UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)
~~[X]~~☒	Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934

	For the quarterly period ended ~~June 30,~~December 31, 2021

~~[ ]~~☐	Transition Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934

	For the transition period from _____________ to _____________

Commission File No. 000-55329

Cleartronic, Inc. (Exact name of registrant as specified in its charter)
	Florida	65-0958798
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
8000 North Federal Highway, Boca Raton, Florida		33487
(Address of principal executive offices)		(Zip Code)

561-939-3300

(Registrant's telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ~~[X]~~☒ No ~~[ ]~~☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ~~[X]~~☒ No ~~[ ]~~☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ~~[x]~~☒	Smaller reporting company ~~[x]~~☒
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 12(a) of the Exchange Act ~~[ ]~~☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ~~[ ]~~☐ No ~~[X]~~☒

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ~~[ ]~~☐ No ~~[ ]~~☐

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common stock Par Value $0.00001		CLRI		NONE

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: ~~227,102,935~~228,578,995 shares as of ~~August 13, 2021.~~February 14, 2022.

-i-

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

CLEARTRONIC, INC. AND ~~SUBSIDIARIES~~SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS	ASSETS					ASSETS
			June 30, 2021		September			December 31, 2021		September
			(Unaudited)		30, 2020			(unaudited)		30, 2021
Current assets:
Cash		$	302,102	$	75,983		$	378,094	$	401,001
Accounts receivable, net			203,145		218,615			273,378		320,245
Inventory			11,162		12,471			21,241		14,653
Prepaid expenses and other current assets			88,568		39,416			14,019		47,383
Note receivable			25,000		25,000
Total current assets			629,977		371,485			686,732		783,282

Property and Equipment, net			9,072		8,427			15,635		11,391

Other assets:
Due from related party			20,968		13,420			51,187		44,801
Total other assets			20,968		13,420			51,187		44,801
Total assets		$	660,017	$	393,332		$	753,554	$	839,474

LIABILITIES AND STOCKHOLDERS' DEFICIT	LIABILITIES AND STOCKHOLDERS' DEFICIT					LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable		$	198,213	$	253,372
Accrued expenses			0-		43,457
Accounts payable and accrued expenses							$	186,358	$	159,952
Deferred revenue, current portion			962,921		693,886			815,023		977,296
Notes payable stockholders			0-		48,447
Note payable, current portion			0-		18,944
Total current liabilities			1,161,134		1,058,106			1,001,381		1,137,248

Long Term Liabilities
Note payable, net of current portion			106,727		87,783
Deferred revenue, net of current portion			7,163		34,239			144,200		154,500
Total long term liabilities			113,890		122,022			144,200		154,500
Total liabilities			1,275,024		1,180,128			1,145,581		1,291,748

Commitments and Contingencies (See Note 8)			0-		0-
Commitments and Contingencies (See Note 6)								0-		0-

Stockholders' deficit:
Series A preferred stock - $.00001 par value; 1,250,000 shares authorized, 512,996 issued and outstanding, respectively.			5		5			5		5
Series B preferred stock - $.00001 par value; 10 shares authorized, 0 shares issued and outstanding, respectively.			0-		0-			0-		0-
Series C preferred stock - $.00001 par value; 50,000,000 shares authorized, 3,911,715 and 4,433,375 shares issued and outstanding, respectively			40		45
Series C preferred stock - $.00001 par value; 50,000,000 shares authorized, 3,341,503 shares issued and outstanding, respectively.								34		34
Series D preferred stock - $.00001 par value; 10,000,000 shares authorized, 670,904 shares issued and outstanding, respectively.			7		7			7		7
Series E preferred stock - $.00001 par value, 10,000,000 shares authorized, 3,000,000 shares issued and outstanding, respectively.			30		30			30		30
Common stock - $.00001 par value; 5,000,000,000 shares authorized, 226,602,935 and 223,994,635 shares issued and outstanding, respectively			2,266		2,240
Common stock - $.00001 par value; 5,000,000,000 shares authorized, 228,578,995 shares issued and outstanding, respectively.								2,286		2,286
Additional paid-in capital			15,266,697		15,266,718			15,240,107		15,240,107
Accumulated Deficit			(15,884,052)		(16,055,841)			(15,634,496)		(15,694,743)
Total stockholders' deficit			(615,007)		(786,796)			(392,027)		(452,274)
Total liabilities and stockholders' deficit		$	660,017	$	393,332		$	753,554	$	839,474

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements

	For the Three Months ended June 30, 2021		For the Three Months ended June 30, 2020		For the Nine Months ended June 30, 2021		For the Nine Months ended June 30, 2020
			(Restated)				(Restated)		For the Three Months ended December 31, 2021		For the Three Months ended December 31, 2020
Revenue	$	413,868	$	375,250	$	1,217,928	$	1,319,152	$	519,185	$	381,338
Cost of Revenue		64,777		73,142		198,580		322,564		92,236		60,334
Gross Profit		349,091		302,108		1,019,348		996,588		426,949		321,004

Operating Expenses:
Selling expenses		147,483		116,624		417,614		388,895		188,545		160,859
Administrative expenses		106,253		91,010		327,336		291,858		127,915		92,366
Amortization and depreciation		521		150		1,423		11,028
Depreciation										814		451
Research and development		48,285		28,192		118,612		114,993		49,260		30,789
Total Operating Expenses		302,542		235,976		864,985		806,774		366,534		284,465

Gain on the settlement and reversal of accounts payable		18,430		0-		18,430		0-
Interest expense, net		264		(2,116)		(1,004)		(7,201)		(168)		(1,115)
Total Other Income(Expense)		18,694		(2,116)		17,426		(7,201)
Total Other Expense										(168)		(1,115)

Income from continuing operations before income taxes		65,243		64,016		171,789		182,613
Income from operations before income taxes										60,247		35,424

Provision for income taxes from continuing operations		0-		0-		0-		0-

Income from continuing operations		65,243		64,016		171,789		182,613

Discontinued operations
Loss from discontinued operations before income taxes		0-		0-		0-		(64,936)

Provision for Income taxes from discontinued operations		0-		0-		0-		0-
Loss from discontinued operations		0-		0-		0-		(64,936)
Provision for income taxes from operations										0-		0-

Net Income		65,243		64,016		171,789		(117,677)		60,247		35,424

Preferred stock dividends Series A Preferred		(10,119)		(10,231)		(30,584)		(30,806)		(10,344)		(10,346)

Net income attributable to common stockholders	$	55,124	$	53,785	$	141,205	$	(86,871)	$	49,903	$	25,078

Net income per share - basic and diluted
Income from Continuing Operations		0.00		0.00		0.00		0.00
Loss from discontinued operations		0-		0-		0-		(0.00)
Net income per common share - basic	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00

Net income per common share - diluted	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00

Weighted Average of number of shares outstanding - basic		226,602,935		223,994,635		224,997,827		222,355,291		228,578,995		223,994,635

Weighted Average of number of shares outstanding - diluted		600,815,630		600,815,630		599,210,522		599,176,286		599,940,630		600,815,630

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements

For nine months
For nine months
ended
ended
June 30, 2021
June 30, 2020
(Restated)
NET INCOME
$
171,789
$
117,677
Cash Flows From Operating Activities
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization of ReadyOp software platform
0-
10,878
Depreciation expense
1,423
150
Gain on the settlement and reversal of accounts payable
(18,430)
0-
Provision (Recovery) for bad debt
6,000
(13,335)
(Increase) decrease in assets:
Accounts receivable
9,470
49,176
Inventory
1,309
13,042
Prepaid expenses and other current assets
(49,152)
15,000
Due from related party
(7,548)
(13,420)
Other assets
0-
8,656
Assets from discontinued operations
0-
9,929
Increase (decrease) in liabilities:
Accounts payable
(36,729)
(28,019)
Accrued expenses
(43,457)
(68,756)
Deferred revenue
241,959
(142,091)
Liabilities from discontinued operations
0-
2,486
Net Cash Provided By (Used In) Operating Activities
276,634
(38,627)

Cash Flows From Investing Activities
Purchase of fixed assets
(2,068)
(9,029)
Issuance of note receivable
0-
(25,000)
Net Cash Used in Investing Activities
(2,068)
(34,029)

