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Related party transactions | 12 Months Ended
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Sep. 30, 2018
Related Party Transactions [Abstract] |
Related party transactions | Note 9 — Related party transactions The relationship and the nature of related party transactions are summarized as follow:
Name of Related Party |  | Relationship to the Company |  | Nature of Transactions
Forasen Group Co., Ltd. (‘‘Forasen Group’’) |  | Owned by the Chairman of Board of Directors |  | Provides guarantee for the Company’s bank loans; purchases from the Company; leases factory building to the Company
FarmNet Limited |  | Parent company of FMI |  | Provides working capital loan
Yefang Zhang |  | Chief Executive Officer (‘‘CEO’’) |  | Provides working capital loan; provides guarantee for the Company’s bank loans
Zhengyu Wang |  | Chairman of Board of Directors |  | provides guarantee for the Company’s bank loans
Due to related parties consisted of the following:
|  | September 30, 2018 |  |  | September 30, 2017 |
Yefang Zhang |  | $ | - |  |  | $ | 415,381 |
FarmNet Limited |  |  | 122,800 |  |  |  | - |
Total |  | $ | 122,800 |  |  | $ | 415,381 |
Sales to related party The Company periodically sells merchandise to its affiliates during the ordinary course of business. Forasen Group was the seventh largest customer, the fourth largest customer and the second largest customer of the Company for the years ended September 30, 2018, 2017 and 2016, respectively. For the years ended September 30, 2018, 2017 and 2016, the Company recorded sales to Forasen Group of $155,418, $799,142 and $1,012,789, respectively. Sales to Forasen Group accounted for 1%, 3% and 5% of the total sales for the years ended September 30, 2018, 2017 and 2016, respectively. Operating lease from related party In October 2009, the Company entered into a lease agreement with Forasen Group for leasing the factory building. The lease term is 10 years with monthly rent of RMB 22,400 (equivalent of $3,427). Guarantees provided by related parties The Company’s related parties provide guarantees for the Company’s short-term and long-term bank loans (see Note 7 and Note 8).

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 + Details
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