XML 27 R17.htm IDEA: XBRL DOCUMENT v3.24.0.1
Related party transactions
 3 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
Related party transactions

Note 9 — Related party transactions

 

The Company borrows short-term loans without interest from its majority shareholder and CEO, Mr. Dekui Liu, for operation and cashflow needs from time to time. As of December 31, 2023, the amount due to Mr. Liu was $2,000. As of September 30, 2023, the amount due to Mr. Liu was $327,372.

 

 

INNO HOLDINGS INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

 

Note 9 — Related party transactions (cont.)

 

The Company engaged Yunited Assets LLC (“Yunited”), a limited liability company owned by Mr. Cheng Yu, the minority owner of the Company’s subsidiary, Inno Research Institute, for consultation services on a project-by-project basis. During the three months ended December 31, 2023 and 2022, the Company recorded $nil and $3,100, respectively, of project-based consulting service fees, included in cost of materials and labor. During the three months ended December 31, 2023 and 2022, the Company also recorded $nil and $10,000 consulting fee to Yunited for Mr. Yu’s daily operating services included in the general and administrative expenses. As of December 31, 2023 and September 30, 2023, the outstanding balance of accounts payable – related party due to Yunited was both $50,000.

 

During the year ended September 30, 2022, the Company purchased prefab home and other material and supplies from Baicheng Trading LLC, in which the father of Mr. Dekui Liu, the Company’s majority shareholder and CEO, is a director. As of December 31, 2023, and September 30, 2023, the outstanding balance of accounts payable-related party was both $485,595.

 

In March 2023, the Company entered into an agreement with Vision Opportunity Fund LP, a Florida limited partnership partially owned by a minority shareholder of the Company. In August 2023, all rights, obligations and interests under the agreement were subsequently assigned by Vision Opportunity Fund LP to its general partner, New Vision 101 LLC (“Vision 101”). Pursuant to the agreement, the Company agreed to provide supplies and act as project developer for an amount equal to $15,875,800 plus applicable taxes. As of December 31, 2023, Nil amount of revenue has been recognized.

 

Starting December 2022, for operation and cashflow needs, the Company advances funds from Zfounder Organization Inc., one of the Company’s minority shareholders, and Wise Hill Inc., a company owned by a minority shareholder of the Company who also serves as the CEO and Board member of Zfounder Organization Inc. The advanced amounts are non-interest bearing. As of December 31, 2023, the outstanding balance due to Zfounder Organization Inc. and Wise Hill Inc. was $60,000 and $208,000, respectively. As of September 30, 2023, the outstanding balance due to Zfounder Organization Inc. and Wise Hill Inc. was $55,000 and $122,000, respectively.