Cover
Cover - shares | 6 Months Ended | |
Mar. 31, 2024 | May 13, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --09-30 | |
Entity File Number | 001-41882 | |
Entity Registrant Name | INNO HOLDINGS INC. | |
Entity Central Index Key | 0001961847 | |
Entity Tax Identification Number | 87-4294543 | |
Entity Incorporation, State or Country Code | TX | |
Entity Address, Address Line One | 2465 Farm Market 359 South | |
Entity Address, City or Town | Brookshire | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77423 | |
City Area Code | (800) | |
Local Phone Number | 909-8800 | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | INHD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,751,726 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2024 | Sep. 30, 2023 |
Current assets | ||
Cash and cash equivalent | $ 4,045,442 | $ 4,898 |
Accounts receivable, net | 70,435 | |
Inventories | 360,853 | 394,293 |
Deferred offering costs | 538,765 | |
Prepayments and other current assets | 963,841 | 180,467 |
Total current assets | 5,370,136 | 1,188,858 |
Non-current assets | ||
ROU assets | 691,030 | 437,770 |
Property and equipment, net | 1,071,329 | 869,584 |
Other non-current assets | 9,851 | 49,550 |
Total non-current assets | 1,772,210 | 1,356,904 |
Total assets | 7,142,346 | 2,545,762 |
Current liabilities | ||
Unearned revenue | 639,810 | 1,137,828 |
Other payables and accrued liabilities | 442,285 | 92,164 |
Short-term loan payable | 50,000 | 790,000 |
Lease liability – current | 665,502 | 212,277 |
Long-term notes payable – current portion | 50,684 | 49,393 |
Total current liabilities | 2,969,809 | 4,102,685 |
Non-current liabilities | ||
Notes payable | 85,150 | 110,846 |
Lease liability – non-current | 21,915 | 275,817 |
Total non-current liabilities | 107,065 | 386,663 |
Total liabilities | 3,076,874 | 4,489,348 |
Commitments and contingency | ||
Stockholders’ Equity (Deficit) | ||
Common stock, no par value; 100,000,000 shares authorized; 20,751,726 and 18,251,726 shares issued and outstanding on March 31, 2024 and September 30, 2023 | ||
Additional paid in capital | 10,676,534 | 2,830,000 |
Accumulated deficit | (6,386,790) | (4,524,815) |
Non-controlling interest | (224,272) | (248,771) |
Total equity (deficit) | 4,065,472 | (1,943,586) |
Total liabilities and equity (deficit) | 7,142,346 | 2,545,762 |
Nonrelated Party [Member] | ||
Current liabilities | ||
Accounts payable | 837,039 | 781,056 |
Related Party [Member] | ||
Current liabilities | ||
Accounts payable | 14,489 | 535,595 |
Other payables | $ 270,000 | $ 504,372 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jul. 24, 2023 | Mar. 31, 2024 | Sep. 30, 2023 | Jul. 23, 2023 | Sep. 08, 2021 |
Statement of Financial Position [Abstract] | |||||
Common stock, no par value | $ 0 | $ 0 | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 200,000,000 | 200,000,000 |
Common stock, shares issued | 20,751,726 | 18,251,726 | |||
Common stock, shares outstanding | 20,751,726 | 18,251,726 | |||
Stockholders' Equity, Reverse Stock Split | the Company effected a reverse stock split (the “Reverse Stock Split”) of the Company’s issued and outstanding shares of the Common Stock at a split ratio of 1-for-2 such that every holder of Common Stock of the Company shall receive one share of common stock for every two shares of Common Stock held and to reduce the number of authorized shares of Common Stock from |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||||
REVENUES | $ 183,196 | $ 88,613 | $ 349,813 | $ 397,614 |
COSTS AND EXPENSES: | ||||
Costs of materials and labor | 208,991 | 85,012 | 378,608 | 368,824 |
Selling, general and administrative expenses (exclusive of expenses shown separately below) | 1,102,198 | 557,351 | 1,887,734 | 1,019,452 |
Impairment loss | 23,911 | 23,911 | ||
Depreciation | 22,263 | 17,764 | 43,323 | 32,783 |
Bad debt expense | 59,935 | 59,935 | 400,600 | |
Total costs and expenses | 1,417,298 | 660,127 | 2,393,511 | 1,821,659 |
LOSS FROM OPERATIONS | (1,234,102) | (571,514) | (2,043,698) | (1,424,045) |
OTHER INCOME (EXPENSE) | ||||
Interest income (expenses), net | 58,168 | (16,090) | 51,539 | (35,078) |
Other non-operating income (expense), net | 82,007 | (1,291) | 81,768 | (800) |
Total other income (expenses), net | 140,175 | (17,381) | 133,307 | (35,878) |
LOSS BEFORE INCOME TAXES | (1,093,927) | (588,895) | (1,910,391) | (1,459,923) |
PROVISION FOR INCOME TAXES | 800 | |||
NET LOSS | (1,093,927) | (588,895) | (1,911,191) | (1,459,923) |
Non-controlling interest | (33,470) | (32,514) | (49,216) | (62,537) |
NET LOSS ATTRIBUTABLE TO INNO HOLDINGS INC. | $ (1,060,457) | $ (556,381) | $ (1,861,975) | $ (1,397,386) |
WEIGHTED AVERAGE NUMBER OF COMMON STOCK | ||||
Basic | 20,751,726 | 18,133,017 | 19,672,491 | 18,072,591 |
Diluted | 20,751,726 | 18,133,017 | 19,672,491 | 18,072,591 |
LOSSES PER SHARE | ||||
Basic | $ (0.05) | $ (0.03) | $ (0.09) | $ (0.08) |
Diluted | $ (0.05) | $ (0.03) | $ (0.09) | $ (0.08) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - shares | Mar. 31, 2024 | Sep. 30, 2023 | Jul. 24, 2023 | Jul. 23, 2023 | Sep. 08, 2021 |
Income Statement [Abstract] | |||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 200,000,000 | 200,000,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Subscription Receivable [Member] | Total | ||
Balance at Sep. 30, 2022 | [1],[2] | $ 1,805,000 | $ (629,037) | $ (121,345) | $ 1,054,618 | |||
Balance, shares at Sep. 30, 2022 | [1],[2] | 17,970,000 | ||||||
Net loss | [1],[2] | (841,005) | (30,023) | (871,028) | ||||
Shares issued for cash | [1],[2] | 500,000 | (500,000) | |||||
Shares issued for cash, shares | [1],[2] | 142,857 | ||||||
Balance at Dec. 31, 2022 | [1],[2] | 2,305,000 | (1,470,042) | (151,368) | (500,000) | 183,590 | ||
Balance, shares at Dec. 31, 2022 | [1],[2] | 18,112,857 | ||||||
Balance at Sep. 30, 2022 | [1],[2] | 1,805,000 | (629,037) | (121,345) | 1,054,618 | |||
Balance, shares at Sep. 30, 2022 | [1],[2] | 17,970,000 | ||||||
Net loss | (1,459,923) | |||||||
Balance at Mar. 31, 2023 | [1],[2] | 2,705,000 | (2,026,423) | (183,882) | 494,695 | |||
Balance, shares at Mar. 31, 2023 | [1],[2] | 18,218,832 | ||||||
Balance at Dec. 31, 2022 | [1],[2] | 2,305,000 | (1,470,042) | (151,368) | (500,000) | 183,590 | ||
Balance, shares at Dec. 31, 2022 | [1],[2] | 18,112,857 | ||||||
Net loss | [1],[2] | (556,381) | (32,514) | (588,895) | ||||
Shares issued for cash | [1],[2] | 400,000 | 500,000 | 900,000 | ||||
Shares issued for cash, shares | [1],[2] | 105,975 | ||||||
Balance at Mar. 31, 2023 | [1],[2] | 2,705,000 | (2,026,423) | (183,882) | 494,695 | |||
Balance, shares at Mar. 31, 2023 | [1],[2] | 18,218,832 | ||||||
Balance at Sep. 30, 2023 | [1],[2] | 2,830,000 | (4,524,815) | (248,771) | (1,943,586) | |||
Balance, shares at Sep. 30, 2023 | [1],[2] | 18,251,726 | ||||||
Net loss | (801,518) | (15,746) | (817,264) | |||||
Shares issued upon IPO completion | [1],[2] | 7,859,534 | 7,859,534 | |||||
Shares issued upon IPO completion, shares | [1],[2] | 2,500,000 | ||||||
Balance at Dec. 31, 2023 | [1],[2] | 10,689,534 | (5,326,333) | (264,517) | 5,098,684 | |||
Balance, shares at Dec. 31, 2023 | [1],[2] | 20,751,726 | ||||||
Balance at Sep. 30, 2023 | [1],[2] | 2,830,000 | (4,524,815) | (248,771) | (1,943,586) | |||
Balance, shares at Sep. 30, 2023 | [1],[2] | 18,251,726 | ||||||
Net loss | (1,911,191) | |||||||
Balance at Mar. 31, 2024 | [1],[2] | 10,676,534 | (6,386,790) | (224,272) | 4,065,472 | |||
Balance, shares at Mar. 31, 2024 | [1],[2] | 20,751,726 | ||||||
Balance at Dec. 31, 2023 | [1],[2] | 10,689,534 | (5,326,333) | (264,517) | 5,098,684 | |||
Balance, shares at Dec. 31, 2023 | [1],[2] | 20,751,726 | ||||||
Net loss | [1],[2] | (1,060,457) | (33,470) | (1,093,927) | ||||
Disposal of subsidiary | [1],[2] | 73,715 | 73,715 | |||||
Warrants assumption | [1],[2] | (13,000) | (13,000) | |||||
Balance at Mar. 31, 2024 | [1],[2] | $ 10,676,534 | $ (6,386,790) | $ (224,272) | $ 4,065,472 | |||
Balance, shares at Mar. 31, 2024 | [1],[2] | 20,751,726 | ||||||
[1]On January 21, 2022, the sole owner of the Company and Inno Metal Studs Corp. (“IMSC”), Mr. Dekui Liu, entered into an agreement to sell 100% 15,170,000 200,000,000 100,000,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) | Jan. 21, 2022 USD ($) |
Mr Dekui Liu [Member] | |
Sale of stock, percentage of ownership | 100% |
Shares issued | $ 15,170,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (1,911,191) | $ (1,459,923) |
Adjustments to reconcile net income to cash used in operating activities: | ||
Depreciation expense | 43,323 | 32,783 |
Stock-based compensation expense | 62,500 | |
Non-cash operating lease expense | 103,481 | 56,238 |
Bad debt expense | 59,935 | 400,600 |
Fixed assets disposal loss | 250 | |
Subsidiary disposal loss | 23,715 | |
Impairment loss | 23,911 | |
Change in operating assets and liabilities | ||
Accounts receivable | 10,500 | 468,895 |
Inventories | 33,440 | (402,423) |
Deferred offering costs | (51,701) | (216,193) |
Prepayments and other current assets | (845,874) | 118,662 |
Accounts payable | 40,442 | 176,292 |
Accounts payable – related party | (471,106) | |
Unearned revenue | (498,018) | 228,103 |
Operating lease liabilities | (102,178) | (53,767) |
Other payables and accrued liabilities | 350,121 | (20,733) |
Other non-current liabilities | (2,457) | |
Net cash used in operating activities | (3,128,450) | (673,923) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Fixed assets additions | (270,798) | (226,899) |
Proceed from fixed assets disposal | 1,569 | |
Net cash used in investing activities | (269,229) | (226,899) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from related parties | 91,000 | 134,767 |
Payments to related parties | (325,372) | |
Repayments to short-term loans | (740,000) | |
Repayments to long-term note | (24,405) | (19,280) |
Payment made to retire warrants | (13,000) | |
Cash proceeds from IPO | 8,450,000 | 900,000 |
Net cash provided by financing activities | 7,438,223 | 1,015,487 |
CHANGES IN CASH AND CASH EQUIVALENT | 4,040,544 | 114,665 |
CASH AND CASH EQUIVALENT, beginning of period | 4,898 | 50,628 |
