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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Jiuzi Holdings Inc | NASDAQ:JZXN | NASDAQ | Common Stock |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.65 | 1.60 | 1.75 | 1.83 | 1.60 | 1.63 | 61,803 | 16:51:43 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
REPORT OF FOREIGN PRIVATE
ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of September
(Exact name of registrant as specified in its charter)
No.168 Qianjiang Nongchang Gengwen Road, 15th Floor
Economic and Technological Development Zone
Xiaoshan District, Hangzhou City
Zhejiang Province 310000
People’s Republic
of China
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Explanatory Note
This Form 6-K is hereby incorporated by reference into the Registration Statements of the Company on Form S-8 (File No. 333-269332) and Registration Statement on Form F-3 (File No. 333-267617). Attached hereto as Exhibit 99.1 is Registrant’s Condensed Interim Unaudited Consolidated Financial Statements as of April 30, 2024 and for the Six Months ended April 30, 2024 and April 30, 2023.
1
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: September 9, 2024 |
Jiuzi Holdings Inc. | |
| By: | /s/ Tao Li | |
| Tao Li | ||
| Chief Executive Officer | ||
2
Financial Statements and Exhibits.
Exhibit No. |
Description | |
| 99.1 | Unaudited Interim Consolidated Financial Statements as of April 30, 2024 and for the Six Months Ended April 30, 2024 and 2023 | |
| 101.INS | XBRL Instance Document | |
| 101.SCH | XBRL Taxonomy Extension Schema Document | |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
3
Exhibit 99.1
Jiuzi Holdings, Inc.
Consolidated Balance Sheets
(In U.S. Dollars)
| April 30, | October 31, | |||||||
| 2024 | 2023 | |||||||
| Unaudited | Audited | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Restricted cash | ||||||||
| Short-term investment | ||||||||
| Loans receivable | ||||||||
| Loans receivable - related party | ||||||||
| Accounts receivable | ||||||||
| Accounts receivable - related party | ||||||||
| Due from related parties | ||||||||
| Inventory, net | ||||||||
| Advances to suppliers | ||||||||
| Other receivables and other current assets | ||||||||
| Assets related to discontinued operation | ||||||||
| Total Current Assets | ||||||||
| Non-Current Assets | ||||||||
| Property, plant and equipment, net | ||||||||
| Intangible assets, net | ||||||||
| Other non-current assets | ||||||||
| Operating lease right of use asset | ||||||||
| Assets related to discontinued operation | ||||||||
| Total Non-Current Assets | ||||||||
| Total Assets | ||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accruals and other payables | ||||||||
| Accounts payable | ||||||||
| Accounts payable – related party | ||||||||
| Due to related parties | ||||||||
| Taxes payable | ||||||||
| Operating lease liabilities – current | ||||||||
| Contract liability | ||||||||
| Contract liability - related party | ||||||||
| Liability related to discontinued operation | ||||||||
| Total Current Liabilities | ||||||||
| Non-Current Liabilities | ||||||||
| Operating lease liabilities - non-current | ||||||||
| Deferred income | ||||||||
| Liability related to discontinued operation | ||||||||
| Total Non-Current Liabilities | ||||||||
| Total Liabilities | ||||||||
| Commitments and Contingencies | ||||||||
| Shareholders’ Equity | ||||||||
| Ordinary shares, $ | ||||||||
| Additional paid-in capital | ||||||||
| Statutory reserve | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Accumulated other comprehensive loss | ( | ) | ( | ) | ||||
| Total equity attributable to Jiuzi Holdings, Inc. | ||||||||
| Non-controlling interest | ||||||||
| Total Equity | ||||||||
| Total Liabilities and Shareholders’ Equity | $ | $ | ||||||
See accompanying notes to financial statements.
1
Jiuzi Holdings, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(In U.S. Dollars) Unaudited
| Six Months Ended | Six Months Ended | |||||||
| April 30, | April 30, | |||||||
| 2024 | 2023 | |||||||
| Revenues, net | $ | $ | ||||||
| Revenues – related party, net | ||||||||
| Total Revenues | ||||||||
| Cost of revenues | ||||||||
| Cost of revenues– related party | ||||||||
| Total cost of revenues | ||||||||
| Gross loss | ( | ) | ( | ) | ||||
| Selling and marketing expense | ||||||||
| General and administrative expenses | ||||||||
| Share-based compensation | ||||||||
| Provision for credit loss on loans receivable | ||||||||
| Reversal of bad debt provision | ( | ) | ||||||
| Operating expense | ||||||||
| Loss before tax | ( | ) | ( | ) | ||||
| Non-operating income (expense) items: | ||||||||
| Other income (expense), net | ||||||||
| Interest income | ||||||||
| Interest expense | ( | ) | ( | ) | ||||
| ( | ) | ( | ) | |||||
| Loss before income tax | ( | ) | ( | ) | ||||
| Income tax | ||||||||
| Gain/(loss) from discontinued operations | ( | ) | ||||||
| Net loss | ( | ) | ( | ) | ||||
| Less: Loss attributable to non-controlling interest | ( | ) | ( | ) | ||||
| Net income (loss) attributable to controlling interest | ( | ) | ( | ) | ||||
| Loss per share | ||||||||
| ( | ) | ( | ) | |||||
| Weighted average number of ordinary shares outstanding* | ||||||||
| Net loss | ( | ) | ( | ) | ||||
| Other comprehensive income | ||||||||
| Foreign currency translation income | ||||||||
| Total comprehensive loss | ( | ) | ( | ) | ||||
See accompanying notes to financial statements.
2
Jiuzi Holdings, Inc.
Consolidated Statements of Changes in Shareholders’ Equity
(In U.S. Dollars) Unaudited
| Common Stock | Additional | Accumulated other | Equity attributable | Non- | ||||||||||||||||||||||||||||||||
| Number of | Paid-in | Statutory | Retained | Comprehensive | to | Controlling | Total | |||||||||||||||||||||||||||||
| Shares | Amount | Capital | Reserve | Earnings | Income | Jiuzi | interest | Equity | ||||||||||||||||||||||||||||
| Balance at October 31, 2022 | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
| Shares issued for cash proceeds, net | ||||||||||||||||||||||||||||||||||||
| Shares issued for compensation | ||||||||||||||||||||||||||||||||||||
| Shares issued for debt conversion | ||||||||||||||||||||||||||||||||||||
| Contribution (Distribution) in capital | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
| Net income | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||
| Non-Controlling Interest | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
| Appropriations to statutory reserves | - | |||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | ( | ) | |||||||||||||||||||||||||||||||||
| Balance at April 30, 2023 | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
| Balance at October 31, 2023 | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
| Shares issued for cash proceeds, net | ||||||||||||||||||||||||||||||||||||
| Shares issued for compensation | ||||||||||||||||||||||||||||||||||||
| Shares issued for debt conversion | - | |||||||||||||||||||||||||||||||||||
| Contribution (Distribution) in capital | - | |||||||||||||||||||||||||||||||||||
| Net income | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||
| Non-Controlling Interest | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
| Disposition of discontinued operation | - | |||||||||||||||||||||||||||||||||||
| Appropriations to statutory reserves | - | |||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||
| Balance at April 30, 2024 | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
See accompanying notes to financial statements.
3
Jiuzi Holdings, Inc.
Consolidated Statements of Cash Flows
(In U.S. Dollars) Unaudited
| Six Months Ended | Six Months Ended | |||||||
| April 30, | April 30, | |||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | ( | ) | $ | ( | ) | ||
| Net income (loss) from discontinued operation | ( | ) | ||||||
| Net income (loss) from continuing operation | ( | ) | ( | ) | ||||
| Depreciation and amortization | ||||||||
| (Recovery)/Provision for doubtful accounts | ( | ) | ||||||
| Amortization of operating lease ROU assets | ||||||||
| Impairment loss/write-downs off other assets | ||||||||
| Imputed interest expense | ||||||||
| Loss from disposal of assets | ||||||||
| Stock-based compensation | ||||||||
| Changes in assets and liabilities | ||||||||
| (Increase) decrease in accounts receivable | ||||||||
| (Increase) decrease in accounts receivable – related party | ( | ) | ||||||
| (Increase) decrease in inventories | ||||||||
| (Increase) decrease in advances to suppliers | ||||||||
| (Increase) decrease in notes receivable- customers sales | ||||||||
| (Increase) decrease in notes receivable-related party customers sales | ( | ) | ( | ) | ||||
| (Increase) decrease in loans to related parties | ( | ) | ||||||
| (Increase) decrease in due from related parties | ( | ) | ||||||
| (Increase) decrease other receivables | ( | ) | ||||||
| (Increase) decrease in other assets | ( | ) | ( | ) | ||||
| (Decrease) increase in accrued and other liabilities | ( | ) | ||||||
| Decrease in account payable | ( | ) | ( | ) | ||||
| (Increase) decrease in accounts payable – related party | ( | ) | ||||||
| (Increase) decrease in taxes payable | ( | ) | ||||||
| (Decrease) increase in contract liability | ( | ) | ||||||
| (Decrease) increase in contract liability – related party | ( | ) | ||||||
| (Decrease) increase in operating lease liabilities | ||||||||
| Net cash used in operating activities of continued operations | ( | ) | ( | ) | ||||
| Net cash provided by (used in) operating activities of discontinued operations | ( | ) | ||||||
| Cash Used in Operating Activities | ( | ) | ( | ) | ||||
| Cash flows from investing activities | ||||||||
| Purchase of fixed assets | ( | ) | ||||||
| Acquisition of investment | ( | ) | ||||||
| Disposal of fixed assets | ||||||||
| Redemption/disposal of investments | ||||||||
| Net cash (used in)/provided by investing activities of continued operations | ( | ) | ||||||
| Net cash (used in ) investing activities of discontinued operations | ( | ) | ( | ) | ||||
| Cash (used in)/provided by Investing Activities | ( | ) | ||||||
| Cash flows from financing activities | ||||||||
| Proceeds from owner’s injection of capital | ||||||||
| Repayment to related party payable | ( | ) | ||||||
| Repayments of convertible debenture | ( | ) | ||||||
| Net cash provided by financing activities of continued operations | ||||||||
| Net cash provided by financing activities of discontinued operations | ||||||||
| Cash provided by Financing Activities | ||||||||
| Net decrease of cash and cash equivalents | ( | ) | ( | ) | ||||
| Effect of foreign currency translation on cash and cash equivalents | ||||||||
| Cash, cash equivalents, and restricted cash – beginning of period | ||||||||
| Less: cash and cash equivalents of discontinued operations | ||||||||
| Cash, cash equivalents, and restricted cash – end of period | $ | $ | ||||||
| Reconciliation of Cash, Cash Equivalents & Restricted Cash to Statements of Cash Flows | ||||||||
| Cash & cash equivalents | ||||||||
| Restricted cash | ||||||||
| Total cash, cash equivalents, and restricted cash | $ | $ | ||||||
| Supplementary cash flow information: | ||||||||
| Interest received | $ | $ | ||||||
| Interest paid | $ | $ | ||||||
| Income taxes paid | $ | $ | ||||||
| Non-cash financing and investing activities: | ||||||||
| Notes payable converted to common stock | $ | $ | ||||||
See accompanying notes to financial statements.
4
Jiuzi Holdings, Inc.
Notes to the Financial Statements
NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION
Jiuzi Holdings, Inc. (the “Company” or “Jiuzi Holdings”) was incorporated in the Cayman Islands on October 10, 2019. The Company is a holding company whose operations are conducted through subsidiaries as described below.
Jiuzi New York Inc. (“Jiuzi New York”), a New York corporation established on April 3,2023. It is a wholly owned subsidiary of Jiuzi Holdings involved in corporate investment consulting.
Jiuzi (HK) Limited (“Jiuzi HK”) was incorporated in Hong Kong on October 25, 2019. It is a wholly owned subsidiary of the Company. It does not have any operation other than acting as a Hong Kong based holding company.
Zhejiang Navalant New Energy Automobile Co., Ltd. (“Jiuzi WFOE”) was incorporated on June 5, 2020 as a foreign owned entity in the People’s Republic of China (“PRC”). Jiuzi WFOE is a wholly owned subsidiary of Jiuzi HK. It does not have any operation other than acting as a PRC based holding company.
Zhejiang Jiuzi New Energy Holding Group Co., Ltd. (“Jiuzi Energy Holding) was incorporated on May 9, 2022 under the laws of the PRC. It is a wholly-owned subsidiary of Jiuzi HK and is mainly involved in research and development of automotive components; sales of new energy vehicles (“NEVs”) and electrical accessories for NEVs vehicles; sales of charging/battery swap infrastructure for NEVs; and sales of automotive spare parts and accessories.
Jiuzi HaoChe Supply Chain Co., Ltd. (“Haoche Supplychain”) was incorporated on September 6, 2021 under the laws of the PRC. It is a wholly-owned subsidiary of Zhejiang Navalant. It is mainly involved in management services of supply chain, automobiles sales and sales of NEVs..
Zhejiang Jiuzi New Energy Automobile Co. Ltd. (“Zhejiang Jiuzi”) was incorporated on May 26, 2017 in the PRC. Zhejiang Jiuzi’s scope of business includes the sale of NEVs and NEV components and parts, and the related development of products and services for the NEV industry. Zhejiang Jiuzi generates revenues by both selling NEVs and NEV components and parts to Jiuzi branded licensed NEV dealerships, and by rendering professional services to new Jiuzi NEV dealerships, such as initial setup, NEV product procurement services and specialized marketing campaigns.
5
Jiuzi Holdings, Inc.
Notes to the Financial Statements
Shangli
Jiuzi New Energy Automobile Co., Ltd. (“Shangli Jiuzi “) was incorporated on May 10, 2018 in the PRC. Its scope of business
is similar to Zhejiang Jiuzi. Zhejiang Jiuzi owns a
Hangzhou Zhitongche Technology Co., Ltd. (“Hangzhou Zhitongche”) was incorporated on February 2, 2018 in the PRC. It provides technical services, technical development, technical consulting and trading for NEVs and NEV accessories. Hangzhou Zhitongche is a wholly owned subsidiary of Zhejiang Jiuzi.
Guangxi
Nanning Zhitongche New Energy Technology Co., Ltd. (“Guangxi Nanning”) was incorporated on December 31, 2021 in the PRC. Its
scope of business includes technical service, development and consultation; sales of electrical accessories for NEVs; new car sales; business
agency services. Hangzhou Zhitongche owns a
Hangzhou
Jiuyao New Energy Automobile Technology Co. Ltd. (“Hangzhou Jiuyao “) was incorporated on January 24, 2022 in the PRC. Its
scope of business includes technical services, technology development, technical consultation and promotion, as well as sales of automobiles
and NEVs, and sales of electrical accessories and accessories for NEVs. Hangzhou Jiuyao is
Hangzhou
Jiuyao Youche Network Technology Co. Ltd. (“Jiuyao Youche”) was incorporated on August 8, 2022 in the PRC. Its scope of business
includes rentals and sales of NEVs. Jiuyao Youche is
Jiuzi International (HK) Limited. (“New Energy Holding HK”) was incorporated on May 23, 2023 under the laws of the Hong Kong Special Administrative Region of the PRC. It is a wholly owned subsidiary of Jiuzi New York.It is mainly involved in corporate investment consulting.
Shenzhen Jiuzi New Energy Holding Group Co., Ltd. was incorporated on August 1, 2023 under the laws of the PRC. It is a wholly owned subsidiary of New Energy Holding HK and is mainly involved in sales of electrical accessories for NEVs, sales of charging/battery swap infrastructure for NEVs, sales of electrical chargers, operating electric charging infrastructure for NEVs, leasing of charging control equipment, and research and development of emerging energy technology.
6
Jiuzi Holdings, Inc.
Notes to the Financial Statements
On November 10, 2022, Zhejiang Jiuzi New
Energy Automobile Co., Ltd.(“Zhejiang Jiuzi”), a variable interest entity (of the Company, entered into a termination
agreement (the “Termination Agreement”) Jiuzi WFOE, pursuant to which the Exclusive Option Agreement, the Exclusive
Business Cooperation Agreement and the Equity Pledge Agreement (collectively the “VIE Agreements”) entered into among
Zhejiang Jiuzi, Jiuzi WFOE and certain shareholders of Zhejiang Jiuzi would be terminated. On November 10, 2022, with approval
of Jiuzi WFOE and approval of the board of directors of Zhejiang Jiuzi, Zhejiang Jiuzi issued a
The chart below reflect our organization structure:
7
Jiuzi Holdings, Inc.
Notes to the Financial Statements
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the Company and its subsidiary. Significant inter-company transactions have been eliminated in consolidation.
Going Concern and Management’s Plan
The accompanying
consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the
realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. As of April 30, 2024,
the Company had an accumulated deficit of $
The Company plans to establish provincial regional sales centers in key cities and regions across the PRC, particularly in the Pearl River Delta and Yangtze River Delta areas to geographically expand the market and adopt centralized procurement system to reduce overhead cost and obtain volume discount. The Company also intends to cooperate with more manufacturers of NEVs, introduce more quality services and strengthen its publicity to attract more franchisees. Additionally, the Company intends to raise additional capital to provide additional funds to meet current and future liquidity needs. Management believes that it will be able to obtain the necessary financing and fund future expansion plans; however, there is no assurance that the Company will be successful in securing sufficient funds to sustain or grow its operations.
These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern.
8
Jiuzi Holdings, Inc.
Notes to the Financial Statements
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results and outcomes may differ from management’s estimates and assumptions. In particular, the novel coronavirus (“COVID-19”) pandemic and the resulting adverse impacts to global economic conditions, as well as our operations, may impact future estimates including, but not limited to, our allowance for loan losses, inventory valuations, fair value measurements, asset impairment charges and discount rate assumptions. Certain prior year amounts have been reclassified to conform to the current year’s presentation. Amounts and percentages may not total due to rounding.
Functional and presentation currency
The functional currency of the Company is the currency of the primary economic environment in which the Company operates which is Chinese Yuan (“RMB”).
Transactions in currencies other than the entity’s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at the end of the reporting periods. Exchange differences arising on the settlement of monetary items and on translation of monetary items at period-end are included in income statement of the period.
For the purpose of presenting these financial statements, the Company’s assets and liabilities are expressed in US$ at the exchange rate on the balance sheet date, stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets.
US$ to RMB
| Period End | Average | |||||||
| April 30, 2024 | ||||||||
| October 31, 2023 | ||||||||
| April 30, 2023 | ||||||||
9
Jiuzi Holdings, Inc.
Notes to the Financial Statements
Fair Values of Financial Instruments
The Company adopted ASC 820 “Fair Value Measurements,” which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosures requirements for fair value measures. Current assets and current liabilities qualified as financial instruments and management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their current interest rate is equivalent to interest rates currently available. The three levels are defined as follow:
| ● | Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. |
| ● | Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. |
| ● | Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value. |
As of the balance sheet date, the estimated fair values of the financial instruments approximated their fair values due to the short-term nature of these instruments. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates the hierarchy disclosures each year.
Related parties
The Company adopted ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.
Cash and Equivalents
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
Restricted Cash
Restricted cash consists primarily of amounts preserved under a legal hold due to a complaint by a customer from an on-going litigation or amounts preserved for other purposes as required. Based on experience, they should be resolved within one calendar year or have a final conclusion. Conditions for lifting restrictions include withdrawal of the lawsuit by the customer, mutual settlement, or a final court judgment that has been fully executed.
10
Jiuzi Holdings, Inc.
Notes to the Financial Statements
Accounts Receivable
Accounts receivable are recorded at the net value less estimates for expected credit losses. Management regularly reviews outstanding accounts and provides an allowance for doubtful accounts. When collection of an original invoice amount is no longer probable, the Company will either partially or fully write-off the balance against the allowance for doubtful accounts.
Short-term investments
Short-term investments consist primarily of investments
in fixed deposits with original maturities between three months and one year and certain investments in wealth management products and
other investments that the Company has the intention to redeem within one year. As of April 30, 2024 and October 31, 2023, bank deposits
that were recorded as short-term investments amounted to $
Loans Receivable
Loans receivable are recorded at origination at the fair value less estimates for expected credit losses. Management regularly reviews outstanding accounts and provides an allowance for credit losses. When collection of the original amounts is no longer probable, the Company will either partially or fully write-off the balance against the allowance for credit losses.
Revenue Recognition
In 2014, the FASB issued guidance on revenue recognition (“ASC 606”), with final amendments issued in 2016. The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients.
11
Jiuzi Holdings, Inc.
Notes to the Financial Statements
The Company’s revenues consist of sales of vehicles to third party customers by its retail store, sales of vehicles to franchisees, fees from retail stores operated by franchisees, and subleases of vehicles to third party customers. Revenues from franchised stores include initial franchise fees and annual royalties based on a percent of net income.
The Company recognizes revenues from the sale of vehicles at the point in time when the Company has transferred physical possession of the vehicle to the customer and the customer has accepted the vehicle, therefore, indicating control has been transferred to the customer. The transaction price is determined and allocated to the product prior to the transfer of the vehicle to the customer.
The franchise services include a series of performance obligations and an indefinite license to use the Company’s trademark. The series of performance obligations are specific services and deliverables that are set forth in the agreement and are billed and receivable as delivered and accepted by the franchisee. These services and deliverables may be customized and are not transferable to other third parties.
Royalty revenues are distinct from the initial franchise services. The Company recognizes royalty revenues only when the franchisee has generated positive annual net income, at which point the Company has the contractual right to request for payment of the royalty. The royalty is calculated as a percentage of the franchisees’ annual net income.
The Company subleases vehicles to third parties and recognizes revenues over time which is ratably on a monthly basis over the term of the lease agreement.
The Company estimates potential returns and records such estimates against its gross revenue to arrive at its reported net sales revenue. The Company has not experienced any sales returns.
Inventory
Inventories, which are primarily comprised of merchandise for sale, are stated at the lower of cost or net realizable value, using the first-in first-out method. The Company evaluates the need for reserves associated with obsolete, slow-moving and non-salable inventory by reviewing net realizable values on a periodic basis. Only products with defects can be return to our suppliers.
Advertising
The Company expenses advertising costs as incurred
and includes it in selling expenses. The Company recorded and $
12
Jiuzi Holdings, Inc.
Notes to the Financial Statements
Income Taxes
Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry-forwards. Deferred tax expense (benefit) results from the net change during the years of deferred tax assets and liabilities.
Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of all of the deferred tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
A tax benefit from an uncertain tax position may be recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that the relevant taxing authority that has full knowledge of all relevant information will examine each uncertain tax position. Although the Company believes the estimates are reasonable, no assurance can be given that the final outcome of these matters will not be different than what is reflected in the historical income tax provisions and accruals.
Loss per share
Basic loss per share is computed by dividing net loss attributable to the holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted loss per share is calculated by dividing the net loss attributable to the holders of ordinary shares as adjusted for the effect of dilutive ordinary share equivalents, if any, by the weighted average number of ordinary shares and dilutive ordinary share equivalents outstanding during the period. However, ordinary share equivalents are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive, such as in a period in which a net loss is recorded.
All per share amounts for all periods presented herein have been adjusted to reflect the Share Subdivision and 2 for 1 stock dividend on a post-Share Subdivision basis. See Note 17.
Property and Equipment & Depreciation
Property and equipment are stated at historical
cost net of accumulated depreciation. Repairs and maintenance are expensed as incurred.
| Equipment | ||
| Furniture and fixtures | ||
| Motor vehicles |
13
Jiuzi Holdings, Inc.
Notes to the Financial Statements
Intangible Assets & Amortization
Intangible assets are stated at historical cost net of accumulated amortization. Software is amortized on a straight-line basis over the estimated useful life of the software which is years.
Impairment of Long-Lived assets
The Company accounts for impairment of property and equipment and amortizable intangible assets in accordance with ASC 360, “Accounting for Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of”, which requires the Company to evaluate a long-lived asset for recoverability when there is event or circumstance that indicate the carrying value of the asset may not be recoverable. An impairment loss is recognized when the carrying amount of a long-lived asset or asset group is not recoverable (when carrying amount exceeds the gross, undiscounted cash flows from use and disposition) and is measured as the excess of the carrying amount over the asset’s (or asset group’s) fair value.
New Accounting Pronouncements
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires incremental reportable segment disclosures, primarily about significant segment expenses. The amendments also require entities with a single reportable segment to provide all disclosures required by these amendments, and all existing segment disclosures. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods after December 15, 2024. The Company will adopt this guidance for the year ended October 31, 2024. This guidance is expected to only impact the disclosures with no impact on the results of operations, financial position or cash flows.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, to enhance the transparency and decision usefulness of income tax disclosures. The guidance includes improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid. This guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is in the process of evaluating when it will adopt this guidance and the potential effects this guidance will have on its disclosures.
Besides the above, the Company’s management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted would have a material effect on the consolidated financial statements.
14
Jiuzi Holdings, Inc.
Notes to the Financial Statements
NOTE 3 – INVENTORY
| April 30, 2023 | October 31, 2023 | |||||||
| Merchandise | $ | $ | ||||||
| Total, net | $ | $ | ||||||
Inventory write-down expense was $ for the six months ended April 30, 2024 and 2023, respectively.
NOTE 4 – ACCOUNTS RECEIVABLE
| April 30, 2024 | October 31, 2023 | |||||||
| Accounts receivable | $ | $ | ||||||
| Allowance for doubtful accounts | ( | ) | ( | ) | ||||
| Total, net | ||||||||
| April 30, | October 31, | |||||||
| 2024 | 2023 | |||||||
| Accounts receivable-related franchisees | $ | $ | ||||||
| Allowance for doubtful accounts | ( | ) | ( | ) | ||||
| Total, net | $ | $ | ||||||
| April 30, 2024 | October 31, 2023 | |||||||
| Balance at beginning of period | $ | $ | ||||||
| Provision | ||||||||
| Effect of translation adjustment | ( | ) | ( | ) | ||||
| Balance at end | $ | $ | ||||||
Bad debt
expense (recoveries) was $
15
Jiuzi Holdings, Inc.
Notes to the Financial Statements
NOTE 5 – SHORT-TERM INVESTMENT
| As of April 30, 2024 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Bank deposits | $ | $ | ||||||||||||||
| $ | $ | |||||||||||||||
| As of October 31, 2023 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Bank deposits | $ | $ | ||||||||||||||
| $ | $ | |||||||||||||||
NOTE 6 – LOANS RECEIVABLE FRANCHISEES
Loans receivable include amounts due from related franchisees and are presented net of imputed interest and an allowance for estimated loan losses. The loans are provided in the form of credit line to related franchisee to support their operations. These loans are unsecured with a due date of 18 months upon initial drawing.
Management has determined that the 18-month borrowing rate most appropriately captures the financing cost for these loans. Given that the loans are in the form of credit lines to the franchisees that may have varying balances over time, as a practical expedient, management has elected to expense the interest as a cost of revenue at inception rather than amortize the expense over time.
The amounts
charged were $, and $
The allowance for loan losses represents an estimated amount of net losses inherent in our portfolio of managed receivables as of the applicable reporting date and expected to become evident during the following 12 months.
Each lending request is evaluated by considering the borrower’s financial condition. The Company uses a proprietary model to assign each franchisee a risk rating. This model uses historical franchisee performance data to identify key factors about a franchisee that are considered most significant in predicting a franchisee’s ability to meet its financial obligations. The Company also considers numerous other financial and qualitative factors of the franchisee’s operations, including capitalization and leverage, liquidity and cash flow, profitability, and credit history with the Company and other creditors.
16
Jiuzi Holdings, Inc.
Notes to the Financial Statements
The Company also consider recent trends in delinquencies and defaults, recovery rates, age of the loans. and the economic environment in assessing the models used in estimating the allowance for loan losses, and may adjust the allowance for loan losses to reflect factors that may not be captured in the models. In addition, the Company periodically consider whether the use of additional metrics would result in improved model performance and revise the models when appropriate. The provision for loan losses is the periodic expense of maintaining an adequate allowance.
An account is considered delinquent when the related franchisee fails to make a substantial portion of a scheduled payment three months after the due date. For purposes of determining impairment, loans are evaluated collectively, as they represent a large group of smaller-balance homogeneous loans, and therefore, are not individually evaluated for impairment.
As these loans are non-interest bearing, the Company
recorded a discount to the face amount using an imputed interest rate of
| April 30, 2024 | October 31, 2023 | |||||||
| Loan to related franchisees, gross | $ | $ | ||||||
| Discount based on imputed interest rate of | ( | ) | ( | ) | ||||
| Loan to franchisees, net of discount | $ | $ | ||||||
| April 30, 2024 | October 31, 2023 | |||||||
| Loan to franchisees, net of discount | $ | $ | ||||||
| Provision for credit losses | ( | ) | ( | ) | ||||
| Loan to franchisees, net of discount and allowance | $ | $ | ||||||
| April 30, 2024 | October 31, 2023 | |||||||
| Balance at beginning of period | $ | $ | ||||||
| Provision for credit losses | ||||||||
| Effect of translation adjustment | ( | ) | ||||||
| Balance at end | $ | $ | ||||||
Credit losses were $
17
Jiuzi Holdings, Inc.
Notes to the Financial Statements
| April 30, 2024 | October 30, 2023 | |||||||
| Loans to related franchisees, net of discounts and allowances, current | $ | $ | ||||||
| $ | $ | |||||||
Credit Quality
The Company extends credit to franchisees primarily in the form of lines of credit to purchase vehicles and support their daily operations. Each of the franchisees are assigned to one of four groups according to the risk ratings with Group I demonstrating the best credit history with the Company and Group IV demonstrating the weakest.
| ● | Group I – strong to superior credit rating; | |
| ● | Group II – fair to favorable credit rating; | |
| ● | Group III – marginal to weak credit rating; and | |
| ● | Group IV – poor credit rating, including franchisees classified as uncollectible. |
Generally, the Company suspends credit lines and does not extend further funding to franchisee who are unable to repay the balance within three months after the 18-month deadline.
The credit quality of the loans receivables is evaluated based on the Company’s adjusted aging schedule. The Company regularly reviews the model to confirm the continued business significance and statistical predictability of the model and may make updates to improve the performance of the model.
| April 30, 2024 | October 31, 2023 | |||||||
| Franchisee Financing: | ||||||||
| Group I | $ | $ | ||||||
| Group II | ||||||||
| Group III | ||||||||
| Group IV | ||||||||
| Balance at end | $ | $ | ||||||
18
Jiuzi Holdings, Inc.
Notes to the Financial Statements
NOTE 7 – OTHER RECEIVABLES AND OTHER CURRENT ASSETS
Other receivables and other current assets consist of the following:
| April 30, | October 31, | |||||||
| 2024 | 2023 | |||||||
| Deposits placed on cars | ||||||||
| Excess input VAT credits | ||||||||
| Prepaid expense | ||||||||
| Cash advances to employees | ||||||||
| Total | ||||||||
As of April 30, 2024, the balance of prepaid expenses
was $
On December 11, 2023, Shenzhen Jiuzi entered into an agreement with a third party, Beijing YunGuangTong Trading Co., Ltd.(“YunGuangTong”). Under the agreement, Shenzhen Jiuzi commissioned YunGuangTong to procure72V direct fit lithium batteries for electric motorcycles bearing the Company’s brand logo.
On December 14, 2023, Shenzhen Jiuzi”) entered into an agreement with a third party, Beijing JinYiChangHong Technonogy Co., Ltd.(“JinYiChangHong”). Under the agreement, Shenzhen Jiuzi commissioned JinYiChangHong to procure outdoor portable and rechargeable batteries bearing the Company’s brand logo.
On December 16, 2023, Shenzhen Jiuzi entered into an agreement with a third party, Beijing YanErYouXin Technonogy Co., Ltd.(“YanErYouXin”). Under the agreement, Shenzhen Jiuzi commissioned YanErYouXin to procure 220V outdoor portable and rechargeable batteries bearing the Company’s brand logo.
On December 17, 2023, Shenzhen Jiuzi entered into an agreement with a third party, Beijing ShengQi Technonogy Co., Ltd.(“ShengQi”). Under the agreement, Shenzhen Jiuzi commisioned ShegQi to procure and process original Lemiry lithium iron phosphate outdoor portable power banks bearing the Company’s brand logo.
19
Jiuzi Holdings, Inc.
Notes to the Financial Statements
As of April 30, 2024, the above four prepaid expenses were outstanding for less than 180 days, and according to the Company’s policies, management believes that no impairment was required and that the services and products will be provided within financial year 2024.
NOTE 8 – PROPERTY and EQUIPMENT
| April 30, | October 31, | |||||||
| 2024 | 2023 | |||||||
| At Cost: | ||||||||
| Equipment | $ | $ | ||||||
| Motor vehicles | ||||||||
| Leasehold improvements | ||||||||
| Furniture and fixtures | ||||||||
| $ | $ | |||||||
| Less: Accumulated depreciation | ||||||||
| Total, net | $ | $ | ||||||
Depreciation
expenses were $
NOTE 9 – INTANGIBLE ASSETS
| April 30, | October 31, | |||||||
| 2024 | 2023 | |||||||
| At Cost: | ||||||||
| Financial software | $ | $ | ||||||
| Domain name | ||||||||
| Less: Accumulated amortization | ||||||||
| Total, net | $ | $ | ||||||
Amortization
expenses were $
20
Jiuzi Holdings, Inc.
Notes to the Financial Statements
NOTE 10 – RELATED PARTY TRANSACTIONS
The franchisees
are related parties of the Company due to the nominal, symbolic equity interest ownership in the franchisees.
