Cover
Cover | 12 Months Ended |
Sep. 30, 2023 shares | |
Document Information Line Items | |
Entity Registrant Name | FARMMI, INC. |
Entity Central Index Key | 0001701261 |
Document Type | 20-F |
Amendment Flag | false |
Entity Voluntary Filers | No |
Current Fiscal Year End Date | --09-30 |
Entity Well Known Seasoned Issuer | No |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Current Reporting Status | Yes |
Document Period End Date | Sep. 30, 2023 |
Entity Filer Category | Non-accelerated Filer |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2023 |
Entity Common Stock Shares Outstanding | 6,094,078 |
Document Annual Report | true |
Document Transition Report | false |
Entity File Number | 001-38397 |
Entity Incorporation State Country Code | E9 |
Entity Address Address Line 1 | Fl 1, Building No. 1 |
Entity Address Address Line 2 | 888 Tianning Street, Liandu District |
Entity Address City Or Town | Lishui |
Entity Address Region | Lishui |
Entity Address Country | CN |
Entity Address Postal Zip Code | 323000 |
Icfr Auditor Attestation Flag | false |
Auditor Firm Id | 6781 |
Security 12b Title | Ordinary Shares, $0.20 par value per share |
Trading Symbol | FAMI |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Shell Company Report | false |
Document Registration Statement | false |
Entity Accounting Standard | U.S. GAAP |
Auditor Name | YCM CPA, Inc. |
Auditor Location | Irvine, California |
Business Contact [Member] | |
Document Information Line Items | |
Entity Address Address Line 1 | Fl 1, Building No. 1 |
Entity Address Address Line 2 | 888 Tianning Street, Liandu District |
Entity Address City Or Town | Lishui |
Entity Address Country | CN |
Entity Address Postal Zip Code | 323000 |
City Area Code | 86 |
Local Phone Number | 0578-82612876 |
Contact Personnel Email Address | wlg@farmmi.com |
Contact Personnel Name | Lingge Wu |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Current Assets | ||
Cash | $ 12,789,735 | $ 41,167,501 |
Short-term deposit | 0 | 35,144,444 |
Short-term investments | 0 | 5,820 |
Notes receivable | 0 | 3,528,235 |
Accounts receivable, net | 24,677,445 | 16,351,244 |
Advances to suppliers, net | 116,343,961 | 48,633,604 |
Other receivable | 0 | 7,440,705 |
Inventories, net | 3,901,848 | 716,278 |
Other current assets | 347,228 | 206,566 |
Due from a related party | 110,958 | 59,983 |
Total current assets | 158,171,175 | 153,254,380 |
Biological assets | 9,187,640 | 9,638,722 |
Long-term investments | 6,900,280 | 140,578 |
Property and equipment, net | 24,532 | 44,868 |
Intangible assets, net | 0 | 6,747 |
Right-of-use assets, net | 516,459 | 534,351 |
Deferred tax assets | 0 | 163,207 |
Total Assets | 174,800,086 | 163,782,853 |
Current Liabilities | ||
Short-term loans | 2,412,281 | 0 |
Long-term loans - current portion | 676,284 | 1,505,353 |
Convertible promissory notes | 5,788,742 | 2,178,511 |
Derivative liability | 0 | 3,450,000 |
Note payable | 0 | 12,385 |
Accounts payable | 1,105,674 | 197,137 |
Due to related parties | 33,814 | 948 |
Operating lease liabilities - current | 69,062 | 46,543 |
Other current liabilities | 627,125 | 898,444 |
Total current liabilities | 10,712,982 | 8,289,321 |
Long-term loans - non-current portion | 1,652,561 | 292,285 |
Operating lease liabilities - non-current | 458,617 | 517,156 |
Total Liabilities | 12,824,160 | 9,098,762 |
Shareholders' Equity | ||
Ordinary share, $0.20 par value, 500 million shares authorized, 6,094,078 and 2,988,835 shares issued and outstanding at September 30, 2023 and 2022, respectively | 1,218,816 | 597,768 |
Additional paid-in capital | 160,571,517 | 152,162,565 |
Statutory reserve | 1,695,629 | 1,153,813 |
Retained earnings | 16,905,488 | 14,903,491 |
Accumulated other comprehensive (loss) income | (18,415,524) | (14,133,546) |
Total Shareholders' Equity | 161,975,926 | 154,684,091 |
Total Liabilities and Shareholders' Equity | $ 174,800,086 | $ 163,782,853 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Sep. 30, 2022 |
Consolidated Balance Sheets | ||
Ordinary share, par or stated value per share (in dollars per share) | $ 0.20 | $ 0.20 |
Ordinary share, shares authorized | 500,000,000 | 500,000,000 |
Ordinary share, shares, issued | 6,094,078 | 2,988,835 |
Ordinary share, shares, outstanding | 6,094,078 | 2,988,835 |
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 | |
Revenues | |||
Sales to third parties | $ 110,364,887 | $ 99,212,363 | $ 39,287,999 |
Sales to related parties | 0 | 1,016 | 1,952 |
Total revenues | 110,364,887 | 99,213,379 | 39,289,951 |
Cost of revenues | (106,078,132) | (93,775,293) | (34,180,670) |
Gross profit | 4,286,755 | 5,438,086 | 5,109,281 |
Operating expenses | |||
Allowance for doubtful accounts | 32,007 | (57,173) | 875,094 |
Selling and distribution expenses | (145,292) | (305,367) | (292,709) |
General and administrative expenses | (2,132,095) | (4,133,178) | (2,838,790) |
Total operating expenses | (2,245,380) | (4,495,718) | (2,256,405) |
Income from operations | 2,041,375 | 942,368 | 2,852,876 |
Other income (expenses) | |||
Change in fair value of derivative liability | 873,767 | 419,649 | 0 |
Interest income | 743,858 | 516,869 | 33,576 |
Interest expense | (650,813) | (134,144) | (73,866) |
Amortization of debt issuance costs | (1,691,609) | (48,160) | 0 |
Government grant | 1,439,208 | 0 | 0 |
Other income, net | 101,520 | 409,030 | (379,225) |
Total other income (expenses), net | 815,931 | 1,163,244 | (419,515) |
Income before income taxes | 2,857,306 | 2,105,612 | 2,433,361 |
Provision for income taxes | (313,493) | 118,367 | (25,571) |
Net income from continuing operations | 2,543,813 | 2,223,979 | 2,407,790 |
Discontinued operations | |||
Net loss from discontinued operations, net of tax | 0 | 0 | (51,352) |
Net income | 2,543,813 | 2,223,979 | 2,356,438 |
Net loss attributable to non-controlling interest from discontinued operations | 0 | 0 | 1,976 |
Net income | 2,543,813 | 2,223,979 | 2,358,414 |
Comprehensive income | |||
Net income | 2,543,813 | 2,223,979 | 2,356,438 |
Foreign currency translation | (4,281,978) | (16,344,967) | 1,990,561 |
Total comprehensive (loss) income | (1,738,165) | (14,120,988) | 4,398,351 |
Comprehensive income attributable to noncontrolling interest | 0 | 0 | (46,525) |
Comprehensive (loss) income attributable to Farmmi, Inc. | $ (1,738,165) | $ (14,120,988) | $ 4,351,826 |
Weighted average number of ordinary shares | |||
Basic | 3,628,923 | 2,905,984 | 514,212 |
Diluted | 8,452,875 | 2,905,984 | 522,276 |
Earnings per ordinary share | |||
Earnings (loss) per ordinary share - basic | $ 0.70 | $ 0.77 | $ 4.58 |
- Continuing operations | 0.70 | 0.77 | 4.68 |
- Discontinued operations | 0 | 0 | (0.10) |
Earnings (loss) per ordinary share - diluted | 0.30 | 0.77 | 4.51 |
- Continuing operations | 0.30 | 0.77 | 4.61 |
- Discontinued operations | $ 0 | $ 0 | $ (0.10) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders Equity - USD ($) | Total | Ordinary Shares | Accumulated other comprehensive Income (loss) | Additional Paid-In Capital | Statutory Reserve | Retained Earnings (Accumulated Deficit) | Total Farmmi Inc Shareholders Equity | Noncontrolling Interest |
Balance, shares at Sep. 30, 2020 | 102,588 | |||||||
Balance, amount at Sep. 30, 2020 | $ 29,155,157 | $ 20,518 | $ 186,912 | $ 20,335,228 | $ 972,092 | $ 6,770,426 | $ 28,285,176 | $ 869,981 |
Share-based compensation expenses, shares | 2,983 | |||||||
Share-based compensation expenses, amount | 1,260,674 | $ 597 | 0 | 1,260,077 | 0 | 0 | 1,260,674 | 0 |
Issuance of ordinary shares and warrants, net, shares | 1,307,758 | |||||||
Issuance of ordinary shares and warrants, net, amount | 126,010,538 | $ 261,552 | 0 | 125,748,986 | 0 | 0 | 126,010,538 | |
Warrants exercised for cash, shares | 1,375,572 | |||||||
Warrants exercised for cash, amount | 19,050 | $ 275,114 | 0 | (256,064) | 0 | 0 | 19,050 | 0 |
Foreign currency translation gain | 1,990,561 | 0 | 1,942,060 | 0 | 0 | 0 | 1,942,060 | 48,501 |
Net income for the year | 2,356,438 | 0 | 0 | 0 | 0 | 2,358,414 | 2,358,414 | (1,976) |
Statutory reserve | 0 | $ 0 | 0 | 0 | 1,463 | (1,463) | 0 | 0 |
Balance, shares at Sep. 30, 2021 | 2,788,901 | |||||||
Balance, amount at Sep. 30, 2021 | 160,792,418 | $ 557,781 | 2,128,972 | 147,088,227 | 973,555 | 9,127,377 | 159,875,912 | 916,506 |
Share-based compensation expenses, shares | 50,000 | |||||||
Share-based compensation expenses, amount | 2,007,328 | $ 10,000 | 0 | 1,997,328 | 0 | 0 | 2,007,328 | 0 |
Issuance of ordinary shares and warrants, net, shares | 150,000 | |||||||
Issuance of ordinary shares and warrants, net, amount | 6,000,000 | $ 30,000 | 0 | 5,970,000 | 0 | 0 | 6,000,000 | 0 |
Foreign currency translation gain | (16,344,967) | 0 | (16,344,967) | 0 | 0 | 0 | (16,344,967) | 0 |
Net income for the year | 2,223,979 | 0 | 0 | 0 | 0 | 2,223,979 | 2,223,979 | 0 |
Statutory reserve | 0 | $ 0 | 0 | 0 | 180,258 | (180,258) | 0 | 0 |
Reverse share-split adjustment, shares | (66) | |||||||
Reverse share-split adjustment, amount | 0 | $ (13) | 0 | 13 | 0 | 0 | 0 | 0 |
Disposal of a subsidiary | 5,333 | $ 0 | 82,449 | (2,893,003) | 0 | 3,732,393 | 921,839 | (916,506) |
Balance, shares at Sep. 30, 2022 | 2,988,835 | |||||||
Balance, amount at Sep. 30, 2022 | 154,684,091 | $ 597,768 | (14,133,546) | 152,162,565 | 1,153,813 | 14,903,491 | 154,684,091 | 0 |
Issuance of ordinary shares and warrants, net, shares | 2,631,579 | |||||||
Issuance of ordinary shares and warrants, net, amount | 7,930,000 | $ 526,316 | 0 | 7,403,684 | 0 | 0 | 7,930,000 | 0 |
Foreign currency translation gain | (4,281,978) | 0 | (4,281,978) | 0 | 0 | 0 | (4,281,978) | 0 |
Net income for the year | 2,543,813 | 0 | 0 | 0 | 0 | 2,543,813 | 2,543,813 | 0 |
Statutory reserve | 0 | $ 0 | 0 | 0 | 541,816 | (541,816) | 0 | 0 |
Reverse share-split adjustment, shares | (473) | |||||||
Reverse share-split adjustment, amount | 0 | $ (95) | 0 | 95 | 0 | 0 | 0 | 0 |
Issuance of ordinary shares for promissory notes redemption, shares | 474,137 | |||||||
Issuance of ordinary shares for promissory notes redemption, amount | 1,100,000 | $ 94,827 | 0 | 1,005,173 | 0 | 0 | 1,100,000 | 0 |
Balance, shares at Sep. 30, 2023 | 6,094,078 | |||||||
Balance, amount at Sep. 30, 2023 | $ 161,975,926 | $ 1,218,816 | $ (18,415,524) | $ 160,571,517 | $ 1,695,629 | $ 16,905,488 | $ 161,975,926 | $ 0 |
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 | $ 2,543,813 | $ 2,223,979 | $ 2,356,438 |
Net loss from discontinued operations | 0 | 0 | 51,352 |
Net income from continuing operations | 2,543,813 | 2,223,979 | 2,407,790 |
Changes in allowances - accounts receivable | 7,915 | (89) | (116,862) |
Changes in allowances - advances to suppliers | 0 | 3,526 | (758,232) |
Changes in allowances - inventories | (40,963) | 53,736 | (19,323) |
Changes in allowances - long-term investment | 92,944 | 0 | 0 |
Depreciation and amortization | 26,870 | 64,287 | 68,418 |
Amortization of operating lease right-of-use assets | 45,473 | 85,280 | 0 |
Non-cash lease expenses | 0 | 91,573 | |
Loss on short-term investment | 5,870 | 145,843 | 0 |
Gain from disposal of property and equipment | 0 | 0 | 0 |
Loss on disposal of property and equipment | 124 | 0 | 0 |
Loss from disposal of subsidiaries | (5,592) | 15,243 | 0 |
Amortization of debt issuance costs | 1,691,609 | 48,160 | 0 |
Interest receivable from other receivable | 0 | (445,693) | 0 |
Amortization of biological assets | 217,207 | 218,317 | 0 |
Deferred income tax provision | 164,600 | (176,633) | 0 |
Change in fair value of derivative liability | (873,767) | (419,649) | 0 |
Share-based compensation | 0 | 2,007,328 | 1,260,674 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (9,045,179) | 6,483,703 | (13,040,158) |
Advances to suppliers | (71,298,597) | 12,767,241 | (40,989,649) |
Notes receivables | 3,558,349 | (3,818,479) | 0 |
Inventory, net | (3,272,753) | 515,599 | (1,212,031) |
Other current assets | (222,440) | (49,765) | (258,117) |
Accounts payable | 946,285 | 156,598 | 26,404 |
Operating lease liabilities | (63,467) | (38,478) | (75,879) |
Other current liabilities | (232,463) | 795,434 | (559,915) |
Net cash provided by (used in) operating activities from continuing operations | (75,754,162) | 20,635,488 | (53,231,108) |
Net cash provided by operating activities from discontinued operations | 0 | 0 | 324,095 |
Net cash (used in) provided by operating activities | (75,754,162) | 20,635,488 | (52,907,013) |
Cash flows from investing activities | |||
Purchase of property and equipment | (314) | (2,946) | (4,686) |
Purchase of intangible assets | 0 | 0 | (1,363) |
Additions to biological assets | 0 | 0 | 0 |
Short-term deposits | 35,444,402 | (35,296,981) | (2,772,430) |
Advances to a third party | 0 | 0 | (107,817) |
Acquisition of subsidiaries | 0 | (1,521,422) | 0 |
Repayment of advances to a third party | 0 | 106,500 | 0 |
Proceeds from disposal of subsidiary, net of cash | 12,998 | 2,662,459 | 0 |
Purchase of long-term investments | (7,088,880) | (152,142) | 0 |
Purchase of short-term investments | (152,142) | 0 | |
Other receivables | (7,504,211) | (7,607,108) | (9,241,432) |
Advances to related parties | (7,096) | (27,297) | 0 |
Repayment of advances to related party | 30,872 | 0 | 0 |
Net cash used in investing activities from continuing operations | 35,896,193 | (41,991,079) | (12,127,728) |
Net cash used in investing activities from discontinued operations | 0 | 0 | (130,492) |
Net cash provided by (used in) investing activities | 35,896,193 | (41,991,079) | (12,258,220) |
Cash flows from financing activities | |||
Gross proceeds from bank acceptance notes payable | 0 | 13,404 | 0 |
Repayment of bank acceptance notes payable | (12,491) | 0 | (3,388,525) |
Net proceeds from share issuance | 7,930,000 | 6,000,000 | 126,029,588 |
Net proceeds from convertible note issuance | 0 | 6,000,000 | 0 |
Borrowings from bank loans | 4,779,323 | 1,959,591 | 2,310,358 |
Repayments of bank loans | (1,688,040) | (2,283,527) | (628,931) |
Repayment of advances from related parties | 0 | (54,600) | (2,147,199) |
Proceeds from advances from related parties | 9,150 | 0 | 489,997 |
Net cash provided by financing activities from continuing operations | 11,017,942 | 11,634,868 | 122,665,288 |
Net cash (used by) provided by financing activities from discontinued operations | 0 | 0 | (252,488) |
Net cash provided by financing activities | 11,017,942 | 11,634,868 | 122,412,800 |
Effect of exchange rate changes on cash | 462,261 | (8,363,680) | (150,204) |
Net (decrease) increase in cash | (28,377,766) | (18,084,403) | 57,097,363 |
Cash, beginning of year | 41,167,501 | 59,251,904 | 2,165,151 |
Cash | 12,789,735 | 41,167,501 | 59,251,904 |
Less: cash from discontinued operations | 0 | 0 | (10,610) |
Cash end of year | 12,789,735 | 41,167,501 | 59,251,904 |
Reconciliation of cash and restricted cash, beginning of year | |||
Cash | 41,167,501 | 59,251,904 | 481,906 |
Restricted cash | 0 | 0 | 1,617,000 |
Cash from continuing operations | 41,167,501 | 59,251,904 | 2,098,906 |
Cash from discontinued operations | 0 | 0 | 66,245 |
Reconciliation of cash and restricted cash, end of year | |||
Cash from continuing operations | 12,789,735 | 41,167,501 | 59,251,904 |
Cash from discontinued operations | 0 | 0 | 10,610 |
Supplemental disclosure information: | |||
Income taxes paid | 67,572 | 5,443 | 22,100 |
Interest paid | 165,179 | 82,970 | 116,700 |
Non-cash financing activities | |||
Right of use assets obtained in exchange for operating lease obligations | 2,888 | 0 | 593,457 |
Conversion of notes to ordinary shares | 1,100,000 | 0 | 0 |
Accrued interest for convertible notes | $ 1,691,609 | $ 5,753 | $ 0 |
Organization and nature of busi
Organization and nature of business | 12 Months Ended |
Sep. 30, 2023 | |
Organization and nature of business | |
Organization and nature of business | Note 1 - Organization and nature of business Farmmi, Inc. (“FAMI” or the “Company”) is a holding company incorporated under the laws of the Cayman Islands on July 28, 2015. FAMI owns 100% equity interest of Farmmi International Limited (“Farmmi International”), a Hong Kong company, which in turn owns 100% equity interest of Farmmi (Hangzhou) Enterprise Management Co., Ltd. (“Farmmi Enterprise”), Lishui Farmmi Technology Co., Ltd. (“Farmmi Technology”), Zhejiang Farmmi (Hangzhou) Ecology Agriculture Development Co., Ltd. (“Farmmi Ecology”) and Farmmi (Hangzhou) Health Development Co., Ltd (“Farmmi Heath Development”), four wholly foreign-owned entities (each, a “WFOE”) formed by Farmmi International under the laws of the People’s Republic of China (“PRC” or “China”). Farmmi Health Development owns 100% equity interest in Zhejiang Farmmi Medical Health Technology Co., Ltd (“Farmmi Medical Health”) which was established under the laws of the PRC on September 18, 2021. Farmmi Enterprise, Farmmi Technology and Farmmi Ecology own 30%, 40% and 30% of equity interests in Zhejiang Farmmi Holdings Group Co., Ltd. (“Farmmi Holdings”), respectively, which was established under the laws of the PRC on September 18, 2021. On December 23, 2021, a board resolution of Zhejiang Farmmi Agricultural Technology Group Co., Ltd. (“Farmmi Agricultural”) (formerly known as Hangzhou Suyuan Agriculture Technology Co., Ltd., “Suyuan Agriculture”), a company incorporated in the PRC, was passed to reorganize certain companies mentioned below with nil consideration. Under the above-mentioned reorganization, (i) on December 30, 2021, Farmmi Holdings started to own 100% interest in Farmmi Agricultural, which was previously owned by Farmmi Enterprise (31.7%) and Farmmi Technology (68.3%); (ii) Farmmi Agricultural owns 100% of the equity interest of Zhejiang Farmmi Agricultural Supply Chain Co., Ltd (“Farmmi Supply Chain”), a company established under the laws of the PRC, on February 10, 2022 and was previously 100% owned by Farmmi Ecology. On September 27, 2021, the Company, through its subsidiary, Zhejiang Farmmi Agricultural Supply Chain Co., Ltd., acquired Jiangxi Xiangbo Agriculture and Forestry Development Co. Ltd (“Jiangxi Xiangbo”), established under the laws of the PRC, from Ganzhou Tengguang Agriculture and Forestry Development Co., Ltd. for a total price of RMB70 million ($11 million). After the consummation of the acquisition, Farmmi Supply Chain owns 100% equity interest in Jiangxi Xiangbo, which in turn owns 100% interest in Yudu County Yada Forestry Co., Ltd, established under the laws of the PRC (“Yudu Yada”). As a result, Jiangxi Xiangbo and Yudu Yada became the subsidiaries of the Company. On September 27, 2021, the Company, through its subsidiary, Zhejiang Farmmi Agricultural Supply Chain Co., Ltd., acquired Guoning Zhonghao (Ningbo) Trading Co., Ltd. (“Guoning Zhonghao”), established under the laws of the PRC, from Ningbo Guoning Zhonghao Technology Co., Ltd. and Jianxin Huang, an individual, for a total consideration of RMB5,000 ($788). After the consummation of the acquisition, Farmmi Supply Chain owns 100% equity interest in Guoning Zhonghao. Farmmi Agricultural owns 100% of equity interests in Zhejiang FLS Mushroom Co., Ltd. (“FLS Mushroom”), Zhejiang Farmmi Biotechnology Co., Ltd. (“Farmmi Biotech”) and Zhejiang Farmmi Food Co., Ltd. (“Farmmi Food”) and 77.2% equity interest in Lishui Farmmi E-Commerce Co., Ltd. (“Farmmi E-Commerce”). FLS Mushroom, Farmmi Biotech, Farmmi Food, and Farmmi E-Commerce”) were all established under the laws of the PRC. The remaining 22.8% equity interest in Farmmi E-Commerce is owned by Hangzhou Nongyuan Network Technology Co., Ltd. (“Nongyuan Network”). Nongyuan Network was incorporated on December 8, 2015 under the laws of the PRC and focuses on the development of network marketing and provides a network platform for sales of agriculture products. On September 18, 2016, Farmmi Agricultural entered into a series of contractual agreements with Zhengyu Wang, the then sole-owner of Nongyuan Network. These agreements include an Exclusive Management Consulting and Technology Agreement, an Equity Pledge Agreement, an Exclusive Call Option Agreement, a Proxy Agreement and a Power of Attorney (collectively, the “Original VIE Agreements”). The Original VIE Agreements empowered Farmmi Agricultural to exercise management control over the activities that most significantly impact the operation results of Nongyuan Network, obligated Farmmi Agricultural to absorb a majority of the risk of loss from Nongyuan Network’s activities, and entitled Farmmi Agricultural to receive a majority of their residual returns. In essence, Farmmi Agricultural and the Company had gained effective control over Nongyuan Network. On December 4, 2019, Zhengyu Wang transferred 100% of his shares of Nongyuan Network to his daughter Xinyang Wang. As a result, Xinyang Wang started to hold 100% of the ownership interest of Nongyuan Network. On December 10, 2019, Xinyang Wang, as the new sole owner of Nongyuan Network, signed a series of VIE agreements (the “Xinyang Wang VIE Agreements”) with Nongyuan Network and Farmmi Agricultural. On May 15, 2020, the following agreements were signed with the effective date of December 10, 2019: (1) Zhengyu Wang, Nongyuan Network and Farmmi Agricultural signed a termination agreement to confirm that the Original VIE Agreements had been terminated because Zhengyu Wang was no longer the shareholder of Nongyuan Network; (2) Zhengyu Wang, Dehong Zhang (the legal representative of Nongyuan Network), Xinyang Wang, Nongyuan Network and Farmmi Agricultural signed a joint statement to confirm that the board of directors of the Company had the ultimate authority over the matters of the VIE (defined below), Nongyuan Network. FAMI believes that Xinyang Wang VIE Agreements enable Farmmi Agricultural and FAMI to keep effective control over Nongyuan Network, and as a result Nongyuan Network should be considered as a Variable Interest Entity (“VIE”) under the Statement of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810 Consolidation. Accordingly, the accounts of Nongyuan Network are consolidated with those of Farmmi Agricultural. On September 7, 2021, Zhejiang Yitang Medical Service Co., Ltd. (“Yitang Mediservice”) was established under the laws of the PRC. Nongyuan Network and Farmmi Ecology own 95% and 5% of the equity interests in Yitang Mediservice, respectively. In April 20, 2023, Yitang Mediservice was reorganized and Farmmi Medical Health and Farmmi Ecology own 95% and 5% of the equity interests in Yitang Mediservice. On September 17, 2021, Zhejiang Yiting Medical Technology Co., Ltd. (“Yiting Meditech”) was established under the laws of the PRC. Yitang Mediservice owns 100% interest in Yiting Meditech. On January 10, 2022, Lishui Yifeng Medical Health Technology Co., Ltd (“Yifeng Medihealth”) was established under the laws of the PRC. Yitang Mediservice owns 100% of the equity interest in Yifeng Medihealth. Yifeng Medihealth was deregistered in April 2023. On January 10, 2022, Lishui Yilong Enterprise Management Co., Ltd (“Yilong Enterprise”) was established under the laws of the PRC. Yitang Mediservice owns 100% of the equity interest in Yilong Enterprise. Yilong Enterprise was deregistered in April 2023. On January 19, 2022, Lishui Yifeng Yilong Medical Technology Development Partnership (Limited Partnership) (“YF YL MediTech”) was established under the laws of the PRC. Yifeng Medihealth owns 20% and Yilong Enterprise owns 80% interest in YF YL MediTech. YF YL MediTech was deregistered in April 2023. On January 19, 2022, Lishui Yitang Shangke Medical and Health Technology Partnership (Limited Partnership) (“YT SK Medihealth”) was established under the laws of the PRC. Yifeng Medihealth owns 20% and Yilong Enterprise owns 80% interest in YT SK Medihealth. Yifeng Medihealth was deregistered in April 2023. On May 27, 2022, Zhejiang Farmmi Ecological Agriculture Technology Co., Ltd (“Farmmi Eco Agri”) was established under the laws of the PRC. Farmmi International owns 100% of the equity interest in Farmmi Eco Agri. On July 13, 2022, Farmmi Canada Inc. (Farmmi Canada) was established under the laws of the Canada. Farmmi Inc. owns 100% of the equity interest in Farmmi Canada. On September 27, 2021, an agreement was signed to divest 100% interest in Forest Food to a third party for total cash consideration of RMB18.2 million (approximately $2.8 million) on October 1, 2021. Certain prior periods of the Company have been reclassified to conform to current period presentation as discontinued operations. Such reclassifications had no effect on net income (loss) or cash flows as previously reported. On September 30, 2022, an agreement was signed to divest 100% interest in FLS Mushroom to a third party for total cash consideration of RMB24.1 million (approximately $3.4 million) on October 1, 2022. On November 14, 2022, Ningbo Farmmi Baitong Trade Co., Ltd (“Ningbo Farmmi Trade”) was established under the laws of the PRC. Farmmi Agricultural owns 100% equity of Ningbo Farmmi Trade. On August 24, 2023, Farmmi USA Inc (“Farmmi USA”) was established under the laws of the United States of America. FAMI owns 100% equity of Farmmi USA. As of September 30, 2023, details of the subsidiaries of FAMI are set out below: Name of Entity Date of Incorporation Place of Incorporation % of Ownership Principal activities FAMI July 28, 2015 Cayman Parent Holding company Farmmi International August 20, 2015 Hong Kong 100% Holding company Farmmi Enterprise May 23, 2016 Zhejiang, China 100% Holding company Farmmi Technology June 6, 2016 Zhejiang, China 100% Holding company Farmmi Agricultural December 8, 2015 Zhejiang, China 100% Holding company FLS Mushroom March 25, 2011 Zhejiang, China 100% Light processing and distribution of dried mushrooms Farmmi Food December 26, 2017 Zhejiang, China 100% Dehydrating, further processing and distribution of edible fungus Farmmi E-Commerce March 22, 2019 Zhejiang, China 100% Technology development, technical services and technical consultation related to agricultural products Farmmi Biotech April 7, 2021 Zhejiang, China 100% Research and development of mushroom powder and mushroom extract Farmmi Ecology April 25, 2021 Zhejiang, China 100% Holding company Farmmi Supply Chain May 11, 2021 Zhejiang, China 100% Agricultural products supply chain Farmmi Health Development September 17, 2021 Zhejiang, China 100% Health development Farmmi Medical Health September 18, 2021 Zhejiang, China 100% Medical health Farmmi Holdings September 18, 2021 Zhejiang, China 100% Holding company Jiangxi Xiangbo June 18, 2021 Jiangxi, China 100% Holding company Yudu Yada November 10, 2010 Jiangxi, China 100% Forestry development Guoning Zhonghao June 15, 2021 Zhejiang, China 100% Agriculture exporting Farmmi Eco Agri May 27, 2022 Zhejiang, China 100% Agriculture products Farmmi Canada July 13, 2022 Canada 100% Agriculture products Ningbo Farmmi Trade November 14, 2022 Zhejiang, China 100% Agriculture products Yitang Mediservice September 7, 2021 Zhejiang, China 100% Medical services Yiting Meditech September 17, 2021 Zhejiang, China 100% Medical technology Farmmi USA August 24, 2023 California, USA 100% Trading Nongyuan Network July 7, 2016 Zhejiang, China 0 (VIE) Trading FAMI through its subsidiaries, VIE and VIE’s subsidiaries (herein collectively referred to as the “Company”) are principally engaged in processing, distributing and trading dried Shiitake mushrooms, Mu Er (also known as auricularia auricula-judae or jelly fungi), corn, cotton, forestry and other products. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Sep. 30, 2023 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | Note 2 - Summary of significant accounting policies Basis of presentation and principles of consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and have been consistently applied. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The consolidated financial statements of the Company include the financial statements of the Company, its subsidiaries, the VIEs and the subsidiaries of the VIEs. All inter-company transactions and balances between the Company, its subsidiaries, the VIEs and the subsidiaries of the VIEs have been eliminated upon consolidation. Results of subsidiaries, businesses acquired from third parties and the VIEs are consolidated from the date on which control is transferred to the Company. Consolidation of variable interest entities In accordance with accounting standards regarding consolidation of variable interest entities (“VIEs”), VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision-making ability. All VIEs with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. The Company determined that Nongyuan Network is a VIE because the Company is the primary beneficiary of risks and rewards of this VIE. The condensed consolidating table below disaggregated the Consolidated Balance Sheets of the Company into FAMI, the VIE and its subsidiaries, the WFOE that is the primary beneficiary of the VIEs and an aggregation of other entities that are consolidated as of September 30, 2023 and 2022. As of September 30, 2023 Other entities WFOE that is that are the primary VIE and its Consolidated consolidated beneficiary subsidiaries FAMI total Intercompany receivables $ 144,664,527 $ 131,992,092 $ 7,086,579 $ 151,681,406 - Current assets excluding intercompany receivables 138,871,675 353,985 18,841,671 103,844 $ 158,171,175 Current assets $ 283,536,202 $ 132,346,077 $ 25,928,250 $ 151,785,250 $ 158,171,175 Investment in subsidiaries - $ 37,712,692 - - - Non-current assets excluding investment in subsidiaries $ 16,627,615 - $ 1,296 - $ 16,628,911 Non-current assets $ 16,627,615 $ 37,712,692 $ 1,296 - $ 16,628,911 Total assets $ 300,163,817 $ 170,058,769 $ 25,929,546 $ 151,785,250 $ 174,800,086 Intercompany payables $ 290,760,077 $ 124,634,218 $ 19,812,080 $ 218,229 - Current liabilities excluding intercompany payables 634,111 756,017 3,530,735 5,792,119 $ 10,712,982 Current liabilities $ 291,394,188 $ 125,390,235 $ 23,342,815 $ 6,010,348 $ 10,712,982 Non-current liabilities $ 533,315 $ 106,737 1,471,126 - $ 2,111,178 Total liabilities $ 291,927,503 $ 125,496,972 $ 24,813,941 $ 6,010,348 $ 12,824,160 Total shareholders' equity (net assets) $ 8,236,314 $ 44,561,797 $ 1,115,605 $ 145,774,902 $ 161,975,926 As of September 30, 2022 Other entities WFOE that is that are the primary VIE and its Consolidated consolidated beneficiary subsidiaries FAMI total Intercompany receivables $ 163,676,919 $ 114,994,912 - $ 140,445,311 - Current assets excluding intercompany receivables $ 91,926,232 $ 33,986 $ 57,133,125 $ 4,161,037 $ 153,254,380 Current assets $ 255,603,151 $ 115,028,898 $ 57,133,125 $ 144,606,348 $ 153,254,380 Investment in subsidiaries - $ 40,424,517 - - - Non-current assets excluding investment in subsidiaries $ 10,500,217 $ 8,484 $ 19,772 - $ 10,528,473 Non-current assets $ 10,500,217 $ 40,433,001 $ 19,772 - $ 10,528,473 Total assets $ 266,103,368 $ 155,461,899 $ 57,152,897 $ 144,606,348 $ 163,782,853 Intercompany payables $ 255,440,223 $ 109,255,668 $ 54,420,549 $ 702 - Current liabilities excluding intercompany payables $ 590,393 $ 226,814 $ 1,789,357 $ 5,682,757 $ 8,289,321 Current liabilities $ 256,030,616 $ 109,482,482 $ 56,209,906 $ 5,683,459 $ 8,289,321 Non-current liabilities $ 657,734 $ 151,707 - - $ 809,441 Total liabilities $ 256,688,350 $ 109,634,189 $ 56,209,906 $ 5,683,459 $ 9,098,762 Total shareholders' equity (net assets) $ 9,415,018 $ 45,827,710 $ 942,991 $ 138,922,889 $ 154,684,091 The condensed consolidating table below disaggregated the Consolidated Statements of Operations and Comprehensive Income (Loss) of the Company into FAMI, the VIE and its subsidiaries, the WFOE that is the primary beneficiary of the VIEs and an aggregation of other entities that are consolidated for the financial years ended September 30, 2023, 2022 and 2021. For the year ended September 30, 2023 Other entities WFOE that is that are the primary VIE and its Consolidated consolidated beneficiary subsidiaries FAMI total Revenues $ 74,224,063 $ 16,034,543 $ 20,106,281 - $ 110,364,887 Cost of revenues (70,021,350 ) (16,023,779 ) (20,033,003 ) - (106,078,132 ) Gross profit 4,202,713 10,764 73,278 - 4,286,755 Operating expenses (1,028,294 ) (71,676 ) (231,462 ) (913,948 ) (2,245,380 ) Income (loss) from operations 3,174,419 (60,912 ) (158,184 ) (913,948 ) 2,041,375 Other income (expenses) 1,514,162 (68,416 ) 634,225 (1,264,040 ) 815,931 Income (loss) before income taxes 4,688,581 (129,328 ) 476,041 (2,177,988 ) 2,857,306 Provision for income taxes (270,874 ) (8,556 ) (34,063 ) - (313,493 ) Net income (loss) $ 4,417,707 ($137,884) $ 441,978 ($2,177,988) $ 2,543,813 For the year ended September 30, 2022 Other entities WFOE that is that are the primary VIE and its Consolidated consolidated beneficiary subsidiaries FAMI total Revenues $ 64,795,082 $ 9,111,073 $ 25,307,224 - $ 99,213,379 Cost of revenues (60,272,018 ) (9,053,547 ) (24,449,728 ) - (93,775,293 ) Gross profit 4,523,064 57,526 857,496 - 5,438,086 Operating expenses (782,009 ) (50,344 ) (701,516 ) (2,961,849 ) (4,495,718 ) Income (loss) from operations 3,741,055 7,182 155,980 (2,961,849 ) 942,368 Other income (expenses) 560,497 20,510 213,771 368,466 1,163,244 Income (loss) before income taxes 4,301,552 27,692 369,751 (2,593,383 ) 2,105,612 Provision for income taxes 114,801 9,182 (5,616 ) - 118,367 Net income (loss) $ 4,416,353 $ 36,874 $ 364,135 (2,593,383 ) $ 2,223,979 For the financial year ended September 30, 2021 WFOE Other that is the entities primary that are beneficiary VIE and its Consolidated consolidated of the VIE subsidiaries FAMI total Revenues from continuing operations $ 33,068,045 $ 762,771 $ 5,459,135 $ - $ 39,289,951 Cost of revenues from continuing operations (28,847,801 ) (742,933 ) (4,589,936 ) - (34,180,670 ) Gross profit from continuing operations 4,220,244 19,838 869,199 - 5,109,281 Operating expenses 588,892 (8,940 ) (804,851 ) (2,031,506 ) (2,256,405 ) Income (loss) from operations 4,809,136 10,898 64,348 (2,031,506 ) 2,852,876 Other expenses (391,819 ) (19,990 ) (2,033 ) (5,673 ) (419,515 ) Income (loss) before income taxes 4,417,317 (9,092 ) 62,315 (2,037,179 ) 2,433,361 Provision for income taxes (8,085 ) - (17,486 ) - (25,571 ) Net income (loss) from continuing operations $ 4,409,232 $ (9,092 ) $ 44,829 $ (2,037,179 ) $ 2,407,790 The condensed consolidating table below disaggregated the Consolidated Statements of Cash Flows of the Company into FAMI, the VIE and its subsidiaries, the WFOE that is the primary beneficiary of the VIEs and an aggregation of other entities that are consolidated for the financial years ended September 30, 2023, 2022 and 2021. For the year ended September 30, 2023 WFOE Other that is the entities primary VIE that are beneficiary and its Consolidated consolidated of the VIE subsidiaries FAMI total Net cash (used in) provided by operating activities ($17,601,436) ($579,125) ($45,586,506) ($11,987,095) ($75,754,162) Net cash provided by (used in) investing activities (7,121,332 ) - 43,017,525 - 35,896,193 Net cash provided by (used in) financing activities 32,778 539,287 2,515,877 7,930,000 11,017,942 Effect of exchange rate changes on cash 462,420 5,227 (5,386 ) - 462,261 Net (decrease) increase in cash and restricted cash (24,227,570 ) (34,611 ) (58,490 ) (4,057,095 ) (28,377,766 ) Cash, beginning of year 183,030 37,393 61,196 4,057,179 41,167,501 Cash, end of year ($24,044,540) $ 2,782 $ 2,706 $ 84 $ 12,789,735 For the year ended September 30, 2022 WFOE Other that is the entities primary VIE that are beneficiary and its Consolidated consolidated of the VIE subsidiaries FAMI total Net cash (used in) provided by operating activities from continuing operations $ (14,188,275 ) $ (3,189,440 ) $ 46,404,339 $ (8,391,136 ) $ 20,635,488 Net cash provided by (used in) investing activities from continuing operations 1,140,848 2,738,559 (45,870,486 ) - (41,991,079 ) Net cash provided by (used in) financing activities from continuing operations 649,782 373,382 (899,449 ) 11,511,153 11,634,868 Effect of exchange rate changes on cash and restricted cash (8,345,494 ) (5,078 ) (13,108 ) - (8,363,680 ) Net (decrease) increase in cash and restricted cash (20,743,139 ) (82,577 ) (378,704 ) 3,120,017 (18,084,403 ) Cash and restricted cash from continuing operations, beginning of year 183,030 116,447 434,135 522,915 59,251,904 Cash and restricted cash from continuing operations, end of year $ (20,560,109 ) $ 33,870 $ 55,431 $ 4,057,179 $ 41,167,501 For the financial year ended September 30, 2021 WFOE Other that is the entities primary that are beneficiary of VIE and its Consolidated consolidated the VIE subsidiaries FAMI total Net cash provided by (used in) operating activities from continuing operations $ 67,709,967 $ 3,246,067 $ (338,559 ) $ (123,848,583 ) $ (53,231,108 ) Net cash used in investing activities from continuing operations (9,353,935 ) (2,772,430 ) (1,363 ) - (12,127,728 ) Net cash provided by (used in) financing activities from continuing operations 144,197 (616,095 ) (1,232,191 ) 124,369,377 122,665,288 Effect of exchange rate changes on cash and restricted cash (506,653 ) 258,485 94,714 - (153,454 ) Net increase (decrease) in cash and restricted cash 57,993,576 116,027 (1,477,399 ) 520,794 57,152,998 Cash and restricted cash from continuing operations, beginning of year 183,030 420 1,913,335 2,121 2,098,906 Cash and restricted cash from continuing operations, $ 58,176,606 $ 116,447 $ 435,936 $ 522,915 $ 59,251,904 end of year Cash is transferred within the Company through the banking system in PRC. Under the VIE agreements, the Company intends to distribute 95% of VIE’s earnings after eliminating VIE’s accumulated losses and making appropriation of VIE’s after-tax net income into the statutory surplus reserve based on at least 10% of the after-tax net income determined in accordance with generally accepted accounting principles of the PRC. When there are retained earnings available for distribution, the distribution of VIE’s earnings will be through payment of service fees to Farmmi Agricultural, such service fee is subject to 6% value-added sales tax, other taxes of 12% which calculation is based on 6% value-added taxes and Farmmi Agricultural is subject to corporate income tax up to 25% for its net income. Under the VIE agreements, when there is a change of shareholder in VIE, amount owed by VIE to the Company should be first settled. The condensed consolidating table below quantified the transfer between FAMI, its subsidiaries, VIE and its subsidiaries, WFOE that is the primary beneficiary of the VIE and the investors for the years ended September 30, 2023, 2022 and 2021, respectively. These transfers were mainly for the purpose of providing working capital between FAMI, its subsidiaries, VIE and its subsidiaries and WFOE that is the primary beneficiary of the VIE. For the year ended September 30, 2023 Transfer to WFOE that is the Other primary VIE entities beneficiary and its that are Transfer from FAMI of the VIE subsidiaries consolidated Investors FAMI - - - $ 212,652 - WFOE that is the primary beneficiary of the VIE - - $ 505,077 $ 9,054,194 - VIE and its subsidiaries - $ 1,411,434 - $ 12,944 - Other entities that are consolidated - $ 1,893,667 $ 71,277 - - For the year ended September 30, 2022 Transfer to WFOE that is the Other primary VIE entities beneficiary and its that are Transfer from FAMI of the VIE subsidiaries consolidated Investors FAMI $ 1,217,137 - $ 913,005 - WFOE that is the primary beneficiary of the VIE - $ 14,594,586 $ 19,188,742 - VIE and its subsidiaries - $ 6,394,084 $ 15,293,176 - Other entities that are consolidated $ 984,655 $ 26,961,378 $ 14,744,568 - For the year ended September 30, 2021 Transfer to WFOE that is the Other primary VIE entities beneficiary and its that are Transfer from FAMI of the VIE subsidiaries consolidated Investors FAMI $ - $ 45,500 $ 124,670,237 $ - WFOE that is the primary beneficiary of the VIE $ 1,668,758 $ - $ 38,204,550 $ - VIE and its subsidiaries $ - $ - $ 1,601,406 $ - Other entities that are consolidated $ 319,981 $ 24,075,199 $ 5,624,880 $ - Use of estimates In preparing the consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting year. Significant items subject to such estimates and assumptions include allowance for doubtful accounts and advances to suppliers, the valuation of inventories, the useful lives of property and equipment, the valuation of derivative liabilities of the notes, the recoverability of long-lived assets, valuation of warrants and the valuation of deferred tax assets. Cash Cash includes currency on hand and deposits held by banks that can be added or withdrawn without limitation. All cash balances are in bank accounts in PRC. Cash maintained in banks within the People’s Republic of China of less than RMB0.5 million (equivalent to $68,531) per bank are covered by "deposit insurance regulation" promulgated by the State Council of the People’s Republic of China. Short-term deposit Short-term deposit relates to fixed terms cash deposits with financial institutions with original maturities of more than three months and less than a year. As of September 30, 2023 and 2022, the Company had short-term deposit of nil and $35,144,444 earning interest at 2.05% per annum with one year maturity on October 15, 2022. Accounts receivable, net Accounts receivable are presented net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s payment history, its current credit-worthiness and current economic trends. Accounts are written off after efforts at collection prove unsuccessful. As of September 30, 2023 and 2022, allowance for doubtful accounts was $14,719 and $7,249, respectively. Advances to suppliers, net Advances to suppliers represent prepayments made to ensure continuous high-quality supplies and favorable purchase prices for premium quality. These advances are directly related to the purchases of raw materials used to fulfill sales orders. The Company is required from time to time to make cash advances when placing its purchase orders. These advances are settled upon suppliers delivering raw materials to the Company when the transfer of ownership occurs. The Company reviews its advances to suppliers on a periodic basis and makes general and specific allowances when there is doubt as to the ability of a supplier to provide supplies to the Company or refund an advance. As of September 30, 2023 and 2022, allowance for doubtful accounts was $3,176 and $3,258, respectively. Inventory, net The Company values its inventories at the lower of cost, determined on a weighted average basis, or net realizable value. The Company reviews its inventories periodically to determine if any reserves are necessary for potential obsolescence or if the carrying value exceeds net realizable value. The Company recorded inventory reserve of $8,809 and $49,652 as of September 30, 2023 and 2022, respectively. Biological assets Biological assets mainly consist of bamboo forests managed for future bamboo harvest and sales, of which the Company owned 82 forest right certificates with expiry dates ranging from December 30, 2026 to December 9, 2070 and with an area of 9.6 km 2 Depreciation expense was $0.2 million and $0.2 million for the years ended September 30, 2023 and 2022, respectively. Property and equipment, net Property and equipment are stated at cost less accumulated depreciation. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to its present working condition and location for its intended use. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets. The estimated useful lives for significant property and equipment are as follows: Machinery and equipment 5 - 10 years Transportation equipment 4 years Office equipment 3 - 5 years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. Intangible assets, net Intangible assets consist primarily of purchased software. Intangible assets are stated at cost less accumulated amortization, which are amortized using the straight-line method with the estimated useful lives of three years. Amortization expenses were $6,805, $31,984 and $46,085 for the years ended September 30, 2023, 2022 and 2021, respectively. Impairment of long-lived assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. No impairment of long-lived assets was recognized for fiscal years ended September 30, 2023, 2022 and 2021. Revenue recognition The Company follows ASU 2014-09 Revenue from Contracts with Customers The Company recognizes revenue when it transfers its goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. All of the Company’s contracts have a single performance obligation satisfied at a point in time and the transaction price is stated in the contract, usually as a price per ton. The Company’s contract liabilities primarily include advance from customers. As of September 30, 2023 and 2022, the contract liabilities are $0.4 million and $0.6 million, respectively, and included in other current liabilities on the consolidated balance sheets. For fiscal years ended September 30, 2023, 2022 and 2021, there was no revenue recognized from performance obligations related to prior periods. Refer to Note 14 - Segment reporting for details of revenue segregation. Cost of revenues Cost of revenues includes cost of raw materials purchased, inbound freight cost, cost of direct labor, depreciation expense and other overhead. Write-down of inventory for lower of cost or net realizable value adjustments is also recorded in cost of revenues. Earnings (loss) per share The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, Earnings per Share The component of basic and diluted EPS were as follows: Year Ended September 30, 2023 2022 2021 Net income available for ordinary shareholders (A) $ 2,543,813 $ 2,223,979 $ 2,356,437 - continuing operations $ 2,543,813 $ 2,223,979 $ 2,407,790 - discontinued operations - - ($51,353) Weighted average outstanding ordinary shares (B) - basic 3,628,923 2,905,984 514,213 - diluted 8,452,875 2,905,984 522,276 Earnings (loss) per ordinary share - basic (A/B) $ 0.70 $ 0.77 $ 4.58 - Continuing operations $ 0.70 $ 0.77 $ 4.68 - Discontinued operations $ 0.00 $ 0.00 ($0.10) Earnings (loss) per ordinary share - diluted (A/B) $ 0.30 $ 0.77 $ 4.51 - Continuing operations $ 0.30 $ 0.77 $ 4.61 - Discontinued operations $ 0.00 $ 0.00 ($0.10) ____________ 1. On September 25, 2023, the Company consolidated its ordinary shares at a ratio of one-for-eight. All shares and associated amounts have been retroactively restated to reflect the reverse stock split. Fair value of financial instruments The FASB ASC Topic 820, Fair Value Measurements The three levels are defined as follows: Level 1 - Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. Level 3 - Inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, restricted cash, accounts receivable, advances to suppliers, other current assets, accounts payable, due to related parties, operating lease liabilities -current, other current liabilities, short-term bank loans and bank acceptance notes payable approximate their recorded values due to their short-term maturities. The fair value of longer term long-term bank loan and operating lease liabilities approximate their recorded values as their stated interest rates approximate the rates currently available. The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2023 and 2022 and indicates the fair value hierarchy of the valuation technique that the Company utilized to determine such fair value. Fair value measured as of September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Short-term investments $ - $ - $ - $ - Biological assets $ - $ - $ 9,187,640 $ 9,187,640 Liabilities: Derivative liability $ - $ - $ - $ - Fair value measured as of September 30, 2022 Level 1 Level 2 Level 3 Total Assets: Short-term investments $ 5,820 $ - $ - $ 5,820 Biological assets $ - $ - $ 9,638,722 $ 9,638,722 Liabilities: Derivative liability $ - $ - $ 3,450,000 $ 3,450,000 Debt issuance costs and debt discounts The Company may record debt issuance costs and/or debt discounts in connection with raising funds through the issuance of debt. These costs may be paid in the form of cash, or equity (such as warrants). These costs are amortized to interest expense through the maturity of the debt. If a conversion of the underlying debt occurs prior to maturity a proportionate share of the unamortized amounts is immediately expensed. Fair value of the embedded derivatives in the convertible promissory notes The convertible promissory notes consisted of a liability component (“financial liability”) and an embedded derivative conversion feature (“derivative liability”). The net proceeds of these convertible promissory notes were first allocated to the fair value of the derivative liability. Subsequent changes in fair value of the derivative liability were recorded in other income. The Company measures the fair value of the embedded derivative by reference to the fair value on the issuance date and maturity date of the convertible promissory notes and revalues them at each reporting date. In determining the fair value of the embedded derivatives, the Company used the Black-Scholes option pricing model with the following assumptions: average volatility rate; market price at the reporting date; risk-free interest rate; and the remaining life of the embedded derivatives. The inputs used in the Black-Scholes model are taken from observable markets. Changes to assumptions used can affect the amounts recognized in the consolidated financial statements. Concentrations of credit risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash, accounts receivable and advances to suppliers. As of September 30, 2023 and 2022, $12.8 million and $76.3 million of the Company’s cash is maintained in banks within the People’s Republic of China of which deposits of RMB0.5 million (equivalent to $68,531) per bank are covered by “deposit insurance regulation” promulgated by the State Council of the People’s Republic of China. The Company has not experienced any losses in such accounts. A significant portion of the Company’s sales are credit sales primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas. The Company also makes cash advances to certain suppliers to ensure the stable supply of key raw materials. The Company performs ongoing credit evaluations of its customers and key suppliers to help further reduce credit risk. Comprehensive income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under U.S. GAAP are recorded as an element of stockholders’ equity but are excluded from net income (loss). Other comprehensive income (loss) consists of foreign currency translation adjustment from the Company not using the U.S. dollar as its functional currency. Leases The Company adopted ASU 2016-02, Leases Foreign currency translation The Company’s financial information is presented in U.S. dollars (“USD”). The functional currency of the Company is the Chinese Yuan Renminbi (“RMB”), the currency of PRC. Any transactions which are denominated in currencies other than RMB are translated into RMB at the exchange rate quoted by the People’s Bank of China prevailing at the dates of the transactions, and exchange gains and losses are included in the statements of operations as foreign currency transaction gain or loss. The consolidated financial statements of the Company have been translated into U.S. dollars in accordance with ASC 830, Foreign Currency Matters. The financial information is first prepared in RMB and then translated into U.S. dollars at period-end exchange rates for assets and liabilities and average exchange rates for revenue and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Cash flows from the Company’s operations are calculated based upon the local currencies using the average translation rate. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. The exchange rates in effect as of September 30, 2023 and 2022 were RMB1 for $0.1371 and $0.1406, respectively. The average exchange rates for the years ended September 30, 2023, 2022 and 2021 were RMB1 for $0.1418, $0.1521 and $0.1540, respectively. Shipping and handling expenses All shipping and handling costs are expensed as incurred and included in selling expenses. Total shipping and handling expenses were $60,204, $244,490 and $235,956 for the years ended September 30, 2023, 2022 and 2021, respectively. Value added tax The Company is generally subject to the value added tax (“VAT”) for selling merchandise. Before May 1, 2018, the applicable VAT rate was 13% or 17% (depending on the type of goods involved) for products sold in PRC. After May 1, 2018, the Company is subject to a tax rate of 12% or 16%, and after April 1, 2019, the tax rate was further reduced to 9% or 13% based on the new Chinese tax law. Pursuant to approval issued by the State Administration of Taxation, Farmmi Eco Agri’s and Nongyuan Network’s major operation can be classified as agriculture products and its revenue is exempt from VAT, Nongyuan Network was exempted from VAT up to January 2023. The amount of VAT liability is determined by applying the applicable tax rate to the invoiced amount of goods sold (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). Under the commercial practice of PRC, the Company pays VAT based on tax invoices issued. The tax invoices may be issued subsequent to the date on which revenue is recognized, and there may be a considerable delay between the date on which the revenue is recognized and the date on which the tax invoice is issued. In the event the PRC tax authorities dispute the date on which revenue is recognized for tax purposes, the PRC tax authorities have the right to assess a penalty based on the amount of taxes which is determined to be late or deficient, with any penalty being expensed in the period when a determination is made by the tax authorities that a penalty is due. During the reporting periods, the Company had no dispute with PRC tax authorities and there was no tax penalty incurred. Income taxes The Company is subject to the income tax laws of the PRC, a subsidiary in Canada is subject to income tax laws of Canada and a subsidiary in the United States of America is subject to income tax laws of the United States of America. No taxable income was generated outside the PRC for the year ended September 30, 2021. The Company accounts for income taxes in accordance with ASC 740, Income Taxes. ASC 740 requires an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or not be deductible in the future. ASC 740-10-25 prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. It also provides guidance on the recognition of income tax assets and liabilities, classification accounting for interest and penalties associated with tax positions, years open for tax examination, accounting for income taxes in interim periods and income tax disclosures. There were no material uncertain tax positions as of September 30, 2023 and 2022. As of September 30, 2023, the tax years ended December 31, 2015 through December 31, 2022 for the Company’s subsidiaries remain open for statutory examination by PRC and Canada tax authorities. Statement of Cash Flows In accordance with ASC 230, Statement of Cash Flows, cash flows from the Company’s operations are formulated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. Risks and uncertainties The operations of the Company are primarily located in PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in PRC, in addition to the general state of the PRC economy. The Company’s results may be adversely affected by changes in the political and social conditions in PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. The Company’s sales, purchases and expense transactions are denominated in RM |
Accounts receivable net
Accounts receivable net | 12 Months Ended |
Sep. 30, 2023 | |
Accounts receivable net | |
Accounts receivable, net | Note 3 - Accounts receivable, net Accounts receivable from the Company consisted of the following: As of As of September 30, September 30, 2023 2022 Accounts receivable $ 24,692,164 $ 16,358,493 Less: allowance for doubtful accounts (14,719 ) (7,249 ) Accounts receivable, net $ 24,677,445 $ 16,351,244 Allowance for doubtful accounts of $14,719 and $7,249 was made for certain accounts receivable as of September 30, 2023 and 2022, respectively. The Company’s accounts receivable primarily includes balance due from customers when the Company’s products are sold and delivered to customers. |
Advances to suppliers net
Advances to suppliers net | 12 Months Ended |
Sep. 30, 2023 | |
Advances to suppliers net | |