CASH AND CASH EQUIVALENT, ending of period | 4,045,442 | 165,293 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for income tax | 800 | |
Cash paid for interest | 20,223 | 35,078 |
Noncash investing and financing activities: | ||
Deferred offering costs offset to APIC upon IPO completion | 590,466 | |
Right-of-use assets obtained in exchange for operating lease liabilities | 356,741 | |
Deposit applied to lease liability | $ 39,699 |
Nature of business and organiza
Nature of business and organization | 6 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of business and organization | Note 1 — Nature of business and organization INNO HOLDINGS, INC., a Texas corporation (the “Company”), was incorporated on September 8, 2021. The Company is principally engaged in the marketing and sale of construction products along with full-scope construction services in the US. On January 18, 2022, the Company formed a limited liability company, Castor Building Tech LLC (“CBT”), in California. The Company owned 53% 55% Effective as of January 21, 2022, the Company acquired 100% 15,170,000 100% 100% Inno Research Institute LLC (“IRI”), a Texas limited liability company was formed on September 8, 2021, is a 65% 23,715 On January 21, 2024, the Company incorporated Inno Disrupts Inc., a wholly owned subsidiary in Texas. The purpose of Inno Disrupts Inc. is to remodel buildings using the Company’s framing steel products, enhance producing and marketing capabilities, manage the designated buildings in US, and other activities. On February 11, 2024, the Company formed Inno AI Tech Corp., a wholly owned entity in Texas to conduct AI tech research and consulting activities. |
Basis of Presentation and Summa
Basis of Presentation and Summary of significant accounting policies | 6 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of significant accounting policies | Note 2 — Basis of Presentation and Summary of significant accounting policies Basis of presentation The accompanying financial statements have been prepared in accordance with the generally accepted accounting principles in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). The Company’s fiscal year end date is September 30. Certain information and footnote disclosures normally included in the Company’s annual audited financial statements and accompanying notes have been condensed or omitted in this accompanying interim consolidated financial statements and footnotes. Accordingly, the accompanying interim condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2023, filed with the Securities and Exchange Commission (“SEC”) on January 16, 2024. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments and accruals, consisting only of normal, recurring adjustments that are necessary for a fair statement of the results of all interim periods reported herein. The results of the interim periods are not necessarily indicative of the results expected for the full fiscal year or any other interim period or any future year or period. Consolidated Principles of consolidation The Consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company balances and transactions have been eliminated. Use of estimates and assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities reported and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. Cash and cash equivalents Cash and cash equivalents consist of amounts held as cash on hand, bank and money market deposits, and marketable securities with maturities of less than 90 days. From time to time, the Company may maintain bank balances in interest bearing accounts in excess of the $ 250,000 INNO HOLDINGS INC. AND SUBSIDIARIES Note 2 — Basis of Presentation and Summary of significant accounting policies Accounts receivable During the ordinary course of business, the Company extends unsecured credit to its customers. Accounts receivable are stated at the amount the Company expects to collect from customers. Management reviews its accounts receivable balances each reporting period to determine if an allowance for credit loss is required. In October 2020, the Company adopted ASU 2016-13, Topics 326 — Credit Loss, Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology, for its accounting standard for its trade accounts receivable. The Company continuously monitors the recoverability of accounts receivable. If there are any indicators that a customer may not make payment, the Company may consider making provision for non-collectability for that particular customer. At the same time, the Company may cease further sales or services to such customer. The following are some of the factors that the Company develops allowance for credit losses: ● the customer fails to comply with its payment schedule; ● the customer is in serious financial difficulty; ● a significant dispute with the customer has occurred regarding job progress or other matters; ● the customer breaches any of its contractual obligations; ● the customer appears to be financially distressed due to economic or legal factors; ● the business between the customer and the Company is not active; and ● other objective evidence indicates non-collectability of the accounts receivable. The adoption of the credit loss accounting standard has no material impact on the Company’s consolidated financial statements. Accounts receivable are recognized and carried at carrying amount less an allowance for credit losses, if any. The Company maintains an allowance for credit losses resulting from the inability of its customers to make required payments based on contractual terms. The Company reviews the collectability of its receivables on a regular and ongoing basis. The Company has also included in the calculation of allowance for credit losses based on its customers’ businesses and their ability to pay their accounts receivable. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. The Company also considers external factors to the specific customer, including current conditions and forecasts of economic conditions. In the event we recover amounts previously reserved, we will reduce the specific allowance for credit losses. Fair values of financial instruments ASC 825, “Disclosures about Fair Value of Financial Instruments,” requires disclosure of fair value information about financial instruments. ASC 820, “Fair Value Measurements” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and all other current assets and liabilities are approximate fair values due to their short-term nature. INNO HOLDINGS INC. AND SUBSIDIARIES Note 2 — Basis of Presentation and Summary of significant accounting policies For other financial instruments to be reported at fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines the fair value of its financial instruments based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: Level 1 — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2 — Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level 3 — Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data. As of March 31, 2024, the Company hold $ 1,989,616 March 25, 2024 May 15, 2024 1,062 Revenue recognition The Company has adopted Accounting Standards Codification (“ASC”) 606 since its inception and recognizes revenue from product and service sales revenues, net of promotional discounts and return allowances, if any, when the following revenue recognition criteria are met: a contract has been identified, separate performance obligations are identified, the transaction price is determined, the transaction price is allocated to separate performance obligations and revenue is recognized upon satisfying each performance obligation. The Company transfers the risk of loss or damage upon delivery, therefore, revenue from product sales is recognized when it is delivered to the customer. For services, all sales are recognized upon completion based on terms stated in the sales agreements. The Company evaluates the criteria of ASC 606 — Revenue Recognition Principal Agent Considerations in determining whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as commissions. Generally, when the Company is primarily responsible for fulfilling the promise to provide a specified good or service, the Company is subject to inventory risk before the good or service has been transferred to a customer and the Company has discretion in establishing the price, revenue is recorded at gross. Payments received prior to the delivery of goods to customers are recorded as unearned revenue. Sales discounts are recorded in the period in which the related sale is recognized. Sales return allowances are estimated based on historical amounts and are recorded upon recognizing the related sales. Shipping and handling costs are recorded as selling expenses. Costs and expenses Costs and expenses are operating expenses, which consist of costs of material and labor, selling, general and administrative expenses, and depreciation, are expensed as incurred. Inventory Inventory consists of material and finished goods ready for sale and is stated at the lower of cost or net realizable value. The Company values its inventory using the FIFO costing method. The Company’s policy is to include as a part of cost of goods sold any freight incurred to ship the product from its vendors to warehouses. Outbound freight costs related to shipping costs to customers are considered periodic costs and are reflected in selling expenses. The Company regularly reviews inventory and considers forecasts of future demand, market conditions and product obsolescence. INNO HOLDINGS INC. AND SUBSIDIARIES Note 2 — Basis of Presentation and Summary of significant accounting policies If the estimated realizable value of the inventory is less than cost, the Company makes provisions in order to reduce its carrying value to its estimated net realizable value. The Company regularly assesses its inventory for obsolescence and records an allowance only when the inventory is no longer suitable for reproduction. The Company’s inventory generally has a long life cycle and does not become obsolete quickly. Deferred offering costs The Company capitalizes certain legal, accounting and other third-party fees that are directly related to an