The Company did not and does not control the franchisees, exert significant influence over the franchisees, have the power to direct the use of the franchisee’s assets and the fulfillment of their obligations, appoint or dismiss directors, authorized representatives, or executive officers of the franchisees. Management has also determined that the percentage shareholding in the franchisee is not compensatory to the Company in nature, and accordingly, would not be subject to consideration as income under revenue recognition criteria. The Company did not contribute any permanent equity capital in these franchisees and if these franchisees were to incur substantial losses and accumulate significant liabilities, the Company is not obligated to absorb such losses on behalf of the franchisees. Accordingly, the management has determined that the financial positions and results of operations of these franchisees should not be included as part of the Company’s consolidated financial statements.
In addition,
the Company did not and will not receive any actual ownership interest in the franchisees, nor receive any benefits from being a
| April 30, | October 31, | |||||||
| 2024 | 2023 | |||||||
| Yulin Jiuzi New Energy Automobile Co., Ltd | $ | $ | ||||||
| Zhejiang Jiuzi New Energy Network Technology Co., Ltd. | ||||||||
| Jiuzi Haoche (Hangzhou) Automobile Service Co., Ltd. | ||||||||
| Total | $ | $ | ||||||
The above accounts receivable were derived from sales of vehicles supplied by the Company to franchisees without any special payment terms. Sales revenues derived from franchisees were $ and $ for the six months ended April 30, 2024 and 2023, respectively
21
Jiuzi Holdings, Inc.
Notes to the Financial Statements
| As of April 30, 2024 | As of October 31, 2023 | |||||||||||||||||||||||||||||||
| Gross | Discount | Allowance | Net | Gross | Discount | Allowance | Net | |||||||||||||||||||||||||
| Jiangsu Changshu | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Shandong Dongming | ||||||||||||||||||||||||||||||||
| Jiangxi Gao’an | ||||||||||||||||||||||||||||||||
| Hunan Huaihua | ||||||||||||||||||||||||||||||||
| Jiangxi Jiujiang | ||||||||||||||||||||||||||||||||
| Hunan Liuyang | ||||||||||||||||||||||||||||||||
| Hunan Loudi | ||||||||||||||||||||||||||||||||
| Hunan Pingjiang | ||||||||||||||||||||||||||||||||
| Jiangxi Pingxiang | ||||||||||||||||||||||||||||||||
| Henan Puyang | ||||||||||||||||||||||||||||||||
| Fujian Quanzhou | ||||||||||||||||||||||||||||||||
| Jiangxi Wanzai | ||||||||||||||||||||||||||||||||
| Jiangxi Xinyu | ||||||||||||||||||||||||||||||||
| Jiangxi Yichun | ||||||||||||||||||||||||||||||||
| Jiangxi Yudu | ||||||||||||||||||||||||||||||||
| Guangdong Zengcheng | ||||||||||||||||||||||||||||||||
| Jiangxi Shanggao | ||||||||||||||||||||||||||||||||
| Shandong Heze | ||||||||||||||||||||||||||||||||
| Jiangxi Ganzhou | ||||||||||||||||||||||||||||||||
| Hunan Liling | ||||||||||||||||||||||||||||||||
| Hunan Zhuzhou | ||||||||||||||||||||||||||||||||
| Hunan Changsha | ||||||||||||||||||||||||||||||||
| Guangxi Guilin | ||||||||||||||||||||||||||||||||
| Hunan Chenzhou | ||||||||||||||||||||||||||||||||
| Jiangxi Ji’an | ||||||||||||||||||||||||||||||||
| Guangxi Nanning | ||||||||||||||||||||||||||||||||
| Hunan Leiyang | ||||||||||||||||||||||||||||||||
| Guangdong Dongguan Changping | ||||||||||||||||||||||||||||||||
| Hunan Changsha County | ||||||||||||||||||||||||||||||||
| Guizhou Zunyi | ||||||||||||||||||||||||||||||||
| Jiangsu Xuzhou | ||||||||||||||||||||||||||||||||
| Hunan Yongxing | ||||||||||||||||||||||||||||||||
| Hunan Hengyang | ||||||||||||||||||||||||||||||||
| Hainan Sanya | ||||||||||||||||||||||||||||||||
| Hunan Changsha Yuhua | ||||||||||||||||||||||||||||||||
| Shandong Heze Dingtao | ||||||||||||||||||||||||||||||||
| Shandong Heze Yuncheng | ||||||||||||||||||||||||||||||||
| Shandong Heze Gaoxin | ||||||||||||||||||||||||||||||||
| Shandong Zouping | ||||||||||||||||||||||||||||||||
| Shandong Juye | ||||||||||||||||||||||||||||||||
| Shandong Juancheng | ||||||||||||||||||||||||||||||||
| Shandong Shanxian | ||||||||||||||||||||||||||||||||
| Jiangxi Zhangshu | ||||||||||||||||||||||||||||||||
| Guangdong Foshan | ||||||||||||||||||||||||||||||||
| Jiangxi Jingdezhen | ||||||||||||||||||||||||||||||||
| Guangxi Yulin | ||||||||||||||||||||||||||||||||
| Shandong Heze Cao County | ||||||||||||||||||||||||||||||||
| Dongguan Nancheng | ||||||||||||||||||||||||||||||||
| Hubei Macheng | ||||||||||||||||||||||||||||||||
| Shandong Jining Liangshan | ||||||||||||||||||||||||||||||||
| Guangdong Zhanjiang | ||||||||||||||||||||||||||||||||
| Hunan Hengyang Shigu | ||||||||||||||||||||||||||||||||
| Jiangxi Ji’an Yongfeng | ||||||||||||||||||||||||||||||||
| Hunan Changde | ||||||||||||||||||||||||||||||||
| Hunan Shaoyang | ||||||||||||||||||||||||||||||||
| Hunan Yongzhou | ||||||||||||||||||||||||||||||||
| Hunan Ningxiang | ||||||||||||||||||||||||||||||||
| Guangxi Nanning Jiangnan | ||||||||||||||||||||||||||||||||
| Jiangxi Shangrao | ||||||||||||||||||||||||||||||||
| Anhui Bengbu | ||||||||||||||||||||||||||||||||
| Zhejiang JinHua | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
22
Jiuzi Holdings, Inc.
Notes to the Financial Statements
The above loans were advanced to the Company’s franchisees as working capital to support their operations. Such advances are due within 18 months.
| April 30, | October 31, | |||||||
| 2024 | 2023 | |||||||
| Yudu Jiuzi New Energy Automobile Co., Ltd. | $ | $ | ||||||
| Total | $ | $ | ||||||
The above accounts payable were derived from vehicles purchased by the Company from the franchisees as inventory on a needed basis without any special payment terms.
| April 30, | October 31, | |||||||
| 2024 | 2023 | |||||||
| Current Portion | ||||||||
| Unearned franchise fees | $ | $ | ||||||
| Customer deposits | ||||||||
| Non-current Portion | ||||||||
| Total, net | $ | $ | ||||||
| April 30, | October 31, | |||||||
| 2024 | 2023 | |||||||
| Unearned franchise fees – current | ||||||||
| Zhejiang Hangzhou Xiaoshan Agent | $ | $ | ||||||
| Hunan Changsha Yuelu Agent | ||||||||
| Hunan Yueyang Xiangyin Agent | ||||||||
| Hunan Yueyang Yueyang Lou Agent | ||||||||
| Guangdong Zhongshan City Agent | ||||||||
| Total | $ | $ | ||||||
23
Jiuzi Holdings, Inc.
Notes to the Financial Statements
The deferred revenues above were derived from initial franchise fee payments received in advance for services which have not yet been performed. The initial franchise fees include a series of performance obligations and an indefinite license to use the Company’s trademark. Amounts are recognized as advances when received, and are recognized as deferred revenues when the minimum amount required under the franchise or license agreement is attained. The payments are received in advance progressively and are not refundable once certain conditions in the franchise agreements are met. Such amounts are recognized as revenue when the Company performs the initial services required under the franchise or license agreement, which is generally when a specific performance obligation is completed or when and if the franchise or license agreement is terminated.
| April 30, | October 31, | |||||||
| 2024 | 2023 | |||||||
| Mr. Bo Bai | $ | $ | ||||||
| Jiuzi Haoche (Hangzhou) Automotive Service Co., Ltd | ||||||||
| Mr. Xuemei Rang | ||||||||
| Mr. Shuibo Zhang | ||||||||
| Mr. Qi Zhang | ||||||||
| Mr. Ruchun Huang | ||||||||
| Zhejiang Jiuzi New Energy Network Technology Co., Ltd | ||||||||
| Hangzhou Jiuyao New Energy Automobile Technology Co. Ltd. | ||||||||
| Total | $ | $ | ||||||
As of April 30, 2024 and October 31, 2023, the
Company has outstanding receivables of $
As
of April 30, 2024 and October 31, 2023, the Company had outstanding receivables of $
As of April 30, 2024 and October 31, 2023, the
Company had outstanding receivables of $
24
Jiuzi Holdings, Inc.
Notes to the Financial Statements
| April 30, 2024 | October 31, 2023 | |||||||
| Zhejiang Jiuzi New Energy Network Technology Co., Ltd | $ | |||||||
| Mr. Shuibo Zhang | ||||||||
| Total | $ | |||||||
As of April 30, 2024 and October 31, 2023, the
Company had outstanding payables of $
NOTE 11 – DEFERRED INCOME AND OTHER LONG TERM LIABILITIES
| April 30, | October 31, | |||||||
| 2024 | 2023 | |||||||
| Subsidy for the maintenance and repair of office | $ | $ | ||||||
| Total | $ | $ | ||||||
25
Jiuzi Holdings, Inc.
Notes to the Financial Statements
NOTE 12 – LEASES
The Company
has
Operating
lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the
lease term. The discount rate used to calculate present value is incremental borrowing rate or, if available, the rate implicit in the
lease. The Company determines the incremental borrowing rate for each lease based primarily on its lease term in PRC which is approximately
Operating
lease expenses of the office and retail store were $
| Six Months Ended | ||||
| April 30, 2024 | ||||
| Lease Cost | ||||
| Operating lease cost (included in general and administrative expenses and cost in the Company’s statement of operations) | $ | |||
| Other Information | ||||
| Cash paid for amounts included in the measurement of lease liabilities | $ | |||
| Weighted average remaining lease term – operating leases (in years) | ||||
| Average discount rate – operating lease | % | |||
26
Jiuzi Holdings, Inc.
Notes to the Financial Statements
| April 30, | October 31, | |||||||
| 2024 | 2023 | |||||||
| Operating lease | ||||||||
| Right-of-use assets | $ | $ | ||||||
| Operating lease liabilities | $ | $ | ||||||
| For the fiscal years ended October 31, | Amounts | |||
| 2024 (six months from May 1, 2024 to October 31, 2024) | $ | |||
| 2025 | ||||
| 2026 | ||||
| Total | $ | |||
NOTE 13 – CONVERTIBLE DEBENTURES
Interest
expense related to convertible debentures that were repaid in June,
2023 was $
NOTE 14 – TAXES PAYABLE
| April 30, | October 31, | |||||||
| 2024 | 2023 | |||||||
| Value-added tax, net | $ | $ | ||||||
| Company income tax | ||||||||
| Other taxes | ||||||||
| Total | $ | $ | ||||||
NOTE 15 – CONTRACT LIABILITY
| April 30, | October 31, | |||||||
| 2024 | 2023 | |||||||
| Customer deposits for car purchase | $ | $ | ||||||
| Total, net | $ | $ | ||||||
Contract liability – related party See Note 10 for details.
27
Jiuzi Holdings, Inc.
Notes to the Financial Statements
NOTE 16 – SHAREHOLDERS’ EQUITY
As of April
30, 2024 and October 31, 2023, the Company had
On October
31, 2020, pursuant to a special resolution adopted by its shareholders to amend and restate the Company’s memorandum and articles
of association, the Company conducted a subdivision of its par value with each share of a par value of $
Subsequent
to the Share Subdivision on October 31, 2020, the Company increased its authorized share capital from
On May 20,
2021, we issued
On October
28, 2022, the Company issued
In the year
ended October 31, 2022, the Company also issued
In
the year ended October 31, 2023, the Company issued
28
Jiuzi Holdings, Inc.
Notes to the Financial Statements
On November
30, 2023, pursuant to a special resolution adopted by its shareholders, the authorized share capital of the Company was increased
from US$
On January 18, 2024, the Company filed a registration
statement on Form S-8 with the Securities and Exchange Commission relating to the registration under the United States Securities Act
of 1933, of up to
On February
15, 2024, pursuant to a special resolution adopted by its shareholders to amend and restate the Company’s memorandum and articles
of association, the Company increased the authorized share capital by the sum of US$
The Company’s shareholders approved by an
ordinary resolution, immediately following the share capital increase, a share consolidation or reverse stock split, of the Company’s
ordinary shares at a ratio of one-for-thirteen such that each thirteen ordinary shares were combined into one ordinary share (the “Share
Consolidation”). After the Share Consolidation, the Company’s authorized share capital was US$
The Board of Directors passed resolutions on May 10, 2024, to establish this date as the effective date for the share splits. All share and per share data have been retroactively restated to reflect the reverse stock split effected on May 10, 2024.
Reverse Stock Split
On July
7, 2023, our Board of Directors declared a reverse share split at a ratio of
29
Jiuzi Holdings, Inc.
Notes to the Financial Statements
Private Placement
On April 28, 2023, the Company entered into
a subscription agreement with selected non-affiliated accredited investors (collectively, the “Investors”). Pursuant to
the subscription agreement, the Company soldan aggregate of
On October 20, 2023, the Company entered into
certain securities purchase agreement with certain “non-U.S. Persons”, pursuant to which the Company sold an aggregate of
NOTE 16 – SEGMENTS AND GEOGRAPHIC INFORMATION
The Company
believes that it operates in
Sales of goods revenues consist of sales of vehicles to third party customers and to the franchisees. Franchise services revenues consist of initial fees and ongoing royalties from the franchisees. Under the franchise arrangement, franchisees are granted the right to operate retail stores using the Company’s Jiuzi brand and system. Other service revenues include the sublease of vehicles to third party customers with a mark-up to the rental price.
30
Jiuzi Holdings, Inc.
Notes to the Financial Statements
| Six Months Ended | ||||||||||||||||
| April 30, 2024 | April 30, 2023 | |||||||||||||||
| NEVs sales | $ | % | $ | % | ||||||||||||
| Franchisee services revenues | % | % | ||||||||||||||
| Other service revenues | % | % | ||||||||||||||
| Total | $ | % | $ | % | ||||||||||||
| Six Months Ended | ||||||||||||||||
| April 30, 2024 | April 30, 2023 | |||||||||||||||
| NEVs sales | $ | % | $ | % | ||||||||||||
| Franchisee services revenues | % | % | ||||||||||||||
| Other service revenues | % | % | ||||||||||||||
| Total | $ | % | $ | % | ||||||||||||
| Six Months Ended | ||||||||||||||||
| April 30, 2024 | April 30, 2023 | |||||||||||||||
| NEVs sales | $ | ( | ) | ( | )% | $ | ( | ) | ( | )% | ||||||
| Franchisee services revenues | % | ( | ) | ( | )% | |||||||||||
| Other service revenues | % | % | ||||||||||||||
| Total | $ | ( | ) | ( | )% | $ | ( | ) | ( | )% | ||||||
31
Jiuzi Holdings, Inc.
Notes to the Financial Statements
NOTE 17 – INCOME TAX
The Company
is subject to profits tax rate at
| Six Months Ended | ||||||||
| April 30, 2024 | April 30, 2023 | |||||||
| Loss attributed to the PRC | $ | ( | ) | $ | ( | ) | ||
| PRC statutory tax rate | % | % | ||||||
| Income tax expense at statutory rate | ||||||||
| PRC tax prepayment | ||||||||
| Income tax expense | $ | $ | ||||||
NOTE 18 – COMMITMENTS AND CONTINGENCIES
The Company
has filed civil suits against certain vendors for failing to deliver purchased vehicles according to the terms of the agreements. The
Company demanded that the vendors refund the advances paid and compensate the Company for liquidated damages.
| Suppliers (Defendant) | Status of the case (1) | Amount involved (USD equivalent) | ||||
| Shengzhou Baiyuan New Energy Vehicle Technology Co. | $ | |||||
| Jiangsu Yakai Auto Sales & Service Co. | ||||||
| Hengyang Jiuziming Chehui Automobile Sales and Service Co., Ltd. | ||||||
| Hangzhou Shicheng Auto Trading Co. | ||||||
| Nanning Huangyang Auto Sales Co. | ||||||
| Nanning Huangyang Auto Sales Co | ||||||
| Nanning Huangyang Auto Sales Co | ||||||
| Nanning Huangyang Auto Sales Co | ||||||
| Shanghai Aichi Yiwei Automobile Sales Co., Ltd | ||||||
| Guangxi Runyin Automobile Sales Co., Ltd | ||||||
| Gui’an New District Xinte Electric Vehicle Industry Co., Ltd. | ||||||
| Total | $ | |||||
| (1) |
32
Jiuzi Holdings, Inc.
