Cover
Cover | 12 Months Ended |
Sep. 30, 2022 | |
Entity Addresses [Line Items] | |
Document Type | F-1/A |
Amendment Flag | true |
Amendment Description | AMENDMENT NO. 2 |
Entity Registrant Name | Starbox Group Holdings Ltd. |
Entity Central Index Key | 0001914818 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | VO2-03-07, Velocity Office 2 |
Entity Address, Address Line Two | Lingkaran SV |
Entity Address, Address Line Three | Sunway Velocity |
Entity Address, City or Town | Kuala Lumpur |
Entity Address, Country | MY |
Entity Address, Postal Zip Code | 55100 |
City Area Code | 603 |
Local Phone Number | 2781 9066 |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 122 East 42nd Street |
Entity Address, Address Line Two | 18th Floor |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10168 |
City Area Code | 800 |
Local Phone Number | 221-0102 |
Contact Personnel Name | Cogency Global Inc. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
CURRENT ASSETS | ||
Cash | $ 17,778,895 | $ 2,295,277 |
Accounts receivable, net | 2,032,717 | 1,362,417 |
Due from related party | 1,473 | |
Prepaid expenses and other current assets | 4,269,611 | 40,001 |
TOTAL CURRENT ASSETS | 24,082,696 | 3,697,695 |
Property and equipment, net | 13,380 | 12,176 |
Intangible assets, net | 903,768 | |
Right-of-use assets, net | 42,574 | 305,264 |
TOTAL NONCURRENT ASSETS | 959,722 | 317,440 |
TOTAL ASSETS | 25,042,418 | 4,015,135 |
CURRENT LIABILITIES | ||
Deferred revenue | 800,492 | |
Taxes payable | 1,404,128 | 874,834 |
Due to related parties | 7,361 | 756,478 |
Operating lease liabilities, current | 15,833 | 72,362 |
Accrued expenses and other current liabilities | 541,050 | 16,834 |
TOTAL CURRENT LIABILITIES | 1,968,372 | 2,521,000 |
Operating lease liabilities, non-current | 26,741 | 232,902 |
Total Liabilities | 1,995,113 | 2,753,902 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY | ||
Ordinary common shares, $0.001125 par value, 883,000,000 shares authorized, 45,375,000 shares and 40,000,000 shares issued and outstanding as of September 30, 2022 and 2021, respectively* | 51,047 | 45,000 |
Additional paid-in capital | 18,918,303 | 155,024 |
Retained earnings | 4,685,007 | 1,082,642 |
Accumulated other comprehensive loss | (607,052) | (21,433) |
TOTAL SHAREHOLDERS’ EQUITY | 23,047,305 | 1,261,233 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 25,042,418 | 4,015,135 |
Preferred Class A [Member] | ||
SHAREHOLDERS’ EQUITY | ||
Preferred shares, $0.001125 par value, 5,000,000 shares authorized, none issued and outstanding* |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | 12 Months Ended | ||||||
Jun. 08, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 13, 2021 | ||||
Statement of Financial Position [Abstract] | |||||||
Preferred stock, par value | $ 0.001125 | $ 0.001125 | [1] | $ 0.001125 | [1] | $ 0.0001 | |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | [1] | 5,000,000 | [1] | 50,000,000 | |
Preferred stock, shares issued | [1] | 0 | 0 | ||||
Preferred stock, shares outstanding | [1] | 0 | 0 | ||||
Common stock, par value | $ 0.001125 | $ 0.001125 | [1] | $ 0.001125 | [1] | $ 0.0001 | |
Common stock, shares authorized | 883,000,000 | 883,000,000 | [1] | 883,000,000 | [1] | 450,000,000 | |
Common stock, shares issued | 45,375,000 | [1] | 40,000,000 | [1] | 450,000,000 | ||
Common stock, shares outstanding | 45,375,000 | [1] | 40,000,000 | [1] | 450,000,000 | ||
Reverse stock split | a reverse split of the Company’s outstanding ordinary shares at a ratio of 1-for-11.25 shares, and (iii) a reverse split of the Company’s authorized and unissued preferred shares at a ratio of 1-for-11.25 shares. | 1-for-11.25 | |||||
[1]Retrospectively restated for the effect of a 1-for-11.25 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
OPERATING REVENUE | |||
Total operating revenue | $ 7,194,187 | $ 3,166,228 | $ 153,863 |
OPERATING COSTS | |||
Cost, selling, general and administrative expenses | 2,243,750 | 1,026,339 | 344,026 |
Total operating costs | 2,243,750 | 1,026,339 | 344,026 |
INCOME (LOSS) FROM OPERATIONS | 4,950,437 | 2,139,889 | (190,163) |
OTHER INCOME | 59,377 | 166 | |
INCOME (LOSS) BEFORE INCOME TAX PROVISION | 5,009,814 | 2,140,055 | (190,163) |
PROVISION FOR INCOME TAXES | 1,407,449 | 692,405 | 14,991 |
NET INCOME (LOSS) | 3,602,365 | 1,447,650 | (205,154) |
OTHER COMPREHENSIVE LOSS | |||
Foreign currency translation adjustment | (585,619) | (19,063) | (1,829) |
COMPREHENSIVE INCOME (LOSS) | $ 3,016,746 | $ 1,428,587 | $ (206,983) |
Earnings(loss) per ordinary common share- basic and diluted | $ 0.09 | $ 0.04 | $ (0.01) |
Weighted average number of ordinary common shares- basic and diluted | 40,544,863 | 40,000,000 | 40,000,000 |
Digital Advertising Services [Member] | |||
OPERATING REVENUE | |||
Total operating revenue | $ 7,174,050 | $ 3,158,520 | $ 153,145 |
Cash Rebate Services [Member] | |||
OPERATING REVENUE | |||
Total operating revenue | 10,562 | 6,214 | 718 |
Payment Solution Services Related Party [Member] | |||
OPERATING REVENUE | |||
Total operating revenue | $ 9,575 | $ 1,494 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Deficit) - USD ($) | Common Stock [Member] | Subscription Receviable [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Sep. 30, 2019 | $ 45,000 | $ (45,000) | $ 24 | $ (159,854) | $ (2,216) | $ (162,046) |
Beginning balance, shares at Sep. 30, 2019 | 40,000,000 | |||||
Net income (loss) | (205,154) | (205,154) | ||||
Conversion of shareholder loan of capital | 1,148,106 | |||||
Foreign currency translation adjustment | (1,829) | (1,829) | ||||
Ending balance, value at Sep. 30, 2020 | $ 45,000 | (45,000) | 24 | (365,008) | (2,370) | (367,354) |
Ending balance, shares at Sep. 30, 2020 | 40,000,000 | |||||
Net income (loss) | 1,447,650 | 1,447,650 | ||||
Foreign currency translation adjustment | (19,063) | (19,063) | ||||
Capital contribution by shareholders | 45,000 | 155,000 | 200,000 | |||
Ending balance, value at Sep. 30, 2021 | $ 45,000 | 155,024 | 1,082,642 | (21,433) | 1,261,233 | |
Ending balance, shares at Sep. 30, 2021 | 40,000,000 | |||||
Net income (loss) | 3,602,365 | 3,602,365 | ||||
Foreign currency translation adjustment | (585,619) | (585,619) | ||||
Issuance of common stock in the IPO (net of offering costs of $2,730,674) | $ 6,047 | 18,763,279 | 18,769,326 | |||
Issuance of common stock in the IPO (net of offering costs of $2,730,674),shares | 5,375,000 | |||||
Ending balance, value at Sep. 30, 2022 | $ 51,047 | $ 18,918,303 | $ 4,685,007 | $ (607,052) | $ 23,047,305 | |
Ending balance, shares at Sep. 30, 2022 | 45,375,000 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Deficit) (Parenthetical) | 12 Months Ended |
Sep. 30, 2022 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Stock offering costs | $ 2,730,674 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities | |||
Net income (loss) | $ 3,602,365 | $ 1,447,650 | $ (205,154) |
Adjustments to reconcile net income to cash provided by (used in) operating activities: | |||
Depreciation and amortization | 161,267 | 2,568 | 1,948 |
Amortization of right-of-use operating lease assets | 56,690 | 7,274 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (864,099) | (1,100,053) | (277,543) |
Prepaid expenses and other current assets | (4,754,970) | (39,190) | (1,387) |
Deferred revenue | (778,701) | 688,979 | 120,961 |
Taxes payable | 661,359 | 870,528 | 17,195 |
Operating lease liabilities | (56,690) | (7,274) | |
Accrued expenses and other current liabilities | 740,415 | 13,413 | 1,632 |
Net cash (used in) provided by used in operating activities | (1,232,364) | 1,883,895 | (342,348) |
Cash flows from investing activities | |||
Purchase of fixed assets | (6,669) | (5,203) | (8,198) |
Purchase of intangible assets | (1,129,260) | ||
Cash advances to a related party | (387,945) | ||
Collection of cash advances from a related party | 387,945 | ||
Net cash used in investing activities | (1,135,929) | (5,203) | (8,198) |
Cash flows from financing activities | |||
Capital contribution by shareholders | 200,000 | ||
Proceeds from issuance of common stock in the IPO, net of offering cost | 18,769,326 | ||
Proceeds from (repayment to) related party borrowings | (729,521) | (125,875) | 707,064 |
Net cash provided by financing activities | 18,039,805 | 74,125 | 707,064 |
Effect of exchange rate changes on cash | (187,894) | (28,792) | 5,102 |
Net increase in cash | 15,483,619 | 1,924,025 | 361,620 |
Cash, beginning of year | 2,295,277 | 371,252 | 9,632 |
Cash, end of year | 17,778,895 | 2,295,277 | 371,252 |
Supplemental disclosure of cash flow information | |||
Cash paid for income taxes | 934,910 | 15,747 | |
Cash paid for interest | |||
Supplemental disclosure of non-cash investing and financing activities | |||
Right-of-use assets obtained in exchange for operating lease liabilities | $ 52,934 | $ 317,170 |
ORGANIZATION AND BUSINESS DESCR
ORGANIZATION AND BUSINESS DESCRIPTION | 12 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BUSINESS DESCRIPTION | NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION Business Starbox Group Holdings Ltd. (“Starbox Group” or the “Company”), through its wholly-owned subsidiaries, is engaged in connecting retail merchants with individual online and offline shoppers (“retail shoppers”) to facilitate transactions through cash rebate offered by retail merchants, providing digital advertising services to retail merchants, and providing payment solution services to merchants. The Company’s current principal operations and geographic markets are substantially located in Malaysia. Organization Starbox Group was incorporated as an exempted company limited by shares under the laws of the Cayman Islands on September 13, 2021. Starbox Group owns 100 Starbox Group and Starbox Berhad are currently not engaged in any active business operations and are merely acting as holding companies. Starbox Berhad owns 100 Reorganization A reorganization of the Company’s legal structure (the “Reorganization”) was completed on November 17, 2021. The Reorganization involved the incorporation of Starbox Group, and the transfer of 100% of the equity interests in Starbox Berhad and its subsidiaries from its original shareholders to Starbox Group. Consequently, Starbox Group became the ultimate holding company of all other entities mentioned above. The Reorganization has been accounted for as a recapitalization among entities under common control since the same controlling shareholders controlled all these entities before and after the Reorganization. The consolidation of the Company and its subsidiaries has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. Results of operations for the periods presented comprise those of the previously separate entities combined from the beginning of the period to the end of the period, eliminating the effects of intra-entity transactions. Completion of the Initial Public offerings (“IPO”) On August 23, 2022, the Company’s ordinary shares commenced trading on the Nasdaq Capital Market under the symbol “STBX.” On August 25, 2022, the Company closed its IPO of 5,375,000 ordinary shares at a public offering price of $ 4.00 per ordinary share. The Company raised approximately $ 21.5 million in gross proceeds from its IPO and underwriters’ partial exercise of the over-allotment option, before deducting underwriting discounts and other related expenses . The Company received net proceeds of approximately $ 18.8 2.7 The consolidated financial statements of the Company as of September 30, 2022 include the following entities: SCHEDULE OF CONSOLIDATED FINANCIAL STATEMENTS OF ENTITIES Entity Date of Formation Place of Incorporation % of Ownership Major business activities Starbox Group September 13, 2021 Cayman Islands Parent Investment holding Starbox Berhad July 24, 2019 Malaysia 100% Investment holding StarboxGB July 24, 2019 Malaysia 100% Network marketing, facilitating online and offline transactions between retail merchants and retail shoppers through cash rebate programs offered by retail merchants StarboxSB July 23, 2019 Malaysia 100% Providing digital advertising services to retail merchant customers StarboxPB May 21, 2019 Malaysia 100% Providing secured payment solution services to retail merchant customers |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and principles of consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The accompanying consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries. All inter-company balances and transactions are eliminated upon consolidation. Uses of estimates 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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include the valuation of accounts receivable, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets, realization of deferred tax assets, provision necessary for contingent liabilities, and revenue recognition. Actual results could differ from those estimates. Risks and uncertainties The main operations of the Company are located in Malaysia. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by changes in political, economic, social, regulatory, and legal environments in Malaysia, as well as by the general state of the economy in Malaysia. Although the Company has not experienced losses from these situations and believes that it complies with existing laws and regulations, including its organization and structure disclosed in Note 1, this may not be indicative of future results. The Company’s business, financial condition, and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics, and other catastrophic incidents, which could significantly disrupt the Company’s operations. The COVID-19 pandemic has adversely affected the Company’s business operations. Specifically, prior to April 1, 2022, significant governmental measures implemented by the Malaysian government, including various stages of lockdowns, closures, quarantines, and travel bans, led to the store closure of some of the Company’s offline merchants. As a result, although business in Malaysia had gradually resumed since April 1, 2022, the Company’s cash rebate service business was negatively affected to a certain extent, because the number of offline sales transactions between retail shoppers and retail merchants facilitated by the Company did not grow as much as the Company expected, leading to a lower amount of cash rebate service revenue than the Company expected during the fiscal years ended September 30, 2022, 2021, and 2020. However, the Company’s digital advertising service revenue was not significantly affected by the COVID-19 pandemic, because more people have opted to use various online services since the beginning of the COVID-19 pandemic. As more advertisers used the Company’s digital advertising services through its websites and mobile apps and third-party social media channels to target their audiences, the Company’s revenue from digital advertising services increased significantly from fiscal year 2021 to fiscal year 2022. However, any resurgence of the COVID-19 pandemic could negatively affect the execution of customer contracts and the collection of customer payments. The extent of any future impact of the COVID-19 pandemic on the Company’s business is still highly uncertain and cannot be predicted as of the financial statement reporting date. Any potential impact to the Company’s operating results will depend, to a large extent, on future developments and new information that may emerge regarding the duration and severity of the COVID-19 pandemic and the actions taken by government authorities to contain the spread of the COVID-19 pandemic, almost all of which are beyond the Company’s control. Cash Cash includes currency on hand and deposits held by banks that can be added or withdrawn without limitation. The Company maintains all of its bank accounts in Malaysia. Cash deposit with financial institutions in Malaysia is subject to certain protection under the requirement of the deposit insurance system. The maximum insurance coverage limit is MYR 250,000 ($ 60,000 ) per bank account. As of September 30, 2022 and 2021, the Company had a cash balance of $ 17,778,895 and $ 2,295,277 , respectively, of which, $ 17,428,788 and $ 1,856,418 was not covered by such insurance, respectively. Accounts receivable, net Accounts receivable primarily include service fees generated from providing digital advertising services and payment solution services to retail merchant customers (see Note 3). Accounts receivable are presented net of allowance for doubtful accounts. The Company determines the adequacy of allowance for doubtful accounts based on individual account analysis, historical collection trend, and the best estimate of specific losses on individual exposures. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. Actual amounts received may differ from management’s estimate of credit worthiness and the economic environment. Delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. As of September 30, 2022 and 2021, there was no allowance for doubtful accounts recorded as the Company considers all of the outstanding accounts receivable fully collectible. Deferred IPO costs The Company complies with the requirement of the Accounting Standards Codification (“ASC”) 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A—”Expenses of Offering.” Deferred offering costs consist of underwriting, legal, consulting, and other expenses incurred through the balance sheet date that are directly related to the intended IPO. Deferred offering costs will be charged to shareholders’ equity upon the completion of the IPO. Should the IPO prove to be unsuccessful, these deferred costs, as well as additional expenses to be incurred, will be charged to operations. Payment for deferred IPO costs amounted to $ 736,010 , nil , and nil for the fiscal years ended September 30, 2022, 2021, and 2020, respectively. Property and equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment are provided using the straight-line method over their expected useful lives, as follows: SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIVES Useful life Office equipment and furniture 3 5 Expenditures for maintenance and repair, which do not materially extend the useful lives of the assets, are charged to expenses as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of operations and comprehensive income (loss) in other income (expenses). Intangible assets The Company’s intangible assets primarily consist of purchased computer software and applications used in conducting the Company’s cash rebate and digital advertising business. Intangible assets also include content assets, which are licensed movies and television series acquired from third-party content providers in order to offer members unlimited viewing of such content to drive traffic on the Company’s SEEBATS website and mobile app. Intangible assets are carried at cost less accumulated amortization and any recorded impairment (see Note 5). Intangible assets are amortized using the straight-line method with the following estimated useful lives: SCHEDULE OF INTANGIBLE ASSETS Useful life Computer software and applications 5 10 Content assets-licensed movies and television series Over the license period or estimated period of use Impairment of long-lived assets Long-lived assets with finite lives, primarily property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated future undiscounted cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, the asset is deemed to be impaired and written down to its fair value. There were no Fair value of financial instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: ● Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. ● Level 3 — inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s financial instruments, including cash, accounts receivable, prepaid expenses and other current assets, deferred revenue, taxes payable, due to a related party, and accrued expenses and other current liabilities approximate the fair value of the respective assets and liabilities as of September 30, 2022 and 2021 based upon the short-term nature of the assets and liabilities. Foreign currency translation The functional currency for Starbox Group is the U.S Dollar (“US$”). Starbox Berhad, StarboxGB, StarboxSB, and StarboxPB use Malaysian Ringgit (“MYR”) as their functional currency. The Company’s consolidated financial statements have been translated into and reported in US$. Assets and liabilities accounts are translated using the exchange rate at each reporting period end date. Equity accounts are translated at historical rates. Income and expense accounts are translated at the average rate of exchange during the reporting period. The resulting translation adjustments are reported under other comprehensive income. Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the results of operations. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: SCHEDULE OF CURRENCY EXCHANGE RATE September 30, 2022 September 30, 2021 September 30, 2020 Year-end spot rate US$ 1 4.6359 US$ 1 4.1869 US$ 1 4.1576 Average rate US$ 1 4.3041 US$ 1 4.1243 US$ 1 4.2163 Comprehensive income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). The foreign currency translation gain or loss resulting from the translation of the financial statements expressed in MYR to US$ is reported in other comprehensive income (loss) in the consolidated statements of operations and comprehensive income (loss). Revenue recognition To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract(s) with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not The Company currently generates its revenue from the following main sources: Revenue from digital advertising services The Company’s advertising service revenue is derived principally from advertising contracts with retail merchant customers (the “advertisers”), which allow advertisers to place advertisements on the Company’s websites and mobile apps and third-party social media channels over a particular period of time. The advertising contracts specify the related fees and payment terms and provide evidence of the arrangements. The Company’s digital adverting services are to (i) provide advertisement design and consultation services to help advertisers precisely shape their digital advertising strategies and optimize the design, content, and layout of their advertisements and (ii) the displaying of advertisers’ advertisements of products and services on the Company’s websites and mobile apps and third-party social media channels over a particular period of time and in a variety of forms, such as logos, banners, push notification, and posts by accounts of influencers and bloggers, to help promote advertisers’ products and services and enhance their brand awareness. Advertisers may elect to engage with the Company for only advertisement display services or both advertisement design and consultation services and advertisement display services. In connection with these digital advertising services, the Company charges retail merchant customers nonrefundable advertising service fees. 2,400 38,000 5,000 240,000 The Company identifies advertisement design and consultation services and advertisement display services as two separate performance obligations, as each are services that are capable of being distinct and distinct in the context of advertising contracts. Each of the service commitments in advertisement design and consultation services, including advice on advertising strategies, customization and optimization of the desired content, length, color tone, layout, format, and presentation of the ads, are not distinct in the context of advertising contracts, because they are inputs to deliver the combined output of advertisements to be displayed as specified by the customer. Therefore, advertisement design and consultation services are identified as a single performance obligation. The Company allocates revenue to each performance obligation based on its stand-alone selling price, which is specified in the contracts. The Company’s advertisement design and consultation services are normally rendered within a short period of time, ranging from a few days to a month. As all the benefits enjoyed by the customers can be substantially realized at the time when the design and consultation services are completed, the Company recognizes revenue at the point when designated services are rendered and accepted by the customers. The Company does not provide rights of return, credits or discounts, price protection, or other similar privileges to customers for such services and accordingly no variable consideration included in such services. The majority of the Company’s advertising contracts are for the provision of advertisement display on the Company’s websites and mobile apps and social media channels for a fixed period of time (ranging from a few weeks to a few months) without a guaranteed minimum impression level. In instances where certain discounts are provided to customers for advertisement displays, such discounts are reported as deduction of revenue. Revenue from advertisement services is recognized over the period the advertisement is displayed. Advances from customers are deferred first and then recognized as revenue until the completion of the contract. There are no future obligations after the completion of the contract and no rights of refund related to the impression levels. Revenue from cash rebate services The Company also utilizes its websites and mobile apps to connect retail merchants and retail shoppers and facilitate retail shoppers to purchase consumer products or services from retail merchants online or offline under the cash rebate programs offered by retail merchants. The cash rebate offered by retail merchants range from 0.25 % to 25 % based on the sales price of the products or services, among which approximately 66 86 % are awarded to retail shoppers, and the Company is entitled to receive and retain the remaining approximately 34 14 % as cash rebate revenue for facilitating online and offline sales transactions. There is a single performance obligation in the contract, as the performance obligation is to facilitate the sales transactions between the retail shoppers and the retail merchants. The Company merely acts as an agent in this type of transactions. The Company does not have control of the goods or services under the sales transactions between the retail merchants and retail shoppers, has no discretion in establishing prices, and does not have the ability to direct the use of the goods or services to obtain substantially all the benefits. The Company recognizes cash rebate revenue at the point when retail merchants and retail shoppers are connected and the sales transactions are facilitated and completed. Revenue is reported net of service taxes. For the fiscal years ended September 30, 2022, 2021, and 2020, the Company only reported cash rebate revenue of $ 10,562 6,214 718 Revenue from payment solution services In May 2021, the Company started to provide payment solution services to retail merchant customers by referring them to VE Services Sdn Bhd , . 1.50 2.50 0.15 0.525 9,575 1,494 Disaggregation of revenue The Company disaggregates its revenue from contracts by service types, as the Company believes it best depicts how the nature, amount, timing, and uncertainty of the revenue and cash flows are affected by economic factors. The summary of the Company’s disaggregation of revenue by service types for the fiscal years ended September 30, 2022, 2021, and 2020 is as follows: SCHEDULE OF DISAGGREGATION OF REVENUE 2022 2021 2020 For the fiscal years ended 2022 2021 2020 Revenue from advertising services: Advertisement design and consultation services $ 1,575,800 $ 384,061 $ - Advertisement display services 5,845,310 2,921,937 153,145 Gross revenue from advertising services 7,421,110 3,305,998 153,145 Less: discount to customers for advertisement displays (247,060 ) (147,478 ) - Sub-total of net revenue from advertising services 7,174,050 3,158,520 153,145 Revenue from cash rebate services 10,562 6,214 718 Revenue from payment solution services-related party 9,575 1,494 - Total operating revenue $ 7,194,187 $ 3,166,228 $ 153,863 Contract Assets and Liabilities The Company did no A contract liability is the Company’s obligation to transfer goods or services to a customer for which it has received consideration from the customers. Receipts in advance and deferred revenue relate to unsatisfied performance obligations at the end of the period primarily consist of digital advertising service fees received from customers. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following reporting period. Contract liabilities presented as deferred revenue in the consolidated balance sheets as of September 30, 2022 and 2021 amounted to nil 800,492 800,492 122,668 nil The Company does not disclose information about remaining performance obligations pertaining to service contracts with an original expected term of one year or less. Operating leases On October 1, 2020, the Company adopted Accounting Standards Updates (“ASU”) 2016-02, Leases (Topic 842), as amended (“ASC 842”), which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and finance lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing, and uncertainty of cash flows arising from leasing arrangements. The Company elected to apply practical expedients permitted under the transition method that allow the Company to use the beginning of the period of adoption as the date of initial application, to not recognize lease assets and lease liabilities for leases with a term of 12 months or less, to not separate non-lease components from lease components, and to not reassess lease classification, treatment of initial direct costs, or whether an existing or expired contract contains a lease. The Company used a modified retrospective method and did not adjust the prior comparative periods. Under the new lease standard, the Company determines if an arrangement is or contains a lease at inception. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of remaining lease payments over the lease terms. The Company considers only payments that are fixed and determinable at the time of lease commencement. At the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment annually. There was no impairment for right-of-use lease assets as of September 30, 2022 and 2021. Operating costs The Company’s operating costs primarily consist of (i) marketing and promotional expenses to develop members, merchants, and advertisers, (ii) website and facility maintenance expenses to upgrade, optimize, and maintain its websites and mobile apps, (iii) employee salary and benefit expenses, (iv) professional and business consulting expenses, and (v) other general office expenses for administrating the Company’s business. Operating costs are expensed as incurred. Judgment is required to determine whether to separately present cost of revenue, selling expenses, and general and administrative expenses. The Company considers materiality, the manner that operating costs can be separately identified, and what is most useful to financial statement users, and elects to present all costs and operating expenses as a single line item “cost, selling, general, and administrative expenses” as reflected in the consolidated statements of operations. Management believes that such presentation is meaningful when considering the nature of the Company’s operations and the manner in which the Company manages its business. The Company’s operating costs for the fiscal years ended September 30, 2022, 2021, and 2020, consisted of the following: SCHEDULE OF OPERATING COSTS 2022 2021 2020 For the fiscal years ended September 30, 2022 2021 2020 Salary and employee benefit expenses $ 429,924 $ 191,981 $ 41,988 Professional and consulting service fees 767,229 365,774 5,172 Marketing and promotional expenses 188,338 167,803 159,852 License costs 55,000 50,000 60,000 Website and facility maintenance expenses 292,579 185,757 43,936 Depreciation and amortization 106,267 2,568 1,948 Utility and office expenses 144,735 19,185 3,213 Business travel and entertainment expenses 67,836 6,003 25 Others 191,842 37,268 27,892 Total operating costs $ 2,243,750 $ 1,026,339 $ 344,026 Research and development The Company’s research and development activities primarily relate to the optimization and implementation of its websites and mobile apps (such as leveraging browser caching, improving server response time, removing render-blocking JavaScript, reducing redirects, and optimizing images), to improve their performance and drive more traffic. Research and development costs are expensed as incurred. Research and development expenses included in cost, selling, general, and administrative expenses amounted to $ 292,579 147,296 38,925 Income taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. An uncertain tax position is recognized only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes were incurred during the fiscal years ended September 30, 2022, 2021, and 2020. The Company does not believe there was any uncertain tax provision as of September 30, 2022 and 2021. The Company’s operating subsidiaries in Malaysia are subject to the income tax laws of Malaysia. No significant income was generated outside Malaysia for the fiscal years ended September 30, 2022, 2021, and 2020. As of September 30, 2022, all of the Company’s tax returns of its Malaysian subsidiaries remain open for statutory examination by relevant tax authorities. Service taxes Service tax is a consumption tax levied by Malaysian tax authorities and is charged on any taxable service income (including digital services) provided in Malaysia by a registered company in carrying on their business. The rate of service tax is 6% ad valorem for all taxable services and digital services except for the provision of charge or credit card services. A taxable entity is a company that is registered or liable to be registered for service taxes. A company is liable to be registered if the total value of its taxable services for a 12-month period exceeds or is expected to exceed the prescribed registration threshold of MYR 500,000 as an advertising service provider. Service taxes amounted to $ 262,816 , $ 190,972 , and $ 2,237 for the fiscal years ended September 30, 2022, 2021, and 2020, respectively and were recorded as a deduction against the Company’s gross revenue. Earnings (loss) per share 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 is measured as net income (loss) divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. As of September 30, 2022 and 2021, and for the fiscal years ended September 30, 2022, 2021, and 2020, there were no dilutive shares. Statement of cash flows In accordance with ASC 230, “Statement of Cash Flows,” cash flows from the Company’s operations are formulated based upon the local currencies using the average exchange rate in the period. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. Related parties and transactions The Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, “Related Party Disclosures” and other relevant ASC standards. Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence. Transactions between related parties commonly occurring in the normal course of business are considered to be related party transactions. Transactions between related parties are also considered to be related party transactions even though they may not be given accounting recognition. While ASC does not provide accounting or measurement guidance for such transactions, it nonetheless requires their disclosure. Defined contribution plan The full-time employees of the Company’s subsidiaries in Malaysia are entitled to the government mandated defined contribution plan, such as social security, employee provident fund, employment insurance, and human resource development fund, as required by labor laws in Malaysia. The Company is required to accrue and pay for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant government regulations, and make cash contributions to the government mandated defined contribution plan. Employee defined contribution plan expenses amounted to $ 45,121 20,871 4,246 for the years ended September 30, 2022, 2021, and 2020, respectively. Recent accounting pronouncements The Company considers the applicability and impact of all ASUs. Management periodically reviews new accounting standards that are issued. Recently adopted accounting pronouncements In December 2020, the FASB issued ASU 2020-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2020-12”). ASU 2020-12 is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. ASU 2020-12 is effective for fiscal years beginning after December 15, 2021 and interim periods within those fiscal years, with early adoption permitted. The adoption of the new guidance did not have a significant impact on its consolidated financial statements. Recent accounting pronouncements not yet adopted In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) (“ASU 2016-13”), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASU 2016-13 was subsequently amended by ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, and ASU 2019-05, Targeted Transition Relief. In November 2019, the FASB issued ASU 2019-10, which extends the effective date for adoption of ASU 2016-13. In November 2019, the FASB issued ASU 2019-11 to clarify its new credit impairment guidance in ASU 326. Accordingly, for public entities that are not smaller reporting entities, ASU 2016-13 and its amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. For all other entities, this guidance and its amendments will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. As an emerging growth company, the Company plans to adopt this guidance effective October 1 |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Sep. 30, 2022 | |
Credit Loss [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 3 — ACCOUNTS RECEIVABLE, NET Accounts receivable, net, consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE September 30, 2022 September 30, Accounts receivable associated with digital advertising services $ 2,032,717 $ 1,361,581 Accounts receivable associated with payment solution services – related party - 836 Accounts receivable - 836 Less: allowance for doubtful account - - Accounts receivable, net $ 2,032,717 $ 1,362,417 Accounts receivable balance as of September 30, 2021 has been fully collected. Approximately 65 % of the September 30, 2022 accounts receivable balance has been collected as of the date of this report. The following table summarizes the Company’s outstanding accounts receivable and subsequent collection by aging bucket: SCHEDULE OF ACCOUNTS RECEIVABLE AND SUBSEQUENT COLLECTION Accounts receivable by aging bucket Balance as of September 30, 2022 Subsequent collection % of subsequent collection Less than 6 months $ 2,032,717 $ 1,311,268 65 % From 7 to 9 months - - - % From 10 to 12 months - - - % Over 1 year - - - % Total gross accounts receivable - - - % Allowance for doubtful accounts - - - Accounts receivable, net $ 2,032,717 $ 1,311,268 65 % Accounts receivable by aging bucket Balance as of September 30, 2021 Subsequent collection % of subsequent collection Less than 6 months $ 1,362,342 $ 1,362,342 100 % From 7 to 9 months 12 12 100 % From 10 to 12 months - - - % Over 1 year 63 63 100 % Total gross accounts receivable 1,362,417 1,362,417 100 % Allowance for doubtful accounts - - - Accounts receivable, net $ 1,362,417 $ 1,362,417 100 % |
PREPAYMENTS
PREPAYMENTS | 12 Months Ended |
Sep. 30, 2022 | |
Prepayments | |
PREPAYMENTS | NOTE 4— PREPAYMENTS Prepayments consisted of the following: SCHEDULE OF PREPAYMENTS September 30, 2022 September 30, 2021 Prepayments: Speedprop Global Sdn. Bhd. (1) $ 1,206,757 $ - ARX Media Sdn. Bhd. (2) 2,469,425 - Other third-party vendors (3) 593,429 - Less: allowance for doubtful account - - Total prepayments $ 4,269,611 $ - The Company currently operates its business through its GETBATS, SEEBATS, and PAYBATS websites and mobile applications. The satisfactory performance, reliability, and availability of the Company’s information technology systems are critical to its ability to drive more Internet traffic to its advertising websites and mobile apps and provide effective digital advertising services for brands and retailers, especially when the Company starts to expand its business from Malaysia to neighboring countries such as Indonesia, Philippine and Thailand. (1) On June 19, 2022, the Company entered into an agreement with third-party vendor Speedprop Global Sdn. Bhd. (“Speedprop”), pursuant to which, Speedprop will help the Company develop Augmented Reality (“AR”) travel guide app with key commercial objective to provide personalized instant rebates, voucher distribution, and ad placements for merchants. Total contract price amounted to MYR 10.8 2.3 1,206,757 5,594,400 (2) In order to upgrade the Company’s existing software and operating systems to increase the data processing capability, to diversify the Company’s business operation model, and to support its future business expansion, on August 1, 2022, the Company signed a contract with a third-party technology solution company, ARX Media Sdn. Bhd. (“ARX”), to conduct software application design and development for the Company’s Virtual Reality Rebate Mall project (the “Starbox VR Rebate Mall project”). Pursuant to the contract, ARX will help the Company conduct market research, feasibility study, VR Mall Data Management system software conceptualization, visualization, system coding, testing, and debugging, to initialize and rollout the application as a progressive web portal, which can be further developed into a mobile app to allow integration to various platforms. Total contract price for this project amounted to MYR 13.5 2.9 2,469,425 11.4 (3) Prepayments to other vendors primarily include prepayment to third-party vendors and service providers for domain renewal services, promotion and advertisement system integration services, and rental deposits. As of September 30, 2022 and as of the date of this report, there was no allowance for doubtful accounts recorded as the Company considers all of the prepayments fully realizable. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 5 — PROPERTY AND EQUIPMENT, NET Property and equipment, net, consisted of the following: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT September 30, September 30, Office equipment and furniture $ 21,407 $ 16,847 Less: accumulated depreciation (8,027 ) (4,671 ) Property and equipment, net $ 13,380 $ 12,176 Depreciation expenses were $ 4,103 2,568 1,948 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 6 — INTANGIBLE ASSETS, NET Intangible assets, net, consisted of the following: SCHEDULE OF INTANGIBLE ASSETS NET September 30, 2022 September 30, 2021 Computer software and applications (1) $ 939,753 $ - Content assets- licensed movies and television series (2) 108,678 - Less: accumulated amortization (144,663 ) - Intangible asset, net $ 903,768 $ - (1) In order to support the Company’s expansion of its digital advertising service and cash rebate service businesses, in December 2021, the Company purchased packaged computer software and applications from a third-party vendor at the aggregate cost of MYR 2.12 504,222 501,412 2.32 Amortization of intangible assets – computer and applications amounted to $ 102,164 nil nil (2) The Company’s Malaysian subsidiary, StarboxSB, operates the SEEBATS website and mobile app, on which viewers may watch movies and television series through over-the-top streaming. These movies and television series are licensed from third-party content providers. The Company acquires and licenses these movie and television series content in order to offer members unlimited viewing of such content to drive traffic on the SEEBATS website and mobile app. The content licenses are for a fixed fee and specific windows of availability. Based on factors including historical and estimated viewing patterns, the Company amortizes the content assets in “operating costs-license costs” on the unaudited condensed consolidated statements of operations on a straight-line basis over its license period or estimated period of use, beginning with the month of first availability. On July 29, 2019 and August 5, 2019, the Company entered into a Distribution and Ad Sales Deal Agreement with third-party content providers Dooya Media Group (“DMG”) and Super Runway Inc. (“SRI”), respectively, in order to license movies and television series from them and put such licensed movies and television series on the Company’s SEEBATS website and mobile app to drive traffic. Pursuant to these agreements, each with effective terms from August 2019 to July 31, 2021, the Company was required to pay a flat fee of $ 10,000 2,500 2,500 30,000 On November 1, 2021, the Company entered into a Service and Licensing Agreement with a third-party content provider, Shenzhen Yunshidian Information Technology Ltd. (“Shenzhen Yunshidian”), to license movies and television series in various genres, such as action, comedy, fantasy, historical, and romance. The agreement has a term from November 1, 2021 to October 31, 2023 and may be terminated by either party in the event of a material breach by the other party of the agreement. The Company agreed to pay a content and service fee of $ 120,000 1,700 660,000 The Company records cost of content that the Company acquired under a license agreement as content assets. Content assets are amortized using the straight-line method over the licensing period from November 1, 2021 to October 31, 2023. Amortization of content assets amounted to approximately $ 55,000 nil Total amortization of above-mentioned intangible assets amounted to $ 157,164 nil nil |
TAXES
TAXES | 12 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 7 — TAXES a. Corporate Income Taxes (“CIT”) Cayman Islands Under the current tax laws of the Cayman Islands, the Company is not subject to tax on its income or capital gains. In addition, no Cayman Islands withholding tax will be imposed upon the payment of dividends by the Company to its shareholders. Malaysia Starbox Berhad, StarboxGB, StarboxSB, and StarboxPB are governed by the income tax laws of Malaysia. The income tax provision in respect of operations in Malaysia is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations, and practices. Under the Income Tax Act of Malaysia, enterprises incorporated in Malaysia are usually subject to a unified 24 2,500,000 50 17 600,000 150,000 24 10,183 (13,311) 0.00 (0.00) 24 2,500,000 The components of the income tax provision were as follows: SCHEDULE OF INCOME TAX PROVISION For the fiscal years ended September 30, 2022 2021 2020 Current income tax provision Cayman Island $ - $ - $ - Malaysia 1,407,449 724,508 14,991 Subtotal 724,508 14,991 Deferred income tax provision Cayman Island - - - Malaysia - (32,103 ) - Total income tax provision $ 1,407,449 $ 692,405 $ 14,991 Reconciliation of the differences between the income tax provision computed based on Malaysia unified statutory income tax rate and the Company’s actual income tax provision for the fiscal years ended September 30, 2022, 2021, and 2020, respectively, were as follows: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION For the fiscal years ended September 30, 2022 2021 2020 Income tax provision computed based on Malaysia unified income tax statutory rate $ 1,410,066 $ 566,514 $ (45,639 ) Effect of tax exemption due to reduced income tax rate for small and medium sized companies - (10,183 ) 13,311 Permanent difference 401,286 37,329 9,353 Change in valuation allowance (403,903 ) 98,745 37,966 Actual income tax provision $ 1,407,449 $ 692,405 $ 14,991 Deferred tax assets The Company’s deferred tax assets were comprised of the following: SCHEDULE OF DEFERRED TAX ASSETS As of 2022 2021 Deferred tax assets derived from net operating loss carry forwards $ 35,174 $ 137,932 Less: valuation allowance (35,174 ) (137,932 ) Deferred tax assets $ - $ - Movement of valuation allowance: SCHEDULE OF VALUATION ALLOWANCE As of 2022 2021 Balance at beginning of the year $ 137,932 $ 40,949 Current period change (102,758 ) 96,983 Balance at end of the year $ 35,174 $ 137,932 The Company periodically evaluates the likelihood of the realization of deferred tax assets and reduces the carrying amount of the deferred tax assets by a valuation allowance to the extent it believes a portion will not be realized. Management considers new evidence, both positive and negative, that could affect the Company’s future realization of deferred tax assets including its recent cumulative earnings experience, expectation of future income, the carry forward periods available for tax reporting purposes and other relevant factors. The Company has four subsidiaries in Malaysia, namely Starbox Berhad, StarboxGB, StarboxSB, and StarboxPB. Other than StarboxSB, which has generated taxable income through providing advertising services to customers, Starbox Berhad, StarboxGB, and StarboxPB have reported recurring operating losses since their inception. Management concluded that the chances for these three entities that suffered recurring losses in prior periods to become profitable in the foreseeable near future and to utilize their net operating loss carry forwards were remote. Accordingly, the Company provided valuation allowance of $ 35,174 137,932 40,949 (102,758) 96,983 38,502 b. Taxes payable Taxes payable consisted of the following SCHEDULE OF TAXES PAYABLE September 30, 2022 September 30, 2021 Income tax payable $ 1,188,274 $ 683,862 Service tax payable 215,854 190,972 Total $ 1,404,128 $ 874,834 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 8 — RELATED PARTY TRANSACTIONS a. Name of related parties SCHEDULE OF RELATED PARTIES Name of Related Party Relationship to the Company Choo Keam Hui The Company’s former director and one of the directors of Starbox Berhad Zenapp Sdn Bhd (“Zenapp”) An entity controlled by Choo Keam Hui prior to September 20, 2021 Bizguide Corporate Service Sdn Bhd An entity controlled by Khoo Kien Hoe, the CFO of Starbox Group KH Advisory Sdn Bhd An entity controlled by Khoo Kien Hoe, the CFO of Starbox Group VE Services An entity controlled by Choo Teck Hong, one of the Company’s beneficial shareholders, a director of Starbox Berhad, and a sibling of Choo Keam Hui b. Due from a related party Due from a related party consisted of the following: SCHEDULE OF DUE FROM A RELATED PARTY Name September 30, September 30, VE Services $ 1,473 $ - As of September 30, 2022, the balance of due from VE Services was commission receivable for referring payment solution services to VE Services. c. Due to related parties Due to related parties consisted of the following: SCHEDULE OF DUE TO RELATED PARTIES Name September 30, September 30, Choo Keam Hui $ - $ 756,478 Bizguide Corporate Service Sdn Bhd 1,763 - KH Advisory Sdn Bhd $ 5,598 $ - As of September 30, 2022, the balance of due to related parties was