Full Press Release Details
NATURAL LIFE LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| As of | ||||||||
| March 31, 2024 | September 30, 2023 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash | $ | 717,879 | $ | 112,751 | ||||
| Short-term investments | - | 65 | ||||||
| Accounts receivable, net | 8,108,271 | 4,602,466 | ||||||
| Inventories, net | 1,437,180 | 987,287 | ||||||
| Advance to suppliers, net | 15,414,883 | 15,117,191 | ||||||
| Acquisition deposit | 1,000,000 | 1,000,000 | ||||||
| Prepaid expenses and other current assets | 1,583,606 | 2,363,704 | ||||||
| TOTAL CURRENT ASSETS | 28,261,819 | 24,183,464 | ||||||
| Property, plant and equipment, net | 20,613,211 | 21,064,043 | ||||||
| Intangible assets, net | 992,544 | 995,227 | ||||||
| Right-of-use lease assets, net | 199,679 | 312,067 | ||||||
| Deferred tax assets, net | 12,672 | 1,335 | ||||||
| TOTAL ASSETS | $ | 50,079,925 | $ | 46,556,136 | ||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Short-term loans | $ | 4,617,414 | $ | 2,509,890 | ||||
| Current portion of long-term loans | 473,111 | 419,610 | ||||||
| Accounts payable | 1,284,816 | 1,404,937 | ||||||
| Due to related parties | 188,640 | 83,380 | ||||||
| Taxes payable | 2,523,163 | 2,718,687 | ||||||
| Deferred revenue | 497,937 | 106,514 | ||||||
| Accrued expenses and other current liabilities | 1,797,826 | 2,140,900 | ||||||
| Operating lease liability, current | 202,552 | 227,297 | ||||||
| TOTAL CURRENT LIABILITIES | 11,585,459 | 9,611,215 | ||||||
| Long-term loans | 1,176,624 | 871,368 | ||||||
| Operating lease liability, noncurrent | - | 91,720 | ||||||
| TOTAL LIABILITIES | $ | 12,762,083 | $ | 10,574,303 | ||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| EQUITY | ||||||||
| Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 14,138,662 and 11,738,662 shares issued and outstanding as of March 31, 2024 and September 30, 2023, respectively | 1,414 | 1,174 | ||||||
| Additional paid in capital | 19,097,652 | 18,088,056 | ||||||
| Statutory reserve | 2,372,871 | 2,372,871 | ||||||
| Retained earnings | 18,693,477 | 18,703,996 | ||||||
| Accumulated other comprehensive income | (3,470,975 | ) | (3,681,445 | ) | ||||
| TOTAL BON NATURAL LIFE LIMITED SHAREHOLDERS' EQUITY | 36,694,439 | 35,484,652 | ||||||
| Non-controlling interest | 623,403 | 497,181 | ||||||
| TOTAL SHAREHOLDERS' EQUITY | 37,317,842 | 35,981,833 | ||||||
| TOTAL LIABILITIES AND EQUITY | $ | 50,079,925 | $ | 46,556,136 |
NATURAL LIFE LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
| For the six months ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| REVENUE | $ | 10,183,553 | $ | 14,149,967 | ||||
| COST OF REVENUE | (7,215,116 | ) | (9,432,619 | ) | ||||
| GROSS PROFIT | 2,968,437 | 4,717,348 | ||||||
| OPERATING EXPENSES | ||||||||
| Selling expenses | (103,096 | ) | (136,164 | ) | ||||
| General and administrative expenses | (1,890,452 | ) | (1,465,955 | ) | ||||
| Research and development expenses | (890,384 | ) | (129,995 | ) | ||||
| Total operating expenses | (2,883,932 | ) | (1,732,114 | ) | ||||
| INCOME FROM OPERATIONS | 84,505 | 2,985,234 | ||||||
| OTHER INCOME (EXPENSES) | ||||||||
| Interest income | 161 | 8,732 | ||||||
