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Discontinued Operation

12 Months Ended

Sep. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATION

13. DISCONTINUED OPERATION

In November 2018, the Company entered into an agreement with a third-party company to dispose its battery cell production line. The production line was disposed in December 2018. After the disposal, the Company is no longer engaged in the manufacturing of battery cells. The disposal of the production line was treated as a discontinued operation for all fiscal years presented.

Due to the impact of COVID-19, the revenue of rental business decreased after December 2019, which led to the termination of the cooperation with its sublease agents from January 2020 to July 2020. Therefore, management decided to dispose majority of its rental assets, mainly batteries and E-bicycle, before September 30, 2021. The disposal of the Company’s rental business was also treated as a discontinued operation for all fiscal years presented.

The assets and liabilities of the discontinued operations, which are included in “Current assets of discontinued operation” and “Current liabilities of discontinued operation”, on the Consolidated Balance Sheets, consist of the following:

		As of September 30,
		2020				2021
Assets of discontinued operation
Accounts receivable*		$	393,531			$	82,790
Advance to suppliers			1,077				1,135
Other receivable and prepaid expense			356,176				8,072
Total current assets			750,784				91,997
Property, plant and equipment, net			739,154				46,381
Total assets		$	1,489,938			$	138,378

Liabilities of discontinued operation
Accounts payable			320,001				293,073
Advance from customers			35,324				35,971
Other payable			286,462				664
Income tax payable			477,897				479,513
Total current liabilities			1,119,684				809,221
Total liabilities		$	1,119,684			$	809,221

*

The accounts receivables as of September 30, 2021 has been subsequently collected in November 2021.

The following are revenues and income (loss) from discontinued operation:

		For the years ended September 30,
		2019				2020				2021
Net revenues		$	6,334,585			$	1,595,227			$	342,636
Cost of revenues			(3,779,369	)			(1,348,578	)			(292,266	)
Loss on the disposal of the production line			(151,298	)			-				-
Income (loss) from discontinued operation before income tax			1,960,866				(76,291	)			(26,272	)
Income tax benefit (expense)			(536,565	)			18,915				(10,132	)
Income (loss) from discontinued operation, net of income tax		$	1,424,301			$	(57,376	)		$	(36,404	)