Document And Entity Information
Document And Entity Information - shares | 12 Months Ended | |
Sep. 30, 2021 | Jan. 26, 2022 | |
Document Information Line Items | ||
Entity Registrant Name | EZGO Technologies Ltd. | |
Trading Symbol | EZGO | |
Document Type | 20-F/A | |
Current Fiscal Year End Date | --09-30 | |
Entity Common Stock, Shares Outstanding | 13,626,891 | |
Amendment Flag | true | |
Amendment Description | This Amendment No. 2 to the Annual Report on Form 20-F (this “Amendment”) amends the Annual Report on Form 20-F of EZGO Technologies Ltd. (the “Company,” “we,” and “our”) for the year ended September 30, 2021, which was originally filed with the U.S. Securities and Exchange Commission on January 27, 2022 (the “Original Filing”), and was amended by Amendment No. 1 to the Original Filing on June 24, 2022 (the “Amendment No. 1”).The Company is filing this Amendment for the purpose of disclosing certain legal and operational risks and potential impact on the Company associated with having substantially all of its operations conducted by its operating entities in China, additional legal, regulatory and enforcement risks that may apply to investments in the Company and controls and procedures as required by Item 15(b)(3) of Form 20-F. In addition, pursuant to Rule 12b-15 under the Exchange Act, the Company is filing the certifications required under the Sarbanes-Oxley Act of 2002.Except as described above or as otherwise expressly provided by the terms of this Amendment, no other changes have been made to the Original Filing and the Amendment No. 1. Except as otherwise indicated herein, this Amendment continues to speak as of the date of the Original Filing and the Amendment No. 1, as applicable, and the Company has not updated the disclosures contained therein to reflect any events that occurred subsequent to the date of the Original Filing. | |
Entity Central Index Key | 0001806904 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | FY | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Entity File Number | 001-39833 | |
Entity Incorporation, State or Country Code | D8 | |
Entity Address, Address Line One | Building #A, Floor 2, Changzhou Institute of Dalian University of Technology | |
Entity Address, Address Line Two | Science and Education Town | |
Entity Address, Address Line Three | Wujin District | |
Entity Address, City or Town | Changzhou City Jiangsu | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 213164 | |
Title of 12(b) Security | Ordinary shares, par value US$0.001 per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Document Accounting Standard | U.S. GAAP | |
Business Contact | ||
Document Information Line Items | ||
Entity Address, Address Line One | Building #A, Floor 2, Changzhou Institute of Dalian University of Technology | |
Entity Address, Address Line Two | Science and Education Town | |
Entity Address, Address Line Three | Wujin District | |
Entity Address, City or Town | Changzhou City Jiangsu | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 213164 | |
Contact Personnel Name | Jianhui Ye | |
City Area Code | (86) | |
Local Phone Number | 0519-83683805 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 4,774,531 | $ 322,598 |
Restricted cash | 1,115,354 | 17,932 |
Short-term investments | 2,387,003 | 2,209,261 |
Accounts receivable, net | 6,847,608 | 6,325,733 |
Notes receivable | 1,664,310 | |
Inventories, net | 924,342 | 867,752 |
Advances to suppliers, net | 7,404,538 | 2,700,383 |
Amount due from related parties, current | 3,524,635 | 577,035 |
Prepaid expenses and other current assets, net | 609,602 | 881,073 |
Current assets of discontinued operation | 91,997 | 750,784 |
Total current assets | 27,679,610 | 16,316,861 |
Property, plants and equipment, net | 8,746,386 | 2,369,891 |
Land use right | 4,510,849 | |
Amount due from related parties, noncurrent | 310,395 | 294,568 |
Long-term investments | 132,621 | |
Deferred tax assets, net | 585,428 | 97,324 |
Non-current assets of discontinued operation | 46,381 | 739,154 |
Total assets | 42,011,670 | 19,817,798 |
Current liabilities: | ||
Short-term borrowings | 310,395 | 299,315 |
Accounts payable | 650,693 | 298,060 |
Accrued expenses and other payables | 7,142,630 | 3,753,817 |
Advances from customers | 94,899 | 154,554 |
Income tax payable | 395,483 | 292,940 |
Amount due to related parties | 71,849 | 754,283 |
Current liabilities of discontinued operation | 809,221 | 1,119,684 |
Total current liabilities | 9,475,170 | 6,672,653 |
Total liabilities | 9,475,170 | 6,672,653 |
Commitments and contingencies | ||
Equity | ||
Preferred shares | ||
Ordinary shares (par value of $0.001 per share; 100,000,000 shares authorized as of September 30, 2020 and 2021; 7,800,000 and 13,626,602 shares issued and outstanding as of September 30, 2020 and 2021, respectively) | 13,627 | 7,800 |
Subscription receivable | (7,800) | (7,800) |
Receivables from a shareholder | (3,152,179) | (4,737,521) |
Additional paid-in capital | 32,260,048 | 12,078,058 |
Statutory reserve | 233,413 | 212,842 |
Retained earnings and (deficit) | (1,423,614) | 1,575,630 |
Accumulated other comprehensive income (loss) | 594,507 | (259,547) |
Total EZGO Technologies Ltd.’s shareholders’ equity | 28,518,002 | 8,869,462 |
Non-controlling interests | 4,018,498 | 4,275,683 |
Total equity | 32,536,500 | 13,145,145 |
Total liabilities and equity | $ 42,011,670 | $ 19,817,798 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2021 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 |
Ordinary shares, shares issued | 13,626,602 | 7,800,000 |
Ordinary shares, shares outstanding | 13,626,602 | 7,800,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Income Statement [Abstract] | ||||
Net revenues | $ 23,422,006 | $ 15,243,282 | $ 1,371,201 | |
Cost of revenues | (23,039,528) | (13,704,248) | (246,736) | |
Gross profit | 382,478 | 1,539,034 | 1,124,465 | |
Operating expenses: | ||||
Selling and marketing expenses | (1,558,719) | (385,722) | (28,995) | |
General and administrative expenses | (2,701,178) | (1,081,346) | (319,607) | |
Total operating expenses | (4,259,897) | (1,467,068) | (348,602) | |
Income (loss) from operations | (3,877,419) | 71,966 | 775,863 | |
Other income (expenses): | ||||
Interest expense, net | (60,756) | (14,803) | (9,712) | |
Other income, net | 141,530 | 393,198 | 274,912 | |
Total other income, net | 80,774 | 378,395 | 265,200 | |
Income (loss) from continuing operations before income tax expense | (3,796,645) | 450,361 | 1,041,063 | |
Income tax (expense) benefit | 419,405 | (116,063) | (273,927) | |
Net income (loss) from continuing operations | (3,377,240) | 334,298 | 767,136 | |
Income (loss) from discontinued operation, net of tax | (36,404) | (57,376) | 1,424,301 | |
Net income (loss) | (3,413,644) | 276,922 | 2,191,437 | |
Net income (loss) from continuing operations | (3,377,240) | 334,298 | 767,136 | |
Less: Net income (loss) attributable to non-controlling interests from continuing operations | (434,971) | 129,748 | 403,334 | |
Net income (loss) attributable to EZGO Technologies Ltd.’s shareholders from continuing operations | (2,942,269) | 204,550 | 363,802 | |
Income (loss) from discontinued operation, net of tax | (36,404) | (57,376) | 1,424,301 | |
Less: Net income attributable to non-controlling interests from discontinued operation | 49,980 | |||
Net income (loss) attributable to EZGO Technologies Ltd.’s shareholders from discontinued operation | (36,404) | (57,376) | 1,374,321 | |
Net income (loss) attributable to EZGO Technologies Ltd.’s shareholders | $ (2,978,673) | $ 147,174 | $ 1,738,123 | |
Net income (loss) from continuing operations per ordinary share: | ||||
Basic and diluted (in Dollars per share) | $ (0.27) | $ 0.03 | $ 0.05 | |
Net income (loss) from discontinued operation per ordinary share: | ||||
Basic and diluted (in Dollars per share) | 0 | (0.01) | 0.18 | [1] |
Net income (loss) per ordinary share: | ||||
Basic and diluted (in Dollars per share) | $ (0.27) | $ 0.02 | $ 0.23 | [1] |
Weighted average shares outstanding | ||||
Basic and diluted (in Shares) | 10,735,606 | 7,800,000 | 7,800,000 | [1] |
[1]The shares and per share information are presented on a retroactive basis to reflect share reorganization by way of a sub-division and surrender of shares on September 8, 2020 (Note 15). |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parentheticals) - $ / shares | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | |||
Net income (loss) from continuing operations per ordinary share, Basic and diluted | $ (0.27) | $ 0.03 | $ 0.05 |
Net income (loss) from discontinued operation per ordinary share, Basic and diluted | 0 | (0.01) | 0.18 |
Net income (loss) per ordinary share, Basic and diluted | $ (0.27) | $ 0.02 | $ 0.23 |
Weighted average shares outstanding, Basic and diluted (in Shares) | 10,735,606 | 7,800,000 | 7,800,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Income (loss) from continuing operations before non-controlling interests | $ (3,377,240) | $ 334,298 | $ 767,136 |
Income (loss) from discontinued operation, net of tax | (36,404) | (57,376) | 1,424,301 |
Net income (loss) | (3,413,644) | 276,922 | 2,191,437 |
Other comprehensive (loss) income | |||
Foreign currency translation adjustment | 973,379 | 438,839 | (236,566) |
Unrealized gain on investments in available-for-sale debt investments | 58,461 | ||
Comprehensive income (loss) | (2,381,804) | 715,761 | 1,954,871 |
Less: Comprehensive income (loss) attributable to non-controlling interests | (257,185) | 171,477 | 409,298 |
Comprehensive income (loss) attributable to EZGO Technologies Ltd.’s shareholders | $ (2,124,619) | $ 544,284 | $ 1,545,573 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Preferred shares | Ordinary shares | Subscription receivable | Receivables from a shareholder | Additional paid in capital | Statutory reserve | Retained earnings (deficit) | Accumulated other comprehensive income (loss) | Total shareholders' equity | Non - controlling interest | Total | |
Balance at Sep. 30, 2018 | $ 7,800 | $ (7,800) | $ (3,602,677) | $ 7,816,422 | $ (96,825) | $ (464,107) | $ 3,652,813 | $ 2,966,167 | $ 6,618,980 | |||
Balance (in Shares) at Sep. 30, 2018 | 7,800,000 | [1] | ||||||||||
Capital contribution | 4,261,636 | 4,261,636 | 4,261,636 | |||||||||
Capital contribution (in Shares) | ||||||||||||
Non-controlling interest contribution | 728,741 | 728,741 | ||||||||||
Appropriation of statutory reserve | 187,973 | (187,973) | ||||||||||
Net income (loss) | 1,738,123 | 1,738,123 | 453,314 | 2,191,437 | ||||||||
Collection of receivable from a shareholder | (1,233,243) | (1,233,243) | (1,233,243) | |||||||||
Collection of receivable from a shareholder (in Shares) | ||||||||||||
Foreign currency translation adjustment | (192,550) | (192,550) | (44,016) | (236,566) | ||||||||
Balance at Sep. 30, 2019 | $ 7,800 | (7,800) | (4,835,920) | 12,078,058 | 187,973 | 1,453,325 | (656,657) | 8,226,779 | 4,104,206 | 12,330,985 | ||
Balance (in Shares) at Sep. 30, 2019 | 7,800,000 | [1] | ||||||||||
Capital contribution (in Shares) | ||||||||||||
Appropriation of statutory reserve | 24,869 | (24,869) | ||||||||||
Net income (loss) | 147,174 | 147,174 | 129,748 | 276,922 | ||||||||
Collection of receivable from a shareholder | 98,399 | 98,399 | 98,399 | |||||||||
Collection of receivable from a shareholder (in Shares) | ||||||||||||
Foreign currency translation adjustment | 397,110 | 397,110 | 41,729 | 438,839 | ||||||||
Balance at Sep. 30, 2020 | $ 7,800 | (7,800) | (4,737,521) | 12,078,058 | 212,842 | 1,575,630 | (259,547) | 8,869,462 | 4,275,683 | 13,145,145 | ||
Balance (in Shares) at Sep. 30, 2020 | 7,800,000 | |||||||||||
Issued shares of ordinary shares, net of offering cost | $ 5,827 | 20,181,990 | 20,187,817 | 20,187,817 | ||||||||
Issued shares of ordinary shares, net of offering cost (in Shares) | 5,826,891 | |||||||||||
Change in un realized fair value gain on investments | 58,461 | 58,461 | 58,461 | |||||||||
Appropriation of statutory reserve | 20,571 | (20,571) | ||||||||||
Net income (loss) | (2,978,673) | (2,978,673) | (434,971) | (3,413,644) | ||||||||
Collection of receivable from a shareholder | 1,585,342 | 1,585,342 | 1,585,342 | |||||||||
Foreign currency translation adjustment | 795,593 | 795,593 | 177,786 | 973,379 | ||||||||
Balance at Sep. 30, 2021 | $ 13,627 | $ (7,800) | $ (3,152,179) | $ 32,260,048 | $ 233,413 | $ (1,423,614) | $ 594,507 | $ 28,518,002 | $ 4,018,498 | $ 32,536,500 | ||
Balance (in Shares) at Sep. 30, 2021 | 13,626,891 | |||||||||||
[1]The shares and per share information are presented on a retroactive basis to reflect share reorganization by way of a sub-division and surrender of shares on September 8, 2020 (Note 15). |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) from continuing operations | $ (3,377,240) | $ 334,298 | $ 767,136 |
Net income (loss) from discontinued operation | (36,404) | (57,376) | 1,424,301 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Allowance for doubtful accounts | 35,323 | 83,370 | |
Reserve for inventories | 114,964 | ||
Depreciation and amortization | 469,848 | 85,680 | 3,602 |
(Gain) loss from disposal of property, plants and equipment | 14,764 | (143,857) | |
Deferred tax expenses (benefit) | (478,141) | (63,392) | 147,660 |
Changes in assets and liabilities | |||
Accounts receivable | (180,212) | (6,093,585) | 4,092,954 |
Notes receivable | 1,736,538 | (1,612,995) | |
Inventories | (124,833) | 1,568,669 | (450,926) |
Advances to suppliers | (4,514,366) | 4,310,499 | (7,105,732) |
Prepaid expenses and other current assets | (848,518) | 537,771 | 2,289,075 |
Amount due from related parties | (3,062,904) | 1,839,439 | (4,971,495) |
Accounts payable | 333,318 | 263,957 | (404,654) |
Advances from customers | (67,293) | 37,909 | 53,467 |
Accrued expenses and other payables | 3,026,677 | 2,510,145 | (2,538,098) |
Income tax payable | 85,952 | 142,153 | 138,888 |
Net cash provided by (used in) operating activities, continuing operations | (6,871,446) | 3,895,871 | (8,038,610) |
Net cash provided by (used in) operating activities, discontinued operation | 615,011 | 128,898 | 5,336,443 |
Total cash provided by (used in) operating activities | (6,256,435) | 4,024,769 | (2,702,167) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property, plants and equipment | (6,723,468) | (2,344,667) | (1,255,353) |
Purchase of land use right | (4,497,426) | ||
Purchase of short-term investments | (2,141,144) | ||
Purchase of long-term investments | (131,321) | ||
Proceed from disposal of property, plants and equipment | 453,652 | 206,355 | |
Interest-free loan to related parties | (537,866) | (1,042,024) | (101,896) |
Collection of loan to related parties | 1,042,024 | 101,896 | |
Net cash used in investing activities, continuing operations | (11,436,429) | (4,485,811) | (1,048,998) |
Net cash provided by (used in) investing activities, discontinued operation | 399,175 | 1,135,964 | (873,328) |
Total cash used in investing activities | (11,037,254) | (3,349,847) | (1,922,326) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from short-term borrowings | 307,352 | 294,568 | 41,002 |
Repayments of short-term borrowings | (312,305) | (22,985) | (14,082) |
Proceeds from interest-free loan from a related party | 4,374,249 | ||
Repayment of interest-free loan to a related party | (4,289,426) | ||
Interest-free loan to a shareholder | (377,634) | (1,857,441) | |
Collection of loan from a shareholder | 1,821,847 | 391,116 | 683,880 |
Cash receipts from equity issuance, net of issuance cost | 20,947,182 | ||
Capital contribution | 4,261,636 | ||
Contribution from non-controlling interests | 728,741 | ||
Net cash provided by (used in) financing activities, continuing operations | 22,764,076 | (4,004,361) | 8,217,985 |
Total cash provided by (used in) financing activities | 22,764,076 | (4,004,361) | 8,217,985 |
Effect of exchange rate changes | 78,968 | 36,324 | 12,778 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 5,549,355 | (3,293,115) | 3,606,270 |
Cash, cash equivalents and restricted cash, at beginning of fiscal year | 340,530 | 3,633,645 | 27,375 |
Cash, cash equivalents and restricted cash, at end of fiscal year | 5,889,885 | 340,530 | 3,633,645 |
Reconciliation of cash, cash equivalents, and restricted cash to the Consolidated Balance Sheets | |||
Cash and cash equivalents | 4,774,531 | 322,598 | 3,633,645 |
Restricted cash | 1,115,354 | 17,932 | |
Total cash, cash equivalents, and restricted cash | 5,889,885 | 340,530 | 3,633,645 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Income tax paid | 6,523 | 159 | |
Interests paid | 12,107 | 4,702 | 19,180 |
NON-CASH ACTIVITIES: | |||
Settlement of prepayments to a related party with inventories | 2,428,036 | ||
Settlement of other receivables with receivable from a shareholder | $ 59,682 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES EZGO Technologies Ltd. (“EZGO” or the “Company”), is a holding company incorporated under the laws of the British Virgin Islands (“BVI”) on January 24, 2019. The Company commenced operations through its variable interest entity (“VIE”) and VIE’s subsidiaries in the People’s Republic of China (“PRC”). The Company is mainly engaged in sales of battery packs, battery cells, as well as electric bicycles (“e-bicycle”) and battery cell trading in PRC. The consolidated financial statements reflect the activities of EZGO and each of the following entities: Name Date of Place of Percentage of Principal Activities Wholly owned subsidiaries China EZGO Group Ltd. (formerly known as Hong Kong JKC Group Co., Ltd., “EZGO HK”) February 13, 2019 HK 100 % Investment holding company Changzhou Langyi Electronic Technologies Co., Ltd. August 6, 2021 PRC 100 % WFOE Changzhou EZGO Enterprise Management Co., Ltd. (formerly known as Changzhou Jiekai Enterprise Management Co., Ltd., Wholly Foreign-owned Enterprise, “WFOE” or “Changzhou EZGO”) June 12, 2019 PRC 100 % WFOE, a holding company VIE and subsidiaries of VIE Jiangsu EZGO Electronic Technologies Co., Ltd. (formerly known as Jiangsu Baozhe Electric Technologies, Co., Ltd., “Jiangsu EZGO”) July 30, 2019 PRC VIE Holding company Changzhou Hengmao Power Battery Technology Co., Ltd. (“Hengmao”) May 5, 2014 PRC 80.87 % Sales of battery packs, battery cells, as well as e-bicycles, battery cell trading, and battery and e-bicycle rental services provider Changzhou Yizhiying IoT Technologies Co., Ltd. (“Yizhiying”) August 21, 2018 PRC 100 % Development, operation and maintenance of software related to e-bicycle and battery rental services Jiangsu Cenbird E-Motorcycle Technologies Co., Ltd. (“Cenbird E-Motorcycle”) May 7, 2018 PRC 51 % Development of sales channels and international market for sales of e-bicycles and electric motorcycle (“e-motorcycle”) Tianjin Dilang Technologies Co., Ltd. (“Dilang”) July 2, 2019 PRC 80 % Production and sales of e-bicycles Tianjin Dilang Import and Export Trading Co., Ltd. (“Dilang Trading”) June 18, 2021 PRC 80 % Import and Export trade of e-bicycles Tianjin Jiahao Bicycle Co., Ltd. (“Tianjin Jiahao”) June 28, 2021 PRC 100 % Production and sales of e-bicycles Reorganization EZGO and its wholly-owned subsidiary EZGO HK were established as the holding companies of Changzhou EZGO. The ultimate individual shareholders of and the ownership percentage in EZGO are the same with Jiangsu EZGO on November 8, 2019. On November 8, 2019, Changzhou EZGO entered into a series of contractual arrangements with Jiangsu EZGO and its equity holders, which allow EZGO to exercise effective control over Jiangsu EZGO and receive substantially all the economic benefits of Jiangsu EZGO. These contractual agreements include Proxy Agreement, Exclusive Call Option Agreement, Exclusive Management Consulting and Technical Service Agreement, Equity Pledge Agreement, Loan Agreement and Spousal Consent Letter (collectively “VIE Agreements”). As a result of these contractual arrangements, the Company is fully and exclusively responsible for the management of Jiangsu EZGO and its subsidiaries, assumes all of risk of losses of Jiangsu EZGO and its subsidiaries and has the exclusive right to exercise all voting rights of Jiangsu EZGO’s equity holders. Therefore, the Company is considered the primary beneficiary of Jiangsu EZGO and its subsidiaries and has consolidated the assets, liabilities, results of operations, and cash flows of Jiangsu EZGO and its subsidiaries. EZGO and Jiangsu EZGO are under common ownership before and after the reorganization, thus the consolidation of Jiangsu EZGO and its subsidiaries is accounted for in the manner consistent with a reorganization of entities under common control at carrying value. The consolidation of the Company has been prepared on the basis as if the reorganization had become effective as of the beginning of the first period presented in the consolidated financial statements. The VIE contractual arrangements Current PRC laws and regulations impose certain restrictions or prohibitions on foreign ownership of companies that engage in value-added telecommunication services, and certain other business. Changzhou EZGO is considered a foreign-invested enterprise. To comply with PRC laws and regulations, EZGO primarily conducts its business in China through Jiangsu EZGO and its subsidiaries, based on a series of contractual arrangements. The following is a summary of the contractual arrangements that provide EZGO with effective control of its VIE and VIE’s subsidiaries and that enables it to receive substantially all the economic benefits from their operations. Each of the VIE Agreements is described in detail below: Proxy Agreement Pursuant to the Proxy Agreement, dated November 8, 2019, among WFOE, Jiangsu EZGO and each of equity holders of Jiangsu EZGO, each of the equity holders irrevocably authorizes WFOE to exercise his or her rights as an equity holder of Jiangsu EZGO, including the right to attend equity holders’ meetings, to exercise voting rights and to transfer all or a part of his or her equity interests therein pursuant to the Exclusive Call Option Agreement. During the term of Proxy Agreement, Jiangsu EZGO and all its equity holders may not terminate the agreements except when this agreement or applicable PRC laws provide otherwise. Exclusive Call Option Agreement Pursuant to the Exclusive Call Option Agreement, dated November 8, 2019, among WFOE, Jiangsu EZGO and the equity holders of Jiangsu EZGO, each of the equity holders of Jiangsu EZGO has irrevocably granted WFOE an exclusive option to purchase, or to designate other persons to purchase, to the extent permitted by applicable PRC laws, rules and regulations, all of the equity interest and assets in Jiangsu EZGO from its equity holders. The equity holders of Jiangsu EZGO agree that, without the prior written consent of WFOE, they will not dispose of their equity interests in Jiangsu