Cover
Cover | 12 Months Ended |
Sep. 30, 2023 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Financial Statement Error Correction [Flag] | false |
Document Shell Company Report | false |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | false |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Information [Line Items] | |
Entity Registrant Name | Linkage Global Inc |
Entity Central Index Key | 0001969401 |
Entity File Number | 001-41887 |
Entity Incorporation, State or Country Code | E9 |
Current Fiscal Year End Date | --09-30 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | No |
Entity Shell Company | false |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Contact Personnel [Line Items] | |
Entity Address, Address Line One | 2-23-3 Minami-Ikebukuro |
Entity Address, City or Town | Toshima-ku Tokyo |
Entity Address, Country | JP |
Entity Address, Postal Zip Code | 171-0022 |
Entity Listings [Line Items] | |
Title of 12(b) Security | Ordinary Shares, par value US$0.00025 per share |
Trading Symbol | LGCB |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 20,000,000 |
Business Contact [Member] | |
Entity Contact Personnel [Line Items] | |
Contact Personnel Name | Zhihua Wu |
Contact Personnel Email Address | zhihua_wu@linkagecc.com |
Entity Address, Address Line One | 2-23-3 Minami-Ikebukuro |
Entity Address, City or Town | Toshima-ku Tokyo |
Entity Address, Country | JP |
Entity Address, Postal Zip Code | 171-0022 |
Entity Phone Fax Numbers [Line Items] | |
City Area Code | +03 |
Local Phone Number | 5927-9261 |
Audit Information
Audit Information | 12 Months Ended |
Sep. 30, 2023 | |
Auditor [Table] | |
Auditor Name | TPS Thayer, LLC |
Auditor Firm ID | 6706 |
Auditor Location | Sugar Land, TX |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 | |
Current assets | |||
Cash and cash equivalents | $ 1,107,480 | $ 3,686,391 | |
Accounts receivable, net | 2,011,047 | 2,164,213 | |
Inventories, net | 679,732 | 339,855 | |
Deferred offering costs | 1,076,253 | ||
Deposits paid to media platforms | 3,717,773 | ||
Prepaid expenses and other current asset, net | 1,053,687 | 899,530 | |
Total current assets | 9,645,972 | 7,124,541 | |
Non-current assets | |||
Long-term investment | 145,447 | ||
Property and equipment, net | 158,642 | 1,753,012 | |
Deferred tax assets | 149,129 | ||
Right-of-use assets, net | 624,945 | ||
Other non-current assets | 54,825 | 56,231 | |
Total non-current assets | 987,541 | 1,954,690 | |
TOTAL ASSETS | 10,633,513 | 9,079,231 | |
Current liabilities | |||
Accounts payable | 1,142,667 | 518,320 | |
Accrued expenses and other current liabilities | 309,986 | 296,037 | |
Short-term debts | 103,649 | ||
Current portion of long-term debts | 535,226 | 585,630 | |
Contract liabilities | 530,488 | 445,808 | |
Lease liabilities - current | 187,214 | ||
Income tax payable | 581,235 | 467,638 | |
Total current liabilities | 4,700,420 | 3,690,914 | |
Non-current liabilities | |||
Long-term debts | 1,996,326 | 2,653,764 | |
Lease liabilities - noncurrent | 439,854 | ||
Total non-current liabilities | 2,436,180 | 2,653,764 | |
Total liabilities | 7,136,600 | 6,344,678 | |
Commitments and contingencies (Note 19) | |||
Shareholders’ equity | |||
Ordinary shares (par value of US$0.00025 per share; 200,000,000 ordinary shares authorized, 20,000,000 ordinary shares issued and outstanding as of September 30, 2023 and 2022, respectively)* | [1] | 5,000 | 5,000 |
Additional paid in capital | 1,549,913 | 119,301 | |
Statutory reserve | 11,348 | ||
Retained earnings | 2,052,553 | 2,716,629 | |
Accumulated other comprehensive loss | (121,901) | (106,377) | |
Total shareholders’ equity | 3,496,913 | 2,734,553 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 10,633,513 | 9,079,231 | |
Related Party | |||
Current assets | |||
Amounts due from related parties | 34,552 | ||
Current liabilities | |||
Amounts due to related parties | $ 1,413,604 | $ 1,273,832 | |
[1]The shares and per share information are presented on a retroactive basis to reflect the reorganization completed on February 17, 2023 and share split occurred on March 20, 2023 (Note 14). |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2023 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in Dollars per share) | $ 0.00025 | $ 0.00025 |
Ordinary shares, authorized | 200,000,000 | 200,000,000 |
Ordinary shares, issued | 20,000,000 | 20,000,000 |
Ordinary shares, outstanding | 20,000,000 | 20,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income/(Loss) - USD ($) | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Income Statement [Abstract] | ||||
Revenues | $ 12,733,339 | $ 22,028,303 | $ 15,466,862 | |
Cost of revenues | (10,872,484) | (18,323,802) | (12,929,580) | |
Gross profit | 1,860,855 | 3,704,501 | 2,537,282 | |
Operating expenses | ||||
General and administrative expenses | (1,373,695) | (1,047,552) | (625,014) | |
Selling and marketing expenses | (595,804) | (812,062) | (928,385) | |
Research and development expenses | (588,108) | (628,350) | (102,880) | |
Gain from disposal of property and equipment | 125,804 | 193,191 | ||
Total operating expenses | (2,431,803) | (2,294,773) | (1,656,279) | |
Operating (loss)/profit | (570,948) | 1,409,728 | 881,003 | |
Other income/(expenses) | ||||
Investment income | 2,119 | 8,402 | ||
Impairment loss from equity investment | (60,046) | |||
Interest income/(expenses), net | (102,360) | (79,455) | (81,877) | |
Others, net | 14,557 | 113,658 | 54,080 | |
Total other income/(expenses), net | (145,730) | 42,605 | (27,797) | |
Income/(loss) before income taxes | (716,678) | 1,452,333 | 853,206 | |
Income tax benefit/(provision) | 63,950 | (385,958) | (101,540) | |
Net income/(loss) | (652,728) | 1,066,375 | 751,666 | |
Net income/(loss) | (652,728) | 1,066,375 | 751,666 | |
Other comprehensive income | ||||
Foreign currency translation adjustment | (15,524) | (57,722) | (31,726) | |
Total comprehensive income/(loss) attributable to the Company’s ordinary shareholders | $ (668,252) | $ 1,008,653 | $ 719,940 | |
Earnings per ordinary share attributable to ordinary shareholders | ||||
Basic (in Dollars per share) | [1] | $ (0.03) | $ 0.05 | $ 0.04 |
Weighted average number of ordinary shares outstanding | ||||
Basic (in Shares) | [1] | 20,000,000 | 20,000,000 | 20,000,000 |
[1]The shares and per share information are presented on a retroactive basis to reflect the reorganization completed on February 17, 2023 and share split occurred on March 20, 2023 (Note 14). |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income/(Loss) (Parentheticals) - $ / shares | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Income Statement [Abstract] | ||||
Diluted | [1] | $ (0.03) | $ 0.05 | $ 0.04 |
Diluted | [1] | 20,000,000 | 20,000,000 | 20,000,000 |
[1]The shares and per share information are presented on a retroactive basis to reflect the reorganization completed on February 17, 2023 and share split occurred on March 20, 2023 (Note 14). |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity - USD ($) | Ordinary shares | Additional paid-in capital | Retained earnings | Statutory reserve | Accumulated other comprehensive income(loss) | Total | ||
Balance at Sep. 30, 2020 | $ 5,000 | [1] | $ 119,301 | $ 898,588 | $ (16,929) | $ 1,005,960 | ||
Balance (in Shares) at Sep. 30, 2020 | [1] | 20,000,000 | ||||||
Net Income (loss) | [1] | 751,666 | 751,666 | |||||
Foreign currency translation adjustment | [1] | (31,726) | (31,726) | |||||
Balance at Sep. 30, 2021 | $ 5,000 | [1] | 119,301 | 1,650,254 | (48,655) | 1,725,900 | ||
Balance (in Shares) at Sep. 30, 2021 | [1] | 20,000,000 | ||||||
Net Income (loss) | [1] | 1,066,375 | 1,066,375 | |||||
Foreign currency translation adjustment | [1] | (57,722) | (57,722) | |||||
Balance at Sep. 30, 2022 | $ 5,000 | [1] | 119,301 | 2,716,629 | (106,377) | $ 2,734,553 | ||
Balance (in Shares) at Sep. 30, 2022 | 20,000,000 | [1] | 20,000,000 | |||||
Net Income (loss) | [1] | (652,728) | $ (652,728) | |||||
Contribution from shareholders | [1] | 1,430,612 | 1,430,612 | |||||
Statutory reserve | [1] | (11,348) | 11,348 | |||||
Foreign currency translation adjustment | [1] | (15,524) | (15,524) | |||||
Balance at Sep. 30, 2023 | $ 5,000 | [1] | $ 1,549,913 | $ 2,052,553 | $ 11,348 | $ (121,901) | $ 3,496,913 | |
Balance (in Shares) at Sep. 30, 2023 | 20,000,000 | [1] | 20,000,000 | |||||
[1]The shares and per share information are presented on a retroactive basis to reflect the reorganization completed on February 17, 2023 and share split occurred on March 20, 2023 (Note 14). |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income/(loss) | $ (652,728) | $ 1,066,375 | $ 751,666 |
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | |||
Provision for doubtful accounts | 116,428 | ||
Depreciation | 83,226 | 81,625 | 33,368 |
Amortization of lease right-of-use assets | 180,464 | ||
Share of profit from long-term investment | (2,119) | (8,402) | |
Disposal gain from property and equipment | (125,804) | (193,191) | |
Inventory write-downs | 19,981 | 21,282 | 72,456 |
Deferred tax expenses/(benefits) | (160,402) | 80,519 | (93,304) |
Long-term investment impairment | 60,046 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 36,738 | (910,221) | 441,890 |
Other non-current assets | (61,039) | ||
Prepaid expenses and other current asset, net | (3,871,930) | (520,377) | (154,502) |
Inventories, net | (359,859) | (78,455) | 225,582 |
Accounts payable | 624,347 | (11,703) | 32,819 |
Contract liabilities | 84,680 | 371,639 | (220,901) |
Accrued expenses and other current liabilities | (25,816) | 152,448 | 16,361 |
Amounts due from related parties | 34,552 | (40,098) | |
Amounts due to related parties | 139,772 | 946,379 | (79,142) |
Tax payable | 113,597 | 272,148 | 191,904 |
Operating lease liabilities | (178,341) | ||
Net cash provided by/(used in) operating activities | (3,883,168) | 1,168,928 | 1,218,197 |
Cash flow from investing activities | |||
Purchase of property and equipment | (12,137) | (481,391) | (3,067,173) |
Proceeds from disposal of property and equipment | 1,745,094 | 1,265,217 | |
Proceed from withdrawal of long-term investment | 93,574 | ||
Purchase of long-term investments | (40,098) | (139,393) | |
Net cash provided by/(used in) investing activities | 1,826,531 | 743,728 | (3,206,566) |
Cash flow from financing activities | |||
Proceeds from short-term debts | 160,391 | 278,787 | |
Proceeds from long-term debts | 1,238,592 | 1,167,861 | 2,589,662 |
Repayments of short-term debts | (107,963) | (280,692) | |
Repayments of long-term debts | (1,918,181) | (1,001,815) | (846,218) |
Capital contribution from shareholder | 1,430,612 | ||
Payments for deferred offering costs | (1,041,447) | ||
Net cash provided by/(used in) financing activities | (398,387) | 45,745 | 2,022,231 |
Effect of exchange rate changes | (123,887) | (51,067) | (8,604) |
Net change in cash and cash equivalents | (2,578,911) | 1,907,334 | 25,258 |
Cash and cash equivalents, beginning of the year | 3,686,391 | 1,779,057 | 1,753,799 |
Cash and cash equivalents, end of the year | 1,107,480 | 3,686,391 | 1,779,057 |
Supplemental disclosures of cash flow information: | |||
Income tax paid | 150,124 | 33,291 | 2,940 |
Interest expense paid | 65,901 | 57,776 | 46,522 |
Supplemental disclosures of non-cash activities: | |||
Obtaining right-of-use assets in exchange for operating lease liabilities | $ 805,409 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Sep. 30, 2023 | |
Organization and Principal Activities [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Linkage Global Inc (“Linkage Cayman”, or the “Company”) was incorporated as an exempted limited liability company under the laws of the Cayman Islands on March 24, 2022. The Company, through its wholly-owned subsidiaries (collectively, the “Group”), primarily engages in cross-border product sales and integrated e-commerce services (including digital marketing services, training and consulting services) for e-commerce sellers in Japan, Hong Kong and the People’s Republic of China (the “PRC” or “China”). As of the date of the financial statement, the Company’s major subsidiaries are as follows: Name Date of Incorporation Percentage of effective ownership Principal Activities Wholly owned subsidiaries Linkage Holding (Hong Kong) Limited (“Linkage Holding”)* April 13, 2022 100 % Investing holding company Extend Co., Limited (“EXTEND”) June 23, 2011 100 % Cross-border sales Linkage Electronic Commerce Limited (“Linkage Electronic”) March 11, 2022 100 % Cross-border sales HQT Network Co., Limited (“HQT NETWORK”) December 8, 2016 100 % Integrated E-commerce training services Linkage (Fujian) Network Technology Limited (“Linkage Tech” or “WFOE”) November 24, 2022 100 % Investing holding company Fujian Chuancheng Internet Technology Limited (formerly known as “Fujian Haishi Cross border Education Technology Limited”) March 2, 2021 100 % Integrated E-commerce training services Fujian Chuancheng Digital Technology Limited June 1, 2021 100 % Cross-border sales * Linkage Holding began operations since 2023 as an investing holding company. History of the Group and Reorganization The Group carried out cross-border sales and intergraded e-commerce services since June 2011 and December 2016, respectively. In anticipation of an initial public offering (“IPO”) of the Company’s equity securities in the United States capital market, Linkage Holding was incorporated by the Company in Hong Kong and Linkage Network was incorporated by Linkage Holding in Fujian, the PRC, as the Company’s direct and indirect wholly owned subsidiaries, on April 13, 2022 and November 24, 2022, respectively. In connection with the IPO, the Group undertook a reorganization of its corporate structure (the “Reorganization”) in the following steps: ● On April 30, 2022, Linkage Cayman acquired 100% of the equity interests in EXTEND from its original shareholder; ● On October 31, 2022, Linkage Holding acquired 100% of the equity interests in HQT NETWORK from its original shareholder; ● On September 28, 2022, Linkage Holding acquired 100% of the equity interests in Linkage Electronic from its original shareholder; and ● On February 17, 2023, Linkage Network acquired 100% of the equity interests in Chuancheng Digital from its original shareholders. Consequently, the Company, through a restructuring which is accounted for as a reorganization of entities under common control, became the ultimate holding company of all other entities mentioned above. The Company and its wholly-owned subsidiaries were effectively controlled by the same controlling shareholder immediately before and after the reorganization, and therefore the reorganization was accounted for as a recapitalization. As a result, the Group’s consolidated financial statements have been prepared as if the current corporate structure has been in existence throughout the periods presented. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. Use of estimates The preparation of the consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported periods in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but not limited to, the allowance for doubtful accounts receivable, inventory provision, depreciable lives and recoverability of property and equipment, and the realization of deferred income tax assets. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. Foreign currency transactions and translations The Group’s reporting currency is the United States dollars (“US$”). The functional currency of the Company and one of its subsidiaries incorporated in HK is Hong Kong dollars (“HKD”). The functional currency of the other two subsidiaries incorporated in HK is United States dollars (“US$”). The functional currency of the subsidiary which operates mainly in Japan uses Japanese Yen (“JPY”). The functional currency of the other subsidiaries which operate in China is Renminbi (“RMB”). The results of operations and the consolidated statements of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in shareholders’ equity. Gains and losses from foreign currency transactions are included in the results of operations. The value of RMB, HKD and JPY against US$ may fluctuate and is affected by, among other things, changes in the political and economic conditions. Any significant revaluation of RMB, HKD or JPY may materially affect the Company’s financial condition in terms of US$ reporting. