EX-99.1 2 ex99-1.htm EX-99.1

 

Exhibit 99.1

 

BON NATURAL LIFE LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

    As of  
    March 31, 2025     September 30, 2024  
ASSETS                
CURRENT ASSETS                
Cash   $ 8,894,053     $ 80,466  
Restricted cash     -       576,739  
Accounts receivable, net     11,032,979       11,781,103  
Inventories, net     2,673,140       1,572,224  
Advance to suppliers, net     10,815,661       14,469,299  
Due from related parties     4,048,147       33,228  
Prepaid expenses and other current assets     5,000,480       4,296,949  
Current assets held for sale associated with the sale of the Gansu subsidiary     -       6,983,849  
TOTAL CURRENT ASSETS     42,464,460       39,793,857  
NON-CURRENT ASSETS                
Property, plant and equipment, net     13,891,780       15,005,686  
Intangible assets, net     742,924       776,995  
Right-of-use lease assets, net     34,376       141,895  
Deferred tax assets, net     1,342       1,388  
Long-term others receivable     14,449,247       -  
Non-current assets held for sale associated with the sale of the Gansu subsidiary     -       6,045,611  
TOTAL NON-CURRENT ASSETS     29,119,669       21,971,575  
TOTAL ASSETS   $ 71,584,129     $ 61,765,432  
                 
LIABILITIES AND EQUITY                
CURRENT LIABILITIES                
Short-term loans   $ 7,586,798     $ 5,719,493  
Current portion of long-term loans     878,587       461,765  
Accounts payable     2,052,309       3,428,102  
Due to related parties     118,965       244,871  
Taxes payable     2,809,424       3,681,166  
Deferred revenue     256,859       506,769  
Accrued expenses and other current liabilities     3,680,273       2,243,219  
Operating lease liability, current     20,002       148,904  
Current liabilities held for sale associated with the sale of the Gansu subsidiary     -       11,543  
TOTAL CURRENT LIABILITIES     17,403,217       16,445,832  
                 
NON-CURRENT LIABILITIES                
Long-term loans     275,607       970,061  
      275,607       970,061  
TOTAL LIABILITIES   $ 17,678,824     $ 17,415,893  
                 
COMMITMENTS AND CONTINGENCIES                
EQUITY                
Preferred shares ($0.001 par value, 50,000,000 preferred shares authorized, no shares were issued and outstanding as of March 31, 2025 and September 30, 2024)   $ -     $ -  
Class A Ordinary shares ($0.025 par value, 1,000,000,000 shares authorized, 3,675,677 and 158,823 shares issued and outstanding as of March 31, 2025 and September 30, 2024, respectively*)     91,891       3,970  
Class B Ordinary shares ($0.001 par value, 50,000,000 shares authorized, 2,041,839 and nil shares issued and outstanding as of March 31, 2025 and September 30, 2024, respectively)     2,042       -  
Additional paid in capital     35,754,942       25,005,100  
Statutory reserve     2,733,354       2,733,354  
Retained earnings     18,910,912       18,741,685  
Accumulated other comprehensive income     (3,971,249 )     (2,577,418 )
TOTAL BON NATURAL LIFE LIMITED SHAREHOLDERS’ EQUITY     53,521,892       43,906,691  
Non-controlling interest     383,413       442,848  
TOTAL SHAREHOLDERS’ EQUITY     53,905,305       44,349,539  
TOTAL LIABILITIES AND EQUITY   $ 71,584,129     $ 61,765,432  

 

*Retroactively restated to reflect the Company’s 1-for-25 share consolidation which was approved at extraordinary general meeting of the shareholders on April 15, 2025, and effective on May 19, 2025.