EZGO or create or allow any encumbrance on their equity interests. The purchase price for the equity interest is to be the minimum price permitted by applicable PRC laws, rules and regulations, or the amount that the equity holders actually pay to Jiangsu EZGO regarding the equity, whichever is lower. The purchase price for the assets is to be the minimum price permitted by applicable PRC laws, rules and regulations, or the net book value of the assets, whichever is lower. The Exclusive Call Option Agreement expires when all the equity interest or all the assets are transferred pursuant to the agreement. Exclusive Management Consulting and Technical Service Agreement Pursuant to the Exclusive Management Consulting and Technical Service Agreement, dated November 8, 2019, between WFOE and Jiangsu EZGO, Jiangsu EZGO agrees to engage WFOE as its exclusive provider of management consulting, technical support, intellectual property license and relevant services, including all services within Jiangsu EZGO’s business scope and decided by WFOE from time to time as necessary. Jiangsu EZGO shall pay to WFOE service fees within three months after each fiscal year end. The service fees should be 95% (or a percentage adjusted by WFOE in its sole discretion) of the net profit after the deficit of the prior fiscal year is covered and the statutory reserve is appropriated. WFOE exclusively owns any intellectual property arising from the performance of the Exclusive Management Consulting and Technical Service Agreement. The Exclusive Management Consulting and Technical Service Agreement is effective for twenty years unless earlier terminated as set forth in the agreement or other written agreements entered into by the parties thereto. The Exclusive Management Consulting and Technical Service Agreement shall be extended automatically by the expiry thereof, until WFOE’s business term or Jiangsu EZGO’s business term expires, unless otherwise notified by WFOE in writing. During the term of the Exclusive Management Consulting and Technical Service Agreement, Jiangsu EZGO may not terminate the agreements except in the case of WFOE’s gross negligence or fraud, or this agreement or laws provide otherwise. WFOE may terminate this agreement by 30-day written notice to Jiangsu EZGO at any time. Equity Pledge Agreement Pursuant to the Equity Pledge Agreement, dated November 8, 2019, among WFOE, Jiangsu EZGO and the equity holders of Jiangsu EZGO, the equity holders of Jiangsu EZGO have pledged the 100% equity interests in Jiangsu EZGO to WFOE to guarantee performance of all of his or her obligations under the Proxy Agreement, Exclusive Call Option Agreement and Exclusive Management Consulting and Technical Service Agreement. If any event of default as provided for therein occurs, WFOE, as the pledgee, will be entitled to dispose of the pledged equity interests according to applicable PRC laws. On November 28, 2019, WFOE, Jiangsu EZGO and all its equity holders have completed the registration of the equity pledge with the relevant office of State Administration for Market Regulation (“SAMR”) in accordance with the PRC Property Rights Law. Loan Agreement Pursuant to the Loan Agreement, dated November 8, 2019, WFOE agrees to provide Jiangsu EZGO with loans of different amounts at an annual interest rate of 24% according to Jiangsu EZGO’s needs from time to time. The term of each loan is 20 years, which can be extended with the written consent of both parties. During the term of the loan or the extended term of the loan, Jiangsu EZGO shall not repay in advance without the written consent of WFOE while in case of certain circumstances, Jiangsu EZGO must repay the loan in advance upon WFOE’s written request. Spousal Consent Letter The spouses of individual equity holders of Jiangsu EZGO have each signed Spousal Consent Letters. Under the Spousal Consent Letter, the signing spouse unconditionally and irrevocably has agreed to the execution by his or her spouse of the above-mentioned Equity Pledge Agreement, Exclusive Call Option Agreement and Proxy Agreement, and that his or her spouse may perform, amend or terminate such agreements without his or her consent. In addition, in the event that the spouse obtains any equity interest in Jiangsu EZGO held by his or her spouse for any reason, he or she agrees to be bound by and sign any legal documents substantially similar to the contractual arrangements entered into by his or her spouse, as may be amended from time to time. Risks in relation to the VIE structure On March 15, 2019, the National People’s Congress approved the Foreign Investment Law, or the FIL, which took effect on January 1, 2020. The FIL does not explicitly classify whether variable interest entities that are controlled through contractual arrangements would be deemed as foreign invested enterprises if they are ultimately “controlled” by foreign investors. Since the FIL is relatively new, uncertainties still exist in relation to its interpretation and implementation, and it is still unclear how the FIL would affect variable interest entity structure and business operation. EZGO believes that the contractual arrangements with its VIE and their respective equity holders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● revoke the business and operating licenses of the Company’s PRC subsidiary and VIE; ● discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiary and VIE; ● limit the Company’s business expansion in China by way of entering into contractual arrangements; ● impose fines or other requirements with which the Company’s PRC subsidiary and VIE may not be able to comply; ● require the Company or the Company’s PRC subsidiary and VIE to restructure the relevant ownership structure or operations; or ● restrict or prohibit the Company’s use of the proceeds of the additional public offering to finance the Company’s business and operations in PRC. Total assets and liabilities presented on the Company’s Consolidated Balance Sheets and revenue, expense, net income presented on Consolidated Statements of Income as well as the cash flows from operating, investing and financing activities presented on the Consolidated Statements of Cash Flows are substantially the financial position, result of operations and cash flows of the EZGO’s VIE and subsidiaries of VIE. As of September 30, 2020 and 2021, there were no pledge or collateralization of the VIE’s assets that can only be used to settle obligations of the VIE. The amount of the net assets of the VIE was $13,145,145 and $12,508,001 as of September 30, 2020 and 2021, respectively. The creditors of the VIE’s third party liabilities did not have recourse to the general credit of EZGO in normal course of business. The following financial information of the VIE and the wholly owned subsidiaries of VIE were included in the accompanying consolidated financial statements as of September 30, 2020 and 2021 and for the fiscal years ended September 30, 2019, 2020 and 2021: As of September 30, 2020 2021 Cash $ 322,598 $ 4,508,752 Restrict cash 17,932 15,354 Amount due from non-VIE - 1,914,828 Amount due from EZGO - 316,524 Current assets of discontinued operation 750,784 91,997 Total current asset 16,316,861 23,880,044 Non-current asset 3,500,937 14,332,061 Total assets 19,817,798 38,212,105 Amount due to non-VIE - 13,323,711 Amount due to EZGO - 3,017,337 Current liabilities of discontinued operation 1,119,684 809,221 Total current liability 6,672,653 25,704,104 Total liabilities $ 6,672,653 $ 25,704,104 For the fiscal years ended 2019 2020 2021 Revenues $ 1,371,201 $ 15,243,282 $ 19,628,860 Income (loss) from operations 775,863 71,966 (3,497,613 ) Other income (loss), net 265,200 378,395 (75,873 ) Net income (loss) from continuing operations 767,136 334,298 (2,677,940 ) Income (loss) from discontinued operation, net of tax 1,424,301 (57,376 ) (36,404 ) Net income (loss) 2,191,437 276,922 (2,714,344 ) Net income (loss) attributable to EZGO’s shareholders $ 1,738,123 $ 147,174 $ (2,279,373 ) Net cash (used in) provided by operating activities $ (2,702,167 ) $ 4,024,769 $ (1,101,659 ) Net cash used in investing activities (1,922,326 ) (3,349,847 ) (12,952,082 ) Net cash provided by (used in) financing activities 8,217,985 (4,004,361 ) 18,157,942 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of EZGO, its subsidiaries, its VIE and its VIE’s subsidiaries for which EZGO is the primary beneficiary. All inter-company transactions and balances have been eliminated upon consolidation. (b) Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period and accompanying notes, including allowance for doubtful accounts, the useful lives of property, plants and equipment, impairment of short-term investments and long-lived assets, valuation allowance for deferred tax assets and uncertain tax opinions. Actual results could differ from those estimates. (c) Comparability due to discontinued operation Certain accounts in the Consolidated Statements of Operations and Comprehensive Income (Loss) for the fiscal years ended September 30, 2019, 2020 and 2021, and balances in the Consolidated Balance Sheets as of September 30, 2020 and 2021, and cash flows in the Consolidated Statements of Cash Flows for the fiscal years ended September 30, 2019, 2020 and 2021, and related notes have been retrospectively adjusted to reflect the effect of discontinued operations. See Note 13 for details of discontinued operations. (d) Discontinued operation A discontinued operation may include a component of an entity or a group of components of an entity, or a business or nonprofit activity. A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operation if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when any of the following occurs: (1) the component of an entity or group of components of an entity meets the criteria to be classified as held for sale; (2) the component of an entity or group of components of an entity is disposed of by sale; (3) the component of an entity or group of components of an entity is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). For any component classified as held for sale or disposed of by sale or other than by sale that qualify for presentation as a discontinued operation in the period, the Company has reported the assets and liabilities of the discontinued operation as current asset of discontinued operation, and current liabilities of discontinued operation in the Consolidated Balance Sheets as of September 30, 2020 and 2021. The results of operations of discontinued operation for the years ended September 30, 2019, 2020 and 2021 have been reflected separately in the Consolidated Statements of Income as a single line item for all periods presented in accordance with U.S. GAAP. Cash flows from discontinued operation of the three categories for the years ended September 30, 2019, 2020, and 2021 were separately presented in the Consolidated Statements of Cash Flows for all periods presented in accordance with U.S. GAAP. (e) Fair value measurement The Company applies Accounting Standards Codification (“ASC”) ASC Topic 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. ASC Topic 820 specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is 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 identical or similar assets and liabilities in active markets or in inactive markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. The carrying amounts of the Company’s financial instruments approximate their fair values because of their short-term nature. The Company’s financial instruments include cash and cash equivalents, short-term investments, accounts receivable, amount due from related parties, amount due to related parties, short-term borrowings, accounts payable and advances from customers. (f) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, bank deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash, and have insignificant risk of changes in value related to changes in interest rates and have original maturities of three months or less when purchased. (g) Restricted cash Restricted cash represents bank deposits with designated use, which cannot be withdrawn without certain approval or notice. As of September 30, 2020 and 2021, the Company had restricted bank deposits of $17,932 and $1,115,354, respectively. The balance as of September 30, 2020 represented the restricted bank deposits in the bank account, which cannot be withdrawn or used without the bank’s approval. The balances as of September 30, 2021 mainly represented the restricted deposits in the escrow account set up by the Company with a third-party escrow agent in the United States. The Company funded such account with the public offering on the Nasdaq Capital Market (“Nasdaq”) that may be utilized to fund any bona fide indemnification claims. All fund cannot be withdrawn or used until the applicable period expires. (h) Short-term investments Short-term investments include wealth management product and convertible debt instrument, which are classified as available-for-sale debt investments in accordance with ASC topic 320 (“ASC 320”), Investments—Debt Securities. Short-term investments are measured at fair value and interest income is recognized in earnings. The unrealized gains or losses from the changes in fair values are reported net of tax in accumulated other comprehensive income until realized. The Company reviews available-for-sale debt investments for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Company considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Company considers, among other factors, general market conditions, expected future performance of the investees, the duration, and the extent to which the fair value of the investment is less than the cost, and the Company’s intent and ability to hold the investment. OTTI, if any, is recognized as loss in the Consolidated Statements of Income. For the years ended September 30, 2019, 2020 and 2021, the Company did not record any OTTI. (i) Accounts receivable, net Accounts receivable, net are stated at the original amount less an allowance for doubtful receivables, if any, based on a review of all outstanding amounts at period end. An allowance is also made when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. The Company analyzes the aging of the customer accounts, coverage of credit insurance, customer concentrations, customer credit-worthiness, historical and current economic trends and changes in its customer payment patterns when evaluating the adequacy of the allowance for doubtful accounts. For the years ended September 30, 2019, 2020 and 2021, the Company recorded bad debt expense $ nil (j) Inventories Inventories, primarily consisting of the raw materials purchased by the Company for battery packs assembling and e-bicycles production, and finished goods including battery packs and e-bicycles, are stated at the lower of cost or net realizable value. Cost of inventory is determined using weighted-average method. Where there is evidence that the value of inventories, in their disposal or in the ordinary course of business, will be less than cost, whether due to physical deterioration, obsolescence, changes in price levels, or other causes, the inventories are written down to net realizable value. The reserve recognized for the inventories for the years ended September 30, 2019, 2020 and 2021 was $ nil nil (k) Advances to suppliers, net Advances to suppliers refer to advances for purchase of materials or other service agreements, which are applied against accounts payable when the materials or services are received. The Company reviews a supplier’s credit history and background information before advancing a payment. If the financial condition of its suppliers were to deteriorate, resulting in an impairment of their ability to deliver goods or provide services, the Company would provide allowance for such amount in the period when it is considered impaired. For the years ended September 30, 2019, 2020 and 2021, the Company provided bad debt expense of $83,370, $ nil nil (l) property, plants and equipment, net Property, plants and equipment are stated at cost less accumulated depreciation and depreciated on a straight-line basis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its intended use. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income/loss in the year of disposition. Estimated useful lives are as follows: Estimated Useful Life Building 20 years Equipment for rental business 2.5-5 Years Production line for e-bicycles 5-10 Years Furniture, fixtures and office equipment 3-5 Years Vehicles 4-10 Years (m) Land use right Land use rights are recorded at cost less accumulated amortization. Amortization is provided on straight-line basis over the useful life of land use right. The land use right has a term of 36.5 years and will expire on December 4, 2057. (n) Impairment of long-lived assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its carrying amount. The Company did not record any impairment charge for the years ended September 30, 2019, 2020 and 2021. (o) Long term investment Equity investments without readily determinable fair values are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes in accordance with ASC topic 321, Investments – Equity Securities. (p) Value added tax EZGO’s China subsidiaries, VIE and VIE’s subsidiaries are subject to value-added tax (“VAT”) for providing services and sales of products. Revenue from providing services and sales of products is generally subject to VAT at applicable tax rates , and subsequently paid to PRC tax authorities after netting input VAT on purchases. The excess of output VAT over input VAT is reflected in accrued expenses and other payables. The Company reports revenue net of PRC’s VAT for all the periods presented in the Consolidated Statements of Operations. (q) Revenue recognition The Company adopted ASU 2014-09, , starting October 1, 2017 using the modified retrospective method for the revenue from sales of self-manufactured battery cell, battery pack and e-bicycles and battery cell trading. The Company applied ASC Topic 840, Leases, for the revenue from rentals of lithium batteries and e-bicycles. The core principle of ASC Topic 606 is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: Step 1: Identify the contract with the customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when the company satisfies a performance obligation Revenue recognition policies are discussed as follows: Revenue from sales of self-manufactured battery cell, battery pack and e-bicycles The Company sells products to different customers, primarily including sale of self-manufactured battery cells (see Note 13 Discontinued Operation), self-assembled battery packs and sale of e-bicycles. The Company presents the revenue generated from its sales of products on a gross basis as the Company is a principal. The revenue is recognized at a point in time when the Company satisfies the performance obligation by transferring promised product to a customer upon acceptance by customers. Revenue from battery cell trading Revenue from battery cell trading is recognized on a net basis as the Company arranges the provision of products through third parties and does not control the specified products provided by the third parties before that products are transferred to the customers, and therefore, the Company acts as an agent. The revenue is recognized at a point in time when the Company satisfies performance obligations by arranging the transfer of a promised product to a customer and measured at fixed consideration which is determined as the difference between the sales price that the Company expects to receive in exchange for arranging promised products to the customer and the settlement price with the third-party suppliers. Contract liabilities primarily consist of advances from customers, which comprises unamortized lithium batteries. As of September 30, 2020 and 2021, the Company recognized advances from customers amounted to $154,554 and $94,899, respectively. The revenue from sales of self-manufactured battery cells and lithium batteries and e-bicycles services via sublease and its own application named Yidianxing are revenue from the Company’s discontinued operation, and are represented separately in the Consolidated Statements of Income for the years ended September 30, 2019, 2020 and 2021 (see Note 13 Discontinued Operation). The following table identifies the disaggregation of the Company’s revenue from continuing operations for the years ended September 30, 2019, 2020 and 2021, respectively: For the years ended 2019 2020 2021 Revenues from continuing operations: Sales of battery packs and e-bicycles $ 171,464 $ 14,313,446 $ 22,520,903 Battery cell trading 1,186,185 - - Others 13,552 929,836 901,103 Net revenues $ 1,371,201 $ 15,243,282 $ 23,422,006 Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent revenue recognized for the amounts invoiced and/or prior to invoicing when the Company has satisfied its performance obligation and has unconditional right to the payment. The Company has no contract assets as of September 30, 2020 and 2021. The Company applied a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. The Company has no material incremental costs of obtaining contracts with customers that the Company expects the benefit of those costs to be longer than one year. (r) Cost of revenue Cost of revenue consists primarily of cost of products, labor cost, depreciation, maintenance, and other overhead expenses. (s) Income taxes The Company accounts for income taxes using the asset/liability method prescribed by ASC 740 Income Taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company’s operating subsidiaries in PRC are subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB100,000 ($14,138). In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. (t) Foreign currency translation The reporting currency of the Company is the U.S. dollar (“USD” or “$”). The functional currency of subsidiaries, VIE and VIE’s subsidiaries located in China is the Chinese Renminbi (“RMB”), the functional currency of subsidiaries located in Hong Kong is the U.S. dollar (“USD” or “$”). For the entities whose functional currency is the RMB, result of operations and cash flows are translated at average exchange rates during the period, assets, liabilities, and in equity are translated at the unified exchange rate at the end of the period, and except for equity items are translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments are reported as foreign currency translation adjustment and are shown as a separate component of other comprehensive loss in the Consolidated Statements of Comprehensive Income (loss). Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet date with any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Consolidated Balance Sheets amounts, with the exception of equity, on September 30, 2020 and 2021 were translated at RMB6.7896 to $1.00 and at RMB6.4434 to $1.00, respectively. Equity accounts were stated at their historical rates. The average translation rates applied to Consolidated Statements of Operations and Cash Flows for the fiscal years ended September 30, 2019, 2020 and 2021 were RMB6.8698 to $1.00, RMB7.0056 to $1.00 and RMB6.5072 to $1.00, respectively. (u) Non-controlling interest A non-controlling interest in a subsidiary of the Company represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity on the Consolidated Balance Sheets and net income and other comprehensive income attributable to non-controlling shareholders are presented as a separate component on the Consolidated Statements of Operations. (v) Segment reporting The Company has organized its operations into two operating segments. The segments reflect the way the Company evaluates its business performance and manages its operations by the Company’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Company’s CODM has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. The Company has determined that it operates in two operating segments: (1) Battery cells and packs segment, and (2) e-bicycles sales segment. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different technology and marketing strategies. As the Company’s long-lived assets are substantially all located in the PRC and all of the Company’s revenue and expense are derived from within the PRC, no geographical segments are presented. (w) Net income (loss) per ordinary share Basic income (loss) per ordinary share is computed by dividing net income (loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding for the period. Diluted income (loss) per share is calculated by dividing net income (loss) attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Potentially dilutive shares are excluded from the computation if their effect is anti-dilutive. (x) Comprehensive income (loss) Comprehensive income (loss) is comprised of the Company’s net income and other comprehensive income (loss). The components of other comprehensive (income) loss consist of foreign currency translation adjustments and unrealized gain on available for sale short term investments. (y) Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Legal costs incurred in connection with loss contingencies are expensed as incurred. (z) Recent Accounting Standards The Company is an “emerging growth company” (“EGC”) as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842). The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. In July 2018, ASU 2016-02 was updated with ASU 2018-11, Targeted Improvements to ASC Topic 842, which provides entities with relief from the costs of implementing certain aspects of the new leasing standard. Specifically, under the amendments in ASU 2018-11, (1) entities may elect not to recast the comparative periods presented when transitioning to ASC 842 and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. In November 2019, ASU 2019-10, Codification Improvements to ASC 842 modified the effective dates of all other entities. In June 2020, ASU 2020-05 defer the effective date for one year for entities in the “all other” category. For Early application of the guidance continues to be permitted. The Company is in the process of evaluating the effect of the adoption of this ASU. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses”, which will require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Subsequently, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, to clarify that receivables arising from operating leases are within the scope of lease accounting standards. Further, the FASB issued ASU No. 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11 and ASU 2020-02 to provide additional guidance on the credit losses standard. For The Company is in the process of evaluating the effect of the adoption of this ASU Other accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent standards that are not anticipated to have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows or disclosures. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Sep. 30, 2021 | |
Credit Loss, Additional Improvements [Abstract] | |
ACCOUNTS RECEIVABLE, NET | 3. ACCOUNTS RECEIVABLE, NET As of September 30, 2020 and 2021, accounts receivable and allowance for doubtful accounts consisted of the following: As of September 30, 2020 2021 Accounts receivable $ 6,347,184 $ 6,881,763 Less: allowance for doubtful accounts (21,451 ) (34,155 ) Accounts receivable, net $ 6,325,733 $ 6,847,608 |
Investments
Investments | 12 Months Ended |
Sep. 30, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
INVESTMENTS | 4. INVESTMENTS As of September 30, 2020 and 2021, investments consisted of the following: As of September 30, 2020 2021 Short-term investments: Wealth management product (1) $ 1,472,841 $ 1,611,015 Convertible debt instrument (2) 736,420 775,988 Total short- term investments $ 2,209,261 $ 2,387,003 Long-term investments - 132,621 Total investments $ 2,209,261 $ 2,519,624 (1) Wealth management product is deposits in a financial institution with variable interest rate and not-guaranteed principal. The wealth management product was bought on September 24, 2020, and carried at fair value. It had duration of 1.5 years, during which the Company could redeem the wealth management product at its discretion. For the fiscal years ended September 30, 2020 and 2021, there were no interest income or loss recognized in earnings. There were $ nil (2) Convertible debt instrument was issued by a private company and redeemable at the Company’s option. The convertible debt instrument is due on June 12, 2021, has annual interest rate of 6% and carried at fair value. For the fiscal years ended September 30, 2020 and 2021, there were $ nil |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 5. INVENTORIES As of September 30, 2020 and 2021, inventories consisted of the following: As of September 30, 2020 2021 Finished goods (1) $ 610,751 $ 635,851 Raw materials (2) 237,453 352,539 Others 19,548 52,054 Reserve - (116,102 ) Inventories $ 867,752 $ 924,342 (1) Finished goods includes battery packs and e-bicycles. (2) Raw materials mainly include battery cells purchased by the Company for battery packs assembling and e-bicycles production. |
Advances to Suppliers, Net
Advances to Suppliers, Net | 12 Months Ended |
Sep. 30, 2021 | |
Major Suppliers [Abstract] | |
ADVANCES TO SUPPLIERS, NET | 6. ADVANCES TO SUPPLIERS, NET As of September 30, 2020 and 2021, advances to suppliers and allowance for doubtful accounts consisted of the following: As of September 30, 2020 2021 Prepayment for purchase of e-bicycles materials $ 956,192 $ 4,094,894 Prepayment for purchase of battery packs 1,584,605 2,953,616 Prepayment for purchase of battery cells for trading business 84,354 - Prepayment for service fees related to e-bicycles manufacturing licenses 120,936 - Others 38,650 444,444 2,784,737 7,492,954 Less: allowance for doubtful accounts (84,354 ) (88,416 ) Advances to suppliers, net $ 2,700,383 $ 7,404,538 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets, Net | 12 Months Ended |
Sep. 30, 2021 | |
Other Income and Expenses [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET | 7. PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET As of September 30, 2020 and 2021, prepaid expenses and other current assets consisted of the following: As of September 30, 2020 2021 Prepaid construction fee (1) $ - $ 384,425 Prepaid exhibition fee - 80,796 Prepaid rental fee 53,784 74,288 Prepaid IPO related expense 759,365 - Receivable from disposal of a production line 14,394 - Others 67,924 70,093 Less: allowance for doubtful accounts (14,394 ) - Prepaid expenses and other current assets $ 881,073 $ 609,602 (1) The balance represented prepaid construction fee for plant maintenance and renovation. |
Propery, Plants and Equipment,
Propery, Plants and Equipment, Net | 12 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERY, PLANTS AND EQUIPMENT, NET | 8. PROPERY, PLANTS AND EQUIPMENT, NET As of September 30, 2020 and 2021, property, plants and equipment, net consisted of the following: As of September 30, 2020 2021 Building $ - $ 6,020,735 Equipment for rental business 1,312,816 1,401,580 Production line for e-bicycles 1,118,521 1,267,954 leasehold improvement - 541,096 Furniture, fixtures and office equipment 44,869 127,957 Vehicles 29,121 120,879 Property, plants and equipment 2,505,327 9,480,201 Less: accumulated depreciation (135,436 ) (733,815 ) Property, plants and equipment, net $ 2,369,891 $ 8,746,386 For the fiscal years ended September 30, 2019, 2020 and 2021, depreciation expense amounted to $3,602, $85,680 and $439,044, respectively. For the fiscal years ended September 30, 2019, 2020 and 2021, the Company disposed its property, plants and equipment, with proceeds of $206,355, $ nil nil |
Land Use Right
Land Use Right | 12 Months Ended |
Sep. 30, 2021 | |
Land Use Right [Abstract] | |
LAND USE RIGHT | 9. LAND USE RIGHT On March 12, 2021, Jiangsu EZGO entered into an Asset Purchase Arrangement Agreement with Benlin Huang, an individual, and Tianjin Jiahao, a non-affiliated third party, pursuant to which Jiangsu EZGO agreed to purchase certain land and plants of Tianjin Jiahao for the Company’s future production and business development. On April 2, 2021, Jiangsu EZGO received a written Notice of Assignment, pursuant to which Benlin Huang assigned and transferred all of his rights, titles, and obligations under the Asset Purchase Arrangement Agreement to Shanghai Mingli. On April 19, 2021, Jiangsu EZGO entered into a Shares Purchase Agreement with Shanghai Mingli and Tianjin Jiahao pursuant to which Jiangsu EZGO obtained the right to purchase 100% of the outstanding shares of Shanghai Mingli. On June 28, 2021, Jiangsu EZGO has completed the asset acquisition of Tianjin Jiahao with an aggregate consideration of approximately US$10.16 million, and Tianjin Jiahao became Jiangsu EZGO’s wholly owned subsidiary. For the recent five years, Tianjin Jiahao did not have employee or generate any revenue; and the assets of Tianjin Jiahao only consisted of buildings and land-used right, which was considered it inputs, thus, according to ASC 805-10-55-3A&4, Tianjin Jiahao was not a business. The acquisition of Tianjin Jianhao was accounted for as asset acquisition. The purchase price was allocated to the buildings and land use right based on their respective fair values. The land use right is in Tianjin city, Hebei province. The remaining land use right has a term of 36.5 years and will expire on December 4, 2057. For the year ended September 30, 2021, the Company recognized amortization expense of $ 30,804. The following table presents future amortization as of September 30, 2021: Years ending September 30, Amount 2022 $ 123,217 2023 123,217 2024 123,217 2025 123,217 2026 and thereafter 4,017,981 $ 4,510,849 |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 12 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER PAYABLES | 10 ACCRUED EXPENSES AND OTHER PAYABLES As of September 30, 2020 and 2021, accrued expenses and other payables consisted of the following: As of September 30, 2020 2021 Other taxes payable (1) $ 3,502,262 $ 6,559,454 Payroll payable 181,583 292,126 Others 69,972 291,050 Accrued expenses and other payables $ 3,753,817 $ 7,142,630 (1) The balance mainly represented the VAT payable of $3,124,232 and $ 5,875,913 as of September 30, 2020 and 2021, respectively. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS | 11. SHORT-TERM BORROWINGS As of September 30, 2020 and 2021, the borrowings consisted of the following: As of September 30, 2020 2021 Short-term borrowings $ 299,315 $ 310,395 On August 11, 2020, Yizhiying entered into a non-revolving loan facility of RMB2,000,000 ($294,568) with Bank of Jiangsu with annual interest rate of 4.35% and a term of 12 months, which was guaranteed by Jianhui Ye, the Chief Executive Officer and a significant shareholder of the Company. On August 12, 2021, Yizhiying entered into a new non-revolving loan facility of RMB2,000,000 ($310,395) with the same contract term of the expired loan facility. For the fiscal years ended September 30, 2019, 2020 and 2021, the Company recorded interest expenses of $19,180, $21,686, and $12,107, respectively. |
Related Party Transactions and
Related Party Transactions and Balances | 12 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS AND BALANCES | 12. RELATED PARTY TRANSACTIONS AND BALANCES The following is a list of related parties which the Company has transactions with during the fiscal years ended September 30, 2019, 2020 and 2021: Name Relationship (a) Henglong Chen A significant shareholder of the Company (b) Huiyan Xie General manager and non-controlling shareholder of Dilang (c) Huajian Xu A shareholder of the Company (d) Shuang Wu Chief Operating Officer and a significant shareholder of the Company (e) Yan Fang Non-controlling shareholder of Cenbird E-Motorcycle (f) Jianhui Ye Chief Executive Officer and a significant shareholder of the Company (g) Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd. Yan Fang, a non-controlling shareholder of Cenbird E-motorcycle, whose family member serves as director of Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd. (h) Jiangsu Xinzhongtian Suye Co., Ltd. Yuxing Liu, the spouse of Yan Fang, serves as the executive of Jiangsu Xinzhongtian Suye Co., Ltd. (i) Shenzhen Star Asset Management Co., Ltd. General Partner of Xinyu Star Assets Management No.1 Investing Partnership and Xinyu Star Assets Management No.2 Investing Partnership, which are two significant shareholders of the Company (j) Jiangsu Yimao Pure Electric Bus Co., Ltd. Hengwei Chen, a significant shareholder of the Company until September 2019, serves as director of Jiangsu Yimao Pure Electric Bus Co., Ltd. (k) Beijing Weiqi Technology Co., Ltd. Wholly owned by Huiyan Xie, the general manager and non-controlling shareholder of Dilang (l) Shenzhen Star Cycling Network Technology Co., Ltd. Equity investments without readily determinable fair value (m) Nanjing Mingfeng Technology Co.,Ltd Equity investments without readily determinable fair value Amount due from related parties As of September 30, 2020 and 2021, amount due from related parties, consisted of the following: As of September 30, 2020 2021 Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd. (g) (1) $ - $ 1,771,585 Jiangsu Xinzhongtian Suye Co., Ltd. (h) (1) 419,758 678,600 Shenzhen Star Cycling Network Technology Co., Ltd.(l) (2) - 310,395 Nanjing Mingfeng Technology Co.,Ltd.(m) (2) - 228,774 Huajian Xu (c) (3) 19,471 265,357 Shuang Wu (d) (3) - 163,448 Huiyan Xie (b) (3) - 71,636 Beijing Weiqi Technology Co., Ltd.(k) (4) 17,790 32,830 Yan Fang(e) (3) 981 - Jianhui Ye (f) (3) 119,035 2,010 Amount due from related parties-current $ 577,035 $ 3,524,635 Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd. (5) $ 294,568 $ 310,395 Amount due from related parties-non-current $ 294,568 $ 310,395 (1) The balance mainly represented the prepayments for purchasing e-bicycle gears and e-bicycles. (2) The balance mainly represented loans with annual interest rate of 5% to associates. (3) The balances mainly represented the advances made to the managements for the Company’s daily operational purposes. (4) The balance represented the receivable generated from the sales of e-bicycles. (5) The balance mainly represented the deposit for conducting original design manufacture (“ODM”) of e-bicycles and the deposit will be returned in one year after the termination of the contract or after the Company stops selling produced e-bicycles. Amount due to Related Parties As of September 30, 2020 and 2021, amount due to related parties consisted of the following: As of September 30, 2020 2021 Yan Fang(e) (1) $ - $ 70,840 Shenzhen Star Asset Management Co., Ltd. (i) (2) 957 1,009 Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd. (g) (2) 340,340 - Huajian Xu(c) (1) 287,270 - Shuang Wu(d) (1) 72,847 - Huiyan Xie(b) (1) 32,557 - Jianhui Ye (f) (1) 20,312 - Amount due to related parties $ 754,283 $ 71,849 (1) The balances mainly represented the expenses paid on behalf of the Company for IPO or daily operation. (2) The balances represented the payable for purchasing e-bicycles. Related party transactions For the fiscal years ended September 30, 2019, 2020 and 2021, the Company had the following material related party transactions: For the fiscal years ended Related Parties Nature 2019 2020 2021 Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd (g) Purchase of e-bicycles from a related party $ - $ (4,538,100 ) $ (6,048,053 ) Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd (g) Interest-free loan to a related party - 856,458 - Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd (g) Collection of loan to a related party - (856,458 ) - Jiangsu Xinzhongtian Suye Co., Ltd (h) Purchase of e-bicycles, gears and parts from a related party - (851,606 ) (915,213 ) Jiangsu Xinzhongtian Suye Co., Ltd (h) Rental fee and utility fee - (63,378 ) (146,607 ) Jiangsu Xinzhongtian Suye Co., Ltd (h) Interest-free loan to a related party - 185,566 - Jiangsu Xinzhongtian Suye Co., Ltd (h) Collection of loan to a related party - (186,993 ) - Shenzhen Star Cycling Network Technology Co., Ltd.(l) Loan to a related party - - 310,395 Nanjing Mingfeng Technology Co.,Ltd.(m) Loan to a related party - - 228,774 Jiangsu Yimao Pure Electric Bus Co., Ltd. (j) Purchase of battery cells for battery cell trading business (5,334,619 ) - - Jiangsu Yimao Pure Electric Bus Co., Ltd. (j) Purchase of raw materials and finished goods (2,428,036 ) - - Henglong Chen (a) Interest-free loan to a shareholder* 1,857,441 377,634 - Henglong Chen (a) Collection of loan from a shareholder * (683,880 ) (391,116 ) (1,821,847 ) Henglong Chen (a) Transfer of third-party loans to a related party* 59,682 - - Huiyan Xie Interest-free loan to a related party 101,896 - - Huiyan Xie Collection of loan from a related party (101,896 ) - - Shenzhen Star Asset Management Co., Ltd. (i) Rental expenses of e-bicycles (176,862 ) - - Shenzhen Star Asset Management Co., Ltd. (i) Disposal of e-bicycles on behalf of a related party (291,131 ) - - Shenzhen Star Asset Management Co., Ltd. (i) Purchase of e-bicycles from a related party (873,394 ) - - Jianhui Ye (f) Interest-free loan from a related party (4,374,249 ) - - Jianhui Ye (f) Repayment of interest-free loan to a related party - 4,289,426 - Beijing Weiqi Technology Co., Ltd (k) Sales of e-bicycles to a related party - 107,314 12,341 * The interest-free loan made to Henglong Chen, a significant shareholder and former Chairman of the Board of the Company, net of repayment was recognized as a deduction to the Company’s equity, see Note 15d. The loans made to Henglong Chen which were for his personal purpose violated Sarbanes-Oxley Act section 402 due to the lack of internal control in term of related party borrowings. The loans are expected to be collected before December 31, 2022. |
Discontinued Operation
Discontinued Operation | 12 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATION | 13. DISCONTINUED OPERATION In November 2018, the Company entered into an agreement with a third-party company to dispose its battery cell production line. The production line was disposed in December 2018. After the disposal, the Company is no longer engaged in the manufacturing of battery cells. The disposal of the production line was treated as a discontinued operation for all fiscal years presented. Due to the impact of COVID-19, the revenue of rental business decreased after December 2019, which led to the termination of the cooperation with its sublease agents from January 2020 to July 2020. Therefore, management decided to dispose majority of its rental assets, mainly batteries and E-bicycle, before September 30, 2021. The disposal of the Company’s rental business was also treated as a discontinued operation for all fiscal years presented. The assets and liabilities of the discontinued operations, which are included in “Current assets of discontinued operation” and “Current liabilities of discontinued operation”, on the Consolidated Balance Sheets, consist of the following: As of September 30, 2020 2021 Assets of discontinued operation Accounts receivable* $ 393,531 $ 82,790 Advance to suppliers 1,077 1,135 Other receivable and prepaid expense 356,176 8,072 Total current assets 750,784 91,997 Property, plant and equipment, net 739,154 46,381 Total assets $ 1,489,938 $ 138,378 Liabilities of discontinued operation Accounts payable 320,001 293,073 Advance from customers 35,324 35,971 Other payable 286,462 664 Income tax payable 477,897 479,513 Total current liabilities 1,119,684 809,221 Total liabilities $ 1,119,684 $ 809,221 * The accounts receivables as of September 30, 2021 has been subsequently collected in November 2021. The following are revenues and income (loss) from discontinued operation: For the years ended 2019 2020 2021 Net revenues $ 6,334,585 $ 1,595,227 $ 342,636 Cost of revenues (3,779,369 ) (1,348,578 ) (292,266 ) Loss on the disposal of the production line (151,298 ) - - Income (loss) from discontinued operation before income tax 1,960,866 (76,291 ) (26,272 ) Income tax benefit (expense) (536,565 ) 18,915 (10,132 ) Income (loss) from discontinued operation, net of income tax $ 1,424,301 $ (57,376 ) $ (36,404 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 14. INCOME TAXES BVI The Company is incorporated in the BVI. Under the current laws of the BVI, the Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the BVI. Hong Kong On March 21, 2018, the Hong Kong Legislative Council passed The Inland Revenue (Amendment) (No. 7) Bill 2017 (the “Bill”) which introduces the two-tiered profits tax rates regime. The Bill was signed into law on March 28, 2018 and was announced on the following day. Under the two-tiered profits tax rates regime, the first 2 million Hong Kong Dollar (“HKD”) of profits of the qualifying group entity will be taxed at 8.25%, and profits above HKD 2 million will be taxed at 16.5%. The Company’s Hong Kong subsidiaries did not have assessable profits that were derived in Hong Kong for the years ended September 30, 2019, 2020 and 2021. Therefore, no Hong Kong profit tax has been provided for fiscal the years ended September 30, 2019, 2020 and 2021. PRC The Company’s PRC subsidiaries, VIE and VIE’s subsidiaries are subject to the PRC Enterprise Income Tax Law (“EIT Law”) and are taxed at the statutory income tax rate of 25%, unless otherwise specified. The components of the income tax expense (benefit) from continuing operations are: For the years ended September 30, 2019 2020 2021 Current $ 126,267 $ 160,540 $ 68,650 Deferred 147,660 (44,477 ) (488,055 ) Total income tax expense (benefit) $ 273,927 $ 116,063 $ (419,405 ) The reconciliations of the statutory income tax rate and the Company’s effective income tax rate are as follows: For the years ended September 30, 2019 2020 2021 Net income (loss) before provision for income taxes $ 1,041,063 $ 450,361 $ (3,796,645 ) PRC statutory tax rate 25 % 25 % 25 % Income tax at statutory tax rate 260,266 112,590 (949,161 ) Expenses not deductible for tax purpose 2,194 3,492 6,856 Effect of income tax rate differences in jurisdictions other than the PRC - - 123,889 Effect on valuation allowance 11,467 (19 ) 399,011 Income tax expense (benefit) $ 273,927 $ 116,063 $ (419,405 ) Effective tax rates 26 % 26 % 11 % The current PRC EIT Law imposes a 10% withholding income tax for dividends distributed by foreign invested enterprises to their immediate holding companies outside the PRC. A lower withholding tax rate will be applied if there is a tax treaty arrangement between the PRC and the jurisdiction of the foreign holding company. Distributions to holding companies in Hong Kong that satisfy certain requirements specified by the PRC tax authorities, for example, will be subject to a 5% withholding tax rate. As of September 30, 2020 and 2021, the Company had not recorded any withholding tax on the retained earnings of its foreign invested enterprises in the PRC, since the Company intends to reinvest its earnings to further expand its business in mainland China, and its foreign invested enterprises do not intend to declare dividends to their immediate foreign holding companies. For the fiscal year ended September 30, 2021, the effect of income tax rate differences in jurisdictions other than the PRC mainly resulted from the loss in EZGO, which is incorporate in BVI and is not subject to income or capital gains taxes. The effective tax rates are 26%, 26% and 11% for the fiscal years ended September 30, 2019, 2020 and 2021 respectively. The Company accrued valuation allowance for deferred tax assets of $399,011 for the fiscal year end September 30, 2021, which resulted in the low effective tax rate. The tax effect of temporary difference under ASC Topic As of September 30, 2020 2021 Deferred tax assets: Tax loss carry forwards $ 101,848 $ 951,323 Bad debt allowance - 236 Reserve of inventory - 26,757 Advertising expense 7,061 23,995 Less: valuation allowance (11,585 ) (416,883 ) Deferred tax assets, net $ 97,324 $ 585,428 The movement of valuation allowance provision for deferred tax assets is as follows: For the fiscal years ended 2019 2020 2021 Balance as of October 1, $ - $ 11,138 $ 11,585 Current year addition (reduction) 11,467 (19 ) 399,011 Exchange rate effect (329 ) 466 6,287 Balance as of September 30, $ 11,138 $ 11,585 $ 416,883 As of September 30, 2021, the net operating loss carried forward was $3,805,292, $169,487 and $237,905 of which expires in 2024 and 2025 respectively and the remaining expires in 2026. For the fiscal years ended September 30, 2019 and 2021, the Company accrued valuation allowance for deferred tax assets of $11,467 and $399,011, respectively and reduced valuation allowance for deferred tax assets of $19 for the fiscal years ended September 30, 2020 based upon a review of four sources of income identified within ASC Topic 740. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carry forward periods, the Company’s experience with tax attributes expiring unused and tax planning alternatives. Valuation allowances have been established for deferred tax assets based on a more-likely-than-not threshold. Accounting for uncertainty tax position The Company did not identify significant unrecognized tax benefits for the fiscal years ended September 30, 2019, 2020 and 2021. The Company did not incur any interest and penalties related to potential underpaid income tax expenses. In general, the PRC tax authority has up to five years to conduct examinations of the Company’s tax filings. Accordingly, the tax years from 2016 to 2021 of the Company’s PRC subsidiaries and VIE and subsidiaries of the VIE remain open to examination by the taxing jurisdictions. The Company does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months. |
Equity
Equity | 12 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | 15. EQUITY (a) Ordinary shares The Company was established under the laws of the BVI on January 24, 2019. The authorized number of Ordinary Shares was 50,000 with par value of $1 per share . On January 24, 2019, the Company issued 50,000 shares to the shareholders at par $1 per share. On September 8, 2020, the Company effected a one thousand-for-one subdivision of shares to shareholders, which increased the total number of authorized and issued ordinary shares of 50,000 to 50,000,000 and decreased the par value of ordinary shares from $1 to $0.001. The Company also registered an additional authorized number of ordinary shares of 50,000,000 of par value of $0.001 per share and preferred shares of 10,000 of no par value. Then the shareholders surrendered a pro-rata number of ordinary shares of 42,200,000 to the Company for no consideration and thereafter cancelled. Following the surrender, the issued and outstanding ordinary shares were 7,800,000 of par value of $0.001 per share. On January 28, 2021, the Company closed its initial public offering (“IPO”). 3,038,500 ordinary shares, par value $0.001 per share, at an offering price of $4 per share for a total of $12,154,000 in gross proceeds. The Company raised total net proceeds of $10,845,638 after deducting underwriting discounts, commotions, and offering expenses. On June 1, 2021, the Company, closed its registered direct public offering of 2,564,102 units of its securities (each, a “Unit”), with each Unit consisting of (i) one ordinary share of the Company, par value $0.001 per share, and (ii) one warrant to purchase 0.7 ordinary share, at an offering price of $4.68 per Unit for a total $12,000,000 in gross proceeds. The Company raised total net proceeds of $10,881,576 after deducting underwriting discounts, commotions, and offering expenses. (b) Subscription receivable As of September 30, 2020 and 2021, subscription receivable on the Consolidated Balance Sheets represented the unrecovered consideration of the 7,800,000 ordinary shares issued by the Company. (c) Statutory reserve and restricted net assets The Company’s PRC subsidiaries, VIE and VIE’s subsidiaries are required to reserve 10% of their net profit after income tax, as determined in accordance with the PRC accounting rules and regulations. Appropriation to the statutory reserve by the Company is based on profit arrived at under PRC accounting standards for business enterprises for each year. The profit arrived at must be set off against any accumulated losses sustained by the Company in prior years, before allocation is made to the statutory reserve. Appropriation to the statutory reserve must be made before distribution of dividends to shareholders. The appropriation is required until the statutory reserve reaches 50% of the registered capital. This statutory reserve is not distributable in the form of cash dividends. As of September 30, 2020 and 2021, statutory reserve provided were $212,842 and $ , respectively. Relevant PRC statutory laws and regulations permit the payment of dividends by the Company’s PRC subsidiaries and VIE and VIE’s subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Furthermore, registered share capital and capital reserve accounts are also restricted from distribution. As a result of these PRC laws and regulations, the Company’s PRC subsidiaries and VIE and VIE’s subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company either in the form of dividends, loans or advances. The Company’s restricted net assets, comprising of the registered paid in capital and statutory reserve of Company’s PRC subsidiaries and VIE and VIE’s subsidiaries, were $12,290,900 and $28,064,866 as of September 30, 2020 and 2021, respectively. (d) Receivables from a shareholder Receivables from a shareholder as of September 30, 2020 and 2021 included the loans to Mr. Henglong Chen, a significant shareholder and former Chairman of Board of the Company, amounted to $4,737,521, and $3,152,179 , respectively. The receivable from Mr. Chen is interest-free loan and is due on demand. (e) Option In January 2021, the Company granted its underwriters an option to purchase for a period of 45 days after the closing of the initial public offering to purchase the Company’s Ordinary Shares to be offered by the Company pursuant to the offering (excluding shares subject to this option). These options expired and unexercised in 2021. On January 29, 2021, an underwriter exercised an over-allotment option (the “Option”) in part to purchase 238,500 Ordinary Shares from the Company in connection with the IPO at a price of $4.00 per Ordinary Share for gross proceeds of $954,000 under the Option. Number Weighted Contractual Intrinsic Options Outstanding as of September 30, 2020 - - - - Options Exercisable as of September 30, 2020 - - - - Options granted 420,000 4 45 - Options exercises (238,500 ) 4 45 - Options expired (181,500 ) 4 45 - Options Outstanding as of September 30, 2021 - - - - Options Exercisable as of September 30, 2021 - - - - (f) Warrant In January, 2021, the warrant shares were granted to an underwriter to purchase 303,850 ordinary shares at an exercise price of $4.4 per share. The warrant shares can be purchased in cash or via the cashless exercise option. As the share price on the exercise date was higher than the exercise price of $4.40, the Company issued 224,289 ordinary shares to warrant holders for free. In June 2021, warrant shares were granted to investors in the Company’s public offering to purchase 1,794,871 ordinary shares at an exercise price of $4.68 per share. Warrants shares were also granted to FT Global Capital, Inc. to purchase 217,948 ordinary shares at an exercise price of $5.85 per share. Both the warrant shares granted to both investors and FT Global Capital, Inc. can be purchased in cash or via cashless exercise option, and are exercisable before June 1, 2023. As of September 30, 2021, the warrant shares granted to investors and FT Global Capital, Inc. have not been exercised. Following table summarizes the warrant activities for the fiscal years ended September 30, 2021. There were no warrant activities for the fiscal year ended September 30, 2019 and 2020. Ordinary Weighted Contractual Intrinsic Warrants outstanding as of September 30, 2020 - - - - Warrants Exercisable as of September 30, 2020 - - - - Warrants granted 2,316,669 $ 4.75 2.39 - Warrants exercises (303,850 ) $ 4.40 - - Warrants expired - - - - Warrants Outstanding as of September30, 2021 2,012,819 $ 4.81 1.67 - Warrants Exercisable as of September 30, 2021 2,012,819 $ 4.81 1.67 - (g) Non-controlling interests As of September 30, 2020 and 2021, the Company’s non-controlling interests represented 19.13% equity interest of Hengmao, 20% equity interest of Dilang, which was established on July 2, 2019, and 49% equity interest of Cenbird E- Motorcycle, which was acquired on September 10, 2019. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 16. COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company may be subject to legal proceedings, investigations and claims incidental to the conduct of our business. The Company currently have two contract disputes with our suppliers, Jiangsu Anruida New Material Company Limited (“Anruida”) and Zhuhai Titans New Power Electric Co., Ltd. (“Titans”). On October 21, 2019, Anruida commenced an action against Hengmao Power Battery in Changzhou Wujin District Intermediate People’s Court alleging that Hengmao Power Battery defaulted on the contract payment of RMB958,805.40 (approximately $148,804) and seeking for, among others, the payment of the contractual payment and the interest on the contractual payment. The appellate court has rendered its judgment on January 28, 2021, pursuant to which Hengmao Power Battery shall repay RMB958,805.40 and accrued interests. The Company properly accrued the repayment amount and interest as of September 30, 2021. On January 6, 2020, Titans commenced an action against Hengmao Power Battery in Changzhou Wujin District Intermediate People’s Court alleging that Hengmao Power Battery defaulted on the payment of RMB1,072,560 (approximately $166,459) and seeking for, among others, the payment of the contractual payment. However, the Company plan to defend the case rigorously. The appellate court has rendered its judgment on January 27, 2021, pursuant to which Hengmao Power Battery shall repay RMB1,072,560 (approximately $166,459), accrued interests and attorney’s fees. The Company properly accrued the repayment amount and interest as of September 30, 2021. Other than disclosed above, the Company are not a party to, nor are we aware of, any legal proceedings, investigations or claims which, in the opinion of our management, are likely to have a material adverse effect on our business, financial condition or results of operations. Operating Leases The Company leases its offices under non-cancelable operating lease agreements. Rent and related utilities expense under all operating leases, included in operating expenses in the Consolidated Statements of Operations and Comprehensive Income (loss), amounted to $130,940, $165,891 and $ 281,102 for the fiscal years ended September 30, 2019, 2020 and 2021, respectively. The following table presents future minimum rental payments required under operating leases as of September 30, 2021: Years ending September 30, Amount 2022 $ 219,020 2023 141,527 2024 83,807 2025 54,319 2026 and thereafter - $ 498,673 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Sep. 30, 2021 | |
Disclosure of Segment Reporting [Abstract] | |
SEGMENT REPORTING | 17. SEGMENT REPORTING The Company has determined that it operates in two operating segments: (1) Battery cells and packs segment, and (2) E-bicycle sales segment. The battery cells and packs segment engages in selling battery packs and trading battery cells. The e-bicycle sales segment sells e-bicycles on various e-commerce platforms to individual customers. The Company’s CODM, chief executive officer, measures the performance of each segment based on metrics of revenue and profit before taxes from operations and uses these results to evaluate the performance of, and to allocate resources to each of the segments. As most of the Company’s long-lived assets are located in the PRC and most of the Company’s revenues are derived from the PRC, no geographical information is presented. The Company does not allocate assets to its segments as the CODM does not evaluate the performance of segments using asset information. The following tables present the summary of each reportable segment’s revenue and income, which is considered as a segment operating performance measure, for the fiscal years ended September 30, 2019, 2020 and 2021: Fiscal year ended September 30, 2019 Battery E-bicycle Subtotal from operating Other Consolidated Revenues from external customers $ 1,253,569 $ 104,080 $ 1,357,649 $ 13,552 $ 1,371,201 Depreciation and amortization $ - $ (424 ) $ (424 ) $ (3,178 ) $ (3,602 ) Segment income before tax $ 1,119,568 $ 32,994 $ 1,152,562 $ (111,499 ) $ 1,041,063 Segment gross profit margin 96 % (2 )% 87 % 39 % 86 % Fiscal year ended September 30, 2020 Battery E-bicycle Subtotal from operating Other Consolidated Revenues from external customers $ 3,148,156 $ 11,165,290 $ 14,313,446 $ 929,836 $ 15,243,282 Depreciation and amortization $ (2,318 ) $ (82,896 ) $ (85,214 ) $ (466 ) $ (85,680 ) Segment income (loss) before tax $ 251,731 $ 169,452 $ 421,183 $ 29,178 $ 450,361 Segment gross profit margin 15 % 9 % 11 % 10 % 11 % Fiscal year ended September 30, 2021 Battery cells and packs segment E-bicycle sales segment Subtotal from operating segments Other Consolidated Revenues from external customers $ 4,288,366 $ 18,232,537 $ 22,520,903 $ 901,103 $ 23,422,006 Depreciation and amortization $ (804 ) $ (139,501 ) $ (140,305 ) $ (329,543 ) $ (469,848 ) Segment income (loss) before tax $ 16,902 $ (2,034,515 ) $ (2,017,613 ) $ (1,779,032 ) $ (3,796,645 ) Segment gross profit margin 3.2 % 1.6 % 1.9 % (4.4 )% 1.6 % The following table presents the reconciliation from reportable segment income to the consolidated income from continuing operations before income taxes for the years ended September 30, 2019, 2020 and 2021: For the fiscal years ended 2019 2020 2021 Net revenues Total revenues from reportable segments $ 1,357,649 $ 14,313,446 $ 22,520,903 Other revenues 13,552 929,836 901,103 Consolidated net revenues $ 1,371,201 $ 15,243,282 $ 23,422,006 Income or loss Total operating income (loss) for reportable segments $ 1,149,103 $ 186,758 $ (2,040,656 ) Other income for reportable segments 3,459 234,425 23,043 Total income for reportable segments 1,152,562 421,183 (2,017,613 ) Unallocated amounts: Other corporate (expense) gain (111,499 ) 29,178 (1,779,032 ) Consolidated income from continuing operations before income taxes $ 1,041,063 $ 450,361 $ (3,796,645 ) |
Concentrations
Concentrations | 12 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | 18. CONCENTRATIONS Concentrations of credit risk As of September 30, 2020 and 2021, cash, cash equivalents and restricted cash balances in the PRC are $340,530 and $5,889,885, respectively, which were primarily deposited in financial institutions located in Mainland China, and each bank account is insured by the government authority with the maximum limit of RMB500,000 (equivalent to $70,692). To limit exposure to credit risk relating to deposits, the Company primarily place cash and cash equivalent deposits with large financial institutions in China which management believes are of high credit quality and management also continually monitors the financial institutions’ credit worthiness. Concentrations of customers The following table sets forth information as to each customer that accounted for 10% or more of total accounts receivable as of September 30, 2020 and 2021. As of 2020 As of Customer Amount % of Total Amount % of Total A $ 644,120 10 % $ 1,289,276 19 % B * * 1,253,742 18 % C * * 1,102,586 16 % D * * 1,083,605 16 % E * * 863,626 12 % F 2,390,789 36 % * * Total $ 3,034,909 46 % $ 5,592,835 81 % * Represented the percentage below 10% The following table sets forth information as to each customer that accounted for 10% or more of total revenue for the fiscal years ended September 30, 2019, 2020 and 2021. Fiscal year ended Fiscal year ended Fiscal year ended Customer Amount % of Total Amount % of Total Amount % of Total A $ * * $ * * $ 3,062,302 13 % B * * * * 2,230,798 10 % F * * 4,065,411 24 % * * G 1,158,818 22 % * * * * H 867,411 17 % * * * * I 642,683 12 % * * * * J 578,489 11 % * * * * Total $ 3,247,401 62 % $ 4,065,411 24 % $ 5,293,100 23 % * Represented the percentage below 10% The following table sets forth information as to each supplier that accounted for 10% or more of total purchase for the fiscal years ended September 30, 2019, 2020 and 2021. Fiscal year ended Fiscal year ended Fiscal year ended Supplier Amount % of Total Amount % of Total Amount % of Total A * * $ * * $ 3,485,941 16 % B * * * * 2,420,798 11 % C 504,889 63 % 4,320,110 26 % * * D * * 2,141,144 13 % * * E 110,940 14 % * * * * Total 615,829 77 % $ 6,461,254 39 % $ 5,906,739 27 % * Represented the percentage below 10% |
Condensed Financial Information
Condensed Financial Information of The Parent Company | 12 Months Ended |
Sep. 30, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 19. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY PARENT COMPANY BALANCE SHEETS As of September 30, 2020 2021 ASSETS Cash and cash equivalents $ - $ 175,437 Restricted cash - 1,100,000 Receivable from VIE - 3,017,337 Receivable from Non-VIE - 15,853,200 Long term investment 8,869,462 8,736,137 Total assets $ 8,869,462 $ 28,882,111 LIABILITIES AND SHAREHOLDERS’ EQUITY Accrued expenses and other payables 47,585 Amount due to VIE 316,524 Total liabilities - 364,109 Shareholders’ equity Ordinary shares (par value of $0.001 per share; 100,000,000 shares authorized as of September 30, 2020 and 2021; 7,800,000 and 13,626,602 shares issued and outstanding as of September 30, 2020 and 2021, respectively) 7,800 13,627 Subscription receivable (7,800 ) (7,800 ) Receivables due from a shareholder (4,737,521 ) (3,152,179 ) Additional paid-in capital 12,290,900 32,493,461 Retained earnings 1,575,630 (1,423,614 ) Accumulated other comprehensive (loss)/income (259,547 ) 594,507 Total shareholders’ equity 8,869,462 28,518,002 Total liabilities and shareholders’ equity $ 8,869,462 $ 28,882,111 PARENT COMPANY STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the fiscal years ended 2019 2020 2021 General and administrative expenses $ - $ - $ (495,835 ) Total operating expenses - - (495,835 ) Loss from operation - - (495,835 ) Other income: Share of earnings (loss) from subsidiaries, VIE and its subsidiaries 1,738,123 $ 147,174 $ (2,483,117 ) Other income - - 279 Income (loss) before income tax expense 1,738,123 147,174 (2,978,673 ) Income tax expense - - - Net income/(Loss) 1,738,123 147,174 (2,978,673 ) Other comprehensive income: Foreign currency translation (loss) income, net of nil income taxes (192,550 ) 397,110 795,593 Available-for-sale debt investments - - 58,461 Total comprehensive income/(loss) $ 1,545,573 $ 544,284 $ (2,124,619 ) PARENT COMPANY STATEMENTS OF CASH FLOWS For the fiscal years ended 2019 2020 2021 Cash flows from operating activities $ - $ - $ (801,208 ) Payment on behalf of VIE - - (3,017,337 ) Loan to subsidiary - - (15,853,200 ) Cash flows from investing activities - - (18,870,537 ) Cash receipts from equity issuance, net of issuance cost 20,947,182 Cash flows from financing activities - - 20,947,182 Effect of exchange rate changes - - - Net increase in cash, cash equivalents and restricted cash - - 1,275,437 Cash, cash equivalents and restricted cash, at beginning of year - - - Cash, cash equivalents and restricted cash, at end of year $ - $ - $ 1,275,437 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 20. SUBSEQUENT EVENTS On October 14, 2021, Jiangsu EZGO entered into a loan agreement of RMB10,000,000 ($1,552,458) with Shandong EZGO New Energy Technology Co., Ltd., a related party of the Company, with annual interest rate of 5% and a term of 12 months. On December 7, 2021, Jiangsu Langyi Import and Export Trade Co., Ltd. (“Langyi”), a subsidiary of VIE was corporate in Changzhou, Jiangsu province. The principal activities of Langyi include import and export trade of e-bicycles. On December 10, 2021, Jiangsu EZGO Energy Supply Chain Technology Co., Ltd. (“EZGO Energy”), a subsidiary of VIE was corporate in Changzhou, Jiangsu province. The principal activities of EZGO Energy include supply chain management services and development, operation and maintenance of technology related to e-bicycle. The Company has performed an evaluation of subsequent events through January 27, 2022, which was the date of the issuance of the consolidated financial statements, and determined that no events that would have required adjustment or disclosure in the consolidated financial statements other than those discussed in above. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | (a) Basis of presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of EZGO, its subsidiaries, its VIE and its VIE’s subsidiaries for which EZGO is the primary beneficiary. All inter-company transactions and balances have been eliminated upon consolidation. |
