”) [Member] | |
Schedule of Nature of Relationships with Related Parties [Line Items] | |
Relationship with the Company | Ms. Yang li is the Finance Controller of Mofy Hainan |
Related Party Transactions an_5
Related Party Transactions and Balances (Details) - Schedule of Transactions with Related Parties - USD ($) | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Mofy Filming (Hainan) Co., Ltd. (“Mofy Hainan”) [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue earned from related parties | $ 1,439,596 | |||
Moxing Shangxing (Beijing) Technology Co., Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue earned from related parties | [1] | 1,208,397 | ||
Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue earned from related parties | 2,647,993 | |||
Lianyungang Zongteng Film Studio [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue earned from related parties | $ 10,808 | |||
[1] As of September 30, 2022, the balance of $182,751 (or RMB1,300,000) represented the interest-free loan lend to Moxing Shangxing (Beijing) Technology Co., Ltd. for the working capital purpose, with the maturity date due on August 24, 2023. The loan was fully collected in December 2022. |
Related Party Transactions an_6
Related Party Transactions and Balances (Details) - Schedule of Balances with Related Parties - Moxing Shangxing (Beijing) Technology Co., Ltd [Member] - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Balances with Related Parties [Line Items] | |||
Accounts receivable – related party | $ 298,587 | ||
Due from related party | [1] | $ 182,751 | |
[1] As of September 30, 2022, the balance of $182,751 (or RMB1,300,000) represented the interest-free loan lend to Moxing Shangxing (Beijing) Technology Co., Ltd. for the working capital purpose, with the maturity date due on August 24, 2023. The loan was fully collected in December 2022. |
Taxes (Details)
Taxes (Details) $ in Millions | 12 Months Ended | ||||
Sep. 30, 2023 USD ($) | Sep. 30, 2023 HKD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 | ||
Taxes [Line Items] | |||||
Tax rate (in Dollars) | $ 2 | ||||
Percentage of tax rate | 8.25% | 8.25% | |||
Tax rate | [1] | 14.20% | 14.20% | 11.60% | 21% |
Preferential tax rate period | 15% | 15% | |||
Tax rate holiday | $ 1,086,519 | ||||
Net operating loss carry forward | 400,000 | ||||
Valuation allowance | 151,230 | ||||
Unrecognized tax benefits | 1,066,949 | ||||
Accrued interest | |||||
HONG KONG [Member] | |||||
Taxes [Line Items] | |||||
Tax rate (in Dollars) | $ 2 | ||||
Percentage of tax rate | 16.50% | 16.50% | |||
PRC [Member] | |||||
Taxes [Line Items] | |||||
Tax rate | 25% | 25% | |||
Reduced income tax rate | 15% | 15% | |||
Deferred Tax [Member] | |||||
Taxes [Line Items] | |||||
Valuation allowance | $ 162,974 | 76,368 | |||
Xi’an Mofy and Beijing Mofy [Member] | |||||
Taxes [Line Items] | |||||
Tax rate holiday | $ 0.04 | $ 0 | |||
[1] The Company’s subsidiaries, Global Mofy China, Kashi Mofy, Shanghai Mofy, Xi’an Mofy and Beijing Mofy are subject to different favorable tax rates and tax holiday for the years ended September 30, 2023 and 2022. For the years ended September 30, 2023 and 2022, as for the years ended September 30, 2022 is a negative amount, there is not a tax saving, the tax saving as the result of the favorable tax rate and tax holiday amounted to $1,086,519 and $ nil |
Taxes (Details) - Schedule of P
Taxes (Details) - Schedule of Pre-Tax Income (loss) is Derived - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Pre-Tax Income (loss) is Derived [Line Items] | |||
Income (loss) before income taxes | $ 7,649,346 | $ (265,241) | $ 1,424,159 |
PRC [Member] | |||
