$ZKIN

ZK International Group Co., Ltd.

CIK:0001687451|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)	12 Months Ended
	Sep. 30, 2025	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Revenues	$ 71,241,683	$ 108,199,877	$ 111,599,686
Cost of sales	(67,201,491)	(101,652,681)	(110,303,270)
Gross profit	4,040,192	6,547,196	1,296,416
Operating expenses:
Selling and marketing expenses	1,531,222	1,639,873	2,117,810
General and administrative expenses	4,145,269	4,829,103	5,144,340
Asset impairment loss	1,757,042	599,709	53,203,517
Research and development costs	859,697	1,196,746	1,274,337
Total operating expenses	8,293,230	8,265,431	61,740,004
Operating loss	(4,253,038)	(1,718,235)	(60,443,588)
Other income (expenses):
Interest expenses	(330,233)	(1,232,686)	(1,583,734)
Interest income	6,737	15,142	36,699
Income on investment	428,654	0	0
Other income (expense), net	131,602	164,319	240,378
Total other income (expenses), net	236,760	(1,053,225)	(1,306,657)
Loss before income taxes	(4,016,278)	(2,771,460)	(61,750,245)
Income tax (expense) recovery	948	(12,106)	459,855
Net loss	(4,015,330)	(2,783,566)	(61,290,390)
Net (loss) income attributable to non-controlling interests	(30,146)	(1,650)	(229,596)
Net loss attributable to ZK International Group Co., Ltd.	(3,985,184)	(2,781,916)	(61,060,794)
Net loss	(4,015,330)	(2,783,566)	(61,290,390)
Other comprehensive income (loss):
Foreign currency translation adjustment	(823,911)	861,280	(549,332)
Total comprehensive loss	(4,839,241)	(1,922,286)	(61,839,722)
Comprehensive loss (income) attributable to non-controlling interests	36,989	4,387	228,696
Comprehensive loss attributable to ZK International Group Co., Ltd.	$ (4,802,252)	$ (1,917,899)	$ (61,611,026)
Basic and diluted loss per share
Basic (in Dollars per share)	$ (0.7)	$ (0.57)	$ (10.76)
Diluted (in Dollars per share)	$ (0.7)	$ (0.57)	$ (10.76)
Weighted average number of shares outstanding
Basic (in Shares)	5,677,182	4,908,345	4,492,280
Diluted (in Shares)	5,691,284	4,908,345	4,492,280

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Sep. 30, 2025	Sep. 30, 2024	Sep. 30, 2023
Cash Flows from Operating Activities:
Net loss	$ (4,015,330)	$ (2,783,566)	$ (61,290,390)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation expense	714,469	618,719	677,275
Amortization expense	154,582	230,611	298,431
Bad debt expense and credit loss	1,757,042	599,709	17,897,334
Deferred tax expenses	0	0	322,897
Gain on investment	(420,632)	0	0
Impairment on intangible assets and long-term investment	0	0	35,346,769
Change in unrecognized tax benefits	0	0	(823,340)
Stock compensation expense	1,137,193	0	2,014,133
Interest expense of convertible notes	81,071	906,459	658,913
Interest expense (income) of accounts receivable factoring	(483,680)	(478,733)	359,051
Changes in operating assets and liabilities:
Accounts receivable	(2,035,966)	(7,193,497)	8,165,567
Other receivables and prepayments	1,100,513	(4,249,882)	349,612
Notes receivable	194,194	(300,936)	(6,676)
Inventories	448,993	(4,409,255)	2,870,541
Advance to suppliers	16,045,563	(12,831,902)	1,401,001
Accounts payable	(639,824)	513,884	(7,451,608)
Notes payable	(43,920)	83,839	(666,355)
Accrued expenses and other current liabilities	111,457	(703,812)	(1,918,915)
Accrued payroll and welfare	407,644	404,829	130,063
Advance from customers	(13,735,752)	14,039,586	(923,844)
Income tax payable	0	(669)	0
Long-term prepaid expenses	0	0	707,470
Lease liability - Operating lease	(41,220)	(139,543)	(23,841)
Net cash provided by (used in) operating activities	736,397	(6,878,500)	(1,905,912)
Cash Flows from Investing Activities:
Purchases of property, plant and equipment	(588,551)	(603,054)	(656,178)
Purchase of CIP	0	0	(930,814)
Purchases of intangible assets	(63,438)	0	(707,470)
Investment into Recruiter.Com Group Inc	0	(1,750,000)	0
Net cash used in investing activities	(651,989)	(2,353,054)	(2,294,462)
Cash Flows from Financing activities:
Net proceeds released from (placed into) short-term investment	50,111	0	852,542
Proceeds from short-term bank borrowings	22,872,790	15,823,883	21,486,396
Repayments of short-term bank borrowings	(22,062,946)	(12,706,162)	(19,350,091)
Net (repayment) receiving for due to related parties	(381,500)	(894,095)	(920,690)
Repayment of other borrowing	0	0	0
Proceeds from stock issuances	0	5,000,000	0
Net cash provided by (used in) financing activities	478,455	7,223,626	2,068,157
Effect of exchange rate changes on cash	(856,957)	1,075,826	(439,515)
Net (decrease) increase in cash, cash equivalents and restricted cash	(294,094)	(932,102)	(2,571,733)
Cash and cash equivalents and restricted cash at the beginning of period	4,113,304	5,045,406	7,617,139
Cash, cash equivalents and restricted cash at the end of period	3,819,210	4,113,304	5,045,406
Supplemental disclosures of cash flows information:
Cash paid for income taxes	13,767	47,785	38,695
Cash paid for interest expenses	708,623	758,686	774,929
Non-cash transactions
Offset between due from related parties and due to related parties balances	314,434	0	545,844
Intangible assets obtained in exchange for settlement of long-term deposit	$ 0	$ 0	$ 707,470