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements: Balance sheet items, except for equity accounts: As of September 30, 2023 2022 RMB to US US$1=RMB7.2960 US$1=RMB7.1135 JPY to US US$1=JPY149.4300 US$1=JPY144.7100 HKD to US US$1=HKD7.8308 US$1=HKD7.8498 Items in the statements of income and comprehensive income, and statements of cash flows: For the Years Ended 2023 2022 RMB to US US$1=RMB7.0533 US$1=RMB6.5532 JPY to US US$1=JPY138.9277 US$1=JPY124.6952 HKD to US US$1=HKD7.8310 US$1=HKD7.8228 Cash and cash equivalents Cash and cash equivalents consist of cash on hand, the Group’s demand deposit placed with financial institutions, which have original maturities of less than three months and unrestricted as to withdrawal and use. Accounts Receivable, net Accounts receivable, net, include amounts billed and currently due from Customers (as defined below). The amounts due are stated at their net estimated realizable value. Provision for doubtful accounts is recognized when reasonable and supportable forecasts affect the expected collectability. The Group reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. The Group considers many factors in assessing the collectability such as the age of the amounts due, consideration of historical loss experience, adjusted for current conditions, forward-looking indicators, trends in customer payment frequency, and judgments about the probable effects of relevant observable data, including present and future economic conditions and the financial health of specific Customers and market sectors. The Group established standards and policies for reviewing major account exposures and concentrations of risk. The allowance for doubtful accounts as of September 30, 2023 and 2022 were $109,214 and nil For purposes of this section only, the term “Customers” shall mean (i) cross-border e-commerce sellers (both enterprises and individuals) that purchase products, e-commerce operation training, and software support services, and (ii) media that pay the Company’s subsidiaries commissions. Inventories, net Inventories, primarily consisting of finished goods, are stated at the lower of cost or net realizable value, with net realized value represented by estimated selling prices in the ordinary course of business, less reasonably predictable costs of disposal and transportation. Cost of inventory is determined using the weighted average cost method. The Group records inventory valuation allowance for obsolete inventories based upon assumptions on current and future demand forecast. The Group reviews inventory to determine whether the carrying value exceeds the estimated net realizable value. If the inventory on hand is excess of the estimated net realizable value, inventory valuation allowance is estimated and recorded by lowering the cost of inventory to the estimated net realizable value for slow-moving merchandise and damaged products, which is dependent upon factors such as historical and forecasted consumer demand. Once inventory valuation allowance is recorded, a new, lower cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Inventory valuation allowance balance as of September 30, 2023 and 2022 were $83,889 and $100,785, respectively. Deferred offering costs The Group complies with the requirement of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “Expenses of Offering”. Deferred offering costs consist of underwriting, legal, accounting and other expenses incurred through the balance sheet date that are directly related to the initial public offering. Deferred offering costs will be charged to shareholders’ equity upon the completion of the initial public offering. Property and equipment, net Property and equipment, other than freehold land, are stated at cost less accumulated depreciation and impairment, if any, and depreciated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the related assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its intended use. Estimated useful lives are as follows: Category Estimated useful lives Vehicle 4 – 6 years Office equipment 3 – 5 years Leasehold improvements Shorter of the lease term or the estimated useful life of the assets Repair and maintenance costs are charged to expenses as incurred, whereas the cost of renewals and betterment that extends the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the costs, accumulated depreciation and impairment with any resulting gain or loss recognized in the consolidated statements of income. Impairment of long-lived assets The Group 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 Group 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 Group 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 impairments of long-lived assets were recognized as of September 30, 2023 and 2022, respectively. Long-term investment For an investee over which the Group has the ability to exercise significant influence, but does not own a majority equity interest or otherwise control, the Company accounted for those using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock of the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the Group’s share of the investee’s results of operations is reported as share of losses of equity method investments in the consolidated statements of comprehensive loss. The process of assessing and determining whether impairment on an investment is other than temporary requires a significant amount of judgment. To determine whether an impairment is other than temporary, management considers whether it has the ability and intent to hold the investment until recovery and whether evidence indicating the carrying value of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the decline in value, any change in value subsequent to the period end, and forecasted performance of the investee. The allowance for equity investment loss were $55,826 and nil Fair value measurement Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs are: ● Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 — Include other inputs that are directly or indirectly observable in the marketplace. ● Level 3 — Unobservable inputs which are supported by little or no market activity. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities of the Group primarily consist of cash and cash equivalents, accounts receivable, amounts due from related parties, other receivables included in prepayments and other current assets, short-term debts, long-term debts, accounts payable, amounts due to related parties, and other payables included in accrued expenses and other current liabilities. The carrying amounts of these short-term financial instruments approximates their fair value due to their short-term nature. The long-term debts approximate their fair values, because the bearing interest rate approximates market interest rate, and market interest rates have not fluctuated significantly since the commencement of loan contracts signed. The Group’s non-financial assets, such as property and equipment, would be measured at fair value only if they were determined to be impaired. Commitments and contingencies In the normal course of business, the Group is subject to commitments and contingencies, including operating 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 Group recognizes a 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 Group may consider many factors in making these assessments on liability for contingencies, including historical and the specific facts and circumstances of each matter. Revenue recognition The Group’s revenues are mainly generated from (i) cross-border sales, (ii) integrated e-commerce services. The Group recognizes revenue pursuant to ASC 606, Revenue from Contracts with Customers (“ASC 606”). In accordance with ASC 606, revenues from contracts with Customers are recognized when control of the promised goods or services is transferred to the Group’s Customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services, reduced by estimates for return allowances, promotional discounts, rebates and business tax and Value Added Tax (“VAT”). To achieve the core principle of this standard, the Group applied the following five steps: 1. Identification of the contract, or contracts, with the Customer; 2. Identification of the performance obligations in the contract; 3. Determination of the transaction price; 4. Allocation of the transaction price to the performance obligations in the contract; and 5. Recognition of the revenue when, or as, a performance obligation is satisfied. Each of our significant performance obligations and our application of ASC 606 to our revenue arrangements are discussed in further detail below. Cross-border sales The Group engages in the sale of food, beauty products, health products and other consumer products in Asia, by exploiting its advantages in global supply chain services and networks. The Group fulfils its performance obligation by transferring products to the designated location. In accordance with the Group’s customary business practices, for international sales, the delivery term is “Cost and Freight” (“CFR”, formerly known as “C&F”, which the seller bears the freight costs) and “Free on Board” (“FOB”, which the buyer bears the freight costs) shipping point. The majority of transactions were based on FOB. Under both delivery terms, once the products are loaded on board, control of products has transferred. Since shipping activities are performed after customers obtain control of the products, the Group elects to account for shipping as activities to fulfill the promise to transfer the goods, in accordance with ASC 606-10-25-18B. Therefore, freight costs are accrued when products are delivered to the designated location, before shipping activities occur. For the remaining domestic sales, the control of products has transferred upon the time when the products are delivered to the place designated by customers. Shipping activities are performed before customers obtain control of the goods, and hence, should not be considered a separate performance obligation. As a result, both cost of goods and freight costs are recognized at the same time when products are delivered to the designated location, after shipping activities are completed. Revenue generated from cross-border sales is recognized based on the product value specified in the contract at a point in time when the control of products has transferred for both international sales and domestic sales. For products shipped directly from suppliers to customers, pursuant to ASC 606-10-55-37A(a), the Group concludes that it obtains control the of the products as the Group is primarily responsible for the contract and has pricing discretion. The Group is primarily responsible for the contract as it has the supplier discretion when executing orders and it is the only party that has a contractual relationship with customers. The Group establishes and obtains substantially all of the benefits from transactions, i.e. considerations paid by customers. Therefore, the Group considers itself to be the principal in the transactions on the basis that it is primary responsible to fulfill the promise and has the price discretion, pursuant to ASC 606-10-55-39. For products shipped from the Group to customers, the Group considers itself the principal because it is in control of establishing the transaction price, arranging the whole process of transactions and bearing inventory risk. Therefore, such revenues are reported on a gross basis. Integrated e-commerce services The Group partners with premium social media platforms and provides digital marketing solutions to meet the needs of Customers and other cross-border e-commerce sellers and suppliers (the “Merchants”). For digital marketing services, the Group acts as an authorized agent advocating Merchants to display ads on social media platforms. In return, the Group receives commission from social media platforms. Over the contract period, the Group continues to receive commissions from social media platforms over the contractual period when Merchants placed ads on the social media platforms. Revenue from digital marketing services is recognized over the contractual period for actual qualifying ads placed calculated by social media platforms. The Group has adopted “right to invoice” practical expedient and recognizes revenues based on quarterly billing reports received from social media platforms. The Group considers itself the agent because it is not primarily responsible for fulfilling the promise to render digital marketing services. Therefore, such revenues are reported on a net basis. During the reporting period, all the revenue of the digital marketing services was generated from the Group acting as an authorized agent on behalf of social media platforms. For other integrated e-commerce services revenue is generated from e-commerce related training/consulting services. The Group fulfils its performance obligation by providing e-commerce related training/consulting services, and revenue is recognized over the service period. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to Customers. Accounts receivable represent revenue recognized for the amounts invoiced and/or prior to invoicing when the Group has satisfied its performance obligation and has unconditional right to the payment. Contract assets represent the Group’s right to consideration in exchange for goods or services that the Group has transferred to a customer. The Group has no contract assets as of September 30, 2023, 2022 and 2021. The contract liabilities consist of deferred revenue, which represent the billings or cash received for services in advance of revenue recognition and is recognized as revenue when all of the Group’s revenue recognition criteria are met. The Group’s deferred revenue which primarily arises from cross-border sales amounted to $530,488 and $445,808 as of September 30, 2023 and 2022, respectively. Revenue recognized in the current reporting period that were included in the contract liabilities at the beginning of the reporting period was $445,808. The Group expects to recognize this balance as revenue over the next 12 months. Cost of revenues Cost of revenues consists primarily of (i) cost of goods sold for cross-border sales; and (ii) commission costs for digital marketing services. Research and development expenses Research and development expenses consist primarily of (i) payroll and related expenses for research and development professionals; and (ii) technology services fee. Research and development expenses are expensed as incurred. Selling and marketing expenses Selling and marketing expenses mainly consist of (i) salary and social welfare expenses; (ii) freight; and (iii) the advertising costs and market promotion expenses. The advertising costs and market promotion expenses were $5,733, $133,160 and $286,190 for the years ended September 30, 2023, 2022 and 2021, respectively. The advertising costs and market promotion expenses are expensed as incurred. The freight for sales of goods was included in selling and marketing expenses. The freight costs are expenses when incurred. The freight costs were $118,647, $275,211 and $ 213,687 for the years ended September 30, 2023, 2022 and 2021, respectively. General and administrative expenses General and administrative expenses mainly consist of (i) salary and social welfare expenses; (ii) rental cost for offices; and (iii) depreciation expenses. Employee benefits The Company’s subsidiaries participate in a government mandated, multiemployer, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. PRC labor laws require the entities incorporated in the PRC to pay to the local labor bureau a monthly contribution calculated at a stated contribution rate on the monthly basic compensation of qualified employees. The Group has no further commitments beyond its monthly contribution. Employee social benefits included in research and development expenses, selling and marketing expenses and general and administrative expenses in the accompanying consolidated statements of comprehensive income amounted to $141,702, $39,490 and $33,888 for the years ended September 30, 2023, 2022 and 2021, respectively. Leases On October 1, 2022, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Lease (FASB ASC Topic 842), using the non-comparative transition option pursuant to ASU 2018-11. Therefore, the Company has not restated comparative period financial information for the effects of ASC 842, and will not make the new required lease disclosures for comparative periods beginning before October 1, 2022. The adoption of Topic 842 resulted in the presentation of operating lease right-of-use (“ROU”) assets and operating lease liabilities on the consolidated balance sheet. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease; (2) lease classification for any expired or existing leases as of the adoption date; and (3) initial direct costs for any expired or existing leases as of the adoption date. Lastly, the Company elected the short-term lease exemption for all contracts with lease terms of 12 months or less. The Company recognizes lease expense for short-term leases on a straight-line basis over the lease term. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the remaining future minimum lease payments. As the interest rate implicit in the Company’s leases is not readily determinable, the Company utilizes its incremental borrowing rate, determined by class of underlying asset, to discount the lease payments. The operating lease right-of-use assets also include lease payments made before commencement and exclude lease incentives. Some of the Company’s lease agreements contained renewal options; however, the Company did not recognize right-of-use assets or lease liabilities for renewal periods unless it was determined that the Company was reasonably certain of renewing the lease at inception or when a triggering event occurred. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company’s lease agreements did not contain any material residual value guarantees or material restrictive covenants. Income taxes Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from, or paid to, the tax authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the end of the reporting period. The Group accounts for income taxes under ASC 740, Income taxes (“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 (“Temporary differences”). 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. Deferred tax is calculated at the tax rates that are expected to apply in the periods in which the asset or liability will be settled, based on rates enacted or substantively enacted at the end of the reporting period. 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. Guidance was also provided on derecognition 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, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating uncertain tax positions and determining provision for income taxes. The Group did not recognize any significant interest and penalties associated with uncertain tax positions for the years ended September 30, 2023, 2022 and 2021, respectively. As of September 30, 2023, 2022 and 2021, the Group did not have any significant unrecognized uncertain tax positions. The Group does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months. VAT The Company’s PRC subsidiaries are subject to VAT and related surcharges on revenue generated from sales of products, facilitation services and platform services. The Group records revenue net of VAT. This VAT may be offset by qualified input VAT paid by the Group to suppliers. Net VAT balance between input VAT and output VAT is recorded in the line item of other current assets on the consolidated balance sheets. The VAT rate is 13% for taxpayers selling consumer products, and 16% prior to April 1, 2019. For revenue generated from services, the VAT rate is 6% depending on whether the entity is a general tax payer, and related surcharges on revenue generated from providing services. Entities that are VAT general taxpayers are allowed to offset qualified input VAT, paid to suppliers against their output VAT liabilities. Consumption tax The Japanese subsidiary is subject to consumption tax. The Consumption Tax Act (Act No. 108 of December 30, 1988, as amended) provides for a multi-step, broad-based tax imposed on most transactions in goods and services in Japan. Consumption tax is assessed at each stage of the manufacturing, importing, wholesale, and retail process. The current consumption tax rate is generally 10%, with an 8% rate applying to a limited number of exceptions. Government subsidies Government subsidies consist of cash subsidies received by the Group from the PRC local governments. Grants received as incentives for conducting business in certain local districts with no performance obligation or other restriction as to the use are recognized when cash is received. Grants received with government specified performance obligations are recognized when all the obligations have been fulfilled. Government grants received related to the purchases of long-term assets are used to net the cost of the respective assets. The Group recorded government subsidies of $1,314, $3,441 and nil Statutory reserves In accordance with the Companies Law of the People’s Republic of China, the Company’s PRC subsidiaries must make appropriations from their after-tax profits as determined under the generally accepted accounting principles in the PRC (“PRC GAAP”) to non-distributable reserve funds including statutory surplus fund and discretionary surplus fund. The appropriation to the statutory surplus fund must be 10% of the after-tax profits as determined under PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the PRC companies. Appropriation to the discretionary surplus fund is made at the discretion of the PRC companies. The statutory surplus fund and discretionary surplus fund are restricted for use. They may only be applied to offset losses or increase the registered capital of the respective companies. These reserves are not allowed to be transferred to the Company by way of cash dividends, loans or advances, nor can they be distributed except for liquidation. For the years ended September 30, 2023, 2022, and 2021, $11,348, nil nil Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, Earnings per Share (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS are computed by dividing income available to ordinary shareholders of the Company by the weighted average ordinary shares outstanding during the period. Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares. As of September 30, 2023, 2022 and 2021, there was no dilution impact. Segment reporting Operating segments are defined as components of an enterprise engaging in businesses activities for which separate financial information is available that is regularly evaluated by the Group’s chief operating decision makers (“CODM”) in deciding how to allocate resources and assess performance. The Group’s chief operating decision maker, CEO, reviews segment results when making decisions about allocating resources and assessing performance of the Group. As a result of the assessment made by CODM, the Group has two operating segments: EXTEND, and other subsidiaries. The Group considers a “management approach” concept as the basis for identifying reportable segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Group’s reportable segments are business units operate in different countries. EXTEND operates in Japan, which is subject to different regulatory environ |