Advances to suppliers, net | Note 4 - Advances to suppliers, net Advances to suppliers consisted of the following: As of As of September 30, September 30, 2023 2022 Advances to suppliers: Lishui Zhelin Trading Co., Ltd $ 53,405,200 $ 7,289,180 Jingning Liannong Trading Co., Ltd 20,231,750 16,761,798 Qingyuan Nongbang Mushroom Industry Co., Ltd 15,417,317 12,521,949 Zhongjin Boda (Hangzhou) Industrial Co., Ltd 10,964,912 - Ningbo Runcai Supply Chain Management Co., Ltd 10,279,605 - Ningbo Caixiang Trading Co., Ltd. - 4,372,934 Others 6,048,353 7,691,001 Total $ 116,347,137 $ 48,636,862 Less: allowance for doubtful accounts (3,176 ) (3,258 ) Advances to suppliers, net $ 116,343,961 $ 48,633,604 On April 1, 2016, the Company entered into two separate framework supply agreements (“Framework Agreements”) with two co-operatives, Jingning Liannong Trading Co., Ltd (“JLT”) and Qingyuan Nongbang Mushroom Industry Co., Ltd (“QNMI”). These two Framework Agreements were renewed for another three years in April 2019 upon expiration and were further renewed for another three years in June 2021. Jingning County and Qingyuan County where JLT and QNMI are located produce premium Shiitake and Mu Er. In order to enter into the trading of agricultural products in bulk, the Company signed a framework agreement on agricultural products purchase and sales cooperation with Ningbo Caixiang Trading Co., Ltd. on May 25, 2021. Ningbo Caixiang Trading Co., Ltd. is located in Ningbo City, a port city, and is the gathering and distributing place of agriculture products in bulks in the Yangtze River Delta region, with rich resources of agricultural products. The contract with Ningbo Caixiang Trading Co., Ltd. expired in May 2022, and the two parties renewed the agricultural product supply agreement in May 2022, with a validity of 3 years. The agreement agreed that Ningbo Caixiang should provide the Company with agricultural products of no less than RMB200 million yuan (including but not limited to cotton, corn, etc.) and pay part of the payment in advance to lock up the goods. On April 1, 2020, the Company signed a framework cooperation agreement with Lishui Zhelin Trading Co., Ltd. (“Zhelin Trade”), which is valid for 4 years. Zhelin Trade is located in the agricultural product distribution center in Liandu District - Southwest Zhejiang Agricultural Trade City, which has convenient logistics and timely agricultural product information. Therefore, the cooperation agreement stipulates that Zhelin Trade will process and deliver edible mushroom products on behalf of Zhelin Trade, and the Company is required to make advance payment to ensure the timeliness of goods supply and delivery. On August 5, 2023, the Company signed an agricultural product framework agreement with Zhongjin Boda (Hangzhou) Industrial Co., Ltd (“Zhongjin Boda”), mainly for the purchase of agricultural products such as corn, cotton, soybeans, etc. The agreement was signed for a period of 2 years. Zhongjin Boda used to be a large supplier of the company and had sufficient capacity to supply goods. On August 25, 2023, the Company signed an agricultural product framework agreement with Ningbo Runcai Supply Chain Management Co., Ltd (“Ningbo Runcai”), mainly for the purchase of agricultural products such as red dates and corn. The agreement was signed for a period of 2 years. Ningbo Runcai is located in Ningbo, the largest port city in Zhejiang Province, and has abundant sources of goods that can meet the company's procurement needs for supply. The Company has signed agreements with these two suppliers mainly as a reserve supplier of bulk agricultural products. Due to the increase of edible fungus business and preventing untimely supply of goods arising from natural disasters, the Company signed a cooperation agreement with Suizhou Huayu Ecological Agriculture Co., Ltd. on August 1, 2022. Suizhou Huayu is located in Suizhou City, Hubei Province. Suizhou City is the main production area of edible fungi in central China. The cultivation of edible fungi in this area is mainly family farms and cooperatives. Advance payment is required to ensure supply, The timely and stable supply of goods and the quality of goods can be guaranteed by paying the suppliers in advance. Many competitors of the Company and other large buyers go there to source their supplies. Family farms and co-operatives traditionally request advance payments to secure supplies. By making advance payments to these suppliers, the Company is also able to lock in a more favorable price for premium quality than would be available in the open market. Allowance for doubtful accounts of $3,176 and $3,258 was made for certain advances to suppliers as of September 30, 2023 and 2022. The Framework Agreements only provide general guidelines. Actual prices are negotiated and agreed upon in individual purchase orders, and are typically set at market prices based on the quality grade and quantities determined and agreed with the suppliers. Prices may vary based on market demand and crop condition etc. The Company can generally secure the premium quality raw material supplies at prices slightly higher than the typical market prices for average quality raw materials. The quality of supplies must meet standardized specifications of both the mushroom industry and standards set by the Company. The Company advances certain initial payments based on its estimated purchase plan from these suppliers and additional advances based on individual purchase orders placed. The Company pays advances for no other reason than to secure an adequate supply of dried mushrooms to meet its sales demands. The Company’s purchase orders require that the advances shall be refunded by suppliers if they fail to produce any dried mushrooms or fail to deliver supplies to the Company timely. Advances to suppliers are carried at cost and evaluated for recoverability. The realizability evaluation process is similar to that of the lower of cost or net realizable value evaluation process for inventories. The Company periodically evaluates its advances for recoverability by monitoring suppliers’ ability to deliver a sufficient supply of mushrooms as well as current crop and market condition. This includes analyzing historical quantity and quality of production with monitoring of crop information provided by the Company’s field personnel related to weather or disaster or any other reason. If for any reason the Company believes that it will not receive supplies of the contracted volumes, the Company will assess its advances for any likelihood of recoverability and adjust advances on its financial statements at the lower of cost or estimated recoverable amounts. The advances are made primarily to these suppliers, which are co-operatives formed by many family farms, with which the Company has had long-term relationships over the years. If any of these family farms fail to deliver supplies, the Company would expect to receive a refund of the advances through these suppliers. The Company accrues for any allowance for possible loss on advances when there is doubt as to the collectability of the refund. |
Inventories net
Inventories net | 12 Months Ended |
Sep. 30, 2023 | |
Inventories net | |
Inventories, net | Note 5 - Inventories, net Inventories, net, from the Company’s continuing operations consisted of the following: As of As of September 30, September 30, 2023 2022 Raw materials $ 520,216 $ 620,252 Packaging materials 69,420 63,703 Finished goods 3,321,021 81,975 Inventory 3,910,657 765,930 Less: allowance for inventory reserve (8,809 ) (49,652 ) Inventory, net $ 3,901,848 $ 716,278 Allowance for inventory reserve were $8,809 and $49,652 as of September 30, 2023 and 2022, respectively. |
Other receivable
Other receivable | 12 Months Ended |
Sep. 30, 2023 | |
Other receivable | |
Other receivable | Note 6 - Other receivable On November 5, 2021, one of the Company’s subsidiaries singed an Equity Transfer Framework Agreement to invest 15.97% interest in an entity, Shanghai Jiaoda Onlly Co., Ltd., from four third parties for a total consideration of RMB509.6 million (approximately $71.6 million). On November 5, 2021, the Company paid a deposit of RMB50 million ($7.0 million) as a prepayment for the acquisition. However, the Company decided to withdraw from the investment due to the adjustment of its business strategy and a third party is willing to undertake the above-mentioned investment. Upon consummation of the investment by that third party, the above-mentioned deposit will be returned to the Company from the seller and the Company may charge that third party with an interest of 6.5% per annum on that deposit counting from the payment date. The Company received RMB50 million ($7.0 million) in full on October 12, 2022. As of September 30, 2023 and 2022, interest receivable amounted to nil and RMB2.9 million ($0.4 million), respectively. |
Property and equipment net
Property and equipment net | 12 Months Ended |
Sep. 30, 2023 | |
Property and equipment net | |
Property, plant and equipment, net | Note 7 - Property and equipment, net Property and equipment from the Company’s continuing operations, stated at cost less accumulated depreciation, consisted of the following: As of As of September 30, September 30, 2023 2022 Machinery and equipment $ 62,973 $ 64,449 Transportation equipment 48,009 49,241 Office equipment 19,492 20,254 Subtotal 130,474 133,944 Accumulated depreciation (105,942 ) (89,076 ) Total $ 24,532 $ 44,868 Depreciation expense was $19,752, $32,303 and $22,332 for the years ended September 30, 2023, 2022 and 2021, respectively. |
Loans
Loans | 12 Months Ended |
Sep. 30, 2023 | |
Loans | |
Loans | Note 8 - Loans Short-term and long-term loans from the Company consist of the following: As of As of September 30, September 30, 2023 2022 Short-term loans Xiaoshan Rural Commercial Bank $ 1,041,667 $ - China Guangfa Bank Co., Ltd. 685,307 - Bank of Beijing 411,184 - Industrial Bank Co., Ltd 274,123 - Total short-term loan $ 2,412,281 $ - Long-term loans - current portion Bank of Beijing $ - $ 1,124,622 WeBank Co., Ltd 285,934 - Jiangsu Suning Bank 186,472 140,578 Huaneng Guicheng Trust Co., Ltd. 100,054 80,832 China Resources Shenzhen Investment Trust Co., Ltd. 82,237 159,321 Zhejiang Mintai Commercial Bank 21,587 - Total long-term loans - current portion $ 676,284 $ 1,505,353 Long-term loans - non-current portion Bank of Beijing 1,096,491 - Xiaoshan Rural Commercial Bank 328,947 - WeBank Co., Ltd 127,874 - Huaneng Guicheng Trust Co., Ltd. 48,999 57,988 Jiangsu Suning Bank 32,261 140,578 Zhejiang Mintai Commercial Bank 17,989 - China Resources Shenzhen Investment Trust Co., Ltd. - 93,719 Total long-term loans - non-current portion $ 1,652,561 $ 292,285 Total short-term and long-term loans $ 4,741,126 $ 1,797,638 The following table summarizing the loan commencement date, loan maturity date, loan amount in RMB and its equivalent to the United States dollar, and the effective annual interest rate of each secured and unsecured short-term and long-term loan: Loan Loan Loan Loan Effective commencement maturity amount amount interest As of September 30, 2023 date date in RMB in USD rate Note Secured short-term loans Xiaoshan Rural Commercial Bank June 19, 2023 June 18, 2024 7,600,000 $ 1,041,667 3.20 % 1 China Guangfa Bank Co., Ltd. November 1, 2022 October 31, 2023 5,000,000 685,307 3.95 % 2 Industrial Bank Co., Ltd January 16, 2023 January 14, 2024 2,000,000 274,123 5.13 % 3 Total secured short-term loans 14,600,000 $ 2,001,097 Unsecured short-term loan Bank of Beijing January 17, 2023 January 17, 2024 3,000,000 411,184 4.65 % Total unsecured short-term loans 3,000,000 $ 411,184 Total short-term loans 17,600,000 $ 2,412,281 Secured long-term loans Long-term loans, current portion WeBank Co., Ltd April 12, 2023 April 1, 2025 885,000 $ 121,300 12.56 % 4 WeBank Co., Ltd May 15, 2023 May 15, 2025 500,000 68,531 9.00 % 4 WeBank Co., Ltd August 14, 2022 August 1, 2024 479,167 65,675 14.40 % 4 WeBank Co., Ltd May 15, 2023 May 1, 2025 90,000 12,336 13.86 % 4 WeBank Co., Ltd August 1, 2023 July 28, 2025 67,500 9,252 14.11 % 4 WeBank Co., Ltd August 1, 2023 August 1, 2025 64,500 8,840 12.78 % 4 Jiangsu Suning Bank September 2, 2022 September 1, 2024 1,000,000 137,061 12.0 % 5 Jiangsu Suning Bank May 15, 2023 May 1, 2025 210,000 28,783 13.86 % 6 Jiangsu Suning Bank August 1, 2023 August 1, 2025 150,500 20,628 12.78 % 6 Huaneng Guicheng Trust Co., Ltd. December 30, 2022 December 28, 2024 430,000 58,936 12.91 % 7 Huaneng Guicheng Trust Co., Ltd. August 1, 2023 August 1, 2025 300,000 41,118 16.2 % 7 China Resources Shenzhen Investment Trust Co., Ltd. July 1, 2022 July 1, 2024 600,000 82,237 14.4 % 8 Zhejiang Mintai Commercial Bank August 1, 2023 July 28, 2025 157,500 21,587 14.11 % 9 Total long-term loans, current portion 4,934,167 $ 676,284 Long-term loans, non-current portion Bank of Beijing April 3, 2023 April 2, 2026 8,000,000 1,096,491 4.75 % 10 Xiaoshan Rural Commercial Bank June 19, 2023 June 18, 2026 2,400,000 328,947 4.50 % 1 WeBank Co., Ltd April 12, 2023 April 1, 2025 442,500 60,651 12.56 % 4 WeBank Co., Ltd May 15, 2023 May 15, 2025 333,333 45,687 9.00 % 4 WeBank Co., Ltd August 1, 2023 August 1, 2025 56,250 7,710 13.86 % 4 WeBank Co., Ltd August 1, 2023 July 28, 2025 52,500 7,196 14.11 % 4 WeBank Co., Ltd August 1, 2023 August 1, 2025 48,375 6,630 12.78 % 4 Huaneng Guicheng Trust Co., Ltd. August 1, 2023 August 1, 2025 250,000 34,265 16.20 % 7 Huaneng Guicheng Trust Co., Ltd. December 30, 2022 December 28, 2024 107,500 14,734 12.91 % 7 Jiangsu Suning Bank May 15, 2023 May 1, 2025 122,500 16,790 13.86 % 6 Jiangsu Suning Bank August 1, 2023 August 1, 2025 112,875 15,471 12.78 % 6 Zhejiang Mintai Commercial Bank July 1, 2022 July 1, 2024 131,250 17,989 14.4 % 6 Total long-term loans, non-current portion 12,057,083 $ 1,652,561 Total short-term and long-term loans 34,591,250 $ 4,741,126 Loan Loan Loan Loan Effective commencement maturity amount amount interest For the year ended September 30, 2022 date date in RMB in USD rate Note Secured long-term bank loans Long-term loans, current portion Bank of Beijing April 6, 2022 April 5, 2026 8,000,000 $ 1,124,622 4.8 % 2 Jiangsu Suning Bank September 2, 2022 September 1, 2024 1,000,000 140,578 12.0 % 5 China Resources Shenzhen Investment Trust Co., Ltd. July 1, 2022 July 1, 2024 800,000 112,462 14.4 % 6 Huaneng Guicheng Trust Co., Ltd. August 14, 2022 August 1, 2024 575,000 80,832 14.4 % 7 China Resources Shenzhen Investment Trust Co., Ltd. April 30, 2021 April 28, 2023 333,334 46,859 10.8 % 6 Total long-term loans, current portion 10,708,334 $ 1,505,353 Long-term loans, non-current portion Jiangsu Suning Bank September 2, 2022 September 1, 2024 1,000,000 140,578 12.0 % 6 China Resources Shenzhen Investment Trust Co., Ltd. July 1, 2022 July 1, 2024 666,667 93,719 14.4 % 6 Huaneng Guicheng Trust Co., Ltd. August 14, 2022 August 1, 2024 412,500 57,988 14.4 % 7 Total long-term loans, non-current portion 2,079,167 $ 292,285 Total short-term and long-term loans 12,787,501 $ 1,797,638 ___________ (1) The loan is secured by real property owned by Mr. Dehong Zhang, a legal representative of Farmmi Food. (2) The loan is guaranteed by Ms Xinyang Wang, the 100% shareholder of Nongyuan Network, Ms Aihong Wang, sister to Mr Zhengyu Wang, Chairman of the Company, and Mr. Dehong Zhang, a legal representative of Farmmi Food. (3) The loan is guaranteed by Mr. Dehong Zhang, a legal representative of Farmmi Food for up to RMB2 million ($0.3 million). (4) The loan is guaranteed by Mr. Dehong Zhang, a legal representative of Farmmi Food for up to RMB5 million ($0.7 million). (5) The loan is guaranteed by the CEO of the Company, Ms Yefang Zhang on the outstanding principal and interest. (6) The loan is guaranteed by Mr. Dehong Zhang, a legal representative of Farmmi Food on the outstanding principal and interest. (7) These loans are guaranteed by a related party, Mr. Dehong Zhang, a legal representative of Farmmi Agricultural for up to RMB3 million ($0.4 million) of the outstanding principal and interest. (8) These loans are guaranteed by a related party, Mr. Dehong Zhang, a legal representative of Farmmi Agricultural for up to RMB3 million ($0.4 million) of the outstanding principal and interest. (9) The loan is guaranteed by Mr. Dehong Zhang, a legal representative of Farmmi Food for up to RMB5 million ($0.7 million). (10) The loan is guaranteed by Ms Xinyang Wang, the 100% shareholder of Nongyuan Network, for up to RMB16 million ($2.2 million) of the outstanding principal and interest and is collateralized by a property owned by Ms Xinyang Wang which has a valuation of RMB19.2 million ($2.6 million). Interest expenses amounted to $0.2 million, $0.1 million and $53,009 for the years ended September 30, 2023, 2022 and 2021, respectively. |
Convertible promissory note and
Convertible promissory note and derivative liability | 12 Months Ended |
Sep. 30, 2023 | |
Convertible promissory note and derivative liability | |
Convertible promissory note and derivative liability | Note 9 - Convertible promissory note and derivative liability On September 26, 2022, the Company completed a $6.42 million convertible promissory note with an institutional investor (the “Investor”). Pursuant to the Securities Purchase Agreement, dated as of September 26, 2022, the Company issued and sold to the Investor a convertible promissory note of $6.42 million due on September 25, 2023, convertible into ordinary shares, $0.025 par value per share, at a discount of $0.42 million. Upon issuance, this convertible promissory note converts at the 80% of the market price. The Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $3.87 million and a debt discount of $3.87 million upon issuance of this convertible promissory note. The debt discount was amortized over the term of the convertible promissory note and, for the years ended September 30, 2023 and 2022, the Company recorded amortization of debt issuance cost of $1.7 million and $48,160 in other expenses, respectively. Subsequent to September 30, 2022, the Company received comments from the Staff of NASDAQ Listing Qualifications that the Note did not provide for a floor price for the possible future conversions and that a future priced security without a floor price has public interest implications pursuant to NASDAQ Listing Rule 5101 (the “Rule”); management of the Company determined that the floor price under the Note is assumed to be $0.12, which is calculated based on an 80% discount of the Nasdaq Minimum Price of $0.5785 on the date of the Company’s entry into the Agreement with the Investor; and the Company believes it to be in the best interests of the Company and the shareholders that the Company shall repay the Note in cash in the event conversions would result in the aggregate effective conversion price falling below $0.12. After the effect of the reverse stock split adjustment, the floor price of the Note is assumed to be $0.96. As of September 30, 2023 and 2022, the fair value of this derivative liability was nil and $3.45 million. For the years ended September 30, 2023 and 2022, the change in fair value of derivative liability of $0.9 million and $0.42 million was recorded in other income, respectively. For the year ended September 30, 2023, 474,137 ordinary shares were issued for the redemption of $1.1 million convertible notes. As of September 30, 2023 and 2022, the balance of the convertible promissory note, net of amortization, amounted to $5.8 million and $2.2 million, respectively. The following table provides quantitative information regarding Level 3 fair value measurements inputs of the derivative liability at the measurement date: As of As of September 30, September 30, 2023 2022 Exercise price - $ 0.45 Ordinary share price - $ 0.56 Term (in years) - 1 Volatility - 88.39 % Risk-free interest rate - 4.05 % Dividend yield - - |
Shareholders Equity
Shareholders Equity | 12 Months Ended |
Sep. 30, 2023 | |
Shareholders Equity | |
Shareholders' Equity | Note 10 - Shareholders’ Equity Ordinary shares On September 12, 2020, the authorized share capital of the Company was increased from 20,000,000 ordinary shares of $0.001 par value each to 200,000,000 ordinary shares of $0.001 par value each. On July 22, 2021, the authorized share capital of the Company was increased from 200,000,000 ordinary shares of $0.001 par value each to 600,000,000 ordinary shares of $0.001 par value each. On May 31, 2022, the Company consolidated its ordinary share at a ratio of one-for-twenty-five. On September 25, 2023, the Company consolidated its ordinary shares at a ratio of one-for-eight and, immediately following the share consolidation, the authorized share capital of the Company be increased from $2.5 million divided into 12.5 million ordinary shares of $0.20 par value each to $100 million divided into 500 million ordinary shares of $0.20 par value each, by creation of an additional 487.5 million ordinary shares of $0.20 par value each. During the year ended September 30, 2022, the Company issued 30,000,000 ordinary shares at $0.20 per ordinary share for a gross proceed of $6,000,000 in February 2022. After share consolidation in May 2022 and September 2023, the issuance of 30 million ordinary shares was first retrospectively adjusted to 1.2 million ordinary shares and then 150,000 ordinary shares. During the year ended September 30, 2023, the Company issued 21,052,632 ordinary shares at $0.38 per ordinary share for a gross proceed of $8,000,000 in July 2023. After share consolidation in September 2023, the issuance of 21,052,632 ordinary shares was retrospectively adjusted to 2,631,579 ordinary shares. During the year ended September 30, 2023, 474,137 ordinary shares were issued for the redemption of $1.1 million convertible notes. Share incentive plan The Company established a pool for shares and share options for employees. This pool contains shares and options to purchase 1,168,000 ordinary shares, equal to 10% of the number of ordinary shares outstanding at the conclusion of the initial public offering. Subject to approval by the Compensation Committee of our Board of Directors, the Company may grant shares or options in any percentage determined for a particular grant. Any options granted will vest at a rate of 20% per year for five years and have a per share exercise price equal to the fair market value of one of ordinary shares on the date of grant. For the year ended September 30, 2021, 596,600 ordinary shares were issued to four employees and $805,410 was accounted as share-based compensation expense in general and administration expenses. As of September 30, 2022, the remaining ordinary shares available to be issued are 571,400 and, after the share consolidation on May 31, 2022, the remaining ordinary shares available to be issued are 22,856. As of September 30, 2023, after share consolidation on September 25, 2023, the remaining ordinary shares available to be issued are 2,857. Statutory reserve The Company is required to make appropriations to reserve funds, comprising the statutory surplus reserve and discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“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 entities’ registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. As of September 30, 2023 and 2022, the balance of the required statutory reserves was $0.7 million and $1.2 million, respectively. |
Taxes
Taxes | 12 Months Ended |
Sep. 30, 2023 | |
Taxes | |
Taxes | Note 11 - Taxes Corporation income tax (“CIT”) The Company is subject to income taxes on an entity basis on income derived from the location in which each entity is domiciled. FAMI is incorporated in the Cayman Islands as an offshore holding company and is not subject to tax on income or capital gain under the laws of the Cayman Islands. Farmmi International is incorporated in Hong Kong as a holding company with no activities. Under the Hong Kong tax laws, an entity is not subject to income tax if no revenue is generated in Hong Kong. In China the Corporate Income Tax Law generally applies an income tax rate of 25% to all enterprises. Most of the China subsidiaries are subject to corporate income tax at a statutory rate of 25% on net income reported after certain tax adjustments. Certain subsidiaries were identified as small-scaled minimal profit enterprises. Once an enterprise meets certain requirements and is identified as a small-scale minimal profit enterprise, the part of its taxable income not more than RMB1 million is subject to a reduced rate of 5% and the part between RMB1 million and 3 million is subject to a reduced rate of 10%. Under the Enterprise Income Tax (“EIT”) Law of PRC, domestic enterprises and foreign investment enterprises are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on a case-by-case basis. EIT is typically governed by the local tax authority in China. Each local tax authority at times may grant special tax treatment to local enterprises as a way to encourage specific agricultural industry and stimulate local economy. Farmmi Eco Agri is engaged in agricultural industry and their income are tax exempted. Net income of $3.9 million, $2.8 million and $4.02 million was exempt from income tax for the years ended September 30, 2023, 2022 and 2021, respectively. The estimated tax savings as the result of the tax break for the years ended September 30, 2023, 2022 and 2021 amounted to $1.0 million, $0.7 million and $1.0 million, respectively. After adjusted for share consolidation, per share effect of the tax exemption were $0.27, $0.24 and $1.95 for the years ended September 30, 2023, 2022 and 2021, respectively. The following table reconciles PRC statutory rates to the Company’s effective tax rates for the years ended September 30, 2023, 2022 and 2021: For the Years Ended September 30, 2023 2022 2021 Statutory PRC income tax rate 25.0 % 25.0 % 25.0 % Effect of income tax exemption (a) (40.9 %) (50.8 %) (41.0 %) Favorable tax rate impact (a) 13.3 % (14.8 %) (0.3 %) Permanent difference - 0.1 % (8.2 %) Changes of deferred tax assets valuation allowances (5.8 %) 7.2 % 2.0 % Non-PRC entities not subject PRC income tax 19.4 % 27.7 % 23.6 % Total 11.0 % (5.6 %) 1.1 % _______ (a) Income tax exemption refers to entity engaged in agricultural industry and its income is tax exempted. Favorable refer to entities are identified as a small-scale minimal profit enterprise, the part of its taxable income not more than RMB1 million is subject to a reduced rate of 5% and the part between RMB1 million and 3 million is subject to a reduced rate of 10%. Note 11 - Taxes (continued) Corporation income tax (“CIT”) (Continued) The provision for income tax from the Company consists of the following: For the Years Ended September 30, 2023 2022 2021 Current income tax provision $ 148,893 $ 58,266 $ 25,571 Deferred income tax provision 164,600 (176,633 ) - Total $ 313,493 ($118,367) $ 25,571 Deferred tax liabilities and assets attributable to different tax jurisdictions are not offset. Components of deferred tax assets and liabilities were as follows: As of As of September 30, September 30, 2023 2022 Net operating loss (“NOL”) carry forward $ 284,283 $ 168,126 Allowance for inventory 2,202 12,413 Allowance for doubtful accounts 4,474 836 Valuation allowance (290,959 ) (18,168 ) Total - $ 163,207 The deferred tax expense (benefit) is the change of deferred tax assets and deferred tax liabilities resulting from the temporary difference between tax basis and U.S. GAAP. Certain subsidiaries had a cumulative net operating loss of approximately $0.7 million as of September 30, 2023, which may be available to reduce future taxable income. Deferred tax assets were primarily the result of these net operating losses. As of each reporting date, management considers evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. On the basis of this evaluation, a valuation allowance of $181,375 was recorded against the gross deferred tax asset balance at September 30, 2023. The amount of the deferred tax asset is considered unrealizable because it is more likely than not that certain subsidiaries will not generate sufficient future taxable income to utilize the net operating loss. |
Concentration of major customer
Concentration of major customers and suppliers | 12 Months Ended |
Sep. 30, 2023 | |
Concentration of major customers and suppliers | |
Concentration of major customers and suppliers | Note 12 - Concentration of major customers and suppliers For the year ended September 30, 2023, two major customers accounted for approximately 41% and 12% of the Company’s total sales, respectively. For the year ended September 30, 2022, two major customers accounted for approximately 31% and 16% of the Company’s total sales, respectively. For the year ended September 30, 2021, two major customers accounted for approximately 64% and 14% of the Company’s total sales, respectively. Any decrease in sales to this major customer may negatively impact the Company’s operations and cash flows if the Company fails to increase its sales to other customers. As of September 30, 2023, two major customers accounted for approximately 87% and 12% of the Company’s accounts receivable balance, respectively. As of September 30, 2022, two major customers accounted for approximately 65% and 34% of the Company’s accounts receivable balance, respectively. For the year ended September 30, 2023, one major suppliers accounted for approximately 14% of the total purchases. For the year ended September 30, 2022, two major suppliers accounted for approximately 23% and 21% of the total purchases, respectively. For the year ended September 30, 2021, four major suppliers accounted for approximately 37%, 20%, 18% and 16% of the total purchases, respectively. As of September 30, 2023, three major suppliers accounted for approximately 46%, 18% and 13% of the Company’s advances to suppliers’ balance. As of September 30, 2022, four major suppliers accounted for approximately 35%, 26%, 15% and 15% of the Company’s advances to suppliers’ balance. |