Cash Flows From Financing Activities
Proceeds from issuance of installment loan-discontinued operations
0-
43,600
Repayment of installment loan - discontinued operations
0-
(33,151)
Proceeds from notes payable
0-
156,727
Repayment of notes payable
0-
(50,000)
Repayment of notes payable stockholders
(48,447)
(20,732)
Proceeds from loan payable - related party - discontinued operations
0-
11,362
Net Cash (Used in) Provided by Financing Activities
(48,447)
107,806

Net increase in cash
226,119
35,150

Cash at beginning of period
75,983
27,698

Cash at end of period
$
302,102
$
62,848

SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest
$
2,754
$
4,433
Cash paid for taxes
$
0-
$
0-

Supplemental disclosure of non-cash investing and financing activities:
Operating lease asset obtained for operating lease liability from discontinued operations
$
0-
$
75,078
Deconsolidation of Voiceinterop, Inc.
$
-
$
225,316

	For the Three Months		For the Three Months
	ended		ended
	December 31, 2021		December 31, 2020
NET INCOME	$	60,247	$	35,424
Cash Flows From Operating Activities
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation expense		814		451
Provision for bad debt		0-		16,500
(Increase) decrease in assets:
Accounts receivable		46,867		40,900
Inventory		(6,588)		594
Prepaid expenses and other current assets		33,364		(14,404)
Due from related party		(6,386)		(1,000)
Increase (decrease) in liabilities:
Accounts payable and accrued expenses		26,406		(9,852)
Deferred revenue		(172,573)		(70,540)
Net Cash Used In Operating Activities		(17,849)		(1,927)

Cash Flows From Investing Activities
Purchase of fixed assets		(5,058)		0-
Net Cash Used in Investing Activities		(5,058)		0-

Cash Flows From Financing Activities
Repayment of notes payable stockholders		0-		(15,615)
Net Cash Used in Financing Activities		0-		(15,615)

Net decrease in cash		(22,907)		(17,542)

Cash at beginning of period		401,001		75,983

Cash at end of period	$	378,094	$	58,441

SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	$	168	$	1,498
Cash paid for taxes	$	690	$	0-

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN ~~STOCKHOLDERS'~~STOCKHOLDERS’ DEFICIT

Series A
Series B
Series C
Series D
Series E
Additional
Total
Preferred Stock
Preferred Stock
Preferred Stock
Preferred Stock
Preferred Stock
Common Stock
paid-in
Accumulated
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Shares
Amount
Shares
Amount
Shares
Amount
capital
deficit
Deficit
Balance at March 31, 2021 (Unaudited)
512,996
$
5
0-
$
0-
3,911,715
$
40
670,904
$
7
3,000,000
$
30
226,602,935
$
2,266
$
15,266,697
$
(15,949,295)
$
(680,250)

Net income for the three months ended June 30, 2021
0-
0-
-
-
-
-
-
-
-
-
-
-
-
65,243
65,243
Balance at June 30, 2021 (Unaudited)
512,996
$
5
0-
$
0-
3,911,715
$
40
670,904
$
7
3,000,000
$
30
226,602,935
$
2,266
$
15,266,697
$
(15,884,052)
$
(615,007)

Series A
Series B
Series C
Series D
Series E
Additional
Total
Preferred Stock
Preferred Stock
Preferred Stock
Preferred Stock
Preferred Stock
Common Stock
paid-in
Accumulated
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Shares
Amount
Shares
Amount
Shares
Amount
capital
deficit
Deficit

Balance at September 30, 2020
512,996
$
5
0-
$
0-
4,433,375
$
45
670,904
$
7
3,000,000
$
30
223,994,635
$
2,240
$
15,266,718
$
(16,055,841)
$
(786,796)

Series C Convertible Preferred shares exchanged for common shares
-
-
-
-
(521,660)
(5)
-
-
-
-
2,608,300
26
(21)
-
-

Net income for the nine months ended June 30, 2021
-
-
-
-
-
-
-
-
-
-
-
-
-
171,789
171,789
Balance at June 30, 2021 (Unaudited)
512,996
$
5
0-
$
0-
3,911,715
$
40
670,904
$
7
3,000,000
$
30
226,602,935
$
2,266
$
15,266,697
$
(15,884,052)
$
(615,007)

	Series A			Series B			Series C			Series D			Series E						Additional				Total
	Preferred Stock			Preferred Stock			Preferred Stock			Preferred Stock			Preferred Stock			Common Stock			paid-in		Accumulated		Stockholders'
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		capital		deficit		Deficit

Balance at September 30, 2021	512,996	$	5	0-	$	0-	3,341,503	$	34	670,904	$	7	3,000,000	$	30	228,578,995	$	2,286	$	15,240,107	$	(15,694,743)	$	(452,274)

Net income for the three months ended December 31, 2021	-		-	-		-	-		-	-		-	-		-	-		-		-		60,247		60,247
Balance at December 31, 2021 (Unaudited)	512,996	$	5	0-	$	0-	3,341,503	$	34	670,904	$	7	3,000,000	$	30	228,578,995	$	2,286	$	15,240,107	$	(15,634,496)	$	(392,027)

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN ~~STOCKHOLDERS'~~STOCKHOLDERS’ DEFICIT

Series A
Series B
Series C
Series D
Series E
Additional
Total
Preferred Stock
Preferred Stock
Preferred Stock
Preferred Stock
Preferred Stock
Common Stock
paid-in
Accumulated
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Shares
Amount
Shares
Amount
Shares
Amount
capital
deficit
Deficit

Balance at March 31, 2020 (Restated and Unaudited)
512,996
$
5
0-
$
0-
4,433,375
$
45
670,904
$
7
3,000,000
$
30
223,994,635
$
2,240
$
15,266,718
$
(16,167,449)
$
(898,404)

Net income for three months ended June 30, 2020
-
-
-
-
-
-
-
-
-
-
-
-
-
64,016
64,016

Balance at June 30, 2020 (Restated and Unaudited)
512,996
$
5
0-
$
0-
4,433,375
$
45
670,904
$
7
3,000,000
$
30
223,994,635
$
2,240
$
15,266,718
$
(16,103,433)
$
(834,388)

Series A
Series B
Series C
Series D
Series E
Additional
Total
Preferred Stock
Preferred Stock
Preferred Stock
Preferred Stock
Preferred Stock
Common Stock
paid-in
Accumulated
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Shares
Amount
Shares
Amount
Shares
Amount
capital
deficit
Deficit
Balance at September 30, 2019
512,996
$
5
0-
$
0-
4,433,375
$
45
670,904
$
7
3,000,000
$
30
211,994,635
$
2,120
$
15,041,522
$
(16,221,110)
$
(1,177,381)

Deconsolidation of Voiceintrop, Inc.
-
-
-
-
-
-
-
-
-
-
-
-
225,316
-
225,316

Acquisition of ReadyMed platform in exchange for common shares
-
-
-
-
-
-
-
-
-
-
12,000,000
120
(120)
-
-

Net income for nine months ended June 30, 2020
-
-
-
-
-
-
-
-
-
-
-
-
-
117,677
117,677

Balance at June 30, 2020 (Restated and Unaudited)
512,996
$
5
0-
$
0-
4,433,375
$
45
670,904
$
7
3,000,000
$
30
223,994,635
$
2,240
$
15,266,718
$
(16,103,433)
$
(834,388)

	Series A			Series B			Series C			Series D			Series E						Additional				Total
	Preferred Stock			Preferred Stock			Preferred Stock			Preferred Stock			Preferred Stock			Common Stock			paid-in		Accumulated		Stockholders’
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		capital		deficit		Deficit

Balance at September 30, 2020	512,996	$	5	0-	$	0-	4,433,375	$	45	670,904	$	7	3,000,000	$	30	223,994,635	$	2,240	$	15,266,718	$	(16,055,841)	$	(786,796)

Net income for the three months ended December 31, 2020	-		-	-		-	-		-	-		-	-		-	-		-		-		35,424		35,424

Balance at December 31, 2020 (Unaudited)	512,996	$	5	0-	$	0-	4,433,375	$	45	670,904	$	7	3,000,000	$	30	223,994,635	$	2,240	$	15,266,718	$	(16,020,417)	$	(751,372)

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements

Cleartronic, Inc. (the "Company") was incorporated in Florida on November 15, 1999. All current operations are conducted through the Company's wholly owned subsidiary, ReadyOp Communications, Inc. ("ReadyOp"), a Florida corporation incorporated on September 15, 2014. ReadyOp facilitates the marketing and sales of subscriptions to the ReadyOp™ and ReadyMed ™ platform and the AudioMate IP gateways discussed below.