Segment Information
Segment Information | 12 Months Ended |
Sep. 30, 2023 | |
Segment Information [Abstract] | |
SEGMENT INFORMATION | 3. SEGMENT INFORMATION The CODMs review financial information of operating segments based on internal management report when making decisions about allocating resources and assessing the performance of the Group. As a result of the assessment made by CODMs, the Group has two reportable segments, including EXTEND from Japan, and other subsidiaries from Hong Kong and PRC. The Group’s CODMs evaluate performance based on the operating segment’s revenue and their operating results. The revenue and operating results by segments were as follows: For the Year ended EXTEND Other subsidiaries Consolidated Revenues from external Customers $ 8,749,200 $ 3,984,139 $ 12,733,339 Segment income before tax $ (435,557 ) $ (281,121 ) $ (716,678 ) For the Year ended EXTEND Other Consolidated Revenues from external Customers $ 16,515,393 $ 5,512,910 $ 22,028,303 Segment income before tax $ 273,508 $ 1,178,825 $ 1,452,333 For the Year ended EXTEND Other subsidiaries Consolidated Revenues from external Customers $ 12,352,979 $ 3,113,883 $ 15,466,862 Segment income before tax $ (253,519 ) $ 1,106,725 $ 853,206 The total assets from continuing operations by segments as of September 30, 2023, 2022 and 2021 were as follows: As of September 30, 2023 2022 2021 Segment assets EXTEND $ 3,638,188 $ 3,886,339 $ 5,310,984 Other subsidiaries 6,995,325 5,192,892 2,219,557 Total segment assets $ 10,633,513 $ 9,079,231 $ 7,530,541 The property and equipment, net from continuing operations by segments as of September 30, 2023, 2022 and 2021 were as follows: As of September 30, 2023 2022 2021 Property and equipment, net EXTEND $ 11,708 $ 1,549,102 $ 3,062,407 Other subsidiaries 146,934 203,910 5,036 Total property and equipment, net $ 158,642 $ 1,753,012 $ 3,067,443 The right-of-use assets, net from continuing operations by segments as of September 30, 2023, 2022 and 2021 were as follows: As of September 30, 2023 2022 2021 Right-of-use assets, net EXTEND $ 116,015 $ — $ — Other subsidiaries 508,930 — — Total right-of-use assets, net $ 624,945 $ — $ — |
Revenue
Revenue | 12 Months Ended |
Sep. 30, 2023 | |
Revenue [Abstract] | |
REVENUE | 4. REVENUE The following table disaggregates the Group’s revenue for the years ended September 30, 2023, 2022 and 2021: For the Years Ended 2023 2022 2021 By revenue streams Cross-border sales $ 10,587,053 $ 17,907,407 $ 12,417,033 Integrated e-commerce services Digital marketing services 1,527,247 3,945,353 3,046,565 Others 619,039 175,543 3,264 Total $ 12,733,339 $ 22,028,303 $ 15,466,862 |
Inventories, Net
Inventories, Net | 12 Months Ended |
Sep. 30, 2023 | |
Inventories, Net [Abstract] | |
INVENTORIES, NET | 5. INVENTORIES, NET Inventories consisted of the following: As of September 30, 2023 2022 Finished goods $ 763,621 $ 440,640 Inventory valuation allowance (83,889 ) (100,785 ) Inventories, net $ 679,732 $ 339,855 Movement of inventory valuation allowance is as follows: As of September 30, 2023 2022 Balance at the beginning of the year $ 100,785 $ 149,837 Addition 19,982 21,282 Write-offs (34,732 ) (38,301 ) Foreign currency translation adjustment (2,146 ) (32,033 ) Balance at the end of the year $ 83,889 $ 100,785 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets, Net | 12 Months Ended |
Sep. 30, 2023 | |
Prepaid Expenses and Other Current Assets, Net [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET | 6. PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET Prepayments and other current assets, net consist of the following: As of September 30, 2023 2022 Tax refunds (1) $ 512,292 532,149 Deposits 204,652 187,691 Advance to suppliers 324,243 104,922 Prepaid expenses 8,224 71,348 Others 4,276 3,420 Prepayments and other current assets, net $ 1,053,687 899,530 (1) Tax refunds consist of consumption tax and value-added tax refund for export business. The Group is eligible for consumption tax and value-added tax refund for cross-border products sales in Japan and China. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Sep. 30, 2023 | |
Property and Equipment, Net [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 7. PROPERTY AND EQUIPMENT, NET Property and equipment, net, consists of the following: As of September 30, 2023 2022 Cost Office equipment $ 29,498 $ 17,814 Vehicle 307,102 315,561 Buildings — 391,087 Leasehold improvement 9,955 10,280 Land property right — 1,143,716 346,555 1,878,458 Less: accumulated depreciation and amortization (187,913 ) (125,446 ) Property and equipment, net $ 158,642 $ 1,753,012 (1) Depreciation expense was $83,226, $81,625 and $33,368 for the years ended September 30, 2023, 2022 and 2021, respectively. (2) In October 2022, EXTEND disposed one building and associated land in Tokyo, Japan for which the carrying value was $ 392,654 and $1,191,319, respectively. EXTEND received proceeds of $ 1,745,094 from the disposal, net off commission fees paid to agents, resulting in disposal gain of $125,804. (3) No impairment loss was recognized for the years ended September 30, 2023, 2022 and 2021. (4) As of September 30, 2023 and 2022, a vehicle, owned by Chuancheng Digital, for which the carrying value was $130,533 and $191,260, was pledged to secure a long-term loan from a financial institution. |
Long-Term Investment
Long-Term Investment | 12 Months Ended |
Sep. 30, 2023 | |
Long-Term Investment [Abstract] | |
LONG-TERM INVESTMENT | 8. LONG-TERM INVESTMENT As of September 30, As of September 30, $ Interest % $ Interest % Equity method investment Ishiyama Real Estate Co. Ltd. 55,826 25.00 % 145,447 25.00 % Less: impairment loss allowance (55,826 ) — Equity method investment, net — 145,447 On September 14, 2021, EXTEND established Ishiyama Real Estate Co. Ltd. (“Ishiyama”) with other investors and obtained a 25% of equity interest in Ishiyama with an initial investment of JPY20,000,000, or $182,382. The initial investment was fully paid on November 24, 2021. In June 2023, EXTEND and other shareholders of Ishiyama decided to cease the operation and retrieve each of their own initial investment in proportion. As of September 30, 2023, EXTEND has withdrew JPY13,000,000, or $93,574. The impairment loss was $55,826 and nil The Group applies the equity method of accounting to equity investments, over which it has significant influence but does not own a majority equity interest or otherwise control. Under the equity method, the Group initially records its investment at cost. The Group subsequently adjusts the carrying amount of the investment to recognize the Group’s proportionate share of each equity investee’s net income or loss into consolidated statements of operations and comprehensive income/(loss) after the date of initial measurement. For the years ended September 30, 2023, 2022 and 2021, the Group recognized its proportionate share of the equity investee’s net income into (loss)/earnings in the amount of $2,119, $8,402 and nil |
Leasing
Leasing | 12 Months Ended |
Sep. 30, 2023 | |
Leasing [Abstract] | |
LEASING | 9. LEASING The Group has operating leases for offices and warehouses. The Group recognized right-of-use assets of $624,945 and corresponding lease liabilities-current of $187,214, and lease liabilities-noncurrent of $439,854, as of September 30, 2023. The weighted average remaining lease term was approximately 6.08 years as of September 30, 2023, and the weighted average discount rate was 3.65% for the year ended September 30, 2023. Lease expenses were $191,270 for the year ended September 30, 2023. The maturities of lease liabilities in accordance with Leases (ASC 842) in each of the next five years as of September 30, 2023 were as follows: USD 2024 207,808 2025 148,045 2026 133,479 2027 119,184 2028 71,510 Total minimum lease payments 680,027 Less: Interest (52,959 ) Present value of lease obligations 627,068 Less: Current portion 187,214 Non - current portion of lease obligations 439,854 |
Short-Term Debts
Short-Term Debts | 12 Months Ended |
Sep. 30, 2023 | |
Short-Term Debts [Abstract] | |
SHORT-TERM DEBTS | 10. SHORT-TERM DEBTS As of September 30, 2023 and 2022, the short-term debts were for working capital purposes. Short-term debts consist of the following: Bank Annual Maturity As of September 30, 2023 As of September 30, 2022 USD USD Gunma Bank 1.50 % 27/06/2022 25/06/2023 — 103,649 — 103,649 The short-term debts as of September 30, 2022 were primarily obtained from one bank with interest rate 1.50% per annum. The interest expenses were $543, $506 and $2,773 for the years ended September 30, 2023, 2022 and 2021, respectively. The weighted average interest rate of short-term debt outstanding was 1.50% per annum as of September 30, 2022. |
Long-Term Debts
Long-Term Debts | 12 Months Ended |
Sep. 30, 2023 | |
Long-Term Debts [Abstract] | |
LONG-TERM DEBTS | 11. LONG-TERM DEBTS As of September 30, 2023 and 2022, long-term debts consist of the following: As of September 30, As of September 30, Bank and other financial institution Annual Start End Long- Long- Long- Long- Pledge USD USD Shinhan Bank Japan 1.90 % 16/04/2021 16/04/2024 — — 989,428 48,095 The Shoko Chukin Bank 1.50 % 09/05/2019 25/04/2024 — 26,768 27,641 41,462 The Shoko Chukin Bank 1.11 % 26/05/2020 25/04/2030 113,070 20,237 137,655 20,897 The Shoko Chukin Bank 1.50 % 04/02/2022 27/01/2025 20,879 67,456 91,217 69,657 Mizuho Bank 0.83 % 25/03/2020 25/03/2025 6,572 13,411 20,634 13,848 Mizuho Bank 2.00 % 01/06/2021 01/06/2031 135,515 20,076 160,666 20,731 Kiraboshi Bank 0.50 % 03/04/2020 31/03/2030 — — 269,505 41,462 Japan Finance Corporation 1.11 % 16/07/2020 30/06/2030 194,071 36,539 235,229 34,828 Musashino Bank 1.50 % 31/05/2022 02/06/2025 44,489 72,556 120,862 63,396 Japan Finance Corporation 0.46 % 09/06/2020 20/04/2030 114,783 20,558 139,755 21,229 Japan Finance Corporation 0.38 % 23/04/2021 20/03/2031 44,369 7,395 52,864 7,050 Kiraboshi Bank 0.50 % 27/06/2023 30/05/2032 351,335 43,499 — — Caizhi Linghang (Xiamen) Investment Management Co., Ltd 3.75 % 01/11/2022 31/10/2027 779,879 — — — Zhongli International Financial Leasing Co. LTD 14.56 % 11/08/2022 15/08/2025 125,640 137,061 269,441 140,578 Zhongli International Financial Leasing Co. LTD 13.63 % 26/07/2022 26/07/2025 65,724 69,670 138,867 62,397 Vehicle 1,996,326 535,226 2,653,764 585,630 The long-term debts as of September 30, 2023 were primarily obtained from five banks and two financial institutions, with interest rates ranging from 0.38% to 14.56% per annum. The long-term debts as of September 30, 2022 were primarily obtained from six banks and one financial institution, with interest rates ranging from 0.38% to 14.56% per annum. The interest expenses were $102,350, $57,270 and $43,749 for the years ended September 30, 2023, 2022 and 2021, respectively. The weighted average interest rates of long-term debts outstanding were 4.68% and 4.59% per annum as of September 30, 2023 and 2022, respectively. As of September 30, 2023 and 2022, there was no event of default on long-term debts occurred. As of September 30, 2023 and September 30, 2022, no long-term debts was guaranteed by the Company or its subsidiaries. As of September 30, 2023 and 2022, a vehicle with carrying value of $130,533 and $191,260 was pledged against one long-term debt. On January 17, 2022, the Group bought a vehicle and paid in full. On July 26, 2022, the Group entered into a loan agreement with Zhongli International Financial Leasing Co. LTD (the “Lessor”) to pledge the same vehicle and to receive RMB1,500,000 ($210,867) from the Lessor. The transaction is classified as “failed” sale and leaseback transactions, as the control of the vehicle does not transfer to the lessor. Consequently, the received consideration from the lessor is accounted for as a liability. As of September 30, 2023, the non-current portion and current portion of the liability is recorded in short-term debt ($65,724) and long-term debt ($69,670), respectively. The Group was not subject to any financial covenants as of September 30, 2023 and 2022. Debt Maturities The contractual maturities of the Group’s long-term debts as of September 30, 2023 were as follows: Principle Within 1 year $ 535,226 1 – 2 years 404,883 2 – 3 years 141,578 3 – 4 years 141,578 4 – 5 years 921,457 Over 5 years 386,830 Total $ 2,531,552 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Sep. 30, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following: As of September 30, 2023 2022 Accrued payroll and welfare $ 196,767 $ 164,421 Deposits — 80,326 Tax Payable 21,914 5,795 Accrued service fee 6,956 5,177 Accrued listing fee 39,765 — Others 44,584 40,318 $ 309,986 $ 296,037 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2023 | |
Income Taxes [Abstract] | |
INCOME TAXES | 13. INCOME TAXES Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the Cayman Islands. Hong Kong According to Tax (Amendment) (No. 3) Ordinance 2018 published by Hong Kong government, from April 1, 2018, under the two-tiered profits tax rates regime, the profits tax rate for the first HKD2 PRC Under the Enterprise Income Tax Laws of the PRC, or the EIT Laws, domestic enterprises and Foreign Investment Enterprises, or the FIEs, are usually subject to a unified 25% enterprise income tax rate, while preferential tax rates, tax holidays and tax exemption may be granted on case-by-case basis. Japan Japan has a progressive tax system, of which its corporate income tax is calculated on the estimated assessable profits for the years ended September 30, 2023, 2022 and 2021 times applicable tax rates. EXTEND is subject to national corporate income tax, inhabitant tax, and enterprise tax in Japan, which in the aggregate, resulted in the statutory income tax rate of approximately 36.8%, 37.1% and 37.1% for the years ended September 30, 2023, 2022 and 2021, respectively. The effective income tax rate was approximately 8.92%, 26.58% and 11.90% for the years ended September 30, 2023, 2022 and 2021, respectively. The income tax expenses consist of the following components: For the years ended 2023 2022 2021 Current income tax expenses 96,452 305,439 194,844 Deferred income tax expenses/(benefit) (160,402 ) 80,519 (93,304 ) Total income tax provision $ (63,950 ) $ 385,958 $ 101,540 A reconciliation between the Group’s actual provision for income taxes and the provision at Japan statutory rate is as follows: For the years ended 2023 2022 2021 (Loss)/Profit before income tax expenses $ (716,678 ) $ 1,452,333 $ 853,206 Computed income tax (benefit)/expense with statutory tax rate (263,930 ) 538,344 316,262 Effect of preferential tax rate (22,301 ) (29,148 ) (20,586 ) Impact of different tax rates in other jurisdictions (425 ) (303,869 ) (244,878 ) Non-deductible expenses 316 1,372 — Utilized tax loss (49,313 ) — — Changes in valuation allowance 271,703 179,259 50,742 Income tax (benefit)/expenses $ (63,950 ) $ 385,958 $ 101,540 As of September 30, 2023 and 2022, the significant components of the deferred tax assets are summarized below: As of September 30, 2023 2022 Deferred tax assets: Net operating loss carried forward $ 654,588 $ 242,785 Unrealized foreign exchange loss (36,521 ) (31,229 ) Total deferred tax assets 618,067 211,556 Valuation allowance (468,938 ) (211,556 ) Deferred tax assets, net of valuation allowance $ 149,129 $ — The Group operates through subsidiaries and valuation allowance is considered for each of the entities on an individual basis. The Group recorded valuation allowance against deferred tax assets of those entities that are in a cumulative financial loss position and are not forecasting profits in the near future as of September 30, 2023 and 2022. In making such determination, the Group also evaluates a variety of factors including the Group’s operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. The Group has recognized a valuation allowance of $468,938 and $211,556 for the years ended September 30, 2023 and 2022, respectively. Changes in valuation allowance are as follows: As of September 30 2023 2022 Valuation allowance: Balance at beginning of the year $ 211,556 $ 51,244 Additions 271,702 179,259 Loss utilized (49,314 ) - Exchange difference 34,994 (18,947 ) Balance at end of the year 468,938 211,556 As of September 30, 2023, net operating loss carryforwards will expire, if unused, in the following amounts: 2023 $ — 2024 — 2025 145,306 2026 510,885 2027 1,665,870 Total 2,322,061 |
Equity
Equity | 12 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
EQUITY | 14. EQUITY Ordinary Shares On March 20, 2023, a resolution of the shareholders of the Company was adopted to subdivide all of the Company’s Ordinary Shares on the basis of 1:4000. As a result of the share-split, the authorized share capital of the Company became 200,000,000 Ordinary Shares and the issued and outstanding of the number of shares reached 20,000,000 Ordinary Shares. The shares and per share information are presented on a retroactive basis to reflect the reorganization completed on February 17, 2023 and share split occurred on March 20, 2023. Statutory Reserve A portion of the Company’s operations are conducted through its PRC (excluding Hong Kong) subsidiaries, and the Company’s ability to pay dividends is primarily dependent on receiving distributions of funds from subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations, and after it has met the PRC requirements for appropriation to statutory reserves. The Company’s PRC subsidiaries are required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with the PRC GAAP. Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity’s registered capital. Appropriations to the surplus reserve are made at the discretion of the Company’s Board of Directors. Paid-in capital of subsidiaries included in the Company’s consolidated net assets are also non-distributable for dividend purposes. As a result of these PRC laws and regulations, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. As of September 30, 2023 and 2022, net assets restricted in the aggregate, which include paid-in capital, additional paid-in capital and statutory reserve funds of the Company’s subsidiaries, that are included in the Company’s consolidated net assets were approximately $1,441,960 and nil |