Notes to the Financial Statements
NOTE 19 – CONCENTRATIONS, RISKS AND UNCERTAINTIES
Credit risk
Cash deposits are held in financial institutions in the PRC, which deposits are not insured. Accordingly, the Company has a concentration of credit risk related to the uninsured part of bank deposits. The Company has not experienced any losses in such accounts and believes it is not exposed to significant credit risk.
Concentrations
The Company has a concentration risk related to suppliers and customers. Failure to maintain existing relationships with the suppliers or customers to establish new relationships in the future could negatively affect the Company’s ability to obtain goods sold to customers in a price advantage and timely manner. If the Company is unable to obtain ample supply of goods from existing suppliers or alternative sources of supply, the Company may be unable to satisfy the orders from its customers, which could materially and adversely affect revenues.
| Six Months Ended | ||||||||||||||||
| April 30, 2023 | April 30, 2022 | |||||||||||||||
| Third party sales revenues | % | $ | % | |||||||||||||
| Related party sales revenues | $ | % | % | |||||||||||||
| Third party franchise revenues | % | % | ||||||||||||||
| Related party franchise revenues | % | % | ||||||||||||||
| Third party other revenues | % | % | ||||||||||||||
| Related party other revenues | % | % | ||||||||||||||
| Total | $ | % | $ | % | ||||||||||||
| Six Months Ended | ||||||||||||||||
| April 30, 2023 | April 30, 2022 | |||||||||||||||
| Customer A | % | $ | % | |||||||||||||
| Customer B | % | % | ||||||||||||||
| Customer C | % | % | ||||||||||||||
| Customer D | % | % | ||||||||||||||
| Total | % | $ | % | |||||||||||||
NOTE 20 – DISPOSAL OF SUBSIDIARY
The Company holds
NOTE 21 – SUBSEQUENT EVENTS
Resignation of Officer
On July 31, 2024, Mr. Francis Zhang resigned from his position as the chief financial officer of the Company, effective immediately.
Appointment of Officer
On August 15, 2024, the board of directors of the Company appointed Mr. Huijie Gao as the CFO of the Company to fill the vacancy resulting from Mr. Zhang’s resignation.
33
Document And Entity Information |
6 Months Ended |
|---|---|
Apr. 30, 2024 | |
| Document Information Line Items | |
| Entity Registrant Name | JIUZI HOLDINGS INC. |
| Document Type | 6-K |
| Current Fiscal Year End Date | --10-31 |
| Amendment Flag | false |
| Entity Central Index Key | 0001816172 |
| Document Period End Date | Apr. 30, 2024 |
| Document Fiscal Year Focus | 2024 |
| Document Fiscal Period Focus | Q2 |
| Entity File Number | 001-40405 |
Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares |
Apr. 30, 2024 |
Oct. 31, 2023 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Ordinary shares par value (in Dollars per share) | $ 0.00195 | $ 0.00195 |
| Ordinary shares authorized | 150,000,000 | 150,000,000 |
| Ordinary shares issued | 135,301,969 | 4,065,609 |
| Ordinary shares outstanding | 135,301,969 | 4,065,609 |
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (Parentheticals) - $ / shares |
6 Months Ended | |
|---|---|---|
Apr. 30, 2024 |
Apr. 30, 2023 |
|
| Income Statement [Abstract] | ||
| Diluted | $ (0.12) | $ (3.44) |
| Diluted | 135,301,969 | 1,905,793 |
Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - USD ($) |
Common Stock |
Additional Paid-in Capital |
Statutory Reserve |
Retained Earnings |
Accumulated other Comprehensive Income |
Equity attributable to Jiuzi |
Non- Controlling interest |
Total |
|---|---|---|---|---|---|---|---|---|
| Balance at Oct. 31, 2022 | $ 2,659 | $ 15,466,119 | $ 891,439 | $ (9,342,111) | $ (1,074,299) | $ 5,943,807 | $ 137,413 | $ 6,081,220 |
| Balance (in Shares) at Oct. 31, 2022 | 1,363,630 | |||||||
| Shares issued for cash proceeds, net | $ 866 | 1,199,134 | 1,200,000 | 1,200,000 | ||||
| Shares issued for cash proceeds, net (in Shares) | 444,444 | |||||||
| Shares issued for compensation | $ 347 | 539,653 | 540,000 | 540,000 | ||||
| Shares issued for compensation (in Shares) | 177,778 | |||||||
| Shares issued for debt conversion | $ 1,168 | 1,671,932 | 1,673,100 | 1,673,100 | ||||
| Shares issued for debt conversion (in Shares) | 598,952 | |||||||
| Contribution (Distribution) in capital | (7,218) | (7,218) | ||||||
| Net income | (6,537,968) | (6,537,968) | (6,537,968) | |||||
| Non-Controlling Interest | (10,662) | (10,662) | ||||||
| Appropriations to statutory reserves | ||||||||
| Foreign currency translation adjustment | 687,899 | 687,899 | (16,404) | 671,495 | ||||
| Balance at Apr. 30, 2023 | $ 5,040 | 18,876,838 | 891,439 | (15,880,079) | (386,400) | 3,506,838 | 103,129 | 3,609,967 |
| Balance (in Shares) at Apr. 30, 2023 | 2,584,804 | |||||||
| Balance at Oct. 31, 2022 | $ 2,659 | 15,466,119 | 891,439 | (9,342,111) | (1,074,299) | 5,943,807 | 137,413 | 6,081,220 |
| Balance (in Shares) at Oct. 31, 2022 | 1,363,630 | |||||||
| Balance at Oct. 31, 2023 | $ 7,928 | 23,467,575 | 891,439 | (18,660,133) | (1,477,025) | 4,229,784 | 69,532 | $ 4,299,316 |
| Balance (in Shares) at Oct. 31, 2023 | 4,065,609 | 4,065,609 | ||||||
| Shares issued for cash proceeds, net | $ 221,591 | 49,778,407 | 49,999,998 | $ 49,999,998 | ||||
| Shares issued for cash proceeds, net (in Shares) | 113,636,360 | |||||||
| Shares issued for compensation | $ 34,320 | 12,320,880 | 12,355,200 | 12,355,200 | ||||
| Shares issued for compensation (in Shares) | 17,600,000 | |||||||
| Shares issued for debt conversion | ||||||||
| Contribution (Distribution) in capital | ||||||||
| Net income | (15,789,532) | (15,789,532) | (15,789,532) | |||||
| Non-Controlling Interest | (8,245) | (8,245) | ||||||
| Disposition of discontinued operation | 89,743 | 89,743 | 41,357 | 131,100 | ||||
| Appropriations to statutory reserves | ||||||||
| Foreign currency translation adjustment | (754,578) | (754,578) | 4,785 | (749,793) | ||||
| Balance at Apr. 30, 2024 | $ 263,839 | $ 85,566,862 | $ 891,439 | $ (34,457,910) | $ (2,231,603) | $ 50,032,627 | $ 107,429 | $ 50,140,056 |
| Balance (in Shares) at Apr. 30, 2024 | 135,301,969 | 135,301,969 |
Organization and Basis of Presentation |
6 Months Ended |
|---|---|
Apr. 30, 2024 | |
| Organization and Basis of Presentation [Abstract] | |
| ORGANIZATION AND BASIS OF PRESENTATION | NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION
Jiuzi Holdings, Inc. (the “Company” or “Jiuzi Holdings”) was incorporated in the Cayman Islands on October 10, 2019. The Company is a holding company whose operations are conducted through subsidiaries as described below.
Jiuzi New York Inc. (“Jiuzi New York”), a New York corporation established on April 3,2023. It is a wholly owned subsidiary of Jiuzi Holdings involved in corporate investment consulting.
Jiuzi (HK) Limited (“Jiuzi HK”) was incorporated in Hong Kong on October 25, 2019. It is a wholly owned subsidiary of the Company. It does not have any operation other than acting as a Hong Kong based holding company.
Zhejiang Navalant New Energy Automobile Co., Ltd. (“Jiuzi WFOE”) was incorporated on June 5, 2020 as a foreign owned entity in the People’s Republic of China (“PRC”). Jiuzi WFOE is a wholly owned subsidiary of Jiuzi HK. It does not have any operation other than acting as a PRC based holding company.
Zhejiang Jiuzi New Energy Holding Group Co., Ltd. (“Jiuzi Energy Holding) was incorporated on May 9, 2022 under the laws of the PRC. It is a wholly-owned subsidiary of Jiuzi HK and is mainly involved in research and development of automotive components; sales of new energy vehicles (“NEVs”) and electrical accessories for NEVs vehicles; sales of charging/battery swap infrastructure for NEVs; and sales of automotive spare parts and accessories.
Jiuzi HaoChe Supply Chain Co., Ltd. (“Haoche Supplychain”) was incorporated on September 6, 2021 under the laws of the PRC. It is a wholly-owned subsidiary of Zhejiang Navalant. It is mainly involved in management services of supply chain, automobiles sales and sales of NEVs..
Zhejiang Jiuzi New Energy Automobile Co. Ltd. (“Zhejiang Jiuzi”) was incorporated on May 26, 2017 in the PRC. Zhejiang Jiuzi’s scope of business includes the sale of NEVs and NEV components and parts, and the related development of products and services for the NEV industry. Zhejiang Jiuzi generates revenues by both selling NEVs and NEV components and parts to Jiuzi branded licensed NEV dealerships, and by rendering professional services to new Jiuzi NEV dealerships, such as initial setup, NEV product procurement services and specialized marketing campaigns.
Shangli Jiuzi New Energy Automobile Co., Ltd. (“Shangli Jiuzi “) was incorporated on May 10, 2018 in the PRC. Its scope of business is similar to Zhejiang Jiuzi. Zhejiang Jiuzi owns a 59.0% equity interest in Shangli Jiuzi, and the remaining 41% equity interest is owned by unrelated third-party investors Shangli Jiuzi is accounted for as a subsidiary of Zhejiang Jiuzi.
Hangzhou Zhitongche Technology Co., Ltd. (“Hangzhou Zhitongche”) was incorporated on February 2, 2018 in the PRC. It provides technical services, technical development, technical consulting and trading for NEVs and NEV accessories. Hangzhou Zhitongche is a wholly owned subsidiary of Zhejiang Jiuzi.
Guangxi Nanning Zhitongche New Energy Technology Co., Ltd. (“Guangxi Nanning”) was incorporated on December 31, 2021 in the PRC. Its scope of business includes technical service, development and consultation; sales of electrical accessories for NEVs; new car sales; business agency services. Hangzhou Zhitongche owns a 90% equity interest in Guangxi Nanning and the remaining 10% equity interest is owned by an unrelated third-party investor. Guangxi Nanning is accounted for as a subsidiary of Zhejiang Jiuzi.
Hangzhou Jiuyao New Energy Automobile Technology Co. Ltd. (“Hangzhou Jiuyao “) was incorporated on January 24, 2022 in the PRC. Its scope of business includes technical services, technology development, technical consultation and promotion, as well as sales of automobiles and NEVs, and sales of electrical accessories and accessories for NEVs. Hangzhou Jiuyao is 51% owned by Hangzhou Zhitongche and the remaining 49% equity interest is owned by an unrelated third-party. Hangzhou Jiuyao is accounted for as a subsidiary of Zhejiang Jiuzi.
Hangzhou Jiuyao Youche Network Technology Co. Ltd. (“Jiuyao Youche”) was incorporated on August 8, 2022 in the PRC. Its scope of business includes rentals and sales of NEVs. Jiuyao Youche is 51% owned by Hangzhou Zhitongche and the remaining 49% equity interest is owned by unrelated third-party investors. Hangzhou Jiuyao is accounted for as a subsidiary of Zhejiang Jiuzi.
Jiuzi International (HK) Limited. (“New Energy Holding HK”) was incorporated on May 23, 2023 under the laws of the Hong Kong Special Administrative Region of the PRC. It is a wholly owned subsidiary of Jiuzi New York.It is mainly involved in corporate investment consulting.
Shenzhen Jiuzi New Energy Holding Group Co., Ltd. was incorporated on August 1, 2023 under the laws of the PRC. It is a wholly owned subsidiary of New Energy Holding HK and is mainly involved in sales of electrical accessories for NEVs, sales of charging/battery swap infrastructure for NEVs, sales of electrical chargers, operating electric charging infrastructure for NEVs, leasing of charging control equipment, and research and development of emerging energy technology.
On November 10, 2022, Zhejiang Jiuzi New Energy Automobile Co., Ltd.(“Zhejiang Jiuzi”), a variable interest entity (of the Company, entered into a termination agreement (the “Termination Agreement”) Jiuzi WFOE, pursuant to which the Exclusive Option Agreement, the Exclusive Business Cooperation Agreement and the Equity Pledge Agreement (collectively the “VIE Agreements”) entered into among Zhejiang Jiuzi, Jiuzi WFOE and certain shareholders of Zhejiang Jiuzi would be terminated. On November 10, 2022, with approval of Jiuzi WFOE and approval of the board of directors of Zhejiang Jiuzi, Zhejiang Jiuzi issued a 0.1% equity interest in Zhejiang Jiuzi to a third-party investor. The issuance was completed on November 27, 2022. On January 20, 2023, Jiuzi WFOE exercised its call option under the Exclusive Option Agreements dated June 15, 2020 with a certain shareholder of Zhejiang Jiuzi and entered into equity transfer agreements with all of the shareholders of Zhejiang Jiuzi to purchase all the equity interest in Zhejiang Jiuzi. The transaction underlying the equity transfer agreements was completed and the VIE Agreements were terminated pursuant to the Termination Agreement on January 20, 2023. As a result, the VIE structure was dissolved and Zhejiang Jiuzi became a wholly owned subsidiary of Jiuzi WFOE.
|
Summary of Significant Accounting Policies |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the Company and its subsidiary. Significant inter-company transactions have been eliminated in consolidation.
Going Concern and Management’s Plan
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. As of April 30, 2024, the Company had an accumulated deficit of $43,398,710.
The Company plans to establish provincial regional sales centers in key cities and regions across the PRC, particularly in the Pearl River Delta and Yangtze River Delta areas to geographically expand the market and adopt centralized procurement system to reduce overhead cost and obtain volume discount. The Company also intends to cooperate with more manufacturers of NEVs, introduce more quality services and strengthen its publicity to attract more franchisees. Additionally, the Company intends to raise additional capital to provide additional funds to meet current and future liquidity needs. Management believes that it will be able to obtain the necessary financing and fund future expansion plans; however, there is no assurance that the Company will be successful in securing sufficient funds to sustain or grow its operations.
These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results and outcomes may differ from management’s estimates and assumptions. In particular, the novel coronavirus (“COVID-19”) pandemic and the resulting adverse impacts to global economic conditions, as well as our operations, may impact future estimates including, but not limited to, our allowance for loan losses, inventory valuations, fair value measurements, asset impairment charges and discount rate assumptions. Certain prior year amounts have been reclassified to conform to the current year’s presentation. Amounts and percentages may not total due to rounding.
Functional and presentation currency
The functional currency of the Company is the currency of the primary economic environment in which the Company operates which is Chinese Yuan (“RMB”).
Transactions in currencies other than the entity’s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at the end of the reporting periods. Exchange differences arising on the settlement of monetary items and on translation of monetary items at period-end are included in income statement of the period.
For the purpose of presenting these financial statements, the Company’s assets and liabilities are expressed in US$ at the exchange rate on the balance sheet date, stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets.
Exchange rate used for the translation as follows:
US$ to RMB
Fair Values of Financial Instruments
The Company adopted ASC 820 “Fair Value Measurements,” which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosures requirements for fair value measures. Current assets and current liabilities qualified as financial instruments and management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their current interest rate is equivalent to interest rates currently available. The three levels are defined as follow:
As of the balance sheet date, the estimated fair values of the financial instruments approximated their fair values due to the short-term nature of these instruments. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates the hierarchy disclosures each year.
Related parties
The Company adopted ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.
Cash and Equivalents
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
Restricted Cash
Restricted cash consists primarily of amounts preserved under a legal hold due to a complaint by a customer from an on-going litigation or amounts preserved for other purposes as required. Based on experience, they should be resolved within one calendar year or have a final conclusion. Conditions for lifting restrictions include withdrawal of the lawsuit by the customer, mutual settlement, or a final court judgment that has been fully executed.
Accounts Receivable
Accounts receivable are recorded at the net value less estimates for expected credit losses. Management regularly reviews outstanding accounts and provides an allowance for doubtful accounts. When collection of an original invoice amount is no longer probable, the Company will either partially or fully write-off the balance against the allowance for doubtful accounts.
Short-term investments
Short-term investments consist primarily of investments in fixed deposits with original maturities between three months and one year and certain investments in wealth management products and other investments that the Company has the intention to redeem within one year. As of April 30, 2024 and October 31, 2023, bank deposits that were recorded as short-term investments amounted to $44,198 and $43,733, respectively.
