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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended
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Sep. 30, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Schedule of carrying amounts of the assets, liabilities, the results of operations and cash flows of the VIE and its subsidiaries | The carrying amounts of the assets, liabilities, the results of operations and cash flows of the VIE and VIE’s subsidiaries included in the Company, its subsidiaries, the VIE and VIE subsidiaries’ consolidated financial statements after the elimination of intercompany balances and transactions among the VIE and VIE’s subsidiaries, and the Company and its subsidiaries are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | ​
​ | ​ | September 30, | ​ | September 30,
​ | ​ | 2022 | ​ | 2021
ASSETS | ​ |  | ​ | ​ |  | ​
Current assets: |  | ​ |  |  | ​ |
Cash and cash equivalents | ​ | $ | 10,027,168 | ​ | $ | 4,161,582
Restricted cash | ​ | ​ | 659,779 | ​ | ​ | 2,140,016
Accounts receivable, net | ​ |  | 815,022 | ​ |  | 1,733,306
Bank acceptance receivable | ​ |  | 2,585,886 | ​ |  | 11,722,096
Inventories, net | ​ |  | 8,879,486 | ​ |  | 12,495,831
Advances to suppliers, net | ​ |  | 1,214,951 | ​ |  | 1,380,757
Other current assets | ​ |  | 1,493,304 | ​ |  | 423,331
Total current assets | ​ |  | 25,675,596 | ​ |  | 34,056,919
Property and equipment, net | ​ |  | 9,361,862 | ​ |  | 9,041,995
Intangible assets, net | ​ |  | 1,726,928 | ​ |  | 1,927,933
Long-term investment | ​ |  | 617,570 | ​ |  | 639,466
Other long-term assets | ​ |  | 172,911 | ​ |  | 188,913
Right of use assets-lease | ​ |  | 86,584 | ​ |  | 118,154
Deferred tax assets | ​ |  | 212,876 | ​ |  | 427,172
Total assets | ​ | $ | 37,854,327 | ​ | $ | 46,400,552
LIABILITIES | ​ |  | ​ | ​ |  |
Current liabilities: | ​ |  | ​ | ​ |  |
Bank loans | ​ | $ | 140,578 | ​ | $ | —
Accounts payable | ​ |  | 5,266,571 | ​ |  | 6,642,625
Advance from customers | ​ |  | 556,418 | ​ |  | 2,467,296
Advance from customers - related parties | ​ |  | — | ​ |  | 17,318
Bank notes payable | ​ | ​ | 1,531,649 | ​ | ​ | 7,867,018
Deferred government grants - current | ​ |  | 121,542 | ​ |  | 351,567
Taxes payable | ​ |  | 825,301 | ​ |  | 371,325
Operating lease liabilities, current | ​ |  | 23,859 | ​ |  | 55,847
Accrued expenses and other payables | ​ |  | 701,263 | ​ |  | 466,188
Total current liabilities | ​ |  | 9,167,181 | ​ |  | 18,239,184
Operating lease liabilities, long term | ​ |  | 72,537 | ​ |  | 106,180
Deferred government grants - noncurrent | ​ |  | 309,943 | ​ |  | 403,745
Total liabilities | ​ |  | 9,549,661 | ​ |  | 18,749,109
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the year ended
​ | ​ | September 30,
​ | ​ | 2022 | ​ | 2021 | ​ | 2020
Net revenue |  | $ | 64,468,807 |  | $ | 57,049,381 |  | $ | 46,731,913
Income from operations | ​ | $ | 2,502,014 | ​ | $ | 2,370,647 | ​ | $ | 4,840,614
Net income | ​ | $ | 2,752,212 | ​ | $ | 2,857,492 | ​ | $ | 4,936,357
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the Year Ended
​ | ​ | September 30,
​ | ​ | 2022 | ​ | 2021 | ​ | 2020
Net cash provided by operating activities |  | $ | 12,901,270 |  | $ | 2,122,539 |  | $ | 4,131,468
Net cash used in investing activities |  | ​ | (1,153,972) |  | ​ | (1,781,618) |  | ​ | (5,648,762)
Net cash provided by (used in) financing activities |  | ​ | (5,937,529) |  | ​ | 123,697 |  | ​ | 2,140,503
Effect of exchange rate on cash |  | ​ | (1,018,698) |  | ​ | 343,759 |  | ​ | 275,566
Net increase in cash and cash equivalents | ​ | $ | 4,791,071 | ​ | $ | 808,377 | ​ | $ | 898,775
​
Schedule of estimated useful lives of the assets | ​
​ | ​ | ​
Items |  | Useful life