 

 

 

 

BON NATURAL LIFE LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(UNAUDITED)

 

   

For the six months ended

March 31,

  
    2025     2024  
REVENUE   $ 7,949,845     $ 10,183,553  
COST OF REVENUE     (6,041,997 )     (7,215,116 )
GROSS PROFIT     1,907,848       2,968,437  
                 
OPERATING EXPENSES                
Selling expenses     (68,317 )     (103,096 )
General and administrative expenses     (1,459,009 )     (1,890,452 )
Research and development expenses     (96,472 )     (890,384 )
Total operating expenses     (1,623,798 )     (2,883,932 )
                 
INCOME FROM OPERATIONS     284,050       84,505  
                 
OTHER INCOME (EXPENSES)                
Interest income     116       161  
Interest expense     (164,584 )     (143,747 )
Unrealized foreign transaction exchange gain (loss)     79,748       (2,747 )
Government subsidies     -       61,081  
Other income (expenses)     113,834       49,683  
Total other expenses, net     29,114       (35,569 )
                 
INCOME BEFORE INCOME TAX PROVISION     313,164       48,936  
                 
INCOME TAX PROVISION     (177,253 )     (90,734 )
                 
NET INCOME (LOSS)     135,911       (41,798 )
Less: net loss attributable to non-controlling interest     (33,316 )     (31,279 )
NET INCOME (LOSS) ATTRIBUTABLE TO BON NATURAL LIFE LIMITED   $ 169,227     $ (10,519 )
                 
NET INCOME (LOSS)   $ 135,911     $ (41,798 )
                 
OTHER COMPREHENSIVE INCOME                
Total foreign currency translation adjustment     (1,419,950 )     367,971  
TOTAL COMPREHENSIVE INCOME     (1,284,039 )     326,173  
Less: comprehensive loss attributable to non-controlling interest     (59,435 )     126,222  
COMPREHENSIVE INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED   $ (1,224,604 )   $ 199,951  
                 
(LOSS) EARNINGS PER SHARE ATTRIBUTABLE TO CLASS A AND CLASS B ORDINARY SHARE                
Basic*   $ 0.56     $ (0.20 )
Dilute*   $ 0.50     $ (0.20 )
                 
WEIGHTED AVERAGE NUMBER OF CLASS A AND CLASS B ORDINARY SHARES OUTSTANDING                
Basic*     302,647       51,428  
Diluted*     336,070       51,428  

 

*Retroactively restated to reflect the Company’s 1-for-25 share consolidation which was approved at extraordinary general meeting of the shareholders on April 15, 2025, and effective on May 19, 2025.

 

 

 

 

BON NATURAL LIFE LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE SIX MONTHS ENDED MARCH 31, 2025 AND 2024

(UNAUDITED)

 

    Class A Ordinary Shares     Class B Ordinary Shares    

Additional

paid-in

     Statutory     Retained    

Accumulated

other comprehensive

    

Total

shareholders’

    

Non-

controlling

     Total  
    Shares*     Amount     Shares     Amount     capital     reserve     earnings     loss     equity     interest     equity  
Balance at September 30, 2023     46,955     $ 1,174       -     $ -     $ 18,088,056     $ 2,372,871     $ 18,703,996     $ (3,681,445 )   $ 35,484,652     $ 497,181     $ 35,981,833  
Share-based compensation     9,600       240       -       -       1,009,596                               1,009,836               1,009,836  
Net loss     -       -       -       -                       (10,519 )             (10,519 )     (31,279 )     (41,798 )
Foreign currency translation adjustment     -       -       -       -                               210,470       210,470       157,501       367,971  
                                                                                         
Balance at March 31, 2024     56,555     $ 1,414       -     $ -     $ 19,097,652     $ 2,372,871     $ 18,693,477     $ (3,470,975 )   $ 36,694,439     $ 623,403     $ 37,317,842  
                                                                                         
Balance at September 30, 2024     158,823     $ 3,970       -     $ -     $ 25,005,100     $ 2,733,354     $ 18,741,685     $ (2,577,418 )   $ 43,906,691     $ 442,848     $ 44,349,539  
Issuance of Class A Ordinary Shares for a public offering, net     3,590,528       89,763       -       -       10,454,042       -       -       -       10,543,805       -       10,543,805  
Issuance of Class B Ordinary shares     (81,674 )     (2,042 )     2,041,839       2,042       -       -       -       -       -       -       -  
Share-based compensation     8,000       200       -       -       295,800       -       -       -       296,000       -       296,000  
Net income     -       -       -       -       -       -       169,227       -       169,227       (33,316 )     135,911  
Foreign currency translation adjustment     -       -       -       -       -       -       -       (1,393,831 )     (1,393,831 )     (26,119 )     (1,419,950 )
                                                                                         
