| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis
of Presentation and Principles of Consolidation The
accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the
United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). The
consolidated financial statements include the financial statements of the Company and its wholly owned subsidiary. All intercompany transactions
and balances among the Company and its subsidiary have been eliminated upon consolidation. Use
of Estimates The
preparation of financial statements and related disclosures in accordance with accounting principles generally accepted in the United
States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses
during the reporting period. Significant accounting estimates include, but not limited to revenue recognition, allowance for expected
credit loss, Foreign
Currencies Translation The
accompanying consolidated financial statements are presented in United States dollars (“US$” or “$”). The functional
currency of the Company is the local currency of the country in which the subsidiaries operate, which is Hong Kong Dollar (“HKD”).
Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of transaction. Any differences
between the initially recorded amount and the settlement amount are recorded as a gain or loss on foreign currency transaction in the
consolidated statements of income and comprehensive income. The
exchanges rates used for translation from Hong Kong dollar to USD was 7.8000 SCHEDULE
OF FOREIGN CURRENCY TRANSLATION
For the year ended September
30,
2022 2023 2024
Year-end HKD: US$ exchange rate 7.8000 7.8000 7.8000
Year average HKD: US$
exchange rate 7.8000 7.8000 7.8000 Cash
and Cash Equivalents Cash
and cash equivalents consist of petty cash on hand and cash held in banks, which are highly liquid and have original maturities of three
months or less and are unrestricted as to withdrawal or use. The Company maintains all bank accounts in Hong Kong. Cash balances in bank
accounts in Hong Kong are protected under Deposit Protection Scheme in accordance with the Deposit Protection Scheme Ordinance. The maximum
protection is up to HKD 500,000 Accounts
Receivable, net Accounts
receivable represents an unconditional right to consideration arising from our performance under contracts with customers. The Company
grant credit to customers, without collateral, under normal payment terms (typically within 90 days after invoicing). For
those past due balances over 1 year and other higher risk receivables identified by management are reviewed individually for collectability.
In establishing an allowance for credit losses, the Company uses Deferred
listing costs Deferred
listing costs consist principally of all direct offering costs incurred by the Company, such as underwriting, legal, accounting, consulting,
printing, and other registration related costs in connection with the initial public Offering (“IPO”) of the Company’s
ordinary shares. Such costs are deferred until the closing of the offering, at which time the deferred costs are offset against the offering
proceeds. In the event the offering is unsuccessful or aborted, the costs will be expensed. Fair
Value of Financial Instruments The
Company applies the provisions of ASC 820, Fair Value Measurements and Disclosures
● Level
1—defined as observable inputs such as quoted prices in active markets for identical assets or liabilities;
● Level
2—defined as inputs other than quoted prices in active markets, that are either directly or indirectly observable; and
● Level
3—defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own
assumptions. The
Company’s financial instruments include cash and cash equivalents, accounts and other The Company carries financial instruments at amortized cost which appropriates fair value. The
Company noted no transfers between levels during any of the periods presented. The Company did not have any instruments that were measured
at fair value on a recurring nor non-recurring basis as of September 30, 2024 and 2023. Property,
Plant and Equipment Property,
plant and equipment is stated at historical cost less accumulated depreciation and impairment losses. Historical cost includes expenditure
that is directly attributable to the acquisition of the items. Major
modifications or refurbishments which extend the useful life of the assets are capitalized and depreciated over the adjusted remaining
useful life of the assets. The
Property, plant and equipment is calculated using the straight-line method over their estimated useful lives, as follows: SCHEDULE
OF ESTIMATED USEFUL LIFE
Owned
assets Useful
lives
Leasehold
improvements Over
shorter of the lease term and the remaining useful life
Plant
and machinery 40 60
Computer
and equipment 40
Furniture
and fixtures 40
Motor
vehicles 40 The
useful lives of the assets are reviewed, and adjusted if appropriate, at the end of each reporting period. Upon
retirement or disposition of property, plant and equipment, the cost and related accumulated depreciation are removed any resulting gain
or loss is recognized in consolidated statements of income and comprehensive income. The cost of maintenance and repairs is charged to
expenses as incurred. Impairment
of Long-Lived Assets The
Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of
an asset may no longer be recoverable. When these events occur, the Company measures impairment by comparing the carrying value of the
long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition.
