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LIQUIDITY
12 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
LIQUIDITY

NOTE 3— LIQUIDITY

 

In assessing its liquidity, management monitors and analyzes the Company’s cash on-hand, its ability to generate sufficient revenue sources in the future, and its operating and capital expenditure commitments. In June 2021, the Company closed its initial public offering and received net proceeds of approximately $11.3 million (see Note 1 and Note 15). In January 2023, the Company closed a private offering of ordinary shares and received subscription net proceeds of $2.0 million (see Note 15). In May 2024, the Company closed a private offering of ordinary shares and received subscription proceeds of $5.6 million.(see Note 15).

 

As of September 30, 2024, the Company had cash on hand of $80,466 and working capital of $23.3 million. For the year ended September 30, 2024, the Company had approximately $0.3 million net income. As of September 30, 2024, the Company had outstanding bank loans of approximately $7.1 million from several PRC banks (including short-term bank loans of $5.7 million, current portion of long-term bank loans of approximately $0.5 million and long-term loan of $0.9 million). Management expects that it would be able to renew all of its existing bank loans upon their maturity based on past experience and the Company’s good credit history.

 

Based on the current operating plan, management believes that the above-mentioned measures, including cash on hand of $80,466 and $5.6 million proceeds from our private offering of ordinary shares in May 2024, collectively will provide sufficient liquidity for the Company to settle the tax liabilities, to meet its future liquidity for at least 12 months from the date the Company’s consolidated financial statements are issued.