Use of estimates | (b) Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period and accompanying notes, including allowance for doubtful accounts, the useful lives of property, plants and equipment, impairment of short-term investments and long-lived assets, valuation allowance for deferred tax assets and uncertain tax opinions. Actual results could differ from those estimates. |
Comparability due to discontinued operation | (c) Comparability due to discontinued operation Certain accounts in the Consolidated Statements of Operations and Comprehensive Income (Loss) for the fiscal years ended September 30, 2019, 2020 and 2021, and balances in the Consolidated Balance Sheets as of September 30, 2020 and 2021, and cash flows in the Consolidated Statements of Cash Flows for the fiscal years ended September 30, 2019, 2020 and 2021, and related notes have been retrospectively adjusted to reflect the effect of discontinued operations. See Note 13 for details of discontinued operations. |
Discontinued operation | (d) Discontinued operation A discontinued operation may include a component of an entity or a group of components of an entity, or a business or nonprofit activity. A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operation if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when any of the following occurs: (1) the component of an entity or group of components of an entity meets the criteria to be classified as held for sale; (2) the component of an entity or group of components of an entity is disposed of by sale; (3) the component of an entity or group of components of an entity is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). For any component classified as held for sale or disposed of by sale or other than by sale that qualify for presentation as a discontinued operation in the period, the Company has reported the assets and liabilities of the discontinued operation as current asset of discontinued operation, and current liabilities of discontinued operation in the Consolidated Balance Sheets as of September 30, 2020 and 2021. The results of operations of discontinued operation for the years ended September 30, 2019, 2020 and 2021 have been reflected separately in the Consolidated Statements of Income as a single line item for all periods presented in accordance with U.S. GAAP. Cash flows from discontinued operation of the three categories for the years ended September 30, 2019, 2020, and 2021 were separately presented in the Consolidated Statements of Cash Flows for all periods presented in accordance with U.S. GAAP. |
Fair value measurement | (e) Fair value measurement The Company applies Accounting Standards Codification (“ASC”) ASC Topic 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability. ASC Topic 820 specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is 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 identical or similar assets and liabilities in active markets or in inactive markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. The carrying amounts of the Company’s financial instruments approximate their fair values because of their short-term nature. The Company’s financial instruments include cash and cash equivalents, short-term investments, accounts receivable, amount due from related parties, amount due to related parties, short-term borrowings, accounts payable and advances from customers. |
Cash and cash equivalents | (f) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, bank deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash, and have insignificant risk of changes in value related to changes in interest rates and have original maturities of three months or less when purchased. |
Restricted cash | (g) Restricted cash Restricted cash represents bank deposits with designated use, which cannot be withdrawn without certain approval or notice. As of September 30, 2020 and 2021, the Company had restricted bank deposits of $17,932 and $1,115,354, respectively. The balance as of September 30, 2020 represented the restricted bank deposits in the bank account, which cannot be withdrawn or used without the bank’s approval. The balances as of September 30, 2021 mainly represented the restricted deposits in the escrow account set up by the Company with a third-party escrow agent in the United States. The Company funded such account with the public offering on the Nasdaq Capital Market (“Nasdaq”) that may be utilized to fund any bona fide indemnification claims. All fund cannot be withdrawn or used until the applicable period expires. |
Short-term investments | (h) Short-term investments Short-term investments include wealth management product and convertible debt instrument, which are classified as available-for-sale debt investments in accordance with ASC topic 320 (“ASC 320”), Investments—Debt Securities. Short-term investments are measured at fair value and interest income is recognized in earnings. The unrealized gains or losses from the changes in fair values are reported net of tax in accumulated other comprehensive income until realized. The Company reviews available-for-sale debt investments for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Company considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Company considers, among other factors, general market conditions, expected future performance of the investees, the duration, and the extent to which the fair value of the investment is less than the cost, and the Company’s intent and ability to hold the investment. OTTI, if any, is recognized as loss in the Consolidated Statements of Income. For the years ended September 30, 2019, 2020 and 2021, the Company did not record any OTTI. |
Accounts receivable, net | (i) Accounts receivable, net Accounts receivable, net are stated at the original amount less an allowance for doubtful receivables, if any, based on a review of all outstanding amounts at period end. An allowance is also made when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. The Company analyzes the aging of the customer accounts, coverage of credit insurance, customer concentrations, customer credit-worthiness, historical and current economic trends and changes in its customer payment patterns when evaluating the adequacy of the allowance for doubtful accounts. For the years ended September 30, 2019, 2020 and 2021, the Company recorded bad debt expense $ nil |
Inventories | (j) Inventories Inventories, primarily consisting of the raw materials purchased by the Company for battery packs assembling and e-bicycles production, and finished goods including battery packs and e-bicycles, are stated at the lower of cost or net realizable value. Cost of inventory is determined using weighted-average method. Where there is evidence that the value of inventories, in their disposal or in the ordinary course of business, will be less than cost, whether due to physical deterioration, obsolescence, changes in price levels, or other causes, the inventories are written down to net realizable value. The reserve recognized for the inventories for the years ended September 30, 2019, 2020 and 2021 was $ nil nil |
Advances to suppliers, net | (k) Advances to suppliers, net Advances to suppliers refer to advances for purchase of materials or other service agreements, which are applied against accounts payable when the materials or services are received. The Company reviews a supplier’s credit history and background information before advancing a payment. If the financial condition of its suppliers were to deteriorate, resulting in an impairment of their ability to deliver goods or provide services, the Company would provide allowance for such amount in the period when it is considered impaired. For the years ended September 30, 2019, 2020 and 2021, the Company provided bad debt expense of $83,370, $ nil nil |
Property, plants and equipment, net | (l) property, plants and equipment, net Property, plants and equipment are stated at cost less accumulated depreciation and depreciated on a straight-line basis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its intended use. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income/loss in the year of disposition. Estimated useful lives are as follows: Estimated Useful Life Building 20 years Equipment for rental business 2.5-5 Years Production line for e-bicycles 5-10 Years Furniture, fixtures and office equipment 3-5 Years Vehicles 4-10 Years |
Land use right | (m) Land use right Land use rights are recorded at cost less accumulated amortization. Amortization is provided on straight-line basis over the useful life of land use right. The land use right has a term of 36.5 years and will expire on December 4, 2057. |
Impairment of long-lived assets | (n) Impairment of long-lived assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its carrying amount. The Company did not record any impairment charge for the years ended September 30, 2019, 2020 and 2021. |
Long term investment | (o) Long term investment Equity investments without readily determinable fair values are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes in accordance with ASC topic 321, Investments – Equity Securities. |
Value added tax | (p) Value added tax EZGO’s China subsidiaries, VIE and VIE’s subsidiaries are subject to value-added tax (“VAT”) for providing services and sales of products. Revenue from providing services and sales of products is generally subject to VAT at applicable tax rates , and subsequently paid to PRC tax authorities after netting input VAT on purchases. The excess of output VAT over input VAT is reflected in accrued expenses and other payables. The Company reports revenue net of PRC’s VAT for all the periods presented in the Consolidated Statements of Operations. |
Revenue recognition | (q) Revenue recognition The Company adopted ASU 2014-09, , starting October 1, 2017 using the modified retrospective method for the revenue from sales of self-manufactured battery cell, battery pack and e-bicycles and battery cell trading. The Company applied ASC Topic 840, Leases, for the revenue from rentals of lithium batteries and e-bicycles. The core principle of ASC Topic 606 is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: Step 1: Identify the contract with the customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when the company satisfies a performance obligation Revenue recognition policies are discussed as follows: Revenue from sales of self-manufactured battery cell, battery pack and e-bicycles The Company sells products to different customers, primarily including sale of self-manufactured battery cells (see Note 13 Discontinued Operation), self-assembled battery packs and sale of e-bicycles. The Company presents the revenue generated from its sales of products on a gross basis as the Company is a principal. The revenue is recognized at a point in time when the Company satisfies the performance obligation by transferring promised product to a customer upon acceptance by customers. Revenue from battery cell trading Revenue from battery cell trading is recognized on a net basis as the Company arranges the provision of products through third parties and does not control the specified products provided by the third parties before that products are transferred to the customers, and therefore, the Company acts as an agent. The revenue is recognized at a point in time when the Company satisfies performance obligations by arranging the transfer of a promised product to a customer and measured at fixed consideration which is determined as the difference between the sales price that the Company expects to receive in exchange for arranging promised products to the customer and the settlement price with the third-party suppliers. Contract liabilities primarily consist of advances from customers, which comprises unamortized lithium batteries. As of September 30, 2020 and 2021, the Company recognized advances from customers amounted to $154,554 and $94,899, respectively. The revenue from sales of self-manufactured battery cells and lithium batteries and e-bicycles services via sublease and its own application named Yidianxing are revenue from the Company’s discontinued operation, and are represented separately in the Consolidated Statements of Income for the years ended September 30, 2019, 2020 and 2021 (see Note 13 Discontinued Operation). The following table identifies the disaggregation of the Company’s revenue from continuing operations for the years ended September 30, 2019, 2020 and 2021, respectively: For the years ended 2019 2020 2021 Revenues from continuing operations: Sales of battery packs and e-bicycles $ 171,464 $ 14,313,446 $ 22,520,903 Battery cell trading 1,186,185 - - Others 13,552 929,836 901,103 Net revenues $ 1,371,201 $ 15,243,282 $ 23,422,006 Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent revenue recognized for the amounts invoiced and/or prior to invoicing when the Company has satisfied its performance obligation and has unconditional right to the payment. The Company has no contract assets as of September 30, 2020 and 2021. The Company applied a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. The Company has no material incremental costs of obtaining contracts with customers that the Company expects the benefit of those costs to be longer than one year. |
Cost of revenue | (r) Cost of revenue Cost of revenue consists primarily of cost of products, labor cost, depreciation, maintenance, and other overhead expenses. |
Income taxes | (s) Income taxes The Company accounts for income taxes using the asset/liability method prescribed by ASC 740 Income Taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company’s operating subsidiaries in PRC are subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB100,000 ($14,138). In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. |
Foreign currency translation | (t) Foreign currency translation The reporting currency of the Company is the U.S. dollar (“USD” or “$”). The functional currency of subsidiaries, VIE and VIE’s subsidiaries located in China is the Chinese Renminbi (“RMB”), the functional currency of subsidiaries located in Hong Kong is the U.S. dollar (“USD” or “$”). For the entities whose functional currency is the RMB, result of operations and cash flows are translated at average exchange rates during the period, assets, liabilities, and in equity are translated at the unified exchange rate at the end of the period, and except for equity items are translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments are reported as foreign currency translation adjustment and are shown as a separate component of other comprehensive loss in the Consolidated Statements of Comprehensive Income (loss). Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet date with any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Consolidated Balance Sheets amounts, with the exception of equity, on September 30, 2020 and 2021 were translated at RMB6.7896 to $1.00 and at RMB6.4434 to $1.00, respectively. Equity accounts were stated at their historical rates. The average translation rates applied to Consolidated Statements of Operations and Cash Flows for the fiscal years ended September 30, 2019, 2020 and 2021 were RMB6.8698 to $1.00, RMB7.0056 to $1.00 and RMB6.5072 to $1.00, respectively. |
Non-controlling interest | (u) Non-controlling interest A non-controlling interest in a subsidiary of the Company represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity on the Consolidated Balance Sheets and net income and other comprehensive income attributable to non-controlling shareholders are presented as a separate component on the Consolidated Statements of Operations. |
Segment reporting | (v) Segment reporting The Company has organized its operations into two operating segments. The segments reflect the way the Company evaluates its business performance and manages its operations by the Company’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Company’s CODM has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. The Company has determined that it operates in two operating segments: (1) Battery cells and packs segment, and (2) e-bicycles sales segment. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different technology and marketing strategies. As the Company’s long-lived assets are substantially all located in the PRC and all of the Company’s revenue and expense are derived from within the PRC, no geographical segments are presented. |
Net income (loss) per ordinary share | (w) Net income (loss) per ordinary share Basic income (loss) per ordinary share is computed by dividing net income (loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding for the period. Diluted income (loss) per share is calculated by dividing net income (loss) attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Potentially dilutive shares are excluded from the computation if their effect is anti-dilutive. |
Comprehensive income (loss) | (x) Comprehensive income (loss) Comprehensive income (loss) is comprised of the Company’s net income and other comprehensive income (loss). The components of other comprehensive (income) loss consist of foreign currency translation adjustments and unrealized gain on available for sale short term investments. |
Commitments and contingencies | (y) Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Recent Accounting Standards | (z) Recent Accounting Standards The Company is an “emerging growth company” (“EGC”) as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842). The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. In July 2018, ASU 2016-02 was updated with ASU 2018-11, Targeted Improvements to ASC Topic 842, which provides entities with relief from the costs of implementing certain aspects of the new leasing standard. Specifically, under the amendments in ASU 2018-11, (1) entities may elect not to recast the comparative periods presented when transitioning to ASC 842 and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. In November 2019, ASU 2019-10, Codification Improvements to ASC 842 modified the effective dates of all other entities. In June 2020, ASU 2020-05 defer the effective date for one year for entities in the “all other” category. For Early application of the guidance continues to be permitted. The Company is in the process of evaluating the effect of the adoption of this ASU. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses”, which will require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Subsequently, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, to clarify that receivables arising from operating leases are within the scope of lease accounting standards. Further, the FASB issued ASU No. 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11 and ASU 2020-02 to provide additional guidance on the credit losses standard. For The Company is in the process of evaluating the effect of the adoption of this ASU Other accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent standards that are not anticipated to have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows or disclosures. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of consolidated financial statements reflect the activities | Name Date of Place of Percentage of Principal Activities Wholly owned subsidiaries China EZGO Group Ltd. (formerly known as Hong Kong JKC Group Co., Ltd., “EZGO HK”) February 13, 2019 HK 100 % Investment holding company Changzhou Langyi Electronic Technologies Co., Ltd. August 6, 2021 PRC 100 % WFOE Changzhou EZGO Enterprise Management Co., Ltd. (formerly known as Changzhou Jiekai Enterprise Management Co., Ltd., Wholly Foreign-owned Enterprise, “WFOE” or “Changzhou EZGO”) June 12, 2019 PRC 100 % WFOE, a holding company VIE and subsidiaries of VIE Jiangsu EZGO Electronic Technologies Co., Ltd. (formerly known as Jiangsu Baozhe Electric Technologies, Co., Ltd., “Jiangsu EZGO”) July 30, 2019 PRC VIE Holding company Changzhou Hengmao Power Battery Technology Co., Ltd. (“Hengmao”) May 5, 2014 PRC 80.87 % Sales of battery packs, battery cells, as well as e-bicycles, battery cell trading, and battery and e-bicycle rental services provider Changzhou Yizhiying IoT Technologies Co., Ltd. (“Yizhiying”) August 21, 2018 PRC 100 % Development, operation and maintenance of software related to e-bicycle and battery rental services Jiangsu Cenbird E-Motorcycle Technologies Co., Ltd. (“Cenbird E-Motorcycle”) May 7, 2018 PRC 51 % Development of sales channels and international market for sales of e-bicycles and electric motorcycle (“e-motorcycle”) Tianjin Dilang Technologies Co., Ltd. (“Dilang”) July 2, 2019 PRC 80 % Production and sales of e-bicycles Tianjin Dilang Import and Export Trading Co., Ltd. (“Dilang Trading”) June 18, 2021 PRC 80 % Import and Export trade of e-bicycles Tianjin Jiahao Bicycle Co., Ltd. (“Tianjin Jiahao”) June 28, 2021 PRC 100 % Production and sales of e-bicycles |
Schedule of consolidated financial statements | As of September 30, 2020 2021 Cash $ 322,598 $ 4,508,752 Restrict cash 17,932 15,354 Amount due from non-VIE - 1,914,828 Amount due from EZGO - 316,524 Current assets of discontinued operation 750,784 91,997 Total current asset 16,316,861 23,880,044 Non-current asset 3,500,937 14,332,061 Total assets 19,817,798 38,212,105 Amount due to non-VIE - 13,323,711 Amount due to EZGO - 3,017,337 Current liabilities of discontinued operation 1,119,684 809,221 Total current liability 6,672,653 25,704,104 Total liabilities $ 6,672,653 $ 25,704,104 For the fiscal years ended 2019 2020 2021 Revenues $ 1,371,201 $ 15,243,282 $ 19,628,860 Income (loss) from operations 775,863 71,966 (3,497,613 ) Other income (loss), net 265,200 378,395 (75,873 ) Net income (loss) from continuing operations 767,136 334,298 (2,677,940 ) Income (loss) from discontinued operation, net of tax 1,424,301 (57,376 ) (36,404 ) Net income (loss) 2,191,437 276,922 (2,714,344 ) Net income (loss) attributable to EZGO’s shareholders $ 1,738,123 $ 147,174 $ (2,279,373 ) Net cash (used in) provided by operating activities $ (2,702,167 ) $ 4,024,769 $ (1,101,659 ) Net cash used in investing activities (1,922,326 ) (3,349,847 ) (12,952,082 ) Net cash provided by (used in) financing activities 8,217,985 (4,004,361 ) 18,157,942 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives | Estimated Useful Life Building 20 years Equipment for rental business 2.5-5 Years Production line for e-bicycles 5-10 Years Furniture, fixtures and office equipment 3-5 Years Vehicles 4-10 Years |