Others, Net
Others, Net | 12 Months Ended |
Sep. 30, 2023 | |
Others, Net [Abstract] | |
OTHERS, NET | 15. OTHERS, NET Others, net income and expense consisted of the following: For the years ended 2023 2022 2021 Rental income $ — $ 130,900 $ 120,345 Tax subsidies and deductions 14 34,886 11,622 Government subsidies 1,314 3,441 — Others income/(expenses) 13,229 (55,569 ) (77,887 ) Total $ 14,557 $ 113,658 $ 54,080 Rental income for the years ended September 30, 2022 and 2021 was generated from the operating lease of apartments located in Tokyo, Japan. There was no rental income incurred for the year ended September 30, 2023 as EXTEND disposed the building in October 2022. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 16. EARNINGS PER SHARE The following table sets forth the basic and diluted earnings per share computation and provides a reconciliation of the numerator and denominator for the years presented: As of September 30, 2023 2022 2021 Numerator: Net (loss)/income attributable to Linkage Global Inc $ (652,728 ) $ 1,066,375 751,666 Denominator: Weighted average number of ordinary shares 20,000,000 20,000,000 20,000,000 Net (loss)/income per ordinary share – Basic and diluted (0.03 ) 0.05 0.04 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 17. RELATED PARTY TRANSACTIONS Related parties The following is a list of related parties which the Group has transactions with: No. Name of Related Parties Relationship 1 Mrs. Qi Xiaoyu Shareholder of the Company 2 Mr. Fuyunishiki Ryo Director and shareholder of the Company 3 Mr. Wu Zhihua Director, CEO and shareholder of the Company 4 Ms. Wu Shunyu Department head of Digital Marketing Sales 5 Ishiyama An equity method investee of the Group Amounts due to related parties Amount due to related parties consisted of the following for the periods indicated: As of September 30, 2023 2022 2021 Mrs. Qi Xiaoyu Expenses paid on behalf of the Group $ 1,206,121 $ 935,581 $ 209,406 Mr. Fuyunishiki Ryo Expenses paid on behalf of the Group 108,002 148,704 197,160 Mr. Wu Zhihua Expenses paid on behalf of the Group — 70,289 — Ms. Wu Shunyu Expenses paid on behalf of the Group 99,481 119,258 15,033 Ishiyama Payable for subscription capital on long-term-investment — — 44,843 Total $ 1,413,604 $ 1,273,832 $ 466,442 Amounts due from related parties Amount due from related parties consisted of the following for the periods indicated: As of September 30, 2023 2022 2021 Ishiyama Expenses paid on behalf of Ishiyama $ — $ 34,552 — Related party transactions For the years ended Nature 2023 2022 2021 Expenses paid on behalf of the Group by related parties Mrs. Qi Xiaoyu $ 1,480,137 $ 1,165,096 $ 207,352 Ms. Wu Shunyu 30,222 104,225 183,156 Mr. Fuyunishiki Ryo 218,038 78,240 61,094 Mr. Wu Zhihua — 76,299 — Total $ 1,728,398 $ 1,424,460 $ 451,602 (Repayments)/Expenses paid on behalf of Ishiyama by the Group Ishiyama $ (35,990 ) $ 34,552 $ — |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Sep. 30, 2023 | |
Concentration of Credit Risk [Abstract] | |
CONCENTRATION OF CREDIT RISK | 18. CONCENTRATION OF CREDIT RISK Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of accounts receivable. The Group conducts credit evaluations of its Customers, and generally does not require collateral or other security from them. The Group evaluates its collection experience and long outstanding balances to determine the need for an allowance for doubtful accounts. The Group conducts periodic reviews of the financial condition and payment practices of its Customers to minimize collection risk on accounts receivable. The following table sets forth a summary of single Customers who represent 10% or more of the Group’s total revenue. For the years ended 2023 2022 2021 Percentage of the Group’s total revenue Customer A 11.95 % 18.03 % 19.70 % Customer B 10.73 % 17.53 % * Customer C * 10.53 % * Customer I * * 13.02 % The following table sets forth a summary of single Customers who represent 10% or more of the Group’s total accounts receivable: As of September 30, 2023 2022 Percentage of the Group’s accounts receivable Customer A * 44.98 % Customer D * 17.15 % Customer B * 12.81 % Customer E 32.10 % * Customer F 19.52 % * The following table sets forth a summary of single Customers who represent 10% or more of the Group’s total contract liabilities: As of September 30, 2023 2022 Percentage of the Group’s contract liabilities Customer G 16.72 % * Customer H * 10.61 % Customer I 26.44 % 15.08 % Customer J 13.22 % 17.29 % Customer B 28.50 % * The following table sets forth a summary of single suppliers who represent 10% or more of the Group’s total purchases: For the years ended 2023 2022 2021 Percentage of the Group’s purchase Supplier A 17.02 % 20.59 % * Supplier B 17.52 % 15.97 % 20.81 % Supplier C 11.04 % * * The following table sets forth a summary of single suppliers who represent 10% or more of the Group’s total account payable to suppliers: As of September 30, 2023 2022 Percentage of the Group’s account payable Supplier D * 15.82 % Supplier E * 24.58 % Supplier F * 16.92 % Supplier C 34.66 % * Supplier K 23.66 % * Supplier L 10.69 % * Supplier M 10.13 % * The following table sets forth a summary of single suppliers who represent 10% or more of the Group’s total advance to suppliers: As of September 30, 2023 2022 Percentage of the Group’s advance to Supplier G * 12.02 % Supplier H 22.38 % * Supplier I 18.13 % * Supplier J 12.32 % * * represent percentage less than 10% |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 19. COMMITMENTS AND CONTINGENCIES Lease Commitments The total future minimum lease payments under the non-cancellable short-term operating lease which are not included in operating lease right-of-use assets and lease liabilities, with respect to the office and the warehouse as of September 30, 2023 are payable as follows: Lease Within 1 year $ 8,073 Contingencies In the ordinary course of business, the Group may be subject to legal proceedings regarding contractual and employment relationships and a variety of other matters. The Group records contingent liabilities resulting from such claims, when a loss is assessed to be probable and the amount of the loss is reasonably estimable. In the opinion of management, there were no pending or threatened claims and litigation as of September 30, 2023 and through the issuance date of these consolidated financial statements. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 20. SUBSEQUENT EVENTS List on Nasdaq Capital Market In December, 2023, the Company completed its initial public offering and was listed on the Nasdaq Capital Market under the symbol “LGCB”. 1,500,000 ordinary shares were issued at a price of $4.00 per share for net proceeds of approximately $5.4 million, after deducting underwriting discounts, commissions and other offering expense of $0.6 million. After the initial public offering, there were 21,500,000 ordinary shares outstanding, with par value of $0.00025. The Group has evaluated subsequent events through the date these consolidated financial statements are issued on April 12, 2024. The Group did not identify any subsequent events with a material financial impact on the Group’s consolidated financial statements. |
Condensed Financial Information
Condensed Financial Information of the Parent Company | 12 Months Ended |
Sep. 30, 2023 | |
Condensed Financial Information of the Parent Company [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 21. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY Regulation S-X requires the condensed financial information of a registrant shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of the above test, restricted net assets of consolidated-subsidiaries shall mean the amount of the registrant’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party. The condensed parent company financial statements have been prepared in accordance with Rule 12-04. Schedule of Regulation S-X as the restricted net assets of the Company’s PRC subsidiary exceed 25% of the consolidated net assets of the Company. The Company performed a test on the restricted net assets of consolidated subsidiary in accordance with U.S. Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial statements for the parent company. The condensed financial information of the parent company, Linkage Cayman, has been prepared using the same accounting policies as set out in Company’s consolidated financial statements except that the parent company has used the equity method to account for its investment in its subsidiaries. The Company’s share of income and losses from its subsidiaries is reported as incomes from subsidiaries in the accompanying condensed financial information of parent company. The Company is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands. The Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the Cayman Islands. Condensed balance sheets As of September 30, 2023 2022 US$ US$ Assets Current assets Cash $ 64 $ — Deferred offering costs 47,580 — Amount due from subsidiaries 3,521,756 2,734,553 Total current assets 3,569,400 2,734,553 Total assets 3,569,400 2,734,553 Liabilities Current liabilities Accrued expenses and other current liabilities 72,276 — Amounts due to related parties 211 — Total current liabilities 72,487 — Total liabilities 72,487 — Shareholders’ equity Ordinary shares (par value of US$0.00025 per share; 200,000,000 ordinary shares authorized, 20,000,000 ordinary shares issued and outstanding as of September 30, 2023 and 2022, respectively) 5,000 5,000 Additional paid in capital 1,549,913 119,301 Statutory reserve 11,348 — Retained earnings 2,052,553 2,716,629 Accumulated other comprehensive (loss) (121,901 ) (106,377 ) Total shareholders’ equity 3,496,913 2,734,553 Total liabilities and shareholders’ equity $ 3,569,400 $ 2,734,553 Condensed statements of operations and comprehensive loss For the years ended September 30, 2023 2022 2021 US$ US$ US$ (Loss)/income before income taxes (716,678 ) 1,452,333 853,206 Income tax provision 63,950 (385,958 ) (101,540 ) Net (loss)/income (652,728 ) 1,066,375 751,666 Other comprehensive loss: Foreign currency translation difference (15,524 ) (57,722 ) (31,726 ) Total comprehensive (loss)/income (668,252 ) 1,008,653 719,940 Condensed statements of cash flows For the years ended September 30, 2023 2022 2021 US$ US$ US$ Cash flows from operating activities: Net (loss)/income (652,728 ) 1,066,375 751,666 Adjustments to reconcile net (loss)/income to net cash provided by operating activities: — — — Equity in loss/(income) of subsidiaries 652,792 (1,066,375 ) (751,666 ) Net cash provided by operating activities 64 — — Net cash provided by investing activities — — — Net cash provided by financing activities — — — Net increase/decrease in cash 64 — — Cash at beginning of year — — — Cash at end of year 64 — — |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ (652,728) | $ 1,066,375 | $ 751,666 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. |
Use of estimates | Use of estimates The preparation of the consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported periods in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but not limited to, the allowance for doubtful accounts receivable, inventory provision, depreciable lives and recoverability of property and equipment, and the realization of deferred income tax assets. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. |
Foreign currency transactions and translations | Foreign currency transactions and translations The Group’s reporting currency is the United States dollars (“US$”). The functional currency of the Company and one of its subsidiaries incorporated in HK is Hong Kong dollars (“HKD”). The functional currency of the other two subsidiaries incorporated in HK is United States dollars (“US$”). The functional currency of the subsidiary which operates mainly in Japan uses Japanese Yen (“JPY”). The functional currency of the other subsidiaries which operate in China is Renminbi (“RMB”). The results of operations and the consolidated statements of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in shareholders’ equity. Gains and losses from foreign currency transactions are included in the results of operations. The value of RMB, HKD and JPY against US$ may fluctuate and is affected by, among other things, changes in the political and economic conditions. Any significant revaluation of RMB, HKD or JPY may materially affect the Company’s financial condition in terms of US$ reporting. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements: Balance sheet items, except for equity accounts: As of September 30, 2023 2022 RMB to US US$1=RMB7.2960 US$1=RMB7.1135 JPY to US US$1=JPY149.4300 US$1=JPY144.7100 HKD to US US$1=HKD7.8308 US$1=HKD7.8498 Items in the statements of income and comprehensive income, and statements of cash flows: For the Years Ended 2023 2022 RMB to US US$1=RMB7.0533 US$1=RMB6.5532 JPY to US US$1=JPY138.9277 US$1=JPY124.6952 HKD to US US$1=HKD7.8310 US$1=HKD7.8228 |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand, the Group’s demand deposit placed with financial institutions, which have original maturities of less than three months and unrestricted as to withdrawal and use. |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable, net, include amounts billed and currently due from Customers (as defined below). The amounts due are stated at their net estimated realizable value. Provision for doubtful accounts is recognized when reasonable and supportable forecasts affect the expected collectability. The Group reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. The Group considers many factors in assessing the collectability such as the age of the amounts due, consideration of historical loss experience, adjusted for current conditions, forward-looking indicators, trends in customer payment frequency, and judgments about the probable effects of relevant observable data, including present and future economic conditions and the financial health of specific Customers and market sectors. The Group established standards and policies for reviewing major account exposures and concentrations of risk. The allowance for doubtful accounts as of September 30, 2023 and 2022 were $109,214 and nil For purposes of this section only, the term “Customers” shall mean (i) cross-border e-commerce sellers (both enterprises and individuals) that purchase products, e-commerce operation training, and software support services, and (ii) media that pay the Company’s subsidiaries commissions. |
Inventories, net | Inventories, net Inventories, primarily consisting of finished goods, are stated at the lower of cost or net realizable value, with net realized value represented by estimated selling prices in the ordinary course of business, less reasonably predictable costs of disposal and transportation. Cost of inventory is determined using the weighted average cost method. The Group records inventory valuation allowance for obsolete inventories based upon assumptions on current and future demand forecast. The Group reviews inventory to determine whether the carrying value exceeds the estimated net realizable value. If the inventory on hand is excess of the estimated net realizable value, inventory valuation allowance is estimated and recorded by lowering the cost of inventory to the estimated net realizable value for slow-moving merchandise and damaged products, which is dependent upon factors such as historical and forecasted consumer demand. Once inventory valuation allowance is recorded, a new, lower cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Inventory valuation allowance balance as of September 30, 2023 and 2022 were $83,889 and $100,785, respectively. |
Deferred offering costs | Deferred offering costs The Group complies with the requirement of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “Expenses of Offering”. Deferred offering costs consist of underwriting, legal, accounting and other expenses incurred through the balance sheet date that are directly related to the initial public offering. Deferred offering costs will be charged to shareholders’ equity upon the completion of the initial public offering. |
Property and equipment, net | Property and equipment, net Property and equipment, other than freehold land, are stated at cost less accumulated depreciation and impairment, if any, and depreciated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the related assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its intended use. Estimated useful lives are as follows: Category Estimated useful lives Vehicle 4 – 6 years Office equipment 3 – 5 years Leasehold improvements Shorter of the lease term or the estimated useful life of the assets Repair and maintenance costs are charged to expenses as incurred, whereas the cost of renewals and betterment that extends the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the costs, accumulated depreciation and impairment with any resulting gain or loss recognized in the consolidated statements of income. |
Impairment of long-lived assets | Impairment of long-lived assets The Group 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 Group 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 Group 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 impairments of long-lived assets were recognized as of September 30, 2023 and 2022, respectively. |
Long-term investment | Long-term investment For an investee over which the Group has the ability to exercise significant influence, but does not own a majority equity interest or otherwise control, the Company accounted for those using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock of the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the Group’s share of the investee’s results of operations is reported as share of losses of equity method investments in the consolidated statements of comprehensive loss. The process of assessing and determining whether impairment on an investment is other than temporary requires a significant amount of judgment. To determine whether an impairment is other than temporary, management considers whether it has the ability and intent to hold the investment until recovery and whether evidence indicating the carrying value of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the decline in value, any change in value subsequent to the period end, and forecasted performance of the investee. The allowance for equity investment loss were $55,826 and nil |
