| 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 credit losses, 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, 2024 2023 2022 RMB to US US$1=RMB7.0176 US$1=RMB7.2960 US$1=RMB7.1135 JPY to US US$1=JPY143.2500 US$1=JPY149.4300 US$1=JPY144.7100 HKD to US US$1=HKD7.7693 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 2024 2023 2022 RMB to US US$1=RMB7.2043 US$1=RMB7.0533 US$1=RMB6.5532 JPY to US US$1=JPY150.3267 US$1=JPY138.9277 US$1=JPY124.6952 HKD to US US$1=HKD7.8127 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 represents the Company’s
right to consideration in exchange for goods and services that the Company has transferred to the customers before payment is due. Accounts
receivable is stated at the historical carrying amount, net of an estimated allowance for uncollectible accounts. The group has adopted
ASU 2016-13 on a modified retrospective basis since October 1, 2023, and the impact on opening balance is $863,328. The allowance for
credit losses for accounts receivable is based upon the current expected credit losses (“CECL”) model. The CECL model requires
an estimate of the credit losses expected over the life of accounts receivable since initial recognition, and accounts receivable with
similar risk characteristics are grouped together when estimating CECL. In assessing the CECL, the Company applies a roll rate-based method
that considers historical collectability based on past due status, the age of the balances, credit quality of the Company’s customers
based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions,
and other factors that may affect the Company’s ability to collect from customers. The Company’s management continues to evaluate
the reasonableness of the valuation allowance policy and updates it if necessary. Additionally, the Company evaluates individual customer’s
financial condition, credit history, and the current economic conditions to make specific provision of credit loss when it is considered
necessary, based on (i)the Company’s specific assessment of the collectability of all significant accounts, and (ii) any specific
knowledge the Company has acquired that might indicate that an account is uncollectible. The fact and circumstance of each account may
require the Company to use substantial judgment in assessing its collectability, The allowance is based on management’s best estimate
of specific losses on individual exposures, as well as a provision on historical trends of collections. Account balances are charged off
against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company’s
management continues to evaluate the reasonableness of the valuation allowance policy and updates it if necessary. The allowance for credit
losses, as of September 30, 2024 and 2023 were $1,112,315 and $109,214, respectively. 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, (ii) media that pay the Company’s subsidiaries commissions. (iii) the owners of online store
in fully managed e-commerce operation services business. 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 in 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 30,2024 and 2023 were $93,037 and $83,889, respectively. Deferred offering costs 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. Deferred offering costs were capitalized and consisted of fees and expenses incurred in connection with the
sale of our common stock in the IPO, including the legal, accounting, printing and other offering related costs. Upon completion of the
IPO, these deferred IPO costs were reclassified from current assets to stockholders’ equity and recorded against the net proceeds
from the 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, 2024 and 2023, respectively. Short-term loan to third party The Company provides short-term loans to third
parties with maturities of less than one year, which is classified as current assets on the balance sheet. These short-term loans are
initially recognized at the principal amount lent to the borrower. Interest Recognition: For loans to third parties
with maturities of less than one year, the Company has elected not to apply the effective interest method as permitted under US GAAP for
short-term receivables. Instead, interest income is recognized on a straight-line basis over the loan term, which approximates the effective
interest method given the short-term nature of these loans. Impairment: The Company assesses these short-term
loans for impairment at each reporting date. If there is objective evidence of impairment, a loss allowance is recognized immediately
in the income statement. The allowance is measured as the difference between the loan’s carrying amount and the present value of estimated
future cash flows, discounted at the loan’s original effective interest rate. Derecognition: A loan to a third party is derecognized
when the contractual rights to the cash flows from the asset expire, or when the Company transfers the rights to receive the contractual
cash flows in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Disclosure: The Company discloses the carrying
amount of these short-term loans, the interest income recognized during the period, and any impairment losses in the notes to the financial
statements. Convertible notes In August 2020, the FASB issued ASU 2020-06, Debt-Debt
with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging -Contracts in Entity’s Own Equity (Subtopic 815-40):
Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for convertible
instruments by reducing the number of accounting models available for convertible debt instruments. For share-settled convertible debt
and convertible preferred stock, the if-converted method is typically used to account for diluted earnings per share. For public companies,
the guidance is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption
is permitted. The company adopted this standard beginning October 1, 2023. Following the adoption of ASU 2020-06 Convertible notes are
recorded and disclosed as convertible notes payable, net of unamortized discount. On September 18, 2024, the Company entered into
a securities purchase agreement (“SPA”) with certain institutional investors, pursuant to which, the Company issued to the
investors (the “Holders”), (i) convertible promissory notes in the aggregate principal amount of US$10,830,000 (the “Par
value”), bearing interest at a rate of 8% per annum and having a term of one year from issuance date, issued with an aggregate original
issue discount of US$800,000, and (ii) 9,300,000 Class A Ordinary Shares (“Pre-delivery Shares”) of the Company in aggregate
at the purchase price equal to par value of US$0.00025 per share, which is for pre-delivery and subject to the Company’s repurchase
right upon repayment of the notes. The Holders have the right at any time upon issuance until the Outstanding Balance (the principal amount
plus accrued but unpaid interest of being repaid, collection and enforcements costs incurred by lender, transfer, stamp, issuance and
similar taxes and fees related to conversions, and any other fees or charges incurred under this convertible note as of any date of determination)
has been paid in full, at their election, to convert all or any portion of the Outstanding Balance into shares at the price of the lower
of (i) $1.20, or (ii) 70% of the lowest closing price of the Company’s ordinary shares during the 60-trading day period immediately preceding
the date on which a conversion notice is provided to the Company. In addition, pursuant to the securities purchase
agreement, the Company has the option to prepay the notes with payment of an amount equal to 120% of the Outstanding Balance. In the event
that the Company receives a delisting notice from the Nasdaq Stock Market LLC, the Holders have rights to request redemption of the notes
by the Company. In the event that the Company has redeemed an amount equal to half of original principal amount in cash, any subsequent
redemption in cash is subject to a twenty-five percent (25%) premium. The securities purchase agreement and the notes contain certain
other representations and warranties, covenants and events of default customary for similar transactions. On October 16, 2024 (the “Closing Date”),
the Company completed its issuance and sale of the note and issuance of Class A Ordinary Shares pursuant to the securities purchase agreement.