Schedule of revenue from continuing operations | For the years ended 2019 2020 2021 Revenues from continuing operations: Sales of battery packs and e-bicycles $ 171,464 $ 14,313,446 $ 22,520,903 Battery cell trading 1,186,185 - - Others 13,552 929,836 901,103 Net revenues $ 1,371,201 $ 15,243,282 $ 23,422,006 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Credit Loss, Additional Improvements [Abstract] | |
Schedule of accounts receivable and allowance for doubtful accounts | As of September 30, 2020 2021 Accounts receivable $ 6,347,184 $ 6,881,763 Less: allowance for doubtful accounts (21,451 ) (34,155 ) Accounts receivable, net $ 6,325,733 $ 6,847,608 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of investments | As of September 30, 2020 2021 Short-term investments: Wealth management product (1) $ 1,472,841 $ 1,611,015 Convertible debt instrument (2) 736,420 775,988 Total short- term investments $ 2,209,261 $ 2,387,003 Long-term investments - 132,621 Total investments $ 2,209,261 $ 2,519,624 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories consisted | As of September 30, 2020 2021 Finished goods (1) $ 610,751 $ 635,851 Raw materials (2) 237,453 352,539 Others 19,548 52,054 Reserve - (116,102 ) Inventories $ 867,752 $ 924,342 |
Advances to Suppliers, Net (Tab
Advances to Suppliers, Net (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Major Suppliers [Abstract] | |
Schedule of advances to suppliers and allowance for doubtful accounts | As of September 30, 2020 2021 Prepayment for purchase of e-bicycles materials $ 956,192 $ 4,094,894 Prepayment for purchase of battery packs 1,584,605 2,953,616 Prepayment for purchase of battery cells for trading business 84,354 - Prepayment for service fees related to e-bicycles manufacturing licenses 120,936 - Others 38,650 444,444 2,784,737 7,492,954 Less: allowance for doubtful accounts (84,354 ) (88,416 ) Advances to suppliers, net $ 2,700,383 $ 7,404,538 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets, Net (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of prepaid expenses and other current assets | As of September 30, 2020 2021 Prepaid construction fee (1) $ - $ 384,425 Prepaid exhibition fee - 80,796 Prepaid rental fee 53,784 74,288 Prepaid IPO related expense 759,365 - Receivable from disposal of a production line 14,394 - Others 67,924 70,093 Less: allowance for doubtful accounts (14,394 ) - Prepaid expenses and other current assets $ 881,073 $ 609,602 |
Propery, Plants and Equipment_2
Propery, Plants and Equipment, Net (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of propery plants and equipment net | As of September 30, 2020 2021 Building $ - $ 6,020,735 Equipment for rental business 1,312,816 1,401,580 Production line for e-bicycles 1,118,521 1,267,954 leasehold improvement - 541,096 Furniture, fixtures and office equipment 44,869 127,957 Vehicles 29,121 120,879 Property, plants and equipment 2,505,327 9,480,201 Less: accumulated depreciation (135,436 ) (733,815 ) Property, plants and equipment, net $ 2,369,891 $ 8,746,386 |
Land Use Right (Tables)
Land Use Right (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Land Use Right [Abstract] | |
Schedule of future amortization | Years ending September 30, Amount 2022 $ 123,217 2023 123,217 2024 123,217 2025 123,217 2026 and thereafter 4,017,981 $ 4,510,849 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other payables | As of September 30, 2020 2021 Other taxes payable (1) $ 3,502,262 $ 6,559,454 Payroll payable 181,583 292,126 Others 69,972 291,050 Accrued expenses and other payables $ 3,753,817 $ 7,142,630 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term borrowings | As of September 30, 2020 2021 Short-term borrowings $ 299,315 $ 310,395 |
Related Party Transactions an_2
Related Party Transactions and Balances (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of amount due from and due to related parties | As of September 30, 2020 2021 Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd. (g) (1) $ - $ 1,771,585 Jiangsu Xinzhongtian Suye Co., Ltd. (h) (1) 419,758 678,600 Shenzhen Star Cycling Network Technology Co., Ltd.(l) (2) - 310,395 Nanjing Mingfeng Technology Co.,Ltd.(m) (2) - 228,774 Huajian Xu (c) (3) 19,471 265,357 Shuang Wu (d) (3) - 163,448 Huiyan Xie (b) (3) - 71,636 Beijing Weiqi Technology Co., Ltd.(k) (4) 17,790 32,830 Yan Fang(e) (3) 981 - Jianhui Ye (f) (3) 119,035 2,010 Amount due from related parties-current $ 577,035 $ 3,524,635 Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd. (5) $ 294,568 $ 310,395 Amount due from related parties-non-current $ 294,568 $ 310,395 As of September 30, 2020 2021 Yan Fang(e) (1) $ - $ 70,840 Shenzhen Star Asset Management Co., Ltd. (i) (2) 957 1,009 Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd. (g) (2) 340,340 - Huajian Xu(c) (1) 287,270 - Shuang Wu(d) (1) 72,847 - Huiyan Xie(b) (1) 32,557 - Jianhui Ye (f) (1) 20,312 - Amount due to related parties $ 754,283 $ 71,849 |
Schedule of material related party transactions | For the fiscal years ended Related Parties Nature 2019 2020 2021 Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd (g) Purchase of e-bicycles from a related party $ - $ (4,538,100 ) $ (6,048,053 ) Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd (g) Interest-free loan to a related party - 856,458 - Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd (g) Collection of loan to a related party - (856,458 ) - Jiangsu Xinzhongtian Suye Co., Ltd (h) Purchase of e-bicycles, gears and parts from a related party - (851,606 ) (915,213 ) Jiangsu Xinzhongtian Suye Co., Ltd (h) Rental fee and utility fee - (63,378 ) (146,607 ) Jiangsu Xinzhongtian Suye Co., Ltd (h) Interest-free loan to a related party - 185,566 - Jiangsu Xinzhongtian Suye Co., Ltd (h) Collection of loan to a related party - (186,993 ) - Shenzhen Star Cycling Network Technology Co., Ltd.(l) Loan to a related party - - 310,395 Nanjing Mingfeng Technology Co.,Ltd.(m) Loan to a related party - - 228,774 Jiangsu Yimao Pure Electric Bus Co., Ltd. (j) Purchase of battery cells for battery cell trading business (5,334,619 ) - - Jiangsu Yimao Pure Electric Bus Co., Ltd. (j) Purchase of raw materials and finished goods (2,428,036 ) - - Henglong Chen (a) Interest-free loan to a shareholder* 1,857,441 377,634 - Henglong Chen (a) Collection of loan from a shareholder * (683,880 ) (391,116 ) (1,821,847 ) Henglong Chen (a) Transfer of third-party loans to a related party* 59,682 - - Huiyan Xie Interest-free loan to a related party 101,896 - - Huiyan Xie Collection of loan from a related party (101,896 ) - - Shenzhen Star Asset Management Co., Ltd. (i) Rental expenses of e-bicycles (176,862 ) - - Shenzhen Star Asset Management Co., Ltd. (i) Disposal of e-bicycles on behalf of a related party (291,131 ) - - Shenzhen Star Asset Management Co., Ltd. (i) Purchase of e-bicycles from a related party (873,394 ) - - Jianhui Ye (f) Interest-free loan from a related party (4,374,249 ) - - Jianhui Ye (f) Repayment of interest-free loan to a related party - 4,289,426 - Beijing Weiqi Technology Co., Ltd (k) Sales of e-bicycles to a related party - 107,314 12,341 |
Discontinued Operation (Tables)
Discontinued Operation (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of current assets and current liabilities of the discontinued operation | As of September 30, 2020 2021 Assets of discontinued operation Accounts receivable* $ 393,531 $ 82,790 Advance to suppliers 1,077 1,135 Other receivable and prepaid expense 356,176 8,072 Total current assets 750,784 91,997 Property, plant and equipment, net 739,154 46,381 Total assets $ 1,489,938 $ 138,378 Liabilities of discontinued operation Accounts payable 320,001 293,073 Advance from customers 35,324 35,971 Other payable 286,462 664 Income tax payable 477,897 479,513 Total current liabilities 1,119,684 809,221 Total liabilities $ 1,119,684 $ 809,221 |
Schedule of revenues and income(loss) from discontinued operation | For the years ended 2019 2020 2021 Net revenues $ 6,334,585 $ 1,595,227 $ 342,636 Cost of revenues (3,779,369 ) (1,348,578 ) (292,266 ) Loss on the disposal of the production line (151,298 ) - - Income (loss) from discontinued operation before income tax 1,960,866 (76,291 ) (26,272 ) Income tax benefit (expense) (536,565 ) 18,915 (10,132 ) Income (loss) from discontinued operation, net of income tax $ 1,424,301 $ (57,376 ) $ (36,404 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of the income tax provision from continuing operations | For the years ended September 30, 2019 2020 2021 Current $ 126,267 $ 160,540 $ 68,650 Deferred 147,660 (44,477 ) (488,055 ) Total income tax expense (benefit) $ 273,927 $ 116,063 $ (419,405 ) |
Schedule of reconciliations of the statutory income tax rate and the company’s effective income tax rate | For the years ended September 30, 2019 2020 2021 Net income (loss) before provision for income taxes $ 1,041,063 $ 450,361 $ (3,796,645 ) PRC statutory tax rate 25 % 25 % 25 % Income tax at statutory tax rate 260,266 112,590 (949,161 ) Expenses not deductible for tax purpose 2,194 3,492 6,856 Effect of income tax rate differences in jurisdictions other than the PRC - - 123,889 Effect on valuation allowance 11,467 (19 ) 399,011 Income tax expense (benefit) $ 273,927 $ 116,063 $ (419,405 ) Effective tax rates 26 % 26 % 11 % |
Schedule of deferred tax asset and liability | As of September 30, 2020 2021 Deferred tax assets: Tax loss carry forwards $ 101,848 $ 951,323 Bad debt allowance - 236 Reserve of inventory - 26,757 Advertising expense 7,061 23,995 Less: valuation allowance (11,585 ) (416,883 ) Deferred tax assets, net $ 97,324 $ 585,428 |
Schedule of valuation allowance provision for deferred tax assets | For the fiscal years ended 2019 2020 2021 Balance as of October 1, $ - $ 11,138 $ 11,585 Current year addition (reduction) 11,467 (19 ) 399,011 Exchange rate effect (329 ) 466 6,287 Balance as of September 30, $ 11,138 $ 11,585 $ 416,883 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of exercised an over-allotment option | Number Weighted Contractual Intrinsic Options Outstanding as of September 30, 2020 - - - - Options Exercisable as of September 30, 2020 - - - - Options granted 420,000 4 45 - Options exercises (238,500 ) 4 45 - Options expired (181,500 ) 4 45 - Options Outstanding as of September 30, 2021 - - - - Options Exercisable as of September 30, 2021 - - - - |
Schedule of warrant shares granted to investors | Ordinary Weighted Contractual Intrinsic Warrants outstanding as of September 30, 2020 - - - - Warrants Exercisable as of September 30, 2020 - - - - Warrants granted 2,316,669 $ 4.75 2.39 - Warrants exercises (303,850 ) $ 4.40 - - Warrants expired - - - - Warrants Outstanding as of September30, 2021 2,012,819 $ 4.81 1.67 - Warrants Exercisable as of September 30, 2021 2,012,819 $ 4.81 1.67 - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments required under operating leases | Years ending September 30, Amount 2022 $ 219,020 2023 141,527 2024 83,807 2025 54,319 2026 and thereafter - $ 498,673 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of each reportable segment’s revenue and income | Fiscal year ended September 30, 2019 Battery E-bicycle Subtotal from operating Other Consolidated Revenues from external customers $ 1,253,569 $ 104,080 $ 1,357,649 $ 13,552 $ 1,371,201 Depreciation and amortization $ - $ (424 ) $ (424 ) $ (3,178 ) $ (3,602 ) Segment income before tax $ 1,119,568 $ 32,994 $ 1,152,562 $ (111,499 ) $ 1,041,063 Segment gross profit margin 96 % (2 )% 87 % 39 % 86 % Fiscal year ended September 30, 2020 Battery E-bicycle Subtotal from operating Other Consolidated Revenues from external customers $ 3,148,156 $ 11,165,290 $ 14,313,446 $ 929,836 $ 15,243,282 Depreciation and amortization $ (2,318 ) $ (82,896 ) $ (85,214 ) $ (466 ) $ (85,680 ) Segment income (loss) before tax $ 251,731 $ 169,452 $ 421,183 $ 29,178 $ 450,361 Segment gross profit margin 15 % 9 % 11 % 10 % 11 % Fiscal year ended September 30, 2021 Battery cells and packs segment E-bicycle sales segment Subtotal from operating segments Other Consolidated Revenues from external customers $ 4,288,366 $ 18,232,537 $ 22,520,903 $ 901,103 $ 23,422,006 Depreciation and amortization $ (804 ) $ (139,501 ) $ (140,305 ) $ (329,543 ) $ (469,848 ) Segment income (loss) before tax $ 16,902 $ (2,034,515 ) $ (2,017,613 ) $ (1,779,032 ) $ (3,796,645 ) Segment gross profit margin 3.2 % 1.6 % 1.9 % (4.4 )% 1.6 % |
Schedule of reconciliation from reportable segment income | For the fiscal years ended 2019 2020 2021 Net revenues Total revenues from reportable segments $ 1,357,649 $ 14,313,446 $ 22,520,903 Other revenues 13,552 929,836 901,103 Consolidated net revenues $ 1,371,201 $ 15,243,282 $ 23,422,006 Income or loss Total operating income (loss) for reportable segments $ 1,149,103 $ 186,758 $ (2,040,656 ) Other income for reportable segments 3,459 234,425 23,043 Total income for reportable segments 1,152,562 421,183 (2,017,613 ) Unallocated amounts: Other corporate (expense) gain (111,499 ) 29,178 (1,779,032 ) Consolidated income from continuing operations before income taxes $ 1,041,063 $ 450,361 $ (3,796,645 ) |
Concentrations (Tables)
Concentrations (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Schedule of total accounts receivable | As of 2020 As of Customer Amount % of Total Amount % of Total A $ 644,120 10 % $ 1,289,276 19 % B * * 1,253,742 18 % C * * 1,102,586 16 % D * * 1,083,605 16 % E * * 863,626 12 % F 2,390,789 36 % * * Total $ 3,034,909 46 % $ 5,592,835 81 % |
Schedule of customer that accounted total revenue | Fiscal year ended Fiscal year ended Fiscal year ended Customer Amount % of Total Amount % of Total Amount % of Total A $ * * $ * * $ 3,062,302 13 % B * * * * 2,230,798 10 % F * * 4,065,411 24 % * * G 1,158,818 22 % * * * * H 867,411 17 % * * * * I 642,683 12 % * * * * J 578,489 11 % * * * * Total $ 3,247,401 62 % $ 4,065,411 24 % $ 5,293,100 23 % |
Schedule of each supplier that accounted total purchase | Fiscal year ended Fiscal year ended Fiscal year ended Supplier Amount % of Total Amount % of Total Amount % of Total A * * $ * * $ 3,485,941 16 % B * * * * 2,420,798 11 % C 504,889 63 % 4,320,110 26 % * * D * * 2,141,144 13 % * * E 110,940 14 % * * * * Total 615,829 77 % $ 6,461,254 39 % $ 5,906,739 27 % |
Condensed Financial Informati_2
Condensed Financial Information of The Parent Company (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of parent company balance sheets | As of September 30, 2020 2021 ASSETS Cash and cash equivalents $ - $ 175,437 Restricted cash - 1,100,000 Receivable from VIE - 3,017,337 Receivable from Non-VIE - 15,853,200 Long term investment 8,869,462 8,736,137 Total assets $ 8,869,462 $ 28,882,111 LIABILITIES AND SHAREHOLDERS’ EQUITY Accrued expenses and other payables 47,585 Amount due to VIE 316,524 Total liabilities - 364,109 Shareholders’ equity Ordinary shares (par value of $0.001 per share; 100,000,000 shares authorized as of September 30, 2020 and 2021; 7,800,000 and 13,626,602 shares issued and outstanding as of September 30, 2020 and 2021, respectively) 7,800 13,627 Subscription receivable (7,800 ) (7,800 ) Receivables due from a shareholder (4,737,521 ) (3,152,179 ) Additional paid-in capital 12,290,900 32,493,461 Retained earnings 1,575,630 (1,423,614 ) Accumulated other comprehensive (loss)/income (259,547 ) 594,507 Total shareholders’ equity 8,869,462 28,518,002 Total liabilities and shareholders’ equity $ 8,869,462 $ 28,882,111 |
Schedule of income and comprehensive income | For the fiscal years ended 2019 2020 2021 General and administrative expenses $ - $ - $ (495,835 ) Total operating expenses - - (495,835 ) Loss from operation - - (495,835 ) Other income: Share of earnings (loss) from subsidiaries, VIE and its subsidiaries 1,738,123 $ 147,174 $ (2,483,117 ) Other income - - 279 Income (loss) before income tax expense 1,738,123 147,174 (2,978,673 ) Income tax expense - - - Net income/(Loss) 1,738,123 147,174 (2,978,673 ) Other comprehensive income: Foreign currency translation (loss) income, net of nil income taxes (192,550 ) 397,110 795,593 Available-for-sale debt investments - - 58,461 Total comprehensive income/(loss) $ 1,545,573 $ 544,284 $ (2,124,619 ) |
Schedule of cash flow | For the fiscal years ended 2019 2020 2021 Cash flows from operating activities $ - $ - $ (801,208 ) Payment on behalf of VIE - - (3,017,337 ) Loan to subsidiary - - (15,853,200 ) Cash flows from investing activities - - (18,870,537 ) Cash receipts from equity issuance, net of issuance cost 20,947,182 Cash flows from financing activities - - 20,947,182 Effect of exchange rate changes - - - Net increase in cash, cash equivalents and restricted cash - - 1,275,437 Cash, cash equivalents and restricted cash, at beginning of year - - - Cash, cash equivalents and restricted cash, at end of year $ - $ - $ 1,275,437 |
Organization and Principal Ac_3
Organization and Principal Activities (Details) - USD ($) | Nov. 08, 2019 | Sep. 30, 2021 | Sep. 30, 2020 |
Organization and Principal Activities (Details) [Line Items] | |||
Percentage of service fees | 95% | ||
Description of term | The Exclusive Management Consulting and Technical Service Agreement is effective for twenty years unless earlier terminated as set forth in the agreement or other written agreements entered into by the parties thereto. | ||
Annual interest rate | 24% | ||
Term loan | 20 years | ||
Net assets | $ 12,508,001 | $ 13,145,145 | |
Ownership [Member] | Jiangsu Baozhe [Member] | |||
Organization and Principal Activities (Details) [Line Items] | |||
Equity interest | $ 1 |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of consolidated financial statements reflect the activities | 12 Months Ended |
Sep. 30, 2021 | |
Hong Kong JKC Group Co., Ltd (JKC HK) [Member] | |
Wholly owned subsidiaries | |
Date of Incorporation | Feb. 13, 2019 |
Place of incorporation | HK |
Principal Activities | Investment holding company |
‣ Changzhou Langyi Electronic Technologies Co., Ltd. [Member] | |
Wholly owned subsidiaries | |
Date of Incorporation | Aug. 06, 2021 |
Place of incorporation | PRC |
Principal Activities | WFOE |
Changzhou Jiekai New Energy Technology Co., Ltd. [Member] | |
Wholly owned subsidiaries | |
Date of Incorporation | Jun. 12, 2019 |
Place of incorporation | PRC |
Principal Activities | WFOE, a holding company |
Jiangsu Baozhe Electric Technologies Co., Ltd. (“Jiangsu Baozhe”) [Member] | |
Wholly owned subsidiaries | |
Date of Incorporation | Jul. 30, 2019 |
Place of incorporation | PRC |
Principal Activities | Holding company |
Changzhou Hengmao Power Battery Technology Co., Ltd. (“Hengmao”) [Member] | |
Wholly owned subsidiaries | |
Date of Incorporation | May 05, 2014 |
Place of incorporation | PRC |
Principal Activities | Sales of battery packs, battery cells, as well as e-bicycles, battery cell trading, and battery and e-bicycle rental services provider |
Changzhou Yizhiying IoT Technologies Co., Ltd. (“Yizhiying”) [Member] | |
Wholly owned subsidiaries | |
Date of Incorporation | Aug. 21, 2018 |
Place of incorporation | PRC |
Principal Activities | Development, operation and maintenance of software related to e-bicycle and battery rental services |
Jiangsu Cenbird E-Motorcycle Technologies Co., Ltd. (“Cenbird E-Motorcycle”) [Member] | |
Wholly owned subsidiaries | |
Date of Incorporation | May 07, 2018 |
Place of incorporation | PRC |
Principal Activities | Development of sales channels and international market for sales of e-bicycles and electric motorcycle (“e-motorcycle”) |
Tianjin Dilang Technologies Co., Ltd. (“Dilang”) [Member] | |
Wholly owned subsidiaries | |
Date of Incorporation | Jul. 02, 2019 |
Place of incorporation | PRC |
Principal Activities | Production and sales of e-bicycles |
‣ Tianjin Dilang Import and Export Trading Co., Ltd. (“Dilang Trading”) [Member] | |
Wholly owned subsidiaries | |
Date of Incorporation | Jun. 18, 2021 |
Place of incorporation | PRC |
Principal Activities | Import and Export trade of e-bicycles |
‣ Tianjin Jiahao Bicycle Co., Ltd. (“Tianjin Jiahao”) [Member] | |
Wholly owned subsidiaries | |
Date of Incorporation | Jun. 28, 2021 |
Place of incorporation | PRC |
Principal Activities | Production and sales of e-bicycles |
Ownership [Member] | Hong Kong JKC Group Co., Ltd (JKC HK) [Member] | |
Wholly owned subsidiaries | |
Percentage of effective ownership | 100% |
Ownership [Member] | ‣ Changzhou Langyi Electronic Technologies Co., Ltd. [Member] | |
Wholly owned subsidiaries | |
Percentage of effective ownership | 100% |
Ownership [Member] | Changzhou Jiekai New Energy Technology Co., Ltd. [Member] | |
Wholly owned subsidiaries | |
Percentage of effective ownership | 100% |
Ownership [Member] | Jiangsu Baozhe Electric Technologies Co., Ltd. (“Jiangsu Baozhe”) [Member] | |
Wholly owned subsidiaries | |
Percentage of effective ownership | |
Ownership [Member] | Changzhou Hengmao Power Battery Technology Co., Ltd. (“Hengmao”) [Member] | |
Wholly owned subsidiaries | |
Percentage of effective ownership | 80.87% |
Ownership [Member] | Changzhou Yizhiying IoT Technologies Co., Ltd. (“Yizhiying”) [Member] | |
Wholly owned subsidiaries | |
Percentage of effective ownership | 100% |
Ownership [Member] | Jiangsu Cenbird E-Motorcycle Technologies Co., Ltd. (“Cenbird E-Motorcycle”) [Member] | |
Wholly owned subsidiaries | |
Percentage of effective ownership | 51% |
Ownership [Member] | Tianjin Dilang Technologies Co., Ltd. (“Dilang”) [Member] | |
Wholly owned subsidiaries | |
Percentage of effective ownership | 80% |
Ownership [Member] | ‣ Tianjin Dilang Import and Export Trading Co., Ltd. (“Dilang Trading”) [Member] | |
Wholly owned subsidiaries | |
Percentage of effective ownership | 80% |
Ownership [Member] | ‣ Tianjin Jiahao Bicycle Co., Ltd. (“Tianjin Jiahao”) [Member] | |
Wholly owned subsidiaries | |
Percentage of effective ownership | 100% |
Organization and Principal Ac_5
Organization and Principal Activities (Details) - Schedule of consolidated financial statements - VIE [Member] - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Condensed Financial Statements, Captions [Line Items] | |||
Cash | $ 4,508,752 | $ 322,598 | |
Restrict cash | 15,354 | 17,932 | |
Amount due from non-VIE | 1,914,828 | ||
Amount due from EZGO | 316,524 | ||
Current assets of discontinued operation | 91,997 | 750,784 | |
Total current asset | 23,880,044 | 16,316,861 | |
Non-current asset | 14,332,061 | 3,500,937 | |
Total assets | 38,212,105 | 19,817,798 | |
Amount due to non-VIE | 13,323,711 | ||
Amount due to EZGO | 3,017,337 | ||