In March 2018, the Company approved the spin-off VoiceInterop into a separate company under a Form S-1 registration to be filed with the United States Securities and Exchange Commission. On May 13, 2019, VoiceInterop filed an S-1 registration with the United States Securities and Exchange Commission. All VoiceInterop transactions have been recorded as discontinued operations. On February 14, 2020, the distribution of shares was approved by FINRA and VoiceInterop was deconsolidated from Cleartronic, Inc. ~~(See Note 9).~~

The accompanying consolidated financial statements contain the consolidated accounts of Cleartronic, Inc. and its subsidiary, ReadyOp Communications, Inc. All material intercompany transactions and balances have been eliminated. ~~On February 14, 2020, the deconsolidation of VoiceInterop was completed and transactions through that date are recorded as discontinued operations (See Note 9).~~

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q of Regulation S-K. They may not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year ended September 30, ~~2020~~2021 included in the Company's Annual Report on Form 10-K filed with the United States Securities and Exchange Commission. The unaudited interim consolidated financial statements should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting solely of normal and recurring adjustments have been made. Operating results for the three ~~and nine~~ months ended ~~June 30,~~December 31, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ended September 30, ~~2021.~~2022.

In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and operations for the reporting period.

Although these estimates are based on management's knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results.

Significant estimates include the assumptions used in valuation of deferred tax assets, estimated useful life of ~~intangible assets and~~ property and equipment, valuation of inventory and allowance for doubtful accounts.

For financial statement purposes, the Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. The Company did not own any cash equivalents on ~~June 30,~~December 31, 2021 and September 30, ~~2020.~~2021.

The Company provides an allowance for uncollectible accounts based upon a periodic review and analysis of outstanding accounts receivable balances. Uncollectible receivables are charged to the allowance when deemed uncollectible. Recoveries of accounts previously written off are used to credit the allowance account in the periods in which the recoveries are made. When a client is invoiced, the amount is recorded as an asset in Accounts Receivable and as Deferred Revenue in Current Liabilities. When payment is received the amount is moved to Cash on the balance sheet. The amount listed as Deferred Revenue is amortized monthly over the license period.

The Company provided ~~$6,000~~$10,000 and ~~$6,000~~$10,000 allowances for doubtful accounts as of ~~June 30,~~December 31, 2021 and September 30, ~~2020,~~2021, respectively.

Property and equipment are recorded at cost and depreciated or amortized using the straight-line method over the estimated useful life of the asset or the underlying lease term for leasehold improvements, whichever is shorter onset the property and equipment is put into service.

In October 2019, the Company acquired a software platform from Collabria LLC. In exchange for this asset, the Company issued 12,000,000 shares of Common stock valued at historical costs of $600,000. ReadyMed is a web based secure communication platform designed for the health care industry. This includes hospitals, clinics, doctor's offices and health insurance companies and many other segments of the health care industry. It provides hospitals with patient tracking capability within the hospital. It allows physicians to track patient progress after release from the hospital and allows for secure communication with the patient to track the healing process, record their recovery and monitor their medications. As of the acquisition date, the Company has recorded an estimated historical cost of the ReadyMed software platform based on a preliminary purchase price allocation prepared by management. As a result, during the preliminary purchase price allocation period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired. After the preliminary purchase price allocation period, the Company recorded adjustments to assets acquired subsequent to the purchase price allocation period in the period in which the adjustments were determined. Accordingly, the ReadyMed software platform purchased price was adjusted. As of June 30, 2021 and September 30, 2020, the ReadyMed software platform is valued at historical costs of $0 (See Notes 6 and 7).

In November 2016, the Company acquired the ReadyOp software platform and the Collabria customer base from Collabria LLC. In exchange for these assets the Company issued 3,000,000 shares of restricted Series E Convertible Preferred stock valued at $292,240. This valuation was based on internal calculations and validated by a third party valuation expert. The ReadyOp software platform was valued at $195,600 to be amortized over three years. The amortization expense for the nine months ended June 30, 2021 and 2020 was $0 and $10,878, respectively. The amortization expense for the three months ended June 30, 2021 and 2020 was $0 and $0, respectively. As of June 30, 2021 and September 30, 2020, ReadyOp software platform has been fully amortized.

The Company currently maintains cash balances at one FDIC-insured banking institution. Deposits held in non interest-bearing transaction accounts are insured up to a maximum of $250,000 at all FDIC-insured institutions. As of ~~June 30,~~December 31, 2021 and September 30, ~~2020,~~2021, the Company had ~~$51,690~~$0 and ~~$0,~~$139,577, respectively, in excess of FDIC insurance limits.

The Company expenses research and development costs as incurred. For the ~~nine~~three months ended ~~June 30,~~December 31, 2021 and 2020, the Company had ~~$118,612~~$49,260 and ~~$114,993, respectively, in research and development costs . For the three months ended June 30, 2021 and 2020, the Company had $48,285 and $28,192,~~$30,789, respectively, in research and development costs.

The Company revenue recognition policy follows guidance from Accounting Standards Codification (ASC) 606, Revenue from contract with customers. Revenue is recognized when the Company transferred promised goods and services to the customer and in the amount that reflect the consideration to which the company expected to be entitled in exchange for those goods and services.

The Company applies the following five-step model in order to determine this amount:

Recognition of revenue when (or as) the Company satisfies each performance obligation.

The Company generates revenue primarily through the sale of integrated hardware and software licenses. The portion of the contract that is associated with ongoing hosting and related customer service is amortized monthly over the license period. The Company incurs certain incremental contract costs (referred to as deferred subscriber acquisition costs, net) including selling expenses (primarily commissions) related to acquiring customers. Deferred subscriber acquisition costs, net are included in prepaid and expenses and other current assets on the consolidated balance sheet. Commissions paid in connection with acquiring new customers are determined based on the value of the contractual fees. Deferred subscriber acquisition costs will be ~~amortized over~~expensed as incurred on the ~~license period.~~date the revenue associated with the cost is recognized. As of ~~June 30,~~December 31, 2021 and September 30, ~~2020,~~2021, respectively, the Company recorded ~~$56,866~~$0 and ~~$20,900,~~$41,283, respectively, in deferred subscriber costs, which is included as a component of prepaid expense.

In transactions in which hardware is sold to a customer, the Company recognizes the revenue when the hardware has been shipped to the customer. The hardware supplied by the Company does not require a related software license and can be operated and fully functional without the Company's software.

From time to time clients request special training meetings. We send employees to these meeting and charge our clients on a per diem basis. These charges are recorded as consulting fees on our income statement.

The Company allocates the transaction price to each performance obligation based on a relative standalone selling price. Revenue associated with the sale and installation of system licenses is recognized once installation is complete.

Customer billings for services not yet rendered are deferred and recognized as revenue as services are provided. These fees are recorded as current deferred revenue on the consolidated balance sheet as the Company expects to satisfy any remaining performance obligations as well as recognize the related revenue within the next twelve months. Accordingly, the Company has applied the practical expedient regarding deferred revenue to exclude the value of remaining performance obligations if (i) the contract has an original expected term of one year or less or (ii) the Company recognizes revenue in proportion to the amount it has the right to invoice for services performed.

~~Basic~~Earnings per share (“EPS”) are the amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share. EPS is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16, basic EPS shall be computed by dividing income ~~(loss) per~~available to common ~~share is calculated using~~stockholders (the numerator) by the weighted average number of common shares outstanding (the denominator) during the ~~periods reported. Diluted earnings per share~~period. Income available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from income from continuing operations (if that amount appears in the income statement) and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the ~~weighted average~~number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options or warrants.