equity financing that is probable of successful completion until such financing is consummated. After consummation of an equity financing, these costs are recorded as a reduction of the proceeds received as a result of the financing. Should a planned equity financing be abandoned, terminated or significantly delayed, the deferred offering costs are immediately written off to operating expenses in the consolidated statements of operations in the period of determination. Property and equipment Property and equipment is stated at their historical cost, less accumulated depreciation. Depreciation on property and equipment is provided using the straight-line method over the estimated useful lives of the assets as follows: Schedule of Depreciation on Property and Equipment Machinery and equipment 7 Office equipment 5 Motor vehicles 5 Leasehold improvements the shorter of the lease term or the estimated useful life of the improvements Expenditures for renewals and betterments are capitalized while repairs and maintenance costs are normally charged to the statement of operations in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. Upon sale or disposal of an asset, the historical cost and related accumulated depreciation or amortization of such asset were removed from their respective accounts and any gain or loss is recorded in the statements of income. The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, the Company recorded $ 23,911 No Leases On its inception date, the Company adopted ASC 842 — Leases (“ASC 842”), which requires lessees to record right-of-use (“ROU”) assets and related lease obligations on the balance sheet, as well as disclose key information regarding leasing arrangements. ROU assets represent our right to use an underlying asset for the lease terms and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. INNO HOLDINGS INC. AND SUBSIDIARIES Note 2 — Basis of Presentation and Summary of significant accounting policies Stock-based Compensation The Company applies ASC No. 718, “Compensation-Stock Compensation,” which requires that share-based payment transactions with employees and nonemployees upon adoption of ASU 2018-07, be measured based on the grant date fair value of the equity instrument and recognized as compensation expense over the requisite service period, with a corresponding addition to equity. Under this method, compensation cost related to employee share options or similar equity instruments is measured at the grant date based on the fair value of the award and is recognized over the period during which an employee is required to provide service in exchange for the award, which generally is the vesting period. In addition to the requisite service period, the Company also evaluates the performance condition and market condition under ASC 718-10-20. For an award which contains both a performance and a market condition, and where both conditions must be satisfied for the award to vest, the market condition is incorporated into the fair value of the award, and that fair value is recognized over the employee’s requisite service period or nonemployee’s vesting period if it is probable the performance condition will be met. If the performance condition is ultimately not met, compensation cost related to the award should not be recognized (or should be reversed) because the vesting condition in the award has not been satisfied. The Company will recognize forfeitures of such equity-based compensation as they occur. Income taxes The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their perspective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the 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 that includes the enactment date. Valuation allowances are recorded, when necessary, to reduce deferred tax assets to the amount expected to be realized. As a result of the implementation of certain provisions of ASC 740, Income Taxes (“ASC 740”), which clarifies the accounting and disclosure for uncertainty in tax position, as defined, ASC 740 seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to accounting for income taxes. The Company has adopted the provisions of ASC 740 since inception and has analyzed filing positions in each of the federal and state jurisdictions where the Company is required to file income tax returns, as well as open tax years in such jurisdictions. The Company has identified the U.S. federal jurisdiction, and the states of Texas and California, as its “major” tax jurisdictions. However, the Company has certain tax attribute carryforwards which will remain subject to review and adjustment by the relevant tax authorities until the statute of limitations closes with respect to the year in which such attributes are utilized. The Company believes that its income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to its financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. The Company’s policy for recording interest and penalties associated with income-based tax audits is to record such items as a component of income taxes. Commitments and contingencies In the ordinary course of business, the Company is subject to certain contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes its liability for such contingency if it determines it is probable that a loss has occurred and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments including historical and specific facts and circumstances of each matter. INNO HOLDINGS INC. AND SUBSIDIARIES Note 2 — Basis of Presentation and Summary of significant accounting policies Earnings per share Basic earnings per share are computed by dividing net income attributable to holders of common stock by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share reflect the potential dilution that could occur if securities to issue common stock were exercised. Recently issued but not yet adopted accounting pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. The new guidance requires enhanced disclosures about income tax expenses. The Company is required to adopt this guidance in the first quarter of the fiscal year 2026. Early adoption is permitted on a prospective basis. We are currently evaluating the impact of this ASU on our annual income tax disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The new guidance requires enhanced disclosures about significant segment expenses. The Company is required to adopt this guidance for its annual reporting in fiscal year 2025 and for interim period reporting beginning the first quarter of fiscal year 2026 on a retrospective basis. Early adoption is permitted. We are currently evaluating the impact of this ASU on our segment disclosures. In June 2022, FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in this ASU clarify the guidance in ASC 820 on the fair value measurement of an equity security that is subject to a contractual sale restriction and require specific disclosures related to such an equity security. This standard is effective for fiscal years beginning after December 15, 2024. The Company does not expect the adoption of this standard to have a material impact on the consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606) as if the entity had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2023, with early application permitted. The Company does not expect the adoption of this standard to have a material impact on the consolidated financial statements. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. INNO HOLDINGS INC. AND SUBSIDIARIES Note 2 — Basis of Presentation and Summary of significant accounting policies Subsequent events The Company evaluated subsequent events and transactions that occurred after the balance sheet date through the date that the consolidated financial statements are available to be issued. Material subsequent events that required recognition or additional disclosure in the consolidated financial statements are presented. Except for these events disclosed in Note 13, Commitments and Contingencies, no other material subsequent events were noted. |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Mar. 31, 2024 | |
Credit Loss [Abstract] | |
Accounts Receivable, Net | Note 3 — Accounts Receivable, Net Accounts receivable for the Company consisted of the following as of the dates indicated below: Schedule of Accounts Receivable March 31, 2024 September 30, 2023 Accounts receivable $ 867,360 $ 1,338,395 Less: allowance for credit losses (867,360 ) (1,267,960 ) Accounts receivable, net $ - $ 70,435 The Company wrote off the allowance for credit losses subsequent to exhaustive efforts to recover the receivable, which typically occurs within a 12-month period following the initial reservation for the allowance. A summary of the activities in the allowance for expected credit losses for the six months ended March 31,2024 and 2023 is as follows: Schedule of Activities in the Allowance for Expected Credit Losses March 31, 2024 (unaudited) March 31, 2023 (unaudited) Allowance for credit losses, beginning $ 1,267,960 $ - Add/ (Deduct): Provision for credit loss 59,935 400,600 Write-offs (460,535 ) - Allowance for credit losses, end $ 867,360 $ 400,600 The Company recorded credit losses of $ 59,935 for the three months and six months ended March 31, 2024. The Company recorded credit losses of $ Nil and $ 400,600 for the three months and six months ended March 31, 2023, respectively. |
Inventories
Inventories | 6 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4 — Inventories As of March 31, 2024 and September 30, 2023, inventories consisted of the following: Schedule of Inventories March 31, 2024 September 30, 2023 Raw material $ 84,597 $ 134,299 Production inventory 276,256 259,994 Total $ 360,853 $ 394,293 As of March 31, 2024 and September 30, 2023, there was no |
Deferred offering costs
Deferred offering costs | 6 Months Ended |
Mar. 31, 2024 | |
Deferred Offering Costs | |