Fair value measurement | Fair value measurement Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs are: ● Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 — Include other inputs that are directly or indirectly observable in the marketplace. ● Level 3 — Unobservable inputs which are supported by little or no market activity. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities of the Group primarily consist of cash and cash equivalents, accounts receivable, amounts due from related parties, other receivables included in prepayments and other current assets, short-term debts, long-term debts, accounts payable, amounts due to related parties, and other payables included in accrued expenses and other current liabilities. The carrying amounts of these short-term financial instruments approximates their fair value due to their short-term nature. The long-term debts approximate their fair values, because the bearing interest rate approximates market interest rate, and market interest rates have not fluctuated significantly since the commencement of loan contracts signed. The Group’s non-financial assets, such as property and equipment, would be measured at fair value only if they were determined to be impaired. |
Commitments and contingencies | Commitments and contingencies In the normal course of business, the Group is subject to commitments and contingencies, including operating 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 Group recognizes a 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 Group may consider many factors in making these assessments on liability for contingencies, including historical and the specific facts and circumstances of each matter. |
Revenue recognition | Revenue recognition The Group’s revenues are mainly generated from (i) cross-border sales, (ii) integrated e-commerce services. The Group recognizes revenue pursuant to ASC 606, Revenue from Contracts with Customers (“ASC 606”). In accordance with ASC 606, revenues from contracts with Customers are recognized when control of the promised goods or services is transferred to the Group’s Customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services, reduced by estimates for return allowances, promotional discounts, rebates and business tax and Value Added Tax (“VAT”). To achieve the core principle of this standard, the Group applied the following five steps: 1. Identification of the contract, or contracts, with the Customer; 2. Identification of the performance obligations in the contract; 3. Determination of the transaction price; 4. Allocation of the transaction price to the performance obligations in the contract; and 5. Recognition of the revenue when, or as, a performance obligation is satisfied. Each of our significant performance obligations and our application of ASC 606 to our revenue arrangements are discussed in further detail below. Cross-border sales The Group engages in the sale of food, beauty products, health products and other consumer products in Asia, by exploiting its advantages in global supply chain services and networks. The Group fulfils its performance obligation by transferring products to the designated location. In accordance with the Group’s customary business practices, for international sales, the delivery term is “Cost and Freight” (“CFR”, formerly known as “C&F”, which the seller bears the freight costs) and “Free on Board” (“FOB”, which the buyer bears the freight costs) shipping point. The majority of transactions were based on FOB. Under both delivery terms, once the products are loaded on board, control of products has transferred. Since shipping activities are performed after customers obtain control of the products, the Group elects to account for shipping as activities to fulfill the promise to transfer the goods, in accordance with ASC 606-10-25-18B. Therefore, freight costs are accrued when products are delivered to the designated location, before shipping activities occur. For the remaining domestic sales, the control of products has transferred upon the time when the products are delivered to the place designated by customers. Shipping activities are performed before customers obtain control of the goods, and hence, should not be considered a separate performance obligation. As a result, both cost of goods and freight costs are recognized at the same time when products are delivered to the designated location, after shipping activities are completed. Revenue generated from cross-border sales is recognized based on the product value specified in the contract at a point in time when the control of products has transferred for both international sales and domestic sales. For products shipped directly from suppliers to customers, pursuant to ASC 606-10-55-37A(a), the Group concludes that it obtains control the of the products as the Group is primarily responsible for the contract and has pricing discretion. The Group is primarily responsible for the contract as it has the supplier discretion when executing orders and it is the only party that has a contractual relationship with customers. The Group establishes and obtains substantially all of the benefits from transactions, i.e. considerations paid by customers. Therefore, the Group considers itself to be the principal in the transactions on the basis that it is primary responsible to fulfill the promise and has the price discretion, pursuant to ASC 606-10-55-39. For products shipped from the Group to customers, the Group considers itself the principal because it is in control of establishing the transaction price, arranging the whole process of transactions and bearing inventory risk. Therefore, such revenues are reported on a gross basis. Integrated e-commerce services The Group partners with premium social media platforms and provides digital marketing solutions to meet the needs of Customers and other cross-border e-commerce sellers and suppliers (the “Merchants”). For digital marketing services, the Group acts as an authorized agent advocating Merchants to display ads on social media platforms. In return, the Group receives commission from social media platforms. Over the contract period, the Group continues to receive commissions from social media platforms over the contractual period when Merchants placed ads on the social media platforms. Revenue from digital marketing services is recognized over the contractual period for actual qualifying ads placed calculated by social media platforms. The Group has adopted “right to invoice” practical expedient and recognizes revenues based on quarterly billing reports received from social media platforms. The Group considers itself the agent because it is not primarily responsible for fulfilling the promise to render digital marketing services. Therefore, such revenues are reported on a net basis. During the reporting period, all the revenue of the digital marketing services was generated from the Group acting as an authorized agent on behalf of social media platforms. For other integrated e-commerce services revenue is generated from e-commerce related training/consulting services. The Group fulfils its performance obligation by providing e-commerce related training/consulting services, and revenue is recognized over the service period. |
Contract Balances | Contract Balances Timing of revenue recognition may differ from the timing of invoicing to Customers. Accounts receivable represent revenue recognized for the amounts invoiced and/or prior to invoicing when the Group has satisfied its performance obligation and has unconditional right to the payment. Contract assets represent the Group’s right to consideration in exchange for goods or services that the Group has transferred to a customer. The Group has no contract assets as of September 30, 2023, 2022 and 2021. The contract liabilities consist of deferred revenue, which represent the billings or cash received for services in advance of revenue recognition and is recognized as revenue when all of the Group’s revenue recognition criteria are met. The Group’s deferred revenue which primarily arises from cross-border sales amounted to $530,488 and $445,808 as of September 30, 2023 and 2022, respectively. Revenue recognized in the current reporting period that were included in the contract liabilities at the beginning of the reporting period was $445,808. The Group expects to recognize this balance as revenue over the next 12 months. |
Cost of revenues | Cost of revenues Cost of revenues consists primarily of (i) cost of goods sold for cross-border sales; and (ii) commission costs for digital marketing services. |
Research and development expenses | Research and development expenses Research and development expenses consist primarily of (i) payroll and related expenses for research and development professionals; and (ii) technology services fee. Research and development expenses are expensed as incurred. |
Selling and marketing expenses | Selling and marketing expenses Selling and marketing expenses mainly consist of (i) salary and social welfare expenses; (ii) freight; and (iii) the advertising costs and market promotion expenses. The advertising costs and market promotion expenses were $5,733, $133,160 and $286,190 for the years ended September 30, 2023, 2022 and 2021, respectively. The advertising costs and market promotion expenses are expensed as incurred. The freight for sales of goods was included in selling and marketing expenses. The freight costs are expenses when incurred. The freight costs were $118,647, $275,211 and $ 213,687 for the years ended September 30, 2023, 2022 and 2021, respectively. |
General and administrative expenses | General and administrative expenses General and administrative expenses mainly consist of (i) salary and social welfare expenses; (ii) rental cost for offices; and (iii) depreciation expenses. |
Employee benefits | Employee benefits The Company’s subsidiaries participate in a government mandated, multiemployer, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. PRC labor laws require the entities incorporated in the PRC to pay to the local labor bureau a monthly contribution calculated at a stated contribution rate on the monthly basic compensation of qualified employees. The Group has no further commitments beyond its monthly contribution. Employee social benefits included in research and development expenses, selling and marketing expenses and general and administrative expenses in the accompanying consolidated statements of comprehensive income amounted to $141,702, $39,490 and $33,888 for the years ended September 30, 2023, 2022 and 2021, respectively. |
Leases | Leases On October 1, 2022, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Lease (FASB ASC Topic 842), using the non-comparative transition option pursuant to ASU 2018-11. Therefore, the Company has not restated comparative period financial information for the effects of ASC 842, and will not make the new required lease disclosures for comparative periods beginning before October 1, 2022. The adoption of Topic 842 resulted in the presentation of operating lease right-of-use (“ROU”) assets and operating lease liabilities on the consolidated balance sheet. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease; (2) lease classification for any expired or existing leases as of the adoption date; and (3) initial direct costs for any expired or existing leases as of the adoption date. Lastly, the Company elected the short-term lease exemption for all contracts with lease terms of 12 months or less. The Company recognizes lease expense for short-term leases on a straight-line basis over the lease term. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the remaining future minimum lease payments. As the interest rate implicit in the Company’s leases is not readily determinable, the Company utilizes its incremental borrowing rate, determined by class of underlying asset, to discount the lease payments. The operating lease right-of-use assets also include lease payments made before commencement and exclude lease incentives. Some of the Company’s lease agreements contained renewal options; however, the Company did not recognize right-of-use assets or lease liabilities for renewal periods unless it was determined that the Company was reasonably certain of renewing the lease at inception or when a triggering event occurred. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company’s lease agreements did not contain any material residual value guarantees or material restrictive covenants. |
Income taxes | Income taxes Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from, or paid to, the tax authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the end of the reporting period. The Group accounts for income taxes under ASC 740, Income taxes (“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 (“Temporary differences”). 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. Deferred tax is calculated at the tax rates that are expected to apply in the periods in which the asset or liability will be settled, based on rates enacted or substantively enacted at the end of the reporting period. 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. Guidance was also provided on derecognition 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, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating uncertain tax positions and determining provision for income taxes. The Group did not recognize any significant interest and penalties associated with uncertain tax positions for the years ended September 30, 2023, 2022 and 2021, respectively. As of September 30, 2023, 2022 and 2021, the Group did not have any significant unrecognized uncertain tax positions. The Group does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months. |
VAT | VAT The Company’s PRC subsidiaries are subject to VAT and related surcharges on revenue generated from sales of products, facilitation services and platform services. The Group records revenue net of VAT. This VAT may be offset by qualified input VAT paid by the Group to suppliers. Net VAT balance between input VAT and output VAT is recorded in the line item of other current assets on the consolidated balance sheets. The VAT rate is 13% for taxpayers selling consumer products, and 16% prior to April 1, 2019. For revenue generated from services, the VAT rate is 6% depending on whether the entity is a general tax payer, and related surcharges on revenue generated from providing services. Entities that are VAT general taxpayers are allowed to offset qualified input VAT, paid to suppliers against their output VAT liabilities. |
Consumption tax | Consumption tax The Japanese subsidiary is subject to consumption tax. The Consumption Tax Act (Act No. 108 of December 30, 1988, as amended) provides for a multi-step, broad-based tax imposed on most transactions in goods and services in Japan. Consumption tax is assessed at each stage of the manufacturing, importing, wholesale, and retail process. The current consumption tax rate is generally 10%, with an 8% rate applying to a limited number of exceptions. |
Government subsidies | Government subsidies Government subsidies consist of cash subsidies received by the Group from the PRC local governments. Grants received as incentives for conducting business in certain local districts with no performance obligation or other restriction as to the use are recognized when cash is received. Grants received with government specified performance obligations are recognized when all the obligations have been fulfilled. Government grants received related to the purchases of long-term assets are used to net the cost of the respective assets. The Group recorded government subsidies of $1,314, $3,441 and nil |
Statutory reserves | Statutory reserves In accordance with the Companies Law of the People’s Republic of China, the Company’s PRC subsidiaries must make appropriations from their after-tax profits as determined under the generally accepted accounting principles in the PRC (“PRC GAAP”) to non-distributable reserve funds including statutory surplus fund and discretionary surplus fund. The appropriation to the statutory surplus fund must be 10% of the after-tax profits as determined under PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the PRC companies. Appropriation to the discretionary surplus fund is made at the discretion of the PRC companies. The statutory surplus fund and discretionary surplus fund are restricted for use. They may only be applied to offset losses or increase the registered capital of the respective companies. These reserves are not allowed to be transferred to the Company by way of cash dividends, loans or advances, nor can they be distributed except for liquidation. For the years ended September 30, 2023, 2022, and 2021, $11,348, nil nil |
Earnings per share | Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, Earnings per Share (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS are computed by dividing income available to ordinary shareholders of the Company by the weighted average ordinary shares outstanding during the period. Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares. As of September 30, 2023, 2022 and 2021, there was no dilution impact. |
Segment reporting | Segment reporting Operating segments are defined as components of an enterprise engaging in businesses activities for which separate financial information is available that is regularly evaluated by the Group’s chief operating decision makers (“CODM”) in deciding how to allocate resources and assess performance. The Group’s chief operating decision maker, CEO, reviews segment results when making decisions about allocating resources and assessing performance of the Group. As a result of the assessment made by CODM, the Group has two operating segments: EXTEND, and other subsidiaries. The Group considers a “management approach” concept as the basis for identifying reportable segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Group’s reportable segments are business units operate in different countries. EXTEND operates in Japan, which is subject to different regulatory environment than other subsidiaries which operate in the PRC and Hong Kong. |
Recent accounting pronouncements | Recent accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments — Credit Losses”, which will require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Subsequently, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, to clarify that receivables arising from operating leases are within the scope of lease accounting standards. Further, the FASB issued ASU No. 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11 and ASU 2020-02 to provide additional guidance on the credit losses standard. For all other entities, the amendments for ASU 2016-13 are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Group planned to adopt ASU 2016-13 on a modified retrospective basis since October 1, 2023. The Group evaluated that the impact of the adoption of this ASU on the Group’s consolidated financial statements was immaterial. Effective from October 1, 2022, the Group adopted ASU No. 2016-02 “Leases” (“ASC 842”) using the modified retrospective approach. The Group elected the transition package of practical expedients permitted within the standard, which allowed it not to reassess initial direct costs, lease classification, or whether the contracts contain or are leases for any leases that existed prior to January 1, 2022. The Group also elected the short-term lease exemption for all contracts with an original lease term of 12 months or less. The operating lease ROU assets include adjustments for prepayments. The adoption did not impact the Group’s beginning retained earnings as of October 1, 2022, or the Group’s prior years’ financial statements. 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 Group 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. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Organization and Principal Activities [Abstract] | |
