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Loans
 3 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Loans

Note 8 — Loans

 

Short-term loans

 

Revolving line of credit

 

On September 16, 2022, the Company entered into an agreement with Origin Bank for a revolving line of credit (the “Line of Credit”) of up to $1,000,000 with interest at the floating Prime Rate plus one percent (1.0%) per annum, which is to be adjusted daily to the rate in effect. Interest shall be due and payable monthly as it accrues. The accrued unpaid interest and the principal is due and payable in twelve (12) months from September 16, 2022. The Line of Credit is secured by a Security Agreement and Financing Statement that covers certain properties of the Company and guaranteed by Mr. Dekui Liu, the majority shareholder and CEO of the Company. On April 14, 2023, a modification agreement was entered to reset the maturity date of the outstanding balance of the Note to July 14, 2023. The agreement required monthly interest payments starting from April 16, 2023. The Note was defaulted on May 14, 2023 due to non-payment of interest. The Company paid the principal amount of $287,089 on December 29, 2023, and the remaining balance is scheduled to be paid off by the end of February 2024. For the three months ended December 31, 2023 and 2022, the Company recorded interest expense related to the Line of Credit of $13,296 and $15,263, respectively. As of December 31, 2023 and September 30, 2023, the total outstanding balance of the Note was $272,911 and $560,000, respectively. The balance was presented on the consolidated balance sheet as a short-term loan.

 

Short term loan without interest

 

From June 2023 to August 2023, the Company borrowed short-term loans due on demand without interest, amounting to $230,000 from three individuals for operating purposes. As of December 31, 2023, and September 30, 2023, the outstanding balance due to these individuals were both $230,000. The balance was presented on the consolidated balance sheet as a short-term loan.

 

Long-term loan

 

Promissory note payable

 

On October 28, 2021, the Company issued to BancorpSouth Bank a five-year unsecured 4.75% promissory note, payable in equal monthly installments of $4,661 commencing November 28, 2021 (the “Note”). The principal amount of the Note was $248,500. The Note is secured by a Security Agreement and Financing Statement that covers certain properties of the Company and guaranteed by Mr. Dekui Liu, the majority shareholder and CEO of the Company.

 

For the three months ended December 31, 2023 and 2022, the Company recorded interest expense of $2,087 and $2,461, respectively.

 

As of December 31, 2023 and September 30, 2023, the total outstanding balance of the Note was $152,152 and $160,239, respectively, which was presented on the consolidated balance sheet as a current portion of $54,025 and $49,393, and a non-current portion of $98,127 and $110,846, respectively.