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Accounts Receivable, Net

12 Months Ended

Sep. 30, 2022

NOTE 3 — ACCOUNTS RECEIVABLE, NET

Accounts receivable consists of the following:

	September 30, 2022			September 30, 2021
Accounts receivable	$	15,975,717		$	16,020,269
Less: allowance for doubtful accounts		(791,827	)		(446,527	)
Accounts receivable, net	$	15,183,890		$	15,573,742

The Company’s accounts receivable primarily includes the balance due from customers when the Company’s pharmaceutical products are sold and delivered to customers. All of the Company’s accounts receivable balance at September 30, 2021 has been collected in the fiscal year 2022. As of date of this report, approximately 71.9%, or $10.9 million, of the Company’s net account receivable balance at September 30, 2022 has been subsequently collected and the remaining balance is expected to be substantially collected before March 31, 2023.

The following table summarizes the Company’s accounts receivable and subsequent collection by aging bucket:

Accounts Receivable by aging bucket	Balance as of September 30, 2022			Subsequent collection		% of subsequent collection
Less than 3 months	$	6,673,685		$	4,135,508		62.0	%
From 4 to 6 months		6,970,635			5,360,236		76.9	%
From 7 to 9 months		1,554,318			1,089,957		70.1	%
From 10 to 12 months		285,871			180,564		63.2	%
Over 1 year		491,208			152,711		31.1	%
Total gross accounts receivable		15,975,717			10,918,976		68.3	%
Allowance for doubtful accounts		(791,827	)		-
Accounts Receivable, net	$	15,183,890		$	10,918,976		71.9	%

Allowance for doubtful accounts movement is as follows:

	September 30, 2022			September 30, 2021
Beginning balance	$	446,527		$	639,991
Additions		419,353			-
Bad debt recovery		-			(225,660	)
Foreign currency translation adjustments		(74,053	)		32,196
Ending balance	$	791,827		$	446,527