Current liabilities of discontinued operation | 809,221 | 1,119,684 | |
Total current liability | 25,704,104 | 6,672,653 | |
Total liabilities | 25,704,104 | 6,672,653 | |
Revenues | 19,628,860 | 15,243,282 | $ 1,371,201 |
Income (loss) from operations | (3,497,613) | 71,966 | 775,863 |
Other income (loss), net | (75,873) | 378,395 | 265,200 |
Net income (loss) from continuing operations | (2,677,940) | 334,298 | 767,136 |
Income (loss) from discontinued operation, net of tax | (36,404) | (57,376) | 1,424,301 |
Net income (loss) | (2,714,344) | 276,922 | 2,191,437 |
Net income (loss) attributable to EZGO’s shareholders | (2,279,373) | 147,174 | 1,738,123 |
Net cash (used in) provided by operating activities | (1,101,659) | 4,024,769 | (2,702,167) |
Net cash used in investing activities | (12,952,082) | (3,349,847) | (1,922,326) |
Net cash provided by (used in) financing activities | $ 18,157,942 | $ (4,004,361) | $ 8,217,985 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||||||
Sep. 30, 2021 USD ($) $ / shares | Sep. 30, 2021 CNY (¥) | Sep. 30, 2020 USD ($) $ / shares | Sep. 30, 2019 USD ($) $ / shares | Sep. 30, 2021 ¥ / shares | Sep. 30, 2020 ¥ / shares | Sep. 30, 2019 ¥ / shares | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Restricted bank deposits | $ 1,115,354 | $ 17,932 | |||||
Bad debt expense | 35,323 | 83,370 | |||||
Reserve recognized | $ 114,964 | ||||||
Land use right term period | 36 years 6 months | 36 years 6 months | |||||
Advances from customers | $ 94,899 | $ 154,554 | |||||
Statute of limitations extended term period | 5 years | 5 years | |||||
Underpayment of taxes | $ (14,138) | ¥ 100,000 | |||||
Exception of equity | (per share) | $ 1 | $ 1 | ¥ 6.4434 | ¥ 6.7896 | |||
Average translation rates | (per share) | $ 1 | $ 1 | $ 1 | ¥ 6.5072 | ¥ 7.0056 | ¥ 6.8698 | |
Accounts Receivable [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Bad debt expense | $ 1,321 | $ 20,790 | |||||
Suppliers [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Bad debt expense | $ 83,370 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives | 12 Months Ended |
Sep. 30, 2021 | |
Building [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Property, plants and equipment, Estimated Useful Life | 20 years |
Equipment for rental business [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Property, plants and equipment, Estimated Useful Life | 2 years 6 months |
Equipment for rental business [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Property, plants and equipment, Estimated Useful Life | 5 years |
Production line for e-bicycles [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Property, plants and equipment, Estimated Useful Life | 5 years |
Production line for e-bicycles [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Property, plants and equipment, Estimated Useful Life | 10 years |
Furniture, fixtures and office equipment [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Property, plants and equipment, Estimated Useful Life | 3 years |
Furniture, fixtures and office equipment [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Property, plants and equipment, Estimated Useful Life | 5 years |
Vehicles [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Property, plants and equipment, Estimated Useful Life | 4 years |
Vehicles [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Property, plants and equipment, Estimated Useful Life | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of revenue from continuing operations - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues from continuing operations: | |||
Sales of battery packs and e-bicycles | $ 22,520,903 | $ 14,313,446 | $ 171,464 |
Battery cell trading | 1,186,185 | ||
Others | 901,103 | 929,836 | 13,552 |
Net revenues | $ 23,422,006 | $ 15,243,282 | $ 1,371,201 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of accounts receivable and allowance for doubtful accounts - Accounts Receviable Net [Member] - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Accounts Receivable, Net (Details) - Schedule of accounts receivable and allowance for doubtful accounts [Line Items] | ||
Accounts receivable | $ 6,881,763 | $ 6,347,184 |
Less: allowance for doubtful accounts | (34,155) | (21,451) |
Accounts receivable, net | $ 6,847,608 | $ 6,325,733 |
Investments (Details)
Investments (Details) - USD ($) | 12 Months Ended | |||
Sep. 24, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 12, 2020 | |
Short Term Investments [Abstract] | ||||
Wealth management duration | 1 year 6 months | |||
Unrealized gain loss | $ 58,461 | |||
Convertible debt instrument annual interest rate | 6% | |||
Interest income or loss | $ 43,493 |
Investments (Details) - Schedul
Investments (Details) - Schedule of investments - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 | |
Short-term investments: | |||
Wealth management product | [1] | $ 1,611,015 | $ 1,472,841 |
Convertible debt instrument | [2] | 775,988 | 736,420 |
Total short-term investments | 2,387,003 | 2,209,261 | |
Long-term investments | 132,621 | ||
Total investments | $ 2,519,624 | $ 2,209,261 | |
[1]Wealth management product is deposits in a financial institution with variable interest rate and not-guaranteed principal. The wealth management product was bought on September 24, 2020, and carried at fair value. It had duration of 1.5 years, during which the Company could redeem the wealth management product at its discretion. For the fiscal years ended September 30, 2020 and 2021, there were no interest income or loss recognized in earnings. There were $nil and $58,461 unrealized gain from the changes in fair values recognized in accumulated other comprehensive income (loss) for the fiscal years ended September 30, 2020 and 2021 respectively.[2]Convertible debt instrument was issued by a private company and redeemable at the Company’s option. The convertible debt instrument is due on June 12, 2021, has annual interest rate of 6% and carried at fair value. For the fiscal years ended September 30, 2020 and 2021, there were $nil and $43,493 interest income or loss recognized in earnings, respectively and no unrealized gain or loss from the changes in fair values recognized in accumulated other comprehensive income (loss). |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of Inventories consisted - Inventories [Member] - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 | |
Inventory [Line Items] | |||
Finished goods | [1] | $ 635,851 | $ 610,751 |
Raw materials | [2] | 352,539 | 237,453 |
Others | 52,054 | 19,548 | |
Reserve | (116,102) | ||
Inventories | $ 924,342 | $ 867,752 | |
[1]Finished goods includes battery packs and e-bicycles.[2]Raw materials mainly include battery cells purchased by the Company for battery packs assembling and e-bicycles production. |
Advances to Suppliers, Net (Det
Advances to Suppliers, Net (Details) - Schedule of advances to suppliers and allowance for doubtful accounts - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Schedule of advances to suppliers and allowance for doubtful accounts [Abstract] | ||
Prepayment for purchase of e-bicycles materials | $ 4,094,894 | $ 956,192 |
Prepayment for purchase of battery packs | 2,953,616 | 1,584,605 |
Prepayment for purchase of battery cells for trading business | 84,354 | |
Prepayment for service fees related to e-bicycles manufacturing licenses | 120,936 | |
Others | 444,444 | 38,650 |
Total | 7,492,954 | 2,784,737 |
Less: allowance for doubtful accounts | (88,416) | (84,354) |
Advances to suppliers, net | $ 7,404,538 | $ 2,700,383 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets, Net (Details) - Schedule of prepaid expenses and other current assets - Prepaid Expenses and Other Current Assets, Net [Member] - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 | |
Prepaid Expenses and Other Current Assets, Net (Details) - Schedule of prepaid expenses and other current assets [Line Items] | |||
Prepaid construction fee | [1] | $ 384,425 | |
Prepaid exhibition fee | 80,796 | ||
Prepaid rental fee | 74,288 | 53,784 | |
Prepaid IPO related expense | 759,365 | ||
Receivable from disposal of a production line | 14,394 | ||
Others | 70,093 | 67,924 | |
Less: allowance for doubtful accounts | (14,394) | ||
Prepaid expenses and other current assets | $ 609,602 | $ 881,073 | |
[1]The balance represented prepaid construction fee for plant maintenance and renovation. |
Propery, Plants and Equipment_3
Propery, Plants and Equipment, Net (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 439,044 | $ 85,680 | $ 3,602 |
Proceeds from property plants and equipment | 453,652 | 206,355 | |
Gain on disposal of property, plants and equipment | $ (14,764) | $ 143,857 |
Propery, Plants and Equipment_4
Propery, Plants and Equipment, Net (Details) - Schedule of propery plants and equipment net - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plants and equipment | $ 9,480,201 | $ 2,505,327 |
Less: accumulated depreciation | (733,815) | (135,436) |
Property, plants and equipment, net | 8,746,386 | 2,369,891 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plants and equipment | 6,020,735 | |
Equipment for Rental Business [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plants and equipment | 1,401,580 | 1,312,816 |
Production Line for E-Bicycles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plants and equipment | 1,267,954 | 1,118,521 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plants and equipment | 541,096 | |
Furniture, Fixtures and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plants and equipment | 127,957 | 44,869 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plants and equipment | $ 120,879 | $ 29,121 |
Land Use Right (Details)
Land Use Right (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jun. 28, 2021 | Apr. 19, 2021 | Sep. 30, 2021 | |
Land Use Right (Details) [Line Items] | |||
Land use right, description | On June 28, 2021, Jiangsu EZGO has completed the asset acquisition of Tianjin Jiahao with an aggregate consideration of approximately US$10.16 million, and Tianjin Jiahao became Jiangsu EZGO’s wholly owned subsidiary. | ||
Land use right term period | 36 years 6 months | ||
Amortization expense | $ 30,804 | ||
Jiangsu EZGO [Member] | |||
Land Use Right (Details) [Line Items] | |||
Percentage of outstanding shares | 100% |
Land Use Right (Details) - Sche
Land Use Right (Details) - Schedule of future amortization | Sep. 30, 2021 USD ($) |
Schedule of future amortization [Abstract] | |
2022 | $ 123,217 |
2023 | 123,217 |
2024 | 123,217 |
2025 | 123,217 |
2026 and thereafter | 4,017,981 |
Total of future amortization | $ 4,510,849 |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Payables and Accruals [Abstract] | ||
VAT payable | $ 5,875,913 | $ 3,124,232 |
Accrued Expenses and Other Pa_4
Accrued Expenses and Other Payables (Details) - Schedule of accrued expenses and other payables - Accrued Expenses and Other Payables [Member] - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 | |
Accrued Expenses and Other Payables (Details) - Schedule of accrued expenses and other payables [Line Items] | |||
Other taxes payable | [1] | $ 6,559,454 | $ 3,502,262 |
Payroll payable | 292,126 | 181,583 | |
Others | 291,050 | 69,972 | |
Accrued expenses and other payables | $ 7,142,630 | $ 3,753,817 | |
[1]The balance mainly represented the VAT payable of $3,124,232 and $ 5,875,913 as of September 30, 2020 and 2021, respectively. |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) | 12 Months Ended | ||||||
Aug. 11, 2020 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | Sep. 30, 2019 USD ($) | Aug. 12, 2021 USD ($) | Aug. 12, 2021 CNY (¥) | Aug. 11, 2020 CNY (¥) | |
Short-Term Borrowings (Details) [Line Items] | |||||||
Interest expenses | $ 12,107 | $ 21,686 | $ 19,180 | ||||
Bank of Jiangsu [Member] | |||||||
Short-Term Borrowings (Details) [Line Items] | |||||||
Non revolving loan facility | $ (294,568) | ¥ 2,000,000 | |||||
Interest rate | 4.35% | ||||||
Term of bank loan | 12 months | ||||||
WeBank [Member] | |||||||
Short-Term Borrowings (Details) [Line Items] | |||||||
Non revolving loan facility | $ (310,395) | ¥ 2,000,000 |
Short-Term Borrowings (Detail_2
Short-Term Borrowings (Details) - Schedule of Short-Term borrowings - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Schedule of Short-Term borrowings [Abstract] | ||
Short-term borrowings | $ 310,395 | $ 299,315 |
Related Party Transactions an_3
Related Party Transactions and Balances (Details) | 12 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Annual interest rate | 5% |
Related Party Transactions an_4
Related Party Transactions and Balances (Details) - Schedule of amount due from and due to related parties - Related Party Transactions and Balances [Member] - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Related Party Transaction [Line Items] | |||
Amount due to related parties | $ 71,849 | $ 754,283 | |
Amount due from related parties-current | 3,524,635 | 577,035 | |
Amount due from related parties-non-current | 310,395 | 294,568 | |
Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due to related parties | [1] | 1,771,585 | |
Amount due from related parties-current | [2],[3] | 340,340 | |
Amount due from related parties-non-current | [4] | 310,395 | 294,568 |
Jiangsu Xinzhongtian Suye Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due from related parties-current | [1] | 678,600 | 419,758 |
Shenzhen Star Cycling Network Technology Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due from related parties-current | [2] | 310,395 | |
Nanjing Mingfeng Technology Co.,Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due from related parties-current | [2] | 228,774 | |
Huajian Xu [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due to related parties | [1] | 287,270 | |
Amount due from related parties-current | [3] | 265,357 | 19,471 |
Shuang Wu [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due to related parties | [1] | 72,847 | |
Amount due from related parties-current | [3] | 163,448 | |
Huiyan Xie [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due to related parties | [1] | 32,557 | |
Amount due from related parties-current | [3] | 71,636 | |
Beijing Weiqi Technology Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due from related parties-current | [5] | 32,830 | 17,790 |
Yan Fang [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due to related parties | [1] | 70,840 | |
Amount due from related parties-current | [3] | 981 | |
Jianhui Ye [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due from related parties-current | [3] | 2,010 | 119,035 |
Shenzhen Star Asset Management Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due to related parties | [2] | 1,009 | 957 |
Jianhui Ye [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due from related parties-current | [1] | $ 20,312 | |
[1]The balance mainly represented the prepayments for purchasing e-bicycle gears and e-bicycles.[2]The balance mainly represented loans with annual interest rate of 5% to associates.[3]The balances mainly represented the advances made to the managements for the Company’s daily operational purposes.[4]The balance mainly represented the deposit for conducting original design manufacture (“ODM”) of e-bicycles and the deposit will be returned in one year after the termination of the contract or after the Company stops selling produced e-bicycles.[5]The balance represented the receivable generated from the sales of e-bicycles. |
Related Party Transactions an_5
Related Party Transactions and Balances (Details) - Schedule of material related party transactions - USD ($) | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | Purchase of e-bicycles from a related party | |||
Related party transactions | $ (6,048,053) | $ (4,538,100) | ||
Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | Interest-free loan to a related party | |||
Related party transactions | $ 856,458 | |||
Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | Collection of loan to a related party | |||
Related party transactions | $ (856,458) | |||
Jiangsu Xinzhongtian Suye Co., Ltd [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | Purchase of e-bicycles, gears and parts from a related party | |||
Related party transactions | (915,213) | $ (851,606) | ||
Jiangsu Xinzhongtian Suye Co., Ltd [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | Rental fee and utility fee | |||
Related party transactions | (146,607) | $ (63,378) | ||
Jiangsu Xinzhongtian Suye Co., Ltd [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | Interest-free loan to a related party | |||
Related party transactions | $ 185,566 | |||
Jiangsu Xinzhongtian Suye Co., Ltd [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | Collection of loan to a related party | |||
Related party transactions | $ (186,993) | |||
Shenzhen Star Cycling Network Technology Co., Ltd. [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | Loan to a related party | |||
Related party transactions | 310,395 | |||
Nanjing Mingfeng Technology Co.,Ltd. [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | Loan to a related party | |||
Related party transactions | 228,774 | |||
Jiangsu Yimao Pure Electric Bus Co., Ltd. [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | Purchase of battery cells for battery cell trading business | |||
Related party transactions | (5,334,619) | |||
Jiangsu Yimao Pure Electric Bus Co., Ltd. [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | Purchase of raw materials and finished goods | |||
Related party transactions | (2,428,036) | |||
Henglong Chen [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | [1] | Interest-free loan to a shareholder* | ||
Related party transactions | [1] | $ 377,634 | 1,857,441 | |
Henglong Chen [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | [1] | Collection of loan from a shareholder * | ||
Related party transactions | [1] | (1,821,847) | $ (391,116) | (683,880) |
Henglong Chen [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | [1] | Transfer of third-party loans to a related party* | ||
Related party transactions | [1] | 59,682 | ||
Huiyan Xie [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | Interest-free loan to a related party | |||
Related party transactions | 101,896 | |||
Huiyan Xie [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | Collection of loan from a related party | |||
Related party transactions | (101,896) | |||
Shenzhen Star Asset Management Co., Ltd. [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | Rental expenses of e-bicycles | |||
Related party transactions | (176,862) | |||
Shenzhen Star Asset Management Co., Ltd. [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | Disposal of e-bicycles on behalf of a related party | |||
Related party transactions | (291,131) | |||
Shenzhen Star Asset Management Co., Ltd. [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | Purchase of e-bicycles from a related party | |||
Related party transactions | (873,394) | |||
Jianhui Ye [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | Interest-free loan from a related party | |||
Related party transactions | (4,374,249) | |||
Jianhui Ye [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | Repayment of interest-free loan to a related party | |||
Related party transactions | $ 4,289,426 | |||
Beijing Weiqi Technology Co., Ltd. [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of material related party transactions [Line Items] | ||||
Nature | Sales of e-bicycles to a related party | |||
Related party transactions | $ 12,341 | $ 107,314 | ||
[1]The interest-free loan made to Henglong Chen, a significant shareholder and former Chairman of the Board of the Company, net of repayment was recognized as a deduction to the Company’s equity, see Note 15d. The loans made to Henglong Chen which were for his personal purpose violated Sarbanes-Oxley Act section 402 due to the lack of internal control in term of related party borrowings. The loans are expected to be collected before December 31, 2022. |
Discontinued Operation (Details
Discontinued Operation (Details) - Schedule of current assets and current liabilities of the discontinued operation - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 | |
Assets of discontinued operation | |||
Accounts receivable | [1] | $ 82,790 | $ 393,531 |
Advance to suppliers | 1,135 | 1,077 | |
Other receivable and prepaid expense | 8,072 | 356,176 | |
Total current assets | 91,997 | 750,784 | |
Property, plant and equipment, net | 46,381 | 739,154 | |
Total assets | 138,378 | 1,489,938 | |
Liabilities of discontinued operation | |||
Accounts payable | 293,073 | 320,001 | |
Advance from customers | 35,971 | 35,324 | |
Other payable | 664 | 286,462 | |
Income tax payable | 479,513 | 477,897 | |
Total current liabilities | 809,221 | 1,119,684 | |
Total liabilities | $ 809,221 | $ 1,119,684 | |
[1]The accounts receivables as of September 30, 2021 has been subsequently collected in November 2021. |
Discontinued Operation (Detai_2
Discontinued Operation (Details) - Schedule of revenues and income(loss) from discontinued operation - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of revenues and income(loss) from discontinued operation [Abstract] | |||
Net revenues | $ 342,636 | $ 1,595,227 | $ 6,334,585 |
Cost of revenues | (292,266) | (1,348,578) | (3,779,369) |
Loss on the disposal of the production line | (151,298) | ||
Income (loss) from discontinued operation before income tax | (26,272) | (76,291) | 1,960,866 |
Income tax benefit (expense) | (10,132) | 18,915 | (536,565) |
Income (loss) from discontinued operation, net of income tax | $ (36,404) | $ (57,376) | $ 1,424,301 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Taxes (Details) [Line Items] | |||
Profits tax rates description | Under the two-tiered profits tax rates regime, the first 2 million Hong Kong Dollar (“HKD”) of profits of the qualifying group entity will be taxed at 8.25%, and profits above HKD 2 million will be taxed at 16.5%. | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25% | ||
Income tax dividends | 10% | ||
PRC tax rate | 5% | ||
Effective tax rates | 11% | 26% | 26% |
Deferred tax assets | $ 399,011 | $ 19 | $ 11,467 |
2024 [Member] | |||
Income Taxes (Details) [Line Items] | |||
Net operating loss carried forward | 3,805,292 | ||
2025 [Member] | |||
Income Taxes (Details) [Line Items] | |||
Net operating loss carried forward | 169,487 | ||
2026 [Member] | |||
Income Taxes (Details) [Line Items] | |||
Net operating loss carried forward | 237,905 | ||
PRC [Member] | |||
Income Taxes (Details) [Line Items] | |||
Deferred tax assets | $ 399,011 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of components of the income tax provision from continuing operations - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of components of the income tax provision from continuing operations [Abstract] | |||