Loans Receivable
Loans receivable are recorded at origination at the fair value less estimates for expected credit losses. Management regularly reviews outstanding accounts and provides an allowance for credit losses. When collection of the original amounts is no longer probable, the Company will either partially or fully write-off the balance against the allowance for credit losses.
Revenue Recognition
In 2014, the FASB issued guidance on revenue recognition (“ASC 606”), with final amendments issued in 2016. The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients.
The Company’s revenues consist of sales of vehicles to third party customers by its retail store, sales of vehicles to franchisees, fees from retail stores operated by franchisees, and subleases of vehicles to third party customers. Revenues from franchised stores include initial franchise fees and annual royalties based on a percent of net income.
The Company recognizes revenues from the sale of vehicles at the point in time when the Company has transferred physical possession of the vehicle to the customer and the customer has accepted the vehicle, therefore, indicating control has been transferred to the customer. The transaction price is determined and allocated to the product prior to the transfer of the vehicle to the customer.
The franchise services include a series of performance obligations and an indefinite license to use the Company’s trademark. The series of performance obligations are specific services and deliverables that are set forth in the agreement and are billed and receivable as delivered and accepted by the franchisee. These services and deliverables may be customized and are not transferable to other third parties.
Royalty revenues are distinct from the initial franchise services. The Company recognizes royalty revenues only when the franchisee has generated positive annual net income, at which point the Company has the contractual right to request for payment of the royalty. The royalty is calculated as a percentage of the franchisees’ annual net income.
The Company subleases vehicles to third parties and recognizes revenues over time which is ratably on a monthly basis over the term of the lease agreement.
The Company estimates potential returns and records such estimates against its gross revenue to arrive at its reported net sales revenue. The Company has not experienced any sales returns.
Inventory
Inventories, which are primarily comprised of merchandise for sale, are stated at the lower of cost or net realizable value, using the first-in first-out method. The Company evaluates the need for reserves associated with obsolete, slow-moving and non-salable inventory by reviewing net realizable values on a periodic basis. Only products with defects can be return to our suppliers.
Advertising
The Company expenses advertising costs as incurred and includes it in selling expenses. The Company recorded and $79,400 of advertising and promotional expenses for the six months ended April 30. 2024 and 2023, respectively.
Income Taxes
Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry-forwards. Deferred tax expense (benefit) results from the net change during the years of deferred tax assets and liabilities.
Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of all of the deferred tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
A tax benefit from an uncertain tax position may be recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that the relevant taxing authority that has full knowledge of all relevant information will examine each uncertain tax position. Although the Company believes the estimates are reasonable, no assurance can be given that the final outcome of these matters will not be different than what is reflected in the historical income tax provisions and accruals.
Loss per share
Basic loss per share is computed by dividing net loss attributable to the holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted loss per share is calculated by dividing the net loss attributable to the holders of ordinary shares as adjusted for the effect of dilutive ordinary share equivalents, if any, by the weighted average number of ordinary shares and dilutive ordinary share equivalents outstanding during the period. However, ordinary share equivalents are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive, such as in a period in which a net loss is recorded.
All per share amounts for all periods presented herein have been adjusted to reflect the Share Subdivision and 2 for 1 stock dividend on a post-Share Subdivision basis. See Note 17.
Property and Equipment & Depreciation
Property and equipment are stated at historical cost net of accumulated depreciation. Repairs and maintenance are expensed as incurred. Property and equipment are depreciated on a straight-line basis over the following periods:
Intangible Assets & Amortization
Intangible assets are stated at historical cost net of accumulated amortization. Software is amortized on a straight-line basis over the estimated useful life of the software which is years.
Impairment of Long-Lived assets
The Company accounts for impairment of property and equipment and amortizable intangible assets in accordance with ASC 360, “Accounting for Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of”, which requires the Company to evaluate a long-lived asset for recoverability when there is event or circumstance that indicate the carrying value of the asset may not be recoverable. An impairment loss is recognized when the carrying amount of a long-lived asset or asset group is not recoverable (when carrying amount exceeds the gross, undiscounted cash flows from use and disposition) and is measured as the excess of the carrying amount over the asset’s (or asset group’s) fair value.
New Accounting Pronouncements
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires incremental reportable segment disclosures, primarily about significant segment expenses. The amendments also require entities with a single reportable segment to provide all disclosures required by these amendments, and all existing segment disclosures. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods after December 15, 2024. The Company will adopt this guidance for the year ended October 31, 2024. This guidance is expected to only impact the disclosures with no impact on the results of operations, financial position or cash flows.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, to enhance the transparency and decision usefulness of income tax disclosures. The guidance includes improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid. This guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is in the process of evaluating when it will adopt this guidance and the potential effects this guidance will have on its disclosures.
Besides the above, the Company’s management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted would have a material effect on the consolidated financial statements. |
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Inventory |
6 Months Ended | |||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 30, 2024 | ||||||||||||||||||||||||||||
| Inventory [Abstract] | ||||||||||||||||||||||||||||
| INVENTORY | NOTE 3 – INVENTORY
Inventory, net consists of the following:
Inventory write-down expense was $ for the six months ended April 30, 2024 and 2023, respectively. |
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Accounts Receivable |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounts Receivable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACCOUNTS RECEIVABLE | NOTE 4 – ACCOUNTS RECEIVABLE
Accounts receivable, net consists of the following:
The following is a summary of the activity in the allowance for doubtful accounts:
Bad debt expense (recoveries) was $248,585 and $25,528 for the six months ended April 30, 2024 and 2023, respectively. |
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Short-Term Investment |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Short-Term Investment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SHORT-TERM INVESTMENT | NOTE 5 – SHORT-TERM INVESTMENT
Short-term investment comprised of the following:
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Loans Receivable Franchisees |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans Receivable Franchisees [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LOANS RECEIVABLE FRANCHISEES | NOTE 6 – LOANS RECEIVABLE FRANCHISEES
Loans receivable include amounts due from related franchisees and are presented net of imputed interest and an allowance for estimated loan losses. The loans are provided in the form of credit line to related franchisee to support their operations. These loans are unsecured with a due date of 18 months upon initial drawing.
Management has determined that the 18-month borrowing rate most appropriately captures the financing cost for these loans. Given that the loans are in the form of credit lines to the franchisees that may have varying balances over time, as a practical expedient, management has elected to expense the interest as a cost of revenue at inception rather than amortize the expense over time.
The amounts charged were $, and $28,281 for the six months ended April 30, 2024 and 2023, respectively.
The allowance for loan losses represents an estimated amount of net losses inherent in our portfolio of managed receivables as of the applicable reporting date and expected to become evident during the following 12 months.
Each lending request is evaluated by considering the borrower’s financial condition. The Company uses a proprietary model to assign each franchisee a risk rating. This model uses historical franchisee performance data to identify key factors about a franchisee that are considered most significant in predicting a franchisee’s ability to meet its financial obligations. The Company also considers numerous other financial and qualitative factors of the franchisee’s operations, including capitalization and leverage, liquidity and cash flow, profitability, and credit history with the Company and other creditors.
The Company also consider recent trends in delinquencies and defaults, recovery rates, age of the loans. and the economic environment in assessing the models used in estimating the allowance for loan losses, and may adjust the allowance for loan losses to reflect factors that may not be captured in the models. In addition, the Company periodically consider whether the use of additional metrics would result in improved model performance and revise the models when appropriate. The provision for loan losses is the periodic expense of maintaining an adequate allowance.
An account is considered delinquent when the related franchisee fails to make a substantial portion of a scheduled payment three months after the due date. For purposes of determining impairment, loans are evaluated collectively, as they represent a large group of smaller-balance homogeneous loans, and therefore, are not individually evaluated for impairment.
As these loans are non-interest bearing, the Company recorded a discount to the face amount using an imputed interest rate of 11.75% for the six months ended April 30, 2024 and October 31, 2023 to reflect the fair value of the loan at origination. The imputed interest rate reflects the borrowing rate in the market under similar terms and duration. Direct costs associated with loan originations are not considered material, and thus, are expensed as incurred.
The following is a summary of the activity in the allowance for credit loss:
Credit losses were $2,546,467 and $3,440,368 for the six months ended April 30, 2024 and 2023, respectively. The Company has made additional allowance for credit losses for the six months ended April 30, 2024 due to the aging of the balances and the current market and economic condition.
The following is a summary of current and non-current loans receivable from franchisees, net of allowance for credit losses:
Credit Quality
The Company extends credit to franchisees primarily in the form of lines of credit to purchase vehicles and support their daily operations. Each of the franchisees are assigned to one of four groups according to the risk ratings with Group I demonstrating the best credit history with the Company and Group IV demonstrating the weakest.
Generally, the Company suspends credit lines and does not extend further funding to franchisee who are unable to repay the balance within three months after the 18-month deadline.
The credit quality of the loans receivables is evaluated based on the Company’s adjusted aging schedule. The Company regularly reviews the model to confirm the continued business significance and statistical predictability of the model and may make updates to improve the performance of the model.
The credit quality analysis of franchisee loan receivables as follows:
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Other Receivables and Other Current Assets |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Receivables and Other Current Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OTHER RECEIVABLES AND OTHER CURRENT ASSETS | NOTE 7 – OTHER RECEIVABLES AND OTHER CURRENT ASSETS
Other receivables and other current assets consist of the following:
As of April 30, 2024, the balance of prepaid expenses was $50,554,537.
On December 11, 2023, Shenzhen Jiuzi entered into an agreement with a third party, Beijing YunGuangTong Trading Co., Ltd.(“YunGuangTong”). Under the agreement, Shenzhen Jiuzi commissioned YunGuangTong to procure72V direct fit lithium batteries for electric motorcycles bearing the Company’s brand logo.
On December 14, 2023, Shenzhen Jiuzi”) entered into an agreement with a third party, Beijing JinYiChangHong Technonogy Co., Ltd.(“JinYiChangHong”). Under the agreement, Shenzhen Jiuzi commissioned JinYiChangHong to procure outdoor portable and rechargeable batteries bearing the Company’s brand logo.
On December 16, 2023, Shenzhen Jiuzi entered into an agreement with a third party, Beijing YanErYouXin Technonogy Co., Ltd.(“YanErYouXin”). Under the agreement, Shenzhen Jiuzi commissioned YanErYouXin to procure 220V outdoor portable and rechargeable batteries bearing the Company’s brand logo.
On December 17, 2023, Shenzhen Jiuzi entered into an agreement with a third party, Beijing ShengQi Technonogy Co., Ltd.(“ShengQi”). Under the agreement, Shenzhen Jiuzi commisioned ShegQi to procure and process original Lemiry lithium iron phosphate outdoor portable power banks bearing the Company’s brand logo.
As of April 30, 2024, the above four prepaid expenses were outstanding for less than 180 days, and according to the Company’s policies, management believes that no impairment was required and that the services and products will be provided within financial year 2024. |
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Property and Equipment |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PROPERTY and EQUIPMENT | NOTE 8 – PROPERTY and EQUIPMENT
Property and equipment, net consists of the following:
Depreciation expenses were $64,173 and $101,093 for the six months ended April 30, 2024 and 2023, respectively. |
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Intangible Assets |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTANGIBLE ASSETS | NOTE 9 – INTANGIBLE ASSETS
Intangible assets, net consist of the following:
Amortization expenses were $273 and $1,077 for the six months ended April 30 2024 and 2023, respectively. |
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Related Party Transactions |
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| Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RELATED PARTY TRANSACTIONS | NOTE 10 – RELATED PARTY TRANSACTIONS
The franchisees are related parties of the Company due to the nominal, symbolic equity interest ownership in the franchisees. The franchisees were originally incorporated with the Company shown as a 51.0% owner and subsequently as a 1.25% owner. The intent of having such ownership percentage in the franchisees was to enable the franchisees to register their respective individual business name to include the words “Jiuzi” as required by the local business bureau. Subsequent to the successful registration by the franchisees and completion of the Company’s obligations under the franchise and license agreement, the Company will decrease its ownership interest in these franchisees to 0%. The Company’s percentage of shareholding is nominal, inconsequential, and symbolic. The Company’s equity interest of 51.0% and 1.25% in the franchisees were symbolic in nature.
The Company did not and does not control the franchisees, exert significant influence over the franchisees, have the power to direct the use of the franchisee’s assets and the fulfillment of their obligations, appoint or dismiss directors, authorized representatives, or executive officers of the franchisees. Management has also determined that the percentage shareholding in the franchisee is not compensatory to the Company in nature, and accordingly, would not be subject to consideration as income under revenue recognition criteria. The Company did not contribute any permanent equity capital in these franchisees and if these franchisees were to incur substantial losses and accumulate significant liabilities, the Company is not obligated to absorb such losses on behalf of the franchisees. Accordingly, the management has determined that the financial positions and results of operations of these franchisees should not be included as part of the Company’s consolidated financial statements.
In addition, the Company did not and will not receive any actual ownership interest in the franchisees, nor receive any benefits from being a 51% or 1.25% owner in the franchisees. Any after tax profits generated by the franchisees that are potentially distributable to the Company are governed by the royalty agreements between the Company and the franchisee not the shareholding percentage. Accordingly, the management has determined that the ownership interest is not part of the initial franchise fee.
Accounts receivable from related franchisees comprised of the following:
The above accounts receivable were derived from sales of vehicles supplied by the Company to franchisees without any special payment terms. Sales revenues derived from franchisees were $ and $ for the six months ended April 30, 2024 and 2023, respectively
Loans to franchisees consist of the following (See Note 6 for details):
The above loans were advanced to the Company’s franchisees as working capital to support their operations. Such advances are due within 18 months.
Accounts payable to franchisees consist of the following:
The above accounts payable were derived from vehicles purchased by the Company from the franchisees as inventory on a needed basis without any special payment terms.
Contract liability – related party consists of the following:
Unearned franchise fees consist of the following:
The deferred revenues above were derived from initial franchise fee payments received in advance for services which have not yet been performed. The initial franchise fees include a series of performance obligations and an indefinite license to use the Company’s trademark. Amounts are recognized as advances when received, and are recognized as deferred revenues when the minimum amount required under the franchise or license agreement is attained. The payments are received in advance progressively and are not refundable once certain conditions in the franchise agreements are met. Such amounts are recognized as revenue when the Company performs the initial services required under the franchise or license agreement, which is generally when a specific performance obligation is completed or when and if the franchise or license agreement is terminated.
Related parties receivables comprised of the following:
As of April 30, 2024 and October 31, 2023, the Company has outstanding receivables of $13,534 and $846, respectively, due from the Company’s shareholder, Jiuzi Haoche (Hangzhou) Automotive Service Co., Ltd. (“Haoche”). The amounts were for space rental and utilities payable to the Company. The advances were considered due on demand in nature and have not been formalized by a promissory note and are non-interest bearing.
As of April 30, 2024 and October 31, 2023, the Company had outstanding receivables of $147,788 and $146,233, respectively, due from Mr. Xuemei Rang, the Company’s shareholder, director, and officer. The amount was the consideration for the sale by the Company of its former subsidiary Zhejiang Jiuzi New Energy Network Technology Co., Ltd. to Mr. Rang, which closed in September 2024. Such Consideration was not paid by Mr. Rang to date.
As of April 30, 2024 and October 31, 2023, the Company had outstanding receivables of $3,002 and $3,753, respectively, from Mr. Qi Zhang, the Company’s vice president of marketing .. The amount was advanced to Mr. Zhang for travel expenses. The advances were considered due on demand in nature and have not been formalized by a promissory note and are non-interest bearing and due on demand without a specified maturity date.
Related party payables consist of the following:
As of April 30, 2024 and October 31, 2023, the Company had outstanding payables of $206,278 and $, respectively, to Mr. Shuibo Zhang, the Company’s shareholder, director, and officer. The amount was advanced by Mr. Zhang to help cover emergency and incidental cash needs. The payables were considered due on demand in nature and are non-interest bearing. |
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Deferred Income and Others Long Term Liabilities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
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Apr. 30, 2024 | |||||||||||||||||||||||||||||||||||||
| Deferred Income and Others Long Term Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||
| DEFERRED INCOME AND OTHERS LONG TERM LIABILITIES | NOTE 11 – DEFERRED INCOME AND OTHER LONG TERM LIABILITIES
Deferred income consists of the following government grants which have not yet been earned:
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Leases |
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| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LEASES | NOTE 12 – LEASES
The Company has one operating lease for its corporate office and retail store. The current lease agreement is for the period from August 1, 2021 to July 31, 2026. The Company does not expect to receive the subsidy from PRC government as the Company may not meet the requirement of paying RMB 20 million in income taxes to the government, therefore the specific deferred government subsidy was not recognized.
Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate present value is incremental borrowing rate or, if available, the rate implicit in the lease. The Company determines the incremental borrowing rate for each lease based primarily on its lease term in PRC which is approximately 4.75%.
Operating lease expenses of the office and retail store were $88,754 and $83,306 for the six months ended April 30, 2024 and 2023, respectively.
