Related party transactions

9 Months Ended

Jun. 30, 2024

Related Party Transactions [Abstract]

Related party transactions

Note 9 — Related party transactions

The Company borrows short term loans without interest from its Former CEO, Mr. Dekui Liu, for operation and cashflow needs from time to time. As of June 30, 2024, the amount due to Mr. Liu was $2,000. As of September 30, 2023, the amount due to Mr. Liu was $327,372. Effective May 31, 2024, Mr. Liu resigned from his positions as Chief Executive Officer, Chairman, and Director of the Company. Concurrently, Mr. Liu transferred his shares to Zfounder Organization Inc., West Lake Club Inc. and Next Level Market Fund Inc.

INNO HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements

Note 9 — Related party transactions (cont.)

The Company engaged Yunited Assets LLC (“Yunited”), a limited liability company owned by Mr. Cheng Yu, the minority owner of the Company’s subsidiary, Inno Research Institute, for consultation services on a project-by-project basis. During the three and nine months ended June 30, 2023, the Company recorded $1,275 and $4,375, respectively, of project-based consulting service fees, included in cost of materials and labor. During the three and nine months ended June 30, 2023, the Company also recorded $70,000 and $90,000 consulting fee to Yunited for Mr. Yu’s daily operating services included in the general and administrative expenses. No such services have been provided for the three and nine months ended June 30, 2024. As of June 30, 2024 and September 30, 2023, the outstanding balance of accounts payable – related party due to Yunited was $Nil and $50,000.

During the year ended September 30, 2022, the Company purchased prefab home and other material and supplies from Baicheng Trading LLC (“Baicheng”), the father of Mr. Dekui Liu, the Company’s former CEO, is a director. During the nine months ended June 30, 2024, Baicheng further provided the renovation designing services for the buildings with a fee of $52,000. As of June 30, 2024, and September 30, 2023, the outstanding balance of accounts payable-related party were $Nil and $485,595, respectively.

In March 2023, the Company entered into an agreement with Vision Opportunity Fund LP, a Florida limited partnership partially owned by a minority shareholder of the Company. In August 2023, all rights, obligations and interests under the agreement were subsequently assigned by Vision Opportunity Fund LP to its general partner, New Vision 101 LLC (“Vision 101”). Pursuant to the agreement, the Company agreed to provide supplies and act as project developer for an amount equal to $15,875,800 plus applicable taxes. As of June 30, 2024, amount of $257,685 has been received and recorded as deferred revenue, and $Nil amount of revenue has been recognized.

Starting in December 2022, for operation and cashflow needs, the Company received advances of funds from Zfounder Organization Inc., (“Zfounder”), one of the Company’s shareholders, and Wise Hill Inc., (“Wise Hill”), a company owned by a shareholder of the Company who also serves as the CEO and Board member of Zfounder. The advanced amounts are non-interest bearing. As of June 30, 2024, the outstanding balance, due to Zfounder and Wise Hill., have been fully paid off. As of September 30, 2023, the outstanding balance due to Zfounder and Wise Hill, were $55,000 and $122,000, respectively.

INNO HOLDINGS INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements