Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2015 | Feb. 22, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | CIPHERLOC CORPORATION | |
Entity Central Index Key | 1,022,505 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 4,494,241 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,015 |
Balance Sheets (Unaudited)
Balance Sheets (Unaudited) - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 |
CURRENT ASSETS: | ||
Cash | $ 1,131,206 | $ 1,993,406 |
Assets attributable to discontinued operations | $ 3,232 | |
Short-term notes receivable | $ 50,000 | |
Total Current Assets | 1,181,206 | $ 1,996,638 |
Long-term notes receivable | 200,000 | |
Deposits with others | 10,449 | |
TOTAL ASSETS | 1,391,655 | $ 1,996,638 |
Liabilities | ||
Accounts payable and accrued liabilities | 405,779 | $ 1,100,945 |
Due to related party | 1,205 | |
Liabilities attributable to discontinued operations | 18 | $ 18 |
Deferred Revenue | 691,406 | 1,125,000 |
Total Liabilities | 1,098,408 | 2,225,963 |
STOCKHOLDERS' EQUITY (DEFICIT): | ||
Series A Convertible Preferred Stock, $0.01 par value, 10,000,000 shares authorized; 10,000,000 outstanding As of December 31, 2015 and September 30, 2015 | 100,000 | 100,000 |
Common Stock, $0.01 par value, 650,000,000 shares authorized; 4,494,421 issued and outstanding as of December 31, 2015 and 4,356,741 issued and outstanding as of September 30, 2015 | 44,942 | 43,567 |
Other Equity | (50,000) | (50,000) |
Additional Paid-In Capital | 43,107,060 | 42,815,934 |
Accumulated deficit | (42,908,755) | (43,138,826) |
Total stockholders' equity (deficit) | 293,247 | (229,325) |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $ 1,391,655 | $ 1,996,638 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Sep. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par Value | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Outstandng | 10,000,000 | 10,000,000 |
Common Stock, Par Value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 650,000,000 | 650,000,000 |
Common Stock, Shares Issued | 4,494,421 | 4,356,741 |
Common Stock, Shares Outstanding | 4,494,421 | 4,356,741 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | ||
Revenue | $ 433,594 | |
Cost of Revenues | ||
Gross Profit | $ 433,594 | |
Operating Expenses: | ||
General and administrative | 326,267 | $ 176,325 |
Research and development | 127,150 | 17,431 |
Total Operating Expenses | 453,417 | 193,756 |
Operating Loss | (19,823) | (193,756) |
Other Expenses | ||
Interest expense | (106) | (1,024) |
(Loss) from Continuing Operations | (19,929) | (194,780) |
Gain (Loss) from Discontinued Operations | 250,000 | (68,353) |
Net Income (Loss) | $ 230,071 | $ (263,133) |
Net Income (Loss) per Common Share - Basic and diluted: | ||
Continuing operations | $ 0 | $ (0.09) |
Discontinued operations | 0.06 | 0 |
Total | $ 0.05 | $ (0.09) |
Weighted Average Number of Common Shares Outstanding Basic and diluted | 4,476,659 | 2,833,265 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 230,071 | $ (263,133) |
(Gain) Loss from discontinued operations | (250,000) | 68,353 |
Net loss from continuing operations | (19,929) | $ (194,780) |
Adjustments to reconcile net loss from continuing operations to net cash (used in) provided by operating activities: | ||
Stock-based compensation | 27,500 | |
Changes in operating assets and liabilities: | ||
Deferred revenue | (433,594) | |
Accounts payable and accrued liabilities | (695,166) | $ (138,879) |
Net cash (used in) operating activities | (1,121,189) | $ (333,659) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Deposit with others | (10,449) | |
Net cash from investing activities | (10,449) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Advances from officer | $ 1,205 | |
Subscribed stock | $ (4,739) | |
Common stock issued for cash | $ 265,001 | |
Net cash provided by financing activities | 266,206 | $ (4,739) |
CASH FLOWS FROM DISCONTINUED OPERATIONS: | ||
Operating | 3,232 | 1,249 |
Net decrease in cash from discontinued operations | 3,232 | 1,249 |
(DECREASE) INCREASE IN CASH | (862,200) | (337,149) |
CASH, BEGINNING OF YEAR | 1,993,406 | 545,650 |
CASH, END OF YEAR | 1,131,206 | 208,501 |
CASH PAID FOR: | ||
Interest | $ 107 | $ 1,111 |
Taxes | ||
SUPPLEMENTAL DISCLOSURE OF NONCASH OPERATING AND FINANCING ACTIVITIES: | ||
Common stock rescinded for purchase of software | $ (6,000) | |
Cancellation of common stock | $ 150 |
1. DESCRIPTION OF BUSINESS