The components of lease expense and supplemental cash flow information related to the lease for the period are as follows:
The supplemental balance sheet information related to the lease is as follows:
The undiscounted future minimum lease payment schedule as follows:
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Convertible Debentures |
6 Months Ended |
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Apr. 30, 2024 | |
| Convertible Debentures [Abstract] | |
| CONVERTIBLE DEBENTURES | NOTE 13 – CONVERTIBLE DEBENTURES
Interest expense related to convertible debentures that were repaid in June, 2023 was $239,325 for the six months ended April 30, 2023. |
Taxes Payable |
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| Taxes Payable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TAXES PAYABLE | NOTE 14 – TAXES PAYABLE
Taxes payable comprised of the following:
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Contract Liability |
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| Contract Liability [Abstract] | |||||||||||||||||||||||||||||||||||||
| CONTRACT LIABILITY | NOTE 15 – CONTRACT LIABILITY
Contract liability consists of the following:
Contract liability – related party See Note 10 for details. |
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Shareholders' Equity |
6 Months Ended |
|---|---|
Apr. 30, 2024 | |
| Shareholders' Equity [Abstract] | |
| SHAREHOLDERS’ EQUITY | NOTE 16 – SHAREHOLDERS’ EQUITY
As of April 30, 2024 and October 31, 2023, the Company had 135,301,969 and 4,065,609 shares issued and outstanding.
On October 31, 2020, pursuant to a special resolution adopted by its shareholders to amend and restate the Company’s memorandum and articles of association, the Company conducted a subdivision of its par value with each share of a par value of $0.09 of the authorized share capital of the Company (including issued and unissued share capital) being subdivided into 5 shares of par value $0.018 each (the “Share Subdivision”). Immediately following the Share Subdivision, the authorized share capital of the Company was $27,778 divided into 2,777,778 shares of par value $0.018 each, and the total issued and outstanding shares were 277,778.
Subsequent to the Share Subdivision on October 31, 2020, the Company increased its authorized share capital from 2,777,778 shares to 8,333,333 shares with a par value of $0.018 per share, and issued a stock dividend on 2 for 1 post-Share Subdivision basis, whereby each shareholder holding 1 share was issued an additional 2 shares; therefore, a total of 555,556 shares were issued; immediately following this transaction, there were a total of 833,333 shares issued and outstanding.
On May 20, 2021, we issued 288,889 ordinary shares to investors in connection with the closing of our initial public offering at the offering price of $90.00 per share.
On October 28, 2022, the Company issued 11,111 ordinary shares to a non-related party as service compensation for $60,000
In the year ended October 31, 2022, the Company also issued 162,139 ordinary shares for the conversion of a note payable in the amount of $2,236,684.
In the year ended October 31, 2023, the Company issued 598,943 ordinary shares for conversion of a note payable in the amount of $1,720,800, issued 1,925,259 ordinary shares in consideration of net cash proceeds in the amount of $3,568,599, and issued 177,778 ordinary shares compensation payable in the amount of $ 2,717,326 to YA II PN LTD, an institutional investor.
On November 30, 2023, pursuant to a special resolution adopted by its shareholders, the authorized share capital of the Company was increased from US$150,000.00 divided into 1,000,000,000 shares, each of a par value of US$0.00015 each.
On January 18, 2024, the Company filed a registration statement on Form S-8 with the Securities and Exchange Commission relating to the registration under the United States Securities Act of 1933, of up to 17,600,000 ordinary shares, par value US$0.00015 per share, issuable under its 2024 Equity Incentive Plan. The plan was approved by the Board of Directors of the Company on January 12, 2024.
On February 15, 2024, pursuant to a special resolution adopted by its shareholders to amend and restate the Company’s memorandum and articles of association, the Company increased the authorized share capital by the sum of US$9,600,000 by the creation of 64,000,000,000 shares of par value of US$0.00015 each, such that the total authorized share capital of the Company is US$9,750,000 divided into 65,000,000,000 Shares of par value US$0.00015 each.
The Company’s shareholders approved by an ordinary resolution, immediately following the share capital increase, a share consolidation or reverse stock split, of the Company’s ordinary shares at a ratio of one-for-thirteen such that each thirteen ordinary shares were combined into one ordinary share (the “Share Consolidation”). After the Share Consolidation, the Company’s authorized share capital was US$9,750,000 divided into 5,000,000,000 ordinary shares of a par value of US$0.00195 each.
The Board of Directors passed resolutions on May 10, 2024, to establish this date as the effective date for the share splits. All share and per share data have been retroactively restated to reflect the reverse stock split effected on May 10, 2024.
Reverse Stock Split
On July 7, 2023, our Board of Directors declared a reverse share split at a ratio of 1-for-18 shares having a par value of $0.001 per share with effect from July 10. Following the reverse split, the shares had a par value of $0.018 per share. There was no effect on total stockholders’ equity. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the effects of the reverse stock split.
Private Placement
On April 28, 2023, the Company entered into a subscription agreement with selected non-affiliated accredited investors (collectively, the “Investors”). Pursuant to the subscription agreement, the Company soldan aggregate of 8,000,000 units at a price of $0.15 per unit for an aggregate purchase price of $1,200,000 in the private placement. Each unit was comprised of one (1) ordinary share and five (5) warrants to purchase one ordinary share (collectively, the “Warrants”). Each Warrant is exercisable to purchase one ordinary share at a price of $0.35 per share at any time during the six (6) months after the closing (November 5, 2023). The closing occurred on May 5, 2023, and the Company received proceeds of $1.2 million. On September 12, 2023, the Company entered into a securities purchase agreement with certain non-affiliated accredited investors pursuant to which the Company sold an aggregate of 62,242 restricted ordinary shares of the Company for gross proceeds of $66,600. The offering closed on September 18, 2023.
On October 20, 2023, the Company entered into certain securities purchase agreement with certain “non-U.S. Persons”, pursuant to which the Company sold an aggregate of 113,636,360 units (the “Units”), each Unit consisting of one ordinary share of the Company and a warrant to purchase three ordinary shares with an initial exercise price of $1.10 per share, at a price of $0.44 per Unit, for an aggregate purchase price of approximately $50 million. The Offering closed on December 21, 2023. The warrants were exercisable immediately upon the date of issuance at an initial exercise price of $1.10, for cash. The warrants may also be exercised on a cashless basis if at any time after the six-month anniversary of the issuance date, there is no effective registration statement registering, or no current prospectus available for, the resale of the underlying ordinary shares. The warrants will expire five years from the date of issuance and are subject to customary anti-dilution provisions reflecting stock dividends and splits or other similar transactions. |
Segments and Geographic Information |
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| Segments and Geographic Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SEGMENTS AND GEOGRAPHIC INFORMATION | NOTE 16 – SEGMENTS AND GEOGRAPHIC INFORMATION
The Company believes that it operates in two business segments which consist of sales of NEVs and franchise services; and it operates in one geographical location, the PRC. The Company disaggregates its revenue into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
Sales of goods revenues consist of sales of vehicles to third party customers and to the franchisees. Franchise services revenues consist of initial fees and ongoing royalties from the franchisees. Under the franchise arrangement, franchisees are granted the right to operate retail stores using the Company’s Jiuzi brand and system. Other service revenues include the sublease of vehicles to third party customers with a mark-up to the rental price.
Sales revenues consist of the following:
Direct costs consist of the following:
Gross profit (loss) consist of the following:
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Income Tax |
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| INCOME TAX | NOTE 17 – INCOME TAX
The Company is subject to profits tax rate at 25% for income generated for its operation in the PRC. Net operating losses can be carried forward for no longer than five years starting from the year subsequent to the year in which the loss was incurred.
The net taxable income (losses) before income taxes and its provision for income taxes comprised of the following:
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Commitments and Contingencies |
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| Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMITMENTS AND CONTINGENCIES | NOTE 18 – COMMITMENTS AND CONTINGENCIES
The Company has filed civil suits against certain vendors for failing to deliver purchased vehicles according to the terms of the agreements. The Company demanded that the vendors refund the advances paid and compensate the Company for liquidated damages. The details are shown as follows.
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Concentrations, Risks and Uncertainties |
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| Concentrations, Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CONCENTRATIONS, RISKS AND UNCERTAINTIES | NOTE 19 – CONCENTRATIONS, RISKS AND UNCERTAINTIES
Credit risk
Cash deposits are held in financial institutions in the PRC, which deposits are not insured. Accordingly, the Company has a concentration of credit risk related to the uninsured part of bank deposits. The Company has not experienced any losses in such accounts and believes it is not exposed to significant credit risk.
Concentrations
The Company has a concentration risk related to suppliers and customers. Failure to maintain existing relationships with the suppliers or customers to establish new relationships in the future could negatively affect the Company’s ability to obtain goods sold to customers in a price advantage and timely manner. If the Company is unable to obtain ample supply of goods from existing suppliers or alternative sources of supply, the Company may be unable to satisfy the orders from its customers, which could materially and adversely affect revenues.
The concentration on sales revenues generated by customers type comprised of the following:
The concentration of sales revenues generated by third-party customers consist of the following:
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Disposal of Subsidiary |
6 Months Ended |
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Apr. 30, 2024 | |
| Disposal of Subsidiary [Abstract] | |
| DISPOSAL OF SUBSIDIARY | NOTE 20 – DISPOSAL OF SUBSIDIARY
The Company holds 100% of the equity interest of Hangzhou ZiTongChe Technology Co., Ltd. (“Hangzhou ZhiTongChe”), a company organized under the laws of the PRC. Hangzhou ZhiTongChe held 51% of the equity interest of Hangzhou Jiuyao Bew Energy Automobile Technology Co., Ltd. (“Hangzhou Jiuyao”), a company incorporated under the laws of the PRC. On January 24, 2024, Hangzhou ZhiTongChe completed the transfer of its ownership interest in Hangzhou Jiuyao to Mr Shuibo Zhang, a related party for a total price of RMB5,998 (approximately $6,000), which sale was approved at the special shareholders meeting of the Company held on November 30, 2023. |
Subsequent Events |
6 Months Ended |
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Apr. 30, 2024 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS | NOTE 21 – SUBSEQUENT EVENTS
Resignation of Officer
On July 31, 2024, Mr. Francis Zhang resigned from his position as the chief financial officer of the Company, effective immediately.
Appointment of Officer
On August 15, 2024, the board of directors of the Company appointed Mr. Huijie Gao as the CFO of the Company to fill the vacancy resulting from Mr. Zhang’s resignation. |
Accounting Policies, by Policy (Policies) |
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| Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||
| Basis of Presentation | Basis of Presentation The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). |
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| Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiary. Significant inter-company transactions have been eliminated in consolidation. |
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| Going Concern and Management’s Plan | Going Concern and Management’s PlanThe accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. As of April 30, 2024, the Company had an accumulated deficit of $43,398,710.The Company plans to establish provincial regional sales centers in key cities and regions across the PRC, particularly in the Pearl River Delta and Yangtze River Delta areas to geographically expand the market and adopt centralized procurement system to reduce overhead cost and obtain volume discount. The Company also intends to cooperate with more manufacturers of NEVs, introduce more quality services and strengthen its publicity to attract more franchisees. Additionally, the Company intends to raise additional capital to provide additional funds to meet current and future liquidity needs. Management believes that it will be able to obtain the necessary financing and fund future expansion plans; however, there is no assurance that the Company will be successful in securing sufficient funds to sustain or grow its operations.These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern. | ||||||||||||||||||||||||||||||||||||
| Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results and outcomes may differ from management’s estimates and assumptions. In particular, the novel coronavirus (“COVID-19”) pandemic and the resulting adverse impacts to global economic conditions, as well as our operations, may impact future estimates including, but not limited to, our allowance for loan losses, inventory valuations, fair value measurements, asset impairment charges and discount rate assumptions. Certain prior year amounts have been reclassified to conform to the current year’s presentation. Amounts and percentages may not total due to rounding. |
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| Functional and presentation currency | Functional and presentation currency The functional currency of the Company is the currency of the primary economic environment in which the Company operates which is Chinese Yuan (“RMB”). Transactions in currencies other than the entity’s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at the end of the reporting periods. Exchange differences arising on the settlement of monetary items and on translation of monetary items at period-end are included in income statement of the period. For the purpose of presenting these financial statements, the Company’s assets and liabilities are expressed in US$ at the exchange rate on the balance sheet date, stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets. Exchange rate used for the translation as follows: US$ to RMB
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| Fair Values of Financial Instruments | Fair Values of Financial Instruments The Company adopted ASC 820 “Fair Value Measurements,” which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosures requirements for fair value measures. Current assets and current liabilities qualified as financial instruments and management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their current interest rate is equivalent to interest rates currently available. The three levels are defined as follow:
As of the balance sheet date, the estimated fair values of the financial instruments approximated their fair values due to the short-term nature of these instruments. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates the hierarchy disclosures each year. |
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| Related parties | Related parties The Company adopted ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions. |
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| Cash and Equivalents | Cash and Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
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| Restricted Cash | Restricted Cash Restricted cash consists primarily of amounts preserved under a legal hold due to a complaint by a customer from an on-going litigation or amounts preserved for other purposes as required. Based on experience, they should be resolved within one calendar year or have a final conclusion. Conditions for lifting restrictions include withdrawal of the lawsuit by the customer, mutual settlement, or a final court judgment that has been fully executed.
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| Accounts Receivable | Accounts Receivable Accounts receivable are recorded at the net value less estimates for expected credit losses. Management regularly reviews outstanding accounts and provides an allowance for doubtful accounts. When collection of an original invoice amount is no longer probable, the Company will either partially or fully write-off the balance against the allowance for doubtful accounts. |
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| Short-term investments | Short-term investments Short-term investments consist primarily of investments in fixed deposits with original maturities between three months and one year and certain investments in wealth management products and other investments that the Company has the intention to redeem within one year. As of April 30, 2024 and October 31, 2023, bank deposits that were recorded as short-term investments amounted to $44,198 and $43,733, respectively. |
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| Loans Receivable | Loans Receivable Loans receivable are recorded at origination at the fair value less estimates for expected credit losses. Management regularly reviews outstanding accounts and provides an allowance for credit losses. When collection of the original amounts is no longer probable, the Company will either partially or fully write-off the balance against the allowance for credit losses. |
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| Revenue Recognition | Revenue Recognition In 2014, the FASB issued guidance on revenue recognition (“ASC 606”), with final amendments issued in 2016. The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes (1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients.
The Company’s revenues consist of sales of vehicles to third party customers by its retail store, sales of vehicles to franchisees, fees from retail stores operated by franchisees, and subleases of vehicles to third party customers. Revenues from franchised stores include initial franchise fees and annual royalties based on a percent of net income. The Company recognizes revenues from the sale of vehicles at the point in time when the Company has transferred physical possession of the vehicle to the customer and the customer has accepted the vehicle, therefore, indicating control has been transferred to the customer. The transaction price is determined and allocated to the product prior to the transfer of the vehicle to the customer. The franchise services include a series of performance obligations and an indefinite license to use the Company’s trademark. The series of performance obligations are specific services and deliverables that are set forth in the agreement and are billed and receivable as delivered and accepted by the franchisee. These services and deliverables may be customized and are not transferable to other third parties. Royalty revenues are distinct from the initial franchise services. The Company recognizes royalty revenues only when the franchisee has generated positive annual net income, at which point the Company has the contractual right to request for payment of the royalty. The royalty is calculated as a percentage of the franchisees’ annual net income. The Company subleases vehicles to third parties and recognizes revenues over time which is ratably on a monthly basis over the term of the lease agreement. The Company estimates potential returns and records such estimates against its gross revenue to arrive at its reported net sales revenue. The Company has not experienced any sales returns. |
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| Inventory | Inventory Inventories, which are primarily comprised of merchandise for sale, are stated at the lower of cost or net realizable value, using the first-in first-out method. The Company evaluates the need for reserves associated with obsolete, slow-moving and non-salable inventory by reviewing net realizable values on a periodic basis. Only products with defects can be return to our suppliers. |
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| Advertising | Advertising The Company expenses advertising costs as incurred and includes it in selling expenses. The Company recorded and $79,400 of advertising and promotional expenses for the six months ended April 30. 2024 and 2023, respectively.
