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Related party transactions

12 Months Ended

Sep. 30, 2021

Related party transactions

Related party transactions

Note 11 — 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 Mr Zhengyu Wang, the Chairman of Board of Directors of the Company		Purchases from the Company; leases factory building to the Company; provides the real property and land use right as additional security for a bank loan.
Zhejiang Tantech Bamboo Technology Co., Ltd.		Under common control of Mr Zhengyu Wang and Ms Yefang Zhang, CEO of the Company		Lease factory building to the Company; purchases from the Company; provide guarantee for the Company's short-term loan; provide an office property and land use right as additional security for the Company's short-term bank loan.
Hangzhou Forasen Energy Technology Co., Ltd.		Controlled by Mr Zhengyu Wang		Purchase from the Company.
Zhejiang Forasen Asset Management Co., Ltd.		Controlled by Mr. Zhengyu Wang and CEO Ms. Yefang Zhang		Purchase from the Company
Hangzhou Forasen Technology Co., Ltd		Controlled by Mr. Zhengyu Wang		Sublease of office space from the Company.
FarmNet Limited		Controlled by CEO Ms. Yefang Zhang		Advances to the Company
Yefang Zhang		CEO of the Company		Provide a working capital loan.
Xinyang Wang		Shareholder of Nongyuan Network		Provide the real property and land use right as additional security for the issuance of bank acceptance notes by Nongyuan Network. Provide a real property as additional security for a short-term bank.
Dehong Zhang		CEO of the Company, Yefang Zhang's brother		Provide a guarantee as an additional security for a revolving loan.
Zhejiang Forasen Zhutan Co., Ltd.		Controlled by CEO Ms. Yefang Zhang		Purchase from the Company.
Hangzhou Xinying Industrial Co., Ltd.		Controlled by Mr. Zhengyu Wang and CEO Ms. Yefang Zhang		Purchase from the Company.
Hangzhou Carbon Technology Co., Ltd.		Controlled by CEO Ms. Yefang Zhang		Purchase from the Company.
Shenzhen Daliniu New Energy Car Rental Co., Ltd		A subsidiary of non-controlling interest		Purchase from the Company.

Note 11 — Related party transactions (Continued)

Due to related parties from the Company’s continuing operations consisted of the following:


		As of			As of
		September 30,			September 30,
		2021			2020
Yefang Zhang		$	—		$	1,714,811
Farmnet			54,600			—
Zhejiang Tantech Bamboo Technology Co., Ltd.			3,032			—
Total		$	57,632		$	1,714,811

As of September 30, 2021 and 2020, the balance of due to related parties mainly consisted of advances from the Company’s principal shareholder for working capital purposes during the Company’s normal course of business. These advances are non-interest bearing and due on demand.

Sales to related parties

The Company periodically sells merchandise to its affiliates during the ordinary course of business. For the years ended September 30, 2021, 2020 and 2019, the Company recorded sales to related parties of $1,952, $7,200 and $16,323, respectively.

Operating lease from related parties

In October 2009, the Company entered into a lease agreement with Forasen Group for leasing the factory building. The lease term was 10 years with monthly rent of RMB22,400 (equivalent of $3,293). The lease agreement was renewed in October 2019 for another 10 years with the same monthly rent. This lease agreement was terminated on July 31, 2020.

In July 2020, the Company entered into a lease agreement with Zhejiang Tantech Bamboo Technology Co., Ltd. for leasing the factory building. The lease term is 10 years with annual rent of RMB459,360 (equivalent of $67,526). This lease agreement was terminated on July 13, 2021.

In July 2021, the Company entered into a lease agreement with Zhejiang Tantech Bamboo Technology Co., Ltd. for leasing the factory building. The lease term is 10 years with annual rent of RMB459,360 (equivalent of $71,292).

In August 2020, the Company entered into a one-year lease agreement with Forasen Group for leasing a processing facility, with monthly rent of RMB 9,200 (equivalent of $1,313). This lease agreement was not renewed upon maturity.

Sublease to a related party

In August 2020, the Company entered into a sublease agreement with Hangzhou Forasen Technology Co., Ltd to sublease its office space. The lease term is two years with annual rent of RMB283,258 (equivalent of $41,639).

Guarantees provided by related parties

The Company’s related parties provide guarantees for the Company’s short-term bank loans (see Note 8). The Company’s related parties also pledged their properties as collaterals to safeguard the Company’s short-term bank loans (see Note 8) and bank acceptance notes (see Note 10).