XML 48 R21.htm IDEA: XBRL DOCUMENT
v3.25.2

Income Taxes | 6 Months Ended | 12 Months Ended
--- | --- | ---
Mar. 31, 2025 | Sep. 30, 2024
Income Taxes [Abstract] |  |
INCOME TAXES | 15. INCOME TAXES Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the Cayman Islands. Hong Kong According to Tax (Amendment) (No. 3) Ordinance 2018 published by Hong Kong government, from April 1, 2018, under the two-tiered profits tax rates regime, the profits tax rate for the first HKD2 million of assessable profits will be lowered to 8.25% (half of the rate specified in Schedule 8 to the Inland Revenue Ordinance (IRO)) for qualified corporations, and assessable profits above HK$2,000,000 will be taxed at 16.5%. The assessable profits of corporations which is not qualifying for the two-tiered profits tax rates regime, will continue to be taxed at a flat rate of 16.5%. PRC Under the Enterprise Income Tax Laws of the PRC, or the EIT Laws, domestic enterprises and Foreign Investment Enterprises, or the FIEs, are usually subject to a unified 25% enterprise income tax rate, while preferential tax rates, tax holidays and tax exemption may be granted on case-by-case basis. Japan Japan has a progressive tax system, of which its corporate income tax is calculated on the estimated assessable profits for the six months ended March 31, 2025 and 2024 times applicable tax rates. EXTEND is subject to national corporate income tax, inhabitant tax, and enterprise tax in Japan, which in the aggregate, resulted in the statutory income tax rate of approximately 36.8% and 36.8% for the six months ended March 31, 2025 and 2024, respectively. The effective income tax rate was approximately -12.39% and 13.27% for the six months ended March 31, 2025 and 2024, respectively. The income tax expenses consist of the following components:
|  | For the six months ended March 31, |
|  | 2025 |  |  | 2024 |
Current income tax expenses |  | $ | 340,441 |  |  |  | - |
Deferred income tax benefit |  |  | - |  |  |  | (215,161 | )
Total income tax expenses/(benefit) |  | $ | 340,441 |  |  | $ | (215,161 | )
A reconciliation between the Group’s actual provision for income taxes and the provision at Japan statutory rate is as follows:
|  | For the six months ended March 31, |
|  | 2015 |  |  | 2024 |
Loss before income tax expenses |  | $ | (2,746,918 | ) |  | $ | (1,620,927 | )
Computed income tax benefit with statutory tax rate |  |  | (1,011,597 | ) |  |  | (596,937 | )
Effect of preferential tax rate |  |  | (21,205 | ) |  |  | 3,967 |
Impact of different tax rates in other jurisdictions |  |  | 821,728 |  |  |  | 220,869 |
Non-deductible expenses |  |  | 2,988 |  |  |  | 1,366 |
Utilized tax gain |  |  | - |  |  |  | 2,059 |
Changes in valuation allowance |  |  | 548,527 |  |  |  | 153,515 |
Income tax expenses /(benefit) |  | $ | 340,441 |  |  | $ | (215,161 | )
(1) | Since the company’s main place of business is in Japan, the Japanese tax rate has been chosen as the statutory tax rate.
As of March 31, 2025 and September 30, 2024, the significant components of the deferred tax assets are summarized below:
|  | As of March 31, 2025 |  |  | As of September 30, 2024 |
Deferred tax assets: |  |  |  |  |  |
Allowance for credit loss |  | $ | 1,297,689 |  |  | $ | 1,031,183 |
Net operating loss carried forward |  |  | 620,662 |  |  |  | 233,840 |
Unrealized foreign exchange loss |  |  | (61,051 | ) |  |  | 45,440 |
Total deferred tax assets |  |  | 1,857,300 |  |  |  | 1,310,463 |
Valuation allowance |  |  | (1,857,300 | ) |  |  | (1,310,463 | )
Deferred tax assets, net of valuation allowance |  | $ | - |  |  | $ | - |
The Group operates through subsidiaries and valuation allowance is considered for each of the entities on an individual basis. The Group recorded valuation allowance against deferred tax assets of those entities that are in a cumulative financial loss position and are not forecasting profits in the near future as of March 31, 2025 and September 30, 2024. In making such determination, the Group also evaluates a variety of factors including the Group’s operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. The Group has recognized a valuation allowance of $1,857,300 and $1,310,463 as of March 31, 2025 and September 30, 2024, respectively. Changes in valuation allowance are as follows:
|  | As of March 31, 2025 |  |  | As of September 30, 2024 |
Valuation allowance: |  |  |  |  |  |
Balance at beginning of the year |  | $ | 1,310,463 |  |  | $ | 468,938 |
Additions |  |  | 526,157 |  |  |  | 790,396 |
Loss utilized |  |  | - |  |  |  | - |
Exchange difference |  |  | 20,680 |  |  |  | 51,129 |
Balance at end of the year |  | $ | 1,857,300 |  |  | $ | 1,310,463 |
As of March 31, 2025 net operating loss carryforwards will expire, if unused, in the following amounts:
2025 |  | $ | - |
2026 |  |  | 141,738 |
2027 |  |  | 498,343 |
2028 |  |  | 1,592,302 |
2029 |  |  | 1,676,253 |
Total |  | $ | 3,908,636 |