Schedule of Company’s Major Subsidiaries | As of the date of the financial statement, the Company’s major subsidiaries are as follows: Name Date of Incorporation Percentage of effective ownership Principal Activities Wholly owned subsidiaries Linkage Holding (Hong Kong) Limited (“Linkage Holding”)* April 13, 2022 100 % Investing holding company Extend Co., Limited (“EXTEND”) June 23, 2011 100 % Cross-border sales Linkage Electronic Commerce Limited (“Linkage Electronic”) March 11, 2022 100 % Cross-border sales HQT Network Co., Limited (“HQT NETWORK”) December 8, 2016 100 % Integrated E-commerce training services Linkage (Fujian) Network Technology Limited (“Linkage Tech” or “WFOE”) November 24, 2022 100 % Investing holding company Fujian Chuancheng Internet Technology Limited (formerly known as “Fujian Haishi Cross border Education Technology Limited”) March 2, 2021 100 % Integrated E-commerce training services Fujian Chuancheng Digital Technology Limited June 1, 2021 100 % Cross-border sales * Linkage Holding began operations since 2023 as an investing holding company. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Balance Sheet Items | Balance sheet items, except for equity accounts: As of September 30, 2023 2022 RMB to US US$1=RMB7.2960 US$1=RMB7.1135 JPY to US US$1=JPY149.4300 US$1=JPY144.7100 HKD to US US$1=HKD7.8308 US$1=HKD7.8498 |
Schedule of Statements of Cash Flows | Items in the statements of income and comprehensive income, and statements of cash flows: For the Years Ended 2023 2022 RMB to US US$1=RMB7.0533 US$1=RMB6.5532 JPY to US US$1=JPY138.9277 US$1=JPY124.6952 HKD to US US$1=HKD7.8310 US$1=HKD7.8228 |
Schedule of Estimated Useful Lives | Estimated useful lives are as follows: Category Estimated useful lives Vehicle 4 – 6 years Office equipment 3 – 5 years Leasehold improvements Shorter of the lease term or the estimated useful life of the assets |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Segment Information [Abstract] | |
Schedule of Evaluate Performance Based on Operating Segment’s Revenue | The Group’s CODMs evaluate performance based on the operating segment’s revenue and their operating results. The revenue and operating results by segments were as follows: For the Year ended EXTEND Other subsidiaries Consolidated Revenues from external Customers $ 8,749,200 $ 3,984,139 $ 12,733,339 Segment income before tax $ (435,557 ) $ (281,121 ) $ (716,678 ) For the Year ended EXTEND Other Consolidated Revenues from external Customers $ 16,515,393 $ 5,512,910 $ 22,028,303 Segment income before tax $ 273,508 $ 1,178,825 $ 1,452,333 For the Year ended EXTEND Other subsidiaries Consolidated Revenues from external Customers $ 12,352,979 $ 3,113,883 $ 15,466,862 Segment income before tax $ (253,519 ) $ 1,106,725 $ 853,206 |
Schedule of Total Assets and Property and Equipment, Net from Continuing Operations by Segments | The total assets from continuing operations by segments as of September 30, 2023, 2022 and 2021 were as follows: As of September 30, 2023 2022 2021 Segment assets EXTEND $ 3,638,188 $ 3,886,339 $ 5,310,984 Other subsidiaries 6,995,325 5,192,892 2,219,557 Total segment assets $ 10,633,513 $ 9,079,231 $ 7,530,541 As of September 30, 2023 2022 2021 Property and equipment, net EXTEND $ 11,708 $ 1,549,102 $ 3,062,407 Other subsidiaries 146,934 203,910 5,036 Total property and equipment, net $ 158,642 $ 1,753,012 $ 3,067,443 As of September 30, 2023 2022 2021 Right-of-use assets, net EXTEND $ 116,015 $ — $ — Other subsidiaries 508,930 — — Total right-of-use assets, net $ 624,945 $ — $ — |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Revenue [Abstract] | |
Schedule of Disaggregates the Group’s Revenue | The following table disaggregates the Group’s revenue for the years ended September 30, 2023, 2022 and 2021: For the Years Ended 2023 2022 2021 By revenue streams Cross-border sales $ 10,587,053 $ 17,907,407 $ 12,417,033 Integrated e-commerce services Digital marketing services 1,527,247 3,945,353 3,046,565 Others 619,039 175,543 3,264 Total $ 12,733,339 $ 22,028,303 $ 15,466,862 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Inventories, Net [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: As of September 30, 2023 2022 Finished goods $ 763,621 $ 440,640 Inventory valuation allowance (83,889 ) (100,785 ) Inventories, net $ 679,732 $ 339,855 |
Schedule of Movement of Inventory Valuation Allowance | Movement of inventory valuation allowance is as follows: As of September 30, 2023 2022 Balance at the beginning of the year $ 100,785 $ 149,837 Addition 19,982 21,282 Write-offs (34,732 ) (38,301 ) Foreign currency translation adjustment (2,146 ) (32,033 ) Balance at the end of the year $ 83,889 $ 100,785 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets, Net (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Prepaid Expenses and Other Current Assets, Net [Abstract] | |
Schedule of Prepayments and Other Current Assets, Net | Prepayments and other current assets, net consist of the following: As of September 30, 2023 2022 Tax refunds (1) $ 512,292 532,149 Deposits 204,652 187,691 Advance to suppliers 324,243 104,922 Prepaid expenses 8,224 71,348 Others 4,276 3,420 Prepayments and other current assets, net $ 1,053,687 899,530 (1) Tax refunds consist of consumption tax and value-added tax refund for export business. The Group is eligible for consumption tax and value-added tax refund for cross-border products sales in Japan and China. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Property and Equipment, Net [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net, consists of the following: As of September 30, 2023 2022 Cost Office equipment $ 29,498 $ 17,814 Vehicle 307,102 315,561 Buildings — 391,087 Leasehold improvement 9,955 10,280 Land property right — 1,143,716 346,555 1,878,458 Less: accumulated depreciation and amortization (187,913 ) (125,446 ) Property and equipment, net $ 158,642 $ 1,753,012 (1) Depreciation expense was $83,226, $81,625 and $33,368 for the years ended September 30, 2023, 2022 and 2021, respectively. (2) In October 2022, EXTEND disposed one building and associated land in Tokyo, Japan for which the carrying value was $ 392,654 and $1,191,319, respectively. EXTEND received proceeds of $ 1,745,094 from the disposal, net off commission fees paid to agents, resulting in disposal gain of $125,804. (3) No impairment loss was recognized for the years ended September 30, 2023, 2022 and 2021. (4) As of September 30, 2023 and 2022, a vehicle, owned by Chuancheng Digital, for which the carrying value was $130,533 and $191,260, was pledged to secure a long-term loan from a financial institution. |
Long-Term Investment (Tables)
Long-Term Investment (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Long-Term Investment [Abstract] | |
Schedule of Long-Term Investment | LONG-TERM INVESTMENT As of September 30, As of September 30, $ Interest % $ Interest % Equity method investment Ishiyama Real Estate Co. Ltd. 55,826 25.00 % 145,447 25.00 % Less: impairment loss allowance (55,826 ) — Equity method investment, net — 145,447 |
Leasing (Tables)
Leasing (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Leasing [Abstract] | |
Schedule of Lease Expenses | Lease expenses were $191,270 for the year ended September 30, 2023. The maturities of lease liabilities in accordance with Leases (ASC 842) in each of the next five years as of September 30, 2023 were as follows: USD 2024 207,808 2025 148,045 2026 133,479 2027 119,184 2028 71,510 Total minimum lease payments 680,027 Less: Interest (52,959 ) Present value of lease obligations 627,068 Less: Current portion 187,214 Non - current portion of lease obligations 439,854 |
Short-Term Debts (Tables)
Short-Term Debts (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Short-Term Debts [Abstract] | |
Schedule of Short-Term Debts | Short-term debts consist of the following: Bank Annual Maturity As of September 30, 2023 As of September 30, 2022 USD USD Gunma Bank 1.50 % 27/06/2022 25/06/2023 — 103,649 — 103,649 |
Long-Term Debts (Tables)
Long-Term Debts (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Long-Term Debts [Abstract] | |
Schedule of Long-Term Debts | As of September 30, 2023 and 2022, long-term debts consist of the following: As of September 30, As of September 30, Bank and other financial institution Annual Start End Long- Long- Long- Long- Pledge USD USD Shinhan Bank Japan 1.90 % 16/04/2021 16/04/2024 — — 989,428 48,095 The Shoko Chukin Bank 1.50 % 09/05/2019 25/04/2024 — 26,768 27,641 41,462 The Shoko Chukin Bank 1.11 % 26/05/2020 25/04/2030 113,070 20,237 137,655 20,897 The Shoko Chukin Bank 1.50 % 04/02/2022 27/01/2025 20,879 67,456 91,217 69,657 Mizuho Bank 0.83 % 25/03/2020 25/03/2025 6,572 13,411 20,634 13,848 Mizuho Bank 2.00 % 01/06/2021 01/06/2031 135,515 20,076 160,666 20,731 Kiraboshi Bank 0.50 % 03/04/2020 31/03/2030 — — 269,505 41,462 Japan Finance Corporation 1.11 % 16/07/2020 30/06/2030 194,071 36,539 235,229 34,828 Musashino Bank 1.50 % 31/05/2022 02/06/2025 44,489 72,556 120,862 63,396 Japan Finance Corporation 0.46 % 09/06/2020 20/04/2030 114,783 20,558 139,755 21,229 Japan Finance Corporation 0.38 % 23/04/2021 20/03/2031 44,369 7,395 52,864 7,050 Kiraboshi Bank 0.50 % 27/06/2023 30/05/2032 351,335 43,499 — — Caizhi Linghang (Xiamen) Investment Management Co., Ltd 3.75 % 01/11/2022 31/10/2027 779,879 — — — Zhongli International Financial Leasing Co. LTD 14.56 % 11/08/2022 15/08/2025 125,640 137,061 269,441 140,578 Zhongli International Financial Leasing Co. LTD 13.63 % 26/07/2022 26/07/2025 65,724 69,670 138,867 62,397 Vehicle 1,996,326 535,226 2,653,764 585,630 |
Schedule of Contractual Maturities of Long Term Debts | The contractual maturities of the Group’s long-term debts as of September 30, 2023 were as follows: Principle Within 1 year $ 535,226 1 – 2 years 404,883 2 – 3 years 141,578 3 – 4 years 141,578 4 – 5 years 921,457 Over 5 years 386,830 Total $ 2,531,552 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Schedule of Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: As of September 30, 2023 2022 Accrued payroll and welfare $ 196,767 $ 164,421 Deposits — 80,326 Tax Payable 21,914 5,795 Accrued service fee 6,956 5,177 Accrued listing fee 39,765 — Others 44,584 40,318 $ 309,986 $ 296,037 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Income Taxes [Abstract] | |
Schedule of Components of Income Tax Expenses | The income tax expenses consist of the following components: For the years ended 2023 2022 2021 Current income tax expenses 96,452 305,439 194,844 Deferred income tax expenses/(benefit) (160,402 ) 80,519 (93,304 ) Total income tax provision $ (63,950 ) $ 385,958 $ 101,540 |
Schedule of Group’s Actual Provision for Income Taxes and the Provision | A reconciliation between the Group’s actual provision for income taxes and the provision at Japan statutory rate is as follows: For the years ended 2023 2022 2021 (Loss)/Profit before income tax expenses $ (716,678 ) $ 1,452,333 $ 853,206 Computed income tax (benefit)/expense with statutory tax rate (263,930 ) 538,344 316,262 Effect of preferential tax rate (22,301 ) (29,148 ) (20,586 ) Impact of different tax rates in other jurisdictions (425 ) (303,869 ) (244,878 ) Non-deductible expenses 316 1,372 — Utilized tax loss (49,313 ) — — Changes in valuation allowance 271,703 179,259 50,742 Income tax (benefit)/expenses $ (63,950 ) $ 385,958 $ 101,540 |
Schedule of Significant Components of the Deferred Tax Assets | As of September 30, 2023 and 2022, the significant components of the deferred tax assets are summarized below: As of September 30, 2023 2022 Deferred tax assets: Net operating loss carried forward $ 654,588 $ 242,785 Unrealized foreign exchange loss (36,521 ) (31,229 ) Total deferred tax assets 618,067 211,556 Valuation allowance (468,938 ) (211,556 ) Deferred tax assets, net of valuation allowance $ 149,129 $ — |
Schedule of Changes in Valuation Allowance | Changes in valuation allowance are as follows: As of September 30 2023 2022 Valuation allowance: Balance at beginning of the year $ 211,556 $ 51,244 Additions 271,702 179,259 Loss utilized (49,314 ) - Exchange difference 34,994 (18,947 ) Balance at end of the year 468,938 211,556 |
Schedule of Net Operating Loss | As of September 30, 2023, net operating loss carryforwards will expire, if unused, in the following amounts: 2023 $ — 2024 — 2025 145,306 2026 510,885 2027 1,665,870 Total 2,322,061 |
Others, Net (Tables)
Others, Net (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Others, Net [Abstract] | |
Schedule of Others, Net Income and Expense | Others, net income and expense consisted of the following: For the years ended 2023 2022 2021 Rental income $ — $ 130,900 $ 120,345 Tax subsidies and deductions 14 34,886 11,622 Government subsidies 1,314 3,441 — Others income/(expenses) 13,229 (55,569 ) (77,887 ) Total $ 14,557 $ 113,658 $ 54,080 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The following table sets forth the basic and diluted earnings per share computation and provides a reconciliation of the numerator and denominator for the years presented: As of September 30, 2023 2022 2021 Numerator: Net (loss)/income attributable to Linkage Global Inc $ (652,728 ) $ 1,066,375 751,666 Denominator: Weighted average number of ordinary shares 20,000,000 20,000,000 20,000,000 Net (loss)/income per ordinary share – Basic and diluted (0.03 ) 0.05 0.04 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Parties | The following is a list of related parties which the Group has transactions with: No. Name of Related Parties Relationship 1 Mrs. Qi Xiaoyu Shareholder of the Company 2 Mr. Fuyunishiki Ryo Director and shareholder of the Company 3 Mr. Wu Zhihua Director, CEO and shareholder of the Company 4 Ms. Wu Shunyu Department head of Digital Marketing Sales 5 Ishiyama An equity method investee of the Group |
Schedule of Amount Due to Related Parties | Amount due to related parties consisted of the following for the periods indicated: As of September 30, 2023 2022 2021 Mrs. Qi Xiaoyu Expenses paid on behalf of the Group $ 1,206,121 $ 935,581 $ 209,406 Mr. Fuyunishiki Ryo Expenses paid on behalf of the Group 108,002 148,704 197,160 Mr. Wu Zhihua Expenses paid on behalf of the Group — 70,289 — Ms. Wu Shunyu Expenses paid on behalf of the Group 99,481 119,258 15,033 Ishiyama Payable for subscription capital on long-term-investment — — 44,843 Total $ 1,413,604 $ 1,273,832 $ 466,442 |
Schedule of Due from Related Parties | Amount due from related parties consisted of the following for the periods indicated: As of September 30, 2023 2022 2021 Ishiyama Expenses paid on behalf of Ishiyama $ — $ 34,552 — |
Schedule of Related Party Transactions | Related party transactions For the years ended Nature 2023 2022 2021 Expenses paid on behalf of the Group by related parties Mrs. Qi Xiaoyu $ 1,480,137 $ 1,165,096 $ 207,352 Ms. Wu Shunyu 30,222 104,225 183,156 Mr. Fuyunishiki Ryo 218,038 78,240 61,094 Mr. Wu Zhihua — 76,299 — Total $ 1,728,398 $ 1,424,460 $ 451,602 (Repayments)/Expenses paid on behalf of Ishiyama by the Group Ishiyama $ (35,990 ) $ 34,552 $ — |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Concentration of Credit Risk [Abstract] | |
Schedule of Single Customers Total Revenue | For the years ended 2023 2022 2021 Percentage of the Group’s total revenue Customer A 11.95 % 18.03 % 19.70 % Customer B 10.73 % 17.53 % * Customer C * 10.53 % * Customer I * * 13.02 % As of September 30, 2023 2022 Percentage of the Group’s accounts receivable Customer A * 44.98 % Customer D * 17.15 % Customer B * 12.81 % Customer E 32.10 % * Customer F 19.52 % * As of September 30, 2023 2022 Percentage of the Group’s contract liabilities Customer G 16.72 % * Customer H * 10.61 % Customer I 26.44 % 15.08 % Customer J 13.22 % 17.29 % Customer B 28.50 % * For the years ended 2023 2022 2021 Percentage of the Group’s purchase Supplier A 17.02 % 20.59 % * Supplier B 17.52 % 15.97 % 20.81 % Supplier C 11.04 % * * As of September 30, 2023 2022 Percentage of the Group’s account payable Supplier D * 15.82 % Supplier E * 24.58 % Supplier F * 16.92 % Supplier C 34.66 % * Supplier K 23.66 % * Supplier L 10.69 % * Supplier M 10.13 % * As of September 30, 2023 2022 Percentage of the Group’s advance to Supplier G * 12.02 % Supplier H 22.38 % * Supplier I 18.13 % * Supplier J 12.32 % * * represent percentage less than 10% |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
Schedule of Future Minimum Lease Payments | The total future minimum lease payments under the non-cancellable short-term operating lease which are not included in operating lease right-of-use assets and lease liabilities, with respect to the office and the warehouse as of September 30, 2023 are payable as follows: Lease Within 1 year $ 8,073 |
Condensed Financial Informati_2
Condensed Financial Information of the Parent Company (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Condensed Financial Information of the Parent Company [Abstract] | |
Condensed balance sheets | As of September 30, 2023 2022 US$ US$ Assets Current assets Cash $ 64 $ — Deferred offering costs 47,580 — Amount due from subsidiaries 3,521,756 2,734,553 Total current assets 3,569,400 2,734,553 Total assets 3,569,400 2,734,553 Liabilities Current liabilities Accrued expenses and other current liabilities 72,276 — Amounts due to related parties 211 — Total current liabilities 72,487 — Total liabilities 72,487 — Shareholders’ equity Ordinary shares (par value of US$0.00025 per share; 200,000,000 ordinary shares authorized, 20,000,000 ordinary shares issued and outstanding as of September 30, 2023 and 2022, respectively) 5,000 5,000 Additional paid in capital 1,549,913 119,301 Statutory reserve 11,348 — Retained earnings 2,052,553 2,716,629 Accumulated other comprehensive (loss) (121,901 ) (106,377 ) Total shareholders’ equity 3,496,913 2,734,553 Total liabilities and shareholders’ equity $ 3,569,400 $ 2,734,553 |
Condensed statements of operations and comprehensive loss | For the years ended September 30, 2023 2022 2021 US$ US$ US$ (Loss)/income before income taxes (716,678 ) 1,452,333 853,206 Income tax provision 63,950 (385,958 ) (101,540 ) Net (loss)/income (652,728 ) 1,066,375 751,666 Other comprehensive loss: Foreign currency translation difference (15,524 ) (57,722 ) (31,726 ) Total comprehensive (loss)/income (668,252 ) 1,008,653 719,940 |
Condensed statements of cash flows | For the years ended September 30, 2023 2022 2021 US$ US$ US$ Cash flows from operating activities: Net (loss)/income (652,728 ) 1,066,375 751,666 Adjustments to reconcile net (loss)/income to net cash provided by operating activities: — — — Equity in loss/(income) of subsidiaries 652,792 (1,066,375 ) (751,666 ) Net cash provided by operating activities 64 — — Net cash provided by investing activities — — — Net cash provided by financing activities — — — Net increase/decrease in cash 64 — — Cash at beginning of year — — — Cash at end of year 64 — — |