Leases
Leases | 12 Months Ended |
Sep. 30, 2023 | |
Leases | |
Leases | Note 13 - Leases The Company rent its factories in Lishui City Zhejiang Province from a related party, Zhejiang Tantech Bamboo Technology Co., Ltd., for processing dried edible fungi and a floor in an office building in Hangzhou from third parties. As of September 30, 2023 and 2022, the remaining average lease term was 7.1 years and 8.2 years, respectively. The Company’s lease agreements do not provide a readily determinable implicit rate nor is it available to the Company from its lessors. Instead, the Company estimates its incremental borrowing rate based on actual incremental borrowing interest rates from financial institutions in order to discount lease payments to present value. The weighted average discount rate of the Company’s operating leases was 10.2% per annum and 10.0% per annum, as of September 30, 2023 and 2022, respectively. Supplemental balance sheet information related to operating leases from the Company’s continuing operations was as follows: As of As of September 30, September 30, 2023 2022 Right-of-use assets under operating leases $ 516,459 $ 534,351 Operating lease liabilities, current 69,062 46,543 Operating lease liabilities, non-current 458,617 517,156 Total operating lease liabilities $ 527,679 $ 563,699 For the years ended September 30, 2024 $ 119,232 2025 98,975 2026 98,975 2027 98,975 2028 88,434 Thereafter 242,716 Total Future minimum lease payments 747,307 Less: Imputed interest (219,628 ) Total $ 527,679 |
Segment reporting
Segment reporting | 12 Months Ended |
Sep. 30, 2023 | |
Segment reporting | |
Segment reporting | Note 14 - Segment reporting ASC 280, Segment Reporting The Company uses the “management approach” in determining reportable operating 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 Company currently has three main products from which revenue is earned and expenses are incurred: Shiitake Mushroom, Mu Er Mushroom and other edible fungi and other agricultural products. The operations of these product categories have similar economic characteristics. In particular, the Company uses the same or similar production processes; sells to the same or similar type of customers and uses the same or similar methods to distribute these products. The resources required by these products share high similarity. Switching cost between different products is minimal. Production is primarily determined by sales orders received and market trend. Therefore, management, including the chief operating decision maker, primarily relies on the revenue data of different products in allocating resources and assessing performance. Based on management’s assessment, the Company has determined that it has only one operating segment and therefore one reportable segment as defined by ASC. Since June 2021, the Company’s operations were expanded into bulk agricultural commodity trading, such as cotton and corn bulk trading, The Company obtains control over these commodities as a principal from its suppliers before selling these commodities to its customers. The following table presents revenue by major product categories (from third parties and related party) from the Company’s continuing operations for the years ended September 30, 2023, 2022 and 2021, respectively: For the Years Ended September 30, 2023 2022 2021 Tapioca $ 39,977,734 - - Corn 27,430,969 $ 10,778,197 $ 1,796,006 Shiitake 19,655,465 19,859,533 20,494,362 Mu Er 16,301,157 19,123,152 16,524,723 Cotton 5,547,927 47,950,345 - Cornstarch 1,338,782 - - Other products 112,853 1,502,152 474,860 Total $ 110,364,887 $ 99,213,379 $ 39,289,951 |
Related party transactions
Related party transactions | 12 Months Ended |
Sep. 30, 2023 | |
Related party transactions | |
Related party transactions | Note 15 - Related party transactions The relationship and the nature of related party transactions are summarized as follow: Name of related party Relationship to the Company Nature of transactions Zhejiang Yili Yuncang Technology Group Co., Ltd 10% equity interest owned by the Company Prepayment of electricity and water expenses for office leased to the Company FarmNet Limited Owned 0.8% equity interest of the Company Payment of expenses by the Company. Epakia Canada Inc Legal representative of Epakia Canada Inc is a director of the Company Payment of expenses by the Company. Shanghai Zhongjian Yiting Medical Health Technology Partnership A partnership jointly set up by the Company with another limited partner ("LP"). Payment of expenses by the Company. Zhejiang Tantech Bamboo Technology Co., Ltd Under common control of Mr Zhengyu Wang and Ms Yefang Zhang, CEO of the Company Lease factory building to the Company and charging water and electricity for offices leased to the Company. Forasen Holdings Group Co., Ltd Owned by Mr Zhengyu Wang, the Chairman of Board of Directors of the Company Purchases from the Company Yefang Zhang CEO of the Company Payment of expenses for the Company and provide a guarantee as additional security for a loan. Xinyang Wang Shareholder of Nongyuan Network Provide guarantees and a real property as additional security for certain loans. Dehong Zhang Ms Yefang Zhang's, CEO of the Company, brother Provide guarantees as an additional security for certain loans Ms Aihong Wang Mr Zhengyu Wang's, the Chairman of Board of Directors of the Company, sister. Provide a guarantee as an additional security for a revolving loan Due from related parties consisted of the following: As of As of September 30, September 30, 2023 2022 Zhejiang Yili Yuncang Holding Group Co., Ltd $ 103,417 $ - Zhejiang Yili Yuncang Technology Group Co., Ltd - 29,055 FarmNet 4,100 - Epakia Canada Inc 2,996 - Shanghai Zhongjian Yiting Medical Health Technology Partnership 308 30,928 Dehong Zhang 137 - Total $ 110,958 $ 59,983 Amount due from Zhejiang Yili Yuncang Holding Group Co., Ltd was mainly related to prepayment of electricity and water expenses for offices leased to the Company. Amounts due from FarmNet Limited, Epakia Canada Inc, Shanghai Zhongjian Yiting Medical Health Technology Partnership and Dehong Zhang were mainly related to expenses paid by the Company which can be recoverable from these related parties. Due to related parties from the Company consisted of the following: As of As of September 30, September 30, 2023 2022 Zhejiang Tantech Bamboo Technology Co., Ltd. $ 24,496 $ 948 Yefang Zhang 9,150 - Forasen Holdings Group Co., Ltd 168 - Total $ 33,814 $ 948 Amount due to Zhejiang Tantech Bamboo Technology Co., Ltd. were related to water and electricity expenses for offices leased to the Company. Amount due to Forasen Holdings Group Co., Ltd and Yefang Zhang were related to payment of expenses by related parties for the Company. Amount was due on demand and non-interest bearing. Sales to related parties The Company periodically sells merchandise to its affiliates during the ordinary course of business. For the years ended September 30, 2023, 2022 and 2021, the Company recorded sales to related parties of nil, $1,016 and $1,952, respectively. Operating lease from related parties The following table summarizing operating leases with related parties, Zhejiang Tantech Bamboo Technology Co., Ltd. and Zhejiang Yili Yuncang Holding Group Co., Ltd, detailing lease begin date, lease end date, leasing purpose, leasing areas in square meters, annual rent in RMB and its equivalent in USD. Zhejiang Tantech Bamboo Technology Co., Ltd. Lease No 1 Lease No. 2 Lease No. 3 Total Lease begin date August 1, 2021 July 14, 2021 March 1, 2023 Lease end date July 31, 2031 July 13, 2031 February 29, 2028 Leasing purpose Factory building Factory building Office Annual rent in RMB 168,854 421,431 131,835 722,120 Annual rent in USD $ 23,940 $ 59,750 $ 18,691 $ 102,381 Area (in square meters) 1,180 1,914 479 3,573 Zhejiang Yili Yuncang Holding Group Co., Ltd Lease begin date August 1, 2023 Lease end date July 31, 2025 Leasing purpose Office Annual rent in RMB 9,795 Annual rent in USD $ 1,389 Area (in square meters) 15 For the years ended September 30, 2023, 2022 and 2021, the Company incurred lease expenses of $66,116, $88,847 and $86,556, respectively. Sublease to a related party In August 2020, the Company entered into a sublease agreement with Hangzhou Forasen Technology Co., Ltd to sublease its office space. The lease term is two years with annual rent of RMB 283,258 (equivalent of $41,639). This lease was terminated on February 14, 2022. For the years ended September 30, 2022 and 2021, the Company recorded lease income of $14,262 and $40,026, respectively. Guarantees provided by related parties The Company’s related parties provide guarantees for the Company’s short-term bank loans (see Note 8). The Company’s related parties also pledged their properties as collaterals to safeguard the Company’s short-term bank loans (see Note 8). The Company and Forasen Group signed a Non-Competition Agreement which provides that Forasen Group should not engage in any business that the Company engages in, except purchasing products from us. In addition, Mr. Wang and Ms. Zhang signed a Non-Competition Agreement with the Company and Tantech which provides that Mr. Wang and Ms. Zhang shall not vote in favor or otherwise cause Tantech to engage in the business that the Company conducts. |
Subsequent events
Subsequent events | 12 Months Ended |
Sep. 30, 2023 | |
Subsequent events | |
Subsequent events | Note 16 - Subsequent events On September 26, 2022, Farmmi, Inc., a Cayman Islands company (the “Company”) entered into a securities purchase agreement (the “Purchase Agreement”) with Streeterville Capital, LLC, a Utah limited liability company (the “Investor”), pursuant to which the Company issued to the Investor an unsecured promissory note (the “Note” and together with the Purchase Agreement, the “Agreements”) in the original principal amount of $6,440,000, convertible into ordinary shares of the Company (the “Ordinary Shares”) for $6,000,000 in gross proceeds. The Note bears interest at a rate of 7% per year and have a term of twelve months after the purchase price of the Note is delivered by the Investor to the Company (the “Purchase Price Date”). Under the Agreements, the Investor has the right to redeem the Note six months after the Purchase Price Date, and redemptions may be satisfied in cash, Ordinary Shares or a combination of cash and Ordinary Shares at the Company’s election. On November 13, 2023 (the “Agreement Date”), the Company and the Investor entered an Amendment to Convertible Promissory Note (the “Extension Agreement”), both parties mutually agreed to extend the term of the Note from twelve months to twenty-four months from the Purchase Price Date, or September 28, 2024. As consideration for the term extension and related costs incurred by the Investor, the Company agreed to pay to the Investor an extension fee equal to seven percent (7%) of the outstanding balance of the Note as of the Agreement Date (the “Extension Fee”), which is added to the remaining outstanding balance of the Note. The Company further agreed to repay the Note by a minimum of $250,000 per month beginning December 2023 and also to pay ten percent (10%) of any funds raised through public offerings within five trading days of the closing dates until the remaining outstanding balance of the Note is paid in full. In addition, the Company is required to pay any redemption amount in cash, if on the applicable redemption date, the Redemption Conversion Price (defined in the Note) is below $1.00 per share. Other than the terms amended by the Extension Agreement, other provisions of the Note remain unchanged. On January 12, 2024, the Company and the Investor entered a Forbearance Agreement, the Company entered into a forbearance agreement (the “Agreement”) with the Investor, pursuant to which the Investor agreed to refrain and forbear from bringing any action to enforce any remedies against the Company for failure to deliver the cash amount in accordance to a certain redemption notice delivered to the Company by the Lender on January 20, 2023 (the “Forbearance”). In exchange for the Forbearance, the Company agreed to pay the Lender a forbearance fee equal to 10% of the outstanding balance as of the date of the Agreement. The Forbearance will terminate immediately upon the Company’s failure to comply with certain terms and conditions set forth in the Agreement. Upon termination of the Forbearance, the Investor may seek all recourse available to it under the terms of the Note, the Agreement, any other documents entered into in conjunction therewith, or applicable laws. In addition, except as expressly set forth in the Agreement, the Forbearance does not constitute a waiver of, or an amendment to, any right, power, or remedy of the Investor under the Note or all other documents entered into in conjunction therewith as in effect prior to the date of the Agreement. In January 2024, 200,000 ordinary shares were issued for the redemption of $0.2 million convertible notes. |
Condensed Financial Information
Condensed Financial Information of the Parent Company | 12 Months Ended |
Sep. 30, 2023 | |
Condensed Financial Information of the Parent Company | |
Condensed Financial Information of the Parent Company | Note 17 - Condensed financial information of the parent company Pursuant to the requirements of Rule 12-04(a), 5-04(c) and 4-08(e)(3) of Regulation S-X, the condensed financial information of the parent company 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. The Company performed a test on the restricted net assets of consolidated subsidiaries in accordance with such requirement and concluded that it was applicable to the Company as the restricted net assets of the Company’s PRC subsidiaries exceeded 25% of the consolidated net assets of the Company, therefore, the condensed financial statements for the parent company are included herein. For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the Company’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 financial information of the parent company has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company used the equity method to account for investment in its subsidiaries. Such investment is presented on the condensed balance sheets as “Investment in subsidiaries” and the respective profit or loss as “Equity in earnings of subsidiaries” on the condensed statements of income. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S GAAP have been condensed or omitted. The Company did not pay any dividend for the periods presented. As of September 30, 2023 and 2022, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any. Farmmi, Inc. Parent Company Balance Sheets As of As of September 30, September 30, 2023 2022 Assets Current assets Cash $ 84 $ 4,057,179 Other receivables 103,760 103,858 103,844 4,161,037 Non-current assets Investment in subsidiaries 167,664,201 156,151,565 Total assets $ 167,768,045 $ 160,312,602 Liabilities and Shareholders’ Equity Current liabilities Interest payable 3,377 - Convertible promissory notes 5,788,742 2,178,511 Derivative liability - 3,450,000 Total liabilities 5,792,119 $ 5,628,511 Commitments and contingencies Shareholders’ equity Ordinary share, $0.20 par value, 500 million shares authorized, 6,094,078 and 2,988,835 shares issued and outstanding at September 30, 2023 and 2022, respectively 1,218,816 597,768 Additional paid-in capital 160,571,517 152,162,565 Retained earnings 185,593 1,923,758 Total shareholders’ equity 161,975,926 154,684,091 Total liabilities and shareholders’ equity $ 167,768,045 $ 160,312,602 1. On September 25, 2023, the Company consolidated its ordinary shares at a ratio of one-for-eight and, immediately following the share consolidation, the authorized share capital of the Company be increased from $2.5 million divided into 12.5 million ordinary shares of $0.20 par value each to $100 million divided into 500 million ordinary shares of $0.20 par value each. The issued and outstanding ordinary shares had been retrospectively adjusted from 23,906,985 ordinary shares to 2,988,835 ordinary shares at September 30, 2022. Also, the ordinary share amount and additional paid-in capital had been retrospectively adjusted from $597,675 and $152,162,658 to $597,768 and $152,162,565 as of September 30, 2022, respectively. Farmmi, Inc. Parent Company Statements of Operations For the Years Ended September 30, 2023 2022 2021 Operating expenses: General and administrative expenses ($913,948) ($2,961,849) ($2,031,506) Other expenses Change in fair value of derivative liability 873,767 419,649 - Interest expenses (445,766 ) - - Amortization of debt issuance costs (1,691,609 ) (48,160 ) - Other expenses (432 ) (3,024 ) (5,672 ) Loss from operations (2,177,988 ) (2,593,384 ) (2,037,178 ) Equity in income of subsidiaries and VIE 4,721,801 4,817,363 4,395,592 Comprehensive income attributable to the Company $ 2,543,813 $ 2,223,979 $ 2,358,414 Farmmi, Inc. Parent Company Statements of Cash Flows For the Years Ended September 30, 2023 2022 2021 Cash flows from operating activities Net income $ 2,543,813 $ 2,223,979 $ 2,358,414 Adjustments to reconcile net income to net cash used in operating activities Equity in earnings of subsidiaries (4,721,801 ) (4,817,363 ) (4,395,592 ) Amortization of debt issuance costs 1,691,609 48,160 - Change in fair value of derivative liability (873,767 ) (419,649 ) - Share-based compensation - 2,007,328 1,260,674 Other current assets 98 21,223 (125,081 ) Other current liabilities (50,869 ) 54,246 (40,000 ) Net cash used in operating activities (1,410,917 ) (882,076 ) (941,585 ) Cash flows from investing activities Investing in subsidiaries (10,576,178 ) (7,529,060 ) (122,726,999 ) Net cash used in investing activities (10,576,178 ) (7,529,060 ) (122,726,999 ) Cash flows from financing activities Net proceeds from share issuance 7,930,000 6,000,000 126,029,588 Net proceeds from issuance of convertible promissory notes - 6,000,000 - Proceeds from advances from related parties - - 298,297 Repayment of advances from related parties - (54,600 ) (2,138,508 ) Net cash provided by financing activities 7,930,000 11,945,400 124,189,377 Net (decrease) increase in cash and restricted cash (4,057,095 ) 3,534,264 520,793 Cash, beginning of year 4,057,179 522,915 2,122 Cash, end of year $ 84 $ 4,057,179 $ 522,915 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
Summary of significant accounting policies | |
Basis of Presentation and Principles of Consolidation | The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and have been consistently applied. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The consolidated financial statements of the Company include the financial statements of the Company, its subsidiaries, the VIEs and the subsidiaries of the VIEs. All inter-company transactions and balances between the Company, its subsidiaries, the VIEs and the subsidiaries of the VIEs have been eliminated upon consolidation. Results of subsidiaries, businesses acquired from third parties and the VIEs are consolidated from the date on which control is transferred to the Company. |
Consolidation of Variable Interest Entities | In accordance with accounting standards regarding consolidation of variable interest entities (“VIEs”), VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision-making ability. All VIEs with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. The Company determined that Nongyuan Network is a VIE because the Company is the primary beneficiary of risks and rewards of this VIE. The condensed consolidating table below disaggregated the Consolidated Balance Sheets of the Company into FAMI, the VIE and its subsidiaries, the WFOE that is the primary beneficiary of the VIEs and an aggregation of other entities that are consolidated as of September 30, 2023 and 2022. As of September 30, 2023 Other entities WFOE that is that are the primary VIE and its Consolidated consolidated beneficiary subsidiaries FAMI total Intercompany receivables $ 144,664,527 $ 131,992,092 $ 7,086,579 $ 151,681,406 - Current assets excluding intercompany receivables 138,871,675 353,985 18,841,671 103,844 $ 158,171,175 Current assets $ 283,536,202 $ 132,346,077 $ 25,928,250 $ 151,785,250 $ 158,171,175 Investment in subsidiaries - $ 37,712,692 - - - Non-current assets excluding investment in subsidiaries $ 16,627,615 - $ 1,296 - $ 16,628,911 Non-current assets $ 16,627,615 $ 37,712,692 $ 1,296 - $ 16,628,911 Total assets $ 300,163,817 $ 170,058,769 $ 25,929,546 $ 151,785,250 $ 174,800,086 Intercompany payables $ 290,760,077 $ 124,634,218 $ 19,812,080 $ 218,229 - Current liabilities excluding intercompany payables 634,111 756,017 3,530,735 5,792,119 $ 10,712,982 Current liabilities $ 291,394,188 $ 125,390,235 $ 23,342,815 $ 6,010,348 $ 10,712,982 Non-current liabilities $ 533,315 $ 106,737 1,471,126 - $ 2,111,178 Total liabilities $ 291,927,503 $ 125,496,972 $ 24,813,941 $ 6,010,348 $ 12,824,160 Total shareholders' equity (net assets) $ 8,236,314 $ 44,561,797 $ 1,115,605 $ 145,774,902 $ 161,975,926 As of September 30, 2022 Other entities WFOE that is that are the primary VIE and its Consolidated consolidated beneficiary subsidiaries FAMI total Intercompany receivables $ 163,676,919 $ 114,994,912 - $ 140,445,311 - Current assets excluding intercompany receivables $ 91,926,232 $ 33,986 $ 57,133,125 $ 4,161,037 $ 153,254,380 Current assets $ 255,603,151 $ 115,028,898 $ 57,133,125 $ 144,606,348 $ 153,254,380 Investment in subsidiaries - $ 40,424,517 - - - Non-current assets excluding investment in subsidiaries $ 10,500,217 $ 8,484 $ 19,772 - $ 10,528,473 Non-current assets $ 10,500,217 $ 40,433,001 $ 19,772 - $ 10,528,473 Total assets $ 266,103,368 $ 155,461,899 $ 57,152,897 $ 144,606,348 $ 163,782,853 Intercompany payables $ 255,440,223 $ 109,255,668 $ 54,420,549 $ 702 - Current liabilities excluding intercompany payables $ 590,393 $ 226,814 $ 1,789,357 $ 5,682,757 $ 8,289,321 Current liabilities $ 256,030,616 $ 109,482,482 $ 56,209,906 $ 5,683,459 $ 8,289,321 Non-current liabilities $ 657,734 $ 151,707 - - $ 809,441 Total liabilities $ 256,688,350 $ 109,634,189 $ 56,209,906 $ 5,683,459 $ 9,098,762 Total shareholders' equity (net assets) $ 9,415,018 $ 45,827,710 $ 942,991 $ 138,922,889 $ 154,684,091 The condensed consolidating table below disaggregated the Consolidated Statements of Operations and Comprehensive Income (Loss) of the Company into FAMI, the VIE and its subsidiaries, the WFOE that is the primary beneficiary of the VIEs and an aggregation of other entities that are consolidated for the financial years ended September 30, 2023, 2022 and 2021. For the year ended September 30, 2023 Other entities WFOE that is that are the primary VIE and its Consolidated consolidated beneficiary subsidiaries FAMI total Revenues $ 74,224,063 $ 16,034,543 $ 20,106,281 - $ 110,364,887 Cost of revenues (70,021,350 ) (16,023,779 ) (20,033,003 ) - (106,078,132 ) Gross profit 4,202,713 10,764 73,278 - 4,286,755 Operating expenses (1,028,294 ) (71,676 ) (231,462 ) (913,948 ) (2,245,380 ) Income (loss) from operations 3,174,419 (60,912 ) (158,184 ) (913,948 ) 2,041,375 Other income (expenses) 1,514,162 (68,416 ) 634,225 (1,264,040 ) 815,931 Income (loss) before income taxes 4,688,581 (129,328 ) 476,041 (2,177,988 ) 2,857,306 Provision for income taxes (270,874 ) (8,556 ) (34,063 ) - (313,493 ) Net income (loss) $ 4,417,707 ($137,884) $ 441,978 ($2,177,988) $ 2,543,813 For the year ended September 30, 2022 Other entities WFOE that is that are the primary VIE and its Consolidated consolidated beneficiary subsidiaries FAMI total Revenues $ 64,795,082 $ 9,111,073 $ 25,307,224 - $ 99,213,379 Cost of revenues (60,272,018 ) (9,053,547 ) (24,449,728 ) - (93,775,293 ) Gross profit 4,523,064 57,526 857,496 - 5,438,086 Operating expenses (782,009 ) (50,344 ) (701,516 ) (2,961,849 ) (4,495,718 ) Income (loss) from operations 3,741,055 7,182 155,980 (2,961,849 ) 942,368 Other income (expenses) 560,497 20,510 213,771 368,466 1,163,244 Income (loss) before income taxes 4,301,552 27,692 369,751 (2,593,383 ) 2,105,612 Provision for income taxes 114,801 9,182 (5,616 ) - 118,367 Net income (loss) $ 4,416,353 $ 36,874 $ 364,135 (2,593,383 ) $ 2,223,979 For the financial year ended September 30, 2021 WFOE Other that is the entities primary that are beneficiary VIE and its Consolidated consolidated of the VIE subsidiaries FAMI total Revenues from continuing operations $ 33,068,045 $ 762,771 $ 5,459,135 $ - $ 39,289,951 Cost of revenues from continuing operations (28,847,801 ) (742,933 ) (4,589,936 ) - (34,180,670 ) Gross profit from continuing operations 4,220,244 19,838 869,199 - 5,109,281 Operating expenses 588,892 (8,940 ) (804,851 ) (2,031,506 ) (2,256,405 ) Income (loss) from operations 4,809,136 10,898 64,348 (2,031,506 ) 2,852,876 Other expenses (391,819 ) (19,990 ) (2,033 ) (5,673 ) (419,515 ) Income (loss) before income taxes 4,417,317 (9,092 ) 62,315 (2,037,179 ) 2,433,361 Provision for income taxes (8,085 ) - (17,486 ) - (25,571 ) Net income (loss) from continuing operations $ 4,409,232 $ (9,092 ) $ 44,829 $ (2,037,179 ) $ 2,407,790 The condensed consolidating table below disaggregated the Consolidated Statements of Cash Flows of the Company into FAMI, the VIE and its subsidiaries, the WFOE that is the primary beneficiary of the VIEs and an aggregation of other entities that are consolidated for the financial years ended September 30, 2023, 2022 and 2021. For the year ended September 30, 2023 WFOE Other that is the entities primary VIE that are beneficiary and its Consolidated consolidated of the VIE subsidiaries FAMI total Net cash (used in) provided by operating activities ($17,601,436) ($579,125) ($45,586,506) ($11,987,095) ($75,754,162) Net cash provided by (used in) investing activities (7,121,332 ) - 43,017,525 - 35,896,193 Net cash provided by (used in) financing activities 32,778 539,287 2,515,877 7,930,000 11,017,942 Effect of exchange rate changes on cash 462,420 5,227 (5,386 ) - 462,261 Net (decrease) increase in cash and restricted cash (24,227,570 ) (34,611 ) (58,490 ) (4,057,095 ) (28,377,766 ) Cash, beginning of year 183,030 37,393 61,196 4,057,179 41,167,501 Cash, end of year ($24,044,540) $ 2,782 $ 2,706 $ 84 $ 12,789,735 For the year ended September 30, 2022 WFOE Other that is the entities primary VIE that are beneficiary and its Consolidated consolidated of the VIE subsidiaries FAMI total Net cash (used in) provided by operating activities from continuing operations $ (14,188,275 ) $ (3,189,440 ) $ 46,404,339 $ (8,391,136 ) $ 20,635,488 Net cash provided by (used in) investing activities from continuing operations 1,140,848 2,738,559 (45,870,486 ) - (41,991,079 ) Net cash provided by (used in) financing activities from continuing operations 649,782 373,382 (899,449 ) 11,511,153 11,634,868 Effect of exchange rate changes on cash and restricted cash (8,345,494 ) (5,078 ) (13,108 ) - (8,363,680 ) Net (decrease) increase in cash and restricted cash (20,743,139 ) (82,577 ) (378,704 ) 3,120,017 (18,084,403 ) Cash and restricted cash from continuing operations, beginning of year 183,030 116,447 434,135 522,915 59,251,904 Cash and restricted cash from continuing operations, end of year $ (20,560,109 ) $ 33,870 $ 55,431 $ 4,057,179 $ 41,167,501 For the financial year ended September 30, 2021 WFOE Other that is the entities primary that are beneficiary of VIE and its Consolidated consolidated the VIE subsidiaries FAMI total Net cash provided by (used in) operating activities from continuing operations $ 67,709,967 $ 3,246,067 $ (338,559 ) $ (123,848,583 ) $ (53,231,108 ) Net cash used in investing activities from continuing operations (9,353,935 ) (2,772,430 ) (1,363 ) - (12,127,728 ) Net cash provided by (used in) financing activities from continuing operations 144,197 (616,095 ) (1,232,191 ) 124,369,377 122,665,288 Effect of exchange rate changes on cash and restricted cash (506,653 ) 258,485 94,714 - (153,454 ) Net increase (decrease) in cash and restricted cash 57,993,576 116,027 (1,477,399 ) 520,794 57,152,998 Cash and restricted cash from continuing operations, beginning of year 183,030 420 1,913,335 2,121 2,098,906 Cash and restricted cash from continuing operations, $ 58,176,606 $ 116,447 $ 435,936 $ 522,915 $ 59,251,904 end of year Cash is transferred within the Company through the banking system in PRC. Under the VIE agreements, the Company intends to distribute 95% of VIE’s earnings after eliminating VIE’s accumulated losses and making appropriation of VIE’s after-tax net income into the statutory surplus reserve based on at least 10% of the after-tax net income determined in accordance with generally accepted accounting principles of the PRC. When there are retained earnings available for distribution, the distribution of VIE’s earnings will be through payment of service fees to Farmmi Agricultural, such service fee is subject to 6% value-added sales tax, other taxes of 12% which calculation is based on 6% value-added taxes and Farmmi Agricultural is subject to corporate income tax up to 25% for its net income. Under the VIE agreements, when there is a change of shareholder in VIE, amount owed by VIE to the Company should be first settled. The condensed consolidating table below quantified the transfer between FAMI, its subsidiaries, VIE and its subsidiaries, WFOE that is the primary beneficiary of the VIE and the investors for the years ended September 30, 2023, 2022 and 2021, respectively. These transfers were mainly for the purpose of providing working capital between FAMI, its subsidiaries, VIE and its subsidiaries and WFOE that is the primary beneficiary of the VIE. For the year ended September 30, 2023 Transfer to WFOE that is the Other primary VIE entities beneficiary and its that are Transfer from FAMI of the VIE subsidiaries consolidated Investors FAMI - - - $ 212,652 - WFOE that is the primary beneficiary of the VIE - - $ 505,077 $ 9,054,194 - VIE and its subsidiaries - $ 1,411,434 - $ 12,944 - Other entities that are consolidated - $ 1,893,667 $ 71,277 - - For the year ended September 30, 2022 Transfer to WFOE that is the Other primary VIE entities beneficiary and its that are Transfer from FAMI of the VIE subsidiaries consolidated Investors FAMI $ 1,217,137 - $ 913,005 - WFOE that is the primary beneficiary of the VIE - $ 14,594,586 $ 19,188,742 - VIE and its subsidiaries - $ 6,394,084 $ 15,293,176 - Other entities that are consolidated $ 984,655 $ 26,961,378 $ 14,744,568 - For the year ended September 30, 2021 Transfer to WFOE that is the Other primary VIE entities beneficiary and its that are Transfer from FAMI of the VIE subsidiaries consolidated Investors FAMI $ - $ 45,500 $ 124,670,237 $ - WFOE that is the primary beneficiary of the VIE $ 1,668,758 $ - $ 38,204,550 $ - VIE and its subsidiaries $ - $ - $ 1,601,406 $ - Other entities that are consolidated $ 319,981 $ 24,075,199 $ 5,624,880 $ - |
