| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) 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) The
consolidated financial statements include the financial statements of the Company and its subsidiaries. All transactions and balances
between the Company and its subsidiaries have been eliminated upon consolidation. (c) 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. (d) 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% ownership interest in Beijing Mofy and Xi’an Mofy as of September 30, 2024 and 2023, 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. (e) 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 credit losses, 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, fair value of warrants liabilities and fair value of stock-based compensation. Actual results could differ from those estimates. (f) Cash
includes cash on hand and demand deposits placed with commercial banks. The Company maintains most of the bank accounts in mainland China. Restricted cash includes cash that has been deposited in time certificates
with a bank. (g)
Short-term
investments consist of wealth management products issued by a private equity fund. During the year ended September 30, 2023, the
Company purchased certain financial products and accounted for such investments as “short-term investments” and measured
the investments at fair value. During the year ended September 30, 2024, the Company redeemed all of its short-term
investments. (h) Accounts receivable are presented net of an allowance
for credit losses. The Company maintains an allowance for credit losses for estimated losses. Pursuant to the requirements of the Financial
Accounting Standards Board’s Accounting Standards Codification Topic 326, Financial Instruments - Credit Losses (i) 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. Accumulated depreciation was $324,556 and
$514,161 as of September 30, 2024 and 2023, 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 (j) Intangible
assets are digital assets acquired from third-party suppliers and mainly include 3D models with finite lives and 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 life. Estimated
useful lives are as follows:
Category Estimated
useful life
Licensed
digital assets 3-5 years Licensing assets should be capitalized if they
meet the following conditions: The license provides the Company with the exclusive
or non-exclusive right to use the intellectual property for a specific period. The acquired license has a determinable useful
life, and the costs are directly attributable to the acquisition. The contract is enforceable and provides rights
that the Company can rely on for future benefit. The acquisition of the license is not considered
part of ordinary inventory or operating costs. (k)
The
Company’s long-term investments include equity investments in entities. Equity securities without readily determinable fair values
and over which the Company has neither significant influence nor control through investments in common stock or in-substance common stock
are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus
changes resulting from qualifying observable price changes. In
December 2023, the Company made an investment of $284,998 (or RMB 2,000,000) in New Era (Beijing) Technology Co., Ltd
(“New Era Technology”), over which the Company owned 6.25% equity interest. The carrying value of the
Company’s long-term investments measured under this alternative measurement was $284,998 as of September 30,
2024. (l) 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,
2024 and 2023. (m) The Company applies ASC Topic 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, advances 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, 2024
Short-term
investments $ — $ — $ —
Warrant liabilities — — —
Total $ — $ — $ —
Level
1 Level
2 Level
3
As
of September 30, 2023
Short-term
investments $ — $ 780,000 $ —
Total $ — $ 780,000 $ — (n) The Company accounts for leases in accordance
with ASC Topic 842, Leases 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 leases on a straight-line basis over the lease term. (o) The
Company adopted ASC Topic 606, Revenue from Contracts with Customers 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 effects in movies, television series, animations, games, advertisements, tourism,
augmented reality (“AR”) and virtual reality (“VR”) technology, etc. The virtual content production contracts
are primarily on a fixed price basis, which requires the Company to perform services for visual effects 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 to be 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 satisfies its performance obligation at a point in time only when it transfers the developed content to the
customer. The virtual content becomes an asset when it is 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 is completed and control has transferred 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 is collected in advance based on the contract upon each milestone and 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 the 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 formats and include but are not limited to short video, landing pages and static
materials. The Company considers both the advertisement production and promotion services to be highly interrelated and not separately
identifiable. The Company’s overall promise represents a combined output that is a single performance obligation; there are no multiple
performance obligations. The Company engages a third-party advising distributor while providing the promotional services. The Company
