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Concentration of risk
9 Months Ended
Jun. 30, 2024
Risks and Uncertainties [Abstract]  
Concentration of risk

Note 11 — Concentration of risk

 

Credit risk

 

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable.

 

As of June 30, 2024 and September 30, 2023, $1,890,903 and $4,898, respectively, were deposited with various major financial institutions in the United States. Accounts at each institution in the United States are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000. As of June 30, 2024, the Company had deposits in excess of the FDIC insurance limit with two financial institutions in the United States with $1,199,883 uninsured. As of September 30, 2023, the Company did not have deposit in excess of the FDIC insurance limit.

 

Accounts receivable are typically unsecured and derived from revenue earned from customers, thereby exposing the Company to credit risk. The risk is mitigated by the Company’s assessment of its customers’ creditworthiness and its ongoing monitoring of outstanding balances.

 

Customer and vendor concentration risk

 

For the three and nine months ended June 30, 2024, one and four customers accounted for 98% and 100% of the Company’s total revenues, respectively. For the three and nine months ended June 30, 2023, two and three customers accounted for 98% and 53%, respectively. As of June 30, 2024, $Nil outstanding of accounts receivable. Accounts receivable from one customers accounted for 100% of the Company’s total accounts receivable as of September 30, 2023.

 

For the three and nine months ended June 30, 2024, two suppliers accounted for 100% and 58% of the Company’s total purchases, respectively. For the three and nine months ended June 30, 2023, two suppliers accounted for 73% and three suppliers accounted for 59% of the Company’s total purchases, respectively. As of June 30, 2024 and September 30, 2023, accounts payable to two suppliers accounted for 56% and 55% of the Company’s total accounts payable, respectively.