XML 64 R37.htm IDEA: XBRL DOCUMENT v3.25.2
Prepaid Expenses and Other Current Assets, Net (Tables)
 6 Months Ended 12 Months Ended
Mar. 31, 2025
Sep. 30, 2024
Prepaid Expenses and Other Current Assets, Net [Abstract]    
Schedule of Prepayments and Other Current Assets, Net

Prepayments and other current assets, net consist of the following:

 

   As of
March 31,
2025		   As of
September 30,
2024		 
Tax refunds(1)  $364,087   $402,048 
Deposits   188,971    436,450 
Advance to suppliers(2)   1,063,963    35,128 
Prepaid expenses(3)   3,859    1,808,887 
Others   4,637    7,068 
Prepayments and other current assets, net  $1,625,517    2,689,581 

 

(1) Tax refunds consist of consumption tax and VAT refund for export business. The Group is eligible for consumption tax and VAT refund for cross-border products sales in Japan and China.

 

(2) Due to the company’s plan to launch a TikTok business in Japan in the second half year of 2025, it signed a procurement agreement with a Hong Kong trading company and made an advance payment of $1 million for the purchase of 3C electronic products such as headphones.

 

(3) The prepaid expenses on September 30, 2024 mainly represent the prepaid consulting fee to Hermann Limited. The company signed a service agreement with consulting management company Hermann Limited in December 2023, providing corporate management and investment and financing consulting services for the company for three years, with contract amount of $2,060,000. For the year ended September 30, 2024, the amortized expense amount is $572,222, and the remaining amount is $1,487,778. Since Hermann Limited obtained a portion of the company’s mortgaged shares through the issuance of convertible notes, and became a shareholder of the company with a 7.1% shareholding ratio. Therefore, it was reclassified into amount due from related parties on March 31, 2025 (note 19).

Prepayments and other current assets, net consist of the following:

 

   As of September 30, 
   2024   2023 
Tax refunds(1)  $402,048   $512,292 
Deposits   436,450    204,652 
Advance to suppliers   35,128    324,243 
Prepaid expenses(2)   1,808,887    8,224 
Others   7,068    4,276 
Prepayments and other current assets, net  $2,689,581   $1,053,687 

 

(1) Tax refunds consist of consumption tax and VAT refund for export business. The Group is eligible for consumption tax and VAT refund for cross-border products sales in Japan and China.
   
(2) The Company signed a service agreement with consulting management company Hermann Limited in December 2023, providing corporate management and investment and financing consulting services for the company for three years, with contract amount of $2,060,000. For the year ended September 30, 2024, the amortized expense amount is $572,222, and the remaining amount is $1,487,778. The other $315,908 is the prepaid service fee for issuing convertible bonds. The rest amount of $5,201 is for other prepaid network and software expenses.