BON NATURAL LIFE LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

As of
March 31, 2023 September 30, 2022
ASSETS
CURRENT ASSETS
Cash $ 542,272 $ 840,861
Accounts receivable, net 9,260,407 6,784,307
Inventories, net 1,803,374 1,722,120
Advance to suppliers, net 7,644,920 4,091,990
Acquisition deposit 1,000,000 1,000,000
Prepaid expenses and other current assets 3,967,756 277,509
TOTAL CURRENT ASSETS 24,218,729 14,716,787
Property, plant and equipment, net 22,135,274 21,624,437
Intangible assets, net 373,751 366,167
Right-of-use lease assets, net 450,282 546,690
Deferred tax assets, net 29,023 2,768
TOTAL ASSETS $ 47,207,059 $ 37,256,849
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term loans $ 2,666,457 $ 2,424,587
Current portion of long-term loans 1,934,411 2,135,979
Accounts payable 324,240 214,585
Due to related parties 120,203 72,836
Taxes payable 1,676,714 1,239,708
Deferred revenue 989,027 188,745
Accrued expenses and other current liabilities 3,503,550 114,431
Finance lease liabilities, current - 26,285
Operating lease liability, current 247,397 230,182
TOTAL CURRENT LIABILITIES 11,461,999 6,647,338
Long-term loans 30,336 189,813
Operating lease liability, noncurrent 212,955 327,202
TOTAL LIABILITIES $ 11,705,290 $ 7,164,353
COMMITMENTS AND CONTINGENCIES
EQUITY
Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 11,146,226 and 8,396,226 shares issued and outstanding as of March 31, 2023 and September 30, 2022, respectively 1,115 840
Additional paid in capital 17,946,174 15,711,450
Statutory reserve 1,804,116 1,804,116
Retained earnings 16,796,529 14,676,769
Accumulated other comprehensive income (1,559,550 ) (2,631,171 )
TOTAL BON NATURAL LIFE LIMITED SHAREHOLDERS' EQUITY 34,988,384 29,562,004
Non-controlling interest 513,387 530,492
TOTAL SHAREHOLDERS' EQUITY 35,501,771 30,092,496
TOTAL LIABILITIES AND EQUITY $ 47,207,059 $ 37,256,849

BON NATURAL LIFE LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(UNAUDITED)

For the six months ended

March 31,

2023 2022
REVENUE $ 14,149,967 $ 13,688,400
COST OF REVENUE (9,432,619 ) (9,652,453 )
GROSS PROFIT 4,717,348 4,035,947
OPERATING EXPENSES
Selling expenses (136,164 ) (83,970 )
General and administrative expenses (1,465,955 ) (998,943 )
Research and development expenses (129,995 ) (164,675 )
Total operating expenses (1,732,114 ) (1,247,588 )
INCOME FROM OPERATIONS 2,985,234 2,788,359
OTHER INCOME (EXPENSES)
Interest income 8,732 589
Interest expense (178,557 ) (277,764 )
Unrealized foreign transaction exchange loss 8,452 (16,994 )
Government subsidies 11,916 542,256
Income from short-term investments - 12,419
Other income (223,043 ) 43,532
Total other income, net (372,501 ) 304,038
INCOME BEFORE INCOME TAX PROVISION 2,617,733 3,092,397
INCOME TAX PROVISION (510,077 ) (562,737 )
NET INCOME 2,102,656 2,529,660
Less: net loss attributable to non-controlling interest (17,104 ) (19,018 )
NET INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED $ 2,119,760 $ 2,548,678
NET INCOME 2,102,656 2,529,660
OTHER COMPREHENSIVE INCOME
Total foreign currency translation adjustment 1,071,621 485,503
TOTAL COMPREHENSIVE INCOME 3,174,277 3,015,163
Less: comprehensive loss attributable to non-controlling interest (17,104 ) (21,314 )
COMPREHENSIVE INCOME ATTRIBUTABLE TO BON NATURAL LIFE LIMITED $ 3,191,381 $ 3,036,477
EARNINGS PER SHARE
Basic $ 0.24 $ 0.31
Diluted $ 0.24 $ 0.30
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
Basic 8,918,309 8,350,381
Diluted 8,979,243 8,386,306