the fee to be paid for secretarial and tax consulting services received. As of September 30, 2021, the balance due to a related party was from loan advances from Choo Keam Hui, and was used as working capital during the Company’s normal course of business. Such advance was non-interest bearing and due on demand. As of September 30, 2022, all of the balance due as of September 30, 2021 had been repaid. d. Office rental expenses paid by a related party Prior to August 2021, the Company had not directly entered into any office lease agreements. Zenapp leased an office from the landlord and provided a small part of the office space to the Company to use for free. Based on the square footage allocation of the small office space used by the Company, the estimated office lease expense paid by Zenapp on behalf of the Company amounted to approximately $ 4,200 3,850 e . Sub-tenancy agreements with a related party On August 20, 2021, StarboxGB, StarboxSB, and StarboxPB each entered into a sub-tenancy agreement with Zenapp to lease an office in Kuala Lumpur, Malaysia. The sub-tenancy agreements each have a lease term from September 1, 2021 to August 31, 2023 10,000 2,424 f . Revenue from a related party In May 2021, the Company started to provide payment solution services to merchants by referring them to VE Services. During the fiscal year 2022 and 2021, the Company referred 19 and 11 merchants to VE Services for payment processing and earned commission fees of $ 9,575 1,494 g. Advance to a related party On September 23, 2020, StarboxGB signed a framework agreement with Zenapp, pursuant to which StarboxGB agreed to provide interest free cash advance to Zenapp up to a maximum of MYR 10 2.4 1.6 0.4 The Company does not have the intention to make additional cash advance to related parties going forward. |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 12 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 9 — SHAREHOLDERS’ EQUITY Ordinary Shares The Company was incorporated under the laws of the Cayman Islands on September 13, 2021. The original authorized share capital of the Company was $ 50,000 500,000,000 450,000,000 0.0001 50,000,000 0.0001 50,000,000 450,000,000 0.0001 On June 8, 2022, the Company’s shareholders approved (i) an increase in the Company’s authorized share capital from $ 50,000 999,000 888,000,000 883,000,000 0.001125 5,000,000 0.001125 a reverse split of the Company’s outstanding ordinary shares at a ratio of 1-for-11.25 shares, and (iii) a reverse split of the Company’s authorized and unissued preferred shares at a ratio of 1-for-11.25 shares. As a result of such corporate actions, (i) the number of the Company’s authorized preferred shares has been reduced from the original 50,000,000 5,000,000 0.001125 none 450,000,000 883,000,000 450,000,000 40,000,000 0.001125 Initial Public Offering On August 23, 2022, the Company’s ordinary shares commenced trading on the Nasdaq Capital Market under the symbol “STBX.” On August 25, 2022, the Company closed its IPO of 5,375,000 4.00 21.5 . The Company received net proceeds of approximately $ 18.8 2.7 As of September 30, 2022 and 2021, the Company had total of 45,375,000 40,000,000 . Underwriter Representative Warrants In connection with the Company’s IPO, the Company also agreed to issue warrants to the underwriter, to purchase 350,000 7 any shares issued upon exercise of the underwriters’ over-allotment option ) (the “Representative Warrants”). These warrants have warrant term of five years 5.60 140 4.00 . Management determined that these warrants meet the requirements for equity classification under ASC 815-40 because they are indexed to its own stock. As of September 30, 2022 and as of the date of this report, these underwriter warrants were not issued and exercised. |
CONCENTRATIONS AND CREDIT RISK
CONCENTRATIONS AND CREDIT RISK | 12 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS AND CREDIT RISK | NOTE 10 — CONCENTRATIONS AND CREDIT RISK As of September 30, 2022 and 2021, the Company’s substantial assets were located in Malaysia and the Company’s substantial revenue was derived from its subsidiaries located in Malaysia. For the fiscal year ended September 30, 2022, no customer accounted for more than 10% of the Company’s total revenue. For the fiscal year ended September 30, 2021, three customers accounted for 21.7% 10.8% 10.8% 91.6% As of September 30, 2021, two customers accounted for 52.6% 26.3% These significant customers were advertisers who used the Company’s digital adverting services during the fiscal years ended September 30, 2022, 2021, and 2020, respectively. For the fiscal year ended September |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | NOTE 11 — CONTINGENCIES From time to time, the Company is a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. For the fiscal years ended September 30, 2022, 2021, and 2020, the Company did not have any material legal claims or litigation that, individually or in aggregate, could have a material adverse impact on the Company’s consolidated financial position, results of operations, and cash flows. |
LEASES
LEASES | 12 Months Ended |
Sep. 30, 2022 | |
Leases | |
LEASES | NOTE 12 — LEASES Prior to August 2021, the Company had not directly entered into any office lease agreements. The lease expenses were paid by Zenapp on behalf of the Company, with an estimated amount of $ 4,200 for the fiscal year ended September 30, 2020, and approximately $ 3,850 for the period from October 2020 to August 2021. On August 20, 2021, the Company’s main operating subsidiaries in Malaysia started to lease office spaces from Zenapp, with an aggregate area of approximately 4,800 square feet, pursuant to three sub-tenancy agreements, each with a lease term from September 1, 2021 to August 31, 2023 and monthly rent of MYR 10,000 (approximately $ 2,424 ). In the end of April 2022, the Company terminated the sub-tenancy agreements with Zenapp, and entered into lease agreements directly with Berjaya Steel Works Sdn Bhd and Woon Chun Yin for a term of one year from May 1, 2022 to April 30, 2023 with the monthly rent of MYR 6,288 , MYR 6,288 , and MYR 6,800 , respectively (approximately $ 1,460 , $ 1,460 , and $ 1,580 , respectively). There was no penalty for the early termination of the sub-tenancy agreements. The sub-tenancy agreements with Woon Chun Yin may be renewed for successive two-year terms. Effective October 1, 2020, the Company adopted the new lease accounting standard ASC 842 using the optional transition method, which allowed the Company to continue applying the guidance under the lease standard in effect at the time in the comparative periods presented. In addition, the Company elected the package of practical expedients, which allowed it to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company has also elected the practical expedient allowing it to not separate the lease and non-lease components for all classes of underlying assets. Adoption of this standard resulted in the recording of operating lease right-of-use assets and corresponding operating lease liabilities of approximately $ 0.3 Supplemental balance sheet information related to the Company’s operating leases was as follows: SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO OPERATING LEASE September 30, September 30, Operating lease right-of-use assets $ 49,145 $ 312,429 Right-of-use assets - accumulated amortization (6,571 ) (7,165 ) Right-of-use assets, net $ 42,574 $ 305,264 Operating lease liabilities – current $ 15,833 $ 72,362 Operating lease liabilities – non-current 26,741 232,902 Total operating lease liabilities $ 42,574 $ 305,264 The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of September 30, 2022 and 2021: SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES September 30, September 30, Remaining lease term and discount rate: Weighted average remaining lease term (years) 2.50 3.92 Weighted average discount rate * 5 % 5.0 % * The Company’s lease agreements do not provide a readily determinable implicit rate nor is it available to the Company from its lessors. Instead, the Company estimates its incremental borrowing rate based on the benchmark lending rate for three-year loans as published by Malaysia’s central bank in order to discount lease payments to present value. During the fiscal years ended September 30, 2022, 2021, and 2020, the Company incurred total ASC 842 operating lease expenses of $ 56,690 7,274 , and $ nil , respectively. As of September 30, 2022, the maturities of operating lease liabilities were as follows: SCHEDULE OF THE MATURITIES OF OPERATING LEASE LIABILITIES 12 months ending September 30, Lease 2023 $ 17,601 2024 17,601 2025 10,268 Total future minimum lease payments 45,470 Less: imputed interest 2,896 Total $ 42,574 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 13 — SEGMENT REPORTING An operating segment is a component of the Company that engages in business activities from which it may earn revenue and incur expenses, and is identified on the basis of the internal financial reports that are provided to and regularly reviewed by the Company’s chief operating decision maker (the “CODM”) in order to allocate resources and assess the performance of the segment. In accordance with ASC 280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the CODM or decision-making group, in deciding how to allocate resources and in assessing performance. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s CODM for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the CODM, reviews operating results by the revenue of different services. Based on management’s assessment, the Company has determined that it has three operating segments as defined by ASC 280, including digital advertising services, cash rebate services, and payment solution services. Revenue by service categories The following tables present summary information by segment for the fiscal years ended September 30, 2022, 2021, and 2020, respectively: SCHEDULE OF SUMMARY INFORMATION BY SEGMENT For the Fiscal Year Ended September 30, 2022 Cash rebate services Digital advertising Payment Total Revenue $ 10,562 $ 7,174,050 $ 9,575 $ 7,194,187 Operating costs 654,687 1,714,759 130,480 2,243,750 Income (loss) from operations (671,052 ) 5,742,132 (120,642 ) 4,950,437 Income tax expense 609,983 797,462 4 1,407,449 Net income (loss) (1,280,751 ) 5,003,684 (120,568 ) 3,602,365 Capital expenditure $ 1,527 $ 398,421 $ 735,981 $ 1,135,929 Total assets $ 11,862,705 $ 12,873,793 $ 305,919 $ 25,042,418 For the Fiscal Year Ended September 30, 2021 Cash rebate services Digital advertising Payment Total Revenue $ 6,214 $ 3,158,520 $ 1,494 $ 3,166,228 Operating costs 387,537 581,813 56,989 1,026,339 Income (loss) from operations (381,323 ) 2,576,707 (55,495 ) 2,139,889 Income tax expense - 692,405 - 692,405 Net income (loss) (381,157 ) 1,884,302 (55,495 ) 1,447,650 Capital expenditure $ - $ 5,203 $ - $ 5,203 Total assets $ 162,355 $ 3,716,568 $ 136,212 $ 4,015,135 For the Fiscal Year Ended September 30, 2020 Cash rebate services Digital advertising Payment Total Revenue $ 718 $ 153,145 $ - $ 153,863 Operating costs 237,579 106,447 - 344,026 Income (loss) from operations (236,861 ) 46,698 - (190,163 ) Income tax expense - 14,991 - 14,991 Net income (loss) (236,861 ) 31,707 - (205,154 ) Capital expenditure $ - $ 8,198 $ - $ 8,198 Total assets $ 367,883 $ 296,018 $ - $ 663,901 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14 — SUBSEQUENT EVENTS Private Placement On October 26, 2022, the Company entered into certain subscription agreements (the “Subscription Agreements”) with four investors (the “Subscribers”). Pursuant to the Subscription Agreements and in reliance on Rule 902 of Regulation S (“Regulation S”) promulgated under the Securities Act of 1933, as amended, the Company agreed to sell and the Subscribers agreed to purchase an aggregate of 9,000,000 1.40 9,000,000 1.40 12.60 11.92 Deposit for software development project In order to upgrade the Company’s existing software and operating systems to increase the data processing capability, to diversify the Company’s business operation model and to support its future business expansion, in October 2022, the Company signed a contract with a third-party, ARX, to conduct software application design and development project. ARX is a full-stacked technology solution company specializing in design and development of application of AR, Mixed Reality, Virtual Reality (“VR”), Integrated Business Solution, and Internet of Things to help business entities stand out among the crowd. Total contract price with ARX for Rebates Mall software design and customization, AR software development, and database processing capacity improvement amounted to MYR 218.75 million (approximately $ 47.2 million) for the next three years, including market research, feasibility study, VR Mall Data Management system software conceptualization, visualization, system coding, testing, debugging, and application and server backup supporting services. Total contract price of $ 47.2 million will be paid to ARX in five installments within the next two years, depending on the progress of the software application development project. Pursuant to the contract terms, from November 2022 to December 2022, the Company made a prepayment of $ 23.8 million (MYR 105 million) as the first installment payment to ARX. The Company may, at its discretion, terminate the ARX agreement and request for a full refund of the deposit anytime if the software design and development proposal provided by ARX does not meet the expectation and the deposit of $ 23.8 million shall be refunded to the Company upon receipt of the Company’s written notice of termination. The Company evaluated the subsequent event through January 18, 2023, the date of this report, and concluded that there are no additional material reportable subsequent events that need to be disclosed. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation and principles of consolidation | Basis of presentation and principles of consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The accompanying consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries. All inter-company balances and transactions are eliminated upon consolidation. |
Uses of estimates | Uses of estimates 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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include the valuation of accounts receivable, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets, realization of deferred tax assets, provision necessary for contingent liabilities, and revenue recognition. Actual results could differ from those estimates. |
Risks and uncertainties | Risks and uncertainties The main operations of the Company are located in Malaysia. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by changes in political, economic, social, regulatory, and legal environments in Malaysia, as well as by the general state of the economy in Malaysia. Although the Company has not experienced losses from these situations and believes that it complies with existing laws and regulations, including its organization and structure disclosed in Note 1, this may not be indicative of future results. The Company’s business, financial condition, and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics, and other catastrophic incidents, which could significantly disrupt the Company’s operations. The COVID-19 pandemic has adversely affected the Company’s business operations. Specifically, prior to April 1, 2022, significant governmental measures implemented by the Malaysian government, including various stages of lockdowns, closures, quarantines, and travel bans, led to the store closure of some of the Company’s offline merchants. As a result, although business in Malaysia had gradually resumed since April 1, 2022, the Company’s cash rebate service business was negatively affected to a certain extent, because the number of offline sales transactions between retail shoppers and retail merchants facilitated by the Company did not grow as much as the Company expected, leading to a lower amount of cash rebate service revenue than the Company expected during the fiscal years ended September 30, 2022, 2021, and 2020. However, the Company’s digital advertising service revenue was not significantly affected by the COVID-19 pandemic, because more people have opted to use various online services since the beginning of the COVID-19 pandemic. As more advertisers used the Company’s digital advertising services through its websites and mobile apps and third-party social media channels to target their audiences, the Company’s revenue from digital advertising services increased significantly from fiscal year 2021 to fiscal year 2022. However, any resurgence of the COVID-19 pandemic could negatively affect the execution of customer contracts and the collection of customer payments. The extent of any future impact of the COVID-19 pandemic on the Company’s business is still highly uncertain and cannot be predicted as of the financial statement reporting date. Any potential impact to the Company’s operating results will depend, to a large extent, on future developments and new information that may emerge regarding the duration and severity of the COVID-19 pandemic and the actions taken by government authorities to contain the spread of the COVID-19 pandemic, almost all of which are beyond the Company’s control. |