| Interest expense | (143,747 | ) | (178,557 | ) | ||||
| Unrealized foreign transaction exchange loss (gain) | (2,747 | ) | 8,452 | |||||
| Government subsidies | 61,081 | 11,916 | ||||||
| Income from short-term investments | - | - | ||||||
| Other income (expenses) | 49,683 | (223,044 | ) | |||||
| Total other expenses, net | (35,569 | ) | (372,501 | ) | ||||
| INCOME BEFORE INCOME TAX PROVISION | 48,936 | 2,612,733 | ||||||
| INCOME TAX PROVISION | (90,734 | ) | (510,077 | ) | ||||
| NET (LOSS) INCOME | (41,798 | ) | 2,102,656 | |||||
| Less: net loss attributable to non-controlling interest | (31,279 | ) | (17,104 | ) | ||||
| NET (LOSS) INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED | $ | (10,519 | ) | $ | 2,119,760 | |||
| NET (LOSS) INCOME | $ | (41,798 | ) | $ | 2,102,656 | |||
| OTHER COMPREHENSIVE INCOME | ||||||||
| Total foreign currency translation adjustment | 367,971 | 1,071,621 | ||||||
| TOTAL COMPREHENSIVE INCOME | 326,173 | 3,174,277 | ||||||
| Less: comprehensive loss attributable to non-controlling interest | 126,222 | (17,104 | ) | |||||
| COMPREHENSIVE INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED | $ | 199,951 | $ | 3,191,381 | ||||
| (LOSS) EARNINGS PER SHARE ATTRIBUTABLE TO BON NATURAL LIFE LIMITED | ||||||||
| Basic | $ | (0.00 | ) | $ | 0.24 | |||
| Diluted | $ | (0.00 | ) | $ | 0.24 | |||
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | ||||||||
| Basic | 12,857,018 | 8,918,309 | ||||||
| Diluted | 12,857,018 | 8,979,243 |
NATURAL LIFE LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
THE SIX MONTHS ENDED MARCH 31, 2024 AND 2023
| Common shares | Additional paid-in | Statutory | Retained | Accumulated other comprehensive | Total shareholders' | Non- controlling | Total | |||||||||||||||||||||||||||||
| Shares | Amount | capital | reserve | earnings | loss | equity | interest | equity | ||||||||||||||||||||||||||||
| Balance at September 30, 2022 | 8,396,226 | $ | 840 | $ | 15,711,450 | $ | 1,804,116 | $ | 14,676,769 | $ | (2,631,171 | ) | $ | 29,562,004 | $ | 530,492 | $ | 30,092,496 | ||||||||||||||||||
| Issuance of ordinary shares in a private placement, net | 2,750,000 | 275 | 2,199,725 | 2,200,000 | 2,220,000 | |||||||||||||||||||||||||||||||
| Share-based compensation | 35,000 | 35,000 | 35,000 | |||||||||||||||||||||||||||||||||
| Net income | 2,119,760 | 2,119,760 | (17,104 | ) | 2,102,656 | |||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | 1,071,621 | 1,071,621 | 1,071,621 | |||||||||||||||||||||||||||||||||
| Balance at March 31, 2023 | 11,146,226 | $ | 1,115 | $ | 17,946,175 | $ | 1,804,116 | $ | 16,796,529 | $ | (1,559,550 | ) | $ | 34,988,384 | $ | 513,387 | $ | 35,501,771 | ||||||||||||||||||
| Balance at September 30, 2023 | 11,738,662 | $ | 1,174 | $ | 18,088,056 | $ | 2,372,871 | $ | 18,703,996 | $ | (3,681,445 | ) | $ | 35,484,652 | $ | 497,181 | $ | 35,981,833 | ||||||||||||||||||
| Share-based compensation | 2,400,000 | 240 | 1,009,596 | 1,009,836 | 1,009,836 | |||||||||||||||||||||||||||||||
| Net loss | (10,519 | ) | (10,519 | ) | (31,279 | ) | (41,798 | ) | ||||||||||||||||||||||||||||
| Foreign currency translation adjustment | 210,470 | 210,470 | 157,501 | 367,971 | ||||||||||||||||||||||||||||||||