Use of Estimates | In preparing the consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting year. Significant items subject to such estimates and assumptions include allowance for doubtful accounts and advances to suppliers, the valuation of inventories, the useful lives of property and equipment, the valuation of derivative liabilities of the notes, the recoverability of long-lived assets, valuation of warrants and the valuation of deferred tax assets. |
Cash | Cash includes currency on hand and deposits held by banks that can be added or withdrawn without limitation. All cash balances are in bank accounts in PRC. Cash maintained in banks within the People’s Republic of China of less than RMB0.5 million (equivalent to $68,531) per bank are covered by "deposit insurance regulation" promulgated by the State Council of the People’s Republic of China. |
Short-term deposit | Short-term deposit relates to fixed terms cash deposits with financial institutions with original maturities of more than three months and less than a year. As of September 30, 2023 and 2022, the Company had short-term deposit of nil and $35,144,444 earning interest at 2.05% per annum with one year maturity on October 15, 2022. |
Accounts Receivable, net | Accounts receivable are presented net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s payment history, its current credit-worthiness and current economic trends. Accounts are written off after efforts at collection prove unsuccessful. As of September 30, 2023 and 2022, allowance for doubtful accounts was $14,719 and $7,249, respectively. |
Advances to Suppliers, net | Advances to suppliers represent prepayments made to ensure continuous high-quality supplies and favorable purchase prices for premium quality. These advances are directly related to the purchases of raw materials used to fulfill sales orders. The Company is required from time to time to make cash advances when placing its purchase orders. These advances are settled upon suppliers delivering raw materials to the Company when the transfer of ownership occurs. The Company reviews its advances to suppliers on a periodic basis and makes general and specific allowances when there is doubt as to the ability of a supplier to provide supplies to the Company or refund an advance. As of September 30, 2023 and 2022, allowance for doubtful accounts was $3,176 and $3,258, respectively. |
Inventory, net | The Company values its inventories at the lower of cost, determined on a weighted average basis, or net realizable value. The Company reviews its inventories periodically to determine if any reserves are necessary for potential obsolescence or if the carrying value exceeds net realizable value. The Company recorded inventory reserve of $8,809 and $49,652 as of September 30, 2023 and 2022, respectively. |
Biological assets | Biological assets mainly consist of bamboo forests managed for future bamboo harvest and sales, of which the Company owned 82 forest right certificates with expiry dates ranging from December 30, 2026 to December 9, 2070 and with an area of 9.6 km 2 Depreciation expense was $0.2 million and $0.2 million for the years ended September 30, 2023 and 2022, respectively. |
Property and Equipment, net | Property and equipment are stated at cost less accumulated depreciation. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to its present working condition and location for its intended use. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets. The estimated useful lives for significant property and equipment are as follows: Machinery and equipment 5 - 10 years Transportation equipment 4 years Office equipment 3 - 5 years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. |
Intangible Assets, net | Intangible assets consist primarily of purchased software. Intangible assets are stated at cost less accumulated amortization, which are amortized using the straight-line method with the estimated useful lives of three years. Amortization expenses were $6,805, $31,984 and $46,085 for the years ended September 30, 2023, 2022 and 2021, respectively. |
Impairment of Long-lived Assets | The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. No impairment of long-lived assets was recognized for fiscal years ended September 30, 2023, 2022 and 2021. |
Revenue Recognition | The Company follows ASU 2014-09 Revenue from Contracts with Customers The Company recognizes revenue when it transfers its goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. All of the Company’s contracts have a single performance obligation satisfied at a point in time and the transaction price is stated in the contract, usually as a price per ton. The Company’s contract liabilities primarily include advance from customers. As of September 30, 2023 and 2022, the contract liabilities are $0.4 million and $0.6 million, respectively, and included in other current liabilities on the consolidated balance sheets. For fiscal years ended September 30, 2023, 2022 and 2021, there was no revenue recognized from performance obligations related to prior periods. Refer to Note 14 - Segment reporting for details of revenue segregation. |
Cost of Revenues | Cost of revenues includes cost of raw materials purchased, inbound freight cost, cost of direct labor, depreciation expense and other overhead. Write-down of inventory for lower of cost or net realizable value adjustments is also recorded in cost of revenues. |
Earnings (loss) per share | The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, Earnings per Share The component of basic and diluted EPS were as follows: Year Ended September 30, 2023 2022 2021 Net income available for ordinary shareholders (A) $ 2,543,813 $ 2,223,979 $ 2,356,437 - continuing operations $ 2,543,813 $ 2,223,979 $ 2,407,790 - discontinued operations - - ($51,353) Weighted average outstanding ordinary shares (B) - basic 3,628,923 2,905,984 514,213 - diluted 8,452,875 2,905,984 522,276 Earnings (loss) per ordinary share - basic (A/B) $ 0.70 $ 0.77 $ 4.58 - Continuing operations $ 0.70 $ 0.77 $ 4.68 - Discontinued operations $ 0.00 $ 0.00 ($0.10) Earnings (loss) per ordinary share - diluted (A/B) $ 0.30 $ 0.77 $ 4.51 - Continuing operations $ 0.30 $ 0.77 $ 4.61 - Discontinued operations $ 0.00 $ 0.00 ($0.10) ____________ 1. On September 25, 2023, the Company consolidated its ordinary shares at a ratio of one-for-eight. All shares and associated amounts have been retroactively restated to reflect the reverse stock split. |
Fair Value of Financial Instruments | The FASB ASC Topic 820, Fair Value Measurements The three levels are defined as follows: Level 1 - Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. Level 3 - Inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, restricted cash, accounts receivable, advances to suppliers, other current assets, accounts payable, due to related parties, operating lease liabilities -current, other current liabilities, short-term bank loans and bank acceptance notes payable approximate their recorded values due to their short-term maturities. The fair value of longer term long-term bank loan and operating lease liabilities approximate their recorded values as their stated interest rates approximate the rates currently available. The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2023 and 2022 and indicates the fair value hierarchy of the valuation technique that the Company utilized to determine such fair value. Fair value measured as of September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Short-term investments $ - $ - $ - $ - Biological assets $ - $ - $ 9,187,640 $ 9,187,640 Liabilities: Derivative liability $ - $ - $ - $ - Fair value measured as of September 30, 2022 Level 1 Level 2 Level 3 Total Assets: Short-term investments $ 5,820 $ - $ - $ 5,820 Biological assets $ - $ - $ 9,638,722 $ 9,638,722 Liabilities: Derivative liability $ - $ - $ 3,450,000 $ 3,450,000 |
Debt Issuance Costs and Debt Discounts | The Company may record debt issuance costs and/or debt discounts in connection with raising funds through the issuance of debt. These costs may be paid in the form of cash, or equity (such as warrants). These costs are amortized to interest expense through the maturity of the debt. If a conversion of the underlying debt occurs prior to maturity a proportionate share of the unamortized amounts is immediately expensed. |
Fair value of the embedded derivatives in the convertible promissory notes | The convertible promissory notes consisted of a liability component (“financial liability”) and an embedded derivative conversion feature (“derivative liability”). The net proceeds of these convertible promissory notes were first allocated to the fair value of the derivative liability. Subsequent changes in fair value of the derivative liability were recorded in other income. The Company measures the fair value of the embedded derivative by reference to the fair value on the issuance date and maturity date of the convertible promissory notes and revalues them at each reporting date. In determining the fair value of the embedded derivatives, the Company used the Black-Scholes option pricing model with the following assumptions: average volatility rate; market price at the reporting date; risk-free interest rate; and the remaining life of the embedded derivatives. The inputs used in the Black-Scholes model are taken from observable markets. Changes to assumptions used can affect the amounts recognized in the consolidated financial statements. |
Concentrations of Credit Risk | Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash, accounts receivable and advances to suppliers. As of September 30, 2023 and 2022, $12.8 million and $76.3 million of the Company’s cash is maintained in banks within the People’s Republic of China of which deposits of RMB0.5 million (equivalent to $68,531) per bank are covered by “deposit insurance regulation” promulgated by the State Council of the People’s Republic of China. The Company has not experienced any losses in such accounts. A significant portion of the Company’s sales are credit sales primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas. The Company also makes cash advances to certain suppliers to ensure the stable supply of key raw materials. The Company performs ongoing credit evaluations of its customers and key suppliers to help further reduce credit risk. |
Comprehensive Income (loss) | Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under U.S. GAAP are recorded as an element of stockholders’ equity but are excluded from net income (loss). Other comprehensive income (loss) consists of foreign currency translation adjustment from the Company not using the U.S. dollar as its functional currency. |
Leases | The Company adopted ASU 2016-02, Leases |
Foreign Currency Translation | The Company’s financial information is presented in U.S. dollars (“USD”). The functional currency of the Company is the Chinese Yuan Renminbi (“RMB”), the currency of PRC. Any transactions which are denominated in currencies other than RMB are translated into RMB at the exchange rate quoted by the People’s Bank of China prevailing at the dates of the transactions, and exchange gains and losses are included in the statements of operations as foreign currency transaction gain or loss. The consolidated financial statements of the Company have been translated into U.S. dollars in accordance with ASC 830, Foreign Currency Matters. The financial information is first prepared in RMB and then translated into U.S. dollars at period-end exchange rates for assets and liabilities and average exchange rates for revenue and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Cash flows from the Company’s operations are calculated based upon the local currencies using the average translation rate. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. The exchange rates in effect as of September 30, 2023 and 2022 were RMB1 for $0.1371 and $0.1406, respectively. The average exchange rates for the years ended September 30, 2023, 2022 and 2021 were RMB1 for $0.1418, $0.1521 and $0.1540, respectively. |
Shipping and Handling Expenses | All shipping and handling costs are expensed as incurred and included in selling expenses. Total shipping and handling expenses were $60,204, $244,490 and $235,956 for the years ended September 30, 2023, 2022 and 2021, respectively. |
Value Added Tax | The Company is generally subject to the value added tax (“VAT”) for selling merchandise. Before May 1, 2018, the applicable VAT rate was 13% or 17% (depending on the type of goods involved) for products sold in PRC. After May 1, 2018, the Company is subject to a tax rate of 12% or 16%, and after April 1, 2019, the tax rate was further reduced to 9% or 13% based on the new Chinese tax law. Pursuant to approval issued by the State Administration of Taxation, Farmmi Eco Agri’s and Nongyuan Network’s major operation can be classified as agriculture products and its revenue is exempt from VAT, Nongyuan Network was exempted from VAT up to January 2023. The amount of VAT liability is determined by applying the applicable tax rate to the invoiced amount of goods sold (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). Under the commercial practice of PRC, the Company pays VAT based on tax invoices issued. The tax invoices may be issued subsequent to the date on which revenue is recognized, and there may be a considerable delay between the date on which the revenue is recognized and the date on which the tax invoice is issued. In the event the PRC tax authorities dispute the date on which revenue is recognized for tax purposes, the PRC tax authorities have the right to assess a penalty based on the amount of taxes which is determined to be late or deficient, with any penalty being expensed in the period when a determination is made by the tax authorities that a penalty is due. During the reporting periods, the Company had no dispute with PRC tax authorities and there was no tax penalty incurred. |
Income Taxes | The Company is subject to the income tax laws of the PRC, a subsidiary in Canada is subject to income tax laws of Canada and a subsidiary in the United States of America is subject to income tax laws of the United States of America. No taxable income was generated outside the PRC for the year ended September 30, 2021. The Company accounts for income taxes in accordance with ASC 740, Income Taxes. ASC 740 requires an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or not be deductible in the future. ASC 740-10-25 prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. It also provides guidance on the recognition of income tax assets and liabilities, classification accounting for interest and penalties associated with tax positions, years open for tax examination, accounting for income taxes in interim periods and income tax disclosures. There were no material uncertain tax positions as of September 30, 2023 and 2022. As of September 30, 2023, the tax years ended December 31, 2015 through December 31, 2022 for the Company’s subsidiaries remain open for statutory examination by PRC and Canada tax authorities. |
Statement of Cash Flows | In accordance with ASC 230, Statement of Cash Flows, cash flows from the Company’s operations are formulated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. |
Risks and Uncertainties | The operations of the Company are primarily located in PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in PRC, in addition to the general state of the PRC economy. The Company’s results may be adversely affected by changes in the political and social conditions in PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. The Company’s sales, purchases and expense transactions are denominated in RMB, and a substantial part of the Company’s assets and liabilities are also denominated in RMB. RMB is not freely convertible into foreign currencies under the current law. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China, the central bank of China. Remittances in currencies other than RMB may require certain supporting documentation in order to effect the remittance. The Company’s operating entities in PRC do not carry any business interruption insurance, product liability insurance or any other insurance policy except for a limited property insurance policy. As a result, the Company may incur uninsured losses, increasing the possibility that investors would lose their entire investment in the Company. The Company’s business, financial condition and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics and other catastrophic incidents, which could significantly disrupt the Company’s operations. In December 2019, a novel strain of coronavirus (“COVID-19”) was identified in Wuhan, China. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic-the first pandemic caused by a coronavirus. The outbreak has reached more than 160 countries, resulting in the implementation of significant governmental measures, including lockdowns, closures, quarantines, and travel bans, intended to control the spread of the virus. The Chinese government has ordered quarantines, travel restrictions, and the temporary closure of stores and facilities. Companies are also taking precautions, such as requiring employees to work remotely, imposing travel restrictions and temporarily closing businesses. Because of the shelter-in-place orders and travel restrictions mandated by the Chinese government, the production and sales activities of the Company temporarily suspended during the end of January and February 2020, which adversely impacted the Company’s production and sales during that period. Although the production and sales have resumed at the end of March 2020, if COVID-19 further impacts its production and sales, the Company’s financial condition, results of operations, and cash flows could continue to be adversely affected. Consequently, the COVID-19 outbreak has adversely affected the Company’s business operations and condition and operating results for 2020, including but not limited to material negative impact on its total revenue, slower collection of accounts receivable and accrued allowance for bad debt, slower utilization of advances to suppliers and accrued allowance, and inventory allowance. The COVID-19 impact on the Company’s business operations and operating results for fiscal 2022 appears to be minimal and appears to be temporary. The Company will continue to monitor and modify the operating strategies. |
Recent Accounting Pronouncements | The Company considers the applicability and impact of all ASUs. Management periodically reviews new accounting standards that are issued. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses Codification Improvements to Topic 326, Financial Instruments - Credit Losses Codification Improvements to Topic 326, Financial Instruments - Credit Losses Derivatives and Hedging Financial Instruments Targeted Transition Relief 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 (ASU 2020-06) |
Organization and nature of bu_2
Organization and nature of business (Table) | 12 Months Ended |
Sep. 30, 2023 | |
Organization and nature of business | |
details of the subsidiaries of FAMI | Name of Entity Date of Incorporation Place of Incorporation % of Ownership Principal activities FAMI July 28, 2015 Cayman Parent Holding company Farmmi International August 20, 2015 Hong Kong 100% Holding company Farmmi Enterprise May 23, 2016 Zhejiang, China 100% Holding company Farmmi Technology June 6, 2016 Zhejiang, China 100% Holding company Farmmi Agricultural December 8, 2015 Zhejiang, China 100% Holding company FLS Mushroom March 25, 2011 Zhejiang, China 100% Light processing and distribution of dried mushrooms Farmmi Food December 26, 2017 Zhejiang, China 100% Dehydrating, further processing and distribution of edible fungus Farmmi E-Commerce March 22, 2019 Zhejiang, China 100% Technology development, technical services and technical consultation related to agricultural products Farmmi Biotech April 7, 2021 Zhejiang, China 100% Research and development of mushroom powder and mushroom extract Farmmi Ecology April 25, 2021 Zhejiang, China 100% Holding company Farmmi Supply Chain May 11, 2021 Zhejiang, China 100% Agricultural products supply chain Farmmi Health Development September 17, 2021 Zhejiang, China 100% Health development Farmmi Medical Health September 18, 2021 Zhejiang, China 100% Medical health Farmmi Holdings September 18, 2021 Zhejiang, China 100% Holding company Jiangxi Xiangbo June 18, 2021 Jiangxi, China 100% Holding company Yudu Yada November 10, 2010 Jiangxi, China 100% Forestry development Guoning Zhonghao June 15, 2021 Zhejiang, China 100% Agriculture exporting Farmmi Eco Agri May 27, 2022 Zhejiang, China 100% Agriculture products Farmmi Canada July 13, 2022 Canada 100% Agriculture products Ningbo Farmmi Trade November 14, 2022 Zhejiang, China 100% Agriculture products Yitang Mediservice September 7, 2021 Zhejiang, China 100% Medical services Yiting Meditech September 17, 2021 Zhejiang, China 100% Medical technology Farmmi USA August 24, 2023 California, USA 100% Trading Nongyuan Network July 7, 2016 Zhejiang, China 0 (VIE) Trading |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Summary of significant accounting policies | |
Schedule of carrying amount of this variable interest entities of financials | As of September 30, 2023 Other entities WFOE that is that are the primary VIE and its Consolidated consolidated beneficiary subsidiaries FAMI total Intercompany receivables $ 144,664,527 $ 131,992,092 $ 7,086,579 $ 151,681,406 - Current assets excluding intercompany receivables 138,871,675 353,985 18,841,671 103,844 $ 158,171,175 Current assets $ 283,536,202 $ 132,346,077 $ 25,928,250 $ 151,785,250 $ 158,171,175 Investment in subsidiaries - $ 37,712,692 - - - Non-current assets excluding investment in subsidiaries $ 16,627,615 - $ 1,296 - $ 16,628,911 Non-current assets $ 16,627,615 $ 37,712,692 $ 1,296 - $ 16,628,911 Total assets $ 300,163,817 $ 170,058,769 $ 25,929,546 $ 151,785,250 $ 174,800,086 Intercompany payables $ 290,760,077 $ 124,634,218 $ 19,812,080 $ 218,229 - Current liabilities excluding intercompany payables 634,111 756,017 3,530,735 5,792,119 $ 10,712,982 Current liabilities $ 291,394,188 $ 125,390,235 $ 23,342,815 $ 6,010,348 $ 10,712,982 Non-current liabilities $ 533,315 $ 106,737 1,471,126 - $ 2,111,178 Total liabilities $ 291,927,503 $ 125,496,972 $ 24,813,941 $ 6,010,348 $ 12,824,160 Total shareholders' equity (net assets) $ 8,236,314 $ 44,561,797 $ 1,115,605 $ 145,774,902 $ 161,975,926 As of September 30, 2022 Other entities WFOE that is that are the primary VIE and its Consolidated consolidated beneficiary subsidiaries FAMI total Intercompany receivables $ 163,676,919 $ 114,994,912 - $ 140,445,311 - Current assets excluding intercompany receivables $ 91,926,232 $ 33,986 $ 57,133,125 $ 4,161,037 $ 153,254,380 Current assets $ 255,603,151 $ 115,028,898 $ 57,133,125 $ 144,606,348 $ 153,254,380 Investment in subsidiaries - $ 40,424,517 - - - Non-current assets excluding investment in subsidiaries $ 10,500,217 $ 8,484 $ 19,772 - $ 10,528,473 Non-current assets $ 10,500,217 $ 40,433,001 $ 19,772 - $ 10,528,473 Total assets $ 266,103,368 $ 155,461,899 $ 57,152,897 $ 144,606,348 $ 163,782,853 Intercompany payables $ 255,440,223 $ 109,255,668 $ 54,420,549 $ 702 - Current liabilities excluding intercompany payables $ 590,393 $ 226,814 $ 1,789,357 $ 5,682,757 $ 8,289,321 Current liabilities $ 256,030,616 $ 109,482,482 $ 56,209,906 $ 5,683,459 $ 8,289,321 Non-current liabilities $ 657,734 $ 151,707 - - $ 809,441 Total liabilities $ 256,688,350 $ 109,634,189 $ 56,209,906 $ 5,683,459 $ 9,098,762 Total shareholders' equity (net assets) $ 9,415,018 $ 45,827,710 $ 942,991 $ 138,922,889 $ 154,684,091 For the year ended September 30, 2023 Other entities WFOE that is that are the primary VIE and its Consolidated consolidated beneficiary subsidiaries FAMI total Revenues $ 74,224,063 $ 16,034,543 $ 20,106,281 - $ 110,364,887 Cost of revenues (70,021,350 ) (16,023,779 ) (20,033,003 ) - (106,078,132 ) Gross profit 4,202,713 10,764 73,278 - 4,286,755 Operating expenses (1,028,294 ) (71,676 ) (231,462 ) (913,948 ) (2,245,380 ) Income (loss) from operations 3,174,419 (60,912 ) (158,184 ) (913,948 ) 2,041,375 Other income (expenses) 1,514,162 (68,416 ) 634,225 (1,264,040 ) 815,931 Income (loss) before income taxes 4,688,581 (129,328 ) 476,041 (2,177,988 ) 2,857,306 Provision for income taxes (270,874 ) (8,556 ) (34,063 ) - (313,493 ) Net income (loss) $ 4,417,707 ($137,884) $ 441,978 ($2,177,988) $ 2,543,813 For the year ended September 30, 2022 Other entities WFOE that is that are the primary VIE and its Consolidated consolidated beneficiary subsidiaries FAMI total Revenues $ 64,795,082 $ 9,111,073 $ 25,307,224 - $ 99,213,379 Cost of revenues (60,272,018 ) (9,053,547 ) (24,449,728 ) - (93,775,293 ) Gross profit 4,523,064 57,526 857,496 - 5,438,086 Operating expenses (782,009 ) (50,344 ) (701,516 ) (2,961,849 ) (4,495,718 ) Income (loss) from operations 3,741,055 7,182 155,980 (2,961,849 ) 942,368 Other income (expenses) 560,497 20,510 213,771 368,466 1,163,244 Income (loss) before income taxes 4,301,552 27,692 369,751 (2,593,383 ) 2,105,612 Provision for income taxes 114,801 9,182 (5,616 ) - 118,367 Net income (loss) $ 4,416,353 $ 36,874 $ 364,135 (2,593,383 ) $ 2,223,979 For the financial year ended September 30, 2021 WFOE Other that is the entities primary that are beneficiary VIE and its Consolidated consolidated of the VIE subsidiaries FAMI total Revenues from continuing operations $ 33,068,045 $ 762,771 $ 5,459,135 $ - $ 39,289,951 Cost of revenues from continuing operations (28,847,801 ) (742,933 ) (4,589,936 ) - (34,180,670 ) Gross profit from continuing operations 4,220,244 19,838 869,199 - 5,109,281 Operating expenses 588,892 (8,940 ) (804,851 ) (2,031,506 ) (2,256,405 ) Income (loss) from operations 4,809,136 10,898 64,348 (2,031,506 ) 2,852,876 Other expenses (391,819 ) (19,990 ) (2,033 ) (5,673 ) (419,515 ) Income (loss) before income taxes 4,417,317 (9,092 ) 62,315 (2,037,179 ) 2,433,361 Provision for income taxes (8,085 ) - (17,486 ) - (25,571 ) Net income (loss) from continuing operations $ 4,409,232 $ (9,092 ) $ 44,829 $ (2,037,179 ) $ 2,407,790 For the year ended September 30, 2023 WFOE Other that is the entities primary VIE that are beneficiary and its Consolidated consolidated of the VIE subsidiaries FAMI total Net cash (used in) provided by operating activities ($17,601,436) ($579,125) ($45,586,506) ($11,987,095) ($75,754,162) Net cash provided by (used in) investing activities (7,121,332 ) - 43,017,525 - 35,896,193 Net cash provided by (used in) financing activities 32,778 539,287 2,515,877 7,930,000 11,017,942 Effect of exchange rate changes on cash 462,420 5,227 (5,386 ) - 462,261 Net (decrease) increase in cash and restricted cash (24,227,570 ) (34,611 ) (58,490 ) (4,057,095 ) (28,377,766 ) Cash, beginning of year 183,030 37,393 61,196 4,057,179 41,167,501 Cash, end of year ($24,044,540) $ 2,782 $ 2,706 $ 84 $ 12,789,735 For the year ended September 30, 2022 WFOE Other that is the entities primary VIE that are beneficiary and its Consolidated consolidated of the VIE subsidiaries FAMI total Net cash (used in) provided by operating activities from continuing operations $ (14,188,275 ) $ (3,189,440 ) $ 46,404,339 $ (8,391,136 ) $ 20,635,488 Net cash provided by (used in) investing activities from continuing operations 1,140,848 2,738,559 (45,870,486 ) - (41,991,079 ) Net cash provided by (used in) financing activities from continuing operations 649,782 373,382 (899,449 ) 11,511,153 11,634,868 Effect of exchange rate changes on cash and restricted cash (8,345,494 ) (5,078 ) (13,108 ) - (8,363,680 ) Net (decrease) increase in cash and restricted cash (20,743,139 ) (82,577 ) (378,704 ) 3,120,017 (18,084,403 ) Cash and restricted cash from continuing operations, beginning of year 183,030 116,447 434,135 522,915 59,251,904 Cash and restricted cash from continuing operations, end of year $ (20,560,109 ) $ 33,870 $ 55,431 $ 4,057,179 $ 41,167,501 For the financial year ended September 30, 2021 WFOE Other that is the entities primary that are beneficiary of VIE and its Consolidated consolidated the VIE subsidiaries FAMI total Net cash provided by (used in) operating activities from continuing operations $ 67,709,967 $ 3,246,067 $ (338,559 ) $ (123,848,583 ) $ (53,231,108 ) Net cash used in investing activities from continuing operations (9,353,935 ) (2,772,430 ) (1,363 ) - (12,127,728 ) Net cash provided by (used in) financing activities from continuing operations 144,197 (616,095 ) (1,232,191 ) 124,369,377 122,665,288 Effect of exchange rate changes on cash and restricted cash (506,653 ) 258,485 94,714 - (153,454 ) Net increase (decrease) in cash and restricted cash 57,993,576 116,027 (1,477,399 ) 520,794 57,152,998 Cash and restricted cash from continuing operations, beginning of year 183,030 420 1,913,335 2,121 2,098,906 Cash and restricted cash from continuing operations, $ 58,176,606 $ 116,447 $ 435,936 $ 522,915 $ 59,251,904 end of year For the year ended September 30, 2023 Transfer to WFOE that is the Other primary VIE entities beneficiary and its that are Transfer from FAMI of the VIE subsidiaries consolidated Investors FAMI - - - $ 212,652 - WFOE that is the primary beneficiary of the VIE - - $ 505,077 $ 9,054,194 - VIE and its subsidiaries - $ 1,411,434 - $ 12,944 - Other entities that are consolidated - $ 1,893,667 $ 71,277 - - For the year ended September 30, 2022 Transfer to WFOE that is the Other primary VIE entities beneficiary and its that are Transfer from FAMI of the VIE subsidiaries consolidated Investors FAMI $ 1,217,137 - $ 913,005 - WFOE that is the primary beneficiary of the VIE - $ 14,594,586 $ 19,188,742 - VIE and its subsidiaries - $ 6,394,084 $ 15,293,176 - Other entities that are consolidated $ 984,655 $ 26,961,378 $ 14,744,568 - For the year ended September 30, 2021 Transfer to WFOE that is the Other primary VIE entities beneficiary and its that are Transfer from FAMI of the VIE subsidiaries consolidated Investors FAMI $ - $ 45,500 $ 124,670,237 $ - WFOE that is the primary beneficiary of the VIE $ 1,668,758 $ - $ 38,204,550 $ - VIE and its subsidiaries $ - $ - $ 1,601,406 $ - Other entities that are consolidated $ 319,981 $ 24,075,199 $ 5,624,880 $ - |
