Mastermind (MMND) 10-Q 19 Aug 19 2019 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jun. 30, 2019	Aug. 19, 2019
Document Information [Line Items]
Entity Registrant Name	MASTERMIND, INC.
Entity Central Index Key	0001088638
Trading Symbol	mmnd
Current Fiscal Year End Date	--09-30
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding (in shares)		33,870,520
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false
Title of 12(b) Security	Common Stock

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2019	Sep. 30, 2018
Current assets:
Cash and cash equivalents	$ 432,268	$ 861,371
Accounts receivable	1,468,515	1,146,312
Unbilled receivables	303,478
Advance to related party		6,589
Prepaid expenses and other current assets	129,672	23,611
Total current assets	2,333,933	2,037,883
Property and equipment, net	84,850	92,685
Total assets	2,418,783	2,130,568
Current liabilities:
Accounts payable and accrued expenses	74,991	123,862
Unearned revenues		109,363
Deferred tax liabilities	180,990	109,724
Total current liabilities	255,981	342,949
Total liabilities	255,981	342,949
Stockholders’ Equity:
Series B Preferred stock, $0.001 par value; 1,000,000 shares authorized; no shares issued and outstanding as of June 30, 2019 and September 31, 2018, respectively
Common stock, $0.001 par value, 125,000,000 shares authorized, 33,870,520 shares issued and outstanding as of June 30, 2019 and September 30, 2018	33,871	33,871
Retained earnings	2,128,931	1,753,748
Total stockholders’ equity	2,162,802	1,787,619
Total liabilities and stockholders’ equity	$ 2,418,783	$ 2,130,568

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2019	Sep. 30, 2018
Series B Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Series B Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Series B Preferred stock, shares issued (in shares)	0	0
Series B Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	125,000,000	125,000,000
Common stock, shares issued (in shares)	33,870,520	33,870,520
Common stock, shares outstanding (in shares)	33,870,520	33,870,520

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues	$ 1,257,119	$ 1,460,050	$ 3,949,398	$ 3,670,474
Cost of revenues	198,719	296,610	544,136	532,030
Gross profit	1,058,400	1,163,440	3,405,262	3,138,444
Operating Expenses:
General and administrative	962,229	792,494	2,893,321	2,458,222
Total operating expenses	962,229	792,494	2,893,321	2,458,222
Income from operations	96,171	370,946	511,941	680,222
Other Income (Expense), Net:
Merger costs				(50,000)
Interest (expense) to related party, net of interest income	451	(22,007)	2,008	(30,606)
Total other income (expense)	451	(22,007)	2,008	(80,606)
Net income before provision for income taxes	96,622	348,939	513,949	599,616
Provision for income taxes	30,860	68,980	138,766	117,736
Net income	$ 65,762	$ 279,959	$ 375,183	$ 481,880
Net income per common share:
Basic (in dollars per share)	$ 0	$ 0.01	$ 0.01	$ 0.02
Diluted (in dollars per share)	$ 0	$ 0.01	$ 0.01	$ 0.02
Weighted average common shares outstanding:
Basic (in shares)	33,870,520	31,579,672	33,870,520	30,388,799
Diluted (in shares)	33,870,520	33,870,520	33,870,520	31,553,640