Schedule of Pre-Tax Income (loss) is Derived [Line Items] | |||
Income (loss) before income taxes | 8,637,772 | (180,032) | 1,424,159 |
HK [Member] | |||
Schedule of Pre-Tax Income (loss) is Derived [Line Items] | |||
Income (loss) before income taxes | (30) | (2,136) | |
Cayman [Member] | |||
Schedule of Pre-Tax Income (loss) is Derived [Line Items] | |||
Income (loss) before income taxes | $ (988,396) | $ (83,073) |
Taxes (Details) - Schedule of_2
Taxes (Details) - Schedule of Provision for Income Tax - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Provision for Income Tax [Line Items] | |||
Deferred income tax benefit | |||
Income tax provision | 1,098,087 | 9,992 | |
Current income tax expense [Member] | |||
Schedule of Provision for Income Tax [Line Items] | |||
Current income tax expense | $ 1,098,087 | $ 9,992 |
Taxes (Details) - Schedule of R
Taxes (Details) - Schedule of Reconciles the Statutory Rate | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Schedule of Reconciles the Statutory Rate [Line Items] | ||||
PRC statutory tax rate | 25% | 25% | 25% | |
Effect of tax holiday and preferential tax rate | [1] | (14.20%) | (11.60%) | (21.00%) |
Effect of tax rate in a foreign jurisdiction | 3.20% | (7.80%) | ||
Additional deduction for R&D expenses | (1.00%) | |||
Non-deductible expenses | 0.10% | (10.60%) | 2.80% | |
Operating income offset loss carryforward | ||||
Change of tax rate | ||||
Change in valuation allowance | 1.20% | 5% | (6.10%) | |
Effective tax rate | 14.30% | 0% | 0.70% | |
[1] The Company’s subsidiaries, Global Mofy China, Kashi Mofy, Shanghai Mofy, Xi’an Mofy and Beijing Mofy are subject to different favorable tax rates and tax holiday for the years ended September 30, 2023 and 2022. For the years ended September 30, 2023 and 2022, as for the years ended September 30, 2022 is a negative amount, there is not a tax saving, the tax saving as the result of the favorable tax rate and tax holiday amounted to $1,086,519 and $ nil |
Taxes (Details) - Schedule of C
Taxes (Details) - Schedule of Components of Deferred Tax Assets and Liabilities - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of Components of Deferred Tax Assets and Liabilities [Line Items] | ||
Provision for doubtful debt | $ 110,374 | $ 773 |
Tax loss carry forwards | 70,341 | 75,595 |
Operating lease liabilities | 133,489 | |
Total deferred tax assets | 314,204 | 76,368 |
Less: Valuation allowance | (162,974) | (76,368) |
Total deferred tax assets, net of valuation allowace | $ 151,230 |
Taxes (Details) - Schedule of N
Taxes (Details) - Schedule of Net Operating Loss Carry Forward - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of Net Operating Loss Carry Forward [Line Items] | ||
Right of use assets | $ 151,230 | |
Total deferred tax liabilities | 151,230 | |
Total deferred tax assets, net |
Taxes (Details) - Schedule of V
Taxes (Details) - Schedule of Valuation Allowance of Deferred Tax Assets - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Valuation Allowance of Deferred Tax Assets [Line Items] | ||
Balance as of beginning of year | $ (76,368) | $ (97,933) |
Additions of valuation allowance | (134,811) | 21,565 |
Reductions of valuation allowance | 43,249 | |
Exchange difference | 4,956 | |
Balance as of end of year | $ (162,974) | $ (76,368) |
Taxes (Details) - Schedule of U
Taxes (Details) - Schedule of Unrecognized Tax Benefit - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Unrecognized Tax Benefit [Line Items] | ||
Balance as of beginning of year | ||
Increase related to prior year tax positions | 5,639 | |
Increase related to current year tax positions | 1,061,310 | |
Balance as of end of year | $ 1,066,949 |
Taxes (Details) - Schedule of T