Deferred offering costs | Note 5 — Deferred offering costs Deferred offering costs consisted of fees and expenses incurred in connection with the sale of the Company’s common stock in the IPO, including the legal, accounting, printing and other offering related costs. Upon completion of the IPO, these deferred offering costs are to be reclassified from current assets to stockholders’ equity and recorded against the net proceeds from the offering. As of March 31, 2024 and September 30, 2023, deferred offering costs amounted to $ Nil 538,765 |
Prepayments and other current a
Prepayments and other current assets | 6 Months Ended |
Mar. 31, 2024 | |
Prepayments And Other Current Assets | |
Prepayments and other current assets | Note 6 — Prepayments and other current assets As of March 31, 2024 and September 30, 2023, prepayments and other current assets consisted of the following: Schedule of Prepayments and Other Current Assets March 31, 2024 September 30, 2023 Short term deposit for building acquisition $ 440,000 $ - Prepaid marketing and promotional services 272,815 - Advance to suppliers 25,127 87,217 Prepaid insurance 125,918 3,663 Prepaid for services by stock grants 20,833 83,333 Other prepayments and current assets 79,148 6,254 Total $ 963,841 $ 180,467 As disclosed in Note 13, $ 440,000 INNO HOLDINGS INC. AND SUBSIDIARIES |
Property and equipment, net
Property and equipment, net | 6 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Note 7 — Property and equipment, net As of March 31, 2024 and September 30, 2023, property and equipment consisted of the following: Schedule of Property and Equipment March 31, 2024 (unaudited) September 30, Machinery and equipment $ 346,900 $ 346,900 Office equipment 3,064 5,488 Motor vehicles 139,837 64,082 Construction-in-progress 692,042 497,000 Leasehold improvements 18,000 54,049 Total 1,199,843 967,519 Property and equipment, gross 1,199,843 967,519 Less: accumulated depreciation (128,514 ) (97,935 ) Property and equipment, net $ 1,071,329 $ 869,584 The Construction-in-progress is related to the project to expand the Company’s operation and manufacturing capabilities in the factory in Texas. In connection with the termination of the lease in Corona, CA as disclosed in Note 13, the Company recorded $ 23,911 For the three months ended March 31, 2024 and 2023, depreciation expenses amounted to $ 22,263 17,764 43,323 32,783 |
Other payables and accrued liab
Other payables and accrued liabilities | 6 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Other payables and accrued liabilities | Note 8 – Other payables and accrued liabilities As of March 31, 2024 and September 30, 2023, Other payables and accrued liabilities consisted of the following: Schedule of Other Payables and Accrued Liabilities March 31, 2024 (unaudited) September 30, 2024 Refundable to customers due to project termination $ 304,000 $ - Accrued payroll 104,289 - Other payable 33,996 92,164 Total $ 442,285 $ 92,164 |
Loans payable
Loans payable | 6 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Loans payable | Note 9 — Loans payable Short-term loans Revolving line of credit On September 16, 2022, the Company entered into an agreement with Origin Bank for a revolving line of credit (the “Line of Credit”) of up to $ 1,000,000 1.0 2,585 14,200 15,881 29,462 Nil 560,000 Short term loan without interest From June 2023 to August 2023, the Company borrowed short-term loans due on demand without interest, amounting to $ 230,000 180,000 50,000 230,000 Long-term loan Promissory note payable On October 28, 2021, the Company issued to BancorpSouth Bank a five-year unsecured 4.75 4,661 248,500 1,709 1,564 3,796 4,025 As of March 31, 2024 and September 30, 2023, the total outstanding balance of the Note was $ 135,834 160,239 50,684 49,393 85,150 110,846 |
Related party transactions
Related party transactions | 6 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related party transactions | Note 10 — Related party transactions The Company borrows short term loans without interest from its majority shareholder and CEO, Mr. Dekui Liu, for operation and cashflow needs from time to time. As of March 31, 2024, the amount due to Mr. Liu was $ 2,000 327,372 INNO HOLDINGS INC. AND SUBSIDIARIES Note 10 — Related party transactions The Company engaged Yunited Assets LLC (“Yunited”), a limited liability company owned by Mr. Cheng Yu, the minority owner of the Company’s subsidiary, Inno Research Institute, for consultation services on a project-by-project basis. During the three and six months ended March 31, 2024, the Company recorded $ Nil 3,100 10,000 20,000 Nil 50,000 During the year ended September 30, 2022, the Company purchased prefab home and other material and supplies from Baicheng Trading LLC (“Baicheng”), in which the father of Mr. Dekui Liu, the Company’s majority shareholder and CEO, is a director. During the three and six months ended March 31, 2024, Baicheng further provided the renovation designing services for the buildings with a fee of $ 52,000 the company did not engage in any transactions with Baicheng. 14,489 485,595 In March 2023, the Company entered into an agreement with Vision Opportunity Fund LP, a Florida limited partnership partially owned by a minority shareholder of the Company. In August 2023, all rights, obligations and interests under the agreement were subsequently assigned by Vision Opportunity Fund LP to its general partner, New Vision 101 LLC (“Vision 101”). Pursuant to the agreement, the Company agreed to provide supplies and act as project developer for an amount equal to $ 15,875,800 271,185 Nil Starting in December 2022, for operation and cashflow needs, the Company received advances of funds from Zfounder Organization Inc., (“Zfounder”), one of the Company’s minority shareholders, and Wise Hill Inc., (“Wise Hill”), a company owned by a minority shareholder of the Company who also serves as the CEO and Board member of Zfounder. The advanced amounts are non-interest bearing. As of March 31, 2024, the outstanding balance due to Zfounder. and Wise Hill. were $ 60,000 208,000 55,000 122,000 INNO HOLDINGS INC. AND SUBSIDIARIES |
Equity
Equity | 6 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Equity | Note 11 — Equity The Company was incorporated in Texas on September 8, 2021. The total authorized shares of capital stock were 200,000,000 On November 30, 2022, the Company effected a forward stock split (the “Stock Split”) of the Company’s issued and outstanding shares of the common stock at a split ratio of 2-for-1. 200,000,000 100,000,000 As of March 31, 2024 and September 30, 2023, after giving effect to the stock splits of the outstanding shares of Common Stock, there were 20,751,726 18,251,726 100,000,000 In December 2022, The Company issued 142,857 3.50 500,000 In February 2023, The Company issued 27,028 3.70 100,000 In March 2023, The Company issued 78,947 3.80 300,000 The registration statement for the Company’s Initial Public Offering (the “Offering”) was declared effective on November 9, 2023. The Common Stock commenced trading on the Nasdaq Capital Market (the “Nasdaq”) on December 14, 2023, under the symbol “INHD.” The closing of the Offering took place on December 18, 2023. On December 18, 2023, in connection with the closing of the initial public offering of 2,500,000 no 4.00 375,000 201,250 4.80 December 18, 2028 201,250 13,000 13,000 no The total gross proceeds from the Offering were $ 10,000,000 2,140,466 700,000 345,876 595,000 499,590 2,140,466 590,466 8,450,000 INNO HOLDINGS INC. AND SUBSIDIARIES |
Concentration of risk
Concentration of risk | 6 Months Ended |
Mar. 31, 2024 | |
Risks and Uncertainties [Abstract] | |
Concentration of risk | Note 12 — Concentration of risk Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. As of March 31, 2024 and September 30, 2023, $ 4,045,442 4,898 250,000 3,289,479 Accounts receivable are typically unsecured and derived from revenue earned from customers, thereby exposing the Company to credit risk. The risk is mitigated by the Company’s assessment of its customers’ creditworthiness and its ongoing monitoring of outstanding balances. Customer and vendor concentration risk For the three and six months ended March 31, 2024, three customers accounted for 100 79 75 Nil 100 For the three and six months ended March 31, 2024, two suppliers accounted for 77 58 45 64 54 55 |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 13— Commitments and contingencies Lease commitments The Company has adopted ASC 842 since its inception date. The Company has entered into a lease agreement for office and production space in Texas with a term from December 1, 2019 until December 31, 2024 at a rate of $ 4,129 5,089 18,000 15,000 2.5 The Company has also entered into a lease agreement for office and production space in Corona, California with a term from May 1, 2022 until April 30, 2027 at a rate of $ 6,617 7,740 24,710 251,953 221,156 39,699 The lease in Diamond Bar, California has a term of 24 months from August 18, 2023 to August 17, 2025 at a rate of $ 4,730 4,926 In addition, the Company will be responsible for its pro rata share of certain costs, including utility costs, insurance and common area costs, as further detailed in the lease agreements. INNO HOLDINGS INC. AND SUBSIDIARIES Note 13— Commitments and contingencies Total commitment for the full term of the leases is $ 770,676 691,030 437,770 687,417 488,094 The three months and six months ended March 31, 2024 and 2023: Schedule of Operating Lease Liabilities 2024 2023 2024 2023 Lease cost For the three months ended For the six months ended 2024 2023 2024 2023 Operating lease cost (included in G&A in the Company’s statement of operations) $ 77,606 $ 36,351 $ 129,311 $ 72,702 Other information: Cash paid for amounts included in the measurement of lease liabilities $ 88,086 $ 35,116 $ 112,812 $ 70,231 Remaining term in years 1.00 3.75 1.75 4.08 1.00 3.75 1.75 4.08 Average discount rate – operating leases 9.5 % 8 % 9.5 % 8 % The supplemental balance sheet information related to leases is as follows: Schedule of Supplement Balance Sheet Information Related to Lease Operating leases March 31, 2024 September 30, 2023 Right of use asset – non-current $ 691,030 $ 437,770 Lease Liability – current 665,502 212,277 Lease Liability – non-current 21,915 275,817 Total operating lease liabilities $ 687,417 $ 488,094 Maturities of the Company’s lease liabilities are as follows: Schedule of Lease Liabilities Operating For periods subsequent to March 31, 2024: The remaining six months ended September 30, 2024 $ 635,771 2025 62,790 Less: Imputed interest/present value discount (11,144 ) Present value of lease liabilities $ 687,417 Other commitment On January 4, 2024, the Company entered into an agreement to acquire certain real property located at 300 South Park Avenue, Pomona, Los Angeles, California, approximately 120,776 14,600,000 440,000 9.7 440,000 INNO HOLDINGS INC. AND SUBSIDIARIES Note 13— Commitments and contingencies Contingencies The Company is not currently a party to any material legal proceedings, investigations or claims. As the Company may, from time to time, be involved in legal matters arising in the ordinary course of its business, there can be no assurance that such matters will not arise in the future or that any such matters in which the Company is involved, or which may arise in the ordinary course of the Company’s business, will not at some point proceed to litigation or that such litigation will not have a material adverse effect on the business, financial condition or results of operations of the Company. Nasdaq Listing Rule 5550(a)(2) On April 12, 2024, the Company received a letter (the “Notice”) from The Nasdaq notifying the Company that, because the closing bid price for its common stock has been below $1.00 per share for 30 consecutive business days, it no longer complies with the minimum bid price requirement for continued listing on The Nasdaq Capital Market (the “Minimum Bid Price Requirement”). Nasdaq Listing Rule 5550(a)(2) requires listed securities to maintain a minimum bid price of $1.00 per share (the “Minimum Bid Price Requirement”), and Listing Rule 5810(c)(3)(A) provides that a failure to meet the Minimum Bid Price Requirement exists if the deficiency continues for a period of 30 consecutive business days. The Notice has no immediate effect on the listing of the Company’s common stock on The Nasdaq. Pursuant to Nasdaq Marketplace Rule 5810(c)(3)(A), the Company has been provided an initial compliance period of 180 calendar days, or until October 9, 2024 to regain compliance with the Minimum Bid Price Requirement. During the compliance period, the Company’s shares of common stock will continue to be listed and traded on The Nasdaq. To regain compliance, the closing bid price of the Company’s common stock must meet or exceed $1.00 per share for a minimum of 10 consecutive business days during the 180-calendar day grace period. In the event the Company is not in compliance with the Minimum Bid Price Requirement by October 9, 2024, the Company may be afforded a second 180 calendar day grace period. To qualify, the Company would be required to meet the continued listing requirements for market value of publicly held shares and all other initial listing standards for The Nasdaq, with the exception of the Minimum Bid Price Requirement. In addition, the Company would be required to provide written notice of its intention to cure the minimum bid price deficiency during this second 180-day compliance period by effecting a reverse stock split, if necessary. The Company intends to actively monitor the bid price for its common stock between now and October 9, 2024 and will consider available options to regain compliance with the Minimum Bid Price Requirement. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of significant accounting policies (Policies) | 6 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying financial statements have been prepared in accordance with the generally accepted accounting principles in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). The Company’s fiscal year end date is September 30. Certain information and footnote disclosures normally included in the Company’s annual audited financial statements and accompanying notes have been condensed or omitted in this accompanying interim consolidated financial statements and footnotes. Accordingly, the accompanying interim condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2023, filed with the Securities and Exchange Commission (“SEC”) on January 16, 2024. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments and accruals, consisting only of normal, recurring adjustments that are necessary for a fair statement of the results of all interim periods reported herein. The results of the interim periods are not necessarily indicative of the results expected for the full fiscal year or any other interim period or any future year or period. |
Consolidated Principles of consolidation | Consolidated Principles of consolidation The Consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company balances and transactions have been eliminated. |
Use of estimates and assumptions | Use of estimates and assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities reported and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of amounts held as cash on hand, bank and money market deposits, and marketable securities with maturities of less than 90 days. From time to time, the Company may maintain bank balances in interest bearing accounts in excess of the $ 250,000 INNO HOLDINGS INC. AND SUBSIDIARIES Note 2 — Basis of Presentation and Summary of significant accounting policies |
Accounts receivable | Accounts receivable During the ordinary course of business, the Company extends unsecured credit to its customers. Accounts receivable are stated at the amount the Company expects to collect from customers. Management reviews its accounts receivable balances each reporting period to determine if an allowance for credit loss is required. In October 2020, the Company adopted ASU 2016-13, Topics 326 — Credit Loss, Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology, for its accounting standard for its trade accounts receivable. The Company continuously monitors the recoverability of accounts receivable. If there are any indicators that a customer may not make payment, the Company may consider making provision for non-collectability for that particular customer. At the same time, the Company may cease further sales or services to such customer. The following are some of the factors that the Company develops allowance for credit losses: ● the customer fails to comply with its payment schedule; ● the customer is in serious financial difficulty; ● a significant dispute with the customer has occurred regarding job progress or other matters; ● the customer breaches any of its contractual obligations; ● the customer appears to be financially distressed due to economic or legal factors; ● the business between the customer and the Company is not active; and ● other objective evidence indicates non-collectability of the accounts receivable. The adoption of the credit loss accounting standard has no material impact on the Company’s consolidated financial statements. Accounts receivable are recognized and carried at carrying amount less an allowance for credit losses, if any. The Company maintains an allowance for credit losses resulting from the inability of its customers to make required payments based on contractual terms. The Company reviews the collectability of its receivables on a regular and ongoing basis. The Company has also included in the calculation of allowance for credit losses based on its customers’ businesses and their ability to pay their accounts receivable. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. The Company also considers external factors to the specific customer, including current conditions and forecasts of economic conditions. In the event we recover amounts previously reserved, we will reduce the specific allowance for credit losses. |
Fair values of financial instruments | Fair values of financial instruments ASC 825, “Disclosures about Fair Value of Financial Instruments,” requires disclosure of fair value information about financial instruments. ASC 820, “Fair Value Measurements” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and all other current assets and liabilities are approximate fair values due to their short-term nature. INNO HOLDINGS INC. AND SUBSIDIARIES Note 2 — Basis of Presentation and Summary of significant accounting policies For other financial instruments to be reported at fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines the fair value of its financial instruments based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: Level 1 — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2 — Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level 3 — Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data. As of March 31, 2024, the Company hold $ 1,989,616 March 25, 2024 May 15, 2024 1,062 |
Revenue recognition | Revenue recognition The Company has adopted Accounting Standards Codification (“ASC”) 606 since its inception and recognizes revenue from product and service sales revenues, net of promotional discounts and return allowances, if any, when the following revenue recognition criteria are met: a contract has been identified, separate performance obligations are identified, the transaction price is determined, the transaction price is allocated to separate performance obligations and revenue is recognized upon satisfying each performance obligation. The Company transfers the risk of loss or damage upon delivery, therefore, revenue from product sales is recognized when it is delivered to the customer. For services, all sales are recognized upon completion based on terms stated in the sales agreements. The Company evaluates the criteria of ASC 606 — Revenue Recognition Principal Agent Considerations in determining whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as commissions. Generally, when the Company is primarily responsible for fulfilling the promise to provide a specified good or service, the Company is subject to inventory risk before the good or service has been transferred to a customer and the Company has discretion in establishing the price, revenue is recorded at gross. Payments received prior to the delivery of goods to customers are recorded as unearned revenue. Sales discounts are recorded in the period in which the related sale is recognized. Sales return allowances are estimated based on historical amounts and are recorded upon recognizing the related sales. Shipping and handling costs are recorded as selling expenses. |