Cash | Cash Cash includes currency on hand and deposits held by banks that can be added or withdrawn without limitation. The Company maintains all of its bank accounts in Malaysia. Cash deposit with financial institutions in Malaysia is subject to certain protection under the requirement of the deposit insurance system. The maximum insurance coverage limit is MYR 250,000 ($ 60,000 ) per bank account. As of September 30, 2022 and 2021, the Company had a cash balance of $ 17,778,895 and $ 2,295,277 , respectively, of which, $ 17,428,788 and $ 1,856,418 was not covered by such insurance, respectively. |
Accounts receivable, net | Accounts receivable, net Accounts receivable primarily include service fees generated from providing digital advertising services and payment solution services to retail merchant customers (see Note 3). Accounts receivable are presented net of allowance for doubtful accounts. The Company determines the adequacy of allowance for doubtful accounts based on individual account analysis, historical collection trend, and the best estimate of specific losses on individual exposures. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. Actual amounts received may differ from management’s estimate of credit worthiness and the economic environment. Delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. As of September 30, 2022 and 2021, there was no allowance for doubtful accounts recorded as the Company considers all of the outstanding accounts receivable fully collectible. |
Deferred IPO costs | Deferred IPO costs The Company complies with the requirement of the Accounting Standards Codification (“ASC”) 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A—”Expenses of Offering.” Deferred offering costs consist of underwriting, legal, consulting, and other expenses incurred through the balance sheet date that are directly related to the intended IPO. Deferred offering costs will be charged to shareholders’ equity upon the completion of the IPO. Should the IPO prove to be unsuccessful, these deferred costs, as well as additional expenses to be incurred, will be charged to operations. Payment for deferred IPO costs amounted to $ 736,010 , nil , and nil for the fiscal years ended September 30, 2022, 2021, and 2020, respectively. |
Property and equipment | Property and equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment are provided using the straight-line method over their expected useful lives, as follows: SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIVES Useful life Office equipment and furniture 3 5 Expenditures for maintenance and repair, which do not materially extend the useful lives of the assets, are charged to expenses as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of operations and comprehensive income (loss) in other income (expenses). |
Intangible assets | Intangible assets The Company’s intangible assets primarily consist of purchased computer software and applications used in conducting the Company’s cash rebate and digital advertising business. Intangible assets also include content assets, which are licensed movies and television series acquired from third-party content providers in order to offer members unlimited viewing of such content to drive traffic on the Company’s SEEBATS website and mobile app. Intangible assets are carried at cost less accumulated amortization and any recorded impairment (see Note 5). Intangible assets are amortized using the straight-line method with the following estimated useful lives: SCHEDULE OF INTANGIBLE ASSETS Useful life Computer software and applications 5 10 Content assets-licensed movies and television series Over the license period or estimated period of use |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets with finite lives, primarily property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated future undiscounted cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, the asset is deemed to be impaired and written down to its fair value. There were no |
Fair value of financial instruments | Fair value of financial instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: ● Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. ● Level 3 — inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s financial instruments, including cash, accounts receivable, prepaid expenses and other current assets, deferred revenue, taxes payable, due to a related party, and accrued expenses and other current liabilities approximate the fair value of the respective assets and liabilities as of September 30, 2022 and 2021 based upon the short-term nature of the assets and liabilities. |
Foreign currency translation | Foreign currency translation The functional currency for Starbox Group is the U.S Dollar (“US$”). Starbox Berhad, StarboxGB, StarboxSB, and StarboxPB use Malaysian Ringgit (“MYR”) as their functional currency. The Company’s consolidated financial statements have been translated into and reported in US$. Assets and liabilities accounts are translated using the exchange rate at each reporting period end date. Equity accounts are translated at historical rates. Income and expense accounts are translated at the average rate of exchange during the reporting period. The resulting translation adjustments are reported under other comprehensive income. Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the results of operations. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: SCHEDULE OF CURRENCY EXCHANGE RATE September 30, 2022 September 30, 2021 September 30, 2020 Year-end spot rate US$ 1 4.6359 US$ 1 4.1869 US$ 1 4.1576 Average rate US$ 1 4.3041 US$ 1 4.1243 US$ 1 4.2163 |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). The foreign currency translation gain or loss resulting from the translation of the financial statements expressed in MYR to US$ is reported in other comprehensive income (loss) in the consolidated statements of operations and comprehensive income (loss). |
Revenue recognition | Revenue recognition To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract(s) with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not The Company currently generates its revenue from the following main sources: Revenue from digital advertising services The Company’s advertising service revenue is derived principally from advertising contracts with retail merchant customers (the “advertisers”), which allow advertisers to place advertisements on the Company’s websites and mobile apps and third-party social media channels over a particular period of time. The advertising contracts specify the related fees and payment terms and provide evidence of the arrangements. The Company’s digital adverting services are to (i) provide advertisement design and consultation services to help advertisers precisely shape their digital advertising strategies and optimize the design, content, and layout of their advertisements and (ii) the displaying of advertisers’ advertisements of products and services on the Company’s websites and mobile apps and third-party social media channels over a particular period of time and in a variety of forms, such as logos, banners, push notification, and posts by accounts of influencers and bloggers, to help promote advertisers’ products and services and enhance their brand awareness. Advertisers may elect to engage with the Company for only advertisement display services or both advertisement design and consultation services and advertisement display services. In connection with these digital advertising services, the Company charges retail merchant customers nonrefundable advertising service fees. 2,400 38,000 5,000 240,000 The Company identifies advertisement design and consultation services and advertisement display services as two separate performance obligations, as each are services that are capable of being distinct and distinct in the context of advertising contracts. Each of the service commitments in advertisement design and consultation services, including advice on advertising strategies, customization and optimization of the desired content, length, color tone, layout, format, and presentation of the ads, are not distinct in the context of advertising contracts, because they are inputs to deliver the combined output of advertisements to be displayed as specified by the customer. Therefore, advertisement design and consultation services are identified as a single performance obligation. The Company allocates revenue to each performance obligation based on its stand-alone selling price, which is specified in the contracts. The Company’s advertisement design and consultation services are normally rendered within a short period of time, ranging from a few days to a month. As all the benefits enjoyed by the customers can be substantially realized at the time when the design and consultation services are completed, the Company recognizes revenue at the point when designated services are rendered and accepted by the customers. The Company does not provide rights of return, credits or discounts, price protection, or other similar privileges to customers for such services and accordingly no variable consideration included in such services. The majority of the Company’s advertising contracts are for the provision of advertisement display on the Company’s websites and mobile apps and social media channels for a fixed period of time (ranging from a few weeks to a few months) without a guaranteed minimum impression level. In instances where certain discounts are provided to customers for advertisement displays, such discounts are reported as deduction of revenue. Revenue from advertisement services is recognized over the period the advertisement is displayed. Advances from customers are deferred first and then recognized as revenue until the completion of the contract. There are no future obligations after the completion of the contract and no rights of refund related to the impression levels. Revenue from cash rebate services The Company also utilizes its websites and mobile apps to connect retail merchants and retail shoppers and facilitate retail shoppers to purchase consumer products or services from retail merchants online or offline under the cash rebate programs offered by retail merchants. The cash rebate offered by retail merchants range from 0.25 % to 25 % based on the sales price of the products or services, among which approximately 66 86 % are awarded to retail shoppers, and the Company is entitled to receive and retain the remaining approximately 34 14 % as cash rebate revenue for facilitating online and offline sales transactions. There is a single performance obligation in the contract, as the performance obligation is to facilitate the sales transactions between the retail shoppers and the retail merchants. The Company merely acts as an agent in this type of transactions. The Company does not have control of the goods or services under the sales transactions between the retail merchants and retail shoppers, has no discretion in establishing prices, and does not have the ability to direct the use of the goods or services to obtain substantially all the benefits. The Company recognizes cash rebate revenue at the point when retail merchants and retail shoppers are connected and the sales transactions are facilitated and completed. Revenue is reported net of service taxes. For the fiscal years ended September 30, 2022, 2021, and 2020, the Company only reported cash rebate revenue of $ 10,562 6,214 718 Revenue from payment solution services In May 2021, the Company started to provide payment solution services to retail merchant customers by referring them to VE Services Sdn Bhd , . 1.50 2.50 0.15 0.525 9,575 1,494 |
Disaggregation of revenue | Disaggregation of revenue The Company disaggregates its revenue from contracts by service types, as the Company believes it best depicts how the nature, amount, timing, and uncertainty of the revenue and cash flows are affected by economic factors. The summary of the Company’s disaggregation of revenue by service types for the fiscal years ended September 30, 2022, 2021, and 2020 is as follows: SCHEDULE OF DISAGGREGATION OF REVENUE 2022 2021 2020 For the fiscal years ended 2022 2021 2020 Revenue from advertising services: Advertisement design and consultation services $ 1,575,800 $ 384,061 $ - Advertisement display services 5,845,310 2,921,937 153,145 Gross revenue from advertising services 7,421,110 3,305,998 153,145 Less: discount to customers for advertisement displays (247,060 ) (147,478 ) - Sub-total of net revenue from advertising services 7,174,050 3,158,520 153,145 Revenue from cash rebate services 10,562 6,214 718 Revenue from payment solution services-related party 9,575 1,494 - Total operating revenue $ 7,194,187 $ 3,166,228 $ 153,863 Contract Assets and Liabilities The Company did no A contract liability is the Company’s obligation to transfer goods or services to a customer for which it has received consideration from the customers. Receipts in advance and deferred revenue relate to unsatisfied performance obligations at the end of the period primarily consist of digital advertising service fees received from customers. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following reporting period. Contract liabilities presented as deferred revenue in the consolidated balance sheets as of September 30, 2022 and 2021 amounted to nil 800,492 800,492 122,668 nil The Company does not disclose information about remaining performance obligations pertaining to service contracts with an original expected term of one year or less. |
Operating leases | Operating leases On October 1, 2020, the Company adopted Accounting Standards Updates (“ASU”) 2016-02, Leases (Topic 842), as amended (“ASC 842”), which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and finance lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing, and uncertainty of cash flows arising from leasing arrangements. The Company elected to apply practical expedients permitted under the transition method that allow the Company to use the beginning of the period of adoption as the date of initial application, to not recognize lease assets and lease liabilities for leases with a term of 12 months or less, to not separate non-lease components from lease components, and to not reassess lease classification, treatment of initial direct costs, or whether an existing or expired contract contains a lease. The Company used a modified retrospective method and did not adjust the prior comparative periods. Under the new lease standard, the Company determines if an arrangement is or contains a lease at inception. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of remaining lease payments over the lease terms. The Company considers only payments that are fixed and determinable at the time of lease commencement. At the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment annually. There was no impairment for right-of-use lease assets as of September 30, 2022 and 2021. |
Operating costs | Operating costs The Company’s operating costs primarily consist of (i) marketing and promotional expenses to develop members, merchants, and advertisers, (ii) website and facility maintenance expenses to upgrade, optimize, and maintain its websites and mobile apps, (iii) employee salary and benefit expenses, (iv) professional and business consulting expenses, and (v) other general office expenses for administrating the Company’s business. Operating costs are expensed as incurred. Judgment is required to determine whether to separately present cost of revenue, selling expenses, and general and administrative expenses. The Company considers materiality, the manner that operating costs can be separately identified, and what is most useful to financial statement users, and elects to present all costs and operating expenses as a single line item “cost, selling, general, and administrative expenses” as reflected in the consolidated statements of operations. Management believes that such presentation is meaningful when considering the nature of the Company’s operations and the manner in which the Company manages its business. The Company’s operating costs for the fiscal years ended September 30, 2022, 2021, and 2020, consisted of the following: SCHEDULE OF OPERATING COSTS 2022 2021 2020 For the fiscal years ended September 30, 2022 2021 2020 Salary and employee benefit expenses $ 429,924 $ 191,981 $ 41,988 Professional and consulting service fees 767,229 365,774 5,172 Marketing and promotional expenses 188,338 167,803 159,852 License costs 55,000 50,000 60,000 Website and facility maintenance expenses 292,579 185,757 43,936 Depreciation and amortization 106,267 2,568 1,948 Utility and office expenses 144,735 19,185 3,213 Business travel and entertainment expenses 67,836 6,003 25 Others 191,842 37,268 27,892 Total operating costs $ 2,243,750 $ 1,026,339 $ 344,026 |