Pursuant to ASC Paragraphs 260-10-45-45-21 through 260-10-45-45-23 Diluted EPS shall be based on the most advantageous conversion rate or exercise price from the standpoint of the security holder. The dilutive effect of ~~all dilutive securities~~ outstanding call options and warrants (and their equivalents) issued by the reporting entity shall be reflected in diluted EPS by application of the treasury stock method unless the provisions of paragraphs 260-10-45-35 through 45-36 and 260-10-55-8 through 55-11 require that another method be applied. Equivalents of options and warrants include non-vested stock granted to employees, stock purchase contracts, and partially paid stock subscriptions (see paragraph 260–10–55–23). Anti-dilutive contracts, such as purchased put options and purchased call options, shall be excluded from diluted EPS. Under the treasury stock method: a. Exercise of options and warrants shall be assumed at the beginning of the period (or at time of issuance, if later) and common shares shall be assumed to be issued. b. The proceeds from exercise shall be assumed to be used to purchase common stock at the average market price during the ~~periods presented. Diluted per share loss is~~period. (See paragraphs 260-10-45-29 and 260-10-55-4 through 55-5.) c. The incremental shares (the difference between the ~~same as basic per share loss when there is a loss from continuing operations. Accordingly, for purposes~~number of ~~dilutive earnings per share,~~shares assumed issued and the ~~Company excluded~~number of shares assumed purchased) shall be included in the ~~effect~~denominator of ~~warrants and options.~~the diluted EPS computation.

As of ~~June 30,~~December 31, 2021 and 2020, we had no options and warrants outstanding.

As of ~~June 30,~~December 31, 2021 and 2020, we had 512,996 shares of Series A Convertible Preferred stock outstanding, which are convertible into 51,299,600 shares of common stock.

As of ~~June 30,~~December 31, 2021 and 2020, we had ~~3,911,715~~3,341,503 and 4,433,375 shares of Series C Convertible Preferred stock outstanding, respectively, which are convertible into ~~19,558,575~~16,707,515 and 22,166,875 shares of common stock, respectively.

As of ~~June 30,~~December 31, 2021 and 2020, we had 670,904 shares of Series D Preferred stock outstanding which are convertible into 3,354,520 shares of common stock.

As of ~~June 30,~~December 31, 2021 and 2020, we had 3,000,000 shares of Series E Convertible Preferred stock outstanding which are convertible into 300,000,000 shares of common stock.

The table below details the computation of basic and diluted earnings per share ("EPS") for the three months ended ~~June 30,~~December 31, 2021 and 2020:

~~The table below details the computation of basic and diluted earnings per share ("EPS") for the nine months ended June 30, 2021 and 2020:~~

The Company measures the fair value of its assets and liabilities under ASC topic 820, "Fair Value Measurements and Disclosures". ASC 820 defines "fair value" as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There was no impact relating to the adoption of ASC 820 to the Company's consolidated financial statements.

ASC 820 also describes three levels of inputs that may be used to measure fair value:

- Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets.

- Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

- Level 3: Inputs that are generally observable. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.

Financial instruments consist principally of cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and deferred revenue. The carrying amounts of such financial instruments in the accompanying consolidated balance sheet approximate their fair values due to their relatively short-term nature. The fair value of long-term debt is based on current rates at which the Company could borrow funds with similar remaining maturities. The carrying amounts approximate fair value. It is management's opinion that the Company is not exposed to any significant currency or credit risks arising from these financial instruments.

Inventory consists of components held for assembly and finished goods held for resale or to be utilized for installation in projects. Inventory is valued at lower of cost or net realizable value on a first-in, first-out basis. The Company's policy is to record a reserve for technological obsolescence or slow-moving inventory items. The Company only carries finished goods to be shipped along with completed circuit boards and parts necessary for final assembly of finished product. All existing inventory is considered current and usable. The Company recorded no reserve for obsolete inventory as of ~~June 30,~~December 31, 2021 and September 30, ~~2020,~~2021, respectively.

~~EQUITY INSTRUMENTS ISSUED TO PARTIES OTHER THAN EMPLOYEES FOR ACQUIRING GOODS OR SERVICES~~

Advertising costs are expensed as incurred. The Company had advertising costs of ~~$12,583~~$5,025 and ~~$25,691 during the nine months ended June 30, 2021 and 2020, respectively, and $3,877 and $5,497~~$3,532 during the three months ended ~~June 30,~~December 31, 2021 and 2020, respectively.

~~In December 2019, the FASB issued ASU 2019-12,~~ ~~Income Taxes (Topic 740)~~: Simplifying the Accounting for Income Taxes, as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. The FASB's amendments primarily impact ASC 740, ~~Income Taxes~~, and may impact both interim and annual reporting periods. ASU 2019-12 will be effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years and early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2019-12.

All ~~other~~ newly issued accounting pronouncements but not yet effective have been deemed either immaterial or not applicable.

At ~~June 30,~~December 31, 2021 and September 30, ~~2020,~~2021, property and equipment, net, is as follows:

Depreciation expense for the three months ended ~~June 30,~~December 31, 2021 and 2020, was ~~$521~~$814 and ~~$150,~~$451, respectively.

~~Depreciation expense for the nine months ended June 30, 2021 and 2020, was $1,423 and $150, respectively~~

On June 18, 2020, the Company entered into an unsecured note receivable in the amount of $10,000 with a shareholder which bears interest at 6% and matures on August 31, 2020. The maturity of the note receivable in the amount of $10,000 was extended to August 31, 2021 (See Note 7). As of June 30, 2021, interest receivable was $638.

On June 25, 2020, the Company entered into an unsecured note receivable in the amount of $15,000 with a shareholder which bears interest at 6% and matures on August 31, 2020. The maturity of the note receivable in the amount of $15,000 was extended to August 31, 2021 (See Note 7). As of June 30, 2021, interest receivable was $938.

~~Interest income for the three months ended June 30, 2021 and 2020 was $395 and $0, respectively.~~

~~Interest income for the nine months ended June 30, 2021 and 2020 was $1,167 and $0, respectively.~~

On July 15, 2021, a shareholder returned 875,000 shares of Company's common stock to the Company in exchange for the two notes receivable in the total sum of $25,000 and $1,576 in interest receivable (See Notes 7 and 11).

As of June 30, 2021 and September 30, 2020, the Company had unsecured notes payable to stockholders totaling $0 and $48,447, respectively. One note with a principal balance of $17,588 was due on December 31, 2019. The maturity of the note payable in the amount of $17,588 was extended to August 31, 2020 and was paid in full including $8,002 in accrued interest.

On September 30, 2019, the note holder, who is a shareholder and director, converted $65,000 of a note payable and $10,279 of accrued interest into an installment promissory note with a principal balance of $75,279. The note is due on September 30, 2021 and bears an interest rate of 8%. This note requires a monthly payment of $3,405 for the next 24 months. As of September 30, 2020 the balance due was $48,447. As of June 30, 2021, the note balance was paid in full.

~~Interest expense on the notes payable to stockholders was $0 and $2,116 for the three months ended June 30, 2021 and 2020, respectively.~~

~~Interest expense on the notes payable to stockholders was $2,040 and $7,201 for the nine months ended June 30, 2021 and 2020, respectively.~~

During the year ended September 30, 2020, the Company owed $16,262 to two officers, of which $7,262 is included in liabilities from discontinued operations. The loan is non-interest bearing and payable on demand. As of September 30, 2020, the loan balance of $9,000 was paid in full and $7,262 included in liabilities from discontinued operations was deconsolidated as of February 14, 2020 (See Notes 7 and 9).

On June 10, 2020, the Company, was granted a loan (the "Loan") from Bank of America, N.A., in the aggregate amount of $106,727, pursuant to the Paycheck Protection Program (the "PPP") under Division A, Title I of the CARES Act, which was enacted March 27, 2020.

The Loan, which was in the form of a Note dated on or about June 10, 2020 issued by the Borrower, matures on or about June 10, 2025 and bears interest at an approximate rate of 1% per annum. The Note may be prepaid by the Borrower at any time prior to maturity with no prepayment penalties. Funds from the Loan may only be used for payroll costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations incurred before February 15, 2020. The Company intends to use the entire Loan amount for qualifying expenses. Under the terms of the PPP, certain amounts of the Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. On July 20, 2021, the loan was 100% forgiven by the SBA. As a result, the Company will record a gain on debt forgiveness t of PPP loan in the amount of $106,727 in the fourth quarter of 2021. (See Note 11).

~~On December 2, 2019, the Company issued a promissory note in the amount of $50,000. The loan balance of $50,000 and interest of $732 was paid in full at maturity on February 29, 2020.~~

In October 2019, the Company acquired the software platform from Collabria LLC, a related party. In exchange for these assets the Company issued 12,000,000 shares of Common stock valued at the historical cost of the asset of $0 (See Notes 2 and 7).