Costs and expenses | Costs and expenses Costs and expenses are operating expenses, which consist of costs of material and labor, selling, general and administrative expenses, and depreciation, are expensed as incurred. |
Inventory | Inventory Inventory consists of material and finished goods ready for sale and is stated at the lower of cost or net realizable value. The Company values its inventory using the FIFO costing method. The Company’s policy is to include as a part of cost of goods sold any freight incurred to ship the product from its vendors to warehouses. Outbound freight costs related to shipping costs to customers are considered periodic costs and are reflected in selling expenses. The Company regularly reviews inventory and considers forecasts of future demand, market conditions and product obsolescence. INNO HOLDINGS INC. AND SUBSIDIARIES Note 2 — Basis of Presentation and Summary of significant accounting policies If the estimated realizable value of the inventory is less than cost, the Company makes provisions in order to reduce its carrying value to its estimated net realizable value. The Company regularly assesses its inventory for obsolescence and records an allowance only when the inventory is no longer suitable for reproduction. The Company’s inventory generally has a long life cycle and does not become obsolete quickly. |
Deferred offering costs | Deferred offering costs The Company capitalizes certain legal, accounting and other third-party fees that are directly related to an equity financing that is probable of successful completion until such financing is consummated. After consummation of an equity financing, these costs are recorded as a reduction of the proceeds received as a result of the financing. Should a planned equity financing be abandoned, terminated or significantly delayed, the deferred offering costs are immediately written off to operating expenses in the consolidated statements of operations in the period of determination. |
Property and equipment | Property and equipment Property and equipment is stated at their historical cost, less accumulated depreciation. Depreciation on property and equipment is provided using the straight-line method over the estimated useful lives of the assets as follows: Schedule of Depreciation on Property and Equipment Machinery and equipment 7 Office equipment 5 Motor vehicles 5 Leasehold improvements the shorter of the lease term or the estimated useful life of the improvements Expenditures for renewals and betterments are capitalized while repairs and maintenance costs are normally charged to the statement of operations in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. Upon sale or disposal of an asset, the historical cost and related accumulated depreciation or amortization of such asset were removed from their respective accounts and any gain or loss is recorded in the statements of income. The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, the Company recorded $ 23,911 No |
Leases | Leases On its inception date, the Company adopted ASC 842 — Leases (“ASC 842”), which requires lessees to record right-of-use (“ROU”) assets and related lease obligations on the balance sheet, as well as disclose key information regarding leasing arrangements. ROU assets represent our right to use an underlying asset for the lease terms and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. INNO HOLDINGS INC. AND SUBSIDIARIES Note 2 — Basis of Presentation and Summary of significant accounting policies |
Stock-based Compensation | Stock-based Compensation The Company applies ASC No. 718, “Compensation-Stock Compensation,” which requires that share-based payment transactions with employees and nonemployees upon adoption of ASU 2018-07, be measured based on the grant date fair value of the equity instrument and recognized as compensation expense over the requisite service period, with a corresponding addition to equity. Under this method, compensation cost related to employee share options or similar equity instruments is measured at the grant date based on the fair value of the award and is recognized over the period during which an employee is required to provide service in exchange for the award, which generally is the vesting period. In addition to the requisite service period, the Company also evaluates the performance condition and market condition under ASC 718-10-20. For an award which contains both a performance and a market condition, and where both conditions must be satisfied for the award to vest, the market condition is incorporated into the fair value of the award, and that fair value is recognized over the employee’s requisite service period or nonemployee’s vesting period if it is probable the performance condition will be met. If the performance condition is ultimately not met, compensation cost related to the award should not be recognized (or should be reversed) because the vesting condition in the award has not been satisfied. The Company will recognize forfeitures of such equity-based compensation as they occur. |
Income taxes | Income taxes The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their perspective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the 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 that includes the enactment date. Valuation allowances are recorded, when necessary, to reduce deferred tax assets to the amount expected to be realized. As a result of the implementation of certain provisions of ASC 740, Income Taxes (“ASC 740”), which clarifies the accounting and disclosure for uncertainty in tax position, as defined, ASC 740 seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to accounting for income taxes. The Company has adopted the provisions of ASC 740 since inception and has analyzed filing positions in each of the federal and state jurisdictions where the Company is required to file income tax returns, as well as open tax years in such jurisdictions. The Company has identified the U.S. federal jurisdiction, and the states of Texas and California, as its “major” tax jurisdictions. However, the Company has certain tax attribute carryforwards which will remain subject to review and adjustment by the relevant tax authorities until the statute of limitations closes with respect to the year in which such attributes are utilized. The Company believes that its income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to its financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. The Company’s policy for recording interest and penalties associated with income-based tax audits is to record such items as a component of income taxes. |
Commitments and contingencies | Commitments and contingencies In the ordinary course of business, the Company is subject to certain contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes its liability for such contingency if it determines it is probable that a loss has occurred and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments including historical and specific facts and circumstances of each matter. INNO HOLDINGS INC. AND SUBSIDIARIES Note 2 — Basis of Presentation and Summary of significant accounting policies |
Earnings per share | Earnings per share Basic earnings per share are computed by dividing net income attributable to holders of common stock by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share reflect the potential dilution that could occur if securities to issue common stock were exercised. |
Recently issued but not yet adopted accounting pronouncements | Recently issued but not yet adopted accounting pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. The new guidance requires enhanced disclosures about income tax expenses. The Company is required to adopt this guidance in the first quarter of the fiscal year 2026. Early adoption is permitted on a prospective basis. We are currently evaluating the impact of this ASU on our annual income tax disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The new guidance requires enhanced disclosures about significant segment expenses. The Company is required to adopt this guidance for its annual reporting in fiscal year 2025 and for interim period reporting beginning the first quarter of fiscal year 2026 on a retrospective basis. Early adoption is permitted. We are currently evaluating the impact of this ASU on our segment disclosures. In June 2022, FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in this ASU clarify the guidance in ASC 820 on the fair value measurement of an equity security that is subject to a contractual sale restriction and require specific disclosures related to such an equity security. This standard is effective for fiscal years beginning after December 15, 2024. The Company does not expect the adoption of this standard to have a material impact on the consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606) as if the entity had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2023, with early application permitted. The Company does not expect the adoption of this standard to have a material impact on the consolidated financial statements. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. INNO HOLDINGS INC. AND SUBSIDIARIES Note 2 — Basis of Presentation and Summary of significant accounting policies |
Subsequent events | Subsequent events The Company evaluated subsequent events and transactions that occurred after the balance sheet date through the date that the consolidated financial statements are available to be issued. Material subsequent events that required recognition or additional disclosure in the consolidated financial statements are presented. Except for these events disclosed in Note 13, Commitments and Contingencies, no other material subsequent events were noted. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of significant accounting policies (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Depreciation on Property and Equipment | Schedule of Depreciation on Property and Equipment Machinery and equipment 7 Office equipment 5 Motor vehicles 5 Leasehold improvements the shorter of the lease term or the estimated useful life of the improvements |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Credit Loss [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable for the Company consisted of the following as of the dates indicated below: Schedule of Accounts Receivable March 31, 2024 September 30, 2023 Accounts receivable $ 867,360 $ 1,338,395 Less: allowance for credit losses (867,360 ) (1,267,960 ) Accounts receivable, net $ - $ 70,435 |