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2025	Sep. 30, 2024
Current assets
Cash and cash equivalents	$ 2,306,571	$ 4,009,387
Restricted cash	1,512,639	103,917
Short-term Investment		50,111
Accounts receivable, net of allowance for doubtful accounts and provision for expected credit loss of $8,256,737 and $7,580,664, respectively	23,088,679	22,393,810
Notes receivable	161,567	355,761
Prepayment, deposit and other receivable - current	3,827,702	4,657,014
Due from related parties	177,658	0
Inventories	13,079,177	13,528,170
Advance to suppliers	1,596,383	17,641,946
Total current assets	45,750,376	62,740,116
Property, plant and equipment, net	7,806,396	8,104,335
Right-of-use asset – Operating lease	299,807	162,103
Intangible assets, net	1,172,324	1,282,939
Deferred tax assets	0	0
Prepayment, deposit and other receivable - Non-current	0	271,201
Long-term prepayment	0	0
Long-term accounts receivable	5,371,315	5,379,311
Long-term investment	2,467,500	2,046,868
TOTAL ASSETS	62,867,718	79,986,873
Current liabilities:
Accounts payable	2,485,280	3,125,104
Accrued expenses and other current liabilities	4,372,537	4,261,080
Operating lease liability - current	52,483	12,280
Accrued payroll and welfare	2,730,888	2,323,244
Advance from customers	1,125,528	14,861,280
Due to related parties	13,064	216,906
Convertible debentures	4,998,754	4,917,683
Bank borrowings - current	12,072,623	10,259,918
Long-term Bank borrowings - current	3,945,077	9,765,447
Notes payables	81,037	124,957
Income tax payable	0	0
Total current liabilities	31,877,271	49,867,899
Operating lease liability – non-current	56,281	0
Bank borrowings – non-current	6,319,708	1,802,468
TOTAL LIABILITIES	38,253,260	51,670,367
COMMITMENTS AND CONTINGENCIES	0	0
Equity
Common stock, no par value, 50,000,000 shares authorized, 6,612,308 and 5,163,946 shares issued and outstanding, respectively		0
Additional paid-in capital	79,024,091	77,886,898
Statutory surplus reserve	3,176,556	3,176,556
Subscription receivable	(125,000)	(125,000)
Retained earnings (Deficits)	(54,433,757)	(50,448,573)
Accumulated other comprehensive loss	(3,144,036)	(2,326,968)
Total equity attributable to ZK International Group Co., Ltd.	24,497,854	28,162,913
Equity attributable to non-controlling interests	116,604	153,593
Total equity	24,614,458	28,316,506
TOTAL LIABILITIES AND EQUITY	$ 62,867,718	$ 79,986,873