| 15. INCOME TAXES Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the Cayman Islands. Hong Kong According to Tax (Amendment) (No. 3) Ordinance 2018 published by Hong Kong government, from April 1, 2018, under the two-tiered profits tax rates regime, the profits tax rate for the first HKD2 million of assessable profits will be lowered to 8.25% (half of the rate specified in Schedule 8 to the Inland Revenue Ordinance (IRO)) for qualified corporations, and assessable profits above HK$2,000,000 will be taxed at 16.5%. The assessable profits of corporations which is not qualifying for the two-tiered profits tax rates regime, will continue to be taxed at a flat rate of 16.5%. PRC Under the Enterprise Income Tax Laws of the PRC, or the EIT Laws, domestic enterprises and Foreign Investment Enterprises, or the FIEs, are usually subject to a unified 25% enterprise income tax rate, while preferential tax rates, tax holidays and tax exemption may be granted on case-by-case basis. Japan Japan has a progressive tax system, of which its corporate income tax is calculated on the estimated assessable profits for the years ended September 30, 2024, 2023 and 2022 times applicable tax rates. EXTEND is subject to national corporate income tax, inhabitant tax, and enterprise tax in Japan, which in the aggregate, resulted in the statutory income tax rate of approximately 36.8%, 36.8% and 37.1% for the years ended September 30, 2024, 2023 and 2022, respectively. The effective income tax rate was approximately 392.22%, 8.92% and 26.58% for the years ended September 30, 2024, 2023 and 2022, respectively. The income tax expenses consist of the following components:
|  | For the years ended September 30, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Current income tax expenses |  | $ | 441,441 |  |  | $ | 96,452 |  |  | $ | 305,439 |
Deferred income tax expenses/(benefit) |  |  | 148,239 |  |  |  | (160,402 | ) |  |  | 80,519 |
Total income tax expenses/(benefit) |  | $ | 589,680 |  |  | $ | (63,950 | ) |  | $ | 385,958 |
A reconciliation between the Group’s actual provision for income taxes and the provision at Japan statutory rate is as follows:
|  |  |  |  | For the years ended September 30, |
|  |  |  |  | 2024 |  |  | 2023 |  |  | 2022 |
Profit/(loss) before income tax expenses |  |  |  |  |  | $ | 150,344 |  |  | $ | (716,678 | ) |  | $ | 1,452,333 |
Computed income tax expense/(benefit) with statutory tax rate(1) |  |  | 36.8 | % |  |  | 55,367 |  |  |  | (263,930 | ) |  |  | 538,344 |
Effect of preferential tax rate |  |  |  |  |  |  | (21,092 | ) |  |  | (22,301 | ) |  |  | (29,148 | )
Impact of different tax rates in other jurisdictions |  |  |  |  |  |  | (237,513 | ) |  |  | (425 | ) |  |  | (303,869 | )
Non-deductible expenses |  |  |  |  |  |  | 3,160 |  |  |  | 316 |  |  |  | 1,372 |
Utilized tax loss |  |  |  |  |  |  | - |  |  |  | (49,313 | ) |  |  | - |
Changes in valuation allowance |  |  |  |  |  |  | 789,758 |  |  |  | 271,703 |  |  |  | 179,259 |
Income tax expenses/(benefit) |  |  |  |  |  | $ | 589,680 |  |  | $ | (63,950 | ) |  | $ | 385,958 |
| (1) | Since the company’s main place of business is in Japan, the Japanese tax rate has been chosen as the statutory tax rate.
As of September 30, 2024 and 2023, the significant components of the deferred tax assets are summarized below:
|  | As of September 30, |
|  | 2024 |  |  | 2023 |
Deferred tax assets: |  |  |  |  |  |
Net operating loss carried forward |  | $ | 1,265,023 |  |  | $ | 654,588 |
Unrealized foreign exchange gain/(loss) |  |  | 45,440 |  |  |  | (36,521 | )
Total deferred tax assets |  |  | 1,310,463 |  |  |  | 618,067 |
Valuation allowance |  |  | (1,310,463 | ) |  |  | (468,938 | )
Deferred tax assets, net of valuation allowance |  | $ | - |  |  | $ | 149,129 |
The Group operates through subsidiaries and valuation allowance is considered for each of the entities on an individual basis. The Group recorded valuation allowance against deferred tax assets of those entities that are in a cumulative financial loss position and are not forecasting profits in the near future as of September 30, 2024 and 2023. In making such determination, the Group also evaluates a variety of factors including the Group’s operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. The Group has recognized a valuation allowance of $1,310,463 and $468,938 for the years ended September 30, 2024 and 2023, respectively. Changes in valuation allowance are as follows:
|  | As of September 30 |
|  | 2024 |  |  | 2023 |
Valuation allowance: |  |  |  |  |  |
Balance at beginning of the year |  | $ | 468,938 |  |  | $ | 211,556 |
Additions |  |  | 790,396 |  |  |  | 271,702 |
Loss utilized |  |  | - |  |  |  | (49,314 | )
Exchange difference |  |  | 51,129 |  |  |  | 34,994 |
Balance at end of the year |  | $ | 1,310,463 |  |  | $ | 468,938 |
As of September 30, 2024, net operating loss carryforwards will expire, if unused, in the following amounts:
2025 |  |  | $ | - |
2026 |  |  |  | 142,260 |
2027 |  |  |  | 500,178 |
2028 |  |  |  | 1,602,758 |
2029 |  |  |  | 1,688,526 |
Total |  |  | $ | 3,933,722 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477617/942-740-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478822/944-740-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration