v3.26.1
Taxes (Tables)
 6 Months Ended
Mar. 31, 2026
Taxes [Abstract]  
Schedule of Pre-Tax (Loss) Income

The Company’s pre-tax (loss) income is derived from the following tax jurisdictions:

 

    For the Six Months Ended  
    March 31,  
    2026     2025  
    (Unaudited)     (Unaudited)  
PRC   $ (35,333,864 )   $ 2,585,780  
HK     57,691       (69,944 )
US     (43,670 )     —  
Cayman     (15,270,725 )     2,807,984  
(Loss) income before income taxes   $ (50,590,568 )   $ 5,323,820  

 
Schedule of Provision for Income Tax

The provision for income tax consisted of the following:

 

   

For the Six Months ended

March 31,

  
    2026     2025  
    (Unaudited)     (Unaudited)  
Current income tax expense   $ 69,168   $ 71,056  
Uncertain tax provisions     —       213,228  
Deferred income tax expense     —       —  
Income tax provision   $ 69,168     $ 284,284  
Schedule of Reconciles the Statutory Rate

The following table reconciles the statutory rate to the Company’s effective tax rate:

 

   

For the Six Months Ended

March 31,

  
    2026     2025  
PRC statutory tax rate     25.0 %     25.0 %
Effect of tax holiday and preferential tax rate(a)     (10.0 )%     (12.8 )%
Additional deduction for R&D expenses     1.3 %     (11.9 )%
Non-deductible expenses     —       — %
Effect of change in valuation allowance     (8.8 )%     17.2 %
Effect of different tax rates in a foreign jurisdiction     (7.7 )%     (12.3 )%
Effective tax rate     (0.2 )%     5.2 %

 

(a) The Company’s subsidiaries, Global Mofy China, Kashi Mofy, Shanghai Mofy, Xi’an Mofy and Beijing Mofy are subject to different favorable tax rates and tax holiday for the years ended March 31, 2026 and 2025. Kashi Mofy is eligible for a preferential tax rate of 9%, Global  Mofy is eligible for a preferential tax rate of 15% and Shanghai Mofy, Xi’an Mofy, Beijing Mofy and Zhejiang Mofy are eligible for a preferential tax rate of 5% in 2025. For the months ended March 31, 2026 and 2025 the tax saving as the result of the favorable tax rate and tax holiday amounted to $5,027,848  and $697,343, respectively, and per share effect of the favorable tax rate (after stock reverse split) were $6.97 and $6.03, respectively.
Schedule of Components of Deferred Tax Assets and Liabilities

Components of deferred tax assets and liabilities were as follows:

 

   

March 31,

2026

    

September 30,

2025

  
    (Unaudited)          
Provision for doubtful debt   $ 68,633     $ 309,316  
Tax loss carry forwards     2,256,645       1,247,604  
Excess marketing and advertising expense (15%)     —       —  
Operating lease liabilities     36,470       45,627  
Total deferred tax assets     2,361,748       1,602,547  
                 
Less: Valuation allowance     (2,323,997 )     (1,554,869 )
Total deferred tax assets, net of valuation allowance   $ 37,751     $ 47,678  
Schedule of Net Operating Loss Carry Forward
   

March 31,

2026

    

September 30,

2025

  
    (Unaudited)          
Right of use assets   $ 37,751     $ 47,678  
Total deferred tax liabilities     37,751       47,678  
Total deferred tax assets, net   $ —     $ —  
Schedule of Unrecognized Tax Benefit

A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows:

 

   

March 31,

2026

    

September 30,

2025

  
    (Unaudited)          
Balance as of beginning of year   $ 2,587,800     $ 1,940,649  
Increase related to prior year tax positions     71,912       (16,088 )
Increase related to current year tax positions     69,168       663,238  
Balance as of end of year   $ 2,728,880     $ 2,587,800  
Schedule of Tax Payable

Tax payable consisted of the following:

 

   

March 31,

2026

    

September 30,

2025

  
    (Unaudited)          
VAT payable   $ 681,904     $ 63,709  
Corporate income tax payable     2,728,880       2,587,799  
Other tax     5,707       878  
Tax payable   $ 3,416,491     $ 2,652,385