FINANCIAL INFORMATION OF THE PARENT COMPANY

12 Months Ended

Sep. 30, 2023

Condensed Financial Information Disclosure [Abstract]

FINANCIAL INFORMATION OF THE PARENT COMPANY

NOTE 20— FINANCIAL INFORMATION OF THE PARENT COMPANY

Rule 12-04(a), 5-04(c) and 4-08(e)(3) of Regulation S-X require the financial information of the parent company to be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The Company performed a test on the restricted net assets of consolidated subsidiaries in accordance with such requirement and concluded that it was applicable to the Company as the restricted net assets of the Company’s PRC subsidiaries exceeded 25% of the consolidated net assets of the Company, therefore, the financial statements for the parent company are included herein.

For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the Company’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party.

The financial information of the parent company has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company used the equity method to account for investment in its subsidiaries. Such investment is presented on the balance sheets as “Investment in subsidiaries” and the respective profit or loss as “Equity in earnings of subsidiaries” on the statements of comprehensive income.

The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S GAAP have been or omitted.

The Company did not pay any dividend for the periods presented. As of September 30, 2023 and 2022, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any.

BON NATURAL LIFE LIMITED AND SUBSIDIARIES

PARENT COMPANY BALANCE SHEETS

	September 30, 2023			September 30, 2022
ASSETS
CURRENT ASSETS
Cash	$	867		$	1,221
Acquisition deposit		1,000,000			1,000,000
Due from subsidiaries		10,998,557			9,402,525
Prepaid expenses and other current assets		(22,920	)		42,749
TOTAL CURRENT ASSETS		11,976,504			10,446,495
NON-CURRENT ASSETS
Investment in subsidiaries		23,507,948			19,115,509
TOTAL ASSETS	$	35,484,452		$	29,562,004
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES	$	-		$	-
COMMITMENTS AND CONTINGENCIES					-
SHAREHOLDERS’ EQUITY
Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 11,738,662 and 8,396,226 shares issued and outstanding as of September 30, 2023 and 2022, respectively	$	1,117		$	840
Additional paid-in capital		18,182,202			15,711,450
Retained earnings		20,980,978			16,480,885
Accumulated other comprehensive income (loss)		(3,679,845	)		(2,631,171	)
Total Bon Natural Life Limited shareholders’ equity		35,484,452			29,562,004
Total liabilities and Bon Natural Life Limited shareholders’ equity	$	35,484,452		$	29,562,004

BON NATURAL LIFE LIMITED AND SUBSIDIARIES

PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME

	For the Years Ended September 30,
	2023			2022			2021
General and administrative expenses	$	(846,930	)	$	(972,215	)	$	(68,722
Interest income		2			5			13
Equity in earnings of subsidiaries and VIEs		5,442,910			7,209,698			4,659,512
NET INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED		4,595,982			6,237,488			4,590,803
Foreign currency translation adjustment		(1,050,274	)		(2,853,392	)		610,323
COMPREHENSIVE INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED	$	3,545,708		$	3,384,096		$	5,201,126

BON NATURAL LIFE LIMITED AND SUBSIDIARIES

PARENT COMPANY STATEMENTS OF CASH FLOWS

	For the Years Ended September 30,
	2023			2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	4,595,982		$	6,237,488		$	4,590,803
Adjustments to reconcile net cash flows from operating activities:
Equity in earnings of subsidiaries and VIEs		(5,442,910	)		(7,209,698	)		(4,659,512	)
Amortization of stock-based compensation		131,092			170,883			44,910
Issuance of ordinary shares for services		218,304			-			-
Changes in operating assets and liabilities:
Payables due to subsidiaries		(1,596,032	)		597,475
Prepaid expenses and other current assets		65,669			(40,148	)		(2,600
Net cash used in operating activities		(2,027,898	)		(244,000	)		(26,399
CASH FLOWS FROM INVESTING ACTIVITIES:
Payment of acquisition deposit		-			-			(1,000,000
Net cash used in investing activities		-			-			(1,000,000
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of ordinary shares		2,027,544			-			11,271,480
Proceeds from exercise of stock options		-			140
Cash lent to subsidiaries and VIE		-			-			(10,000,000
Net cash provided by (used in) financing activities		2,027,544			140			1,271,480
CHANGES IN CASH		(354	)		(243,860	)		245,081
CASH beginning of year		1,221			245,081			-
CASH, end of year	$	867		$	1,221		$	245,081