Balance at March 31, 2025     3,675,677     $ 91,891       2,041,839     $ 2,042     $ 35,754,942     $ 2,733,354     $ 18,910,912     $ (3,971,249 )   $ 53,521,892     $ 383,413     $ 53,905,305  

 

*Retroactively restated to reflect the Company’s 1-for-25 share consolidation which was approved at extraordinary general meeting of the shareholders on April 15, 2025, and effective on May 19, 2025.

 

 

 

 

BON NATURAL LIFE LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

   

For the six months ended

March 31,

  
    2025     2024  
Cash flows from operating activities                
Net income (loss)   $ 135,911     $ (41,798 )
Less: Net loss from discounted operation     -       (8,749 )
Net income from continuing operation     135,911       (33,049 )
Adjustments to reconcile net income to cash provided by operating activities                
Allowance for doubtful accounts     -       21,441  
Depreciation and amortization     617,343       688,466  
Inventory reserve     -       58,349  
Deferred income tax     -       (11,345 )
Amortization of operating lease right-of-use assets     107,519       115,882  
Share-based compensation     296,000       1,009,836  
Unrealized foreign currency exchange loss (gain)     (79,848 )     2,747  
Changes in operating assets and liabilities:                
Accounts receivable     361,239       (3,464,205 )
Inventories     232,466       (498,736 )
Advance to suppliers, net     9,964,799       (160,908 )
Prepaid expenses and other current assets     4,758,681       801,781  
Long-term others receivable     (14,500,947 )     -  
Accounts payable     (1,219,138 )     (135,111 )
Operating lease liabilities     (128,902 )     (120,040 )
Taxes payable     (753,138 )     (224,459 )
Deferred revenue     (249,910 )     391,057  
Accrued expenses and other current liabilities     (3,837,742 )     (314,702 )
Net cash (used in) provided by operating activities from continuing operation     (4,295,567 )     (1,872,993 )
Net cash used in operating activities from discontinued operations     -       (11,180 )
Net cash used in operating activities     (4,295,567 )     (1,884,173 )
                 
Cash flows from investing activities                
Purchase of property and equipment     -       (693 )
Proceeds from sales of property and equipment     4,395       -  
Net cash used in investing activities from continuing operation     4,395       (693 )
Net cash used in investing activities from discontinued operations     -       -  
Net cash used in investing activities     4,395       (693 )
                 
Cash flows from financing activities                
Net proceeds from issuance of ordinary shares     10,543,805       -  
Proceeds from short-term loans     7,232,644       3,619,267  
Proceeds from long-term loans     -       854,514  
Repayment of short-term loans     (5,276,345 )     (1,534,052 )
Repayment of long-term loans     (124,467 )     (510,128 )
Proceeds from (repayment of) borrowings from related parties     (53,393 )     80,752  
Net cash provided by financing activities from continuing operation     12,322,244       2,510,353  
Net cash provided by financing activities from discontinued operations     -       1,499  
Net cash provided by financing activities     12,322,244       2,511,852  
                 
Effect of changes of foreign exchange rates on cash     205,812       (21,858 )
Net increase (decrease) in cash     8,236,848       605,128  
Cash, beginning of period     657,205       112,751  
Cash, end of the period     8,894,053       717,879  
Less: Cash of discontinued operations at the end of the period     -       1,339  
Cash of the continued operations at the end of period   $ 8,894,053     $ 716,540  
                 
Supplemental disclosure of cash flow information                
Cash paid for interest expense   $ 164,584     $ 143,747  
Cash paid for income tax   $ -     $ -  
Supplemental disclosure of non-cash investing and financing activities                
Amortization of share-based compensation for initial public offering services   $ -     $ 24,000  
Right-of-use assets obtained in exchange for operating lease obligations   $ -     $ -