If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment
loss, which is the excess of carrying amount over the fair value of the assets, using the expected future discounted cash flows. No Lease The
Company evaluates the contracts it entered into to determine whether such contracts contain leases at inception. A contract contains
a lease if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange
for consideration. At commencement, contracts containing a lease are further evaluated for classification as an operating or finance
lease where the Company is a lessee. Operating
Leases A
lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lease as
an operation lease. Operating leases are included in the line items right-of-use (ROU) asset, lease liabilities, current, and lease liabilities,
non-current in the consolidated balance sheet. ROU assets represent the Company’s right to use an underlying asset for the lease
term and lease liabilities represent its obligation to make lease payments arising from the lease. For operating leases, the Company
measures its lease liabilities based on the present value of the total lease payments not yet paid discounted based on the more readily
determinable of the rate implicit in the lease or its incremental borrowing rate, which is the estimated rate the Company would be required
to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. The Company uses its incremental
borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. The
Company measures ROU assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement
date, and initial direct costs it incurs under the lease. The Company begins recognizing lease expense when the lessor makes the underlying
asset available to the Company. Lease expenses for lease payments are recognized on a straight-line basis over the lease term. For
leases with lease term less than one year (short-term leases), the Company has elected not to recognize a lease liability or ROU asset
on its consolidated balance sheet. Instead, it recognizes the lease payments as expenses on a straight-line basis over the lease term.
Short-term lease costs are immaterial to its consolidated statements of operations and cash flows. Finance
leases Leases
that transfer substantially all of the benefits and risks incidental to the ownership of assets are accounted for as finance leases as
if there was an acquisition of an asset and incurrence of an obligation at the inception of the lease. Lease cost for finance leases
where the Company is the lessee includes the amortization of the ROU asset, which is amortized on a straight-line basis and recorded
to “Depreciation of right-of-use finance asset” and interest expense on the finance lease liability, which is calculated
using the interest method and recorded to “Interest expense”. Finance lease ROU assets are amortized over the shorter of
their estimated useful lives or the terms of the respective leases. If the Company is reasonably certain to exercise the option to purchase
the underlying asset at the end of lease term, the finance lease ROU assets are amortized to the end of useful life of the assets on
a straight-line basis. Contract
Assets Contract
assets represent estimated amounts for which the Company has the right to consideration for the services provided while a shipment is
still in-transit but for which it has not yet completed the performance obligation and has not yet invoiced the customer. Upon
completion of the performance obligations, which can vary in duration based upon the method of transport and billing the customer, these
amounts become classified within accounts receivable. Contract assets were US$ Nil Related
parties The
Company adopted ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.
Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant
influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject
to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. Revenue
Recognition The
Company’s revenues are primarily from transportation services, which includes providing for the arrangement of freight, both domestically
and internationally, through modes of transportation such as air freight, ocean freight. The Company generates its transportation services
revenue by purchasing transportation from airline and other forwarders and reselling those services to its customers. In
general, each shipment transaction or service order constitutes a separate contract with the customer. A performance obligation is created
once a customer agreement with an agreed upon transaction price exists. The transaction price is typically fixed and not contingent upon
the occurrence or non-occurrence of any other event. The transaction price is generally due within 90 days The
Company also provides other services such as warehousing and distribution, X-ray, gate charge and palletization services for its customers
under contracts generally ranging from a few months to one year and include renewal provisions. Warehousing
services contracts The
Company provides distribution logistics, X-ray, gate charge and palletization services which sell on a standalone basis as a single performance
obligation. The Company recognizes revenue from this performance obligation at a point in time, which is the completion of the services. The
Company applies the practical expedient in Topic 606 that permits the Company to not disclose the aggregate amount of transaction price
allocated to performance obligations that are unsatisfied as of the end of the period as the Company’s contracts have an expected
length of one year or less. The Company also applies the practical expedient in Topic 606 that permits the recognition of incremental
costs of obtaining contracts as an expense when incurred if the amortization period of such costs is one year or less. These costs are
included in cost of sales. The Company uses independent contractors and third-party carriers in the performance of its transportation
services. The Company evaluates who controls the transportation services to determine whether its performance obligation is to transfer
services to the customer or to arrange for services to be provided by another party. The Company determined it acts as the principal
for its transportation services performance obligation since it is in control of establishing the prices for the specified services,
managing all aspects of the shipments process and assuming the risk of loss for delivery and collection. Such transportation services
revenue is presented on a gross basis in the statement of comprehensive income. A
summary of the Company’s gross revenues disaggregated by major service lines and timing of revenue recognition for the years ended
September30, 2022, 2023 and 2024, respectively, are as follow: SCHEDULE
OF DISAGGREGATE REVENUE RECOGNITION
2022 2023 2024
Year ended
September 30,
2022 2023 2024
US$ US$ US$
Air freight forwarding services 72,562,276 33,236,407 48,010,322