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Sep. 30, 2017	29,236,759
Balance at Sep. 30, 2017	$ 29,237		$ 943,457	$ 972,694
Net income (loss)			73,352	73,352
Distributions			(100,000)	(100,000)
Balance (in shares) at Dec. 31, 2017	29,236,759
Balance at Dec. 31, 2017	$ 29,237		916,809	946,046
Balance (in shares) at Sep. 30, 2017	29,236,759
Balance at Sep. 30, 2017	$ 29,237		943,457	972,694
Net income (loss)				481,880
Balance (in shares) at Jun. 30, 2018	33,870,520
Balance at Jun. 30, 2018	$ 33,871		1,320,702	1,354,573
Balance (in shares) at Dec. 31, 2017	29,236,759
Balance at Dec. 31, 2017	$ 29,237		916,809	946,046
Net income (loss)			142,836	142,836
Effect of merger transaction (in shares)	4,633,761
Effect of merger transaction	$ 4,634		(18,902)	(14,268)
Balance (in shares) at Mar. 31, 2018	33,870,520
Balance at Mar. 31, 2018	$ 33,871		1,040,743	1,074,614
Net income (loss)			279,959	279,959
Balance (in shares) at Jun. 30, 2018	33,870,520
Balance at Jun. 30, 2018	$ 33,871		1,320,702	1,354,573
Balance (in shares) at Sep. 30, 2018	33,870,520
Balance at Sep. 30, 2018	$ 33,871		1,753,748	1,787,619
Net income (loss)			65,473	65,473
Balance (in shares) at Dec. 31, 2018	33,870,520
Balance at Dec. 31, 2018	$ 33,871		1,819,221	1,853,092
Balance (in shares) at Sep. 30, 2018	33,870,520
Balance at Sep. 30, 2018	$ 33,871		1,753,748	1,787,619
Net income (loss)				375,183
Balance (in shares) at Jun. 30, 2019	33,870,520
Balance at Jun. 30, 2019	$ 33,871		2,128,931	2,162,802
Balance (in shares) at Dec. 31, 2018	33,870,520
Balance at Dec. 31, 2018	$ 33,871		1,819,221	1,853,092
Net income (loss)			243,948	243,948
Balance (in shares) at Mar. 31, 2019	33,870,520
Balance at Mar. 31, 2019	$ 33,871		2,063,169	2,097,040
Net income (loss)			65,762	65,762
Balance (in shares) at Jun. 30, 2019	33,870,520
Balance at Jun. 30, 2019	$ 33,871		$ 2,128,931	$ 2,162,802

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income (loss)	$ 375,183	$ 481,880
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities
Depreciation	21,974	21,556
Changes in assets and liabilities:
Accounts receivable	(322,203)	(179,489)
Unbilled receivables	(303,478)
Prepaid expenses and other current assets	(106,061)	20,421
Accounts payable and accrued expenses	(48,871)	(40,098)
Unearned revenues	(109,363)	46,065
Deferred tax liabilities	71,266
Net cash flows (used in) provided by operating activities	(421,553)	350,335
Cash flows from investing activities:
Purchase of equipment	(14,139)	(14,540)
Net cash flows used in investing activities	(14,139)	(14,540)
Cash flows from financing activities:
Repayment of related party note		(212,290)
Collection (repayment) of related party advance	6,589	(13,487)
Distributions		(100,000)
Net cash flows provided by (used in) financing activities	6,589	(325,777)
Net change in cash and cash equivalents	(429,103)	10,018
Cash and cash equivalents at beginning of period	861,371	545,904
Cash and cash equivalents at end of period	432,268	555,922
Supplemental disclosure of cash flow information:
Income taxes paid		101,250
Interest paid to related party		$ 30,606

Note 1 - Business

Note 1 - Business	9 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Nature of Operations [Text Block]	1. Business Mastermind, Inc. (the “Company”, “we”, “us”, or the “organization”) is an involvement marketing service agency that designs, creates and develops branding and marketing campaigns, primarily for large corporate clients with well-known brands. We specialize in customer conversion initiatives that we believe facilitate the involvement of more of the “right customers” with the brands of our clients. We focus on converting prospects to customers. Our programs can take on various forms, including creating and managing content marketing, influencer marketing, social marketing/community management, digital issues management promotions, Augmented Reality Marketing, and UX Analytics & Digital Intelligence. On February 14, 2018, February 14, 2018 Pursuant to the Contribution Agreement the Sellers contributed, transferred, assigned and conveyed to us all right, title and interest in and to one hundred 100% no 29,236,759 $.001 85% On April 19, 2018, April 27, 2018, 78.320 85% May 24, 2018,

Note 2 - Interim Financial Stat

Note 2 - Interim Financial Statements and Basis of Presentation	9 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Basis of Accounting [Text Block]	2 . Interim Financial Statements and Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information pursuant to Rule 8 03 X. not three nine June 30, 2019 may not may 10 September 30, 2018 2017 The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments, which are evaluated on an ongoing basis, and that affect the amounts reported in our unaudited condensed financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that are not We adopted the Accounting Standard Codification (“ASC”) 606, October 1, 2018, five 606. 606 not January 1, 2018 606.