Schedule of Activities in the Allowance for Expected Credit Losses | Schedule of Activities in the Allowance for Expected Credit Losses March 31, 2024 (unaudited) March 31, 2023 (unaudited) Allowance for credit losses, beginning $ 1,267,960 $ - Add/ (Deduct): Provision for credit loss 59,935 400,600 Write-offs (460,535 ) - Allowance for credit losses, end $ 867,360 $ 400,600 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of March 31, 2024 and September 30, 2023, inventories consisted of the following: Schedule of Inventories March 31, 2024 September 30, 2023 Raw material $ 84,597 $ 134,299 Production inventory 276,256 259,994 Total $ 360,853 $ 394,293 |
Prepayments and other current_2
Prepayments and other current assets (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Prepayments And Other Current Assets | |
Schedule of Prepayments and Other Current Assets | As of March 31, 2024 and September 30, 2023, prepayments and other current assets consisted of the following: Schedule of Prepayments and Other Current Assets March 31, 2024 September 30, 2023 Short term deposit for building acquisition $ 440,000 $ - Prepaid marketing and promotional services 272,815 - Advance to suppliers 25,127 87,217 Prepaid insurance 125,918 3,663 Prepaid for services by stock grants 20,833 83,333 Other prepayments and current assets 79,148 6,254 Total $ 963,841 $ 180,467 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | As of March 31, 2024 and September 30, 2023, property and equipment consisted of the following: Schedule of Property and Equipment March 31, 2024 (unaudited) September 30, Machinery and equipment $ 346,900 $ 346,900 Office equipment 3,064 5,488 Motor vehicles 139,837 64,082 Construction-in-progress 692,042 497,000 Leasehold improvements 18,000 54,049 Total 1,199,843 967,519 Property and equipment, gross 1,199,843 967,519 Less: accumulated depreciation (128,514 ) (97,935 ) Property and equipment, net $ 1,071,329 $ 869,584 |
Other payables and accrued li_2
Other payables and accrued liabilities (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Other Payables and Accrued Liabilities | As of March 31, 2024 and September 30, 2023, Other payables and accrued liabilities consisted of the following: Schedule of Other Payables and Accrued Liabilities March 31, 2024 (unaudited) September 30, 2024 Refundable to customers due to project termination $ 304,000 $ - Accrued payroll 104,289 - Other payable 33,996 92,164 Total $ 442,285 $ 92,164 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Operating Lease Liabilities | The three months and six months ended March 31, 2024 and 2023: Schedule of Operating Lease Liabilities 2024 2023 2024 2023 Lease cost For the three months ended For the six months ended 2024 2023 2024 2023 Operating lease cost (included in G&A in the Company’s statement of operations) $ 77,606 $ 36,351 $ 129,311 $ 72,702 Other information: Cash paid for amounts included in the measurement of lease liabilities $ 88,086 $ 35,116 $ 112,812 $ 70,231 Remaining term in years 1.00 3.75 1.75 4.08 1.00 3.75 1.75 4.08 Average discount rate – operating leases 9.5 % 8 % 9.5 % 8 % |
Schedule of Supplement Balance Sheet Information Related to Lease | The supplemental balance sheet information related to leases is as follows: Schedule of Supplement Balance Sheet Information Related to Lease Operating leases March 31, 2024 September 30, 2023 Right of use asset – non-current $ 691,030 $ 437,770 Lease Liability – current 665,502 212,277 Lease Liability – non-current 21,915 275,817 Total operating lease liabilities $ 687,417 $ 488,094 |
Schedule of Lease Liabilities | Maturities of the Company’s lease liabilities are as follows: Schedule of Lease Liabilities Operating For periods subsequent to March 31, 2024: The remaining six months ended September 30, 2024 $ 635,771 2025 62,790 Less: Imputed interest/present value discount (11,144 ) Present value of lease liabilities $ 687,417 |
Nature of business and organi_2
Nature of business and organization (Details Narrative) - USD ($) | 6 Months Ended | ||||||
Jan. 27, 2024 | Jan. 21, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Oct. 16, 2023 | Jan. 18, 2022 | Sep. 08, 2021 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Disposal loss | $ 23,715 | $ (23,715) | |||||
Mr Dekui Liu [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Stock issued of common stock, shares | 15,170,000 | ||||||
Inno Metal Studs Corp [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Acquired percentage of ordinary shares | 100% | ||||||
Inno Metal Studs Corp [Member] | Inno Research Institute LLC [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Owned subsidiary percentage | 65% | ||||||
Castor Building Tech LLC [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Owned subsidiary percentage | 53% | ||||||
Castor Building Tech LLC [Member] | New Ownership Agreement [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Owned subsidiary percentage | 55% | ||||||
Inno Metal Studs Corp [Member] | Mr Dekui Liu [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Owned subsidiary percentage | 100% |
Schedule of Depreciation on Pro
Schedule of Depreciation on Property and Equipment (Details) | Mar. 31, 2024 |
Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 7 years |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 5 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 5 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | us-gaap:UsefulLifeTermOfLeaseMember |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of significant accounting policies (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Accounting Policies [Abstract] | |||||
Interest bearing amount | $ 250,000 | $ 250,000 | $ 250,000 | ||
United state treasury notes, purchased | $ 1,989,616 | $ 1,989,616 | $ 1,989,616 | ||
United state treasury notes, purchased date | Mar. 25, 2024 | ||||
United state treasury notes, maturity date | May 15, 2024 | May 15, 2024 | May 15, 2024 | ||
Unrealized gain | $ 1,062 | ||||
Impairment loss | $ 23,911 | $ 23,911 |
Schedule of Accounts Receivable
Schedule of Accounts Receivable (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Credit Loss [Abstract] | |||||
Accounts receivable | $ 867,360 | $ 1,338,395 | |||
Less: allowance for credit losses | (867,360) | $ (1,267,960) | (1,267,960) | $ (400,600) | |
Accounts receivable, net | $ 70,435 |
Schedule of Activities in the A
Schedule of Activities in the Allowance for Expected Credit Losses (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Credit Loss [Abstract] | ||
Allowance for credit losses, beginning | $ 1,267,960 | |
Provision for credit loss | 59,935 | 400,600 |
Write-offs | (460,535) | |
Allowance for credit losses, end | $ 867,360 | $ 400,600 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Credit Loss [Abstract] | |||
Provision for Loan, Lease, and Other Losses | $ 59,935 | $ 400,600 |
Schedule of Inventories (Detail
Schedule of Inventories (Details) - USD ($) | Mar. 31, 2024 | Sep. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 84,597 | $ 134,299 |
Production inventory | 276,256 | 259,994 |
Total | $ 360,853 | $ 394,293 |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | ||
Allowance for obsolescence | $ 0 | $ 0 |
Deferred offering costs (Detail
Deferred offering costs (Details Narrative) - USD ($) | Mar. 31, 2024 | Sep. 30, 2023 |
Deferred Offering Costs | ||
Deferred offering costs | $ 538,765 |
Schedule of Prepayments and Oth
Schedule of Prepayments and Other Current Assets (Details) - USD ($) | Mar. 31, 2024 | Sep. 30, 2023 |
Prepayments And Other Current Assets | ||
Short term deposit for building acquisition | $ 440,000 | |
Prepaid marketing and promotional services | 272,815 | |
Advance to suppliers | 25,127 | 87,217 |
Prepaid insurance | 125,918 | 3,663 |
Prepaid for services by stock grants | 20,833 | 83,333 |
Other prepayments and current assets | 79,148 | 6,254 |
Total | $ 963,841 | $ 180,467 |
Prepayments and other current_3
Prepayments and other current assets (Details Narrative) - USD ($) | Apr. 30, 2024 | Jan. 10, 2024 |
Subsequent Event [Line Items] | ||
Escrow deposit | $ 440,000 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Escrow deposit | $ 440,000 |
Schedule of Property and Equipm
Schedule of Property and Equipment (Details) - USD ($) | Mar. 31, 2024 | Sep. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,199,843 | $ 967,519 |
Less: accumulated depreciation | (128,514) | (97,935) |
Property and equipment, net | 1,071,329 | 869,584 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 346,900 | 346,900 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,064 | 5,488 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 139,837 | 64,082 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 692,042 | 497,000 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 18,000 | $ 54,049 |
Property and equipment, net (De
Property and equipment, net (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | ||||
Lease impairment loss | $ 23,911 | $ 23,911 | ||
Depreciation expenses | $ 22,263 | $ 17,764 | $ 43,323 | $ 32,783 |
Schedule of Other Payables and
Schedule of Other Payables and Accrued Liabilities (Details) - USD ($) | Mar. 31, 2024 | Sep. 30, 2023 |
Payables and Accruals [Abstract] | ||
Refundable to customers due to project termination | $ 304,000 | |
Accrued payroll | 104,289 | |
Other payable | 33,996 | 92,164 |
Total | $ 442,285 | $ 92,164 |
Loans payable (Details Narrativ
Loans payable (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||