Schedule of useful lives of property and equipment, net | Machinery and equipment 5 - 10 years Transportation equipment 4 years Office equipment 3 - 5 years |
Summary of component of basic and diluted EPS | Year Ended September 30, 2023 2022 2021 Net income available for ordinary shareholders (A) $ 2,543,813 $ 2,223,979 $ 2,356,437 - continuing operations $ 2,543,813 $ 2,223,979 $ 2,407,790 - discontinued operations - - ($51,353) Weighted average outstanding ordinary shares (B) - basic 3,628,923 2,905,984 514,213 - diluted 8,452,875 2,905,984 522,276 Earnings (loss) per ordinary share - basic (A/B) $ 0.70 $ 0.77 $ 4.58 - Continuing operations $ 0.70 $ 0.77 $ 4.68 - Discontinued operations $ 0.00 $ 0.00 ($0.10) Earnings (loss) per ordinary share - diluted (A/B) $ 0.30 $ 0.77 $ 4.51 - Continuing operations $ 0.30 $ 0.77 $ 4.61 - Discontinued operations $ 0.00 $ 0.00 ($0.10) |
Summary of Fair value of financial instruments | Fair value measured as of September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Short-term investments $ - $ - $ - $ - Biological assets $ - $ - $ 9,187,640 $ 9,187,640 Liabilities: Derivative liability $ - $ - $ - $ - Fair value measured as of September 30, 2022 Level 1 Level 2 Level 3 Total Assets: Short-term investments $ 5,820 $ - $ - $ 5,820 Biological assets $ - $ - $ 9,638,722 $ 9,638,722 Liabilities: Derivative liability $ - $ - $ 3,450,000 $ 3,450,000 |
Accounts receivable net (Tables
Accounts receivable net (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Accounts receivable net | |
Schedule of accounts receivable | As of As of September 30, September 30, 2023 2022 Accounts receivable $ 24,692,164 $ 16,358,493 Less: allowance for doubtful accounts (14,719 ) (7,249 ) Accounts receivable, net $ 24,677,445 $ 16,351,244 |
Advances to suppliers net (Tabl
Advances to suppliers net (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Advances to suppliers net | |
Schedule of advance to suppliers | As of As of September 30, September 30, 2023 2022 Advances to suppliers: Lishui Zhelin Trading Co., Ltd $ 53,405,200 $ 7,289,180 Jingning Liannong Trading Co., Ltd 20,231,750 16,761,798 Qingyuan Nongbang Mushroom Industry Co., Ltd 15,417,317 12,521,949 Zhongjin Boda (Hangzhou) Industrial Co., Ltd 10,964,912 - Ningbo Runcai Supply Chain Management Co., Ltd 10,279,605 - Ningbo Caixiang Trading Co., Ltd. - 4,372,934 Others 6,048,353 7,691,001 Total $ 116,347,137 $ 48,636,862 Less: allowance for doubtful accounts (3,176 ) (3,258 ) Advances to suppliers, net $ 116,343,961 $ 48,633,604 |
Inventories net (Tables)
Inventories net (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Inventories net | |
Schedule of inventory | As of As of September 30, September 30, 2023 2022 Raw materials $ 520,216 $ 620,252 Packaging materials 69,420 63,703 Finished goods 3,321,021 81,975 Inventory 3,910,657 765,930 Less: allowance for inventory reserve (8,809 ) (49,652 ) Inventory, net $ 3,901,848 $ 716,278 |
Property and equipment net (Tab
Property and equipment net (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Property and equipment net | |
Schedule of property, plant and equipment, stated at cost less accumulated depreciation | As of As of September 30, September 30, 2023 2022 Machinery and equipment $ 62,973 $ 64,449 Transportation equipment 48,009 49,241 Office equipment 19,492 20,254 Subtotal 130,474 133,944 Accumulated depreciation (105,942 ) (89,076 ) Total $ 24,532 $ 44,868 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Loans | |
Schedule of short-term and long-term loans | As of As of September 30, September 30, 2023 2022 Short-term loans Xiaoshan Rural Commercial Bank $ 1,041,667 $ - China Guangfa Bank Co., Ltd. 685,307 - Bank of Beijing 411,184 - Industrial Bank Co., Ltd 274,123 - Total short-term loan $ 2,412,281 $ - Long-term loans - current portion Bank of Beijing $ - $ 1,124,622 WeBank Co., Ltd 285,934 - Jiangsu Suning Bank 186,472 140,578 Huaneng Guicheng Trust Co., Ltd. 100,054 80,832 China Resources Shenzhen Investment Trust Co., Ltd. 82,237 159,321 Zhejiang Mintai Commercial Bank 21,587 - Total long-term loans - current portion $ 676,284 $ 1,505,353 Long-term loans - non-current portion Bank of Beijing 1,096,491 - Xiaoshan Rural Commercial Bank 328,947 - WeBank Co., Ltd 127,874 - Huaneng Guicheng Trust Co., Ltd. 48,999 57,988 Jiangsu Suning Bank 32,261 140,578 Zhejiang Mintai Commercial Bank 17,989 - China Resources Shenzhen Investment Trust Co., Ltd. - 93,719 Total long-term loans - non-current portion $ 1,652,561 $ 292,285 Total short-term and long-term loans $ 4,741,126 $ 1,797,638 Loan Loan Loan Loan Effective commencement maturity amount amount interest As of September 30, 2023 date date in RMB in USD rate Note Secured short-term loans Xiaoshan Rural Commercial Bank June 19, 2023 June 18, 2024 7,600,000 $ 1,041,667 3.20 % 1 China Guangfa Bank Co., Ltd. November 1, 2022 October 31, 2023 5,000,000 685,307 3.95 % 2 Industrial Bank Co., Ltd January 16, 2023 January 14, 2024 2,000,000 274,123 5.13 % 3 Total secured short-term loans 14,600,000 $ 2,001,097 Unsecured short-term loan Bank of Beijing January 17, 2023 January 17, 2024 3,000,000 411,184 4.65 % Total unsecured short-term loans 3,000,000 $ 411,184 Total short-term loans 17,600,000 $ 2,412,281 Secured long-term loans Long-term loans, current portion WeBank Co., Ltd April 12, 2023 April 1, 2025 885,000 $ 121,300 12.56 % 4 WeBank Co., Ltd May 15, 2023 May 15, 2025 500,000 68,531 9.00 % 4 WeBank Co., Ltd August 14, 2022 August 1, 2024 479,167 65,675 14.40 % 4 WeBank Co., Ltd May 15, 2023 May 1, 2025 90,000 12,336 13.86 % 4 WeBank Co., Ltd August 1, 2023 July 28, 2025 67,500 9,252 14.11 % 4 WeBank Co., Ltd August 1, 2023 August 1, 2025 64,500 8,840 12.78 % 4 Jiangsu Suning Bank September 2, 2022 September 1, 2024 1,000,000 137,061 12.0 % 5 Jiangsu Suning Bank May 15, 2023 May 1, 2025 210,000 28,783 13.86 % 6 Jiangsu Suning Bank August 1, 2023 August 1, 2025 150,500 20,628 12.78 % 6 Huaneng Guicheng Trust Co., Ltd. December 30, 2022 December 28, 2024 430,000 58,936 12.91 % 7 Huaneng Guicheng Trust Co., Ltd. August 1, 2023 August 1, 2025 300,000 41,118 16.2 % 7 China Resources Shenzhen Investment Trust Co., Ltd. July 1, 2022 July 1, 2024 600,000 82,237 14.4 % 8 Zhejiang Mintai Commercial Bank August 1, 2023 July 28, 2025 157,500 21,587 14.11 % 9 Total long-term loans, current portion 4,934,167 $ 676,284 Long-term loans, non-current portion Bank of Beijing April 3, 2023 April 2, 2026 8,000,000 1,096,491 4.75 % 10 Xiaoshan Rural Commercial Bank June 19, 2023 June 18, 2026 2,400,000 328,947 4.50 % 1 WeBank Co., Ltd April 12, 2023 April 1, 2025 442,500 60,651 12.56 % 4 WeBank Co., Ltd May 15, 2023 May 15, 2025 333,333 45,687 9.00 % 4 WeBank Co., Ltd August 1, 2023 August 1, 2025 56,250 7,710 13.86 % 4 WeBank Co., Ltd August 1, 2023 July 28, 2025 52,500 7,196 14.11 % 4 WeBank Co., Ltd August 1, 2023 August 1, 2025 48,375 6,630 12.78 % 4 Huaneng Guicheng Trust Co., Ltd. August 1, 2023 August 1, 2025 250,000 34,265 16.20 % 7 Huaneng Guicheng Trust Co., Ltd. December 30, 2022 December 28, 2024 107,500 14,734 12.91 % 7 Jiangsu Suning Bank May 15, 2023 May 1, 2025 122,500 16,790 13.86 % 6 Jiangsu Suning Bank August 1, 2023 August 1, 2025 112,875 15,471 12.78 % 6 Zhejiang Mintai Commercial Bank July 1, 2022 July 1, 2024 131,250 17,989 14.4 % 6 Total long-term loans, non-current portion 12,057,083 $ 1,652,561 Total short-term and long-term loans 34,591,250 $ 4,741,126 Loan Loan Loan Loan Effective commencement maturity amount amount interest For the year ended September 30, 2022 date date in RMB in USD rate Note Secured long-term bank loans Long-term loans, current portion Bank of Beijing April 6, 2022 April 5, 2026 8,000,000 $ 1,124,622 4.8 % 2 Jiangsu Suning Bank September 2, 2022 September 1, 2024 1,000,000 140,578 12.0 % 5 China Resources Shenzhen Investment Trust Co., Ltd. July 1, 2022 July 1, 2024 800,000 112,462 14.4 % 6 Huaneng Guicheng Trust Co., Ltd. August 14, 2022 August 1, 2024 575,000 80,832 14.4 % 7 China Resources Shenzhen Investment Trust Co., Ltd. April 30, 2021 April 28, 2023 333,334 46,859 10.8 % 6 Total long-term loans, current portion 10,708,334 $ 1,505,353 Long-term loans, non-current portion Jiangsu Suning Bank September 2, 2022 September 1, 2024 1,000,000 140,578 12.0 % 6 China Resources Shenzhen Investment Trust Co., Ltd. July 1, 2022 July 1, 2024 666,667 93,719 14.4 % 6 Huaneng Guicheng Trust Co., Ltd. August 14, 2022 August 1, 2024 412,500 57,988 14.4 % 7 Total long-term loans, non-current portion 2,079,167 $ 292,285 Total short-term and long-term loans 12,787,501 $ 1,797,638 |
Convertible promissory note a_2
Convertible promissory note and derivative liability (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Convertible promissory note and derivative liability | |
Schedule of derivative liability | As of As of September 30, September 30, 2023 2022 Exercise price - $ 0.45 Ordinary share price - $ 0.56 Term (in years) - 1 Volatility - 88.39 % Risk-free interest rate - 4.05 % Dividend yield - - |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Taxes | |
Schedule of effective tax rates | For the Years Ended September 30, 2023 2022 2021 Statutory PRC income tax rate 25.0 % 25.0 % 25.0 % Effect of income tax exemption (a) (40.9 %) (50.8 %) (41.0 %) Favorable tax rate impact (a) 13.3 % (14.8 %) (0.3 %) Permanent difference - 0.1 % (8.2 %) Changes of deferred tax assets valuation allowances (5.8 %) 7.2 % 2.0 % Non-PRC entities not subject PRC income tax 19.4 % 27.7 % 23.6 % Total 11.0 % (5.6 %) 1.1 % |
Schedule of provision for income tax | For the Years Ended September 30, 2023 2022 2021 Current income tax provision $ 148,893 $ 58,266 $ 25,571 Deferred income tax provision 164,600 (176,633 ) - Total $ 313,493 ($118,367) $ 25,571 |
Schedule of components of deferred tax | As of As of September 30, September 30, 2023 2022 Net operating loss (“NOL”) carry forward $ 284,283 $ 168,126 Allowance for inventory 2,202 12,413 Allowance for doubtful accounts 4,474 836 Valuation allowance (290,959 ) (18,168 ) Total - $ 163,207 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Leases | |
Summary of supplemental balance sheet information related to operating leases | As of As of September 30, September 30, 2023 2022 Right-of-use assets under operating leases $ 516,459 $ 534,351 Operating lease liabilities, current 69,062 46,543 Operating lease liabilities, non-current 458,617 517,156 Total operating lease liabilities $ 527,679 $ 563,699 |
Summary of maturities of operating lease liabilities | For the years ended September 30, 2024 $ 119,232 2025 98,975 2026 98,975 2027 98,975 2028 88,434 Thereafter 242,716 Total Future minimum lease payments 747,307 Less: Imputed interest (219,628 ) Total $ 527,679 |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Segment reporting | |
Schedule of revenue by major product categories | For the Years Ended September 30, 2023 2022 2021 Tapioca $ 39,977,734 - - Corn 27,430,969 $ 10,778,197 $ 1,796,006 Shiitake 19,655,465 19,859,533 20,494,362 Mu Er 16,301,157 19,123,152 16,524,723 Cotton 5,547,927 47,950,345 - Cornstarch 1,338,782 - - Other products 112,853 1,502,152 474,860 Total $ 110,364,887 $ 99,213,379 $ 39,289,951 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Related party transactions | |
Schedule of relationship and the nature of related party transactions | Name of related party Relationship to the Company Nature of transactions Zhejiang Yili Yuncang Technology Group Co., Ltd 10% equity interest owned by the Company Prepayment of electricity and water expenses for office leased to the Company FarmNet Limited Owned 0.8% equity interest of the Company Payment of expenses by the Company. Epakia Canada Inc Legal representative of Epakia Canada Inc is a director of the Company Payment of expenses by the Company. Shanghai Zhongjian Yiting Medical Health Technology Partnership A partnership jointly set up by the Company with another limited partner ("LP"). Payment of expenses by the Company. Zhejiang Tantech Bamboo Technology Co., Ltd Under common control of Mr Zhengyu Wang and Ms Yefang Zhang, CEO of the Company Lease factory building to the Company and charging water and electricity for offices leased to the Company. Forasen Holdings Group Co., Ltd Owned by Mr Zhengyu Wang, the Chairman of Board of Directors of the Company Purchases from the Company Yefang Zhang CEO of the Company Payment of expenses for the Company and provide a guarantee as additional security for a loan. Xinyang Wang Shareholder of Nongyuan Network Provide guarantees and a real property as additional security for certain loans. Dehong Zhang Ms Yefang Zhang's, CEO of the Company, brother Provide guarantees as an additional security for certain loans Ms Aihong Wang Mr Zhengyu Wang's, the Chairman of Board of Directors of the Company, sister. Provide a guarantee as an additional security for a revolving loan |
Schedule of due from related parties | As of As of September 30, September 30, 2023 2022 Zhejiang Yili Yuncang Holding Group Co., Ltd $ 103,417 $ - Zhejiang Yili Yuncang Technology Group Co., Ltd - 29,055 FarmNet 4,100 - Epakia Canada Inc 2,996 - Shanghai Zhongjian Yiting Medical Health Technology Partnership 308 30,928 Dehong Zhang 137 - Total $ 110,958 $ 59,983 |
Schedule of due to related parties | As of As of September 30, September 30, 2023 2022 Zhejiang Tantech Bamboo Technology Co., Ltd. $ 24,496 $ 948 Yefang Zhang 9,150 - Forasen Holdings Group Co., Ltd 168 - Total $ 33,814 $ 948 |
Schedule of Operating lease from related parties | Zhejiang Tantech Bamboo Technology Co., Ltd. Lease No 1 Lease No. 2 Lease No. 3 Total Lease begin date August 1, 2021 July 14, 2021 March 1, 2023 Lease end date July 31, 2031 July 13, 2031 February 29, 2028 Leasing purpose Factory building Factory building Office Annual rent in RMB 168,854 421,431 131,835 722,120 Annual rent in USD $ 23,940 $ 59,750 $ 18,691 $ 102,381 Area (in square meters) 1,180 1,914 479 3,573 Zhejiang Yili Yuncang Holding Group Co., Ltd Lease begin date August 1, 2023 Lease end date July 31, 2025 Leasing purpose Office Annual rent in RMB 9,795 Annual rent in USD $ 1,389 Area (in square meters) 15 |
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 | |
Summary of Parent Company Balance Sheets | As of As of September 30, September 30, 2023 2022 Assets Current assets Cash $ 84 $ 4,057,179 Other receivables 103,760 103,858 103,844 4,161,037 Non-current assets Investment in subsidiaries 167,664,201 156,151,565 Total assets $ 167,768,045 $ 160,312,602 Liabilities and Shareholders’ Equity Current liabilities Interest payable 3,377 - Convertible promissory notes 5,788,742 2,178,511 Derivative liability - 3,450,000 Total liabilities 5,792,119 $ 5,628,511 Commitments and contingencies Shareholders’ equity Ordinary share, $0.20 par value, 500 million shares authorized, 6,094,078 and 2,988,835 shares issued and outstanding at September 30, 2023 and 2022, respectively 1,218,816 597,768 Additional paid-in capital 160,571,517 152,162,565 Retained earnings 185,593 1,923,758 Total shareholders’ equity 161,975,926 154,684,091 Total liabilities and shareholders’ equity $ 167,768,045 $ 160,312,602 |
Summary of Parent Company Statements of Operations | For the Years Ended September 30, 2023 2022 2021 Operating expenses: General and administrative expenses ($913,948) ($2,961,849) ($2,031,506) Other expenses Change in fair value of derivative liability 873,767 419,649 - Interest expenses (445,766 ) - - Amortization of debt issuance costs (1,691,609 ) (48,160 ) - Other expenses (432 ) (3,024 ) (5,672 ) Loss from operations (2,177,988 ) (2,593,384 ) (2,037,178 ) Equity in income of subsidiaries and VIE 4,721,801 4,817,363 4,395,592 Comprehensive income attributable to the Company $ 2,543,813 $ 2,223,979 $ 2,358,414 |
Summary of Parent Company Statements of Cash Flows | For the Years Ended September 30, 2023 2022 2021 Cash flows from operating activities Net income $ 2,543,813 $ 2,223,979 $ 2,358,414 Adjustments to reconcile net income to net cash used in operating activities Equity in earnings of subsidiaries (4,721,801 ) (4,817,363 ) (4,395,592 ) Amortization of debt issuance costs 1,691,609 48,160 - Change in fair value of derivative liability (873,767 ) (419,649 ) - Share-based compensation - 2,007,328 1,260,674 Other current assets 98 21,223 (125,081 ) Other current liabilities (50,869 ) 54,246 (40,000 ) Net cash used in operating activities (1,410,917 ) (882,076 ) (941,585 ) Cash flows from investing activities Investing in subsidiaries (10,576,178 ) (7,529,060 ) (122,726,999 ) Net cash used in investing activities (10,576,178 ) (7,529,060 ) (122,726,999 ) Cash flows from financing activities Net proceeds from share issuance 7,930,000 6,000,000 126,029,588 Net proceeds from issuance of convertible promissory notes - 6,000,000 - Proceeds from advances from related parties - - 298,297 Repayment of advances from related parties - (54,600 ) (2,138,508 ) Net cash provided by financing activities 7,930,000 11,945,400 124,189,377 Net (decrease) increase in cash and restricted cash (4,057,095 ) 3,534,264 520,793 Cash, beginning of year 4,057,179 522,915 2,122 Cash, end of year $ 84 $ 4,057,179 $ 522,915 |
Organization and nature of bu_3
Organization and nature of business (Details) | 12 Months Ended |
Sep. 30, 2023 | |
FAMI | |
Entity Incorporation Date Of Incorporation | Jul. 28, 2015 |
Entity Incorporation, State Country Name | Cayman |
Principal Activities | Holding company |
Nongyuan Network | |
Entity Incorporation Date Of Incorporation | Jul. 07, 2016 |
Entity Incorporation, State Country Name | Zhejiang, China |
Principal Activities | Trading |
Farmmi International | |
Entity Incorporation Date Of Incorporation | Aug. 20, 2015 |
Entity Incorporation, State Country Name | Hong Kong |
% of Ownership | 100% |
Principal Activities | Holding company |
Farmmi Enterprise | |
Entity Incorporation Date Of Incorporation | May 23, 2016 |
Entity Incorporation, State Country Name | Zhejiang, China |
% of Ownership | 100% |
Principal Activities | Holding company |
Farmmi Technology | |
Entity Incorporation Date Of Incorporation | Jun. 06, 2016 |
Entity Incorporation, State Country Name | Zhejiang, China |
% of Ownership | 100% |
Principal Activities | Holding company |
Farmmi Agricultural | |
Entity Incorporation Date Of Incorporation | Dec. 08, 2015 |
Entity Incorporation, State Country Name | Zhejiang, China |
% of Ownership | 100% |
Principal Activities | Holding company |
FLS Mushroom | |
Entity Incorporation Date Of Incorporation | Mar. 25, 2011 |
Entity Incorporation, State Country Name | Zhejiang, China |
% of Ownership | 100% |
Principal Activities | Light processing and distribution of dried mushrooms |
Farmmi Food | |
Entity Incorporation Date Of Incorporation | Dec. 26, 2017 |
Entity Incorporation, State Country Name | Zhejiang, China |
% of Ownership | 100% |
Principal Activities | Dehydrating, further processing and distribution of edible fungus |
Farmmi E-Commerce | |
Entity Incorporation Date Of Incorporation | Mar. 22, 2019 |
Entity Incorporation, State Country Name | Zhejiang, China |
% of Ownership | 100% |
Principal Activities | Technology development, technical services and technical consultation related to agricultural products |
Farmmi Biotech | |
Entity Incorporation Date Of Incorporation | Apr. 07, 2021 |
Entity Incorporation, State Country Name | Zhejiang, China |
% of Ownership | 100% |
Principal Activities | Research and development of mushroom powder and mushroom extract |
Farmmi Ecology | |
Entity Incorporation Date Of Incorporation | Apr. 25, 2021 |
Entity Incorporation, State Country Name | Zhejiang, China |
% of Ownership | 100% |
Principal Activities | Holding company |
Farmmi Supply Chain | |
Entity Incorporation Date Of Incorporation | May 11, 2021 |
Entity Incorporation, State Country Name | Zhejiang, China |
% of Ownership | 100% |
Principal Activities | Agricultural products supply chain |
Farmmi Health Development | |
Entity Incorporation Date Of Incorporation | Sep. 17, 2021 |
Entity Incorporation, State Country Name | Zhejiang, China |
% of Ownership | 100% |
Principal Activities | Health development |
Farmmi Medical Health | |
Entity Incorporation Date Of Incorporation | Sep. 18, 2021 |
Entity Incorporation, State Country Name | Zhejiang, China |
% of Ownership | 100% |
Principal Activities | Medical health |
Farmmi Holdings | |
Entity Incorporation Date Of Incorporation | Sep. 18, 2021 |
Entity Incorporation, State Country Name | Zhejiang, China |
% of Ownership | 100% |
Principal Activities | Holding company |
Jiangxi Xiangbo | |
Entity Incorporation Date Of Incorporation | Jun. 18, 2021 |
Entity Incorporation, State Country Name | Jiangxi, China |
% of Ownership | 100% |
Principal Activities | Holding company |
Yudu Yada | |
Entity Incorporation Date Of Incorporation | Nov. 10, 2010 |
Entity Incorporation, State Country Name | Jiangxi, China |
% of Ownership | 100% |
Principal Activities | Forestry development |
Guoning Zhonghao | |
Entity Incorporation Date Of Incorporation | Jun. 15, 2021 |
Entity Incorporation, State Country Name | Zhejiang, China |
% of Ownership | 100% |
Principal Activities | Agriculture exporting |
Farmmi Eco Agri | |
Entity Incorporation Date Of Incorporation | May 27, 2022 |
Entity Incorporation, State Country Name | Zhejiang, China |
% of Ownership | 100% |
Principal Activities | Agriculture products |
Farmmi Canada | |
Entity Incorporation Date Of Incorporation | Jul. 13, 2022 |
Entity Incorporation, State Country Name | Canada |
% of Ownership | 100% |
Principal Activities | Agriculture products |
Ningbo Farmmi Trade | |
Entity Incorporation Date Of Incorporation | Nov. 14, 2022 |
Entity Incorporation, State Country Name | Zhejiang, China |
% of Ownership | 100% |
Principal Activities | Agriculture products |
Yitang Mediservice | |
Entity Incorporation Date Of Incorporation | Sep. 07, 2021 |
Entity Incorporation, State Country Name | Zhejiang, China |
% of Ownership | 100% |
Principal Activities | Medical services |
Yiting Meditech | |
Entity Incorporation Date Of Incorporation | Sep. 17, 2021 |
Entity Incorporation, State Country Name | Zhejiang, China |
% of Ownership | 100% |
Principal Activities | Medical technology |
Farmmi USA | |
Entity Incorporation Date Of Incorporation | Aug. 24, 2023 |
Entity Incorporation, State Country Name | California, USA |
% of Ownership | 100% |
Principal Activities | Trading |
Organization and nature of bu_4
Organization and nature of business (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 27, 2021 | Sep. 30, 2022 | Sep. 30, 2023 | Aug. 24, 2023 | Apr. 20, 2023 | Nov. 14, 2022 | Jul. 13, 2022 | May 27, 2022 | Jan. 19, 2022 | Jan. 10, 2022 | Dec. 31, 2021 | Sep. 18, 2021 | Sep. 17, 2021 | Sep. 07, 2021 | Dec. 04, 2019 | Jul. 28, 2015 | |
Forest Food Member | ||||||||||||||||
Net Proceeds From Issuance Initial Public Offering | $ 2,800,000 | |||||||||||||||
Percentage Of Controlling Interest Transferred | 100% | |||||||||||||||
Nongyuan Network | Xinyang Wang | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100% | |||||||||||||||
Farmmi Enterprise | ||||||||||||||||
% of Ownership | 100% | |||||||||||||||
Farmmi Enterprise | Farmmi Holdings Group Co Ltd | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 30% | |||||||||||||||
FLS Mushroom | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100% | |||||||||||||||
Net Proceeds From Issuance Initial Public Offering | $ 3,400,000 | |||||||||||||||
% of Ownership | 100% | |||||||||||||||
Farmmi International Limited | FAMI | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100% | |||||||||||||||
Farmmi Health Development | ||||||||||||||||
% of Ownership | 100% | |||||||||||||||
Farmmi Health Development | Farmmi Medical Health One | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100% | |||||||||||||||
Farmmi Technology | ||||||||||||||||
% of Ownership | 100% | |||||||||||||||
Farmmi Technology | Farmmi Holdings Group Co Ltd | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 40% | |||||||||||||||
Farmmi Ecology | ||||||||||||||||
% of Ownership | 100% | |||||||||||||||
Farmmi Ecology | Farmmi Holdings Group Co Ltd | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 30% | |||||||||||||||
Farmmi Holdings | ||||||||||||||||
% of Ownership | 100% | |||||||||||||||
Farmmi Holdings | Farmmi Agricultural One | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100% | |||||||||||||||
Farmmi Agricultural | ||||||||||||||||
% of Ownership | 100% | |||||||||||||||
Farmmi Agricultural | Farmmi Agricultural Supply Chain Co Ltd | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100% | |||||||||||||||
Farmmi Agricultural | Zhejiang FLS Mushroom Co., Ltd | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100% | |||||||||||||||
Farmmi Agricultural | Ningbo Farmmi Trade One | ||||||||||||||||