Note 3 - Related Party Transact

Note 3 - Related Party Transactions	9 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	3 . Related Party Transactions On January 3, 2012, one may January 3, 2012 $2,170,000 2019 2039 no December 31, 2039. three nine June 30, 2019 2018, June 30, 2019 September 30, 2018, no On January 3, 2014, 1450 9,000 15,000 not 10 $30,000 $30,000 three June 30, 2019 2018, $90,000 $90,000 nine June 30, 2019 2018, On December 12, 2016, $500,000, December 12, 2018. 3.75% one 1/2% not 5.5% September 30, 2018 no nine June 30, 2019 June 30, 2019. three nine June 30, 2018, $22,007 $30,606. During the three June 30, 2019 2018, $250,225 $227,810, nine June 30, 2019 2018, three $750,675 $583,430, June 30, 2019 September 30, 2018, no three

Note 4 - Property and Equipment

Note 4 - Property and Equipment	9 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	4 . Property and Equipment Property and equipment consist of the following: June 30, September 30, 2019 2018 Furniture, fixtures, and office equipment $ 145,626 $ 131,487 Leasehold improvements 73,795 73,795 Total property and equipment 219,421 205,282 Less: accumulated depreciation (134,571 ) (112,597 ) Property and equipment, net 84,850 92,685 Depreciation expense for the three June 30, 2019 2018 $7,169 $7,288, nine June 30, 2019 2018 $21,974 $21,556,

Note 5 - Income Taxes

Note 5 - Income Taxes	9 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Income Tax Disclosure [Text Block]	5 . Income Taxes Prior to February 14, 2018, no We are required to file federal and state income tax returns in the United States. The preparation of these tax returns requires us to interpret the applicable tax laws and regulations in effect in such jurisdictions, which could affect the amount of tax paid by us. In consultation with our tax advisors, we base our tax returns on interpretations that are believed to be reasonable under the circumstances. The tax returns, however, are subject to routine reviews by the various federal and state taxing authorities in the jurisdictions in which we file tax returns. As part of these reviews, a taxing authority may may In assessing the realization of deferred tax assets, management considers whether it is more likely than not On December 22, 2017, 2017 not 35% 21% December 31, 2017, one On December 22, 2017, No. 118 118" not December 31, 2017 may may may 2019

Note 6 - Stockholders' Equity

Note 6 - Stockholders' Equity	9 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	6 . Stockholders’ Equity Our current authorized capital stock consists of one hundred twenty-six million 126,000,000 one hundred twenty-five million 125,000,000 $0.001 one million 1,000,000 2018 four million 4,000,000 85% Preferred Stock Our amended and restated articles of incorporation provide that our board of directors has the authority, without action by the stockholders, to designate and issue shares of preferred stock in one may There are no Common Stock Pursuant to the Contribution Agreement, we issued 29,236,759 three Common Stock Options As of June 30, 2019 September 30, 2018, 525,667 $0.15 no nine June 30, 2019 2018.

Note 7 - Concentration of Credi

Note 7 - Concentration of Credit Risk and Major Customers	9 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	7 . Concentration of Credit Risk and Major Customers For the nine June 30, 2019, one 15% nine June 30, 2018, two 22% 25%, As of June 30, 2019 September 30, 2018, $898,343, 61%, three $507,031, 62%, four

Note 8 - Subsequent Events

Note 8 - Subsequent Events	9 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Subsequent Events [Text Block]	8 . Subsequent Events We evaluated all events or transactions that occurred after the balance sheet date through the date when these financial statements were available to be issued and we determined that we did not

Note 4 - Property and Equipme_2

Note 4 - Property and Equipment (Tables)	9 Months Ended
	Jun. 30, 2019
Notes Tables
Property, Plant and Equipment [Table Text Block]	June 30, September 30, 2019 2018 Furniture, fixtures, and office equipment $ 145,626 $ 131,487 Leasehold improvements 73,795 73,795 Total property and equipment 219,421 205,282 Less: accumulated depreciation (134,571 ) (112,597 ) Property and equipment, net 84,850 92,685

