EX-99.1 2 ex99-1.htm

Exhibit 99.1

BON NATURAL LIFE LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	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

BON NATURAL LIFE LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(UNAUDITED)

	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

BON NATURAL LIFE LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE SIX MONTHS ENDED MARCH 31, 2024 AND 2023

(UNAUDITED)

	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

BON NATURAL LIFE LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	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