Related Party Transactions

6 Months Ended

Mar. 31, 2023

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 9 — RELATED PARTY TRANSACTIONS

a. Accounts receivable - related parties

Accounts receivable - related parties consists of the following:

Name	Related party relationship	March 31, 2023		September 30, 2022
Jiangsu Zhongjin Kanglu Information Technology Co., Ltd.	An entity controlled by the CEO	$	210,317	$	162,024
Zhongjin Hongkang Medical Technology (Shanghai) Co., Ltd.	An entity controlled by the CEO		70,782		55,187
Zhongjin Jingau Rehabilitation Equipment (Beijing) Co. Ltd.	An entity controlled by the CEO		1,520		1,468
Zhongjiankanglu Industrial Development (Shanghai) Co., Ltd.	An entity controlled by the CEO		9,264		34,794
Subtotal			291,883		253,473
Less: allowance for doubtful accounts			-		-
Total accounts receivable, net - related parties		$	291,883	$	253,473

For accounts receivable due from related parties, approximately 72.1%, or $0.2 million of the March 31, 2023 balances have been subsequently collected. The remaining balance is expected to be collected before September 30, 2023. 

b. Due from related parties

Due from related parties consists of the following:

Name	Related party relationship	March 31, 2023		September 30, 2022
Jiangsu Zhongjin Kanglu Information Technology Co., Ltd. (“Zhongjin Kanglu”) (1)	An entity controlled by the CEO	$	4,835,861	$	-
Huaniaoyuan Catering Management (Changzhou) Co. Ltd.	An entity controlled by the CEO		31,628		33,285
Other	Director of the Company		6,933		2,972
Total due from related parties		$	4,874,422	$	36,257

(1) As of March 31, 2023, the balance due from a related party, Zhongjin Kanglu, was $4,835,861. During the six months ended March 31, 2023, as a business collaboration, the Company made advances to Zhongjin Kanglu in the amount of $4,804,800 (RMB33.0 million) as for its temporary working capital needs during the normal course of business. As of the date of this report, the $4,804,800 advance made to Zhongjin Kanglu has been fully collected. The Company expects to make no such advances to its related parties in the future.

Advances due from related parties were non-interest bearing and due upon demand. Approximately 98.6%, or $4.8 million of the March 31, 2023 balances have been subsequently collected. The remaining balance is expected to be collected before September 30, 2023.

c. Deferred revenue – a related party

Deferred revenue – a related party consists of the following:

Name	Related party relationship	March 31, 2023		September 30, 2022
Jin Med Medical (Korea) Co., Ltd.	An entity controlled by the CEO	$	124,766	$	-
Total deferred revenue – a related party		$	124,766	$	-

d. Due to a related party

Due to a related party consists of the following:

Name	Related party relationship	March 31, 2023		September 30, 2022
Jiangsu Zhongjin Kanglu Information Technology Co., Ltd.	An entity controlled by the CEO	$	-	$	118,066
Total due to a related party		$	-	$	118,066

The balance due to a related party was mainly comprised of advances from entities controlled by the Company’s CEO and used for working capital during the Company’s normal course of business. These advances are non-interest bearing and due on demand.

e. Revenue from related parties

Revenue from related parties consists of the following:

		For the Six Months Ended March 31,
Name	Related party relationship	2023		2022
Jiangsu Zhongjin Kanglu Information Technology Co., Ltd.	An entity controlled by the CEO	$	333,106	$	387,200
Zhongjiankanglu Industrial Development (Shanghai) Co., Ltd.	An entity controlled by the CEO		17,381		5,335
Zhongjin Jingau Rehabilitation Equipment (Beijing) Co. Ltd.	An entity controlled by the CEO		12,384		13,909
Total revenue from related parties		$	362,871	$	406,444

f. Loan guarantee provided by related parties

In connection with the Company’s bank borrowings from Bank of Jiangsu, the Company’s major shareholder, Mr. Erqi Wang and Changzhou Zhongjian Kanglu Information Technology Co., Ltd. provided credit guarantee and signed pledge agreements (see Note 8).