Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

LOSS ON INVESTMENT

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LOSS ON INVESTMENT
12 Months Ended
Sep. 30, 2020
LOSS ON INVESTMENT  
LOSS ON INVESTMENT

NOTE 16 – LOSS ON INVESTMENT

During 2019 fiscal year, the Company entered into a series of agreements with Hangzhou Xuanchuan Network Technology Co., Ltd (“Xuanchuan”) to set forth framework for a potential investment in Xuanchuan. The Company paid a total of RMB 1,600,000 (approximately $ 228,389) to Xuanchuan as deposit in order to execute the agreements between the Company and Xuanchuan. During 2020 fiscal year, the management team of the Company decided to terminate the agreement as Xuanchuan could not prove its potential growth as expected. The Company was sued by Xuanchuan for breach of contract. The court ruled in favor of Xuanchuan and the Company was ordered to surrender the deposit and pay additional RMB 200,000 to Xuanchuan as legal compensation. The Company recorded a loss of $256,937 on this investment.