1. DESCRIPTION OF BUSINESS | 3 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
1. DESCRIPTION OF BUSINESS | NOTE 1- DESCRIPTION OF BUSINESS Cipherloc Corporation (the Company) was incorporated in Texas on June 22, 1953 as American Mortgage Company. On May 16, 1996, the Company changed its name to National Scientific Corporation. On March 15, 2015, the Company changed its name to Cipherloc Corporation. The name change became effective through the Amended Certificate as of March 23, 2015. |
2. BASIS OF PRESENTATION OF INT
2. BASIS OF PRESENTATION OF INTERIM FINANCIAL STATEMENTS | 3 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
2. BASIS OF PRESENTATION OF INTERIM FINANCIAL STATEMENTS | NOTE 2 BASIS OF PRESENTATION OF INTERIM FINANCIAL STATEMENTS The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America. The accompanying interim unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended December 31, 2015 are not necessarily indicative of the results that may be expected for the year ending September 30, 2016. Notes to the unaudited interim financial statements that would substantially duplicate the disclosures contained in the audited financial statements for 2015 have been omitted; this report should be read in conjunction with the audited financial statements and the footnotes thereto for the fiscal year ended September 30, 2015 included within the Companys Form 10-K as filed with the Securities and Exchange Commission. |
3. GOING CONCERN
3. GOING CONCERN | 3 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
3. GOING CONCERN | NOTE 3 - GOING CONCERN The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. However, the Company has incurred losses from operations, has an accumulated deficit at December 31, 2015 of $42,908,755 and needs additional cash to maintain its operations. These factors raise substantial doubt about the Companys ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Companys continued existence is dependent upon managements ability to develop profitable operations, continued contributions from the Companys executive officers to finance its operations and the ability to obtain additional funding sources to explore potential strategic relationships and to provide capital and other resources for the further development and marketing of the Companys products and business. |
4. SUMMARY OF SIGNIFICANT ACCOU
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America. Significant accounting policies are as follows: Reclassifications Certain reclassifications have been made to conform with the current period presentation. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At December 31, 2015 and 2014, cash and cash equivalents include cash on hand and cash in the bank. The Company maintains its cash in accounts held by large, globally recognized banks which, at times, may exceed federally insured limits as guaranteed by the Federal Deposit Insurance Corporation (FDIC). The FDIC insures these deposits up to $250,000. At December 31, 2015, $871,111 of the Companys cash balance was uninsured. The Company has not experienced any losses in such accounts. Long-Lived Assets Long-lived assets are evaluated for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted future cash flows to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value. Fair Value of Financial Instruments The Company's financial instruments consist primarily of cash, accounts payable and accrued expenses, and debt. The carrying amounts of such financial instruments approximate their respective estimated fair value due to the short-term maturities and approximate market interest rates of these instruments. Fair value is focused on an exit price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Within the measurement of fair value, the use of market-based information is prioritized over entity specific information and a three-level hierarchy for fair value measurements is used based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. Concentration of Credit Risk All of the Companys cash and cash equivalents are maintained in regional and national financial institutions. The Company has exposure to credit risk to the extent that its cash and cash equivalents exceed amounts covered by the U.S. federal deposit insurance; however, the Company has not experienced any losses in such accounts. In managements opinion, the capitalization and operating history of the financial institutions are such that the likelihood of material loss is remote. Recent Accounting Announcements In May 2014, the FASB issued new accounting guidance regarding revenue recognition under GAAP. This new guidance will supersede nearly all existing revenue recognition guidance, and is effective for public entities for annual and interim periods beginning after December 31, 2016. Early adoption is not permitted. The Company is currently evaluating the impact of this new guidance on the Company's financial statements. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, "Presentation of Financial Statements--Going Concern", which requires management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Early application is permitted. Management is still in the process of assessing the impact of ASU 2014-15 on the Company's financial statements. In April 2015, the FASB issued Accounting Standard Update ("ASU") 2015-03 Simplifying the Presentation of Debt Issuance Costs. This update requires capitalized debt issuance costs to be classified as a reduction to the carrying value of debt rather than a deferred charge, as is currently required. This update will be effective for the Company for all annual and interim periods beginning after December 15, 2015 and is required to be adopted retroactively for all periods presented, and early adoption is permitted. The Company is currently evaluating the expected impact of this new accounting standard on its financial statements. The FASB issues ASUs to amend the authoritative literature in ASC. There have been a number of ASUs to date that amend the original text of ASC. The Company believes those issued to date either (1) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company. Revenue Recognition Software license revenue is generally recognized when a signed contract or other persuasive evidence of an arrangement exists, the software has been electronically delivered, the license fee is fixed or is measured on a paid user basis; and collection of the resulting receivable is probable. When contracts contain multiple elements wherein Vendor-Specific Objective Evidence (VSOE) exists for all undelivered elements, we account for the delivered elements in accordance with the Residual Method. VSOE of fair value for maintenance and support is established by a stated renewal rate, if substantive, included in the license arrangement or rates charged in stand-alone sales of maintenance and support. Revenue from subscription license agreements, which include software, rights to unspecified future products and maintenance, is recognized ratably over the term of the subscription period. Provided all other revenue criteria are met, the upfront, minimum, non-refundable license fees from customers are generally recognized upon delivery and on-going royalty fees are generally recognized upon reports of new licenses issued. If there is significant uncertainty about the project completion or receipt of payment for professional services, revenue is deferred until the uncertainty is sufficiently resolved. VSOE of fair value of services is based upon stand-alone sales of those services. The amortization of acquired technology for products acquired through business combinations are considered as the cost of revenues. The acquired software technologies are amortized over their useful lives of five years. Deferred Revenue Deferred revenue result from fees billed to customers for which revenue has not yet been recognized. The Company also recognizes annual subscription fees for virtual servers and subscription and small usage fees and those revenues are based on a 48-month lease, the Company would amortize the revenue over the life of the agreement of 48 months. The Company has deferred revenue of $691,406 as of December 31, 2015 and $1,125,000 as of September 30, 2015. |
5. RELATED PARTY TRANSACTIONS
5. RELATED PARTY TRANSACTIONS | 3 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
5. RELATED PARTY TRANSACTIONS | NOTE 5 RELATED PARTY TRANSACTIONS The advances from the CEO are due on demand and do not accrue interest. As of December 31, 2015 and 2014, the amount owed to the CEO for advances was $1,205 and $0, respectively. |
6. DISCONTINUED OPERATIONS
6. DISCONTINUED OPERATIONS | 3 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