% of Ownership | 100% | |||||||||||||||
Ganzhou Tengguang | Forestry Development Co Ltd | ||||||||||||||||
Net Proceeds From Issuance Initial Public Offering | $ 11,000,000 | |||||||||||||||
Farmmi Supply Chain | ||||||||||||||||
% of Ownership | 100% | |||||||||||||||
Farmmi Supply Chain | Jiangxi Xiangbo One | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100% | |||||||||||||||
Farmmi Supply Chain | Guoning Zhonghao One | ||||||||||||||||
% of Ownership | 100% | |||||||||||||||
Yada Forestry Co., Ltd | ||||||||||||||||
% of Ownership | 100% | |||||||||||||||
Ningbo Guoning Zhonghao Technology Co., Ltd | Jianxin Huang | ||||||||||||||||
Net Proceeds From Issuance Initial Public Offering | $ 788 | |||||||||||||||
Farmmi USA | ||||||||||||||||
% of Ownership | 100% | |||||||||||||||
Farmmi USA | FAMI | ||||||||||||||||
% of Ownership | 100% | |||||||||||||||
Yitang Mediservice | ||||||||||||||||
% of Ownership | 100% | |||||||||||||||
Yitang Mediservice | Nongyuan Network | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 95% | |||||||||||||||
Yitang Mediservice | Farmmi Medical Health | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 95% | |||||||||||||||
Yitang Mediservice | Farmmi Ecology | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 5% | |||||||||||||||
Yitang Mediservice One | Farmmi Ecology One | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 5% | |||||||||||||||
Yitang Mediservice One | Yiting Meditech | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100% | |||||||||||||||
Yitang Mediservice One | Yifeng Medihealth | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100% | |||||||||||||||
Yitang Mediservice Two | Yilong Enterprise | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100% | |||||||||||||||
YF YL MediTech | Yifeng Medihealth | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 20% | |||||||||||||||
YF YL MediTech | Yilong Enterprise | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 80% | |||||||||||||||
YT SK Medihealth | Yifeng Medihealth | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 20% | |||||||||||||||
YT SK Medihealth | Yilong Enterprise | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 80% | |||||||||||||||
Farmmi International | ||||||||||||||||
% of Ownership | 100% | |||||||||||||||
Farmmi International | Farmmi Eco Agri One | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100% | |||||||||||||||
Farmmi Canada | ||||||||||||||||
% of Ownership | 100% | |||||||||||||||
Farmmi Canada | Farmmi Canada Inc. | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100% |
Summary of significant accoun_4
Summary of significant accounting policies (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Intercompany receivables | $ 0 | $ 0 | ||
Current assets from continuing operations excluding intercompany receivables | 158,171,175 | 153,254,380 | ||
Current assets | 158,171,175 | 153,254,380 | ||
Non-current assets excluding investment in subsidiaries | 16,628,911 | 10,528,473 | ||
Non-current assets | 16,628,911 | 10,528,473 | ||
Total assets from continuing operations | 174,800,086 | 163,782,853 | ||
Current liabilities from continuing operations | 10,712,982 | 8,289,321 | ||
Amount of liabilities excluding intercompany payables. | 158,171,175 | 153,254,380 | ||
Investment in subsidiaries | 0 | 0 | ||
Total liabilities from continuing operations | 12,824,160 | 9,098,762 | ||
Total shareholders' equity (net assets) | 161,975,926 | 154,684,091 | ||
Non-current liabilities | 2,111,178 | 809,441 | ||
Total shareholders' equity (net assets) | 161,975,926 | 154,684,091 | $ 160,792,418 | $ 29,155,157 |
Nongyuan Network | ||||
Intercompany receivables | 131,992,092 | 114,994,912 | ||
Current assets from continuing operations excluding intercompany receivables | 353,985 | 33,986 | ||
Current assets | 132,346,077 | 115,028,898 | ||
Non-current assets excluding investment in subsidiaries | 0 | 8,484 | ||
Non-current assets | 37,712,692 | 40,433,001 | ||
Total assets from continuing operations | 170,058,769 | 155,461,899 | ||
Current liabilities from continuing operations | 125,390,235 | 109,482,482 | ||
Amount of liabilities excluding intercompany payables. | 756,017 | 226,814 | ||
Investment in subsidiaries | 37,712,692 | 40,424,517 | ||
Non-current liabilities | 106,737 | 151,707 | ||
Intercompany payables | 124,634,218 | 109,255,668 | ||
Total shareholders' equity (net assets) | 44,561,797 | 45,827,710 | ||
Total liabilities from continuing operations | 125,496,972 | 109,634,189 | ||
Other [Member] | ||||
Intercompany receivables | 144,664,527 | 163,676,919 | ||
Current assets from continuing operations excluding intercompany receivables | 138,871,675 | 91,926,232 | ||
Current assets | 283,536,202 | 255,603,151 | ||
Non-current assets excluding investment in subsidiaries | 16,627,615 | 10,500,217 | ||
Non-current assets | 16,627,615 | 10,500,217 | ||
Total assets from continuing operations | 300,163,817 | 266,103,368 | ||
Current liabilities from continuing operations | 291,394,188 | 256,030,616 | ||
Amount of liabilities excluding intercompany payables. | 634,111 | 590,393 | ||
Investment in subsidiaries | 0 | 0 | ||
Total liabilities from continuing operations | 291,927,503 | 256,688,350 | ||
Non-current liabilities | 533,315 | 657,734 | ||
Intercompany payables | 290,760,077 | 255,440,223 | ||
Total shareholders' equity (net assets) | 8,236,314 | 9,415,018 | ||
variable interest entity and subsidiaries. | ||||
Intercompany receivables | 7,086,579 | 0 | ||
Current assets from continuing operations excluding intercompany receivables | 18,841,671 | 57,133,125 | ||
Current assets | 25,928,250 | 57,133,125 | ||
Non-current assets excluding investment in subsidiaries | 1,296 | 19,772 | ||
Non-current assets | 1,296 | 19,772 | ||
Total assets from continuing operations | 25,929,546 | 57,152,897 | ||
Current liabilities from continuing operations | 23,342,815 | 56,209,906 | ||
Amount of liabilities excluding intercompany payables. | 3,530,735 | 1,789,357 | ||
Investment in subsidiaries | 0 | 0 | ||
Total liabilities from continuing operations | 24,813,941 | 56,209,906 | ||
Non-current liabilities | 1,471,126 | 0 | ||
Total shareholders' equity (net assets) | 1,115,605 | 942,991 | ||
Intercompany payables | 19,812,080 | 54,420,549 | ||
FAMI | ||||
Intercompany receivables | 151,681,406 | 140,445,311 | ||
Current assets from continuing operations excluding intercompany receivables | 103,844 | 4,161,037 | ||
Current assets | 151,785,250 | 144,606,348 | ||
Non-current assets excluding investment in subsidiaries | 0 | 0 | ||
Non-current assets | 0 | 0 | ||
Total assets from continuing operations | 151,785,250 | 144,606,348 | ||
Current liabilities from continuing operations | 6,010,348 | 5,683,459 | ||
Amount of liabilities excluding intercompany payables. | 5,792,119 | 5,682,757 | ||
Investment in subsidiaries | 0 | 0 | ||
Total liabilities from continuing operations | 6,010,348 | 5,683,459 | ||
Total shareholders' equity (net assets) | 145,774,902 | 138,922,889 | ||
Non-current liabilities | 0 | 0 | ||
Intercompany payables | $ 218,229 | $ 702 |
Summary of significant accoun_5
Summary of significant accounting policies (Details 1) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues | $ 110,364,887 | $ 99,213,379 | $ 39,289,951 |
Cost of revenues | (106,078,132) | (93,775,293) | (34,180,670) |
Gross profit from continuing operations | 4,286,755 | 5,438,086 | 5,109,281 |
Operating expenses | 2,245,380 | 4,495,718 | 2,256,405 |
Income (loss) from operations | 2,041,375 | 942,368 | 2,852,876 |
Income (loss) before income taxes | 2,857,306 | 2,105,612 | 2,433,361 |
Provision for income taxes | (313,493) | 118,367 | (25,571) |
Net income (loss) from continuing operations | 2,543,813 | 2,223,979 | 2,407,790 |
Gross profit | 4,286,755 | 5,438,086 | 5,109,281 |
Nongyuan Network | |||
Revenues | 16,034,543 | 9,111,073 | 762,771 |
Cost of revenues | (16,023,779) | (9,053,547) | (742,933) |
Operating expenses | (71,676) | 50,344 | (8,940) |
Income (loss) from operations | 60,912 | 7,182 | 10,898 |
Other Income | 20,510 | 19,990 | |
Income (loss) before income taxes | 129,328 | 27,692 | (9,092) |
Provision for income taxes | (8,556) | 9,182 | 0 |
Net income (loss) from continuing operations | 10,764 | 57,526 | 19,838 |
Net income (loss) from continuing operations | 137,884 | (36,874) | (9,092) |
Other Income | (20,510) | (19,990) | |
Other [Member] | |||
Revenues | 74,224,063 | 64,795,082 | 33,068,045 |
Cost of revenues | (70,021,350) | (60,272,018) | (28,847,801) |
Gross profit from continuing operations | 4,202,713 | 4,523,064 | 4,220,244 |
Operating expenses | 1,028,294 | 782,009 | (588,892) |
Income (loss) from operations | 3,174,419 | 3,741,055 | 4,809,136 |
Other Income | 1,514,162 | 560,497 | 391,819 |
Income (loss) before income taxes | 4,688,581 | 4,301,552 | 4,417,317 |
Provision for income taxes | (270,874) | 114,801 | (8,085) |
Net income (loss) from continuing operations | 4,417,707 | 4,416,353 | 4,409,232 |
Gross profit | 4,202,713 | 4,523,064 | 4,220,244 |
Other Income | (1,514,162) | (560,497) | (391,819) |
variable interest entity and subsidiaries. | |||
Revenues | 20,106,281 | 25,307,224 | 5,459,135 |
Gross profit from continuing operations | 73,278 | 857,496 | 869,199 |
Operating expenses | (231,462) | 701,516 | 804,851 |
Income (loss) from operations | (158,184) | 155,980 | 64,348 |
Other Income | 634,225 | 213,771 | 2,033 |
Income (loss) before income taxes | 476,041 | 369,751 | 62,315 |
Provision for income taxes | (34,063) | (5,616) | (17,486) |
Net income (loss) from continuing operations | 441,978 | 364,135 | 44,829 |
Gross profit | 73,278 | 857,496 | 869,199 |
Cost of revenues from continuing operations | (20,033,003) | (24,449,728) | (4,589,936) |
Other Income | (634,225) | (213,771) | (2,033) |
FAMI | |||
Revenues | 0 | 0 | 0 |
Operating expenses | (913,948) | 2,961,849 | 2,031,506 |
Income (loss) from operations | 913,948 | (2,961,849) | (2,031,506) |
Other Income | 1,264,040 | 368,466 | 5,673 |
Income (loss) before income taxes | (2,177,988) | (2,593,383) | (2,037,179) |
Provision for income taxes | 0 | 0 | 0 |
Net income (loss) from continuing operations | 0 | 0 | 0 |
Cost of revenues from continuing operations | 0 | 0 | 0 |
Net income (loss) from continuing operations | (2,177,988) | (2,593,383) | (2,037,179) |
Other Income | (1,264,040) | (368,466) | (5,673) |
Consolidated [Member] | |||
Revenues | 110,364,887 | 99,213,379 | 39,289,951 |
Cost of revenues | (106,078,132) | (93,775,293) | (34,180,670) |
Gross profit from continuing operations | 4,286,755 | 5,438,086 | 5,109,281 |
Operating expenses | (2,245,380) | (4,495,718) | (2,256,405) |
Income (loss) from operations | 2,041,375 | 942,368 | 2,852,876 |
Other Income | 815,931 | 1,163,244 | 419,515 |
Income (loss) before income taxes | 2,857,306 | 2,105,612 | 2,433,361 |
Provision for income taxes | (313,493) | 118,367 | (25,571) |
Net income (loss) from continuing operations | 2,543,813 | 2,223,979 | 2,407,790 |
Gross profit | 4,286,755 | 5,438,086 | 5,109,281 |
Other Income | $ (815,931) | $ (1,163,244) | $ (419,515) |
Summary of significant accoun_6
Summary of significant accounting policies (Details 2) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net cash provided by (used in) operating activities from continuing operations | $ (75,754,162) | $ 20,635,488 | $ (53,231,108) |
Net cash used in investing activities from continuing operations | 35,896,193 | (41,991,079) | (12,127,728) |
Net cash provided by (used in) financing activities from continuing operations | 11,017,942 | 11,634,868 | 122,665,288 |
Effect of exchange rate changes on cash and restricted cash | 462,261 | (8,363,680) | (153,454) |
Net increase (decrease) in cash and restricted cash | (28,377,766) | (18,084,403) | 57,152,998 |
Cash and restricted cash from continuing operations, beginning of year | 41,167,501 | 59,251,904 | 2,098,906 |
Cash and restricted cash from continuing operations, end of year | 12,789,735 | 41,167,501 | 59,251,904 |
Net cash used in investing activities from continuing operations | 35,896,193 | (41,991,079) | (12,258,220) |
Nongyuan Network | |||
Net cash provided by (used in) operating activities from continuing operations | (579,125) | (3,189,440) | 3,246,067 |
Net cash used in investing activities from continuing operations | 0 | 2,738,559 | (2,772,430) |
Net cash provided by (used in) financing activities from continuing operations | 539,287 | 373,382 | (616,095) |
Effect of exchange rate changes on cash and restricted cash | 5,227 | (5,078) | 258,485 |
Net increase (decrease) in cash and restricted cash | (34,611) | (82,577) | 116,027 |
Cash and restricted cash from continuing operations, beginning of year | 37,393 | 116,447 | 420 |
Cash and restricted cash from continuing operations, end of year | 2,782 | 33,870 | 116,447 |
Other [Member] | |||
Net cash provided by (used in) operating activities from continuing operations | (17,601,436) | (14,188,275) | 67,709,967 |
Net cash used in investing activities from continuing operations | (7,121,332) | 1,140,848 | (9,353,935) |
Net cash provided by (used in) financing activities from continuing operations | 32,778 | 649,782 | 144,197 |
Effect of exchange rate changes on cash and restricted cash | 462,420 | (8,345,494) | (506,653) |
Net increase (decrease) in cash and restricted cash | (24,227,570) | (20,743,139) | 57,993,576 |
Cash and restricted cash from continuing operations, beginning of year | 183,030 | 183,030 | 183,030 |
Cash and restricted cash from continuing operations, end of year | (24,044,540) | (20,560,109) | 58,176,606 |
variable interest entity and subsidiaries. | |||
Net cash provided by (used in) operating activities from continuing operations | (45,586,506) | 46,404,339 | (338,559) |
Net cash provided by (used in) financing activities from continuing operations | 2,515,877 | (899,449) | (1,232,191) |
Effect of exchange rate changes on cash and restricted cash | (5,386) | (13,108) | 94,714 |
Net increase (decrease) in cash and restricted cash | (58,490) | (378,704) | (1,477,399) |
Cash and restricted cash from continuing operations, beginning of year | 61,196 | 434,135 | 1,913,335 |
Cash and restricted cash from continuing operations, end of year | 2,706 | 55,431 | 435,936 |
Net cash used in investing activities from continuing operations | 43,017,525 | (45,870,486) | (1,363) |
FAMI | |||
Net cash provided by (used in) operating activities from continuing operations | (11,987,095) | (8,391,136) | (123,848,583) |
Net cash used in investing activities from continuing operations | 0 | 0 | 0 |
Net cash provided by (used in) financing activities from continuing operations | 7,930,000 | 11,511,153 | 124,369,377 |
Effect of exchange rate changes on cash and restricted cash | 0 | 0 | 0 |
Net increase (decrease) in cash and restricted cash | (4,057,095) | 3,120,017 | 520,794 |
Cash and restricted cash from continuing operations, beginning of year | 4,057,179 | 522,915 | 2,121 |
Cash and restricted cash from continuing operations, end of year | $ 84 | $ 4,057,179 | $ 522,915 |
Summary of significant accoun_7
Summary of significant accounting policies (Details 3) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Nongyuan Network | |||
FAMI | $ 0 | $ 1,217,137 | $ 0 |
WFOE that is the primary beneficiary of the VIE | 0 | ||
Other entities that are consolidated | 1,893,667 | 26,961,378 | 24,075,199 |
Investors | 0 | 0 | 0 |
VIE and its subsidiaries | 1,411,434 | 6,394,084 | 0 |
Other [Member] | |||
FAMI | 212,652 | 913,005 | 124,670,237 |
WFOE that is the primary beneficiary of the VIE | 9,054,194 | 19,188,742 | 38,204,550 |
Investors | 0 | 0 | 0 |
VIE and its subsidiaries | 12,944 | 15,293,176 | 1,601,406 |
variable interest entity and subsidiaries. | |||
FAMI | 0 | 0 | 45,500 |
WFOE that is the primary beneficiary of the VIE | 505,077 | 14,594,586 | 0 |
Other entities that are consolidated | 71,277 | 14,744,568 | 5,624,880 |
Investors | 0 | 0 | 0 |
VIE and its subsidiaries | 0 | ||
FAMI | |||
FAMI | 0 | ||
WFOE that is the primary beneficiary of the VIE | 0 | 0 | 1,668,758 |
Other entities that are consolidated | 0 | 984,655 | 319,981 |
Investors | 0 | 0 | 0 |
VIE and its subsidiaries | $ 0 | $ 0 | $ 0 |
Summary of significant accoun_8
Summary of significant accounting policies (Details 4) | 12 Months Ended |
Sep. 30, 2023 | |
Transportation equipment | |
Intangible assets estimated useful lives | 4 years |
Minimum | Machinery and equipment | |
Intangible assets estimated useful lives | 5 years |
Minimum | Office equipment | |
Intangible assets estimated useful lives | 3 years |
Maximum | Machinery and equipment | |
Intangible assets estimated useful lives | 10 years |
Maximum | Office equipment | |
Intangible assets estimated useful lives | 5 years |
Summary of significant accoun_9
Summary of significant accounting policies (Details 5) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Component of basic and diluted EPS | |||
Net income (loss) available for common shareholders (A) | $ 2,543,813 | $ 2,223,979 | $ 2,356,437 |
Weighted average outstanding shares of ordinary shares (B) | 3,628,923 | 2,905,984 | 514,213 |
Diluted ordinary shares and ordinary shares equivalents (C) | 8,452,875 | 2,905,984 | 522,276 |
Earnings per share | |||
Basic (A/B) | $ 0.70 | $ 0.77 | $ 4.58 |
Diluted (A/C) | $ 0.30 | $ 0.77 | $ 4.51 |
Continuing operations | |||
Component of basic and diluted EPS | |||
Net income (loss) available for common shareholders (A) | $ 2,543,813 | $ 2,223,979 | $ 2,407,790 |
Earnings per share | |||
Basic (A/B) | $ 0.70 | $ 0.77 | $ 4.68 |
Diluted (A/C) | $ 0.30 | $ 0.77 | $ 4.61 |
Discontinued operations | |||
Component of basic and diluted EPS | |||
Net income (loss) available for common shareholders (A) | $ 0 | $ 0 | $ (51,353) |
Earnings per share | |||
Basic (A/B) | $ 0 | $ 0 | $ (0.10) |
Diluted (A/C) | $ 0 | $ 0 | $ (0.10) |
Summary of significant accou_10
Summary of significant accounting policies (Details 6) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Biological assets | $ 9,187,640 | $ 9,638,722 |
Short term investment | 0 | 5,820 |
Derivative liability | 0 | 3,450,000 |
Level 1 Member | ||
Biological assets | 0 | 0 |
Short term investment | 0 | 5,820 |
Derivative liability | 0 | 0 |
Level 2 Member | ||
Biological assets | 0 | 0 |
Short term investment | 0 | 0 |
Derivative liability | 0 | 0 |
Level 3 Member | ||
Biological assets | 9,187,640 | 9,638,722 |
Short term investment | 0 | 0 |
Derivative liability | $ 0 | $ 3,450,000 |
Summary of significant accou_11
Summary of significant accounting policies (Details Narrative) | 12 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2023 CNY (¥) | |
Distribute percentage of earnings after eliminating Variable interest entity accumulated losses | 95% | |||
Percentage of Variable interest entity after tax net income gain loss | 10% | |||
Percentage of service fee is subject value added sales tax | 6% | |||
Percentage of service fee is subject value added other taxe | 12% | |||
Percentage of service fee is subject value added tax | 6% | 6% | ||
Subject to corporate income tax maximum percentage of net income loss | 25% | |||
Cash | ¥ | ¥ 68,531 | |||
Allowance for doubtful accounts | $ 14,719 | $ 7,249 | ||
Inventory reserve | 8,809 | 49,652 | ||
Allowance for doubtful debts relating to advances to suppliers | 3,176 | 3,258 | ||
Depreciation expense | 200,000 | 200,000 | ||
Contract liabilities, current | 400,000 | 600,000 | ||
Cash maintained with People's Republic of China | $ 12,800,000 | $ 76,300,000 | ||
Exchange rates (per RMB1) | 0.1371 | 0.1406 | 0.1371 | |
Average exchange rates | 0.1418 | 0.1521 | 0.1540 | |
Investment Interest Rate | 2.05% | 2.05% | ||
Short-term deposit | $ 0 | $ 35,144,444 | ||
Shipping and handling | ||||
Shipping and handling expenses | 60,204 | 244,490 | $ 235,956 | |
Amortization expenses | ||||
Amortization expenses | $ 6,805 | $ 31,984 | $ 46,085 |
Accounts receivable net (Detail
Accounts receivable net (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Accounts receivable net | ||
Accounts receivable | $ 24,692,164 | $ 16,358,493 |
Less: allowance for doubtful accounts | (14,719) | (7,249) |
Accounts receivable | $ 24,677,445 | $ 16,351,244 |
Accounts receivable net (Deta_2
Accounts receivable net (Details Narrative) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Accounts receivable net | ||
Allowance for doubtful accounts | $ 14,719 | $ 7,249 |
Advances to suppliers net (Deta
Advances to suppliers net (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Advances to suppliers | $ 116,343,961 | $ 48,633,604 |
Less: allowance for doubtful accounts | (3,176) | (3,258) |
Advances to suppliers, net | 116,347,137 | 48,636,862 |
Lishui Zhelin Trading Co., Ltd | ||
Advances to suppliers | 53,405,200 | 7,289,180 |
Jingning Liannong Trading Co., Ltd | ||
Advances to suppliers | 20,231,750 | 16,761,798 |
Qingyuan Nongbang Mushroom Industry Co., Ltd | ||
Advances to suppliers | 15,417,317 | 12,521,949 |
Zhongjin Boda (Hangzhou) Industrial Co., Ltd | ||
Advances to suppliers | 10,964,912 | 0 |
Ningbo Runcai Supply Chain Management Co., Ltd | ||
Advances to suppliers | 10,279,605 | 0 |
Ningbo Caixiang Trading Co., Ltd. | ||
Advances to suppliers | 0 | 4,372,934 |
Others | ||
Advances to suppliers | $ 6,048,353 | $ 7,691,001 |
Advances to suppliers net (De_2
Advances to suppliers net (Details Narrative) - USD ($) | 1 Months Ended | ||
Apr. 30, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | |
Advances to suppliers net | |||
Frame work Agreement | 4 years | ||
Allowance for doubtful debts relating to advances to suppliers | $ 3,176 | $ 3,258 |
Inventories net (Details)
Inventories net (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Inventories net | ||
Raw materials | $ 520,216 | $ 620,252 |
Packaging materials | 69,420 | 63,703 |
Finished goods | 3,321,021 | 81,975 |
Inventories | 3,910,657 | 765,930 |
Less: allowance for inventory reserve | (8,809) | (49,652) |
Total | $ 3,901,848 | $ 716,278 |
Inventories net (Details Narrat
Inventories net (Details Narrative) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Inventories net | ||
Allowance for inventory reserve | $ 8,809 | $ 49,652 |
Other receivable (Details narra
Other receivable (Details narrative) - USD ($) | Oct. 12, 2022 | Nov. 05, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 26, 2022 |
Frame work Agreement interest rate | 6.50% | 7% | |||
Shanghai Jiaoda Onlly Co Ltd [Member] | |||||
Company received amount | $ 7,000,000 | ||||
Interest receivable | $ 0 | $ 400,000 | |||
Total consideration | $ 71,600,000 | ||||
Payment to party | $ 7,000,000 | ||||
Frame work Agreement interest rate | 15.97% |
Property and equipment net (Det
Property and equipment net (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Subtotal | $ 130,474 | $ 133,944 |
Accumulated depreciation | (105,942) | (89,076) |
Total | 24,532 | 44,868 |
Machinery and equipment | ||
Subtotal | 62,973 | 64,449 |
Transportation equipment. | ||
Subtotal | 48,009 | 49,241 |
Office equipment | ||
Subtotal | $ 19,492 | $ 20,254 |
Property and equipment net (D_2
Property and equipment net (Details narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property and equipment net | |||
Depreciation expense | $ 19,752 | $ 32,303 | $ 22,332 |
Loans (Details)
Loans (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Short-term loans | $ 2,412,281 | $ 0 |
Total long-term loans - current portion | 676,284 | 1,505,353 |
Total long-term loans - non-current portion | 1,652,561 | 292,285 |
Total short-term and long-term loans | 4,741,126 | 1,797,638 |
Huaneng Guicheng Trust Co Ltd [Member] | ||
Total long-term loans - current portion | 100,054 | 80,832 |
Long-term loans - non-current portion | 48,999 | 57,988 |
Bank of Beijing Hangzhou Branch [Member] | ||
Short-term loans | 411,184 | 0 |
Total long-term loans - current portion | 0 | 1,124,622 |
Long-term loans - non-current portion | 1,096,491 | 0 |
China Resources Shenzhen Investment Trust Co Ltd [Member] | ||
Total long-term loans - current portion | 82,237 | 159,321 |
Long-term loans - non-current portion | 0 | 93,719 |
Jiangsu Suning Bank Member | ||
Total long-term loans - current portion | 186,472 | 140,578 |
Long-term loans - non-current portion | 32,261 | 140,578 |
China Guangfa Bank Co., Ltd. [Member] | ||
Short-term loans | 685,307 | 0 |
Industrial Bank Co., Ltd [Member] | ||
Short-term loans | 274,123 | 0 |
Zhejiang Mintai Commercial Bank (Hangzhou Branch). | ||
Total long-term loans - current portion | 21,587 | 0 |
Long-term loans - non-current portion | 17,989 | 0 |
Xiaoshan Rural Commercial Bank [Member] | ||
Short-term loans | 1,041,667 | 0 |
Long-term loans - non-current portion | 328,947 | 0 |
WeBank Co., Ltd [Member] | ||
Total long-term loans - current portion | 285,934 | 0 |
Long-term loans - non-current portion | $ 127,874 | $ 0 |
Loans (Details 1)
Loans (Details 1) - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Loan amount in RMB | $ 4,934,167 | $ 10,708,334 |
Total short-term and long-term loans | 4,741,126 | 1,797,638 |
Short-term loans | 2,412,281 | 0 |
Total long-term loans - current portion | 676,284 | 1,505,353 |
Total long-term loans - non-current portion | 1,652,561 | 292,285 |
Huaneng Guicheng Trust Co Ltd [Member] | ||
Total long-term loans - current portion | 100,054 | 80,832 |
Long-term loans - non-current portion | 48,999 | 57,988 |
China Guangfa Bank Co., Ltd. [Member] | ||
Short-term loans | 685,307 | 0 |
Industrial Bank Co., Ltd [Member] | ||
Short-term loans | 274,123 | 0 |
Bank of Beijing Hangzhou Branch [Member] | ||
Short-term loans | 411,184 | 0 |
Total long-term loans - current portion | 0 | 1,124,622 |
Long-term loans - non-current portion | 1,096,491 | 0 |
China Resources Shenzhen Investment Trust Co Ltd [Member] | ||
Total long-term loans - current portion | 82,237 | 159,321 |
Long-term loans - non-current portion | 0 | 93,719 |
Jiangsu Suning Bank Member | ||
Total long-term loans - current portion | 186,472 | 140,578 |
Long-term loans - non-current portion | 32,261 | 140,578 |
WeBank Co., Ltd [Member] | ||
Total long-term loans - current portion | 285,934 | 0 |
Long-term loans - non-current portion | 127,874 | 0 |
Xiaoshan Rural Commercial Bank [Member] | ||
Short-term loans | 1,041,667 | 0 |
Long-term loans - non-current portion | 328,947 | 0 |
Secured short-term loans [Member] | ||
Loan amount in RMB | 14,600,000 | |
Short-term loans | 2,001,097 | 0 |
Secured short-term loans [Member] | China Guangfa Bank Co., Ltd. [Member] | ||
Loan amount in RMB | 5,000,000 | |
Short-term loans | $ 685,307 | 0 |
Loan commencement date | Nov. 01, 2022 | |
Loan maturity date | Oct. 31, 2023 | |
Effective interest rate | 3.95% | |
Secured short-term loans [Member] | Industrial Bank Co., Ltd [Member] | ||
Loan amount in RMB | $ 2,000,000 | |
Short-term loans | $ 274,123 | 0 |
Loan commencement date | Jan. 16, 2023 | |
Loan maturity date | Jan. 14, 2024 | |
Effective interest rate | 5.13% | |
Secured short-term loans [Member] | Xiaoshan Rural Commercial Bank [Member] | ||
Loan amount in RMB | $ 7,600,000 | |
Short-term loans | $ 1,041,667 | 0 |
Loan commencement date | Jun. 19, 2023 | |
Loan maturity date | Jun. 18, 2024 | |
Effective interest rate | 3.20% | |
Unsecured short-term loans [Member] | ||
Loan amount in RMB | $ 3,000,000 | |
Short-term loans | 411,184 | 0 |
Unsecured short-term loans [Member] | Bank of Beijing Hangzhou Branch [Member] | ||
Loan amount in RMB | 3,000,000 | |
Short-term loans | $ 411,184 | 0 |
Loan commencement date | Jan. 17, 2023 | |
Loan maturity date | Jan. 17, 2024 | |
Effective interest rate | 4.65% | |
Total short-term loans [Member] | ||
Loan amount in RMB | $ 17,600,000 | |
Short-term loans | 2,412,281 | 0 |
Secured long-term loans [Member] | Huaneng Guicheng Trust Co Ltd [Member] | ||
Loan amount in RMB | $ 430,000 | $ 575,000 |
Loan commencement date | Dec. 30, 2022 | Aug. 14, 2022 |
Loan maturity date | Dec. 28, 2024 | Aug. 01, 2024 |
Effective interest rate | 12.91% | 14.40% |
Total long-term loans - current portion | $ 58,936 | $ 80,832 |
Total long-term loans - non-current portion | 57,988 | |
Secured long-term loans [Member] | Huaneng Guicheng Trust Co Ltd One [Member] | ||
Loan amount in RMB | $ 300,000 | |
Loan commencement date | Aug. 01, 2023 | |
Loan maturity date | Aug. 01, 2025 | |
Effective interest rate | 16.20% | |
Total long-term loans - current portion | $ 41,118 | 0 |
Total long-term loans - non-current portion | 57,988 | |
Secured long-term loans [Member] | Bank of Beijing Hangzhou Branch [Member] | ||
Loan amount in RMB | $ 8,000,000 | |
Loan commencement date | Apr. 06, 2022 | |
Loan maturity date | Apr. 05, 2026 | |
Effective interest rate | 4.80% | |
Total long-term loans - current portion | $ 1,124,622 | |