Current | $ 68,650 | $ 160,540 | $ 126,267 |
Deferred | (488,055) | (44,477) | 147,660 |
Total income tax expense (benefit) | $ (419,405) | $ 116,063 | $ 273,927 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of reconciliations of the statutory income tax rate and the company’s effective income tax rate - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of reconciliations of the statutory income tax rate and the company’s effective income tax rate [Abstract] | |||
Net income (loss) before provision for income taxes | $ (3,796,645) | $ 450,361 | $ 1,041,063 |
PRC statutory tax rate | 25% | 25% | 25% |
Income tax at statutory tax rate | $ (949,161) | $ 112,590 | $ 260,266 |
Expenses not deductible for tax purpose | $ 6,856 | $ 3,492 | $ 2,194 |
Effect of income tax rate differences in jurisdictions other than the PRC | 123,889% | ||
Effect on valuation allowance | $ 399,011 | $ (19) | $ 11,467 |
Income tax expense (benefit) | $ (419,405) | $ 116,063 | $ 273,927 |
Effective tax rates | 11% | 26% | 26% |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of deferred tax asset and liability - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Deferred tax assets: | ||
Tax loss carry forwards | $ 951,323 | $ 101,848 |
Bad debt allowance | 236 | |
Reserve of inventory | 26,757 | |
Advertising expense | 23,995 | 7,061 |
Less: valuation allowance | (416,883) | (11,585) |
Deferred tax assets, net | $ 585,428 | $ 97,324 |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of valuation allowance provision for deferred tax assets - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of valuation allowance provision for deferred tax assets [Abstract] | |||
Balance as of October 1, | $ 11,585 | $ 11,138 | |
Current year addition (reduction) | 399,011 | (19) | 11,467 |
Exchange rate effect | 6,287 | 466 | (329) |
Balance as of September 30, | $ 416,883 | $ 11,585 | $ 11,138 |
Equity (Details)
Equity (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||
Jun. 01, 2021 | Sep. 08, 2020 | Sep. 10, 2019 | Jan. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jan. 29, 2021 | Jan. 28, 2021 | Jan. 24, 2019 | |
Equity (Details) [Line Items] | ||||||||||
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 | 50,000 | |||||||
Ordinary shares, par value (in Dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 1 | ||||||
Shares issued | 50,000 | |||||||||
shareholders at par value (in Dollars per share) | $ 1 | |||||||||
Additional authorized shares description | The Company also registered an additional authorized number of ordinary shares of 50,000,000 of par value of $0.001 per share and preferred shares of 10,000 of no par value. Then the shareholders surrendered a pro-rata number of ordinary shares of 42,200,000 to the Company for no consideration and thereafter cancelled. Following the surrender, the issued and outstanding ordinary shares were 7,800,000 of par value of $0.001 per share. | |||||||||
Ordinary shares | 7,800,000 | 7,800,000 | 1,794,871 | |||||||
Offering price, per share (in Dollars per share) | $ 4.68 | |||||||||
Gross proceeds (in Dollars) | $ 12,000,000 | |||||||||
Net proceeds (in Dollars) | $ 10,881,576 | |||||||||
Shares of public offering | 2,564,102 | |||||||||
Warrants per share | 0.7 | |||||||||
Net profit after income tax | 10% | |||||||||
Statutory reserve | 50% | |||||||||
Statutory reserve from cash dividends (in Dollars) | $ 233,413 | $ 212,842 | ||||||||
Restricted net assets (in Dollars) | 28,064,866 | 12,290,900 | ||||||||
Receivables from shareholder (in Dollars) | $ 3,152,179 | $ 4,737,521 | ||||||||
Option to purchase shares | 420,000 | |||||||||
Exercise price per share (in Dollars per share) | $ 4.68 | |||||||||
Warrant shares | 224,289 | 217,948 | ||||||||
Ordinary share excise price (in Dollars per share) | $ 5.85 | |||||||||
Non-controlling interests | 49% | 20% | 19.13% | |||||||
Warrant [Member] | ||||||||||
Equity (Details) [Line Items] | ||||||||||
Ordinary shares | 303,850 | |||||||||
Exercise price per share (in Dollars per share) | $ 4.4 | |||||||||
Share price (in Dollars per share) | $ 4.4 | |||||||||
Minimum [Member] | ||||||||||
Equity (Details) [Line Items] | ||||||||||
Ordinary shares, shares authorized | 50,000 | |||||||||
Ordinary shares, par value (in Dollars per share) | $ 0.001 | |||||||||
Maximum [Member] | ||||||||||
Equity (Details) [Line Items] | ||||||||||
Ordinary shares, shares authorized | 50,000,000 | |||||||||
Ordinary shares, par value (in Dollars per share) | $ 1 | |||||||||
IPO [Member] | ||||||||||
Equity (Details) [Line Items] | ||||||||||
Ordinary shares | 3,038,500 | |||||||||
Ordinary shares, per share (in Dollars per share) | $ 0.001 | |||||||||
Offering price, per share (in Dollars per share) | $ 4 | |||||||||
Gross proceeds (in Dollars) | $ 12,154,000 | |||||||||
Net proceeds (in Dollars) | $ 10,845,638 | |||||||||
Equity Option [Member] | IPO [Member] | ||||||||||
Equity (Details) [Line Items] | ||||||||||
Ordinary shares | 238,500 | |||||||||
Ordinary shares, per share (in Dollars per share) | $ 4 | |||||||||
Gross proceeds (in Dollars) | $ 954,000 |
Equity (Details) - Schedule of
Equity (Details) - Schedule of exercised an over-allotment option | 12 Months Ended |
Sep. 30, 2021 USD ($) $ / shares shares | |
Schedule of exercised an over-allotment option [Abstract] | |
Number Outstanding, Options Outstanding beginning balance | shares | |
Weighted Average Exercise Price,Options Outstanding beginning balance | $ / shares | |
Contractual Life in Days, Options Outstanding beginning balance | |
Intrinsic Value, Options Outstanding beginning balance | $ | |
Number Outstanding, Options Exercisable beginning balance | shares | |
Weighted Average Exercise Price, Options Exercisable beginning balance | $ / shares | |
Contractual Life in Days, Options Exercisable beginning balance | |
Intrinsic Value, Options Exercisable beginning balance | $ | |
Number Outstanding, Options granted | shares | 420,000 |
Weighted Average Exercise Price, Options granted | $ / shares | $ 4 |
Contractual Life in Days, Options granted | 45 days |
Intrinsic Value, Options granted | $ | |
Number Outstanding, Options exercises | shares | (238,500) |
Weighted Average Exercise Price, Options exercises | $ / shares | $ 4 |
Contractual Life in Days, Options exercises | 45 days |
Intrinsic Value, Options exercises | $ | |
Number Outstanding, Options expired | shares | (181,500) |
Weighted Average Exercise Price, Options expired | $ / shares | $ 4 |
Contractual Life in Days, Options expired | 45 days |
Intrinsic Value, Options expired | $ | |
Number Outstanding, Options Outstanding ending balance | shares | |
Weighted Average Exercise Price, Options Outstanding ending balance | $ / shares | |
Contractual Life in Days, Options Outstanding ending balance | |
Intrinsic Value, Options Outstanding ending balance | $ | |
Number Outstanding, Options Exercisable ending balance | shares | |
Weighted Average Exercise Price, Options Exercisable ending balance | $ / shares | |
Contractual Life in Days, Options Exercisable ending balance | |
Intrinsic Value, Options Exercisable ending balance | $ |
Equity (Details) - Schedule o_2
Equity (Details) - Schedule of warrant shares granted to investors - Warrant [Member] | 12 Months Ended |
Sep. 30, 2021 USD ($) $ / shares shares | |
Class of Warrant or Right [Line Items] | |
Ordinary shares number Outstanding, warrants outstanding beginning balance | shares | |
Weighted Average Exercise Price, warrants outstanding beginning balance | $ / shares | |
Contractual Life in Year, warrants outstanding | |
Intrinsic Value, warrants outstanding beginning balance | $ | |
Ordinary shares number Outstanding, warrants exercisable beginning balance | shares | |
Weighted Average Exercise Price, warrants exercisable beginning balance | $ / shares | |
Contractual Life in Year, warrants exercisable | |
Intrinsic Value, warrants exercisable beginning balance | $ | |
Ordinary shares number Outstanding, warrants granted | shares | 2,316,669 |
Weighted Average Exercise Price, warrants granted | $ / shares | $ 4.75 |
Contractual Life in Year, warrants granted | 2 years 4 months 20 days |
Intrinsic Value, warrants granted | $ | |
Ordinary shares number Outstanding, warrants exercises | shares | (303,850) |
Weighted Average Exercise Price, warrants exercises | $ / shares | $ 4.4 |
Intrinsic Value, warrants exercises | $ | |
Ordinary shares number Outstanding, warrants expired | shares | |
Weighted Average Exercise Price, warrants expired | $ / shares | |
Intrinsic Value, warrants expired | $ | |
Ordinary shares number Outstanding, warrants outstanding ending balance | shares | 2,012,819 |
Weighted Average Exercise Price, warrants outstanding ending balance | $ / shares | $ 4.81 |
Contractual Life in Year, warrants outstanding | 1 year 8 months 1 day |
Intrinsic Value, warrants outstanding ending balance | $ | |
Ordinary shares number Outstanding, warrants Exercisable ending balance | shares | 2,012,819 |
Weighted Average Exercise Price, warrants Exercisable ending balance | $ / shares | $ 4.81 |
Contractual Life in Year, warrants Exercisable | 1 year 8 months 1 day |
Intrinsic Value, warrants Exercisable ending balance | $ |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | 1 Months Ended | 12 Months Ended | ||||||||
Jan. 06, 2020 USD ($) | Jan. 06, 2020 CNY (¥) | Jan. 28, 2021 CNY (¥) | Jan. 27, 2021 USD ($) | Jan. 27, 2021 CNY (¥) | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | Sep. 30, 2019 USD ($) | Oct. 21, 2019 USD ($) | Oct. 21, 2019 CNY (¥) | |
Commitments and Contingencies (Details) [Line Items] | ||||||||||
Operating expense | $ | $ 281,102 | $ 165,891 | $ 130,940 | |||||||
Hengmao Power Battery shall [Member] | ||||||||||
Commitments and Contingencies (Details) [Line Items] | ||||||||||
Contract payment | $ 148,804 | ¥ 958,805.4 | ||||||||
Accrued interests (in Yuan Renminbi) | ¥ | ¥ 958,805.4 | |||||||||
Contractual payment | $ 166,459 | ¥ 1,072,560 | ||||||||
Accrued interests and attorney’s fees | $ 166,459 | ¥ 1,072,560 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of future minimum rental payments required under operating leases | Sep. 30, 2021 USD ($) |
Schedule of future minimum rental payments required under operating leases [Abstract] | |
2022 | $ 219,020 |
2023 | 141,527 |
2024 | 83,807 |
2025 | 54,319 |
2026 and thereafter | |
Total of future minimum rental payment | $ 498,673 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of each reportable segment’s revenue and income - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Battery cells and packs segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | $ 4,288,366 | $ 3,148,156 | $ 1,253,569 |
Depreciation and amortization | (804) | (2,318) | |
Segment income (loss) before tax | $ 16,902 | $ 251,731 | $ 1,119,568 |
Segment gross profit margin | 3.20% | 15% | 96% |
E-bicycle sales segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | $ 18,232,537 | $ 11,165,290 | $ 104,080 |
Depreciation and amortization | (139,501) | (82,896) | (424) |
Segment income (loss) before tax | $ (2,034,515) | $ 169,452 | $ 32,994 |
Segment gross profit margin | 1.60% | 9% | (2.00%) |
Subtotal from operating segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | $ 22,520,903 | $ 14,313,446 | $ 1,357,649 |
Depreciation and amortization | (140,305) | (85,214) | (424) |
Segment income (loss) before tax | $ (2,017,613) | $ 421,183 | $ 1,152,562 |
Segment gross profit margin | 1.90% | 11% | 87% |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | $ 901,103 | $ 929,836 | $ 13,552 |
Depreciation and amortization | (329,543) | (466) | (3,178) |
Segment income (loss) before tax | $ (1,779,032) | $ 29,178 | $ (111,499) |
Segment gross profit margin | (4.40%) | 10% | 39% |
Consolidated [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | $ 23,422,006 | $ 15,243,282 | $ 1,371,201 |
Depreciation and amortization | (469,848) | (85,680) | (3,602) |
Segment income (loss) before tax | $ (3,796,645) | $ 450,361 | $ 1,041,063 |
Segment gross profit margin | 1.60% | 11% | 86% |
Segment Reporting (Details) -_2
Segment Reporting (Details) - Schedule of reconciliation from reportable segment income - Reportable Segments [Member] - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total revenues from reportable segments | $ 22,520,903 | $ 14,313,446 | $ 1,357,649 |
Other revenues | 901,103 | 929,836 | 13,552 |
Consolidated net revenues | 23,422,006 | 15,243,282 | 1,371,201 |
Total operating income (loss) for reportable segments | (2,040,656) | 186,758 | 1,149,103 |
Other income for reportable segments | 23,043 | 234,425 | 3,459 |
Total income for reportable segments | (2,017,613) | 421,183 | 1,152,562 |
Other corporate (expense) gain | (1,779,032) | 29,178 | (111,499) |
Consolidated income from continuing operations before income taxes | $ (3,796,645) | $ 450,361 | $ 1,041,063 |
Concentrations (Details)
Concentrations (Details) | 12 Months Ended | ||||
Sep. 30, 2021 USD ($) | Sep. 30, 2021 CNY (¥) | Sep. 30, 2020 USD ($) | Sep. 30, 2019 USD ($) | Sep. 30, 2018 USD ($) | |
Concentrations (Details) [Line Items] | |||||
Cash, cash equivalents and restricted cash (in Dollars) | $ 5,889,885 | $ 340,530 | $ 3,633,645 | $ 27,375 | |
Bank account is insured by the government authority with the maximum limit | $ 70,692 | ¥ 500,000 | |||
Concentrations of customers percentage | 81% | 81% | 46% | ||
Accounts receivable [Member] | |||||
Concentrations (Details) [Line Items] | |||||
Concentrations of customers percentage | 10% | 10% | 10% | ||
Revenue [Member] | |||||
Concentrations (Details) [Line Items] | |||||
Concentrations of customers percentage | 10% | 10% | 10% | ||
Supplier [Member] | |||||
Concentrations (Details) [Line Items] | |||||
Concentrations of customers percentage | 10% | 10% | 10% | 10% |
Concentrations (Details) - Sche
Concentrations (Details) - Schedule of total accounts receivable - USD ($) | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | |||
Accounts Receivable, Noncurrent, Credit Quality Indicator [Line Items] | ||||
Accounts receivable | $ 5,592,835 | $ 3,034,909 | ||
Accounts receivable percentage | 81% | 46% | ||
Customer A [Member] | ||||
Accounts Receivable, Noncurrent, Credit Quality Indicator [Line Items] | ||||
Accounts receivable | $ 1,289,276 | $ 644,120 | ||
Accounts receivable percentage | 19% | 10% | ||
Customer B [Member] | ||||
Accounts Receivable, Noncurrent, Credit Quality Indicator [Line Items] | ||||
Accounts receivable | $ 1,253,742 | [1] | ||
Accounts receivable percentage | 18% | [1] | ||
Customer C [Member] | ||||
Accounts Receivable, Noncurrent, Credit Quality Indicator [Line Items] | ||||
Accounts receivable | $ 1,102,586 | [1] | ||
Accounts receivable percentage | 16% | [1] | ||
Customer D [Member] | ||||
Accounts Receivable, Noncurrent, Credit Quality Indicator [Line Items] | ||||
Accounts receivable | $ 1,083,605 | [1] | ||
Accounts receivable percentage | 16% | [1] | ||
Customer E [Member] | ||||
Accounts Receivable, Noncurrent, Credit Quality Indicator [Line Items] | ||||
Accounts receivable | $ 863,626 | [1] | ||
Accounts receivable percentage | 12% | [1] | ||
Customer F [Member] | ||||
Accounts Receivable, Noncurrent, Credit Quality Indicator [Line Items] | ||||
Accounts receivable | [1] | $ 2,390,789 | ||
Accounts receivable percentage | [1] | 36% | ||
[1]Represented the percentage below 10% |
Concentrations (Details) - Sc_2
Concentrations (Details) - Schedule of customer that accounted total revenue - USD ($) | 12 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | ||||
Concentrations (Details) - Schedule of customer that accounted total revenue [Line Items] | ||||||
Total revenue | $ 5,293,100 | $ 4,065,411 | $ 3,247,401 | |||
Total revenue percentage | 23% | 24% | 62% | |||
Customer A [Member] | ||||||
Concentrations (Details) - Schedule of customer that accounted total revenue [Line Items] | ||||||
Total revenue | $ 3,062,302 | [1] | [1] | |||
Total revenue percentage | 13% | [1] | [1] | |||
Customer B [Member] | ||||||
Concentrations (Details) - Schedule of customer that accounted total revenue [Line Items] | ||||||
Total revenue | $ 2,230,798 | [1] | [1] | |||
Total revenue percentage | 10% | [1] | [1] | |||
Customer F [Member] | ||||||
Concentrations (Details) - Schedule of customer that accounted total revenue [Line Items] | ||||||
Total revenue | [1] | $ 4,065,411 | [1] | |||
Total revenue percentage | [1] | 24% | [1] | |||
Customer G [Member] | ||||||
Concentrations (Details) - Schedule of customer that accounted total revenue [Line Items] | ||||||
Total revenue | [1] | [1] | $ 1,158,818 | |||
Total revenue percentage | [1] | [1] | 22% | |||
Customer H [Member] | ||||||
Concentrations (Details) - Schedule of customer that accounted total revenue [Line Items] | ||||||
Total revenue | [1] | [1] | $ 867,411 | |||
Total revenue percentage | [1] | [1] | 17% | |||
Customer I [Member] | ||||||
Concentrations (Details) - Schedule of customer that accounted total revenue [Line Items] | ||||||
Total revenue | [1] | [1] | $ 642,683 | |||
Total revenue percentage | [1] | [1] | 12% | |||
Customer J [Member] | ||||||
Concentrations (Details) - Schedule of customer that accounted total revenue [Line Items] | ||||||
Total revenue | [1] | [1] | $ 578,489 | |||
Total revenue percentage | [1] | [1] | 11% | |||
[1]Represented the percentage below 10% |
Concentrations (Details) - Sc_3
Concentrations (Details) - Schedule of each supplier that accounted total purchase - USD ($) | 12 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | ||||
Concentrations (Details) - Schedule of each supplier that accounted total purchase [Line Items] | ||||||
Supplier amount | $ 5,906,739 | $ 6,461,254 | $ 615,829 | |||
Supplier percentage | 27% | 39% | 77% | |||
Supplier A [Member] | ||||||
Concentrations (Details) - Schedule of each supplier that accounted total purchase [Line Items] | ||||||
Supplier amount | $ 3,485,941 | [1] | [1] | |||
Supplier percentage | 16% | [1] | [1] | |||
Supplier B [Member] | ||||||
Concentrations (Details) - Schedule of each supplier that accounted total purchase [Line Items] | ||||||
Supplier amount | $ 2,420,798 | [1] | [1] | |||
Supplier percentage | 11% | [1] | [1] | |||
Supplier C [Member] | ||||||
Concentrations (Details) - Schedule of each supplier that accounted total purchase [Line Items] | ||||||
Supplier amount | [1] | $ 4,320,110 | $ 504,889 | |||
Supplier percentage | [1] | 26% | 63% | |||
Supplier D [Member] | ||||||
Concentrations (Details) - Schedule of each supplier that accounted total purchase [Line Items] | ||||||
Supplier amount | [1] | $ 2,141,144 | [1] | |||
Supplier percentage | [1] | 13% | [1] | |||
Supplier E [Member] | ||||||
Concentrations (Details) - Schedule of each supplier that accounted total purchase [Line Items] | ||||||
Supplier amount | [1] | [1] | $ 110,940 | |||
Supplier percentage | [1] | [1] | 14% | |||
[1]Represented the percentage below 10% |
Condensed Financial Informati_3
Condensed Financial Information of The Parent Company (Details) - Schedule of parent company balance sheets - Parent [Member] - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 175,437 | |
Restricted cash | 1,100,000 | |
Receivable from VIE | 3,017,337 | |
Receivable from Non-VIE | 15,853,200 | |
Long term investment | 8,736,137 | 8,869,462 |
Total assets | 28,882,111 | 8,869,462 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Accrued expenses and other payables | 47,585 | |
Amount due to VIE | 316,524 | |
Total liabilities | 364,109 | |
Shareholders’ equity | ||
Ordinary shares (par value of $0.001 per share; 100,000,000 shares authorized as of September 30, 2020 and 2021; 7,800,000 and 13,626,602 shares issued and outstanding as of September 30, 2020 and 2021, respectively) | 13,627 | 7,800 |
Subscription receivable | (7,800) | (7,800) |
Receivables due from a shareholder | (3,152,179) | (4,737,521) |
Additional paid-in capital | 32,493,461 | 12,290,900 |
Retained earnings | (1,423,614) | 1,575,630 |
Accumulated other comprehensive (loss)/income | 594,507 | (259,547) |
Total shareholders’ equity | 28,518,002 | 8,869,462 |
Total liabilities and shareholders’ equity | $ 28,882,111 | $ 8,869,462 |
Condensed Financial Informati_4
Condensed Financial Information of The Parent Company (Details) - Schedule of parent company balance sheets (Parentheticals) - Parent [Member] - $ / shares | Sep. 30, 2021 | Sep. 30, 2020 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary shares par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Ordinary shares authorized | 100,000,000 | 100,000,000 |
Ordinary shares issued | 13,626,602 | 7,800,000 |
Ordinary shares outstanding | 13,626,602 | 7,800,000 |
Condensed Financial Informati_5
Condensed Financial Information of The Parent Company (Details) - Schedule of income and comprehensive income - Parent [Member] - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Condensed Statement of Income Captions [Line Items] | |||
General and administrative expenses | $ (495,835) | ||
Total operating expenses | (495,835) | ||
Loss from operation | (495,835) | ||
Other income: | |||
Share of earnings (loss) from subsidiaries, VIE and its subsidiaries | (2,483,117) | 147,174 | 1,738,123 |
Other income | 279 | ||
Income (loss) before income tax expense | (2,978,673) | 147,174 | 1,738,123 |
Income tax expense | |||
Net income/(Loss) | (2,978,673) | 147,174 | 1,738,123 |
Other comprehensive income: | |||
Foreign currency translation (loss) income, net of nil income taxes | 795,593 | 397,110 | (192,550) |
Available-for-sale debt investments | 58,461 | ||
Total comprehensive income/(loss) | $ (2,124,619) | $ 544,284 | $ 1,545,573 |
Condensed Financial Informati_6
Condensed Financial Information of The Parent Company (Details) - Schedule of cash flow - Parent [Member] - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Cash flows from operating activities | $ (801,208) | ||
Payment on behalf of VIE | (3,017,337) | ||
Loan to subsidiary | (15,853,200) | ||
Cash flows from investing activities | (18,870,537) | ||
Cash receipts from equity issuance, net of issuance cost | 20,947,182 | ||
Cash flows from financing activities | 20,947,182 | ||
Effect of exchange rate changes | |||
Net increase in cash, cash equivalents and restricted cash | 1,275,437 | ||
Cash, cash equivalents and restricted cash, at beginning of year | |||
Cash, cash equivalents and restricted cash, at end of year | $ 1,275,437 |
Subsequent Events (Details)
Subsequent Events (Details) | Oct. 14, 2021 |
Subsequent Event [Member] | |
Subsequent Events (Details) [Line Items] | |
Loans agreement description | On October 14, 2021, Jiangsu EZGO entered into a loan agreement of RMB10,000,000 ($1,552,458) with Shandong EZGO New Energy Technology Co., Ltd., a related party of the Company, with annual interest rate of 5% and a term of 12 months |