Research and development | Research and development The Company’s research and development activities primarily relate to the optimization and implementation of its websites and mobile apps (such as leveraging browser caching, improving server response time, removing render-blocking JavaScript, reducing redirects, and optimizing images), to improve their performance and drive more traffic. Research and development costs are expensed as incurred. Research and development expenses included in cost, selling, general, and administrative expenses amounted to $ 292,579 147,296 38,925 |
Income taxes | Income taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. An uncertain tax position is recognized only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes were incurred during the fiscal years ended September 30, 2022, 2021, and 2020. The Company does not believe there was any uncertain tax provision as of September 30, 2022 and 2021. The Company’s operating subsidiaries in Malaysia are subject to the income tax laws of Malaysia. No significant income was generated outside Malaysia for the fiscal years ended September 30, 2022, 2021, and 2020. As of September 30, 2022, all of the Company’s tax returns of its Malaysian subsidiaries remain open for statutory examination by relevant tax authorities. |
Service taxes | Service taxes Service tax is a consumption tax levied by Malaysian tax authorities and is charged on any taxable service income (including digital services) provided in Malaysia by a registered company in carrying on their business. The rate of service tax is 6% ad valorem for all taxable services and digital services except for the provision of charge or credit card services. A taxable entity is a company that is registered or liable to be registered for service taxes. A company is liable to be registered if the total value of its taxable services for a 12-month period exceeds or is expected to exceed the prescribed registration threshold of MYR 500,000 as an advertising service provider. Service taxes amounted to $ 262,816 , $ 190,972 , and $ 2,237 for the fiscal years ended September 30, 2022, 2021, and 2020, respectively and were recorded as a deduction against the Company’s gross revenue. |
Earnings (loss) per share | Earnings (loss) per share 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 is measured as net income (loss) divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. As of September 30, 2022 and 2021, and for the fiscal years ended September 30, 2022, 2021, and 2020, there were no dilutive shares. |
Statement of cash flows | Statement of cash flows In accordance with ASC 230, “Statement of Cash Flows,” cash flows from the Company’s operations are formulated based upon the local currencies using the average exchange rate in the period. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. |
Related parties and transactions | Related parties and transactions The Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, “Related Party Disclosures” and other relevant ASC standards. Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence. Transactions between related parties commonly occurring in the normal course of business are considered to be related party transactions. Transactions between related parties are also considered to be related party transactions even though they may not be given accounting recognition. While ASC does not provide accounting or measurement guidance for such transactions, it nonetheless requires their disclosure. |
Defined contribution plan | Defined contribution plan The full-time employees of the Company’s subsidiaries in Malaysia are entitled to the government mandated defined contribution plan, such as social security, employee provident fund, employment insurance, and human resource development fund, as required by labor laws in Malaysia. The Company is required to accrue and pay for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant government regulations, and make cash contributions to the government mandated defined contribution plan. Employee defined contribution plan expenses amounted to $ 45,121 20,871 4,246 for the years ended September 30, 2022, 2021, and 2020, respectively. |
Recent accounting pronouncements | Recent accounting pronouncements The Company considers the applicability and impact of all ASUs. Management periodically reviews new accounting standards that are issued. |
Recently adopted accounting pronouncements | Recently adopted accounting pronouncements In December 2020, the FASB issued ASU 2020-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2020-12”). ASU 2020-12 is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. ASU 2020-12 is effective for fiscal years beginning after December 15, 2021 and interim periods within those fiscal years, with early adoption permitted. The adoption of the new guidance did not have a significant impact on its consolidated financial statements. |
Recent accounting pronouncements not yet adopted | Recent accounting pronouncements not yet adopted In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) (“ASU 2016-13”), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASU 2016-13 was subsequently amended by ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, and ASU 2019-05, Targeted Transition Relief. In November 2019, the FASB issued ASU 2019-10, which extends the effective date for adoption of ASU 2016-13. In November 2019, the FASB issued ASU 2019-11 to clarify its new credit impairment guidance in ASU 326. Accordingly, for public entities that are not smaller reporting entities, ASU 2016-13 and its amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. For all other entities, this guidance and its amendments will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. As an emerging growth company, the Company plans to adopt this guidance effective October 1, 2023. The Company is currently evaluating the impact of its pending adoption of ASU 2016-13 on its consolidated financial statements. |
ORGANIZATION AND BUSINESS DES_2
ORGANIZATION AND BUSINESS DESCRIPTION (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SCHEDULE OF CONSOLIDATED FINANCIAL STATEMENTS OF ENTITIES | SCHEDULE OF CONSOLIDATED FINANCIAL STATEMENTS OF ENTITIES Entity Date of Formation Place of Incorporation % of Ownership Major business activities Starbox Group September 13, 2021 Cayman Islands Parent Investment holding Starbox Berhad July 24, 2019 Malaysia 100% Investment holding StarboxGB July 24, 2019 Malaysia 100% Network marketing, facilitating online and offline transactions between retail merchants and retail shoppers through cash rebate programs offered by retail merchants StarboxSB July 23, 2019 Malaysia 100% Providing digital advertising services to retail merchant customers StarboxPB May 21, 2019 Malaysia 100% Providing secured payment solution services to retail merchant customers |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIVES | SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIVES Useful life Office equipment and furniture 3 5 |
SCHEDULE OF INTANGIBLE ASSETS | SCHEDULE OF INTANGIBLE ASSETS Useful life Computer software and applications 5 10 Content assets-licensed movies and television series Over the license period or estimated period of use |
SCHEDULE OF CURRENCY EXCHANGE RATE | SCHEDULE OF CURRENCY EXCHANGE RATE September 30, 2022 September 30, 2021 September 30, 2020 Year-end spot rate US$ 1 4.6359 US$ 1 4.1869 US$ 1 4.1576 Average rate US$ 1 4.3041 US$ 1 4.1243 US$ 1 4.2163 |
SCHEDULE OF DISAGGREGATION OF REVENUE | SCHEDULE OF DISAGGREGATION OF REVENUE 2022 2021 2020 For the fiscal years ended 2022 2021 2020 Revenue from advertising services: Advertisement design and consultation services $ 1,575,800 $ 384,061 $ - Advertisement display services 5,845,310 2,921,937 153,145 Gross revenue from advertising services 7,421,110 3,305,998 153,145 Less: discount to customers for advertisement displays (247,060 ) (147,478 ) - Sub-total of net revenue from advertising services 7,174,050 3,158,520 153,145 Revenue from cash rebate services 10,562 6,214 718 Revenue from payment solution services-related party 9,575 1,494 - Total operating revenue $ 7,194,187 $ 3,166,228 $ 153,863 |
SCHEDULE OF OPERATING COSTS | SCHEDULE OF OPERATING COSTS 2022 2021 2020 For the fiscal years ended September 30, 2022 2021 2020 Salary and employee benefit expenses $ 429,924 $ 191,981 $ 41,988 Professional and consulting service fees 767,229 365,774 5,172 Marketing and promotional expenses 188,338 167,803 159,852 License costs 55,000 50,000 60,000 Website and facility maintenance expenses 292,579 185,757 43,936 Depreciation and amortization 106,267 2,568 1,948 Utility and office expenses 144,735 19,185 3,213 Business travel and entertainment expenses 67,836 6,003 25 Others 191,842 37,268 27,892 Total operating costs $ 2,243,750 $ 1,026,339 $ 344,026 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Credit Loss [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | Accounts receivable, net, consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE September 30, 2022 September 30, Accounts receivable associated with digital advertising services $ 2,032,717 $ 1,361,581 Accounts receivable associated with payment solution services – related party - 836 Accounts receivable - 836 Less: allowance for doubtful account - - Accounts receivable, net $ 2,032,717 $ 1,362,417 |
SCHEDULE OF ACCOUNTS RECEIVABLE AND SUBSEQUENT COLLECTION | SCHEDULE OF ACCOUNTS RECEIVABLE AND SUBSEQUENT COLLECTION Accounts receivable by aging bucket Balance as of September 30, 2022 Subsequent collection % of subsequent collection Less than 6 months $ 2,032,717 $ 1,311,268 65 % From 7 to 9 months - - - % From 10 to 12 months - - - % Over 1 year - - - % Total gross accounts receivable - - - % Allowance for doubtful accounts - - - Accounts receivable, net $ 2,032,717 $ 1,311,268 65 % Accounts receivable by aging bucket Balance as of September 30, 2021 Subsequent collection % of subsequent collection Less than 6 months $ 1,362,342 $ 1,362,342 100 % From 7 to 9 months 12 12 100 % From 10 to 12 months - - - % Over 1 year 63 63 100 % Total gross accounts receivable 1,362,417 1,362,417 100 % Allowance for doubtful accounts - - - Accounts receivable, net $ 1,362,417 $ 1,362,417 100 % |
PREPAYMENTS (Tables)
PREPAYMENTS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Prepayments | |
SCHEDULE OF PREPAYMENTS | Prepayments consisted of the following: SCHEDULE OF PREPAYMENTS September 30, 2022 September 30, 2021 Prepayments: Speedprop Global Sdn. Bhd. (1) $ 1,206,757 $ - ARX Media Sdn. Bhd. (2) 2,469,425 - Other third-party vendors (3) 593,429 - Less: allowance for doubtful account - - Total prepayments $ 4,269,611 $ - The Company currently operates its business through its GETBATS, SEEBATS, and PAYBATS websites and mobile applications. The satisfactory performance, reliability, and availability of the Company’s information technology systems are critical to its ability to drive more Internet traffic to its advertising websites and mobile apps and provide effective digital advertising services for brands and retailers, especially when the Company starts to expand its business from Malaysia to neighboring countries such as Indonesia, Philippine and Thailand. (1) On June 19, 2022, the Company entered into an agreement with third-party vendor Speedprop Global Sdn. Bhd. (“Speedprop”), pursuant to which, Speedprop will help the Company develop Augmented Reality (“AR”) travel guide app with key commercial objective to provide personalized instant rebates, voucher distribution, and ad placements for merchants. Total contract price amounted to MYR 10.8 2.3 1,206,757 5,594,400 (2) In order to upgrade the Company’s existing software and operating systems to increase the data processing capability, to diversify the Company’s business operation model, and to support its future business expansion, on August 1, 2022, the Company signed a contract with a third-party technology solution company, ARX Media Sdn. Bhd. (“ARX”), to conduct software application design and development for the Company’s Virtual Reality Rebate Mall project (the “Starbox VR Rebate Mall project”). Pursuant to the contract, ARX will help the Company conduct market research, feasibility study, VR Mall Data Management system software conceptualization, visualization, system coding, testing, and debugging, to initialize and rollout the application as a progressive web portal, which can be further developed into a mobile app to allow integration to various platforms. Total contract price for this project amounted to MYR 13.5 2.9 2,469,425 11.4 (3) Prepayments to other vendors primarily include prepayment to third-party vendors and service providers for domain renewal services, promotion and advertisement system integration services, and rental deposits. |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT | Property and equipment, net, consisted of the following: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT September 30, September 30, Office equipment and furniture $ 21,407 $ 16,847 Less: accumulated depreciation (8,027 ) (4,671 ) Property and equipment, net $ 13,380 $ 12,176 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS NET | Intangible assets, net, consisted of the following: SCHEDULE OF INTANGIBLE ASSETS NET September 30, 2022 September 30, 2021 Computer software and applications (1) $ 939,753 $ - Content assets- licensed movies and television series (2) 108,678 - Less: accumulated amortization (144,663 ) - Intangible asset, net $ 903,768 $ - (1) In order to support the Company’s expansion of its digital advertising service and cash rebate service businesses, in December 2021, the Company purchased packaged computer software and applications from a third-party vendor at the aggregate cost of MYR 2.12 504,222 501,412 2.32 Amortization of intangible assets – computer and applications amounted to $ 102,164 nil nil (2) The Company’s Malaysian subsidiary, StarboxSB, operates the SEEBATS website and mobile app, on which viewers may watch movies and television series through over-the-top streaming. These movies and television series are licensed from third-party content providers. The Company acquires and licenses these movie and television series content in order to offer members unlimited viewing of such content to drive traffic on the SEEBATS website and mobile app. The content licenses are for a fixed fee and specific windows of availability. |
TAXES (Tables)
TAXES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF INCOME TAX PROVISION | The components of the income tax provision were as follows: SCHEDULE OF INCOME TAX PROVISION For the fiscal years ended September 30, 2022 2021 2020 Current income tax provision Cayman Island $ - $ - $ - Malaysia 1,407,449 724,508 14,991 Subtotal 724,508 14,991 Deferred income tax provision Cayman Island - - - Malaysia - (32,103 ) - Total income tax provision $ 1,407,449 $ 692,405 $ 14,991 |
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION | SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION For the fiscal years ended September 30, 2022 2021 2020 Income tax provision computed based on Malaysia unified income tax statutory rate $ 1,410,066 $ 566,514 $ (45,639 ) Effect of tax exemption due to reduced income tax rate for small and medium sized companies - (10,183 ) 13,311 Permanent difference 401,286 37,329 9,353 Change in valuation allowance (403,903 ) 98,745 37,966 Actual income tax provision $ 1,407,449 $ 692,405 $ 14,991 |
SCHEDULE OF DEFERRED TAX ASSETS | The Company’s deferred tax assets were comprised of the following: SCHEDULE OF DEFERRED TAX ASSETS As of 2022 2021 Deferred tax assets derived from net operating loss carry forwards $ 35,174 $ 137,932 Less: valuation allowance (35,174 ) (137,932 ) Deferred tax assets $ - $ - |
SCHEDULE OF VALUATION ALLOWANCE | SCHEDULE OF VALUATION ALLOWANCE As of 2022 2021 Balance at beginning of the year $ 137,932 $ 40,949 Current period change (102,758 ) 96,983 Balance at end of the year $ 35,174 $ 137,932 |
SCHEDULE OF TAXES PAYABLE | Taxes payable consisted of the following SCHEDULE OF TAXES PAYABLE September 30, 2022 September 30, 2021 Income tax payable $ 1,188,274 $ 683,862 Service tax payable 215,854 190,972 Total $ 1,404,128 $ 874,834 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF RELATED PARTIES | SCHEDULE OF RELATED PARTIES Name of Related Party Relationship to the Company Choo Keam Hui The Company’s former director and one of the directors of Starbox Berhad Zenapp Sdn Bhd (“Zenapp”) An entity controlled by Choo Keam Hui prior to September 20, 2021 Bizguide Corporate Service Sdn Bhd An entity controlled by Khoo Kien Hoe, the CFO of Starbox Group KH Advisory Sdn Bhd An entity controlled by Khoo Kien Hoe, the CFO of Starbox Group VE Services An entity controlled by Choo Teck Hong, one of the Company’s beneficial shareholders, a director of Starbox Berhad, and a sibling of Choo Keam Hui |