|
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| Income Taxes | Income Taxes Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry-forwards. Deferred tax expense (benefit) results from the net change during the years of deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of all of the deferred tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. A tax benefit from an uncertain tax position may be recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that the relevant taxing authority that has full knowledge of all relevant information will examine each uncertain tax position. Although the Company believes the estimates are reasonable, no assurance can be given that the final outcome of these matters will not be different than what is reflected in the historical income tax provisions and accruals. |
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| Loss per share | Loss per share Basic loss per share is computed by dividing net loss attributable to the holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted loss per share is calculated by dividing the net loss attributable to the holders of ordinary shares as adjusted for the effect of dilutive ordinary share equivalents, if any, by the weighted average number of ordinary shares and dilutive ordinary share equivalents outstanding during the period. However, ordinary share equivalents are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive, such as in a period in which a net loss is recorded. All per share amounts for all periods presented herein have been adjusted to reflect the Share Subdivision and 2 for 1 stock dividend on a post-Share Subdivision basis. See Note 17. |
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| Property and Equipment & Depreciation | Property and Equipment & Depreciation Property and equipment are stated at historical cost net of accumulated depreciation. Repairs and maintenance are expensed as incurred. Property and equipment are depreciated on a straight-line basis over the following periods:
|
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| Intangible Assets & Amortization | Intangible Assets & Amortization Intangible assets are stated at historical cost net of accumulated amortization. Software is amortized on a straight-line basis over the estimated useful life of the software which is years. |
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| Impairment of Long-Lived assets | Impairment of Long-Lived assets The Company accounts for impairment of property and equipment and amortizable intangible assets in accordance with ASC 360, “Accounting for Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of”, which requires the Company to evaluate a long-lived asset for recoverability when there is event or circumstance that indicate the carrying value of the asset may not be recoverable. An impairment loss is recognized when the carrying amount of a long-lived asset or asset group is not recoverable (when carrying amount exceeds the gross, undiscounted cash flows from use and disposition) and is measured as the excess of the carrying amount over the asset’s (or asset group’s) fair value. |
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| New Accounting Pronouncements | New Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires incremental reportable segment disclosures, primarily about significant segment expenses. The amendments also require entities with a single reportable segment to provide all disclosures required by these amendments, and all existing segment disclosures. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods after December 15, 2024. The Company will adopt this guidance for the year ended October 31, 2024. This guidance is expected to only impact the disclosures with no impact on the results of operations, financial position or cash flows. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, to enhance the transparency and decision usefulness of income tax disclosures. The guidance includes improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid. This guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is in the process of evaluating when it will adopt this guidance and the potential effects this guidance will have on its disclosures. Besides the above, the Company’s management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted would have a material effect on the consolidated financial statements. |
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Summary of Significant Accounting Policies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 30, 2024 | |||||||||||||||||||||||||||||||||||||
| Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||
| Schedule of Exchange Rate | Exchange rate used for the translation as
follows:
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| Schedule of Property and Equipment | Property and equipment are depreciated on a straight-line
basis over the following periods:
|
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Inventory (Tables) |
6 Months Ended | |||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 30, 2024 | ||||||||||||||||||||||||||||
| Inventory [Abstract] | ||||||||||||||||||||||||||||
| Schedule of Inventory Net | Inventory,
net consists of the following:
|
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Accounts Receivable (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| Accounts Receivable [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Accounts Receivable, Net | Accounts
receivable, net consists of the following:
|
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| Schedule of Accounts Receivable, Net Related Party |
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| Schedule of the Activity in the Allowance for Doubtful Accounts | The following
is a summary of the activity in the allowance for doubtful accounts:
|
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Short-Term Investment (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Short-Term Investment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Short-Term Investment | Short-term
investment comprised of the following:
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Loans Receivable Franchisees (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans Receivable Franchisees [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Loans are Non-interest Bearing | The imputed interest rate reflects the borrowing rate in the
market under similar terms and duration. Direct costs associated with loan originations are not considered material, and thus, are
expensed as incurred.
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| Schedule of the Activity in the Allowance for Credit Loss | The following is a summary of the activity in
the allowance for credit loss:
|
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| Schedule of Current and Non-Current Loans Receivable from Franchisees, Net of Allowance for Credit Losses | The following is a summary of current and non-current
loans receivable from franchisees, net of allowance for credit losses:
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| Schedule of Credit Quality Analysis of Franchisee Loan Receivables | The credit quality analysis of franchisee loan
receivables as follows:
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Other Receivables and Other Current Assets (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Receivables and Other Current Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Other Receivables and Other Current Assets |
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Property and Equipment (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Property and Equipment, Net | Property
and equipment, net consists of the following:
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Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Intangible Assets, Net | Intangible
assets, net consist of the following:
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Related Party Transactions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Accounts Receivable from Related Franchisees | Accounts
receivable from related franchisees comprised of the following:
|
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| Schedule of Loans to Franchisees | Loans to franchisees consist of the following
(See Note 6 for details):
|
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| Schedule of Accounts payable to Franchisees | Accounts payable to franchisees consist of the
following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Contract Liability – Related Party | Contract liability – related party consists
of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Unearned Franchise Fees | Unearned franchise fees consist of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Related Parties Receivables | Related parties receivables comprised of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Related Party Payables | Related party payables consist of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Income and Others Long Term Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 30, 2024 | |||||||||||||||||||||||||||||||||||||
| Deferred Income and Others Long Term Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||
| Schedule of Deferred Income | Deferred
income consists of the following government grants which have not yet been earned:
|
||||||||||||||||||||||||||||||||||||
Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Supplemental Cash Flow Information Related to the Lease | The components
of lease expense and supplemental cash flow information related to the lease for the period are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Supplemental Balance Sheet Information Related to Leases | The supplemental
balance sheet information related to the lease is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Undiscounted Future Minimum Lease Payment Schedule | The undiscounted future minimum lease payment
schedule as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxes Payable (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taxes Payable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Taxes Payable | Taxes payable
comprised of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Liability (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 30, 2024 | |||||||||||||||||||||||||||||||||||||
| Contract Liability [Abstract] | |||||||||||||||||||||||||||||||||||||
| Schedule of Contract Liability | Contract
liability consists of the following:
|
||||||||||||||||||||||||||||||||||||
Segments and Geographic Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segments and Geographic Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Sales Revenues | Sales revenues
consist of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax [Absract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Net Taxable Income (Losses) Before Income Taxes and its Provision for Income Taxes | The net
taxable income (losses) before income taxes and its provision for income taxes comprised of the following:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Fully Written Off the Advance Paid to Suppliers | The details are shown as
follows.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentrations, Risks and Uncertainties (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Concentrations, Risks and Uncertainties [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Concentration on Sales Revenues | The concentration
on sales revenues generated by customers type comprised of the following:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Concentration of Sales Revenues Generated by Third-Party Customers | The concentration
of sales revenues generated by third-party customers consist of the following:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Basis of Presentation (Details) |
6 Months Ended | ||
|---|---|---|---|
Apr. 30, 2024 |
Nov. 10, 2022 |
May 10, 2018 |
|
| Organization and Basis of Presentation [Line items] | |||
| Equity interest | 10.00% | ||
| Guangxi Nanning [Member] | |||
| Organization and Basis of Presentation [Line items] | |||
| Equity interest | 90.00% | ||
| Hangzhou Zhitongche Member | |||
| Organization and Basis of Presentation [Line items] | |||
| Equity interest | 51.00% | ||
| Zhejiang Jiuzi [Member] | |||
| Organization and Basis of Presentation [Line items] | |||
| Equity interest | 49.00% | ||
| Jiuyao Youche [Member] | |||
| Organization and Basis of Presentation [Line items] | |||
| Equity interest | 51.00% | ||
| Zhejiang Jiuzi [Member] | |||
| Organization and Basis of Presentation [Line items] | |||
| Equity interest percentage | 0.10% | 59.00% | |
| Shangli Jiuzi [Member] | |||
| Organization and Basis of Presentation [Line items] | |||
| Equity interest percentage | 41.00% | ||
| Investors [Member] | |||
| Organization and Basis of Presentation [Line items] | |||
| Equity interest percentage | 49.00% |
Summary of Significant Accounting Policies (Details) - USD ($) |
6 Months Ended | ||
|---|---|---|---|
Apr. 30, 2024 |
Apr. 30, 2023 |
Oct. 31, 2023 |
|
| Summary of Significant Accounting Policies [Abstract] | |||
| Accumulated deficit | $ 43,398,710 | ||
| Short-term investments amounted | 44,198 | $ 43,733 | |
| Advertising and promotional expenses | $ 79,400 | ||
| Estimated useful life | 3 years | ||
Summary of Significant Accounting Policies (Details) - Schedule of Exchange Rate |
Apr. 30, 2024 |
Oct. 31, 2023 |
Apr. 30, 2023 |
|---|---|---|---|
| Schedule of Exchange Rate [Abstract] | |||
| Period End | 7.2401 | 7.3171 | 6.912 |
| Average rate | 7.1949 | 7.059 | 6.927 |
Summary of Significant Accounting Policies (Details) - Schedule of Property and Equipment |
Apr. 30, 2024 |
|---|---|
| Equipment [Member] | |
| Schedule of Property and Equipment [Line Items] | |
| Property and equipment depreciation period | 5 years |
| Furniture and fixtures [Member] | |
| Schedule of Property and Equipment [Line Items] | |
| Property and equipment depreciation period | 5 years |
| Motor vehicles [Member] | |
| Schedule of Property and Equipment [Line Items] | |
| Property and equipment depreciation period | 10 years |
Inventory (Details) - USD ($) |
6 Months Ended | |
|---|---|---|
Apr. 30, 2024 |
Apr. 30, 2023 |
|
| Inventory [Abstract] | ||
| Inventory write-down expense | ||
Inventory (Details) - Schedule of Inventory Net - USD ($) |
Apr. 30, 2024 |
Oct. 31, 2023 |
Apr. 30, 2023 |
|---|---|---|---|
| Inventory [Abstract] | |||
| Finished goods | $ 840,557 | $ 211,108 | |
| Total, net | $ 211,108 | $ 840,557 | $ 211,108 |
Accounts Receivable (Details) - USD ($) |
6 Months Ended | ||
|---|---|---|---|
Apr. 30, 2024 |
Oct. 31, 2023 |
Apr. 30, 2023 |
|
| Accounts Receivable [Abstract] | |||
| Bad debt expense (recoveries) | $ 248,585 | $ 261,301 | $ 25,528 |
Accounts Receivable (Details) - Schedule of Accounts Receivable, Net - USD ($) |
Apr. 30, 2024 |
Oct. 31, 2023 |
|---|---|---|
| Schedule of Accounts Receivables Net [Abstract] | ||
| Accounts receivable | $ 42,140 | $ 41,697 |
| Allowance for doubtful accounts | (42,140) | (41,697) |
| Total, net |
Accounts Receivable (Details) - Schedule of Accounts Receivable, Net Related Party - Related Party [Member] - USD ($) |
Apr. 30, 2024 |
Oct. 31, 2023 |
|---|---|---|
| Schedule of Accounts Receivables, Net Related Party [Line Items] | ||
| Accounts receivable-related franchisees | $ 1,767,120 | $ 513,914 |
| Allowance for doubtful accounts | (559,368) | (355,717) |
| Total, net | $ 1,207,752 | $ 158,197 |
Accounts Receivable (Details) - Schedule of the Activity in the Allowance for Doubtful Accounts - USD ($) |
6 Months Ended | ||
|---|---|---|---|
Apr. 30, 2024 |
Oct. 31, 2023 |
Apr. 30, 2023 |
|
| Schedule of the Activity in the Allowance for Doubtful Accounts [Abstract] | |||
| Balance at beginning of period | $ 397,414 | $ 145,664 | |
| Balance at end | 565,169 | 397,414 | $ 145,664 |
| Provision | 248,585 | 261,301 | $ 25,528 |
| Effect of translation adjustment | $ (80,830) | $ (9,551) | |
Short-Term Investment (Details) - Schedule of Short-Term Investment - USD ($) |
Apr. 30, 2024 |
Oct. 31, 2023 |
|---|---|---|
| Short-Term Investments [Line Items] | ||
| Bank deposits | $ 44,198 | $ 43,733 |
| Total short-term investment | 44,198 | 43,733 |
| Level 1 [Member] | ||
| Short-Term Investments [Line Items] | ||
| Bank deposits | ||
| Total short-term investment | ||
| Level 2 [Member] | ||
| Short-Term Investments [Line Items] | ||
| Bank deposits | 44,198 | 43,733 |
| Total short-term investment | 44,198 | 43,733 |
| Level 3 [Member] | ||
| Short-Term Investments [Line Items] | ||
| Bank deposits | ||
| Total short-term investment |
Loans Receivable Franchisees (Details) - USD ($) |
6 Months Ended | ||
|---|---|---|---|
Apr. 30, 2024 |
Oct. 31, 2023 |
Apr. 30, 2023 |
|
| Loans Receivable Franchisees (Details) [Line Items] | |||
| Interest amount | $ 28,281 | ||
| Imputed interest rate | 11.75% | 11.75% | |
| Credit loss | $ 2,546,467 | $ 4,417,126 | |
| Related Party [Member] | |||
| Loans Receivable Franchisees (Details) [Line Items] | |||
| Credit loss | $ 2,546,467 | $ 3,440,368 | |
Loans Receivable Franchisees (Details) - Schedule of Loans are Non-interest Bearing - USD ($) |
6 Months Ended | |
|---|---|---|
Apr. 30, 2024 |
Oct. 31, 2023 |
|
| Schedule of Loans are Non-interest Bearing [Abstract] | ||
| Loan to related franchisees, gross | $ 18,296,645 | $ 17,993,467 |
| Discount based on imputed interest rate of 11.75% | (2,094,046) | (2,072,010) |
