| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
3 - 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: Cash
and Cash Equivalents The
Company considers all highly liquid investments with a maturity at the time of purchase of three months or less to be cash equivalents.
At December 31, 2021, the Company’s cash includes cash on hand and cash in the bank. The balance of such accounts, 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 5,071,588 Basic
and Diluted Net Loss per Common Share The
Company’s basic loss per share is computed by dividing the net loss available to common stockholders by the weighted average number
of common shares outstanding during the reporting period. The weighted average number of shares is calculated by taking the number of
shares outstanding and weighting that number by the amount of time that the applicable shares were outstanding. Diluted earnings per
share reflects the potential dilution that could occur if vested stock options, warrants, and other commitments of the Company to issue
common stock were exercised, resulting in the issuance of common stock that would share in the earnings of the Company. As of December
31, 2021, the Company had no shares of preferred stock outstanding. The
Company’s diluted loss per share was the same as basic loss per share during the periods in which net losses were incurred since
the inclusion of potential common stock equivalents would be anti-dilutive due to the net loss. During the three months ended December
31, 2021, the Company excluded warrants to purchase 79,461,481 24,216,866 1,000,000 Research
and Development and Software Development Costs The
Company expenses all research and development costs, including patent and software development costs. The research and development costs
incurred for the three months ended December 31, 2021 and 2020 were $ 129,639 121,793 Revenue
Recognition The
Company recognizes revenues in accordance with the provisions of Accounting Standards Update (“ASU”) 2014-09, “Revenue
from Contracts with Customers , Central
to the revenue recognition guidance is a five-step revenue recognition model that requires reporting entities to:
1. Identify
the contract,
2. Identify
the performance obligations of the contract,
3. Determine
the transaction price of the contract,
4. Allocate
the transaction price to the performance obligations, and
5. Recognize
revenue. The
Company accounts for a promise to provide a customer with a right to access the Company’s intellectual property as a performance
obligation satisfied over time because the customer will simultaneously receive and consume the benefit from the Company’s providing
access to its intellectual property as the performance occurs. Software
License Agreements During
the fiscal year ended September 30, 2019, the Company entered into a one-year agreement with SoundFi LLC (“SoundFi”) that
automatically renews for subsequent one-year periods unless otherwise terminated by either party. The Company received $ 25,000 The
Company executed a software licensing agreement with Castle Shield Holdings, LLC (“Castle Shield”) during the fiscal year
ended September 30, 2020, which agreement includes auto-renewing terms. The Company received a $ 10,000 During
the three months ended December 31, 2020, the Company recognized a total of $ 8,750 no Recent
Accounting Pronouncements The
FASB issues ASUs to amend the authoritative literature in the Accounting Standards Codification (“ASC”). There have been
several ASUs to date that amend the original text of the ASC. Other than those discussed below, the Company believes the ASUs issued
to date either (i) 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. In
December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. In
August 2018, the FASB issued ASU 2018-13, Fair Value Measurements (Topic 820) – Disclosure Framework – Changes to the
Disclosure Requirements for Fair Value Measurement The
Company adopted ASU 2018-13 on October 1, 2020, which adoption did not have a material impact on the Company’s financial position,
results of operations and cash flows. In
July 2017, the FASB issued ASU 2017-11—Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and
Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features and II. Replacement of
the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable
Noncontrolling Interests with a Scope Exception. ASU 2017-11 eliminates the requirement that a down round feature precludes equity classification
when assessing whether an instrument is indexed to an entity’s own stock. As a result, a freestanding equity-linked financial instrument
would no longer be accounted for as a derivative liability at fair value because of the existence of a down round feature. The Company
has adopted ASU 2017-11 and implemented the pronouncement retrospectively. The adoption of this guidance did not have an impact on the
Company’s financial statements. As
a result, a freestanding equity-linked financial instrument is no longer accounted for as a derivative liability at fair value because
of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that
present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered.
That effect is treated as a dividend and as a reduction of income available to common stockholders in basic EPS. During
March and April 2021, the Company issued warrants to purchase 63,882,054 shares of its common stock at an average
exercise price of $ 0.33 per share, which warrants have anti-dilution
rights that provide for adjustments in the exercise price and number of shares exercisable upon exercise if there is an issuance of common
stock or common stock equivalents at a lower price than the exercise price of the warrants (down round feature). In
October 2021, the FASB amended guidance to recognize and measure contract assets and contract liabilities from contracts with customers
acquired in a business combination. Generally, this new guidance will result in the Company recognizing contract assets and contract
liabilities consistent with those reported by the acquiree immediately before the acquisition date. The Company retroactively adopted
the guidance in the fourth quarter of fiscal 2021 for all business combinations completed since the beginning of fiscal 2021. There was
no material impact on the Company’s Financial Statements. In
January 2021, the FASB issued guidance to clarify that all derivative instruments affected by changes to the interest rates used for
discounting, margining or contract price alignment can apply certain optional expedients and exceptions mentioned in its reference rate
reform guidance even though they do not reference to LIBOR or a rate being discontinued. This guidance was effective upon issuance. The
Company adopted the guidance in the first quarter of fiscal 2021. There was no impact on the Company’s Financial Statements
upon such adoption. In
June 2016, the FASB issued ASU 2016 13, . 2019 10, 326 . In
January 2020, the FASB issued guidance to clarify certain interactions between the guidance to account for equity securities, the guidance
to account for investments under the equity method of accounting, and the guidance to account for derivatives and hedging. The new guidance
clarifies the application of measurement alternatives and the accounting for certain forward contracts and purchased options to acquire
investments. The Company is required to adopt the guidance in the first quarter of fiscal 2022. Early adoption is permitted. In
May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock
Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40). The new ASU addresses
an issuer’s accounting for certain modifications or exchanges of freestanding equity-classified written call options. This amendment
is effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years.
Early adoption is permitted. In
November 2021, the FASB issued guidance to increase the transparency of government assistance received by an entity by requiring disclosures
relating to accounting policy, nature of the assistance, and the effect of the assistance on the financial statements. The Company is
required to adopt the guidance in the first quarter of its fiscal 2023. Early adoption is permitted. The Company is currently evaluating
the impact of this guidance on its Financial Statements. In
August 2020, the FASB issued ASU 2020-06— Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives
and edging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an
Entity’s Own Equity (“ASU 2020-06”) Debt with Conversion and Other Options Additionally,
for convertible debt instruments with substantial premiums accounted for as paid-in capital, amendments in ASU 2020-06 added disclosures
about (1) the fair value amount and the level of fair value hierarchy of the entire instrument for public business entities and (2) the
premium amount recorded as paid-in capital. The
amendments in ASU 2020-06 are effective for public business entities, excluding entities eligible to be smaller reporting companies,
as defined by the SEC, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all
other entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those
fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods
within those fiscal years. Entities should adopt the guidance as of the beginning of its annual fiscal year and are allowed to adopt
the guidance through either a modified retrospective method of transition or a fully retrospective method of transition. In applying
the modified retrospective method, entities should apply the guidance to transactions outstanding as of the beginning of the fiscal year
in which the amendments are adopted. Transactions that were settled (or expired) during prior reporting periods are unaffected. The cumulative
effect of the change should be recognized as an adjustment to the opening balance of retained earnings at the date of adoption. If an
entity elects the fully retrospective method of transition, the cumulative effect of the change should be recognized as an adjustment
to the opening balance of retained earnings in the first comparative period presented. The Company is evaluating the impact of the revised
guidance and believes that it will not have a significant impact on its financial statements. |
