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

INTANGIBLE ASSETS

v3.21.4
INTANGIBLE ASSETS
12 Months Ended
Sep. 30, 2021
INTANGIBLE ASSETS  
INTANGIBLE ASSETS

NOTE 7 – INTANGIBLE ASSETS

As of September 30, 

    

2021

    

2020

Land use rights, cost

$

617,895

$

586,389

Software, cost

 

8,803,367

 

517,954

Other intangible assets, cost

1,732

1,643

Less: accumulated amortization

 

(673,007)

 

(176,965)

Intangible assets, net

$

8,749,987

$

929,021

The land use right represents the Company’s land use rights in Wenzhou’s plant, which had been pledged to secure the Company’s banking facilities granted to the Company as of September 30, 2021 and 2020. The carrying values of the pledged land use rights to secure bank borrowings by the Company are shown in Note 11.

During the fiscal year ended September 30, 2021, the Company entered into a series of consulting agreements with third-party entity and individuals to develop and implement the following software platforms:

The DeFi (decentralized finance) Protocol, a stablecoin DEX (decentralized exchange) and liquidity mining platform, available at https://xsigma.fi.
Two flagship trading platforms, "xSigma Trading" for CFD trading and "xSigma Trader" for Crypto, Crypto Options and Crypto derivatives.
MaximNFT platform (“MaximNFT”), available at www.maximnft.com, the exclusive NFT (Non-Fungible Token) marketplace partners with Maxim, the iconic men's lifestyle brand. It will allow customers to create and sell NFTs on various blockchains, including, but not limited to, Ethereum, Binance Smart Chain, and Polkadot.

The software platforms are intended for internal use which is to provide services to customers and the Company does not have any plan to market the software for sales externally. In exchange of the development services provided, the Company paid consideration in the form of cash, stock and stock warrants, and all the costs incurred during the Application development Stage were capitalized pursuant to ASC 350-40-25.

Amortization expense was $481,763 and $11,366 for the years ended September 30, 2021 and 2020, respectively.