BON NATURAL LIFE LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

FOR THE SIX MONTHS ENDED MARCH 31, 2023 AND 2022

(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, 2021 8,330,000 $ 833 $ 15,540,433 $ 1,050,721 $ 9,192,676 $ 222,221 $ 26,006,884 $ 527,865 $ 26,534,749
Non-cash exercise of warrants 20,381 2 (2 ) - - - - - -
Amortization of share-based compensation - - 89,820 - - - 89,820 - 89,820
Net income (loss) - - - - 2,548,678 - 2,548,678 (19,018 ) 2,529,660
Foreign currency translation adjustment - - - - - 487,799 487,799 (2,296 ) 485,503
Balance at March 31, 2022 8,350,381 $ 835 $ 15,630,251 $ 1,050,721 $ 11,741,354 $ 710,020 $ 29,133,181 $ 506,551 $ 29,639,732
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 initial public offerings, net 2,750,000 275 2,199,725 - - - 2,200,000 - 2,200,000
Amortization of stock options - - 35,000 - - 35,000 - 35,000
Net income (loss) - -- - - 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

BON NATURAL LIFE LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

For the six months ended

March 31,

2023 2022
Cash flows from operating activities
Net income $ 2,102,656 $ 2,529,660
Adjustments to reconcile net income to cash provided by operating activities
Allowance for doubtful accounts - 187
Depreciation and amortization 282,888 112,945
Inventory reserve 105,314 -
Deferred income tax (25,749 ) (28 )
Amortization of operating lease right-of-use assets 114,179 33,122
Amortization of stock options 35,000 89,820
Unrealized foreign currency exchange loss (8,452 ) 16,994
Gain on disposal of property and equipment - (745 )
Changes in operating assets and liabilities:
Accounts receivable (2,198,450 ) (1,265,109 )
Inventories (124,601 ) (515,690 )
Advance to suppliers, net (3,353,433 ) 977,033
Prepaid expenses and other current assets (3,595,458 ) (38,795 )
Accounts payable 100,386 165,741
Operating lease liabilities (115,170 ) (30,589 )
Taxes payable 386,510 (1,806,543 )
Deferred revenue 781,183 (440,032 )
Accrued expenses and other current liabilities 3,335,205 41,452
Net cash used in operating activities (2,177,992 ) (130,577 )
Cash flows from investing activities
Purchase of short-term investments - (3,678,199 )
Proceeds upon redemption of short-term investments - 5,273,186
Purchase of property and equipment (15,131 ) (10,231 )
Proceeds from sales of property and equipment - 1,659
Capital expenditures on construction-in-progress (2,970 ) (3,577,995 )
Net cash used in investing activities (18,101 ) (1,991,580 )
Cash flows from financing activities
Net proceeds from issuance of Ordinary Shares in initial public offerings 2,200,000 -
Proceeds from short-term loans 259,767 1,608,378
Proceeds from long-term loans - 594,864
Repayment of short-term loans (79,165 ) (41,945 )
Repayment of long-term loans (437,412 ) (339,343 )
Proceeds from (repayment of) borrowings from related parties (1,038 ) 91,965
Principal repayment of capital lease (27,236 ) (89,465 )
Net cash provided by financing activities 1,914,916 1,824,454
Effect of changes of foreign exchange rates on cash (17,412 ) 2,915
Net decrease in cash (298,589 ) (294,788 )
Cash, beginning of period 840,861 1,903,867
Cash, end of period $ 542,272 $ 1,609,079
Supplemental disclosure of cash flow information
Cash paid for interest expense $ 178,557 $ 277,764
Cash paid for income tax $ 500,251 $ 785,853
Supplemental disclosure of non-cash investing and financing activities
Amortization of share-based compensation for initial public offering services $ 35,000 $ 89,820
Right-of-use assets obtained in exchange for operating lease obligations $ 458,181 $ -

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Bon Natural Life Ltd. published this content on 11 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 September 2023 15:06:02 UTC.