Organization and Principal Ac_3
Organization and Principal Activities (Details) | Feb. 17, 2023 | Oct. 31, 2022 | Sep. 28, 2022 | Apr. 30, 2022 |
Extend [Member] | ||||
Organization and Principal Activities [Line Items] | ||||
Acquired equity interests percentage | 100% | |||
HQT Network [Member] | ||||
Organization and Principal Activities [Line Items] | ||||
Acquired equity interests percentage | 100% | |||
Linkage Electronic [Member] | ||||
Organization and Principal Activities [Line Items] | ||||
Acquired equity interests percentage | 100% | |||
Chuancheng Digital [Member] | ||||
Organization and Principal Activities [Line Items] | ||||
Acquired equity interests percentage | 100% |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of Company’s Major Subsidiaries | 12 Months Ended | |
Sep. 30, 2023 | ||
Linkage Holding Limited [Member] | ||
Wholly owned subsidiaries | ||
Date of Incorporation | Apr. 13, 2022 | [1] |
Principal Activities | Investing holding company | [1] |
Linkage Holding Limited [Member] | Percentage of effective ownership [Member] | ||
Wholly owned subsidiaries | ||
Percentage of effective ownership | 100% | [1] |
Extend Co., Limited [Member] | ||
Wholly owned subsidiaries | ||
Date of Incorporation | Jun. 23, 2011 | |
Principal Activities | Cross-border sales | |
Extend Co., Limited [Member] | Percentage of effective ownership [Member] | ||
Wholly owned subsidiaries | ||
Percentage of effective ownership | 100% | |
Linkage Electronic Commerce Limited [Member] | ||
Wholly owned subsidiaries | ||
Date of Incorporation | Mar. 11, 2022 | |
Principal Activities | Cross-border sales | |
Linkage Electronic Commerce Limited [Member] | Percentage of effective ownership [Member] | ||
Wholly owned subsidiaries | ||
Percentage of effective ownership | 100% | |
HQT Network Co., Limited [Member] | ||
Wholly owned subsidiaries | ||
Date of Incorporation | Dec. 08, 2016 | |
Principal Activities | Integrated E-commerce training services | |
HQT Network Co., Limited [Member] | Percentage of effective ownership [Member] | ||
Wholly owned subsidiaries | ||
Percentage of effective ownership | 100% | |
Linkage Network Technology Limited [Member] | ||
Wholly owned subsidiaries | ||
Date of Incorporation | Nov. 24, 2022 | |
Principal Activities | Investing holding company | |
Linkage Network Technology Limited [Member] | Percentage of effective ownership [Member] | ||
Wholly owned subsidiaries | ||
Percentage of effective ownership | 100% | |
Fujian Chuancheng Internet Technology Limited [Member] | ||
Wholly owned subsidiaries | ||
Date of Incorporation | Mar. 02, 2021 | |
Principal Activities | Integrated E-commerce training services | |
Fujian Chuancheng Internet Technology Limited [Member] | Percentage of effective ownership [Member] | ||
Wholly owned subsidiaries | ||
Percentage of effective ownership | 100% | |
Fujian Chuancheng Digital Technology Limited [Member] | ||
Wholly owned subsidiaries | ||
Date of Incorporation | Jun. 01, 2021 | |
Principal Activities | Cross-border sales | |
Fujian Chuancheng Digital Technology Limited [Member] | Percentage of effective ownership [Member] | ||
Wholly owned subsidiaries | ||
Percentage of effective ownership | 100% | |
[1]Linkage Holding began operations since 2023 as an investing holding company. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |||
Apr. 01, 2019 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Summary of Significant Accounting Policies [Line Items] | ||||
Allowance for doubtful accounts | $ 109,214 | |||
Inventory valuation allowance | 83,889 | 100,785 | ||
Allowance for equity investment loss | 55,826 | |||
Contract liabilities | 530,488 | 445,808 | ||
Revenue recognized contract liabilities | 445,808 | |||
Market promotion expenses | 5,733 | 133,160 | $ 286,190 | |
Freight costs | 118,647 | 275,211 | 213,687 | |
Research and development expense | 141,702 | 39,490 | 33,888 | |
Value added tax, percentage | 13% | |||
Government subsidies | $ 1,314 | 3,441 | ||
Statutory surplus fund | 50% | |||
Statutory surplus | $ 11,348 | |||
Taxpayers Selling Consumer Products [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Value added tax, percentage | 16% | |||
Service [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Value added tax, percentage | 6% | |||
Minimum [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Consumption tax rate | 10% | |||
Statutory surplus fund | 10% | |||
Maximum [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Consumption tax rate | 8% | |||
Statutory surplus fund | 50% | |||
Voting Stock [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Ownership interest percentage | 20% | |||
Nonconsolidated Investees, Other [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Ownership interest percentage | 50% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Balance Sheet Items | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
RMB to US [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Foreign currency exchange | US$1=RMB7.2960 | US$1=RMB7.1135 |
JPY to US [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Foreign currency exchange | US$1=JPY149.4300 | US$1=JPY144.7100 |
HKD to US [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Foreign currency exchange | US$1=HKD7.8308 | US$1=HKD7.8498 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Statements of Cash Flows | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
RMB to US [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Foreign currency exchange rate | US$1=RMB7.0533 | US$1=RMB6.5532 |
JPY to US [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Foreign currency exchange rate | US$1=JPY138.9277 | US$1=JPY124.6952 |
HKD to US [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Foreign currency exchange rate | US$1=HKD7.8310 | US$1=HKD7.8228 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives | 12 Months Ended |
Sep. 30, 2023 | |
Vehicles [Member] | Minimum [Member] | |
Impaired Long-Lived Assets Held and Used [Line Items] | |
Estimated useful lives | 4 years |
Vehicles [Member] | Maximum [Member] | |
Impaired Long-Lived Assets Held and Used [Line Items] | |
Estimated useful lives | 6 years |
Office Equipment [Member] | Minimum [Member] | |
Impaired Long-Lived Assets Held and Used [Line Items] | |
Estimated useful lives | 3 years |
Office Equipment [Member] | Maximum [Member] | |
Impaired Long-Lived Assets Held and Used [Line Items] | |
Estimated useful lives | 5 years |
Leasehold Improvements [Member] | |
Impaired Long-Lived Assets Held and Used [Line Items] | |
Estimated useful lives | Shorter of the lease term or the estimated useful life of the assets |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended |
Sep. 30, 2023 | |
Segment Information [Abstract] | |
Reportable segments | 2 |
Segment Information (Details) -
Segment Information (Details) - Schedule of Evaluate Performance Based on Operating Segment’s Revenue - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Evaluate Performance Based on Operating Segment’s Revenue [Line Items] | |||
Revenues from external Customers | $ 12,733,339 | $ 22,028,303 | $ 15,466,862 |
Segment income before tax | (716,678) | 1,452,333 | 853,206 |
Extend [Member] | |||
Schedule of Evaluate Performance Based on Operating Segment’s Revenue [Line Items] | |||
Revenues from external Customers | 8,749,200 | 16,515,393 | 12,352,979 |
Segment income before tax | (435,557) | 273,508 | (253,519) |
Other Segments [Member] | |||
Schedule of Evaluate Performance Based on Operating Segment’s Revenue [Line Items] | |||
Revenues from external Customers | 3,984,139 | 5,512,910 | 3,113,883 |
Segment income before tax | $ (281,121) | $ 1,178,825 | $ 1,106,725 |
Segment Information (Details)_2
Segment Information (Details) - Schedule of Total Assets and Property and Equipment, Net from Continuing Operations by Segments - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Segment Reporting Information [Line Items] | |||
Total segment assets | $ 10,633,513 | $ 9,079,231 | $ 7,530,541 |
Total property and equipment, net | 158,642 | 1,753,012 | 3,067,443 |
Right-of-use assets, net | 624,945 | ||
EXTEND [Member] | |||
Segment Reporting Information [Line Items] | |||
Total segment assets | 3,638,188 | 3,886,339 | 5,310,984 |
Total property and equipment, net | 11,708 | 1,549,102 | 3,062,407 |
Right-of-use assets, net | 116,015 | ||
Other subsidiaries [Member] | |||
Segment Reporting Information [Line Items] | |||
Total segment assets | 6,995,325 | 5,192,892 | 2,219,557 |
Total property and equipment, net | 146,934 | 203,910 | 5,036 |
Right-of-use assets, net | $ 508,930 |
Revenue (Details) - Schedule of
Revenue (Details) - Schedule of Disaggregates the Group’s Revenue - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total | $ 12,733,339 | $ 22,028,303 | $ 15,466,862 |
Cross-Border Sales [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total | 10,587,053 | 17,907,407 | 12,417,033 |
Digital Marketing Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total | 1,527,247 | 3,945,353 | 3,046,565 |
Others [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total | $ 619,039 | $ 175,543 | $ 3,264 |
Inventories, Net (Details) - Sc
Inventories, Net (Details) - Schedule of Inventories - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Schedule of Inventories [Abstract] | |||
Finished goods | $ 763,621 | $ 440,640 | |
Inventory valuation allowance | (83,889) | (100,785) | $ (149,837) |
Inventories, net | $ 679,732 | $ 339,855 |
Inventories, Net (Details) - _2
Inventories, Net (Details) - Schedule of Movement of Inventory Valuation Allowance - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Movement of Inventory Valuation Allowance [Abstract] | ||
Balance at the beginning of the year | $ 100,785 | $ 149,837 |
Addition | 19,982 | 21,282 |
Write-offs | (34,732) | (38,301) |
Foreign currency translation adjustment | (2,146) | (32,033) |
Balance at the end of the year | $ 83,889 | $ 100,785 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets, Net (Details) - Schedule of Prepayments and Other Current Assets, Net - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule Of Prepayments And Other Current Assets Net Abstract | |||
Tax refunds | [1] | $ 512,292 | $ 532,149 |
Deposits | 204,652 | 187,691 | |
Advance to suppliers | 324,243 | 104,922 | |
Prepaid expenses | 8,224 | 71,348 | |
Others | 4,276 | 3,420 | |
Prepayments and other current assets, net | $ 1,053,687 | $ 899,530 | |
[1]Tax refunds consist of consumption tax and value-added tax refund for export business. The Group is eligible for consumption tax and value-added tax refund for cross-border products sales in Japan and China. |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property and Equipment, Net [Line Items] | ||||
Depreciation expense | $ 83,226 | $ 81,625 | $ 33,368 | |
Chuancheng Digital [Member] | ||||
Property and Equipment, Net [Line Items] | ||||
Carrying value | $ 130,533 | $ 191,260 | ||
Land and Building [Member] | ||||
Property and Equipment, Net [Line Items] | ||||
Disposal value | $ 1,745,094 | |||
Gain loss on disposal | 125,804 | |||
Land and Building [Member] | Minimum [Member] | ||||
Property and Equipment, Net [Line Items] | ||||
Carrying value | 392,654 | |||
Land and Building [Member] | Maximum [Member] | ||||
Property and Equipment, Net [Line Items] | ||||
Carrying value | $ 1,191,319 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of Property and Equipment, Net - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Schedule of Property and Equipment, Net [Line Items] | |||
Property and equipment, gross | $ 346,555 | $ 1,878,458 | |
Less: accumulated depreciation and amortization | (187,913) | (125,446) | |
Property and equipment, net | 158,642 | 1,753,012 | $ 3,067,443 |
Office equipment [Member] | |||
Schedule of Property and Equipment, Net [Line Items] | |||
Property and equipment, gross | 29,498 | 17,814 | |
Vehicle [Member] | |||
Schedule of Property and Equipment, Net [Line Items] | |||
Property and equipment, gross | 307,102 | 315,561 | |
Buildings [Member] | |||
Schedule of Property and Equipment, Net [Line Items] | |||
Property and equipment, gross | 391,087 | ||
Leasehold improvement [Member] | |||
Schedule of Property and Equipment, Net [Line Items] | |||
Property and equipment, gross | 9,955 | 10,280 | |
Land property right [Member] | |||
Schedule of Property and Equipment, Net [Line Items] | |||
Property and equipment, gross | $ 1,143,716 |
Long-Term Investment (Details)
Long-Term Investment (Details) | 12 Months Ended | |||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2023 JPY (¥) | Sep. 14, 2021 USD ($) | Sep. 14, 2021 JPY (¥) | |
Long-Term Investment [Line Items] | ||||||
Withdrew amount | $ 93,574 | ¥ 13,000,000 | ||||
Impairment loss | 55,826 | |||||
Equity investee’s net income into earnings | $ 2,119 | $ 8,402 | ||||
Ishiyama Real Estate Co. Ltd [Member] | ||||||
Long-Term Investment [Line Items] | ||||||
Interest rate on investment | 25% | 25% | ||||
Initial investment | $ 182,382 | ¥ 20,000,000 |
Long-Term Investment (Details)
Long-Term Investment (Details) - Schedule of Long-Term Investment - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Less: impairment loss allowance | $ (55,826) | |
Equity method investment, net | 145,447 | |
Ishiyama Real Estate Co. Ltd [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 55,826 | $ 145,447 |
Interest [Member] | Ishiyama Real Estate Co. Ltd [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of interest rate | 25% | 25% |
Leasing (Details)
Leasing (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leasing [Abstract] | |||
Right of use assets | $ 624,945 | ||
Lease liabilities current | 187,214 | ||
Lease liabilities non current | $ 439,854 | ||
Weighted average remaining lease term | 6 years 29 days | ||
Weighted average discount rate | 3.65% | ||
Lease expenses | $ 191,270 |
Leasing (Details) - Schedule of
Leasing (Details) - Schedule of Lease Expenses - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of Lease Expenses [Abstract] | ||
2024 | $ 207,808 | |
2025 | 148,045 | |
2026 | 133,479 | |
2027 | 119,184 | |
2028 | 71,510 | |
Total minimum lease payments | 680,027 | |
Less: Interest | (52,959) | |
Present value of lease obligations | 627,068 | |
Less: Current portion | 187,214 | |
Non - current portion of lease obligations | $ 439,854 |
Short-Term Debts (Details)
Short-Term Debts (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Short-Term Debts [Abstract] | |||
Percentage of short-term debts interest rate | 1.50% | ||
Interest expenses | $ 543 | $ 506 | $ 2,773 |
Weighted average interest rates of short-term debts | 1.50% |
Short-Term Debts (Details) - Sc
Short-Term Debts (Details) - Schedule of Short-Term Debts - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Short-Term Debt [Line Items] | ||
Short-term debts | $ 103,649 | |
Gunma Bank [Member] | ||
Short-Term Debt [Line Items] | ||
Annual Interest Rate | 1.50% | |
Short-term debts | $ 103,649 | |
Gunma Bank [Member] | Minimum [Member] | ||
Short-Term Debt [Line Items] | ||
Maturity | Jun. 27, 2022 | |
Gunma Bank [Member] | Maximum [Member] | ||
Short-Term Debt [Line Items] | ||
Maturity | Jun. 25, 2023 |
Long-Term Debts (Details)
Long-Term Debts (Details) | 12 Months Ended | ||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jul. 26, 2022 USD ($) | Jul. 26, 2022 CNY (¥) | |
Long-Term Debts [Line Items] | |||||
Interest expense | $ 102,350 | $ 57,270 | $ 43,749 | ||
Vehicle carrying value | 130,533 | $ 191,260 | |||
Long term debt | $ 2,531,552 | ||||
Long Term Debt [Member] | |||||
Long-Term Debts [Line Items] | |||||
Long term debt outstanding | 4.68% | 4.59% | |||
Long Term Debt [Member] | Minimum [Member] | |||||
Long-Term Debts [Line Items] | |||||
Long term debt outstanding | 0.38% | 0.38% | |||
Long Term Debt [Member] | Maximum [Member] | |||||
Long-Term Debts [Line Items] | |||||
Long term debt outstanding | 14.56% | 14.56% | |||
Short-Term Debt [Member] | |||||
Long-Term Debts [Line Items] | |||||
Short term debt | $65,724 | ||||
Long-Term Debt [Member] | |||||
Long-Term Debts [Line Items] | |||||
Long term debt | $ 69,670 | ||||
Zhongli International Financial Leasing Co. LTD [Member] | |||||
Long-Term Debts [Line Items] | |||||
Vehicle carrying value | $ 210,867 | ¥ 1,500,000 |
Long-Term Debts (Details) - Sch
Long-Term Debts (Details) - Schedule of Long-Term Debts - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of Long-Term Debts [Line Items] | ||
Long- term | $ 1,996,326 | $ 2,653,764 |
Long- term (current portions) | $ 535,226 | 585,630 |
Shinhan Bank Japan [Member] | ||
Schedule of Long-Term Debts [Line Items] | ||
Annual Interest Rate | 1.90% | |
Start date | Apr. 16, 2021 | |
End date | Apr. 16, 2024 | |
Long- term | 989,428 | |
Long- term (current portions) | 48,095 | |
The Shoko Chukin Bank [Member] | ||
Schedule of Long-Term Debts [Line Items] | ||
Annual Interest Rate | 1.50% | |
Start date | Sep. 05, 2019 | |
End date | Apr. 25, 2024 | |
Long- term | 27,641 | |
Long- term (current portions) | $ 26,768 | 41,462 |
The Shoko Chukin Bank One [Member] | ||
Schedule of Long-Term Debts [Line Items] | ||
Annual Interest Rate | 1.11% | |
Start date | May 26, 2020 | |
End date | Apr. 25, 2030 | |
Long- term | $ 113,070 | 137,655 |
Long- term (current portions) | $ 20,237 | 20,897 |
The Shoko Chukin Bank Two [Member] | ||
Schedule of Long-Term Debts [Line Items] | ||
Annual Interest Rate | 1.50% | |
Start date | Apr. 02, 2022 | |
End date | Jan. 27, 2025 | |
Long- term | $ 20,879 | 91,217 |
Long- term (current portions) | $ 67,456 | 69,657 |
Mizuho Bank [Member] | ||
Schedule of Long-Term Debts [Line Items] | ||
Annual Interest Rate | 0.83% | |
Start date | Mar. 25, 2020 | |
End date | Mar. 25, 2025 | |
Long- term | $ 6,572 | 20,634 |
Long- term (current portions) | $ 13,411 | 13,848 |
Mizuho Bank One [Member] | ||
Schedule of Long-Term Debts [Line Items] | ||
Annual Interest Rate | 2% | |
Start date | Jan. 06, 2021 | |
End date | Jan. 06, 2031 | |
Long- term | $ 135,515 | 160,666 |
Long- term (current portions) | $ 20,076 | 20,731 |
Kiraboshi Bank [Member] | ||
Schedule of Long-Term Debts [Line Items] | ||
Annual Interest Rate | 0.50% | |
Start date | Mar. 04, 2020 | |
End date | Mar. 31, 2030 | |
Long- term | 269,505 | |
Long- term (current portions) | 41,462 | |
Japan Finance Corporation [Member] | ||
Schedule of Long-Term Debts [Line Items] | ||
Annual Interest Rate | 1.11% | |
Start date | Jul. 16, 2020 | |
End date | Jun. 30, 2030 | |
Long- term | $ 194,071 | 235,229 |
Long- term (current portions) | $ 36,539 | 34,828 |
Musashino Bank [Member] | ||
Schedule of Long-Term Debts [Line Items] | ||
Annual Interest Rate | 1.50% | |
Start date | May 31, 2022 | |
End date | Feb. 06, 2025 | |
Long- term | $ 44,489 | 120,862 |
Long- term (current portions) | $ 72,556 | 63,396 |
Japan Finance Corporation One [Member] | ||
Schedule of Long-Term Debts [Line Items] | ||
Annual Interest Rate | 0.46% | |
Start date | Sep. 06, 2020 | |