considers itself to be the principal of the services as it has control of the specified services before they are transferred to the customers,
which is evidenced by (i) the Company is primarily responsible for the production of content for advertisements, and (ii) the
Company has latitude to select third-party distributors for promotion and to 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, or “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 Company’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 earned net fees from advertisers by acting as
an agent to purchase advertisement inventories and advertise services on behalf of the advertisers. The Company recognized revenues
over the contracted service period. The Company was not a principal in these arrangements as it did 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, adaptation 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 of the criteria stated in ASC 610-10-55-62 are 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 the point in time when the licensed copyright and digital asset are made available for the customer’s
use and benefit. Disaggregation
of revenue The
following table summarizes disaggregated revenue for the years ended September 30, 2024, 2023 and 2022:
For the years ended
2024 2023 2022
US$ US$ US$
Category of Revenue
Virtual
technology service $ 20,900,022 $ 15,382,324 $ 12,536,957
Digital
marketing — — 632,070
Digital
asset development and others 20,460,931 11,507,587 4,019,266
$ 41,360,953 $ 26,889,911 $ 17,188,293
Timing
of Revenue Recognition
Services
transferred at a point in time $ 41,360,953 $ 26,889,911 $ 16,556,223
Services
transferred over time — — 632,070
$ 41,360,953 $ 26,889,911 $ 17,188,293
Revenue recognized on gross basis $ 41,360,953 $ 26,889,911 $ 16,556,223
Revenue recognized on
net basis — — 632,070
$ 41,360,953 $ 26,889,911 $ 17,188,293 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 advances from customers and are recognized as revenue as the Company satisfies its performance obligations.
As of September 30, 2024 and 2023, the balance of advances from customers amounted to $3,837,621 and $345,838, respectively. Substantially
all of advances from customers will be recognized as revenue during the Company’s following fiscal year. (p) 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. (q) 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. (r) 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. (s) 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, 2024, 2023 and 2022, as no
such costs qualified for capitalization, all of the costs incurred for the internally developed IP of virtual content, scripts and digital
assets to be licensed or sold are expensed. (t) The Company accounts for income taxes in accordance
with ASC Topic 740, Income Taxes nil nil The provisions of ASC 740-10-25, Accounting
for Uncertainty in Income Taxes (u) 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. (v)
The
Company accounts for the warrants issued in connection with ordinary shares (see note 12) in December 2023 in accordance with the
guidance contained in ASC Topic 815-40, Derivatives and Hedging - Contracts in Entity’s Own Equity (w) The Company computes earnings (loss) per share (“EPS”)
in accordance with ASC Topic 260, Earnings per Share (x) 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 7.0176 7.2960
For
the years ended
2024 2023 2022
Average
rate 7.2049 7.0553 6.5532 (y) The Company recognizes stock-based compensation
expense on a straight-line basis over the applicable requisite service period, based on the grant-date fair value of the award. To the
extent a stock-based award is subject to performance conditions, the amount of expense recorded in a given period, if any, reflects the
Company’s assessment of the probability of achieving the performance targets. Fair value of stock options and shares subject
to the Company’s employee stock purchase plan are estimated using the Black-Scholes valuation model; fair value of performance share
unit (“PSU”) awards, restricted stock unit (“RSU”) awards and restricted stock awards (“RSA”) is based
on the closing market price on the day preceding the grant. The company’s accounting treatment of forfeiture expenses reversals
is at the forfeiture date and does not estimate future forfeitures prior to their actual occurrence. Shares to be issued upon the exercise of stock
options or the requisite service period of stock awards will come from newly issued shares. (z) ASC Topic 280, Segment Reporting 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. (aa) 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, 2024 and 2023, cash balances
in the PRC are $5,691,192 and $10,195,088, 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, 2024, two customers accounted for approximately 13% and 11% of total revenues,
respectively. As of September 30, 2024, the balance due from four customers accounted for
approximately 36%, 15%, 14% and 12% of the Company’s total accounts receivable, respectively. 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. Major
Suppliers For
the year ended September 30, 2024, two suppliers accounted for approximately 14% and 13% of the total
purchases, respectively. As of September 30, 2024, four suppliers accounted for approximately 22%, 16%, 11% and 10%
of the Company’s accounts payable, respectively. 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. 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 are 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, 2024, 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. (ab) 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 |