6. DISCONTINUED OPERATIONS | NOTE 6 DISCONTINUED OPERATIONS Cloud MD Sale The Companys Board of Directors believed that it was in the best interest of the Company to discontinue the former business operation Cloud MD. During September 2015, the Cloud MD business segment was discontinued and a plan of sale of the segment was approved. The Cloud MD sale occurred in October 2015 as a $250,000 note payable from the buyer. The note receivable has five annual payments of $50,000 and carries interest of 3% a year. We reviewed the need for an allowance for loan loss and estimation of impairment of the note receivable based on professional relationship and experience with the buyer and the specifics of the agreements. Currently, no allowance is deemed necessary and no impairment is expected as collection seems reasonably assured. Accordingly, the assets, which had a net book value of zero as of September 30, 2015, qualified as held for sale and the Company has presented Cloud MD as discontinued operations. Details of the classifications for revenues, operating expenses and operations are shown below. Period ended 2015 2014 Discontinued operations: Revenues $ $ 13,210 Operating expenses 81,563 Gain from discontinued operations 250,000 Income(loss) from discontinued operations $ 250,000 $ (68,353 ) Dec 31, 2015 Sep 30, 2015 Net assets attributable to discontinued operations: Intangible Software 3,232 Net liabilities of discontinued operations 18 18 |
7. EQUITY
7. EQUITY | 3 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
7. EQUITY | NOTE 7- EQUITY As of December 31, 2015, the Company was authorized to issue 650,000,000 common shares and 10,000,000 preferred shares at a par value of $0.01. Preferred Stock On February 5, 2015, the Company issued 6,000,000 shares of its Series A Preferred Stock to its CEO. As of September 30, 2015, the Series A Preferred Stock is convertible into the Companys common stock at a rate of 1 to 1.5 common shares. The Company recorded $9,900,000 as stock compensation based on the market value of the Companys common stock on the date of grant. As of February 17, 2015, there are a total of 10,000,000 shares of the Series A Preferred Stock authorized and outstanding which are convertible into a total of 15,000,000 shares of common stock. Each share of the Preferred Stock has 150 votes on all matters presented to be voted by the holders of common stock. The holders of the Preferred A shares can only convert the shares if agreed upon by 50.1% vote of all preferred shareholders. During November 2015, the conversion rate for the Series A preferred stock was modified to a 1 to 30 common shares. The certificate of amendment to the Articles of Incorporation was not filed and on February 12, 2016 the Board reversed its position and reinstated the 1 to 1.5 conversion rate. Accordingly, we determined that no modification accounting was required. (See note 9) Common Stock Issued for Cash The Company issued 132,500 shares of restricted common shares through a Private Placement Memorandum Common Stock Issued for Services On October 1, 2015 the Company issued 2,084 restricted common shares to Dr. Albert Carlson per his employment agreement for the Company. The shares had a value of $10,733 on the date of issue. On October 22, 2015 the Company issued 5,000 restricted common shares to Isaiah Eichen per an asset purchase agreement. The shares had a value of $27,500 on the date of issue. |
8. COMMITMENTS AND CONTINGENCIE
8. COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
8. COMMITMENTS AND CONTINGENCIES | NOTE 8 - COMMITMENTS AND CONTINGENCIES Litigation The Company is involved in various collections matters; the defendants have asserted certain counterclaims. While the outcome and impact of currently pending legal proceedings cannot be predicted with certainty, based on the current status of the matters, we believe that the resolution of these proceedings through settlement or judgment will not have a material adverse effect on our consolidated operating results, financial position or cash flow. Contingencies The company entered into a licensing and subscription agreement on June 11, 2014. The counterparty has requested an extension of its terms and claimed that the product may not be viable. The company disagrees with both claims. The range of loss, if any, associated with these claims cannot currently be estimated. |
9. SUBSEQUENT EVENTS
9. SUBSEQUENT EVENTS | 3 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
9. SUBSEQUENT EVENTS | NOTE 9 - SUBSEQUENT EVENTS During November 2015, the conversion rate for the Series A preferred stock was modified to a 1 to 30 common shares. The certificate of amendment to the Articles of Incorporation was not filed and on February 12, 2016 the Board reversed its position and reinstated the 1 to 1.5 conversion rate. |