As of ~~June 30,~~December 31, 2021 and September 30, ~~2020,~~2021, the cumulative arrearage of undeclared dividends for Series A Preferred stock totaled ~~$113,655~~$134,342 and ~~$83,071,~~$123,998, respectively.

~~The~~Through December 1, 2021, the Company ~~leases~~leased its office space from VoiceInterop the Company's former wholly owned subsidiary and now 96% owned by our shareholders for approximately $1,400 per month. On February 14, 2020, VoiceInterop was deconsolidated and is no longer our subsidiary. Rent expense incurred during the three months ended ~~June 30, 2021 and June 30, 2020 was $4,473, and $4,905, respectively. Rent expense incurred during the nine months ended June 30,~~December 31, 2021 and 2020 was ~~$13,428~~$5,886 and ~~$27,059,~~$4,473, respectively (See Note ~~8).~~

~~In October 2019, the Company acquired a software platform from Collabria LLC. In exchange for this asset, the Company issued 12,000,000 shares of Common stock valued at $0 (See Notes 2 and~~ 6).

On September 30, 2019, the note holder, who is a shareholder and director, converted $65,000 of note payable and $10,279 of accrued interest into an installment promissory note. The note is due on September 30, 2021 and bears an interest rate of 8%. The note requires a monthly payment of $3,405 for the next 24 months. As September 30, 2020, the balance due was $48,447. As of June 30, 2021, the note balance was paid in full (See Note 5).

As of ~~June 30,~~December 31, 2021, the Company advanced ~~$20,968~~$51,187 to VoiceInterop, the Company's former wholly owned subsidiary and now 96% owned by our shareholders. The amount is included in due from related party on the consolidated balance sheet. The amount is due on demand and bears interest at 5% effective June 30, 2021.

~~The~~Through December 1, 2021, the Company leases approximately 1,700 square feet for its principal offices in Boca Raton, Florida at a monthly rental of approximately $3,500, which expired in November 2018. VoiceInterop executed a new 3-year lease with its current landlord on December 1, 2018 for the same office space. The lease provided one month free as a concession. The monthly rent is $3,630 and provides for annual increases of base rent of 4% until the expiration date. The lease expires on November 30, 2021. Upon the deconsolidation, the Company subleases the office space from VoiceInterop at approximately $1,400 per month.

On December 1, 2021, the Company signed a one year lease approximately 2,000 square feet for our principal offices in Boca Raton, Florida. The monthly rent is $2,200. The lease expires on November 30, 2022.

Rent expense incurred during the three months ended ~~June 30,~~December 31, 2021 and 2020 was ~~$4,473~~$5,886 and ~~$4,905, respectively.~~

~~Rent expense incurred during the nine months ended June 30, 2021 and 2020 was $13,428 and $27,059,~~$4,473, respectively.

NoFor the three months ended December 31, 2021, one customer accounted for 14% of the Company's revenues .

For the three months ended December 31, 2020, one customer accounted for 11% of the Company's revenues.

As of December 31, 2021, no customer accounted for more than 10% of the Company's ~~revenue for the nine months ended June~~total outstanding accounts receivable.

As of September 30, ~~2021. No~~2021, no customer accounted for more than 10% of the Company's ~~revenue for the nine months ended June 30, 2020. As of June 30, 2021, one customer accounted for approximately 17% of the Company's~~ total outstanding accounts receivable. ~~As of September 30, 2020, two customers accounted for approximately 29% of the Company's total outstanding accounts receivable with each customer representing 18% and 11%, respectively.~~

During 2014, the Company developed a proprietary interoperable communications solution. The Company relies on no major supplier for its products and services. The Company has contracted with a single local manufacturing facility to provide completed circuit boards used in the assembly of its IP gateway devices. Interruption to the manufacturing source presents additional risk to the Company. The Company believes that other commercial facilities exist at competitive rates to match the resources and capabilities of its existing manufacturing source.

In December 2016, the Board of Directors accepted the resignation of Larry M. Reid as Chief Executive Officer of the corporation and appointed Mr. Reid as Chief Financial Officer. The Board also appointed Michael M. Moore as Chief Executive Officer.

Under the terms of an employment agreement effective on November 28, 2016, Mr. Moore as CEO receives an annual salary of $200,000. The term of agreement is for a one-year period beginning on the effective date and shall automatically renew and continue in effect for additional one-year periods.

Under the terms of an employment agreement effective on March 13, 2015, Mr. Reid as CFO receives an annual salary of $96,000. The term of agreement is for a one-year period beginning on the effective date and shall automatically renew and continue in effect for additional one-year periods. Effective October 1, 2021, the annual compensation increased to $104,000.

On May 5, 2017, the Company entered into an Exclusive Licensing Agreement with Sublicensing Terms (the "Agreement") with the University of Southern Florida Research Foundation, Inc. ("USFRF") relating to an exclusive license of certain patent rights in connection with one of USFRF's U.S. Patent Applications. Both parties recognize that the research and development work provided by the Company was sufficient for USFRF to enter into the Agreement with the Company.

The Agreement is effective April 25, 2017 and continues until the later of the date that no Licensed Patent remains a pending application or an enforceable patent or the date on which the Licensee's obligation to pay royalties expires.

The Company paid USFRF a License Issue Fee of ~~$3,000~~$6,000 and ~~$7,253~~$953 as reimbursement of expenses associated with the filing of the Licensed Patent. The company agreed to pay USFRF a royalty of 3% for sales of all Licensed Products and Licensed Processes and agreed to pay USFRF minimum royalty payments as follows:

In the event the Company proposes to sell any Equity Securities, then USFRF will have the right to purchase 5% of the securities issued in such offering on the same terms and conditions are offered to other purchasers in such financing. As of ~~September 30,~~December 31, 2021 and 2020, the Company has recorded $2,000 and $2,953 for the minimum royalty for the fiscal year ended ~~2020.~~

~~In March 2018, the Company approved the spin-off VoiceInterop into a separate company under a Form S-1 registration to be filed with the United States Securities and Exchange Commission.~~

On April 23, 2018, the board of Directors declared a stock dividend for certain shareholders of the Company. The Company distributed to its shareholders owning Common Stock and Series C and D Preferred stock an aggregate of 17,819,827 shares of shares of Common Stock of VoiceInterop. Each common shareholder received .075 shares of VoiceInterop common stock for each one (1) share of Cleartronic stock held by the shareholder, and each shareholder of Series C and D Preferred stock received 0.375 shares of VoiceInterop common stock for each one (1) share of Series C or Series D Preferred stock held by the shareholder.

On November 14, 2019, VoiceInterop, Inc.'s, S-1 Registration Statement was declared effective by Securities and Exchange Commission. On February 14, 2020, the distribution of shares was approved by FINRA and completed and deconsolidation was completed. The Company recorded $225,316 to additional paid in capital for deconsolidation of VoiceInterop, Inc. and discontinued operations are not presented.

~~The following table illustrates the reporting of the discontinued operations included in the Statements of Operations for the period from October 1, 2019 to February 14, 2020.~~-11-

~~On February 14, 2020, the Company recorded $225,316 to additional paid in capital for deconsolidation of VoiceInterop, Inc. and discontinued operations are not presented.~~

During the year ended September 30, 2020, the Company owed $16,262 to two officers, of which $7,262 is included in liabilities from discontinued operations. The loan is non-interest bearing and payable on demand. As of September 30, 2020, the loan balance of $9,000 was paid in full and $7,626 included in liabilities from discontinued operations was deconsolidated as of February 14, 2020.

The Company leases its office space from VoiceInterop the Company's former wholly owned subsidiary and now 96% owned by our shareholders. On February 14, 2020, VoiceInterop was deconsolidated and is no longer our subsidiary. Rent expense paid to the related party was $13,428 and $27,059 for the nine months ended June 30, 2021 and 2020, respectively.

~~As of February 14, 2020, the operating lease liabilities of $66,114 and lease assets of $62,226 were included in liabilities from discontinued operations and were deconsolidated.~~

The Company is restating its Condensed Consolidated Unaudited Statement of Operations, Condensed Consolidated Unaudited Statement of Cash Flow, and Condensed Consolidated Unaudited Statement of Changes in Stockholders' Deficit for the three and nine months ended June 30, 2020. The restatement shows the previously filed financial statements, the restatement adjustments and as restated columns for the Condensed Consolidated Unaudited Statement of Operations, Condensed Consolidated Unaudited Statement of Cash Flow, and Condensed Consolidated Unaudited Statement of Changes in Stockholders' Deficit for the three and nine months ended June 30, 2020. The restatement of our financial statements in this Form 10-Q reflects the correction of certain identified miscalculations related to the valuation of the ReadyMed software platform acquired in October 2019.