Property and buildings |  | 20–25 years
Leasehold improvement |  | Lesser of useful life and lease term
Machinery and equipment |  | 5–10 years
Automobiles |  | 3–5 years
Office and electric equipment |  | 3–5 years
Schedule of estimated useful lives of intangible assets | ​
​ | ​ | ​
Items |  | Useful life
Land use rights |  | 50 years
Software |  | 10 years
License for drug manufacturing |  | 10 years
Schedule of shareholders' equity for the non-controlling interest from each subsidiary that is not 100% owned | The following table summarizes the shareholders’ equity for the non-controlling interest from each subsidiary that is not 100% owned by the Company: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of
​ | ​ | September 30, | ​ | September 30,
​ | ​ | 2022 | ​ | 2021
Gansu QLS |  | $ | 237,397 |  | $ | 240,683
Chengdu QLS and subsidiaries |  | ​ | 1,673,997 |  | ​ | 1,569,169
Total | ​ | $ | 1,911,394 | ​ | $ | 1,809,852
​
Schedule of computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share for the years ended September 30, 2022, 2021 and 2020: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the Years ended September 30,
​ |  | 2022 |  | 2021 |  | 2020
Numerator: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net income attributable to ordinary shareholders | ​ | $ | 1,076,693 | ​ | $ | 3,152,868 | ​ | $ | 5,063,710
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Denominator: | ​ |  |  | ​ |  |  | ​ |  |
Weighted-average number of ordinary shares outstanding – basic | ​ |  | 35,750,000 | ​ |  | 34,089,286 | ​ |  | 30,000,000
Outstanding warrants | ​ | ​ | — | ​ |  | — | ​ |  | —
Potentially dilutive shares from outstanding options and warrants | ​ |  | — | ​ |  | — | ​ |  | —
Weighted-average number of ordinary shares outstanding – diluted | ​ |  | 35,750,000 | ​ |  | 34,089,286 | ​ |  | 30,000,000
Earnings per share – basic | ​ | $ | 0.03 | ​ | $ | 0.09 | ​ | $ | 0.17
Earnings per share – diluted | ​ | $ | 0.03 | ​ | $ | 0.09 | ​ | $ | 0.17
​
Schedule of currency exchange rates | ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, 2022 |  | September 30, 2021 |  | September 30, 2020
Year-end spot rate |  | US$1=RMB 7.1135 |  | US$1=RMB 6.4580 |  | US$1=RMB 6.8033
​ | ​ | ​ | ​ | ​ | ​ | ​
Average rate |  | US$1=RMB 6.5532 |  | US$1=RMB 6.5095 |  | US$1=RMB 7.0077
Schedule of reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on recurring basis | The Company noted no transfers between levels during any of the periods presented. The following is a reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on a recurring basis for the year ended September 30, 2022 and 2021: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | As of |  | As of
​ | ​ | September 30, | ​ | September 30,
​ | ​ | 2022 | ​ | 2021
Beginning balance | ​ | $ | 20,323,400 | ​ | $ | —
Fair value of investment in available-for-sale securities at inception | ​ |  | (853,000) | ​ |  | 20,000,000
Change in fair value | ​ |  | — | ​ |  | 323,400
Ending balance | ​ | $ | 19,470,400 | ​ | $ | 20,323,400
​

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- Definition Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 5A -URI https://asc.fasb.org/extlink&oid=123419778&loc=SL6759159-111685 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 6 -URI https://asc.fasb.org/extlink&oid=123419778&loc=d3e5747-111685 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=123419778&loc=SL6228884-111685 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=123419778&loc=d3e5710-111685 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 4 -URI https://asc.fasb.org/extlink&oid=123419778&loc=d3e5728-111685 + Details
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