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Concentration of risk
3 Months Ended
Dec. 31, 2023
Risks and Uncertainties [Abstract]  
Concentration of risk

Note 12 — Concentration of risk

 

Credit risk

 

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable.

 

As of December 31, 2023 and September 30, 2023, $7,677,270 and $4,898, respectively, were deposited with various major financial institutions in the United States. Accounts at each institution in the United States are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000. As of December 31, 2023, the Company had deposits in excess of the FDIC insurance limit with two financial institutions in the United States with $7,116,243 uninsured. As of September 30, 2023, the Company did not have deposit in excess of the FDIC insurance limit.

 

Accounts receivables are typically unsecured and derived from revenue earned from customers, thereby exposing the Company to credit risk. The risk is mitigated by the Company’s assessment of its customers’ creditworthiness and its ongoing monitoring of outstanding balances.

 

Customer and vendor concentration risk

 

For the three months ended December 31, 2023 and 2022, two customers accounted for 100% and four customers accounted for 78% of the Company’s total revenues, respectively. Accounts receivable from one customer accounted for 100% of the Company’s total accounts receivable as of both December 31, 2023 and September 30, 2023.

 

For the three months ended December 31, 2023 and 2022, three suppliers accounted for 56% and two suppliers accounted for 61% of the Company’s total purchases, respectively. As of December 31, 2023 and September 30, 2023, accounts payable to two suppliers accounted for 51% and two suppliers accounted for 55% of the Company’s total accounts payable, respectively.