Nov. 28, 2021 | Oct. 28, 2021 | Mar. 31, 2024 | Aug. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2023 | Sep. 16, 2022 | |
Line of Credit Facility [Line Items] | |||||||||
Line of credit, maximum borrowing capacity | $ 1,000,000 | ||||||||
Floating prime rate plus | 1% | ||||||||
Interest expense | $ 1,709 | $ 1,564 | $ 3,796 | $ 4,025 | |||||
Line of credit outstanding | $ 560,000 | ||||||||
Payment of short term loan | 180,000 | 740,000 | |||||||
Short-term debt outstanding balance | 50,000 | 50,000 | 790,000 | ||||||
Promissory note percentage | 4.75% | ||||||||
Promissory note monthly installments | $ 4,661 | ||||||||
Principal amount | $ 248,500 | ||||||||
Debt outstanding balance | 135,834 | 135,834 | 160,239 | ||||||
Long-term notes payable current portion | 50,684 | 50,684 | 49,393 | ||||||
Long-term notes payable noncurrent portion | 85,150 | 85,150 | 110,846 | ||||||
Three Individuals [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Short term loans without interest | $ 230,000 | ||||||||
Short-term debt outstanding balance | 50,000 | 50,000 | $ 230,000 | ||||||
Line of Credit [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Interest expense | $ 2,585 | $ 14,200 | $ 15,881 | $ 29,462 |
Related party transactions (Det
Related party transactions (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2023 | |
Yunited Assets LLC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Service fee | $ 10,000 | $ 20,000 | ||||
Outstanding accounts payable related party | $ 50,000 | |||||
Dekui Lu [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Service fee | 52,000 | 52,000 | ||||
Outstanding accounts payable related party | 14,489 | 14,489 | 485,595 | |||
Zfounder Organization Inc [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Outstanding balance | 60,000 | 60,000 | 55,000 | |||
Wise Hill Inc [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Outstanding balance | 208,000 | 208,000 | 122,000 | |||
Mr Dekui Liu [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Outstanding balance | 2,000 | 2,000 | $ 327,372 | |||
Inno Research Institute [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Service fee | 3,100 | |||||
Vision Opportunity Fund LP [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Supplies expense | $ 15,875,800 | |||||
Deferred revenue | $ 271,185 | 271,185 | ||||
Revenue |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | |||||||||||||
Mar. 01, 2024 | Dec. 19, 2023 | Dec. 18, 2023 | Nov. 30, 2022 | Mar. 31, 2023 | Feb. 28, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2024 | Sep. 30, 2023 | Jul. 24, 2023 | Jul. 23, 2023 | Sep. 08, 2021 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Authorized number of shares of capital stock | 100,000,000 | 100,000,000 | 100,000,000 | 200,000,000 | 200,000,000 | ||||||||||
Stock split | On November 30, 2022, the Company effected a forward stock split (the “Stock Split”) of the Company’s issued and outstanding shares of the common stock at a split ratio of 2-for-1. | ||||||||||||||
Common stock issued | 20,751,726 | 18,251,726 | |||||||||||||
Common stock outstanding | 20,751,726 | 18,251,726 | |||||||||||||
Value issued for cash | $ 900,000 | ||||||||||||||
Common stock, no par value | $ 0 | $ 0 | |||||||||||||
Warrant right exercise price | $ 4.80 | ||||||||||||||
Warrants and rights outstanding, maturity date | Dec. 18, 2028 | ||||||||||||||
Net cash from offering | $ 10,000,000 | $ 8,450,000 | |||||||||||||
Total transaction costs | 2,140,466 | ||||||||||||||
Payments for underwriting expense | 700,000 | ||||||||||||||
Underwriting fees | 345,876 | ||||||||||||||
Legal fees | 595,000 | ||||||||||||||
Other costs | 499,590 | ||||||||||||||
Payment for offering transaction costs | $ 590,466 | ||||||||||||||
Warrant Assumption Agreement [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Warrants to underwriters purchase | 201,250 | ||||||||||||||
Aggregate amount of warrants | $ 13,000 | ||||||||||||||
Warrants outstanding | |||||||||||||||
Maximum [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Warrants to underwriters purchase | 201,250 | ||||||||||||||
IPO [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Common stock issued | 2,500,000 | ||||||||||||||
Common stock, no par value | $ 0 | ||||||||||||||
Share price | $ 4 | ||||||||||||||
Shares granted the underwriters option exercisable | 375,000 | ||||||||||||||
Common Stock [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Shares issued for cash | [1],[2] | 105,975 | 142,857 | ||||||||||||
Value issued for cash | [1],[2] | ||||||||||||||
Common Stock [Member] | Investor [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Shares issued for cash | 78,947 | 27,028 | 142,857 | ||||||||||||
Share price | $ 3.80 | $ 3.70 | $ 3.50 | $ 3.80 | $ 3.50 | ||||||||||
Value issued for cash | $ 300,000 | $ 100,000 | $ 500,000 | ||||||||||||
[1]On January 21, 2022, the sole owner of the Company and Inno Metal Studs Corp. (“IMSC”), Mr. Dekui Liu, entered into an agreement to sell 100% 15,170,000 200,000,000 100,000,000 |
Concentration of risk (Details
Concentration of risk (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2023 | |
Concentration Risk [Line Items] | |||||
Cash | $ 4,045,442 | $ 4,045,442 | $ 4,898 | ||
Cash uninsured limit | 3,289,479 | 3,289,479 | |||
Outstanding of accounts receivable | |||||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Three Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 100% | 100% | |||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Two Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 79% | ||||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Five Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 75% | ||||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | One Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 100% | ||||
Supplier Concentration Risk [Member] | Cost of Goods and Service Benchmark [Member] | Two Suppliers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 77% | 45% | 58% | ||
Supplier Concentration Risk [Member] | Cost of Goods and Service Benchmark [Member] | Three Suppliers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 64% | ||||
Supplier Concentration Risk [Member] | Accounts Payable [Member] | Two Suppliers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 55% | ||||
Supplier Concentration Risk [Member] | Accounts Payable [Member] | Three Suppliers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 54% | ||||
Maximum [Member] | |||||
Concentration Risk [Line Items] | |||||
Cash FDIC insurance limit | $ 250,000 | $ 250,000 | $ 250,000 |
Schedule of Operating Lease Lia
Schedule of Operating Lease Liabilities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Loss Contingencies [Line Items] | ||||
Cash paid for amounts included in the measurement of lease liabilities | $ 88,086 | $ 35,116 | $ 112,812 | $ 70,231 |
Average discount rate - operating leases | 9.50% | 8% | 9.50% | 8% |
Minimum [Member] | ||||
Loss Contingencies [Line Items] | ||||
Remaining term in years | 1 year | 1 year 9 months | 1 year | 1 year 9 months |
Maximum [Member] | ||||
Loss Contingencies [Line Items] | ||||
Remaining term in years | 3 years 9 months | 4 years 29 days | 3 years 9 months | 4 years 29 days |
General and Administrative Expense [Member] | ||||
Loss Contingencies [Line Items] | ||||
Operating lease cost (included in G&A in the Company’s statement of operations) | $ 77,606 | $ 36,351 | $ 129,311 | $ 72,702 |
Schedule of Supplement Balance
Schedule of Supplement Balance Sheet Information Related to Lease (Details) - USD ($) | Mar. 31, 2024 | Sep. 30, 2023 | Aug. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | |||
Right of use asset – non-current | $ 691,030 | $ 437,770 | $ 251,953 |
Lease Liability – current | 665,502 | 212,277 | |
Lease Liability – non-current | 21,915 | 275,817 | |
Total operating lease liabilities | $ 687,417 | $ 488,094 | $ 221,156 |
Schedule of Lease Liabilities (
Schedule of Lease Liabilities (Details) | Mar. 31, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
The remaining six months ended September 30, 2024 | $ 635,771 |
2025 | 62,790 |
Less: Imputed interest/present value discount | (11,144) |
Present value of lease liabilities | $ 687,417 |
Commitments and contingencies_2
Commitments and contingencies (Details Narrative) | 1 Months Ended | 6 Months Ended | ||||||
Jan. 04, 2024 USD ($) ft² | Jan. 01, 2024 USD ($) ft² | Aug. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) | Apr. 30, 2024 USD ($) | Jan. 10, 2024 USD ($) | Jan. 01, 2024 a | Sep. 30, 2023 USD ($) | |
Loss Contingencies [Line Items] | ||||||||
Area of land | 120,776 | 15,000 | 2.5 | |||||
Termination of lease | $ 24,710 | |||||||
Operating lease right of use asset | 251,953 | $ 691,030 | $ 437,770 | |||||
Operating lease liabilities | 221,156 | 687,417 | $ 488,094 | |||||
Lease deposits | $ 39,699 | |||||||
Operating lease cost | 770,676 | |||||||
Payments to acquire buildings | $ 14,600,000 | |||||||
Escrow deposit | $ 440,000 | |||||||
Payments of loan costs | $ 9,700,000 | |||||||
Subsequent Event [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Escrow deposit | $ 440,000 | |||||||
January 1, 2024 to January 1, 2027 [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Payment lease agreement | $ 18,000 | |||||||
Minimum [Member] | December 1, 2019 Until December 31, 2024 [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Payment lease agreement | 4,129 | |||||||
Minimum [Member] | May 1, 2022 And April 30, 2027 [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Payment lease agreement | 6,617 | |||||||
Minimum [Member] | August 18, 2023 to August 17, 2025 [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Payment lease agreement | 4,730 | |||||||
Maximum [Member] | December 1, 2019 Until December 31, 2024 [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Payment lease agreement | 5,089 | |||||||
Maximum [Member] | May 1, 2022 And April 30, 2027 [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Payment lease agreement | 7,740 | |||||||
Maximum [Member] | August 18, 2023 to August 17, 2025 [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Payment lease agreement | $ 4,926 |