SCHEDULE OF DUE FROM A RELATED PARTY | Due from a related party consisted of the following: SCHEDULE OF DUE FROM A RELATED PARTY Name September 30, September 30, VE Services $ 1,473 $ - |
SCHEDULE OF DUE TO RELATED PARTIES | Due to related parties consisted of the following: SCHEDULE OF DUE TO RELATED PARTIES Name September 30, September 30, Choo Keam Hui $ - $ 756,478 Bizguide Corporate Service Sdn Bhd 1,763 - KH Advisory Sdn Bhd $ 5,598 $ - |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Leases | |
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO OPERATING LEASE | Supplemental balance sheet information related to the Company’s operating leases was as follows: SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO OPERATING LEASE September 30, September 30, Operating lease right-of-use assets $ 49,145 $ 312,429 Right-of-use assets - accumulated amortization (6,571 ) (7,165 ) Right-of-use assets, net $ 42,574 $ 305,264 Operating lease liabilities – current $ 15,833 $ 72,362 Operating lease liabilities – non-current 26,741 232,902 Total operating lease liabilities $ 42,574 $ 305,264 |
SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES | The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of September 30, 2022 and 2021: SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES September 30, September 30, Remaining lease term and discount rate: Weighted average remaining lease term (years) 2.50 3.92 Weighted average discount rate * 5 % 5.0 % * The Company’s lease agreements do not provide a readily determinable implicit rate nor is it available to the Company from its lessors. Instead, the Company estimates its incremental borrowing rate based on the benchmark lending rate for three-year loans as published by Malaysia’s central bank in order to discount lease payments to present value. |
SCHEDULE OF THE MATURITIES OF OPERATING LEASE LIABILITIES | As of September 30, 2022, the maturities of operating lease liabilities were as follows: SCHEDULE OF THE MATURITIES OF OPERATING LEASE LIABILITIES 12 months ending September 30, Lease 2023 $ 17,601 2024 17,601 2025 10,268 Total future minimum lease payments 45,470 Less: imputed interest 2,896 Total $ 42,574 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SUMMARY INFORMATION BY SEGMENT | The following tables present summary information by segment for the fiscal years ended September 30, 2022, 2021, and 2020, respectively: SCHEDULE OF SUMMARY INFORMATION BY SEGMENT For the Fiscal Year Ended September 30, 2022 Cash rebate services Digital advertising Payment Total Revenue $ 10,562 $ 7,174,050 $ 9,575 $ 7,194,187 Operating costs 654,687 1,714,759 130,480 2,243,750 Income (loss) from operations (671,052 ) 5,742,132 (120,642 ) 4,950,437 Income tax expense 609,983 797,462 4 1,407,449 Net income (loss) (1,280,751 ) 5,003,684 (120,568 ) 3,602,365 Capital expenditure $ 1,527 $ 398,421 $ 735,981 $ 1,135,929 Total assets $ 11,862,705 $ 12,873,793 $ 305,919 $ 25,042,418 For the Fiscal Year Ended September 30, 2021 Cash rebate services Digital advertising Payment Total Revenue $ 6,214 $ 3,158,520 $ 1,494 $ 3,166,228 Operating costs 387,537 581,813 56,989 1,026,339 Income (loss) from operations (381,323 ) 2,576,707 (55,495 ) 2,139,889 Income tax expense - 692,405 - 692,405 Net income (loss) (381,157 ) 1,884,302 (55,495 ) 1,447,650 Capital expenditure $ - $ 5,203 $ - $ 5,203 Total assets $ 162,355 $ 3,716,568 $ 136,212 $ 4,015,135 For the Fiscal Year Ended September 30, 2020 Cash rebate services Digital advertising Payment Total Revenue $ 718 $ 153,145 $ - $ 153,863 Operating costs 237,579 106,447 - 344,026 Income (loss) from operations (236,861 ) 46,698 - (190,163 ) Income tax expense - 14,991 - 14,991 Net income (loss) (236,861 ) 31,707 - (205,154 ) Capital expenditure $ - $ 8,198 $ - $ 8,198 Total assets $ 367,883 $ 296,018 $ - $ 663,901 |
SCHEDULE OF CONSOLIDATED FINANC
SCHEDULE OF CONSOLIDATED FINANCIAL STATEMENTS OF ENTITIES (Details) | 12 Months Ended |
Sep. 30, 2022 | |
Starbox Group [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of formation | Sep. 13, 2021 |
Place of incorporation | Cayman Islands |
Percenatge of ownership description | Parent |
Major business activities description | Investment holding |
Starbox Berhad [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of formation | Jul. 24, 2019 |
Place of incorporation | Malaysia |
Major business activities description | Investment holding |
Percenatge of ownership | 100% |
Starbox GB [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of formation | Jul. 24, 2019 |
Place of incorporation | Malaysia |
Major business activities description | Network marketing, facilitating online and offline transactions between retail merchants and retail shoppers through cash rebate programs offered by retail merchants |
Percenatge of ownership | 100% |
Starbox SB [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of formation | Jul. 23, 2019 |
Place of incorporation | Malaysia |
Major business activities description | Providing digital advertising services to retail merchant customers |
Percenatge of ownership | 100% |
Starbox PB [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Date of formation | May 21, 2019 |
Place of incorporation | Malaysia |
Major business activities description | Providing secured payment solution services to retail merchant customers |
Percenatge of ownership | 100% |
ORGANIZATION AND BUSINESS DES_3
ORGANIZATION AND BUSINESS DESCRIPTION (Details Narrative) - USD ($) | 12 Months Ended | ||||
Aug. 25, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Jul. 24, 2019 | |
Shares Issued, Price Per Share | $ 4 | ||||
Proceeds from Issuance of Common Stock | $ 18,769,326 | ||||
Proceeds from initial public offerings | $ 2,730,674 | ||||
IPO [Member] | |||||
Stock Issued During Period, Shares, New Issues | 5,375,000 | ||||
Shares Issued, Price Per Share | $ 4 | ||||
Proceeds from Issuance of Common Stock | $ 21,500,000 | ||||
Proceeds from initial public offerings | 18,800,000 | ||||
Proceeds from initial public offerings | $ 2,700,000 | ||||
Starbox Group [Member] | |||||
Equity interest owned, percentage | 100% | ||||
Starbox Berhad [Member] | |||||
Equity interest owned, percentage | 100% |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT USEFUL LIVES (Details) - Office Equipment And Furniture [Member] | 12 Months Ended |
Sep. 30, 2022 | |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment expected useful lives | 3 years |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment expected useful lives | 5 years |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) | 12 Months Ended |
Sep. 30, 2022 | |
Content Assets Licensed Movies And Television Series [Member] | |
Property, Plant and Equipment [Line Items] | |
Intangible assets amortization method | Over the license period or estimated period of use |
Minimum [Member] | Computer Software and Application [Member] | |
Property, Plant and Equipment [Line Items] | |
Intangible asset useful life | 5 years |
Maximum [Member] | Computer Software and Application [Member] | |
Property, Plant and Equipment [Line Items] | |
Intangible asset useful life | 10 years |
SCHEDULE OF CURRENCY EXCHANGE R
SCHEDULE OF CURRENCY EXCHANGE RATE (Details) | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Year End Spot Rate [Member] | |||
Foreign currency exchange rate | 1 | 1 | 1 |
Year End Spot Rate M Y R [Member] | |||
Foreign currency exchange rate | 4.6359 | 4.1869 | 4.1576 |
Average Rate [Member] | |||
Foreign currency exchange rate | 1 | 1 | 1 |
Average Rate MYR [Member] | |||
Foreign currency exchange rate | 4.3041 | 4.1243 | 4.2163 |
SCHEDULE OF DISAGGREGATION OF R
SCHEDULE OF DISAGGREGATION OF REVENUE (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Product Information [Line Items] | |||
Total operating revenue | $ 7,194,187 | $ 3,166,228 | $ 153,863 |
Advertising Services [Member] | |||
Product Information [Line Items] | |||
Advertisement design and consultation services | 1,575,800 | 384,061 | |
Advertisement display services | 5,845,310 | 2,921,937 | 153,145 |
Gross revenue from advertising services | 7,421,110 | 3,305,998 | 153,145 |
Less: discount to customers for advertisement displays | (247,060) | (147,478) | |
Digital Advertising Services [Member] | |||
Product Information [Line Items] | |||
Total operating revenue | 7,174,050 | 3,158,520 | 153,145 |
Cash Rebate Services [Member] | |||
Product Information [Line Items] | |||
Total operating revenue | 10,562 | 6,214 | 718 |
Payment Solution Services Related Party [Member] | |||
Product Information [Line Items] | |||
Total operating revenue | $ 9,575 | $ 1,494 |
SCHEDULE OF OPERATING COSTS (De
SCHEDULE OF OPERATING COSTS (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accounting Policies [Abstract] | |||
Salary and employee benefit expenses | $ 429,924 | $ 191,981 | $ 41,988 |
Professional and consulting service fees | 767,229 | 365,774 | 5,172 |
Marketing and promotional expenses | 188,338 | 167,803 | 159,852 |
License costs | 55,000 | 50,000 | 60,000 |
Website and facility maintenance expenses | 292,579 | 185,757 | 43,936 |
Depreciation and amortization | 106,267 | 2,568 | 1,948 |
Utility and office expenses | 144,735 | 19,185 | 3,213 |
Business travel and entertainment expenses | 67,836 | 6,003 | 25 |
Others | 191,842 | 37,268 | 27,892 |
Total operating costs | $ 2,243,750 | $ 1,026,339 | $ 344,026 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 1 Months Ended | 12 Months Ended | ||||
May 31, 2021 | Sep. 30, 2022 USD ($) | Sep. 30, 2022 MYR (RM) | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | Sep. 30, 2022 MYR (RM) | |
Property, Plant and Equipment [Line Items] | ||||||
Cash, FDIC Insured Amount | $ 60,000 | RM 250,000 | ||||
Cash | 17,778,895 | $ 2,295,277 | ||||
Cash, Uninsured Amount | 17,428,788 | 1,856,418 | ||||
Payment for deferred IPO costs | 736,010 | |||||
Impairment charges | 0 | 0 | ||||
Revenue from payment solution services | 7,194,187 | 3,166,228 | 153,863 | |||
Cash rebate revenue | 10,562 | 6,214 | 718 | |||
Contract assets | 0 | 0 | ||||
Deferred revenue | 800,492 | |||||
Contract liabilities | 800,492 | 122,668 | ||||
Research and development expenses | 292,579 | 147,296 | 38,925 | |||
Advertising Expense | RM | RM 500,000 | |||||
Service taxes | 262,816 | 190,972 | 2,237 | |||
Employee contribution plan expenses | 45,121 | 20,871 | 4,246 | |||
Payment Solution Services Related Party [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Revenue from payment solution services | 9,575 | $ 1,494 | ||||
Minimum [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Revenue from payment solution services | 2,400 | |||||
Charges advertisers service fees | $ 5,000 | |||||
Percentage of revenue | 0.25% | 0.25% | ||||
Percentage of remaining revenue | 14% | 14% | ||||
Percentage of service fee | 1.50% | |||||
Percentage of commission rate | 0.15% | |||||
Minimum [Member] | Retail Shoppers [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Percentage of revenue | 66% | 66% | ||||
Maximum [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Revenue from payment solution services | $ 38,000 | |||||
Charges advertisers service fees | $ 240,000 | |||||
Percentage of revenue | 25% | 25% | ||||
Percentage of remaining revenue | 34% | 34% | ||||
Percentage of service fee | 2.50% | |||||
Percentage of commission rate | 0.525% | |||||
Maximum [Member] | Retail Shoppers [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Percentage of revenue | 86% | 86% |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Accounts receivable | $ 1,362,417 | |
Less: allowance for doubtful account | ||
Accounts receivable, net | 2,032,717 | 1,362,417 |
Digital Advertising Services [Member] | ||
Accounts receivable | 2,032,717 | 1,361,581 |
Payment Solution Services Related Party [Member] | ||
Accounts receivable | $ 836 |
SCHEDULE OF ACCOUNTS RECEIVAB_2
SCHEDULE OF ACCOUNTS RECEIVABLE AND SUBSEQUENT COLLECTION (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Accounts receivable, gross | $ 1,362,417 | |
Allowance for doubtful accounts | ||
Accounts receivable, net | 2,032,717 | 1,362,417 |
Subsequent Collection [Member] | ||
Accounts receivable, gross | $ 1,362,417 | |
Percentage of subsequent collection | 100% | |
Allowance for doubtful accounts | ||
Accounts receivable, net | $ 1,311,268 | $ 1,362,417 |
Percentage of subsequent collection, net | 65% | 100% |
Less Than 6 Months [Member] | ||
Accounts receivable, gross | $ 2,032,717 | $ 1,362,342 |
Less Than 6 Months [Member] | Subsequent Collection [Member] | ||
Accounts receivable, gross | $ 1,311,268 | $ 1,362,342 |
Percentage of subsequent collection | 65% | 100% |
From 7 To 9 Months [Member] | ||
Accounts receivable, gross | $ 12 | |
From 7 To 9 Months [Member] | Subsequent Collection [Member] | ||
Accounts receivable, gross | $ 12 | |
Percentage of subsequent collection | 100% | |
From 10 To 12 Months [Member] | ||
Accounts receivable, gross | ||
From 10 To 12 Months [Member] | Subsequent Collection [Member] | ||
Accounts receivable, gross | ||
Over 1 Year [Member] | ||
Accounts receivable, gross | 63 | |
Over 1 Year [Member] | Subsequent Collection [Member] | ||
Accounts receivable, gross | $ 63 | |
Percentage of subsequent collection | 100% |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details Narrative) - Subsequent Collection [Member] | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of subsequent collection | 100% | |
Less Than 6 Months [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of subsequent collection | 65% | 100% |
SCHEDULE OF PREPAYMENTS (Detail
SCHEDULE OF PREPAYMENTS (Details) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 MYR (RM) | Sep. 30, 2021 USD ($) | |||
Less: allowance for doubtful account | ||||||
Total prepayments | 4,269,611 | |||||
Other Third Party Vendors [Member] | ||||||
Prepayments | [1] | 593,429 | ||||
Speedprop Global Sdn Bhd [Member] | ||||||
Prepayments | 1,206,757 | RM 5,594,400 | [2] | |||
ARX Media Sdn Bhd [Member] | ||||||
Prepayments | $ 2,469,425 | [3] | RM 11,400,000 | [3] | ||
[1]Prepayments to other vendors primarily include prepayment to third-party vendors and service providers for domain renewal services, promotion and advertisement system integration services, and rental deposits.[2]On June 19, 2022, the Company entered into an agreement with third-party vendor Speedprop Global Sdn. Bhd. (“Speedprop”), pursuant to which, Speedprop will help the Company develop Augmented Reality (“AR”) travel guide app with key commercial objective to provide personalized instant rebates, voucher distribution, and ad placements for merchants. Total contract price amounted to MYR 10.8 2.3 1,206,757 5,594,400 13.5 2.9 2,469,425 11.4 |
SCHEDULE OF PREPAYMENTS (Deta_2
SCHEDULE OF PREPAYMENTS (Details) (Parenthetical) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 MYR (RM) | Aug. 01, 2022 USD ($) | Aug. 01, 2022 MYR (RM) | Jun. 19, 2022 USD ($) | Jun. 19, 2022 MYR (RM) | Sep. 30, 2021 USD ($) | ||
Speedprop Global Sdn Bhd [Member] | |||||||||
Contract price | $ 2,300,000 | RM 10,800,000 | |||||||
Prepayments | $ 1,206,757 | RM 5,594,400 | [1] | ||||||
ARX Media Sdn Bhd [Member] | |||||||||
Contract price | $ 2,900,000 | RM 13,500,000 | |||||||
Prepayments | $ 2,469,425 | [2] | RM 11,400,000 | [2] | |||||
[1]On June 19, 2022, the Company entered into an agreement with third-party vendor Speedprop Global Sdn. Bhd. (“Speedprop”), pursuant to which, Speedprop will help the Company develop Augmented Reality (“AR”) travel guide app with key commercial objective to provide personalized instant rebates, voucher distribution, and ad placements for merchants. Total contract price amounted to MYR 10.8 2.3 1,206,757 5,594,400 13.5 2.9 2,469,425 11.4 |
SCHEDULE OF PROPERTY, PLANT AND
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Property, Plant and Equipment [Abstract] | ||
Office equipment and furniture | $ 21,407 | $ 16,847 |
Less: accumulated depreciation | (8,027) | (4,671) |
Property and equipment, net | $ 13,380 | $ 12,176 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 4,103 | $ 2,568 | $ 1,948 |
SCHEDULE OF INTANGIBLE ASSETS N
SCHEDULE OF INTANGIBLE ASSETS NET (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Computer software and applications | [1] | $ 939,753 | |
Content assets- licensed movies and television series | [2] | 108,678 | |
Less: accumulated amortization | (144,663) | ||
Intangible asset, net | $ 903,768 | ||
[1]In order to support the Company’s expansion of its digital advertising service and cash rebate service businesses, in December 2021, the Company purchased packaged computer software and applications from a third-party vendor at the aggregate cost of MYR 2.12 504,222 501,412 2.32 |
SCHEDULE OF INTANGIBLE ASSETS_2
SCHEDULE OF INTANGIBLE ASSETS NET (Details) (Parenthetical) RM in Thousands | 1 Months Ended | 4 Months Ended | ||