~~The table below present the impact of the restatement in the Company's condensed consolidated unaudited financial statements:~~

On July 20, 2021, the loan was 100% forgiven by the SBA. As a result, the Company will record a gain on debt forgiveness of the PPP loan in the amount of $106,727 in the fourth quarter of 2021 (See Note 5).

~~On July 8, 2021, a holder of Series C preferred stock, converted 275,000 shares of Series C Convertible Preferred Stock into 1,375,000 shares of Common Stock.~~

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The information set forth in this Management’s Discussion and Analysis contains certain “forward-looking statements,” including, among others (i) expected changes in our revenues and profitability, (ii) prospective business opportunities, and (iii) our strategy for financing our business. Forward-looking statements are statements other than historical information or statements of current condition. Some forward-looking statements may be identified by use of terms such as “believes,” “anticipates,” “intends,” or “expects.” These forward-looking statements relate to our plans, objectives, and expectations for future operations. Although we believe that our expectations with respect to the forward-looking statements are based upon reasonable assumptions within the bounds of our knowledge of our business and operations, in light of the risks and uncertainties inherent in all future projections, the inclusion of forward-looking statements in this prospectus should not be regarded as a representation that our objectives or plans will be achieved. In light of the risks and uncertainties, there can be no assurance that actual results, performance, or achievements will not differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements. The foregoing review of important factors should not be construed as exhaustive. We undertake no obligation to release publicly the results of any future revisions we may make to forward-looking statements to reflect events or circumstances after the date of this prospectus or to reflect the occurrence of unanticipated events.

Cleartronic, Inc. (the “Company”) was incorporated in Florida on November 15, 1999. All current operations are conducted through the Company’s wholly owned subsidiary, ReadyOp Communications, Inc. (“ReadyOp”), a Florida corporation incorporated on September 15, 2014.ReadyOp facilitates the marketing and sales of subscriptions to the ReadyOp^™ and ReadyMed^™ platform and the AudioMate IP gateways discussed below.

ReadyOp is a proprietary, innovative web-based planning, communications and operations platform for efficiently and effectively planning, managing, communicating, and directing operations and emergency response. ReadyOp is used by local, state and federal government agencies, corporations, school districts, utilities, hospitals and others to manage and report daily operations as well as the ability to handle incidents and emergency situations. ReadyOp is offered as a software as a service (SAAS) program on an annual contract basis although an increasing number of clients have requested multi-year agreements.

In March 2018, the Company approved the spin-off of VoiceInterop, Inc. (“Voiceinterop”), one of the Company’s wholly-owned subsidiaries, into a separate company under a Form S-1 registration filed with the United States Securities and Exchange Commission. Therefore, the Company has presented the operations of this subsidiary as discontinued operations.

In October 2019, the Company acquired the ReadyMed software platform from Collabria LLC. ReadyMed is a web-based secure communications platform initially designed for the healthcare industry. This includes hospitals, clinics, doctor’s offices, health insurance companies, workers compensation insurance companies and many other segments of the healthcare industry. The platform provides caregivers with patient tracking capability and allows physicians and other healthcare entities to track patient progress after medical treatment and/or release from hospital care. The software also enables monitoring and reporting of patients in medium and long-term care. Additionally, the platform provides secure communications capabilities and record keeping to track the healing process of patients, record their recovery and monitor their medications. ReadyMed has proved beneficial for multiple clients in the healthcare industry due to the impact of the COVID-19 pandemic. The Company offers both the ReadyOp and ReadyMed capabilities to clients and usually refers to the platform as ReadyOp to avoid confusion in the marketplace of two products.

FOR THE THREE MONTHS ENDED ~~JUNE 30,~~DECEMBER 31, 2021 COMPARED TO THE THREE MONTHS ENDED ~~JUNE 30,~~DECEMBER 31, 2020

Revenues increased ~~10.29%~~36.15% to ~~$413,868~~$519,185 for the three months ended ~~June 30,~~December 31, 2021 as compared to ~~$375,250~~$381,338 for the three months ended ~~June 30,~~December 31, 2020. The primary reason for the increase in revenue was due to an increase subscriptions to the ReadyOp platform increased from ~~$349,570~~$369,740 in 2020 to ~~$402,918~~$449,500 in 2021, or approximately ~~15.55%~~21.57% and slightly offset by a decrease in sales of ReadyOp hardware products from ~~$20,880~~$5,800 in 2020 to ~~$8,550~~$2,000 in 2021. ~~Installation revenue~~Consulting fees and related income ~~decreased~~increased from ~~$4,800~~$5,798 in 2020 to ~~$2,400~~$67,685 in 2021 due to ~~less~~more training activity and sale of thermal scanners in the three months ended ~~June 30,~~December 31, 2021.

Cost of revenues was ~~$64,777~~$92,236 for the three months ended ~~June 30,~~December 31, 2021 as compared to ~~$73,142~~$60,334 for the three months ended ~~June 30,~~December 31, 2020.Gross profits were ~~$349,091~~$426,949 and ~~$302,108~~$321,004 for the three months ended ~~June 30,~~December 31, 2021 and ~~June 30,~~December 31, 2020, respectively. Gross profit margins ~~increased~~decreased from ~~81% for the three months ended June 30, 2020 to~~ 84% for the three months ended ~~June 30,~~December 31, 2020 to 82% for the three months ended December 31, 2021. The ~~increase~~decrease in gross profit was primarily due to higher ~~margins~~costs associated with sales of subscriptions to the ReadyOp platform.

Operating expenses increased ~~28.21%~~28.85% to ~~$302,542~~$366,534 for the three months ended ~~June 30,~~December 31, 2021 compared to ~~$235,976~~$284,465 for the three months ended ~~June 30,~~December 31, 2020. The increase was primarily due increases in selling, administrative expense, research and development and ~~amortization~~depreciation expense. For the three months ended ~~June 30,~~December 31, 2021, selling expenses were ~~$147,483~~$188,545 compared to ~~$116,624~~$160,859 for the three months ended ~~June 30,~~December 31, 2020. This increase was primarily due to ~~a decrease in advertising expense and offset by~~ an increase in advertising, travel and commissions ~~and travel expenses.~~expense. General and administrative expenses increased by ~~$15,243~~$35,549 or ~~16.75%~~38.49% as a result of increase in general business expenses. ~~Amortization and depreciation~~Depreciation expense increased by ~~247.73%~~80.49% from ~~$150~~$451 for the three months ended ~~June 30,~~December 31, 2020 to ~~$521~~$814 for the three months ended ~~June 30,~~December 31, 2021 due to the ~~depreciation of~~additional computer ~~equipment.~~equipment purchased during the period. Research and development expenses were ~~$28,192~~$30,789 for the three months ended ~~June 30,~~December 31, 2020 as compared to ~~$48,285~~$49,260 for the three months ended ~~June 30,~~December 31, 2021. The increase was primarily due to expenses associated with the development of a new technology associated with a patent owned by the University of South Florida Research ~~Foundation.~~Foundation and an increase in salary. The Company has obtained the exclusive license to develop and market the technology associated with the patent.

The Company's other ~~income increased~~expenses decreased to ~~$18,694~~$168 from other expense of ~~($2,116)~~$1,115 during the three months ended ~~June 30,~~December 31, 2021 as compared to the three months ended ~~June 30,~~December 31, 2020. The primary reason for this ~~increase~~decrease was ~~the settlement of certain accounts payable, with an offset~~a decrease in interest ~~expense.~~expense as the notes payable were fully repaid in the prior year.

The ~~Company's~~Company’s income from operations was ~~$65,243~~$60,247 during the three months ended ~~June 30,~~December 31, 2021 as compared to ~~$64,016~~$35,424 for the three months ended ~~June 30,~~December 31, 2020. The increase was primarily due to an increase in subscription of ReadyOp software in 2021 and ~~gain on settlement of old accounts payable and~~ an offset by an increase in operating expenses.

