ADVANCE AND PREPAYMENTS

12 Months Ended

Sep. 30, 2021

Advance And Prepayments

ADVANCE AND PREPAYMENTS

NOTE 4 - ADVANCE AND PREPAYMENTS

Prepayments consisted of the following:

	September 30,
	2021		2020
Prepaid service fee (1)	$	349,019	$	-
Prepaid rent and building management and utilities		85,474		34,651
Prepaid supplies(2)		78,248		-
Prepaid system maintenance services		5,209		6,733
Prepaid income tax		5,689		-
Prepaid professional services(3)		148,708		356
Prepaid others		15,301		971
Total prepayments	$	687,648	$	42,711

(1)	Prepaid service fee was paid to Guoxin Star Network Co., Ltd (“Guoxin”) by our VIE, King Eagle (Tianjin). It represents prepayments for operation fee and the usage of the Smart Kiosk which are still under construction and development. Both parties are entitled to exercise the Force Majeure Clause of the contract signed between both parties. As such, this prepaid service fee may or may not be recoverable. Nevertheless, an impairment of this prepayment is not necessary because both parties have expressed the intention to progress with the construction of the Smart Kiosks, and thereafter, with the operation of the same as soon as the circumstances allow.
(2)	As of September 30, 2021, and 2020, the Company had prepared the supplies of $78,248 and $0 respectively. The prepayment will be recognized in cost of goods sold in its consolidated statement of operations and comprehensive loss when the corresponding deferred revenue is recognized.
(3)	As of September 30, 2021, we remitted a payment in advance, $138,367, to a third-party vendor who initially planned to assist us to launch a marketing campaign in 2022 but such event was cancelled. We received a full refund from the vendor on December 14, 2021. The remaining balance, $10,341, is related to the monthly fee for the legal service for our PRC entities.

These amounts are expected to be recoverable within twelve (12) months.