Taxes (Details) - Schedule of Tax Payable - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Tax Payable [Line Items] | ||
VAT payable | $ 487,744 | $ 468,586 |
Corporate income tax payable | 1,066,949 | 5,784 |
Other tax | 366 | |
Tax payable | $ 1,555,059 | $ 474,370 |
Equity (Details)
Equity (Details) | 12 Months Ended | ||||||||
Sep. 30, 2022 USD ($) $ / shares shares | Apr. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) $ / shares shares | Feb. 10, 2023 USD ($) $ / shares shares | Feb. 10, 2023 CNY (¥) shares | Nov. 15, 2022 USD ($) shares | Sep. 16, 2022 USD ($) $ / shares shares | Jan. 15, 2022 $ / shares shares | Sep. 29, 2021 $ / shares shares | |
Equity [Line Items] | |||||||||
Ordinary share authorized | 25,000,000,000 | 25,000,000,000 | |||||||
Ordinary value,per share (in Dollars per share) | $ / shares | $ 0.000002 | $ 0.000002 | |||||||
Ordinary shares issued | 23,618,037 | 25,926,155 | |||||||
Cash consideration received (in Dollars) | $ | $ 2,000,000 | ||||||||
Share capital (in Dollars) | $ | $ 50,000 | ||||||||
Surrendered ordinary shares | 381,963 | 1,653,155 | |||||||
Cancelled surrendered shares | 381,963 | 1,653,155 | |||||||
Investor agreed to invest (in Dollars) | $ | $ 1,500,000 | ||||||||
Ordinary shares authorized | 381,963 | ||||||||
Aggregate amount | $ 9,400,000 | ¥ 65,000,000 | |||||||
Amount received (in Dollars) | $ | $ 9,400,000 | ||||||||
Ordinary share outstanding | 23,618,037 | 25,926,155 | |||||||
Fund statutory reserves | 50% | 50% | |||||||
Retained earnings statutory reserves (in Dollars) | $ | $ 39,620 | $ 368,271 | |||||||
Restricted net assets (in Dollars) | $ | 3,151,848 | $ 4,100,499 | |||||||
Common Stock [Member] | |||||||||
Equity [Line Items] | |||||||||
Ordinary share authorized | 25,000,000,000 | 5,000,000,000 | |||||||
Ordinary value,per share (in Dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | |||||||
Ordinary shares issued | 130,631 | 5,000,000 | |||||||
Minimum [Member] | |||||||||
Equity [Line Items] | |||||||||
Fund statutory reserves | 10% | ||||||||
Maximum [Member] | |||||||||
Equity [Line Items] | |||||||||
Fund statutory reserves | 50% | ||||||||
PRC Company Laws [Member] | |||||||||
Equity [Line Items] | |||||||||
Retained earnings statutory reserves (in Dollars) | $ | $ 39,620 | $ 368,271 | |||||||
Common Stock [Member] | |||||||||
Equity [Line Items] | |||||||||
Ordinary shares issued | 23,618,037 | 25,926,155 | |||||||
Ordinary share outstanding | 23,618,037 | 25,926,155 | |||||||
Board of Directors Chairman [Member] | |||||||||
Equity [Line Items] | |||||||||
Ordinary value,per share (in Dollars per share) | $ / shares | $ 0.000002 | ||||||||
Ordinary shares issued | 25,000,000 | ||||||||
Viru Technology [Member] | |||||||||
Equity [Line Items] | |||||||||
Ordinary value,per share (in Dollars per share) | $ / shares | $ 0.000002 | ||||||||
Surrendered ordinary shares | 41,155 | ||||||||
Anguo [Member] | |||||||||
Equity [Line Items] | |||||||||
Ordinary value,per share (in Dollars per share) | $ / shares | $ 0.000002 | ||||||||
Ordinary shares issued | 740,829 | 740,829 | |||||||
Anjiu [Member] | |||||||||
Equity [Line Items] | |||||||||
Ordinary value,per share (in Dollars per share) | $ / shares | $ 0.000002 | ||||||||
Ordinary shares issued | 740,829 | 740,829 | |||||||
Anling [Member] | |||||||||
Equity [Line Items] | |||||||||
Ordinary value,per share (in Dollars per share) | $ / shares | $ 0.000002 | ||||||||
Ordinary shares issued | 444,497 | 444,497 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Jan. 04, 2024 | Dec. 31, 2023 | Oct. 31, 2023 |
Subsequent Events [Line Items] | |||
Ordinary Shares (in Shares) | 1,379,313 | ||