Ocean freight forwarding services 788,427 378,039 898,709
Other services 1,835,426 2,459,558 3,267,078
Total 75,186,129 36,074,004 52,176,109
Timing of revenue recognition:
Services transferred over time 74,467,097 33,880,177 49,045,423
Services transferred
at a point in time 719,032 2,193,827 3,130,686
Total 75,186,129 36,074,004 52,176,109 Cost
of sales Cost
of sales consists primarily of cargo space charged by airlines, shipping liners or other freight forwarders and ancillary logistics services
fee including costs of security, local handling and x-ray screening, lease expense of warehouse, labor cost and other warehouse services General
and Administrative Expenses General
and administrative expenses include management and salaries and employee benefits of office staffs, depreciation for office facility
and office equipment, travel and entertainment, legal and accounting, consulting fees, rental expenses, provision for ECL and other office
expenses. Income
Taxes The
Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable
to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective
tax bases. Deferred
tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized
in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets
to the amount expected to be realized. The
provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for
consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This
interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred
income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The
Company believes there were no uncertain tax positions at September 30, 2023 and 2024, respectively. The Company does not expect that
its assessment regarding unrecognized tax positions will materially change over the next 12 months. The Company is not currently under
examination by an income tax authority, nor has been notified that an examination is contemplated. Comprehensive
Income Comprehensive
income is defined as the change in equity during the year from transactions and other events, excluding the changes resulting from investments
by owners and distributions to owners, and is not included in the computation of income tax expense or benefit. No accumulated comprehensive
income was recognized during the years ended September 30, 2022, 2023 and 2024. Earnings
per share Basic
earnings per share is computed by dividing net earnings attributable to ordinary shareholders by the weighted average number of ordinary
shares outstanding during the year. Diluted earnings per share reflect the potential dilution that could occur if securities or other
contracts to issue ordinary shares were exercised or converted into ordinary shares. Commitments
and contingencies In
the normal course of business, the Company is subject to commitments and contingencies, including operating lease and finance lease commitments,
legal proceedings and claims arising out of its business that relate to a wide range of matters, such as government investigations and
tax matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss will occur, and a reasonable
estimate of the loss can be made. The Company may consider many factors in making these assessments on liability for contingencies, including
historical and the specific facts and circumstances of each matter. Segment
Reporting ASC
280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent
with the Company’s internal organizational structure as well as information about geographical areas, business segments and major
customers in financial statements for detailing the Company’s business segments. The
Company’s chief operating decision maker is the Chief Executive Officer, who is responsible for Certain
Risks In
the event that there is border control in respect of shipments or shutdown of the airports/ports imposed by local government or governments
of foreign countries, our operation will be materially disrupted. The above adverse impacts, especially if they materialize and persist
for a substantial period, may significantly and adversely affect our business operation and financial performance. The directors of the
Company will keep continuous attention on monitoring the latest announcement of the governments of different countries. Foreign
currency risk The
Company has minimal exposure to foreign currency risk as most of its transactions, assets and liabilities are principally denominated
the functional currency of the entity to which they are related. The Company currently does not have a foreign currency hedging policy
in respect of foreign currency transactions, assets and liabilities. The Company will monitor its foreign currency exposure closely and
will consider hedging significant foreign currency exposure should the need arise. Interest
Rate Risk The
Company is exposed to interest rate risk primarily relates to the variable-rate bank loans and overdraft and is mainly concentrated on
the fluctuation of Hong Kong Prime Rate arising from the Company’s bank loan and overdraft. The Company has not used any derivative
instruments to mitigate its exposure associated with interest rate risk. Credit
Risk The
carrying amounts of the cash and bank balances, accounts receivables, loan receivable and other receivables included in the consolidated
balance sheet represent the Company’s maximum exposure to credit risk in relation to the Company’s financial assets. Refer
to Note 3 - “ CONCENTRATION
OF REVENUES AND COST OF GOODS SOLD” for the concentrations of credit risk on trade receivables. It
has policies in place to ensure that sales are made to customers with an appropriate credit history. The
credit risk on cash and bank balances is limited because the counterparties are banks with high credit-rating assigned by international
credit-rating agencies. The
Company considers whether there has been a significant increase in credit risk of financial assets on an ongoing basis throughout each
reporting period by comparing the risk of a default occurring as at the reporting date with the risk of default as at the date of initial
recognition. It considers available reasonable and supportive forwarding looking information. Government
grant Government
grant received by the Company consists For
the years ended September 30, 2022, 2023 and 2024, government grants in the amounts of US$ 165,493 21,641 Nil Recently
Issued Accounting Pronouncements The
Company is an “emerging growth company” (“EGC”) as defined in the Jumpstart Our Business Startups Act of 2012
(the “JOBS Act”). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the
enactment of the JOBS Act until such time as those standards apply to private companies. Other
accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material
impact on the consolidated financial statements upon adoption. The Company does not discuss recent standards that are not anticipated
to have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows or disclosures. |