Net income attributable to common stockholders was ~~$55,124~~$49,903 for the three months ended ~~June 30,~~December 31, 2021 as compared to a net income of ~~$53,785~~$25,078 for the three months ended ~~June 30,~~December 31, 2020. The increase was primarily due to increased subscriptions to the ReadyOp platform.

~~FOR THE NINE MONTHS ENDED JUNE 30, 2021 COMPARED TO THE NINE MONTHS ENDED JUNE 30, 2020~~LIQUIDITY AND CAPITAL RESOURCES

Revenues from operations were $1,217,928 for the nine months ended June 30, 2021 as compared to $1,319,152 for the nine months ended June 30, 2020. Sales of ReadyOp ACE IP gateways decreased 91% from $307,050 to $28,950 in the nine months ended June 30, 2020 and 2021, respectively. This decrease was primarily due to one client purchasing $212,000 of ReadyOp ACE IP gateways in 2020. Subscriptions of ReadyOp software increased 20% from $957,751 to $1,157,784 in the nine- month period ended June 30, 2020 and 2021, respectively. Consulting fees and related income decreased from $49,351 in 2020 to $26,394 in 2021 due to less training activity due to COVID in the nine months ended June 30, 2021.

Cost of revenues was $198,580 for the nine months ended June 30, 2021, as compared to $322,564 for the nine months ended June 30, 2020. This decrease was primarily due to higher costs associated with the large ReadyOp ACE IP gateway sale in 2020. Gross profits were $1,019,348 and $996,588 for the nine months ended June 30, 2021 and 2020, respectively. Despite the decrease in revenues, gross profit margins increased to 84% from 76% for the nine months ended June 30, 2021 and 2020, respectively. The increase was primarily due to the lower profit margins from sales of ReadyOp ACE IP gateways as compared to higher margins generated from subscriptions of ReadyOp software.

~~Operating expenses increased 7.22 % to approximately $864,985 for the nine months ended June 30, 2021 compared to $806,774 for the nine months ended June 30, 2020.~~ For the nine months ended June 30, 2021, selling expenses were $417,614 compared to $388,895 for the nine months ended June 30, 2020. This increase is primarily due to an increase in travel expenses and slightly offset by the decrease in advertising expenses. General and administrative expenses increased by $35,478 or 12.16%. This increase was primarily due to increased payroll expense offset a decrease in legal expense. Amortization and depreciation expense decreased by 87.10% from $11,028 for the three months ended June 30, 2020 to $1,423 for the nine months ended June 30, 2021. Research and development expenses were $114,993 for the nine months ended June 30, 2020 as compared to $118,612 for the nine months ended June 30, 2021. The increase was primarily due to increase in consulting expense and expenses associated with the development of a new technology associated with a patent owned by the University of South Florida Research Foundation. The Company has obtained the exclusive license to develop and market the technology associated with the patent.

The Company's other income increased to $17,426 from other expense of ($7,201) during the nine months ended June 30, 2021 as compared to the nine months ended June 30, 2020. The primary reason for this increase was the settlement of certain accounts payable, with an offset in interest expense.

The Company's income from continuing operations decreased to $171,789 from $182,613 during the nine months ended June 30, 2021 as compared to the nine months ended June 30, 2020. The primary reason for this decrease was the decrease in revenue generated by a single large sale of the ReadyOp ACE IP gateways in 2020.

There was no loss from discontinued operations during the nine months ended June 30, 2021 compared to a loss of $64,936 for the nine months ended June 30, 2020. The reason for the decrease was the deconsolidation of VoiceInterop from the Company in February 2020.

Net income attributable to common stockholders was $141,205 and $86,871 for the nine months ended June 30, 2021 and 2020, respectively. The increase was primarily due to the lower profit margins from sales of ReadyOp ACE IP gateways generated in 2020 as compared to higher profit margins generated from subscription of ReadyOp software in 2021.

~~For the nine months ended June 30,~~December 31, 2021, net cash ~~provided by~~used in operations of ~~$276,634~~$17,849 was the result of a net income of ~~$171,789, depreciation expense of $1,423, provision of bad debt of $6,000,~~$60,247, a decrease in accounts receivable of ~~$9,470~~$46,867, and an increase of accounts payable of $26,406. These were offset by an increase in inventory of $6,588, a decrease in prepaid expenses of $33,364, and a ~~slight~~decrease in deferred revenue of $172,573.

For the three months ended December 31, 2020, net cash used in operations of $1,927 was the result of a net income of $35,424, provision of bad debt of $16,500, a decrease in accounts receivable of $40,900, and a decrease in inventory of ~~$1,309.~~$594. These were offset by an increase in prepaid expenses of ~~$49,152,~~$14,404, a decrease of accounts payable of ~~$36,729, a decrease in accrued expenses of $43,457~~$14,870, and ~~an increase in deferred revenue of $241,959.~~

For the nine months ended June 30, 2020, net cash used in operations of $38,627 was the result of a net income of $117,677, depreciation expense of $10,878, depreciation expense of $150, a recovery of bad debt of $13,335, a decrease in accounts receivable of $49,176, a decrease in inventory of $13,042, an increase in prepaid expenses of $15,000, a decrease in other assets of $8,656 and a decrease in assets from discontinued operations of $9,929. These were offset by a decrease of accounts payable of $28,019, a decrease in accrued expenses of $68,756, a decrease in deferred revenue of ~~$142,091.~~$70,540.

Net cash used in investing activities was ~~$2,068~~$5,058 for the ~~nine~~three months ended ~~June 30,~~December 31, 2021, which was a purchase of fixed assets compared to net cash used in investing activities was $34,029 for the nine months ended June 30, 2020, which was attributable to the issuance of note receivable of $25,000 and purchase of fixed assets of $9,029.assets.

Net cash used in financing activities was ~~$48,447~~$15,615 for the ~~nine~~three months ended ~~June 30, 2021~~December 31, 2020 which was a repayment of a stockholder note payable of $48,447. Net cash provided by financing activities was $107,806 for the nine months June 30, 2020, which was attributable to proceeds from notes payable stockholders and repayment of notes payable to stockholders.$15,615.

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Estimates” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended September 30, ~~2020~~2021 for information regarding our critical accounting estimates.

An evaluation was conducted by the registrant’s Chief Executive Officer (CEO) and Chief Financial Officer (CFO) of the effectiveness of the design and operation of the registrant’s disclosure controls and procedures as of ~~June 30,~~December 31, 2021. Based on that evaluation, the CEO and CFO concluded that the registrant’s controls and procedures were effective as of such date to ensure that information required to be disclosed in the reports that the registrant files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms.

There was no change in the registrant’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a–15 or Rule 15d–15 under the Securities Exchange Act of 1934 that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Cleartronic is not engaged in any litigation at the present time and management is unaware of any claims or complaints that could result in future litigation. Management will seek to minimize disputes with the Company’s customers but recognizes the inevitability of legal action in today’s business environment as an unfortunate price of conducting business.

~~On July 8, 2021, a holder of Series C preferred stock, converted 275,000 shares of Series C Convertible Preferred Stock into 1,375,000 shares of Common Stock.~~

The registrant claimed exemption from the registration provisions of the Securities Act of 1933 with respect to the securities pursuant to Section 4(2) thereof in as much as no public offering was involved. The shares were not offered or sold by means of: (i) any advertisement, article, notice or other communication published in any newspaper, magazine or similar medium, or broadcast over television or radio, (ii) any seminar or meeting whose attendees have been invited by any general solicitation or general advertising, or (iii) any other form of general solicitation or advertising and the purchases were made for investment and not with a view to distribution. Each of the purchasers was, at the time of the purchaser’s respective purchase, an accredited investor, as that term is defined in Regulation D under the Securities Act of 1933 and had access to sufficient information concerning the registrant and the offering.