Note 1 - Business (Details Text

Note 1 - Business (Details Textual) - $ / shares	Feb. 14, 2018	Jun. 30, 2019	Sep. 30, 2018
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001	$ 0.001
Percentage of Voting Securities		85.00%
Majority Shareholder [Member]
Percentage of Voting Securities		85.00%
Reverse Acquisition [Member]
Business Acquisition, Percentage of Voting Interests Acquired	100.00%
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	29,236,759
Business Acquisition, Consideration Transferred, Owned Percentage of Common Stock Outstanding	85.00%

Note 3 - Related Party Transa_2

Note 3 - Related Party Transactions (Details Textual)	Dec. 12, 2016USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Sep. 30, 2018USD ($)	Jan. 03, 2014ft²a	Jan. 03, 2012USD ($)
Finite-Lived License Agreements, Gross								$ 2,170,000
Operating Leases, Rent Expense, Total		$ 30,000	$ 30,000	$ 90,000	$ 90,000
Interest Expense, Total			22,007		30,606
Majority Shareholder [Member]
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party		250,225	$ 227,810	750,675	$ 583,430
Due to Related Parties, Total		$ 0		$ 0		$ 0
The Note [Member]
Loans Payable, Total	$ 500,000
Debt Instrument, Interest Rate, Stated Percentage	3.75%
The Note [Member] | Maximum [Member]
Debt Instrument, Interest Rate, Stated Percentage	5.50%
The Note [Member] | Prime Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	0.50%
Sublease [Member]
Area of Real Estate Property | ft²							9,000
The Lease [Member]
Area of Real Estate Property | a							15,000
Lessee, Operating Lease, Term of Contract							10 years

Note 4 - Property and Equipme_3

Note 4 - Property and Equipment (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Depreciation, Total	$ 7,169	$ 7,288	$ 21,974	$ 21,556

Note 4 - Property and Equipme_4

Note 4 - Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)	Jun. 30, 2019	Sep. 30, 2018
Furniture, fixtures, and office equipment	$ 145,626	$ 131,487
Leasehold improvements	73,795	73,795
Total property and equipment	219,421	205,282
Less: accumulated depreciation	(134,571)	(112,597)
Property and equipment, net	$ 84,850	$ 92,685

Note 6 - Stockholders' Equity (

Note 6 - Stockholders' Equity (Details Textual) - $ / shares	Feb. 14, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2018
Total Stock, Shares Authorized		126,000,000
Common Stock, Shares Authorized		125,000,000		125,000,000
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001		$ 0.001
Preferred Stock, Shares Authorized		1,000,000		1,000,000
Percentage of Voting Securities		85.00%
Preferred Stock, Shares Issued, Total		0		0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance		525,667		525,667
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance		$ 0.15		$ 0.15
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		0	0
Preferred Stock, Shares Outstanding, Ending Balance		0		0
Reverse Acquisition [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	29,236,759
The 2018 Equity Incentive Plan [Member]
Common Stock, Capital Shares Reserved for Future Issuance		4,000,000

Note 7 - Concentration of Cre_2

Note 7 - Concentration of Credit Risk and Major Customers (Details Textual) - Customer Concentration Risk [Member]	9 Months Ended		12 Months Ended
	Jun. 30, 2019USD ($)	Jun. 30, 2018	Sep. 30, 2018USD ($)
Revenue Benchmark [Member]
Number of Customers	1	2
Concentration Risk, Percentage	15.00%
Revenue Benchmark [Member] | Customer 1 [Member]
Concentration Risk, Percentage		22.00%
Revenue Benchmark [Member] | Customer 2 [Member]
Concentration Risk, Percentage		25.00%
Accounts Receivable [Member]
Number of Customers	3		4
Accounts Receivable [Member] | Three Customers [Member]
Concentration Risk, Percentage	61.00%
Accounts Receivable, after Allowance for Credit Loss, Total	$ 898,343
Accounts Receivable [Member] | Four Customers [Member]
Concentration Risk, Percentage			62.00%
Accounts Receivable, after Allowance for Credit Loss, Total			$ 507,031