The gross proceeds from the sale of the notes were $10,000,000, prior to deducting transaction fees and estimated expenses. The Company
intended to use the proceeds for working capital and general corporate purposes. On December 18, 2024, the Company and the Holders
entered into an amendment to SPA, pursuant to which, (i) the parties mutually agreed to add a conversion floor price of $0.24 per share
to the convertible promissory notes, and (ii) the parties mutually agreed to add the maximum number of the conversion shares that each
Note Investor may receive and the Company shall issue under the securities purchase agreement and applicable the convertible notes. The Company has identified and evaluated the embedded
features of the convertible notes, and concluded that (i) the Company call option, contingent interest features for event of default,
and event of delisting put option are clearly and closely related to the debt host instrument and, therefore, are not required to be bifurcated
under ASC 815, (ii) the conversion right is eligible for a scope exception from derivative accounting and is not required to be bifurcated
under ASC 815. Consequently, the Company accounts for the convertible notes as a liability following the respective guidance of ASC 815
and ASC 470. As Pre-delivery shares can be separately exercised,
i.e. each can continue to exist unchanged when the other is exercised, the Company concluded that they were freestanding. The Pre-delivery
Shares are considered a form of stock borrowing facility and are accounted for as own-share lending arrangement. The Company did not receive
any proceeds or pay any consideration related to the Pre-delivery Shares, except that the Company received a one-time nominal fee of US$2,325
upon the issuance of the Pre-delivery Shares and will pay the same amount to the investors upon the return of Pre-delivery Shares, respectively.
The Pre-delivery Shares were issued on October 16, 2024. The Company accounted for the share lending arrangement as an issuance cost and
recorded at fair value upon issuance date against additional paid-in capital. Although legally issued, the Pre-delivery Shares were not
considered outstanding and therefore excluded from basic and diluted earnings (loss) per share unless default of the share lending arrangement
occurs, at which time the Pre-delivery Shares would be included in the basic and diluted earnings (loss) per share calculation. 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, (iii) fully managed e-commerce operation 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. The Company has two logistics methods. For the
products exported from mainland China, the suppliers will directly deliver them to customers. For the products purchased directly from
suppliers in Japan, the Company has its own warehouse in Japan. The products will be first sent to the company’s warehouse and then delivered
to the customers. For products shipped directly from suppliers to
customers, pursuant to ASC 606-10-55-37A(a), the Group concludes that it obtains control 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. Fully managed e-commerce operation services The Group provides fully managed e-commerce operation
services for sellers on Japanese cross-border e-commerce platforms. Usually, our clients have their own factories and products, and they
open online stores on Japanese e-commerce platforms and then entrust the daily management and marketing of the stores to the group for
full handling. The services mainly included:
1. Online shop setup: 1) store page design and decoration, 2)
payment Settings, 3) products listing.
2. Online shop promotion: design marketing plans and product
combinations to attract customers.
3. Customer service: post-sales customer service. The clients only need to be responsible for the
delivery of goods. The Group charges 10% of the GMV(Gross Merchandise Volume) of the online shop as a service commission. The Group considers
itself the agent because the online shops and inventories are owned by clients, the group only provides services and does not have the
control right over the stores and inventories, neither bears the inventory risks. Therefore, such revenues are reported on a net basis. For other integrated e-commerce services revenue
is generated from e-commerce related training/consulting services and running TikTok anchors agent. For 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. For running TikTok anchors agent, the group charges management fee and commission monthly based on the live stream
income from TikTok platform. 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, 2024, and 2023. 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 $533,625 and $530,488 as of September 30, 2024 and 2023, respectively. Revenue recognized in the current reporting
period that was included in the contract liabilities at the beginning of the reporting period was $468,545 and $445,808 for the years
ended September 30 2024 and 2023. 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; (ii) commission costs for digital marketing services; and (iii) the salaries of the staff in
the e-commerce operation department for fully managed e-commerce operation 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 $25,210, $5,733 and $133,160 for the years ended September 30,2024,
2023 and 2022, 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 $57,421, $118,647
and $275,211 for the years ended September 30, 2024, 2023 and 2022, respectively. General and administrative expenses General and administrative expenses mainly consist
of (i) salary and social welfare expenses; (ii) rental cost for offices; (iii) depreciation expenses; (iv) consulting fees;
and (v) allowance for credit loss. 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 $150,511,
$141,702 and $39,490 for the years ended September 30, 2024, 2023, and 2022, respectively. Leases On October 1, 2022, the C |