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	June 30, 2021 (Unaudited)		September 30, 2020		December 31, 2021		September 30, 2021
Office Equipment	$	11,097	$	9,029	$	19,180	$	14,122
Less: Accumulated Depreciation		(2,025)		(602)		(3,545)		(2,731)
Total Property and Equipment, net	$	9,072	$	8,427	$	15,635	$	11,391

	Payment	Year
	$ 1,000	2019
	$ 4,000	2020
	$ 8,000	2021

	For the period From
	October 1, 2019 to
	February 14, 2020
	(Unaudited)

Revenue	$	27,698
Cost of Revenue		12,383
Gross Profit		15,315

Operating Expenses:
Selling expenses		3,862
Administrative expenses		24,151
Professional Fees		50,007
Total Operating Expenses		78,020

Loss from operations		(62,705)

Other Income (Expense)
Other Income		5,750
Interest and other expense		(7,981)
Total Other Income (Expense)		(2,231)

Loss Before Income Taxes		(64,936)
Provision for Income Taxes		0-
Loss from discontinued operations	$	(64,936)

	February 14,
	2020
	(Unaudited)
Current assets:
Cash	$	2,279
Accounts Receivable		4,780
Operating lease asset, net		62,226

Total Assets from discontinued operations	$	69,285

Current liabilities:
Accounts payable and accrued expenses	$	92,236
Operating lease liability, current		33,941
Deferred revenue, current portion		17,357
Deferred rent, current portion		0-
Installment loan, net, current portion		31,269
Due to related parties		11,362
Due to unrelated parties		68,000
Total Current liabilities from discontinued operations		254,165

Long Term Liabilities
Deferred revenue, net of current		8,263
Operating lease liability, net of current		32,173
Total Long term liabilities from discontinued operations		40,436

Total Liabilities from discontinued operations	$	294,601

	June 30, 2020 (Unaudited)
	As previously reported		Adjustment		As Restated
Statement of Changes in Stockholders’ Deficit
Additional Paid in Capital	$	15,866,718	$	(600,000)	$	15,266,718
Accumulated Deficit	$	(16,241,515)	$	138,082	$	(16,103,433)
Total Stockholders’ Deficit	$	(372,470)	$	(461,918)	$	(834,388)
Total Liabilities and Stockholders’ Deficit	$	758,976	$	(461,918)	$	297,058

	For nine months		For nine months
	ended		ended
	June 30, 2021		June 30, 2020
			(Restated)
NET INCOME	$	171,789	$	117,677
Cash Flows From Operating Activities
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization of ReadyOp software platform		0-		10,878
Depreciation expense		1,423		150
Gain on the settlement and reversal of accounts payable		(18,430)		0-
Provision (Recovery) for bad debt		6,000		(13,335)
(Increase) decrease in assets:
Accounts receivable		9,470		49,176
Inventory		1,309		13,042
Prepaid expenses and other current assets		(49,152)		15,000
Due from related party		(7,548)		(13,420)
Other assets		0-		8,656
Assets from discontinued operations		0-		9,929
Increase (decrease) in liabilities:
Accounts payable		(36,729)		(28,019)
Accrued expenses		(43,457)		(68,756)
Deferred revenue		241,959		(142,091)
Liabilities from discontinued operations		0-		2,486
Net Cash Provided By (Used In) Operating Activities		276,634		(38,627)

Cash Flows From Investing Activities
Purchase of fixed assets		(2,068)		(9,029)
Issuance of note receivable		0-		(25,000)
Net Cash Used in Investing Activities		(2,068)		(34,029)

Cash Flows From Financing Activities
Proceeds from issuance of installment loan-discontinued operations		0-		43,600
Repayment of installment loan - discontinued operations		0-		(33,151)
Proceeds from notes payable		0-		156,727
Repayment of notes payable		0-		(50,000)
Repayment of notes payable stockholders		(48,447)		(20,732)
Proceeds from loan payable - related party - discontinued operations		0-		11,362
Net Cash (Used in) Provided by Financing Activities		(48,447)		107,806

Net increase in cash		226,119		35,150

Cash at beginning of period		75,983		27,698

Cash at end of period	$	302,102	$	62,848

SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	$	2,754	$	4,433
Cash paid for taxes	$	0-	$	0-

Supplemental disclosure of non-cash investing and financing activities:
Operating lease asset obtained for operating lease liability from discontinued operations	$	0-	$	75,078
Deconsolidation of Voiceinterop, Inc.	$	-	$	225,316

	For the three months ended June 30, 2021		For the three months ended June 30, 2020		For the Three Months ended December 31, 2021		For the Three Months ended December 31, 2020
Net income attributable to common stockholders for the period	$	55,124	$	53,785	$	49,903	$	25,078

Weighted average number of shares outstanding		226,902,935		223,994,635		228,578,995		223,994,635

Basic earnings per share	$	0.00	$	0.00	$	0.00	$	0.00

	For the nine months ended June 30, 2021		For the nine months ended June 30, 2020
Net income attributable to common stockholders for the period	$	141,205	$	86,871

Weighted average number of shares outstanding		224,997,827		222,355,291

Basic earnings per share	$	0.00	$	0.00

	June 30, 2021		September 30,
	(Unaudited)		2020
Note payable stockholder	$	0-	$	48,447
Less: current portion		0-		(48,447)
Long-term note payable	$	0-	$	0-

	For the Nine Months ended June 30, 2020 (Unaudited)
	As previously reported		Adjustment			As Restated
Statement of Operations
Administrative expense	$	292,008	$	(150)	*	$	291,858
Amortization and depreciation	$	148,960	$	(137,932)	*	$	11,028
Total Operating Expense	$	944,856	$	(138,082)		$	806,774
Income from continuing operations before income taxes	$	44,531	$	138,082		$	182,613
Net Income/(Loss)	$	(20,405)	$	138,082		$	117,677
Net Income/(Loss) attributable to common stockholders	$	(51,211)	$	138,082		$	86,871

Income from continuing operations	$	0.00	$	0.00		$	0.00
Net Income/(Loss) per common share - basic and diluted	$	(0.00)	$	0.00		$	0.00


Exhibit Number	Description
3.1	Articles of Incorporation (1)
3.2	Articles of Amendment to Articles of Incorporation, filed March 12, 2001. (1)
3.3	Articles of Amendment to Articles of Incorporation, filed October 4, 2004. (1)
3.4	Articles of Amendment to Articles of Incorporation, filed March 31, 2005. (1)
3.5	Articles of Amendment to Articles of Incorporation, filed May 9, 2008. (2)
3.6	Articles of Amendment to Articles of Incorporation, filed June 28, 2010. (3)
3.7	Articles of Amendment to Articles of Incorporation, filed May 6, 2011. (4)
3.8	Bylaws. (1)
3.9	Articles of Amendment to the Articles of Incorporation, filed April 19, 2012 (5)
3.10	Articles of Amendment to the Articles of Incorporation, filed on September 7, 2012 (6)
3.11	Articles of Amendment to the Articles of Incorporation, filed on September 19, 2012 (7)
3.12	Articles of Amendment to the Articles of Incorporation, filed on October 5, 2012 (8)
31.1	Section 302 Certification by the Corporation’s Principal Executive Officer *
31.2	Section 302 Certification by the Corporation’s Principal Financial Officer *
32.1	Section 906 Certification by the Corporation’s Principal Executive Officer and Principal Financial Officer *
101.INS	XBRL Instance Document (XBRL tags are embedded within the Inline XBRL document)*
101.SCH	Inline XBRL Taxonomy Extension Schema Document*
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document*
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.*
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document*
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document*
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101*
	Filed herewith.*

(1)	Filed as an exhibit to the registrant’s registration statement on Form SB-2 filed with the Securities and Exchange Commission on July 3, 2006 and hereby incorporated by reference.
(2)	Filed as an exhibit to Amendment No. 6 to the registrant’s registration statement on Form S-1 filed with the Securities and Exchange Commission on May 28, 2008, and hereby incorporated by reference
(3)	Filed as an exhibit to the registrant’s quarterly report on Form 10-Q filed with the Securities and Exchange Commission on February 14, 2011 and hereby incorporated by reference.
(4)	Filed as an exhibit to the registrant’s current report on Form 8-K filed with the Securities and Exchange Commission on May 6, 2011 and hereby incorporated by reference.
(5)	Filed as an exhibit to the registrant’s quarterly report on Form 10-Q filed with the Securities and Exchange Commission on May 15, 2012 and hereby incorporated by reference.

	~~CLEARTRONIC, INC.~~

	CLEARTRONIC, INC.
~~August 16, 2021~~
	~~By:~~	~~/s/ Michael M. Moore~~
		~~Michael M. Moore~~
		~~Principal Executive Officer~~

	~~By:~~	~~/s/ Larry M. Reid~~
		~~Larry M. Reid~~
		~~Principal Financial Officer and~~
		~~Chief Accounting Officer~~