4. SUMMARY OF SIGNIFICANT ACC15
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications Certain reclassifications have been made to conform with the current period presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At December 31, 2015 and 2014, cash and cash equivalents include cash on hand and cash in the bank. The Company maintains its cash in accounts held by large, globally recognized banks which, at times, may exceed federally insured limits as guaranteed by the Federal Deposit Insurance Corporation (FDIC). The FDIC insures these deposits up to $250,000. At December 31, 2015, $871,111 of the Companys cash balance was uninsured. The Company has not experienced any losses in such accounts. |
Long-Lived Assets | Long-Lived Assets Long-lived assets are evaluated for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted future cash flows to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company's financial instruments consist primarily of cash, accounts payable and accrued expenses, and debt. The carrying amounts of such financial instruments approximate their respective estimated fair value due to the short-term maturities and approximate market interest rates of these instruments. Fair value is focused on an exit price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Within the measurement of fair value, the use of market-based information is prioritized over entity specific information and a three-level hierarchy for fair value measurements is used based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. |
Concentration of Credit Risk | Concentration of Credit Risk All of the Companys cash and cash equivalents are maintained in regional and national financial institutions. The Company has exposure to credit risk to the extent that its cash and cash equivalents exceed amounts covered by the U.S. federal deposit insurance; however, the Company has not experienced any losses in such accounts. In managements opinion, the capitalization and operating history of the financial institutions are such that the likelihood of material loss is remote. |
Recent Accounting Announcements | Recent Accounting Announcements In May 2014, the FASB issued new accounting guidance regarding revenue recognition under GAAP. This new guidance will supersede nearly all existing revenue recognition guidance, and is effective for public entities for annual and interim periods beginning after December 31, 2016. Early adoption is not permitted. The Company is currently evaluating the impact of this new guidance on the Company's financial statements. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, "Presentation of Financial Statements--Going Concern", which requires management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Early application is permitted. Management is still in the process of assessing the impact of ASU 2014-15 on the Company's financial statements. In April 2015, the FASB issued Accounting Standard Update ("ASU") 2015-03 Simplifying the Presentation of Debt Issuance Costs. This update requires capitalized debt issuance costs to be classified as a reduction to the carrying value of debt rather than a deferred charge, as is currently required. This update will be effective for the Company for all annual and interim periods beginning after December 15, 2015 and is required to be adopted retroactively for all periods presented, and early adoption is permitted. The Company is currently evaluating the expected impact of this new accounting standard on its financial statements. The FASB issues ASUs to amend the authoritative literature in ASC. There have been a number of ASUs to date that amend the original text of ASC. The Company believes those issued to date either (1) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company. |