| Loan to franchisees, net of discount | 16,202,599 | 15,921,457 |
| Provision for credit losses | (14,207,515) | (11,554,072) |
| Loan to franchisees, net of discount and allowance | $ 1,995,084 | $ 4,367,385 |
Loans Receivable Franchisees (Details) - Schedule of Loans are Non-interest Bearing (Parentheticals) |
6 Months Ended | |
|---|---|---|
Apr. 30, 2024 |
Oct. 31, 2023 |
|
| Schedule of Loans are Non-interest Bearing [Abstract] | ||
| Discount based on imputed interest rate | 11.75% | 11.75% |
Loans Receivable Franchisees (Details) - Schedule of the Activity in the Allowance for Credit Loss - USD ($) |
6 Months Ended | |
|---|---|---|
Apr. 30, 2024 |
Oct. 31, 2023 |
|
| Schedule of the Activity in the Allowance for Credit Loss [Abstract] | ||
| Balance at beginning of period | $ 11,554,072 | $ 7,309,516 |
| Provision for credit losses | 2,546,467 | 4,417,126 |
| Effect of translation adjustment | 106,976 | (172,570) |
| Balance at end | $ 14,207,515 | $ 11,554,072 |
Loans Receivable Franchisees (Details) - Schedule of Current and Non-Current Loans Receivable from Franchisees, Net of Allowance for Credit Losses - Related Party [Member] - USD ($) |
Apr. 30, 2024 |
Oct. 31, 2023 |
Oct. 30, 2023 |
|---|---|---|---|
| Schedule of Current and Non-Current Loans Receivable from Franchisees, Net of Allowance for Credit Losses [Line Items] | |||
| Loans to related franchisees, net of discounts and allowances, current | $ 1,995,084 | $ 4,367,385 | |
| Loans to related franchisees, net of discounts and allowances, non-current | |||
| Loans to related franchisees, net of discounts and allowances, total | $ 1,995,084 | $ 4,367,385 | $ 4,367,385 |
Loans Receivable Franchisees (Details) - Schedule of Credit Quality Analysis of Franchisee Loan Receivables - Loan Receivables [Member] - USD ($) |
Apr. 30, 2024 |
Oct. 31, 2023 |
|---|---|---|
| Schedule of Credit Quality Analysis of Franchisee Loan Receivables [Line Items] | ||
| Franchisee loan receivables | $ 16,202,599 | $ 15,921,457 |
| Group I [Member] | ||
| Schedule of Credit Quality Analysis of Franchisee Loan Receivables [Line Items] | ||
| Franchisee loan receivables | 43,962 | 283,519 |
| Group II [Member] | ||
| Schedule of Credit Quality Analysis of Franchisee Loan Receivables [Line Items] | ||
| Franchisee loan receivables | 300,119 | 3,192,491 |
| Group III [Member] | ||
| Schedule of Credit Quality Analysis of Franchisee Loan Receivables [Line Items] | ||
| Franchisee loan receivables | 3,248,880 | 6,347,667 |
| Group IV [Member] | ||
| Schedule of Credit Quality Analysis of Franchisee Loan Receivables [Line Items] | ||
| Franchisee loan receivables | $ 12,609,638 | $ 6,097,780 |
Other Receivables and Other Current Assets (Details) ¥ in Thousands |
Apr. 30, 2024
USD ($)
|
Dec. 17, 2023
USD ($)
|
Dec. 17, 2023
CNY (¥)
|
Dec. 16, 2023
USD ($)
|
Dec. 16, 2023
CNY (¥)
|
Dec. 14, 2023
USD ($)
|
Dec. 14, 2023
CNY (¥)
|
Dec. 11, 2023
USD ($)
|
Dec. 11, 2023
CNY (¥)
|
Oct. 31, 2023
USD ($)
|
Apr. 30, 2023
USD ($)
|
|---|---|---|---|---|---|---|---|---|---|---|---|
| Other Receivables And Other Current Assets [Line Items] | |||||||||||
| Prepaid expense | $ 50,554,537 | ||||||||||
| Cash | $ 271,645 | $ 1,139,191 | $ 827,308 | ||||||||
| YunGuangTong [Member] | |||||||||||
| Other Receivables And Other Current Assets [Line Items] | |||||||||||
| Cash | $ 9,810,000 | ¥ 71,000 | |||||||||
| JinYiChangHong [Member] | |||||||||||
| Other Receivables And Other Current Assets [Line Items] | |||||||||||
| Cash | $ 12,260,000 | ¥ 88,750 | |||||||||
| YanErYouXin [Member] | |||||||||||
| Other Receivables And Other Current Assets [Line Items] | |||||||||||
| Cash | $ 12,260,000 | ¥ 88,750 | |||||||||
| ShenQi [Member] | |||||||||||
| Other Receivables And Other Current Assets [Line Items] | |||||||||||
| Cash | $ 14,710,000 | ¥ 106,500 |
Other Receivables and Other Current Assets (Details) - Schedule of Other Receivables and Other Current Assets - USD ($) |
Apr. 30, 2024 |
Oct. 31, 2023 |
|---|---|---|
| Other Receivables and Other Current Assets [Abstract] | ||
| Deposits placed on cars | $ 197,002 | |
| Excess input VAT credits | 622 | 7,612 |
| Prepaid expense | 50,554,537 | 38,493 |
| Cash advances to employees | 12,412 | 1,273,224 |
| Total | $ 50,567,571 | $ 1,516,331 |
Property and Equipment (Details) - USD ($) |
6 Months Ended | |
|---|---|---|
Apr. 30, 2024 |
Apr. 30, 2023 |
|
| Property and Equipment [Abstract] | ||
| Depreciation expenses | $ 64,173 | $ 101,093 |
Property and Equipment (Details) - Schedule of Property and Equipment, Net - USD ($) |
Apr. 30, 2024 |
Oct. 31, 2023 |
|---|---|---|
| Schedule of Property and Equipment, Net [Line Items] | ||
| Less: Accumulated depreciation | $ 381,825 | $ 321,191 |
| Total, net | 256,324 | 329,361 |
| Equipment [Member] | ||
| Schedule of Property and Equipment, Net [Line Items] | ||
| Total cost | 57,007 | 56,407 |
| Motor vehicles [Member] | ||
| Schedule of Property and Equipment, Net [Line Items] | ||
| Total cost | 69,202 | 87,593 |
| Leasehold Improvement [Member] | ||
| Schedule of Property and Equipment, Net [Line Items] | ||
| Total cost | 507,154 | 501,817 |
| Furniture and fixtures [Member] | ||
| Schedule of Property and Equipment, Net [Line Items] | ||
| Total cost | 4,786 | 4,735 |
| Total Cost [Member] | ||
| Schedule of Property and Equipment, Net [Line Items] | ||
| Total cost | $ 638,149 | $ 663,946 |
Intangible Assets (Details) - USD ($) |
6 Months Ended | |
|---|---|---|
Apr. 30, 2024 |
Apr. 30, 2023 |
|
| Intangible Assets [Abstract] | ||
| Amortization expenses | $ 273 | $ 1,077 |
Intangible Assets (Details) - Schedule of Intangible Assets, Net - USD ($) |
Apr. 30, 2024 |
Oct. 31, 2023 |
|---|---|---|
| At Cost: | ||
| Total cost, gross | $ 17,858 | $ 17,670 |
| Less: Accumulated amortization | 6,175 | 5,842 |
| Total, net | 11,683 | 11,828 |
| Financial software [Member] | ||
| At Cost: | ||
| Total cost, gross | 15,193 | 15,033 |
| Domain name [Member] | ||
| At Cost: | ||
| Total cost, gross | $ 2,665 | $ 2,637 |
Related Party Transactions (Details) - USD ($) |
6 Months Ended | 12 Months Ended | |
|---|---|---|---|
Apr. 30, 2024 |
Oct. 31, 2023 |
Apr. 30, 2023 |
|
| Related Party Transactions [Line Items] | |||
| Equity interest ownership | The franchisees were originally incorporated with the Company shown as a 51.0% owner and subsequently as a 1.25% owner. The intent of having such ownership percentage in the franchisees was to enable the franchisees to register their respective individual business name to include the words “Jiuzi” as required by the local business bureau. Subsequent to the successful registration by the franchisees and completion of the Company’s obligations under the franchise and license agreement, the Company will decrease its ownership interest in these franchisees to 0%. The Company’s percentage of shareholding is nominal, inconsequential, and symbolic. The Company’s equity interest of 51.0% and 1.25% in the franchisees were symbolic in nature. | ||
| Accounts receivables | |||
| Jiuzi Haoche (Hangzhou) Automotive Service Co., Ltd, [Member] | |||
| Related Party Transactions [Line Items] | |||
| Outstanding receivable | 13,534 | 846 | |
| Mrs. Xuemei Rang [Member] | |||
| Related Party Transactions [Line Items] | |||
| Outstanding receivable | 147,788 | 146,233 | |
| Mr. Qi Zhang [Member] | |||
| Related Party Transactions [Line Items] | |||
| Outstanding receivable | 3,002 | 3,753 | |
| Mr. Shuibo Zhang [Member] | |||
| Related Party Transactions [Line Items] | |||
| Outstanding receivable | 206,278 | ||
| Revenue Benchmark [Member] | Related Party [Member] | |||
| Related Party Transactions [Line Items] | |||
| Accounts receivables | |||
| Maximum [Member] | |||
| Related Party Transactions [Line Items] | |||
| Ownership interest percentage | 51.00% | ||
| Minimum [Member] | |||
| Related Party Transactions [Line Items] | |||
| Ownership interest percentage | 1.25% |
Related Party Transactions (Details) - Schedule of Accounts Receivable from Related Franchisees - USD ($) |
Apr. 30, 2024 |
Oct. 31, 2023 |
|---|---|---|
| Schedule of Accounts Receivable from Related Franchisees [Line Items] | ||
| Accounts receivable | $ 1,207,752 | $ 158,197 |
| Yulin Jiuzi New Energy Automobile Co., Ltd [Member] | ||
| Schedule of Accounts Receivable from Related Franchisees [Line Items] | ||
| Accounts receivable | 15,055 | |
| Zhejiang Jiuzi New Energy Network Technology Co., Ltd. [Member] | ||
| Schedule of Accounts Receivable from Related Franchisees [Line Items] | ||
| Accounts receivable | 22,099 | 38,267 |
| Jiuzi Haoche (Hangzhou) Automobile Service Co., Ltd. [Member] | ||
| Schedule of Accounts Receivable from Related Franchisees [Line Items] | ||
| Accounts receivable | $ 1,185,653 | $ 104,875 |
Related Party Transactions (Details) - Schedule of Accounts payable to Franchisees - USD ($) |
Apr. 30, 2024 |
Oct. 31, 2023 |
|---|---|---|
| Yudu Jiuzi New Energy Automobile Co., Ltd. [Member] | ||
| Schedule of Accounts Payable to Related Parties’ Franchisees [Line Items] | ||
| Accounts payable | $ 7,044 | $ 6,970 |
| Related Party [Member] | ||
| Schedule of Accounts Payable to Related Parties’ Franchisees [Line Items] | ||
| Accounts payable | $ 7,044 | $ 6,970 |
Related Party Transactions (Details) - Schedule of Contract Liability – Related Party - Related Party [Member] - USD ($) |
Apr. 30, 2024 |
Oct. 31, 2023 |
|---|---|---|
| Current Portion | ||
| Unearned franchise fees | $ 12,592 | $ 15,466 |
| Customer deposits | 41,000 | |
| Contract liability current portion net | 12,592 | 56,466 |
| Total, net | $ 12,592 | $ 56,466 |
Related Party Transactions (Details) - Schedule of Unearned Franchise Fees - USD ($) |
Apr. 30, 2024 |
Oct. 31, 2023 |
|---|---|---|
| Unearned franchise fees – current | ||
| Total | $ 12,592 | $ 15,466 |
| Zhejiang Jiaxing Nanhu Agent [Member] | ||
| Unearned franchise fees – current | ||
| Unearned franchise fees – non-current | 1,658 | 2,050 |
| Hunan Changsha Yuelu Agent [Member] | ||
| Unearned franchise fees – current | ||
| Unearned franchise fees – non-current | 1,726 | 2,118 |
| Hunan Yueyang Xiangyin Agent [Member] | ||
| Unearned franchise fees – current | ||
| Unearned franchise fees – non-current | 1,726 | 2,118 |
| Hunan Yueyang Yueyang Lou Agent [Member] | ||
| Unearned franchise fees – current | ||
| Unearned franchise fees – non-current | 1,726 | 2,118 |
| Guangdong Foshan Shunde Agent [Member] | ||
| Unearned franchise fees – current | ||
| Unearned franchise fees – non-current | $ 5,756 | $ 7,062 |
Related Party Transactions (Details) - Schedule of Related Party Payables - USD ($) |
6 Months Ended | |
|---|---|---|
Apr. 30, 2024 |
Oct. 31, 2023 |
|
| Schedule of Related Parties Payables [Line Items] | ||
| Related parties payables | $ 598,581 | |
| Zhejiang Jiuzi New Energy Network Technology Co., Ltd [Member] | ||
| Schedule of Related Parties Payables [Line Items] | ||
| Related parties payables | 392,303 | |
| Mr. Shuibo Zhang [Member] | ||
| Schedule of Related Parties Payables [Line Items] | ||
| Related parties payables | $ 206,278 | |
Deferred Income and Others Long Term Liabilities (Details) - Schedule of Deferred Income - USD ($) |
6 Months Ended | |
|---|---|---|
Apr. 30, 2024 |
Oct. 31, 2023 |
|
| Schedule of Deferred Income [Abstract] | ||
| Subsidy for the maintenance and repair of the office | $ 174,721 | $ 172,883 |
| Total | $ 174,721 | $ 172,883 |
Leases (Details) ¥ in Millions |
6 Months Ended | ||
|---|---|---|---|
|
Apr. 30, 2024
USD ($)
|
Apr. 30, 2024
CNY (¥)
|
Apr. 30, 2023
USD ($)
|
|
| Leases [Line Items] | |||
| Number of operating leases | 1 | 1 | |
| Requirement amount | ¥ | ¥ 20 | ||
| Incremental borrowing rate | 4.75% | 4.75% | |
| Operating lease expense | $ | $ 88,754 | $ 83,306 | |
Leases (Details) - Schedule of Supplemental Cash Flow Information Related to the Lease |
6 Months Ended |
|---|---|
|
Apr. 30, 2024
USD ($)
| |
| Schedule of Supplemental Cash Flow Information Related to Leases [Abstract] | |
| Operating lease cost (included in general and administrative expenses and cost in the Company’s statement of operations) | $ 88,754 |
| Cash paid for amounts included in the measurement of lease liabilities | $ 88,754 |
| Weighted average remaining lease term – operating leases (in years) | 2 years 3 months |
| Average discount rate – operating lease | 4.75% |
Leases (Details) - Schedule of Supplemental Balance Sheet Information Related to Leases - USD ($) |
Apr. 30, 2024 |
Oct. 31, 2023 |
|---|---|---|
| Schedule of Supplemental Balance Sheet Information Related to Leases [Abstract] | ||
| Right-of-use assets | $ 398,026 | $ 473,246 |
| Operating lease liabilities | $ 339,227 | $ 327,794 |
Leases (Details) - Schedule of Undiscounted Future Minimum Lease Payment Schedule |
Apr. 30, 2024
USD ($)
|
|---|---|
| Schedule of Undiscounted Future Minimum Lease Payment Schedule [Abstract] | |
| 2024 (six months from May 1, 2024 to October 31, 2024) | $ 88,199 |
| 2025 | 176,398 |
| 2026 | 74,630 |
| Total | $ 339,227 |
Convertible Debentures (Details) |
6 Months Ended |
|---|---|
|
Apr. 30, 2024
USD ($)
| |
| Convertible Debentures [Member] | |
| Convertible Debentures [Line Items] | |
| Interest expense | $ 239,325 |
Taxes Payable (Details) - Schedule of Taxes Payable - USD ($) |
Apr. 30, 2024 |
Oct. 31, 2023 |
|---|---|---|
| Schedule of Taxes Payable [Abstract] | ||
| Value-added tax, net | $ 957,760 | $ 868,805 |
| Company income tax | 1,720,195 | 1,702,093 |
| Other taxes | 117,226 | 115,981 |
| Total | $ 2,795,181 | $ 2,686,879 |
Contract Liability (Details) - Schedule of Contract Liability - USD ($) |
6 Months Ended | |
|---|---|---|
Apr. 30, 2024 |
Oct. 31, 2023 |
|
| Contract with Customer, Liability [Abstract] | ||
| Customer deposits for car purchase | $ 190,989 | $ 971,525 |
| Total, net | $ 190,989 | $ 971,525 |
Segments and Geographic Information (Details) |
6 Months Ended |
|---|---|
Apr. 30, 2024 | |
| Segments and Geographic Information [Abstract] | |
| Number of business segments | 2 |
Income Tax (Details) |
6 Months Ended |
|---|---|
Apr. 30, 2024 | |
| Income Tax [Absract] | |
| Profit tax rate | 25.00% |
Income Tax (Details) - Schedule of Net Taxable Income (Losses) Before Income Taxes and its Provision for Income Taxes - USD ($) |
6 Months Ended | |
|---|---|---|
Apr. 30, 2024 |
Apr. 30, 2023 |
|
| Schedule of Net Taxable Income (Losses) Before Income Taxes and its Provision for Income Taxes[Abstract] | ||
| Loss attributed to the PRC | $ (15,887,520) | $ (6,332,397) |
| PRC statutory tax rate | 25.00% | 25.00% |
| Income tax expense at statutory rate | ||
| PRC tax prepayment | 20 | |
| Income tax expense | $ 20 | |
Concentrations, Risks and Uncertainties (Details) - Schedule of Concentration on Sales Revenues - USD ($) |
6 Months Ended | |
|---|---|---|
Apr. 30, 2023 |
Apr. 30, 2022 |
|
| Schedule of Concentration on Sales Revenues [Abstract] | ||
| Third party sales revenues | $ 573,139 | |
| Third party sales revenues, percentage | 93.00% | |
| Related party sales revenues | $ 2,278,353 | |
| Related party sales revenues, percentage | 100.00% | |
| Third party franchise revenues | ||
| Third party franchise revenues, percentage | ||
| Related party franchise revenues | $ 2,885 | $ 13,527 |
| Related party franchise revenues, percentage | 3.00% | |
| Third party other revenues | $ 28,149 | |
| Third party other revenues, percentage | 4.00% | |
| Related party other revenues | ||
| Related party other revenues, percentage | ||
| Total | $ 2,281,238 | $ 614,815 |
| Total, percentage | 100.00% | 100.00% |
Concentrations, Risks and Uncertainties (Details) - Schedule of Concentration of Sales Revenues Generated by Third-Party Customers - Third-Party Customers [Member] - USD ($) |
6 Months Ended | |
|---|---|---|
Apr. 30, 2023 |
Apr. 30, 2022 |
|
| Schedule of Concentration of Sales Revenues Generated by Third-Party Customers [Line Items] | ||
| Sales revenues | $ 664,921 | |
| Sales revenues, percentage | 72.00% | |
| Customer A [Member] | ||
| Schedule of Concentration of Sales Revenues Generated by Third-Party Customers [Line Items] | ||
| Sales revenues | $ 88,189 | |
| Sales revenues, percentage | 10.00% | |
| Customer B [Member] | ||
| Schedule of Concentration of Sales Revenues Generated by Third-Party Customers [Line Items] | ||
| Sales revenues | $ 166,337 | |
| Sales revenues, percentage | 18.00% | |
| Customer C [Member] | ||
| Schedule of Concentration of Sales Revenues Generated by Third-Party Customers [Line Items] | ||
| Sales revenues | $ 270,120 | |
| Sales revenues, percentage | 29.00% | |
| Customer D [Member] | ||
| Schedule of Concentration of Sales Revenues Generated by Third-Party Customers [Line Items] | ||
| Sales revenues | $ 140,275 | |
| Sales revenues, percentage | 15.00% | |
Disposal of Subsidiary (Details) |
Jan. 24, 2024
USD ($)
|
Jan. 24, 2024
CNY (¥)
|
Apr. 30, 2024 |
|---|---|---|---|
| Disposal of Subsidiary [Line Items] | |||
| Ownership total price | $ | $ 6,000 | ||
| Hangzhou Jiuyao to Mr Shuibo Zhang [Member] | |||
| Disposal of Subsidiary [Line Items] | |||
| Ownership total price | ¥ | ¥ 5,998 | ||
| Hangzhou ZiTongChe Technology Co., Ltd. [Member] | |||
| Disposal of Subsidiary [Line Items] | |||
| Equity interest | 100.00% | ||
| Hangzhou Jiuyao Bew Energy Automobile Technology Co., Ltd. [Member] | |||
| Disposal of Subsidiary [Line Items] | |||
| Equity interest | 51.00% |
1 Year Jiuzi Chart |
1 Month Jiuzi Chart |
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