End date | Apr. 20, 2030 | |
Long- term | $ 114,783 | 139,755 |
Long- term (current portions) | $ 20,558 | 21,229 |
Japan Finance Corporation Two [Member] | ||
Schedule of Long-Term Debts [Line Items] | ||
Annual Interest Rate | 0.38% | |
Start date | Apr. 23, 2021 | |
End date | Mar. 20, 2031 | |
Long- term | $ 44,369 | 52,864 |
Long- term (current portions) | $ 7,395 | 7,050 |
Kiraboshi Bank One [Member] | ||
Schedule of Long-Term Debts [Line Items] | ||
Annual Interest Rate | 0.50% | |
Start date | Jun. 27, 2023 | |
End date | May 30, 2032 | |
Long- term | $ 351,335 | |
Long- term (current portions) | $ 43,499 | |
Caizhi Linghang (Xiamen) Investment Management Co., Ltd [Member] | ||
Schedule of Long-Term Debts [Line Items] | ||
Annual Interest Rate | 3.75% | |
Start date | Jan. 11, 2022 | |
End date | Oct. 31, 2027 | |
Long- term | $ 779,879 | |
Long- term (current portions) | ||
Zhongli International Financial Leasing Co. LTD [Member] | ||
Schedule of Long-Term Debts [Line Items] | ||
Annual Interest Rate | 14.56% | |
Start date | Nov. 08, 2022 | |
End date | Aug. 15, 2025 | |
Long- term | $ 125,640 | 269,441 |
Long- term (current portions) | $ 137,061 | 140,578 |
Zhongli International Financial Leasing Co. LTD One [Member] | ||
Schedule of Long-Term Debts [Line Items] | ||
Annual Interest Rate | 13.63% | |
Start date | Jul. 26, 2022 | |
End date | Jul. 26, 2025 | |
Long- term | $ 65,724 | 138,867 |
Long- term (current portions) | $ 69,670 | $ 62,397 |
Pledge | Vehicle |
Long-Term Debts (Details) - S_2
Long-Term Debts (Details) - Schedule of Contractual Maturities of Long Term Debts | Sep. 30, 2023 USD ($) |
Schedule of Contractual Maturities of Long Term Debts [Abstract] | |
Within 1 year | $ 535,226 |
1 – 2 years | 404,883 |
2 – 3 years | 141,578 |
3 – 4 years | 141,578 |
4 – 5 years | 921,457 |
Over 5 years | 386,830 |
Total | $ 2,531,552 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - Schedule of Accrued Expenses and Other Current Liabilities - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Schedule of Accrued Expenses and Other Current Liabilities [Abstract] | ||
Accrued payroll and welfare | $ 196,767 | $ 164,421 |
Deposits | 80,326 | |
Tax Payable | 21,914 | 5,795 |
Accrued service fee | 6,956 | 5,177 |
Accrued listing fee | 39,765 | |
Others | 44,584 | 40,318 |
Total | $ 309,986 | $ 296,037 |
Income Taxes (Details)
Income Taxes (Details) | 12 Months Ended | ||||
Apr. 01, 2018 HKD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 HKD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Income Taxes [Line Items] | |||||
Profits tax rate (in Dollars) | $ (263,930) | $ 538,344 | $ 316,262 | ||
Profits tax rate | 50% | 50% | |||
Recognized a valuation allowance (in Dollars) | $ 468,938 | $ 211,556 | |||
Hong Kong [Member] | |||||
Income Taxes [Line Items] | |||||
Profits tax rate (in Dollars) | $ 2,000,000 | $ 2,000,000 | |||
Assessable profits | 8.25% | 16.50% | 16.50% | ||
Assessable profits tax rates | 16.50% | 16.50% | |||
PRC [Member] | |||||
Income Taxes [Line Items] | |||||
Enterprise income tax rate | 25% | 25% | |||
Japan [Member] | |||||
Income Taxes [Line Items] | |||||
Profits tax rate | 36.80% | 36.80% | 37.10% | 37.10% | |
Effective income tax rate | 8.92% | 8.92% | 26.58% | 11.90% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Components of Income Tax Expenses - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Components of Income Tax Expenses [Abstract] | |||
Current income tax expenses | $ 96,452 | $ 305,439 | $ 194,844 |
Deferred income tax expenses/(benefit) | (160,402) | 80,519 | (93,304) |
Total income tax provision | $ (63,950) | $ 385,958 | $ 101,540 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Group’s Actual Provision for Income Taxes and the Provision - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Group’s Actual Provision for Income Taxes and the Provision [Abstract] | |||
(Loss)/Profit before income tax expenses | $ (716,678) | $ 1,452,333 | $ 853,206 |
Computed income tax (benefit)/expense with statutory tax rate | (263,930) | 538,344 | 316,262 |
Effect of preferential tax rate | (22,301) | (29,148) | (20,586) |
Impact of different tax rates in other jurisdictions | (425) | (303,869) | (244,878) |
Non-deductible expenses | 316 | 1,372 | |
Utilized tax loss | (49,313) | ||
Changes in valuation allowance | 271,703 | 179,259 | 50,742 |
Income tax (benefit)/expenses | $ (63,950) | $ 385,958 | $ 101,540 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of Significant Components of the Deferred Tax Assets - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Deferred tax assets: | |||
Net operating loss carried forward | $ 654,588 | $ 242,785 | |
Unrealized foreign exchange loss | (36,521) | (31,229) | |
Total deferred tax assets | 618,067 | 211,556 | |
Valuation allowance | (468,938) | (211,556) | $ (51,244) |
Deferred tax assets, net of valuation allowance | $ 149,129 |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of Changes in Valuation Allowance - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Valuation allowance: | ||
Balance at beginning of the year | $ 211,556 | $ 51,244 |
Additions | 271,702 | 179,259 |
Loss utilized | (49,314) | |
Exchange difference | 34,994 | (18,947) |
Balance at end of the year | $ 468,938 | $ 211,556 |
Income Taxes (Details) - Sche_5
Income Taxes (Details) - Schedule of Net Operating Loss | Sep. 30, 2023 USD ($) |
Schedule of Net Operating Loss [Line Items] | |
Total | $ 2,322,061 |
Tax Year 2023 [Member] | |
Schedule of Net Operating Loss [Line Items] | |
Total | |
Tax Year 2024 [Member] | |
Schedule of Net Operating Loss [Line Items] | |
Total | |
Tax Year 2025 [Member] | |
Schedule of Net Operating Loss [Line Items] | |
Total | 145,306 |
Tax Year 2026 [Member] | |
Schedule of Net Operating Loss [Line Items] | |
Total | 510,885 |
Tax Year 2027 [Member] | |
Schedule of Net Operating Loss [Line Items] | |
Total | $ 1,665,870 |
Equity (Details)
Equity (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Equity [Line Items] | ||
Ordinary shares authorized | 200,000,000 | 200,000,000 |
Ordinary shares issued | 20,000,000 | 20,000,000 |
Ordinary shares outstanding | 20,000,000 | 20,000,000 |
Statutory surplus reserve | 50% | |
Net assets (in Dollars) | $ 1,441,960 | |
Statutory Reserve [Member] | ||
Equity [Line Items] | ||
Statutory surplus reserve | 10% |
Others, Net (Details) - Schedul
Others, Net (Details) - Schedule of Others, Net Income and Expense - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Others, Net Income and Expense [Abstract] | |||
Rental income | $ 130,900 | $ 120,345 | |
Tax subsidies and deductions | 14 | 34,886 | 11,622 |
Government subsidies | 1,314 | 3,441 | |
Others income/(expenses) | 13,229 | (55,569) | (77,887) |
Total | $ 14,557 | $ 113,658 | $ 54,080 |
Earnings Per Share (Details) -
Earnings Per Share (Details) - Schedule of Basic and Diluted Earnings Per Share - USD ($) | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Numerator: | ||||
Net (loss)/income attributable to Linkage Global Inc | $ (652,728) | $ 1,066,375 | $ 751,666 | |
Denominator: | ||||
Weighted average number of ordinary shares | [1] | 20,000,000 | 20,000,000 | 20,000,000 |
Net (loss)/income per ordinary share | ||||
Basic | [1] | $ (0.03) | $ 0.05 | $ 0.04 |
[1]The shares and per share information are presented on a retroactive basis to reflect the reorganization completed on February 17, 2023 and share split occurred on March 20, 2023 (Note 14). |
Earnings Per Share (Details) _2
Earnings Per Share (Details) - Schedule of Basic and Diluted Earnings Per Share (Parentheticals) - $ / shares | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Schedule of Basic and Diluted Earnings Per Share [Abstract] | ||||
diluted | [1] | $ (0.03) | $ 0.05 | $ 0.04 |
[1]The shares and per share information are presented on a retroactive basis to reflect the reorganization completed on February 17, 2023 and share split occurred on March 20, 2023 (Note 14). |
Related Party Transactions (Det
Related Party Transactions (Details) - Schedule of Related Parties - Relationship [Member] | 12 Months Ended |
Sep. 30, 2023 | |
Mrs. Qi Xiaoyu [Member] | |
Schedule of Related Parties [Line Items] | |
Relationship | Shareholder of the Company |
Mr. Fuyunishiki Ryo [Member] | |
Schedule of Related Parties [Line Items] | |
Relationship | Director and shareholder of the Company |
Mr. Wu Zhihua [Member] | |
Schedule of Related Parties [Line Items] | |
Relationship | Director, CEO and shareholder of the Company |
Ms. Wu Shunyu [Member] | |
Schedule of Related Parties [Line Items] | |
Relationship | Department head of Digital Marketing Sales |
Ishiyama [Member] | |
Schedule of Related Parties [Line Items] | |
Relationship | An equity method investee of the Group |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of Amount Due to Related Parties - Related Party [Member] - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Schedule of Amount Due to Related Parties [Line Items] | |||
Total | $ 1,413,604 | $ 1,273,832 | $ 466,442 |
Mrs. Qi Xiaoyu [Member] | |||
Schedule of Amount Due to Related Parties [Line Items] | |||
Total | 1,206,121 | 935,581 | 209,406 |
Mr. Fuyunishiki Ryo [Member] | |||
Schedule of Amount Due to Related Parties [Line Items] | |||
Total | 108,002 | 148,704 | 197,160 |
Mr. Wu Zhihua [Member] | |||
Schedule of Amount Due to Related Parties [Line Items] | |||
Total | 70,289 | ||
Ms. Wu Shunyu [Member] | |||
Schedule of Amount Due to Related Parties [Line Items] | |||
Total | 99,481 | 119,258 | 15,033 |
Ishiyama [Member] | |||
Schedule of Amount Due to Related Parties [Line Items] | |||
Total | $ 44,843 |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of Due from Related Parties - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Ishiyama [Member] | |||
Schedule of Due from Related Parties [Line Items] | |||
Due from related parties | $ 34,552 |
Related Party Transactions (D_4
Related Party Transactions (Details) - Schedule of Related Party Transactions - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Related Party Transactions [Line Items] | |||
Total | $ 1,728,398 | $ 1,424,460 | $ 451,602 |
Mrs. Qi Xiaoyu [Member] | |||
Schedule of Related Party Transactions [Line Items] | |||
Total | 1,480,137 | 1,165,096 | 207,352 |
Ms. Wu Shunyu [Member] | |||
Schedule of Related Party Transactions [Line Items] | |||
Total | 30,222 | 104,225 | 183,156 |
Mr. Fuyunishiki Ryo [Member] | |||
Schedule of Related Party Transactions [Line Items] | |||
Total | 218,038 | 78,240 | 61,094 |
Mr. Wu Zhihua [Member] | |||
Schedule of Related Party Transactions [Line Items] | |||
Total | 76,299 | ||
Ishiyama [Member] | |||
Schedule of Related Party Transactions [Line Items] | |||
Total | 34,552 | ||
Total | $ (35,990) | $ 34,552 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) - Schedule of Single Customers Total Revenue | 12 Months Ended | |||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||||
Total Revenue [Member] | Customer Concentration Risk [Member] | Customer A [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | 11.95% | 18.03% | 19.70% | |||
Total Revenue [Member] | Customer Concentration Risk [Member] | Customer B [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | 10.73% | 17.53% | [1] | |||
Total Revenue [Member] | Customer Concentration Risk [Member] | Customer C [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | [1] | 10.53% | [1] | |||
Total Revenue [Member] | Customer Concentration Risk [Member] | Customer I [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | [1] | [1] | 13.02% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer A [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | [1] | 44.98% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer B [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | [1] | 12.81% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer D [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | [1] | 17.15% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer E [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | 32.10% | [1] | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer F [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | 19.52% | [1] | ||||
Contract Liabilities [Member] | Customer Concentration Risk [Member] | Customer B [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | 28.50% | [1] | ||||
Contract Liabilities [Member] | Customer Concentration Risk [Member] | Customer I [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | 26.44% | 15.08% | ||||
Contract Liabilities [Member] | Customer Concentration Risk [Member] | Customer G [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | 16.72% | [1] | ||||
Contract Liabilities [Member] | Customer Concentration Risk [Member] | Customer H [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | [1] | 10.61% | ||||
Contract Liabilities [Member] | Customer Concentration Risk [Member] | Customer J [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | 13.22% | 17.29% | ||||
Supplier A [Member] | Group’s Purchase [Member] | Supplier Concentration Risk [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | 17.02% | 20.59% | [1] | |||
Supplier B [Member] | Group’s Purchase [Member] | Supplier Concentration Risk [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | 17.52% | 15.97% | 20.81% | |||
Supplier C [Member] | Group’s Purchase [Member] | Supplier Concentration Risk [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | 11.04% | [1] | [1] | |||
Supplier C [Member] | Account Payable [Member] | Supplier Concentration Risk [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | 34.66% | [1] | ||||
Supplier D [Member] | Account Payable [Member] | Supplier Concentration Risk [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | [1] | 15.82% | ||||
Supplier E [Member] | Account Payable [Member] | Supplier Concentration Risk [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | [1] | 24.58% | ||||
Supplier F [Member] | Account Payable [Member] | Supplier Concentration Risk [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | [1] | 16.92% | ||||
Supplier K [Member] | Account Payable [Member] | Supplier Concentration Risk [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | 23.66% | [1] | ||||
Supplier L [Member] | Account Payable [Member] | Supplier Concentration Risk [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | 10.69% | [1] | ||||
Supplier M [Member] | Account Payable [Member] | Supplier Concentration Risk [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | 10.13% | [1] | ||||
Supplier G [Member] | Advance [Member] | Supplier Concentration Risk [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | [1] | 12.02% | ||||
Supplier H [Member] | Advance [Member] | Supplier Concentration Risk [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | 22.38% | [1] | ||||
Supplier I [Member] | Advance [Member] | Supplier Concentration Risk [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | 18.13% | [1] | ||||
Supplier J [Member] | Advance [Member] | Supplier Concentration Risk [Member] | ||||||
Schedule of Single Customers Total Revenue [Line Items] | ||||||
Concentration risk percentage | 12.32% | [1] | ||||
[1]represent percentage less than 10% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - Schedule of Future Minimum Lease Payments | Sep. 30, 2023 USD ($) |
Schedule of Future Minimum Lease Payments [Abstract] | |
Within 1 year | $ 8,073 |
Subsequent Events (Details)
Subsequent Events (Details) - Forecast [Member] - List on Nasdaq Capital Market [Member] $ / shares in Units, $ in Millions | 1 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Subsequent Events [Line Items] | |
Ordinary shares issued | shares | 1,500,000 |
Price per share | $ / shares | $ 4 |
Net proceeds | $ | $ 5.4 |
Underwriting discounts, commissions and other offering expense | $ | $ 0.6 |
Ordinary shares outstanding | shares | 21,500,000 |
Ordinary shares par value | $ / shares | $ 0.00025 |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company (Details) | 12 Months Ended |
Sep. 30, 2023 | |
Condensed Financial Information of the Parent Company [Line Items] | |
Percentage of consolidated net assets | 25% |
Linkage Cayman [Member] | |
Condensed Financial Information of the Parent Company [Line Items] | |
Percentage of consolidated net assets | 25% |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company (Details) - Condensed Balance Sheets - Parent [Member] - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Current assets | ||
Cash | $ 64 | |
Deferred offering costs | 47,580 | |
Amount due from subsidiaries | 3,521,756 | 2,734,553 |
Total non-current assets | 3,569,400 | 2,734,553 |
Total assets | 3,569,400 | 2,734,553 |
Current liabilities | ||
Accrued expenses and other current liabilities | 72,276 | |
Total current liabilities | 72,487 | |
Total liabilities | 72,487 | |
Shareholders’ equity | ||
Ordinary shares (par value of US$0.00025 per share; 200,000,000 ordinary shares authorized, 20,000,000 ordinary shares issued and outstanding as of September 30, 2023 and 2022, respectively) | 5,000 | 5,000 |
Additional paid in capital | 1,549,913 | 119,301 |
Statutory reserve | 11,348 | |
Retained earnings | 2,052,553 | 2,716,629 |
Accumulated other comprehensive (loss) | (121,901) | (106,377) |
Total shareholders’ equity | 3,496,913 | 2,734,553 |
Total liabilities and shareholders’ equity | 3,569,400 | 2,734,553 |
Related Party [Member] | ||
Current liabilities | ||
Amounts due to related parties | $ 211 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company (Details) - Condensed Balance Sheets (Parentheticals) - Parent [Member] - $ / shares | Sep. 30, 2023 | Sep. 30, 2022 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary shares, par value (in Dollars per share) | $ 0.00025 | $ 0.00025 |
Ordinary shares, authorized | 200,000,000 | 200,000,000 |
Ordinary shares, issued | 20,000,000 | 20,000,000 |
Ordinary shares, outstanding | 20,000,000 | 20,000,000 |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company (Details) - Condensed Statements of Operations and Comprehensive Loss - Parent [Member] - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Condensed Statement of Income Captions [Line Items] | |||
(Loss)/income before income taxes | $ (716,678) | $ 1,452,333 | $ 853,206 |
Income tax provision | 63,950 | (385,958) | (101,540) |
Net (loss)/income | (652,728) | 1,066,375 | 751,666 |
Other comprehensive loss: | |||
Foreign currency translation difference | (15,524) | (57,722) | (31,726) |
Total comprehensive (loss)/income | $ (668,252) | $ 1,008,653 | $ 719,940 |
Condensed Financial Informati_7
Condensed Financial Information of the Parent Company (Details) - Condensed Statements of Cash Flows - Parent [Member] - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | |||
Net (loss)/income | $ (652,728) | $ 1,066,375 | $ 751,666 |
Adjustments to reconcile net (loss)/income to net cash provided by operating activities: | |||
Equity in loss/(income) of subsidiaries | 652,792 | (1,066,375) | (751,666) |
Net cash provided by operating activities | 64 | ||
Net cash provided by investing activities | |||
Net cash provided by financing activities | |||
Net increase/decrease in cash | 64 | ||
Cash at beginning of year | |||
Cash at end of year | $ 64 |