Revenue Recognition | Revenue Recognition Software license revenue is generally recognized when a signed contract or other persuasive evidence of an arrangement exists, the software has been electronically delivered, the license fee is fixed or is measured on a paid user basis; and collection of the resulting receivable is probable. When contracts contain multiple elements wherein Vendor-Specific Objective Evidence (VSOE) exists for all undelivered elements, we account for the delivered elements in accordance with the Residual Method. VSOE of fair value for maintenance and support is established by a stated renewal rate, if substantive, included in the license arrangement or rates charged in stand-alone sales of maintenance and support. Revenue from subscription license agreements, which include software, rights to unspecified future products and maintenance, is recognized ratably over the term of the subscription period. Provided all other revenue criteria are met, the upfront, minimum, non-refundable license fees from customers are generally recognized upon delivery and on-going royalty fees are generally recognized upon reports of new licenses issued. If there is significant uncertainty about the project completion or receipt of payment for professional services, revenue is deferred until the uncertainty is sufficiently resolved. VSOE of fair value of services is based upon stand-alone sales of those services. The amortization of acquired technology for products acquired through business combinations are considered as the cost of revenues. The acquired software technologies are amortized over their useful lives of five years. |
Deferred Revenue | Deferred Revenue Deferred revenue result from fees billed to customers for which revenue has not yet been recognized. The Company also recognizes annual subscription fees for virtual servers and subscription and small usage fees and those revenues are based on a 48-month lease, the Company would amortize the revenue over the life of the agreement of 48 months. The Company has deferred revenue of $691,406 as of December 31, 2015 and $1,125,000 as of September 30, 2015. |
6. DISCONTINUED OPERATIONS (Tab
6. DISCONTINUED OPERATIONS (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Period ended 2015 2014 Discontinued operations: Revenues $ $ 13,210 Operating expenses 81,563 Gain from discontinued operations 250,000 Income(loss) from discontinued operations $ 250,000 $ (68,353 ) Dec 31, 2015 Sep 30, 2015 Net assets attributable to discontinued operations: Intangible Software 3,232 Net liabilities of discontinued operations 18 18 |
3. GOING CONCERN (Details Narra
3. GOING CONCERN (Details Narrative) - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated Deficit | $ (42,908,755) | $ (43,138,826) |
4. SUMMARY OF SIGNIFICANT ACC18
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 |
Accounting Policies [Abstract] | ||
FDIC Insured Cash | $ 250,000 | |
FDIC Uninsured Cash | 871,111 | |
Deferred Revenue | $ 691,406 | $ 1,125,000 |
5. RELATED PARTY TRANSACTIONS (
5. RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |||
Related Party Advances | $ 1,205 | $ 0 |
6. DISCONTINUED OPERATIONS - Di
6. DISCONTINUED OPERATIONS - Discontinued Operations (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | |
Income(loss) from discontinued operations | $ (250,000) | $ 68,353 | |
Net assets attributable to discontinued operations: | $ 3,232 | ||
Net liabilities of discontinued operations | $ 18 | $ 18 | |
Revenues | 433,594 | ||
Operating expenses | 453,417 | $ 193,756 | |
Discontinued Operations, Disposed of by Means Other than Sale [Member] | |||
Income(loss) from discontinued operations | $ 250,000 | (68,353) | |
Net assets attributable to discontinued operations: | |||
Intangible Software | $ 3,232 | ||
Net liabilities of discontinued operations | $ 18 | $ 18 | |
Revenues | 13,210 | ||
Operating expenses | $ 81,563 | ||
Gain from discontinued operations | $ 250,000 |
6. DISCONTINUED OPERATIONS (Det
6. DISCONTINUED OPERATIONS (Details Narrative) | 3 Months Ended |
Dec. 31, 2015USD ($) | |
Note Receivable | $ 250,000 |
D & A | |
Discontinued Revenue | 12,779 |
Discontinued Operating Expenses | 13,493 |
Cloud Scientific | |
Discontinued Revenue | 431 |
Discontinued Operating Expenses | $ 68,070 |
7. EQUITY (Details Narrative)
7. EQUITY (Details Narrative) - USD ($) | Oct. 02, 2015 | Oct. 22, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 |
Equity [Abstract] | |||||
Common Stock, Shares Authorized | 650,000,000 | 650,000,000 | |||
Preferred Stock Shares Authorized | 10,000,000 | 10,000,000 | |||
Common Stock, Par Value | $ 0.01 | $ 0.01 | |||
Preferred Stock, Par Value | $ 0.01 | $ 0.01 | |||
Preferred Stock, Shares Issued | 10,000,000 | 10,000,000 | |||
Preferred Stock, Shares Outstandng | 10,000,000 | 10,000,000 | |||
Stock Issued to CEO | 6,000,000 | ||||
Stock based compensation | $ 9,900,000 | ||||
Stock Issued for Cash, Shares | 132,001 | ||||
Stock Issued for Cash, Value | $ 265,001 | ||||
Stock Issued for Services | 2,084 | 5,000 | |||
Stock Issued for Services, Value | $ 10,733 | $ 27,500 |