Dec. 31, 2021 USD ($) | Dec. 31, 2021 MYR (RM) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 MYR (RM) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Computer software and application | $ 504,222 | RM 2,120 | $ 501,412 | RM 2,320 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | 24 Months Ended | |||
Nov. 01, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Jul. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization intangible assets | $ 157,164 | |||||
Flat fee | $ 10,000 | |||||
License costs | $ 30,000 | |||||
Service And Licensing Agreement [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Content and service fee | $ 120,000 | |||||
Service And Licensing Agreement [Member] | Minimum [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Content delivery fees | 1,700 | |||||
Service And Licensing Agreement [Member] | Maximum [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Content delivery fees | $ 660,000 | |||||
Licensing Agreement [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization intangible assets | 55,000 | |||||
Dooya Media Group [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Flat fee | 2,500 | |||||
Super Runway Inc [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Flat fee | $ 2,500 | |||||
Computer Equipment [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization intangible assets | $ 102,164 |
SCHEDULE OF INCOME TAX PROVISIO
SCHEDULE OF INCOME TAX PROVISION (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Subtotal | $ 724,508 | $ 14,991 | |
Total income tax provision | $ 1,407,449 | 692,405 | 14,991 |
CAYMAN ISLANDS | |||
Subtotal | |||
Total income tax provision | |||
MALAYSIA | |||
Subtotal | 1,407,449 | 724,508 | 14,991 |
Total income tax provision | $ (32,103) |
SCHEDULE OF EFFECTIVE INCOME TA
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision computed based on Malaysia unified income tax statutory rate | $ 1,410,066 | $ 566,514 | $ (45,639) |
Effect of tax exemption due to reduced income tax rate for small and medium sized companies | (10,183) | 13,311 | |
Permanent difference | 401,286 | 37,329 | 9,353 |
Change in valuation allowance | (403,903) | 98,745 | 37,966 |
Actual income tax provision | $ 1,407,449 | $ 692,405 | $ 14,991 |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Income Tax Disclosure [Abstract] | |||
Deferred tax assets derived from net operating loss carry forwards | $ 35,174 | $ 137,932 | |
Less: valuation allowance | (35,174) | (137,932) | $ (40,949) |
Deferred tax assets |
SCHEDULE OF VALUATION ALLOWANCE
SCHEDULE OF VALUATION ALLOWANCE (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of the year | $ 137,932 | $ 40,949 | |
Current period change | (102,758) | 96,983 | $ 38,502 |
Balance at end of the year | $ 35,174 | $ 137,932 | $ 40,949 |
SCHEDULE OF TAXES PAYABLE (Deta
SCHEDULE OF TAXES PAYABLE (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Income Tax Disclosure [Abstract] | ||
Income tax payable | $ 1,188,274 | $ 683,862 |
Service tax payable | 215,854 | 190,972 |
Total | $ 1,404,128 | $ 874,834 |
TAXES (Details Narrative)
TAXES (Details Narrative) | 12 Months Ended | ||||||
Sep. 30, 2022 USD ($) | Sep. 30, 2022 MYR (RM) | Sep. 30, 2021 USD ($) $ / shares | Sep. 30, 2021 MYR (RM) | Sep. 30, 2020 USD ($) $ / shares | Sep. 30, 2020 MYR (RM) | Sep. 30, 2022 MYR (RM) | |
Paid in capital | $ 18,918,303 | $ 155,024 | |||||
Tax rates and tax exemption | 10,183 | $ (13,311) | |||||
Valuation allowance | 35,174 | 137,932 | 40,949 | ||||
Change in valuation allowance | $ (102,758) | $ 96,983 | $ 38,502 | ||||
MALAYSIA | |||||||
Enterprise income tax rate | 24% | 24% | |||||
Paid in capital | RM | RM 2,500,000 | ||||||
Gross income | RM | RM 50,000,000 | ||||||
Effective income tax rate reconciliation, percent | 17% | 17% | 17% | 17% | |||
Taxable income | $ 150,000 | RM 600,000 | $ 150,000 | RM 600,000 | |||
Tax rates and tax exemption | $ 10,183 | $ (13,311) | |||||
Tax rates and tax exemption per shares | $ / shares | $ 0 | $ 0 |
SCHEDULE OF RELATED PARTIES (De
SCHEDULE OF RELATED PARTIES (Details) | 12 Months Ended |
Sep. 30, 2022 | |
Choo Keam Hui [Member] | |
Related Party Transaction [Line Items] | |
Relationship to the company | The Company’s former director and one of the directors of Starbox Berhad |
Zenapp Sdn Bhd [Member] | |
Related Party Transaction [Line Items] | |
Relationship to the company | An entity controlled by Choo Keam Hui prior to September 20, 2021 |
Bizguide Corporate Service Sdn Bhd [Member] | |
Related Party Transaction [Line Items] | |
Relationship to the company | An entity controlled by Khoo Kien Hoe, the CFO of Starbox Group |
KH Advisory Sdn Bhd [Member] | |
Related Party Transaction [Line Items] | |
Relationship to the company | An entity controlled by Khoo Kien Hoe, the CFO of Starbox Group |
VE Services [Member] | |
Related Party Transaction [Line Items] | |
Relationship to the company | An entity controlled by Choo Teck Hong, one of the Company’s beneficial shareholders, a director of Starbox Berhad, and a sibling of Choo Keam Hui |
SCHEDULE OF DUE FROM A RELATED
SCHEDULE OF DUE FROM A RELATED PARTY (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Related Party Transactions [Abstract] | ||
VE Services | $ 1,473 |
SCHEDULE OF DUE TO RELATED PART
SCHEDULE OF DUE TO RELATED PARTIES (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Related Party Transaction [Line Items] | ||
KH Advisory Sdn Bhd | $ 7,361 | $ 756,478 |
Choo Keam Hui [Member] | ||
Related Party Transaction [Line Items] | ||
KH Advisory Sdn Bhd | 756,478 | |
Bizguide Corporate Service Sdn Bhd [Member] | ||
Related Party Transaction [Line Items] | ||
KH Advisory Sdn Bhd | 1,763 | |
KH Advisory Sdn Bhd [Member] | ||
Related Party Transaction [Line Items] | ||
KH Advisory Sdn Bhd | $ 5,598 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) | 11 Months Ended | 12 Months Ended | ||||||||||||
Aug. 20, 2021 USD ($) | Aug. 20, 2021 MYR (RM) | Aug. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | Mar. 29, 2021 USD ($) | Mar. 29, 2021 MYR (RM) | Feb. 23, 2021 USD ($) | Feb. 23, 2021 MYR (RM) | Oct. 08, 2020 USD ($) | Oct. 08, 2020 MYR (RM) | Sep. 23, 2020 USD ($) | Sep. 23, 2020 MYR (RM) | |
Related Party Transaction [Line Items] | ||||||||||||||
Revenue from a related party | $ 7,194,187 | $ 3,166,228 | $ 153,863 | |||||||||||
Maximum [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Revenue from a related party | 38,000 | |||||||||||||
Minimum [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Revenue from a related party | 2,400 | |||||||||||||
Payment Solution Services Related Party [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Revenue from a related party | $ 9,575 | $ 1,494 | ||||||||||||
Office Lease Agreements [Member] | Zenapp [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Rent expenses | $ 3,850 | $ 4,200 | ||||||||||||
Three Sub Tenancy Agreements [Member] | Zenapp [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Rent expenses | $ 2,424 | RM 10,000 | ||||||||||||
Lease term | lease term from September 1, 2021 to August 31, 2023 | lease term from September 1, 2021 to August 31, 2023 | ||||||||||||
Framework Agreement [Member] | Zenapp [Member] | Maximum [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Cash advance | $ 2,400,000 | RM 10,000,000 | ||||||||||||
Framework Agreement [Member] | Zenapp [Member] | Minimum [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Cash advance | $ 400,000 | RM 1,600,000 | $ 400,000 | RM 1,600,000 | $ 400,000 | RM 1,600,000 |
SHAREHOLDERS_ EQUITY (Details N
SHAREHOLDERS’ EQUITY (Details Narrative) - USD ($) | 12 Months Ended | ||||||||
Aug. 25, 2022 | Jun. 08, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 13, 2021 | ||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Original authorized share capital value | $ 50,000 | ||||||||
Original authorized share | 888,000,000 | 500,000,000 | |||||||
Common stock, shares authorized | 883,000,000 | 883,000,000 | [1] | 883,000,000 | [1] | 450,000,000 | |||
Common stock, par value | $ 0.001125 | $ 0.001125 | [1] | $ 0.001125 | [1] | $ 0.0001 | |||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | [1] | 5,000,000 | [1] | 50,000,000 | |||
Preferred stock, par value | $ 0.001125 | $ 0.001125 | [1] | $ 0.001125 | [1] | $ 0.0001 | |||
Preferred stock, shares not issued | 50,000,000 | ||||||||
Common stock, shares, issued | 45,375,000 | [1] | 40,000,000 | [1] | 450,000,000 | ||||
Reverse stock split | a reverse split of the Company’s outstanding ordinary shares at a ratio of 1-for-11.25 shares, and (iii) a reverse split of the Company’s authorized and unissued preferred shares at a ratio of 1-for-11.25 shares. | 1-for-11.25 | |||||||
Preferred stock, shares issued | [1] | 0 | 0 | ||||||
Preferred stock, shares outstanding | [1] | 0 | 0 | ||||||
Common stock, shares, outstanding | 45,375,000 | [1] | 40,000,000 | [1] | 450,000,000 | ||||
Public offering price | $ 4 | ||||||||
Proceeds from Issuance of Common Stock | $ 18,769,326 | ||||||||
Proceeds from initial public offerings | $ 2,730,674 | ||||||||
Number of ordinary shares percent | 7% | ||||||||
Percentage of initial public offering | 140% | ||||||||
Underwriter Representative Warrants [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Warrants to purchase shares | 350,000 | ||||||||
Warrant term | 5 years | ||||||||
Exercise price | $ 5.60 | ||||||||
IPO [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Stock Issued During Period, Shares, New Issues | 5,375,000 | ||||||||
Public offering price | $ 4 | ||||||||
Proceeds from Issuance of Common Stock | $ 21,500,000 | ||||||||
Proceeds from initial public offerings | 18,800,000 | ||||||||
Proceeds from initial public offerings | $ 2,700,000 | ||||||||
Minimum [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Original authorized share capital value | $ 50,000 | ||||||||
Maximum [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Original authorized share capital value | $ 999,000 | ||||||||
[1]Retrospectively restated for the effect of a 1-for-11.25 |
CONCENTRATIONS AND CREDIT RISK
CONCENTRATIONS AND CREDIT RISK (Details Narrative) - Customer Concentration Risk [Member] | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from Contract with Customer Benchmark [Member] | One Customer [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 21.70% | 91.60% |
Revenue from Contract with Customer Benchmark [Member] | Two Customer [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10.80% | |
Revenue from Contract with Customer Benchmark [Member] | Three Customer [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10.80% | |
Accounts Receivable [Member] | One Customer [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 52.60% | |
Accounts Receivable [Member] | Two Customer [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 26.30% |
SCHEDULE OF SUPPLEMENTAL BALANC
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO OPERATING LEASE (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 | Oct. 01, 2020 |
Leases | |||
Operating lease right-of-use assets | $ 49,145 | $ 312,429 | |
Right-of-use assets - accumulated amortization | (6,571) | (7,165) | |
Right-of-use assets, net | 42,574 | 305,264 | |
Operating lease liabilities – current | 15,833 | 72,362 | |
Operating lease liabilities – non-current | 26,741 | 232,902 | |
Total operating lease liabilities | $ 42,574 | $ 305,264 | $ 300,000 |
SCHEDULE OF WEIGHTED AVERAGE RE
SCHEDULE OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES (Details) | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases | |||
Weighted average remaining lease term | 2 years 6 months | 3 years 11 months 1 day | |
Weighted average discount rate | [1] | 5% | 5% |
[1]The Company’s lease agreements do not provide a readily determinable implicit rate nor is it available to the Company from its lessors. Instead, the Company estimates its incremental borrowing rate based on the benchmark lending rate for three-year loans as published by Malaysia’s central bank in order to discount lease payments to present value. |
SCHEDULE OF THE MATURITIES OF O
SCHEDULE OF THE MATURITIES OF OPERATING LEASE LIABILITIES (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 | Oct. 01, 2020 |
Leases | |||
2023 | $ 17,601 | ||
2024 | 17,601 | ||
2025 | 10,268 | ||
Total future minimum lease payments | 45,470 | ||
Less: imputed interest | 2,896 | ||
Total operating lease liabilities | $ 42,574 | $ 305,264 | $ 300,000 |
LEASES (Details Narrative)
LEASES (Details Narrative) | 11 Months Ended | 12 Months Ended | |||||||
Apr. 30, 2022 USD ($) | Apr. 30, 2022 MYR (RM) | Aug. 20, 2021 USD ($) ft² | Aug. 20, 2021 MYR (RM) ft² | Aug. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | Oct. 01, 2020 USD ($) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Operating lease liability | $ 42,574 | $ 305,264 | $ 300,000 | ||||||
Operating Lease, Cost | $ 56,690 | $ 7,274 | |||||||
Office Lease Agreements [Member] | Zenapp [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Payments for Rent | $ 3,850 | $ 4,200 | |||||||
Three Sub Tenancy Agreements [Member] | Zenapp [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Payments for Rent | $ 2,424 | RM 10,000 | |||||||
Area of Land | ft² | 4,800 | 4,800 | |||||||
Lessee, Operating Lease, Description | lease term from September 1, 2021 to August 31, 2023 | lease term from September 1, 2021 to August 31, 2023 | |||||||
Three Sub Tenancy Agreement [Member] | Zenapp [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Lessee, Operating Lease, Description | lease term from September 1, 2021 to August 31, 2023 | lease term from September 1, 2021 to August 31, 2023 | |||||||
Lease Agreement [Member] | Woon Chun Yin [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Payments for Rent | $ 1,580 | RM 6,800 | |||||||
Lessee, Operating Lease, Description | term of one year from May 1, 2022 to April 30, 2023 | term of one year from May 1, 2022 to April 30, 2023 | |||||||
Lease Agreement [Member] | Berjaya Steel Works Snd Bhd [Member] | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Payments for Rent | $ 1,460 | RM 6,288 |
SCHEDULE OF SUMMARY INFORMATION
SCHEDULE OF SUMMARY INFORMATION BY SEGMENT (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Total operating revenue | $ 7,194,187 | $ 3,166,228 | $ 153,863 |
Operating costs | 2,243,750 | 1,026,339 | 344,026 |
Income (loss) from operations | 4,950,437 | 2,139,889 | (190,163) |
Income tax expense | 1,407,449 | 692,405 | 14,991 |
Net income (loss) | 3,602,365 | 1,447,650 | (205,154) |
Capital expenditure | 1,135,929 | 5,203 | 8,198 |
Total assets | 25,042,418 | 4,015,135 | 663,901 |
Cash Rebate Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Total operating revenue | 10,562 | 6,214 | 718 |
Operating costs | 654,687 | 387,537 | 237,579 |
Income (loss) from operations | (671,052) | (381,323) | (236,861) |
Income tax expense | 609,983 | ||
Net income (loss) | (1,280,751) | (381,157) | (236,861) |
Capital expenditure | 1,527 | ||
Total assets | 11,862,705 | 162,355 | 367,883 |
Digital Advertising Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Total operating revenue | 7,174,050 | 3,158,520 | 153,145 |
Operating costs | 1,714,759 | 581,813 | 106,447 |
Income (loss) from operations | 5,742,132 | 2,576,707 | 46,698 |
Income tax expense | 797,462 | 692,405 | 14,991 |
Net income (loss) | 5,003,684 | 1,884,302 | 31,707 |
Capital expenditure | 398,421 | 5,203 | 8,198 |
Total assets | 12,873,793 | 3,716,568 | 296,018 |
Payment Solution Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Total operating revenue | 9,575 | 1,494 | |
Operating costs | 130,480 | 56,989 | |
Income (loss) from operations | (120,642) | (55,495) | |
Income tax expense | 4 | ||
Net income (loss) | (120,568) | (55,495) | |
Capital expenditure | 735,981 | ||
Total assets | $ 305,919 | $ 136,212 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) $ / shares in Units, RM in Thousands | Nov. 03, 2022 USD ($) $ / shares shares | Oct. 26, 2022 $ / shares shares | Oct. 31, 2022 USD ($) | Oct. 31, 2022 MYR (RM) | Sep. 30, 2022 USD ($) $ / shares | Aug. 01, 2022 USD ($) | Aug. 01, 2022 MYR (RM) | Sep. 30, 2021 USD ($) |
Subsequent Event [Line Items] | ||||||||
Share price | $ / shares | $ 4 | |||||||
Prepaid Expense | $ 4,269,611 | |||||||
ARX Media Sdn Bhd [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Contract price | $ 2,900,000 | RM 13,500 | ||||||
Subsequent Event [Member] | ARX Media Sdn Bhd [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Contract price | $ 47,200,000 | RM 218,750 | ||||||
Prepaid Expense | 23,800,000 | RM 105,000 | ||||||
Deposits | $ 23,800,000 | |||||||
Subscription Agreements [Member] | Four Investors [Member] | Private Placement [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Aggregate share purchase | shares | 9,000,000 | 9,000,000 | ||||||
Share price | $ / shares | $ 1.40 | $ 1.40 | ||||||
Gross proceeds from private placement | $ 12,600,000 | |||||||
Net proceeds from private placement | $ 11,920,000 |