General and Administrative expenses
We incurred $5,772,710 in general and administrative expenses for the fiscal year ended September 30, 2021, compared to $2,482,972 for the fiscal year ended September 30, 2020. General and administrative expenses increase by $3,289,738, or 132.49%, for the fiscal year ended September 30, 2021 compared to the fiscal year ended September 30, 2020. The increase is primarily due to the stock-based compensation incurred during the fiscal year 2021 for the expenses related to our new business operations. During fiscal year 2021, we hired third-part individuals and consulting firms to facilitate our operations in xSigma Corporation which is principally engaged in decentralized finance (“DeFi”) and cryptocurrency market, and xSigma Collectibles which is principally engaged in operating NFT (Non-Fungible Token) marketplace.
We incurred $2,482,972 in general and administrative expenses for the fiscal year ended September 30, 2020, compared to $2,897,995 for the fiscal year ended September 30, 2019. General and administrative expenses decreased by $415,023, or 14.32%, for the fiscal year ended September 30, 2020 compared to the fiscal year ended September 30, 2019. The decrease is primarily due to decrease in travelling expenses, advertising expenses and entertainment expenses.
Research and Development Expenses
We incurred $1,234,161 in research and development expenses for the fiscal year ended September 30, 2021, compared to $1,123,555 for the fiscal year ended September 30, 2020. R&D expenses increased by $110,606, or 9.84%, for the fiscal year ended September 30, 2021 compared to the fiscal year ended September 30, 2020. The increase was primarily due to the increased research and development activities during fiscal year 2021. Management is committed to expanding our research and development activities to enhance competitive advantage.
We incurred $1,123,555 in research and development expenses for the fiscal year ended September 30, 2020, compared to $1,452,061 for the fiscal year ended September 30, 2019. R&D expenses decreased by $328,506, or 22.62%, for the fiscal year ended September 30, 2020 compared to the fiscal year ended September 30, 2019. The decrease was primarily due to the decreased research and development activities as a result of the disruption caused by the pandemic.
Income from operations
As a result of the factors described above, operating loss was $3,653,589 for the fiscal year ended September 30, 2021, compared to operating loss of $1,879,376 for the fiscal year ended September 30, 2020, an increase of operating loss of $1,774,213 or approximately 94.40%.
As a result of the factors described above, operating loss was $1,879,376 for the fiscal year ended September 30, 2020, compared to operating income of $8,646,557 for the fiscal year ended September 30, 2019, a decrease of operating income of $10,525,933, or approximately 121.74%.
Other income and expenses
Our interest income and expenses were $13,733 and $1,196,648, respectively, for the fiscal year ended September 30, 2021, compared to interest income and expenses of $7,192 and $1,000,554, respectively, for the fiscal year ended September 30, 2020. We also had government grant of $446,480 for financial support to the Company under local government’s innovation incentive programs which was recorded as other income in our Statement of Operations.
Our interest income and expenses were $7,192 and $1,000,554, respectively, for the fiscal year ended September 30, 2020, compared to interest income and expenses of $24,437 and $1,151,045, respectively, for the fiscal year ended September 30, 2019. We also had gain of $536,612 for the fiscal year ended September 30, 2020 for selling one subsidiary company to unaffiliated individual, government grant of $327,651 for financial support to the Company under local government’s innovation incentive programs, and a loss incurred due to failed acquisition which caused surrender of long-term deposit we pledged to the company with an amount of $256,937.
Net Income
As a result of the factors described above, our net loss for the fiscal year ended September 30, 2021 was $3,802,271 compared to net loss of $837,016 for the fiscal year ended September 30, 2020, an increase in loss of $2,965,255 or approximately 354.27%.
Our net income for the fiscal year ended September 30, 2020 was $837,016 compared to net profit of $8,193,694 for the fiscal year ended September 30, 2019, a decrease in profit of $9,030,710, or approximately 110.22%.