Secured long-term loans [Member] | China Resources Shenzhen Investment Trust Co Ltd One [Member] | ||
Loan amount in RMB | $ 333,334 | |
Loan commencement date | Apr. 30, 2021 | |
Loan maturity date | Apr. 28, 2023 | |
Effective interest rate | 10.80% | |
Total long-term loans - current portion | $ 46,859 | |
Secured long-term loans [Member] | WeBank Co., Ltd [Member] | ||
Loan amount in RMB | $ 885,000 | |
Loan commencement date | Apr. 12, 2023 | |
Loan maturity date | Apr. 01, 2025 | |
Effective interest rate | 12.56% | |
Total long-term loans - current portion | $ 121,300 | 1,124,622 |
Secured long-term loans [Member] | WeBank Co., Ltd One [Member] | ||
Loan amount in RMB | $ 500,000 | |
Loan commencement date | May 15, 2023 | |
Loan maturity date | May 15, 2025 | |
Effective interest rate | 9% | |
Total long-term loans - current portion | $ 68,531 | 1,124,622 |
Secured long-term loans [Member] | WeBank Co., Ltd Two [Member] | ||
Loan amount in RMB | $ 479,167 | |
Loan commencement date | Aug. 14, 2022 | |
Loan maturity date | Aug. 01, 2024 | |
Effective interest rate | 14.40% | |
Total long-term loans - current portion | $ 65,675 | 1,124,622 |
Secured long-term loans [Member] | WeBank Co., Ltd Three [Member] | ||
Loan amount in RMB | $ 90,000 | |
Loan commencement date | May 15, 2023 | |
Loan maturity date | May 01, 2025 | |
Effective interest rate | 13.86% | |
Total long-term loans - current portion | $ 12,336 | 1,124,622 |
Secured long-term loans [Member] | WeBank Co., Ltd Four [Member] | ||
Loan amount in RMB | $ 67,500 | |
Loan commencement date | Aug. 01, 2023 | |
Loan maturity date | Jul. 28, 2025 | |
Effective interest rate | 14.11% | |
Total long-term loans - current portion | $ 9,252 | 1,124,622 |
Secured long-term loans [Member] | WeBank Co., Ltd Five [Member] | ||
Loan amount in RMB | $ 64,500 | |
Loan commencement date | Aug. 01, 2023 | |
Loan maturity date | Aug. 01, 2025 | |
Effective interest rate | 12.78% | |
Total long-term loans - current portion | $ 8,840 | 1,124,622 |
Secured long-term loans [Member] | Jiangsu Suning Bank One [Member] | ||
Loan amount in RMB | $ 210,000 | |
Loan commencement date | May 15, 2023 | |
Loan maturity date | May 01, 2025 | |
Effective interest rate | 13.86% | |
Total long-term loans - current portion | $ 28,783 | 1,124,622 |
Secured long-term loans [Member] | Jiangsu Suning Bank Two [Member] | ||
Loan amount in RMB | $ 150,500 | |
Loan commencement date | Aug. 01, 2023 | |
Loan maturity date | Aug. 01, 2025 | |
Effective interest rate | 12.78% | |
Total long-term loans - current portion | $ 20,628 | 1,124,622 |
Secured long-term loans [Member] | Zhejiang Mintai Commercial Bank [Member] | ||
Loan amount in RMB | $ 157,500 | |
Loan commencement date | Aug. 01, 2023 | |
Loan maturity date | Jul. 28, 2025 | |
Effective interest rate | 14.11% | |
Total long-term loans - current portion | $ 21,587 | 1,124,622 |
Secured long-term loans [Member] | Xiaoshan Rural Commercial Bank [Member] | ||
Loan amount in RMB | $ 2,400,000 | |
Loan commencement date | Jun. 19, 2023 | |
Loan maturity date | Jun. 18, 2026 | |
Effective interest rate | 4.50% | |
Total long-term loans - current portion | 1,124,622 | |
Long-term loans - non-current portion | $ 328,947 | |
long-term loans [Member] | China Resources Shenzhen Investment Trust Co Ltd [Member] | ||
Loan amount in RMB | $ 600,000 | $ 800,000 |
Loan commencement date | Jul. 01, 2022 | Jul. 01, 2022 |
Loan maturity date | Jul. 01, 2024 | Jul. 01, 2024 |
Effective interest rate | 14.40% | 14.40% |
Total long-term loans - current portion | $ 112,462 | |
Total long-term loans - non-current portion | $ 82,237 | |
Secured long-term loans current [Member] | ||
Loan amount in RMB | 107,500 | |
Total long-term loans - current portion | 1,580,263 | 1,505,353 |
Long-term loans, non-current portiont [Member] | ||
Loan amount in RMB | 20,628 | |
Total long-term loans - non-current portion | 176,797 | |
Long-term loans, non-current portiont [Member] | Huaneng Guicheng Trust Co Ltd [Member] | ||
Loan amount in RMB | $ 107,500 | |
Loan commencement date | Dec. 30, 2022 | |
Loan maturity date | Dec. 28, 2024 | |
Effective interest rate | 12.91% | |
Long-term loans - non-current portion | $ 14,734 | 0 |
Long-term loans, non-current portiont [Member] | Huaneng Guicheng Trust Co Ltd One [Member] | ||
Loan amount in RMB | $ 250,000 | $ 412,500 |
Loan commencement date | Aug. 01, 2023 | Aug. 14, 2022 |
Loan maturity date | Aug. 01, 2025 | Aug. 01, 2024 |
Effective interest rate | 16.20% | 14.40% |
Total long-term loans - current portion | $ 112,462 | |
Total long-term loans - non-current portion | $ 34,265 | 57,988 |
Long-term loans, non-current portiont [Member] | Bank of Beijing Hangzhou Branch [Member] | ||
Loan amount in RMB | $ 8,000,000 | |
Loan commencement date | Apr. 03, 2023 | |
Loan maturity date | Apr. 02, 2026 | |
Effective interest rate | 4.75% | |
Total long-term loans - current portion | $ 1,096,491 | |
Long-term loans, non-current portiont [Member] | China Resources Shenzhen Investment Trust Co Ltd [Member] | ||
Loan amount in RMB | $ 666,667 | |
Loan commencement date | Jul. 01, 2022 | |
Loan maturity date | Jul. 01, 2024 | |
Effective interest rate | 14.40% | |
Total long-term loans - current portion | $ 1,124,622 | |
Long-term loans - non-current portion | 93,719 | |
Long-term loans, non-current portiont [Member] | Jiangsu Suning Bank Member | ||
Loan amount in RMB | $ 122,500 | $ 1,000,000 |
Loan commencement date | May 15, 2023 | Sep. 02, 2022 |
Loan maturity date | May 01, 2025 | Sep. 01, 2024 |
Effective interest rate | 13.86% | 12% |
Long-term loans - non-current portion | $ 16,790 | $ 140,578 |
Long-term loans, non-current portiont [Member] | WeBank Co., Ltd [Member] | ||
Loan amount in RMB | $ 442,500 | |
Loan commencement date | Apr. 12, 2023 | |
Loan maturity date | Apr. 01, 2025 | |
Effective interest rate | 12.56% | |
Long-term loans - non-current portion | $ 60,651 | |
Long-term loans, non-current portiont [Member] | WeBank Co., Ltd One [Member] | ||
Loan amount in RMB | $ 333,333 | |
Loan commencement date | May 15, 2023 | |
Loan maturity date | May 15, 2025 | |
Effective interest rate | 9% | |
Long-term loans - non-current portion | $ 45,687 | |
Long-term loans, non-current portiont [Member] | Jiangsu Suning Bank Two [Member] | ||
Loan amount in RMB | $ 112,875 | |
Loan commencement date | Aug. 01, 2023 | |
Loan maturity date | Aug. 01, 2025 | |
Effective interest rate | 12.78% | |
Total long-term loans - current portion | $ 15,471 | |
Long-term loans, non-current portiont [Member] | Zhejiang Mintai Commercial Bank [Member] | ||
Loan amount in RMB | $ 131,250 | |
Loan commencement date | Jul. 01, 2022 | |
Loan maturity date | Jul. 01, 2024 | |
Effective interest rate | 14.40% | |
Long-term loans - non-current portion | $ 17,989 | |
Long-term loans, non-current portiont [Member] | WeBank Co., Ltd Two [Member] | ||
Loan amount in RMB | $ 56,250 | |
Loan commencement date | Aug. 01, 2023 | |
Loan maturity date | Aug. 01, 2025 | |
Effective interest rate | 13.86% | |
Long-term loans - non-current portion | $ 7,710 | |
Long-term loans, non-current portiont [Member] | WeBank Co., Ltd Three [Member] | ||
Loan amount in RMB | $ 52,500 | |
Loan commencement date | Aug. 01, 2023 | |
Loan maturity date | Jul. 28, 2025 | |
Effective interest rate | 14.11% | |
Long-term loans - non-current portion | $ 7,196 | |
Long-term loans, non-current portiont [Member] | WeBank Co., Ltd Four [Member] | ||
Loan amount in RMB | $ 48,375 | |
Loan commencement date | Aug. 01, 2023 | |
Loan maturity date | Aug. 01, 2025 | |
Effective interest rate | 12.78% | |
Long-term loans - non-current portion | $ 6,630 | |
Long-term loans, current portiont [Member] | Jiangsu Suning Bank Member | ||
Loan amount in RMB | $ 1,000,000 | $ 1,000,000 |
Loan commencement date | Sep. 02, 2022 | Sep. 02, 2022 |
Loan maturity date | Sep. 01, 2024 | Sep. 01, 2024 |
Effective interest rate | 12% | 12% |
Total long-term loans - current portion | $ 137,061 | $ 140,578 |
Loans (Details Narrative)
Loans (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interest expenses amount | $ 200,000 | $ 100,000 | $ 53,009 |
Ms Xinyang Wang [Member] | |||
Percentage of ownership interest | 100% | ||
Outstanding principal amount | $ 2,200,000 | ||
Property owned valuation | 2,600,000 | ||
Mr Dehong Zhang [Member] | |||
Outstanding principal amount | 400,000 | ||
Loan amount | 300,000 | ||
Mr Dehong Zhang One [Member] | |||
Outstanding principal amount | 400,000 | ||
Loan amount | 700,000 | ||
Mr Dehong Zhang Two [Member] | |||
Loan amount | $ 700,000 |
Convertible promissory note a_3
Convertible promissory note and derivative liability (Details) - Convertible promissory note [Member] - $ / shares | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Exercise price | $ 0 | $ 0.45 |
Ordinary share price | $ 0 | $ 0.56 |
Term (in years) | 1 year | |
Volatility | 88.39% | |
Risk-free interest rate | 4.05% | |
Dividend yield | 0% | 0% |
Convertible promissory note a_4
Convertible promissory note and derivative liability (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Sep. 26, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative liability | $ 0 | $ 3,450,000 | |
Shares issued | 474,137 | ||
Redemption of convertible notes | $ 1,100,000 | ||
Convertible promissory note [Member] | |||
Issued Convertible promissory note | $ 6,420,000 | ||
Derivative liability | 3,870,000 | 0 | 3,450,000 |
Change in fair value of derivative liability | $ 900,000 | 420,000 | |
Debt discount | 3,870,000 | ||
Convertible promissory note | $ 64,200 | ||
Convertible into ordinary shares price | $ 0.025 | ||
Shares issued | 474,137 | ||
Description of effect of reverse stock split | After the effect of the reverse stock split adjustment, the floor price of the Note is assumed to be $0.96 | ||
Description of amortized | the Company determined that the floor price under the Note is assumed to be $0.12, which is calculated based on an 80% discount of the Nasdaq Minimum Price of $0.5785 on the date of the Company’s entry into the Agreement with the Investor | ||
Discount amount | $ 420,000 | ||
Amortization of debt issuance costs | $ 1,700,000 | 1,700,000 | |
Other expenses | 48,160 | 48,160 | |
Redemption of convertible notes | 1,100,000 | ||
Net of amortization | $ 5,800,000 | $ 2,200,000 | |
Conversion price | $ 0.12 |
Shareholders Equity (Details Na
Shareholders Equity (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||
May 31, 2022 | Feb. 28, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Jul. 22, 2021 | Jul. 21, 2021 | Sep. 12, 2020 | Sep. 11, 2020 | |
Common stock, shares authorized | 500,000,000 | 500,000,000 | |||||||
Remaining ordinary shares to be issued | 2,857 | ||||||||
Description of dividend shares | the Company consolidated its ordinary share at a ratio of one-for-twenty-five. On September 25, 2023, the Company consolidated its ordinary shares at a ratio of one-for-eight and, immediately following the share consolidation, the authorized share capital of the Company be increased from $2.5 million divided into 12.5 million ordinary shares of $0.20 par value each to $100 million divided into 500 million ordinary shares of $0.20 par value each, by creation of an additional 487.5 million ordinary shares of $0.20 par value each | ||||||||
Common stock, shares issued | 474,137 | ||||||||
Ordinary shares, par value (in dollars per share) | $ 0.38 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Statutory reserve | $ 700,000 | $ 1,200,000 | |||||||
Share-based compensation expense | $ 805,410 | ||||||||
Redemption of convertible notes | $ 1,100,000 | ||||||||
Shares issued under Share incentive plan | 1,168,000 | ||||||||
Percentage of shares issued under share incentive plan | 10% | ||||||||
Vesting percentage | 20% | ||||||||
Shares Vested under Share incentive plan | 596,600 | ||||||||
Remaining ordinary shares available Share incentive plan | 22,856 | 571,400 | |||||||
Statutory surplus reserve | 10% | ||||||||
Price per share | $ 0.38 | $ 0.20 | |||||||
Ordinary share issued | 30,000,000 | ||||||||
Proceeds from issuance of stock | $ 6,000,000 | $ 8,000,000 | |||||||
Share consolidation description | the issuance of 21,052,632 ordinary shares was retrospectively adjusted to 2,631,579 ordinary shares | the issuance of 30 million ordinary shares was first retrospectively adjusted to 1.2 million ordinary shares and then 150,000 ordinary shares | |||||||
Common stock, shares authorized | |||||||||
Common stock, shares authorized | 600,000,000 | 200,000,000 | 200,000,000 | 20,000,000 | |||||
Farmmi Inc. | |||||||||
Ownership in subsidiary | 50% |
Taxes (Details)
Taxes (Details) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Taxes | |||
Statutory PRC income tax rate | 25% | 25% | 25% |
Effect of income tax exemption (a) | (40.90%) | (50.80%) | (41.00%) |
Favorable tax rate impact (a) | (13.30%) | (14.80%) | (0.30%) |
Permanent difference | 0% | 0.10% | (8.20%) |
Changes of deferred tax assets valuation allowances | (5.80%) | 7.20% | 2% |
Non-PRC entities not subject to PRC income tax | 19.40% | 27.70% | 23.60% |
Total | 11% | (5.60%) | 1.10% |
Taxes (Details 1)
Taxes (Details 1) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Taxes | |||
Current income tax provision | $ 148,893 | $ 58,266 | $ 25,571 |
Deferred income tax provision | 164,600 | (176,633) | 0 |
Total | $ 313,493 | $ (118,367) | $ 25,571 |
Taxes (Details 2)
Taxes (Details 2) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Taxes | ||
Net operating loss carryforwards | $ 284,283 | $ 168,126 |
Allowance for inventory | 2,202 | 12,413 |
Allowance for doubtful accounts | 4,474 | 836 |
Valuation allowance | (290,959) | (18,168) |
Total | $ 0 | $ 163,207 |
Taxes (Details narrative)
Taxes (Details narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net income exempt from income tax | $ 390,000 | $ 28,000 | $ 40,200 |
Tax savings from tax break | $ 1,000,000 | $ 700,000 | $ 1,000,000 |
Per share effect of the tax exemption | $ 0.27 | $ 0.24 | $ 1.95 |
Cumulative net operating loss | $ 700,000 | ||
Valuation allowance | $ 181,375 | ||
Corporate income tax at a statutory rate | 25% | 25% | 25% |
Minimum | |||
Corporate income tax at a statutory rate | 5% | ||
Represents the amount of threshold taxable income for determining tax rate. | $ 1,000,000 | ||
Scenario of Taxable Income Between One Million And Three Million. | |||
Corporate income tax at a statutory rate | 10% | ||
Represents the amount of threshold taxable income for determining tax rate. | $ 3,000,000 | ||
Scenario of Taxable Income Between One Million And Three Million. | Maximum | |||
Represents the amount of threshold taxable income for determining tax rate. | $ 3,000,000 | ||
Scenario of Taxable Income Not More Than One Million. | |||
Corporate income tax at a statutory rate | 5% | ||
Represents the amount of threshold taxable income for determining tax rate. | $ 1,000,000 | ||
Scenario of Taxable Income Not More Than One Million. | Minimum | |||
Represents the amount of threshold taxable income for determining tax rate. | $ 1,000,000 |
Concentration of major custom_2
Concentration of major customers and suppliers (Details Narrative) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Major Supplier One [Member] | |||
Major purchase percent | 14% | 37% | |
Advances to suppliers | 46% | 35% | |
Major Supplier Two [Member] | |||
Major purchase percent | 23% | 20% | |
Advances to suppliers | 18% | 26% | |
Major Supplier Three [Member] | |||
Major purchase percent | 21% | 18% | |
Advances to suppliers | 13% | 15% | |
Major Supplier Four [Member] | |||
Major purchase percent | 16% | ||
Advances to suppliers | 15% | ||
Major Customer One [Member] | |||
Sale percent | 41% | 31% | 64% |
Accounts receivable percent | 87% | 65% | |
Major Customer Two [Member] | |||
Sale percent | 12% | 16% | 14% |
Accounts receivable percent | 12% | 34% |
Leases (Details)
Leases (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Supplemental balance sheet information related to operating leases | ||
Right-of-use assets under operating leases | $ 516,459 | $ 534,351 |
Operating lease liabilities, current | 69,062 | 46,543 |
Operating lease liabilities, non-current | 458,617 | 517,156 |
Total operating lease liabilities | $ 527,679 | $ 563,699 |
Leases (Details 1)
Leases (Details 1) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Maturities of operating lease liabilities | ||
2024 | $ 119,232 | |
2025 | 98,975 | |
2026 | 98,975 | |
2027 | 98,975 | |
2028 | 88,434 | |
Thereafter | 242,716 | |
Total future minimum lease payments | 747,307 | |
Less: Imputed interest | (219,628) | |
Total | $ 527,679 | $ 563,699 |
Leases (Details Narrative)
Leases (Details Narrative) - Restatement adjustment - ASU 2016-02 [Member] | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Remaining lease term | 7 years 1 month 6 days | 8 years 2 months 12 days |
Discount rate | 10.20% | 10% |
Segment reporting (Details)
Segment reporting (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 110,364,887 | $ 99,213,379 | $ 39,289,951 |
Shiitake [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 19,655,465 | 19,859,533 | 20,494,362 |
Mu Er [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 16,301,157 | 19,123,152 | 16,524,723 |
Cotton [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 5,547,927 | 47,950,345 | 0 |
Corn [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 27,430,969 | 10,778,197 | 1,796,006 |
Other products [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 112,853 | 1,502,152 | 474,860 |
Tapioca [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 39,977,734 | 0 | 0 |
Cornstarch [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,338,782 | $ 0 | $ 0 |
Related party transactions (Det
Related party transactions (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Due from related parties | $ 110,958 | $ 59,983 |
Zhejiang Yili Yuncang Holding Group Co Ltd [Member] | ||
Due from related parties | 103,417 | 0 |
Zhejiang Yili Yuncang Technology Group Co., Ltd [Member] | ||
Due from related parties | 0 | 29,055 |
FarmNet [Member] | ||
Due from related parties | 4,100 | 0 |
Epakia Canada Inc [Member] | ||
Due from related parties | 2,996 | 0 |
Shanghai Zhongjian Yiting Medical Health Technology Partnership [Member] | ||
Due from related parties | 308 | 30,928 |
Dehong Zhang [Member] | ||
Due from related parties | $ 137 | $ 0 |
Related party transactions (D_2
Related party transactions (Details 1) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Due to related parties | $ 33,814 | $ 948 |
Zhejiang Tantech Bamboo Technology Co., Limited [Member] | ||
Due to related parties | 24,496 | 948 |
Yefang Zhango [Member] | ||
Due to related parties | 9,150 | 0 |
Forasen Holdings Group Co., Ltd [Member] | ||
Due to related parties | $ 168 | $ 0 |
Related party transactions (D_3
Related party transactions (Details 2) | 12 Months Ended | |||
Sep. 30, 2023 CNY (¥) ft² | Sep. 30, 2023 USD ($) ft² | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Annual rent in USD | $ 66,116 | $ 88,847 | $ 86,556 | |
Zhejiang Tantech Bamboo Technology Co., Limited [Member] | Lease No 1 [Member] | ||||
Annual rent in USD | $ 23,940 | |||
Lease begin date | Aug. 01, 2021 | Aug. 01, 2021 | ||
Lease end date | Jul. 31, 2031 | Jul. 31, 2031 | ||
Leasing purpose | Factory building | Factory building | ||
Area (in square meters) | ft² | 1,180 | 1,180 | ||
Zhejiang Tantech Bamboo Technology Co., Limited [Member] | Lease No 2 [Member] | ||||
Annual rent in USD | $ 59,750 | |||
Lease begin date | Jul. 14, 2021 | Jul. 14, 2021 | ||
Lease end date | Jul. 13, 2031 | Jul. 13, 2031 | ||
Leasing purpose | Factory building | Factory building | ||
Area (in square meters) | ft² | 1,914 | 1,914 | ||
Zhejiang Tantech Bamboo Technology Co., Limited [Member] | Lease No 3 [Member] | ||||
Annual rent in USD | $ 18,691 | |||
Lease begin date | Mar. 01, 2023 | Mar. 01, 2023 | ||
Lease end date | Feb. 29, 2028 | Feb. 29, 2028 | ||
Leasing purpose | Office | Office | ||
Area (in square meters) | ft² | 479 | 479 | ||
Zhejiang Tantech Bamboo Technology Co., Limited [Member] | Operating Lease From Related Parties [Member] | ||||
Annual rent RMB | $ 722,120 | |||
Annual rent in USD | $ 102,381 | |||
Area (in square meters) | ft² | 3,573 | 3,573 | ||
Zhejiang Tantech Bamboo Technology Co., Limited [Member] | Lease No 1 [Member] | RMB [Member] | ||||
Annual rent RMB | ¥ | ¥ 168,854 | |||
Zhejiang Tantech Bamboo Technology Co., Limited [Member] | Lease No 2 [Member] | RMB [Member] | ||||
Annual rent RMB | ¥ | 421,431 | |||
Zhejiang Tantech Bamboo Technology Co., Limited [Member] | Lease No 3 [Member] | RMB [Member] | ||||
Annual rent RMB | ¥ | ¥ 131,835 | |||
Zhejiang Yili Yuncang Holding Group Co., Ltd [Member] | Lease No 1 [Member] | ||||
Annual rent RMB | $ 9,795 | |||
Annual rent in USD | $ 1,389 | |||
Lease begin date | Aug. 01, 2023 | Aug. 01, 2023 | ||
Lease end date | Jul. 31, 2025 | Jul. 31, 2025 | ||
Leasing purpose | Office | Office | ||
Area (in square meters) | ft² | 15 | 15 |
Related party transactions (D_4
Related party transactions (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue from Related Parties | $ 0 | $ 1,016 | $ 1,952 | |
Lease expenses | $ 66,116 | 88,847 | 86,556 | |
Hangzhou Forasen Technology Co., Ltd. [Member] | ||||
Payments for Rent | $ 41,639 | |||
Lease income | $ 14,262 | $ 40,026 | ||
Lease terminated date | February 14, 2022 |
Subsequent events (Details Narr
Subsequent events (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jan. 01, 2024 | Nov. 13, 2023 | Sep. 26, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Common stock share issued | 474,137 | |||||
Original principal amount | $ 6,440,000 | |||||
Proceeds from issuance of common stock | $ 6,000,000 | $ 7,930,000 | $ 6,000,000 | $ 126,029,588 | ||
Bears interest rate | 7% | 6.50% | ||||
Payment to related party | $ 0 | $ 54,600 | $ 2,147,199 | |||
Subsequent Event [Member] | ||||||
Common stock share issued | 200,000 | |||||
Common stock share issued for redemption of notes amount | $ 200,000 | |||||
November 13 2023 [Member] | Subsequent Event [Member] | ||||||
Payment to related party | $ 250,000 | |||||
Conversion Price per shares | $ 1 |
Condensed financial informati_3
Condensed financial information of the parent company Balance Sheets (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Other receivables | $ 0 | $ 7,440,705 |
Total current assets | 158,171,175 | 153,254,380 |
Net assets | 174,800,086 | 163,782,853 |
Derivative liability | 0 | 3,450,000 |
Total Liabilities | 12,824,160 | 9,098,762 |
Ordinary share, $0.20 par value, 500 million shares authorized, 6,094,078 and 2,988,835 shares issued and outstanding at September 30, 2023 and 2022, respectively | 1,218,816 | 597,768 |
Additional paid-in capital | 160,571,517 | 152,162,565 |
Retained earnings | 16,905,488 | 14,903,491 |
Total shareholders' equity | 161,975,926 | 154,684,091 |
Total liabilities and shareholders' equity | 174,800,086 | 163,782,853 |
FAMI | ||
Total current assets | 151,785,250 | 144,606,348 |
Net assets | 151,785,250 | 144,606,348 |
Total Liabilities | 6,010,348 | 5,683,459 |
Total shareholders' equity | 145,774,902 | 138,922,889 |
FAMI | Reportable legal entity | ||
Cash | 84 | 4,057,179 |
Other receivables | 103,760 | 103,858 |
Total current assets | 103,844 | 4,161,037 |
Investment in subsidiaries | 167,664,201 | 156,151,565 |
Net assets | 167,768,045 | 160,312,602 |
Interest payable | 3,377 | 0 |
Convertible promissory notes | 5,788,742 | 2,178,511 |
Derivative liability | 0 | 3,450,000 |
Total Liabilities | 5,792,119 | 5,628,511 |
Ordinary share, $0.20 par value, 500 million shares authorized, 6,094,078 and 2,988,835 shares issued and outstanding at September 30, 2023 and 2022, respectively | 1,218,816 | 597,768 |
Additional paid-in capital | 160,571,517 | 152,162,565 |
Retained earnings | 185,593 | 1,923,758 |
Total shareholders' equity | 161,975,926 | 154,684,091 |
Total liabilities and shareholders' equity | $ 167,768,045 | $ 160,312,602 |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company Parentheticals (Details) - $ / shares | Sep. 30, 2023 | Sep. 30, 2022 |
Ordinary share, par value | $ 0.20 | $ 0.20 |
Ordinary share, shares authorized | 500,000,000 | 500,000,000 |
Ordinary share, shares, issued | 6,094,078 | 2,988,835 |
Ordinary share, shares, outstanding | 6,094,078 | 2,988,835 |
FAMI | Reportable legal entity | ||
Ordinary share, par value | $ 0.20 | $ 0.20 |
Ordinary share, shares authorized | 500,000,000 | 500,000,000 |
Ordinary share, shares, issued | 6,094,078 | 2,988,835 |
Ordinary share, shares, outstanding | 6,094,078 | 2,988,835 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company (Details 1) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
General and administrative expenses | $ (2,132,095) | $ (4,133,178) | $ (2,838,790) |
Comprehensive income attributable to the Company | 2,543,813 | 2,223,979 | 2,356,438 |
FAMI | Reportable legal entity | |||
General and administrative expenses | (913,948) | (2,961,849) | (2,031,506) |
Change in Fair value of derivative liability | 873,767 | 419,649 | 0 |
Interest expenses | (445,766) | 0 | 0 |
Amortization of debt issuance costs | (1,691,609) | (48,160) | 0 |
Other expenses | (432) | (3,024) | (5,672) |
Loss from operations | (2,177,988) | (2,593,384) | (2,037,178) |
Equity in income of subsidiaries and VIE | 4,721,801 | 4,817,363 | 4,395,592 |
Comprehensive income attributable to the Company | $ 2,543,813 | $ 2,223,979 | $ 2,358,414 |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company (Details 2) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net income (loss) | $ 2,543,813 | $ 2,223,979 | $ 2,356,438 |
Amortization of debt issuance costs | 1,691,609 | 48,160 | 0 |
Share-based compensation | 0 | 2,007,328 | 1,260,674 |
Other current assets | (222,440) | (49,765) | (258,117) |
Other current liabilities | (232,463) | 795,434 | (559,915) |
Net cash used in operating activities | (75,754,162) | 20,635,488 | (52,907,013) |
Acquisition of subsidiaries | 0 | (1,521,422) | 0 |
Net cash used in investing activities | 35,896,193 | (41,991,079) | (12,258,220) |
Net proceeds from issuance of convertible promissory notes | 0 | 6,000,000 | 0 |
Proceeds from advances from related parties | 30,872 | 0 | 0 |
Net cash provided by financing activities | 11,017,942 | 11,634,868 | 122,412,800 |
Net increase (decrease) in cash and restricted cash | (28,377,766) | (18,084,403) | 57,097,363 |
Cash, beginning of year | 41,167,501 | 59,251,904 | 2,165,151 |
Cash end of year | 12,789,735 | 41,167,501 | 59,251,904 |
FAMI | Reportable legal entity | |||
Net income (loss) | 2,543,813 | 2,223,979 | 2,358,414 |
Equity in earnings of subsidiary | (4,721,801) | (4,817,363) | (4,395,592) |
Amortization of debt issuance costs | 1,691,609 | 48,160 | 0 |
Change in fair value of derivative liability | (873,767) | (419,649) | 0 |
Share-based compensation | 0 | 2,007,328 | 1,260,674 |
Other current assets | 98 | 21,223 | (125,081) |
Other current liabilities | (50,869) | 54,246 | (40,000) |
Net cash used in operating activities | (1,410,917) | (882,076) | (941,585) |
Acquisition of subsidiaries | (10,576,178) | (7,529,060) | (122,726,999) |
Net cash used in investing activities | (10,576,178) | (7,529,060) | (122,726,999) |
Net proceeds from share issuance | 7,930,000 | 6,000,000 | 126,029,588 |
Net proceeds from issuance of convertible promissory notes | 0 | 6,000,000 | 0 |
Proceeds from advances from related parties | 0 | 0 | 298,297 |
Repayment of advances from related parties | 0 | (54,600) | (2,138,508) |
Net cash provided by financing activities | 7,930,000 | 11,945,400 | 124,189,377 |
Net increase (decrease) in cash and restricted cash | (4,057,095) | 3,534,264 | 520,793 |
Cash, beginning of year | 4,057,179 | 522,915 | 2,122 |
Cash end of year | $ 84 | $ 4,057,179 | $ 522,915 |
Condensed Financial Informati_7
Condensed Financial Information of the Parent Company (Details Narrative) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Ordinary share, par value | $ 0.20 | $ 0.20 |
Ordinary share, shares authorized | 500,000,000 | 500,000,000 |
Ordinary share, issued | 6,094,078 | 2,988,835 |
Ordinary share, issued, value | $ 1,218,816 | $ 597,768 |
Additional paid-in capital | $ 160,571,517 | $ 152,162,565 |
FAMI | Reportable legal entity | ||
Ordinary share, par value | $ 0.20 | $ 0.20 |
Ordinary share, shares authorized | 500,000,000 | 500,000,000 |
Ordinary share, issued | 6,094,078 | 2,988,835 |
Ordinary share, issued, value | $ 1,218,816 | $ 597,768 |
Additional paid-in capital | $ 160,571,517 | $ 152,162,565 |
Minimum | ||
Ordinary share, shares authorized | 2,500,000 | |
Maximum | ||
Ordinary share, shares authorized | 12,500,000 |