Price per share (in Dollars per share) | $ 7.25 | ||
Over-allotment arrangement | $ 10,000,000 | ||
Warrants | $ 2,068,970 | ||
IPO [Member] | |||
Subsequent Events [Line Items] | |||
Ordinary Shares (in Shares) | 1,240,000 | ||
shares (in Dollars per share) | $ 1,200,000 | ||
Over-Allotment Option [Member] | |||
Subsequent Events [Line Items] | |||
shares (in Dollars per share) | 40,000 | ||
Price per share (in Dollars per share) | $ 5 | ||
Over-allotment arrangement | $ 6,200,000 | ||
Subsequent Event [Member] | |||
Subsequent Events [Line Items] | |||
Net proceeds | $ 8.9 | $ 4.9 | |
Subsequent Event [Member] | |||
Subsequent Events [Line Items] | |||
Investment amount | $ 8,000,000 |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company (Details) - Schedule of Balance Sheets - Parent Company [Member] - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
ASSETS | ||
Cash | $ 235,014 | $ 4,170 |
Short-term investments | 780,000 | |
Due from subsidiaries | 10,630,138 | 1,870,008 |
Prepaid expenses and other current assets, net | 105,000 | |
Prepaid expenses and other noncurrent assets, net | 163,589 | 92,722 |
Investment in subsidiaries | 11,103,806 | 2,967,699 |
Total Assets | 23,017,547 | 4,934,599 |
Current liabilities | ||
Accrued expenses and other liabilities | 62,157 | 49,973 |
Total current liabilities | 62,157 | 49,973 |
Equity: | ||
Common stock (US$0.000002 par value, 25,000,000,000 shares authorized, 25,926,155 and 23,618,037 shares issued and outstanding as of September 30, 2023 and 2022, respectively) | 52 | 47 |
Additional paid-in capital | 16,035,229 | 5,112,181 |
Statutory reserves | 368,271 | 39,620 |
Accumulated deficit | 6,551,838 | (267,222) |
Total equity | 22,955,390 | 4,884,626 |
Total liabilities and shareholders’ equity | $ 23,017,547 | $ 4,934,599 |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company (Details) - Schedule of Balance Sheets (Parentheticals) - Parent Company [Member] - $ / shares | Sep. 30, 2023 | Sep. 30, 2022 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value (in Dollars per share) | $ 0.000002 | $ 0.000002 |
Common stock, shares authorized | 25,000,000,000 | 25,000,000,000 |
Common stock, shares issued | 25,926,155 | 23,618,037 |
Common stock, shares outstanding | 25,926,155 | 23,618,037 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company (Details) - Schedule of Statements of Operations and Comprehensive Income (Loss) - Parent Company [Member] - USD ($) | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | [1] | |
Operating expenses: | ||||
General and administrative expenses | $ (611,474) | $ (83,073) | ||
Equity income (loss) in subsidiaries | 7,163,312 | (184,149) | ||
Net income (loss) | 6,551,838 | (267,222) | ||
Foreign currency translation adjustment | ||||
Comprehensive income (loss) | $ 6,551,838 | $ (267,222) | ||
[1] The Company was established on September 29, 2021 and has no operation for the year ended September 30, 2021. |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company (Details) - Statements of Cash Flows - Parent Company [Member] - USD ($) | 12 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | [1] | ||
Condensed Cash Flow Statements, Captions [Line Items] | |||||
Net cash used in investing activities | $ (10,621,341) | $ (1,903,038) | |||
Net cash provided by financing activities | 10,852,185 | 1,907,208 | |||
Effect of exchange rate changes on cash | |||||
Net increase in cash | 230,844 | 4,170 | |||
Cash at the beginning of the year | 4,170 | [1] | |||
Cash at the end of the year | $ 235,014 | $ 4,170 | |||
[1] The Company was established on September 29, 2021 and has no operation for the year ended September 30, 2021. |