Company: CNEY
Filing Date: 2025-10-29
Form Type: F-1/A
Source: 0001477932-25-007791
Chunk: 78

Company: CN ENERGY GROUP. INC.
Filing Date: 2025-10-29
Form: F-1/A
Chunk 78
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. The decrease was primarily attributable to reduction of $1.4 million consultation service fees, reduction of $0.7 million in legal and other professional expenses, and reduction of $0.5 million staff and related expenses due to reduction of headcount from 133 employees in fiscal 2023 to 27 employees in fiscal 2024 as the Company initiated cost cutting measures to revive the business.

Research and Development Expenses

Research and development expenses include costs directly attributable to the conduct of research and development projects, including raw materials, equipment parts, salaries, and other employee benefits. Research and development expenses decreased by $0.9 million, or 86.3%, to $0.1 million for the fiscal year ended September 30, 2024, from $1.0 million for the same period of last year. The Company initiated cost cutting measures and ceased its spending in research and development expenses since November 2023.

Interest expenses

Interest expenses decreased by $0.4 million, or 52.8%, to $0.3 million for fiscal year 2024 from $0.7 million for the same period of last year. The decrease was mainly attributable to the full redemption of convertible notes.

Government Subsidy Income

The Company receives various government grants from time to time. There is no guarantee that the Company will continue to receive such grants in the future. For the fiscal years ended September 30, 2024, and 2023, the Company had the following subsidy income:

|                                     |     | 2024 | September 30, |     | 2023 | September 30, |
|:------------------------------------|:----|:-----|--------------:|:----|:-----|--------------:|
| Value-added tax refund              |     |      |             - |     | $    |       465,072 |
| Investment grant                    |     |      |             - |     |      |       292,487 |
| Equipment of energy projects grants |     | $    |        81,896 |     |      |        97,366 |
| Research and development grants     |     |      |             - |     |      |        71,058 |
| Total                               |     | $    |        81,896 |     | $    |       925,983 |

In January 2014, April 2014, and December 2019, the Company received government subsidies of approximately $840,000, $140,000