| Balance at March 31, 2024 | 14,138,662 | $ | 1,414 | $ | 19,097,652 | $ | 2,372,871 | $ | 18,693,477 | $ | (3,470,975 | ) | $ | 36,694,439 | $ | 623,403 | $ | 37,317,842 |
NATURAL LIFE LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the six months ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities | ||||||||
| Net (loss) income | $ | (41,798 | ) | $ | 2,102,656 | |||
| Adjustments to reconcile net income to cash provided by operating activities | ||||||||
| Allowance for doubtful accounts | 21,441 | - | ||||||
| Depreciation and amortization | 686,038 | 282,888 | ||||||
| Inventory reserve | 58,349 | 105,314 | ||||||
| Deferred income tax | (11,345 | ) | (25,749 | ) | ||||
| Amortization of operating lease right-of-use assets | 115,882 | 114,179 | ||||||
| Share-based compensation | 1,009,836 | 35,000 | ||||||
| Unrealized foreign currency exchange loss (gain) | 2,747 | (8,452 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (3,464,205 | ) | (2,198,450 | ) | ||||
| Inventories | (498,736 | ) | (124,601 | ) | ||||
| Advance to suppliers, net | (160,908 | ) | (3,353,433 | ) | ||||
| Prepaid expenses and other current assets | 801,781 | (3,595,458 | ) | |||||
| Accounts payable | (135,111 | ) | 100,386 | |||||
| Operating lease liabilities | (120,040 | ) | (115,170 | ) | ||||
| Taxes payable | (224,459 | ) | 386,510 | |||||
| Deferred revenue | 391,057 | 781,183 | ||||||
| Accrued expenses and other current liabilities | (314,702 | ) | 3,335,205 | |||||
| Net cash used in operating activities | (1,884,173 | ) | (2,177,992 | ) | ||||
| Cash flows from investing activities | ||||||||
| Purchase of property and equipment | (693 | ) | (15,131 | ) | ||||
| Capital expenditures on construction-in-progress | - | (2,970 | ) | |||||
| Net cash used in investing activities | (693 | ) | (18,101 | ) | ||||
| Cash flows from financing activities | ||||||||
| Net proceeds from issuance of ordinary shares | - | 2,200,000 | ||||||
| Proceeds from short-term loans | 3,619,267 | 259,767 | ||||||
| Proceeds from long-term loans | 854,514 | - | ||||||
| Repayment of short-term loans | (1,534,052 | ) | (79,165 | ) | ||||
| Repayment of long-term loans | (508,629 | ) | (437,412 | ) | ||||
| Proceeds from (repayment of) borrowings from related parties | 80,752 | (1,038 | ) | |||||
| Repayment of capital lease | - | (27,236 | ) | |||||
| Net cash provided by financing activities | 2,511,853 | 1,914,916 | ||||||
| Effect of changes of foreign exchange rates on cash | (21,858 | ) | (17,412 | ) | ||||
| Net increase (decrease) in cash | 605,128 | (298,589 | ) | |||||
| Cash, beginning of period | 112,751 | 840,861 | ||||||
| Cash, end of period | $ | 717,879 | $ | 542,272 | ||||
| Supplemental disclosure of cash flow information | ||||||||
| Cash paid for interest expense | $ | 143,747 | $ | 178,557 | ||||
| Cash paid for income tax | $ | - | $ | 500,251 | ||||
| Supplemental disclosure of non-cash investing and financing activities | ||||||||
| Amortization of share-based compensation for initial public offering services | $ | 24,000 | $ | 35,000 | ||||
| Right-of-use assets obtained in exchange for operating lease obligations | $ | - | $ | 458,181 |