Mastermind (MMND) 10-Q 14 Aug 20 2020 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jun. 30, 2020	Aug. 14, 2020
Document Information [Line Items]
Entity Registrant Name	MASTERMIND, INC.
Entity Central Index Key	0001088638
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 Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding (in shares)		33,870,520
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2020	Sep. 30, 2019
Current assets:
Cash and cash equivalents	$ 891,284	$ 742,173
Accounts receivable	525,924	414,650
Unbilled receivables	95,400	51,976
Prepaid expenses and other current assets	362,254	186,087
Total current assets	1,874,862	1,394,886
Property and equipment, net	62,961	78,940
Right-of-use asset, net	389,472
Total assets	2,327,295	1,473,826
Current liabilities:
Accounts payable and accrued expenses	100,767	130,395
Unearned revenues	38,467	169,820
Deferred tax liabilities	214,177	139,937
Lease obligation, current	101,102
Total current liabiltiies	454,513	440,152
Lease obligation, net of current portion	288,370
Notes Payable	301,750
Total liabilities	1,044,633	440,152
Stockholders' Equity:
Preferred stock, $0.001 par value; 1,000,000 shares authorized; no shares issued and outstanding as of June 30, 2020 and September 30, 2019
Common stock, $0.001 par value, 125,000,000 shares authorized, 33,870,520 shares issued and outstanding as of June 30, 2020 and September 30, 2019	33,871	33,871
Retained earnings	1,248,791	999,803
Total stockholders’ equity	1,282,662	1,033,674
Total liabilities and stockholders’ equity	$ 2,327,295	$ 1,473,826

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2020	Sep. 30, 2019
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
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

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenues	$ 862,246	$ 1,257,119	$ 2,876,379	$ 3,949,398
Cost of revenues	204,427	268,838	978,425	1,613,962
Gross Profit	657,819	988,281	1,897,954	2,335,436
Operating Expenses:
General and administrative	515,323	892,110	1,556,875	1,823,495
Total operating expenses	515,323	892,110	1,556,875	1,823,495
Income from operations	142,496	96,171	341,079	511,941
Other Income (Expense), Net:
Loss on disposal			(660)
Merger and acquisition expense	(2,500)		(11,945)
Interest income, net	492	451	1,089	2,008
Total other income (expense), net	(2,008)	451	(11,516)	2,008
Net income before provision for income taxes	140,488	96,622	329,563	513,949
Provision for income taxes	35,122	30,860	80,575	138,766
Net income	$ 105,366	$ 65,762	$ 248,988	$ 375,183
Net income per common share:
Basic (in dollars per share)	$ 0	$ 0	$ 0.01	$ 0.01
Diluted (in dollars per share)	$ 0	$ 0	$ 0.01	$ 0.01
Weighted average common shares outstanding:
Basic (in shares)	33,870,520	33,870,520	33,870,520	33,870,520
Diluted (in shares)	33,870,520	33,870,520	33,870,520	33,870,520

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
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			65,472	65,472
Balance (in shares) at Dec. 31, 2018	33,870,520
Balance at Dec. 31, 2018	$ 33,871		1,819,220	1,853,091
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				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		1,819,220	1,853,091
Net income			243,949	243,949
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			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
Balance (in shares) at Sep. 30, 2019	33,870,520
Balance at Sep. 30, 2019	$ 33,871		999,803	1,033,674
Net income			49,474	49,474
Balance (in shares) at Dec. 31, 2019	33,870,520
Balance at Dec. 31, 2019	$ 33,871		1,049,277	1,083,148
Balance (in shares) at Sep. 30, 2019	33,870,520
Balance at Sep. 30, 2019	$ 33,871		999,803	1,033,674
Net income				248,988
Balance (in shares) at Jun. 30, 2020	33,870,520
Balance at Jun. 30, 2020	$ 33,871		1,248,791	1,282,662
Balance (in shares) at Dec. 31, 2019	33,870,520
Balance at Dec. 31, 2019	$ 33,871		1,049,277	1,083,148
Net income			94,148	94,148
Balance (in shares) at Mar. 31, 2020	33,870,520
Balance at Mar. 31, 2020	$ 33,871		1,143,425	1,177,296
Net income			105,366	105,366
Balance (in shares) at Jun. 30, 2020	33,870,520
Balance at Jun. 30, 2020	$ 33,871		$ 1,248,791	$ 1,282,662

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net income	$ 248,988	$ 375,183
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation	20,560	21,974
Loss on disposal of equipment	660
Changes in assets and liabilities:
Accounts receivable	(111,274)	(322,203)
Unbilled receivables	(43,424)	(303,478)
Prepaid expenses and other current assets	(176,167)	(106,061)
Accounts payable and accrued expenses	(29,628)	(48,871)
Unearned revenues	(131,353)	(109,363)
Deferred tax liabilities	74,240	71,266
Net cash flows provided by (used in) operating activities	(147,398)	(421,553)
Cash flows from investing activities:
Purchases of property and equipment	(5,241)	(14,139)
Net cash flows provided by (used in) investing activities	(5,241)	(14,139)
Cash flows from financing activities:
Proceeds from PPP note payable	301,750
Collection of related party advance		6,589
Net cash flows provided by (used in) financing activities	301,750	6,589
Net change in cash and cash equivalents	149,111	(429,103)
Cash and cash equivalents at beginning of period	742,173	861,371
Cash and cash equivalents at end of period	891,284	432,268
Supplemental disclosure of cash flow information:
Income taxes paid
Interest paid

Note 1 - Business

Note 1 - Business	9 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Nature of Operations [Text Block]	Mastermind, Inc. Notes to Consolidated Financial Statements ( u naudited) 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, 2020
Notes to Financial Statements
Basis of Accounting [Text Block]	2 . Interim Financial Statements and Basis of Presentation The accompanying unaudited 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, 2020 may not may 10 September 30, 2019 2018 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 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 There have been no 2016 02, 842 December 31, 2019 10 September 30, 2019. In February 2016, 2016 02, 842 2016 02 2016 02 December 31, 2019, October 1, 2019. not 1 2 3 4 October 1, 2019, $461,740 not The recently declared pandemic related to the coronavirus (COVID- 19

Note 3 - Related Party Transact

Note 3 - Related Party Transactions	9 Months Ended
	Jun. 30, 2020
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 June 30, 2020 2019, $15,000 $0, nine June 30, 2020 2019, $30,000 $0, June 30, 2020 September 30, 2019, no On January 3, 2014, 1450 9,000 15,000 not 10 $30,000 $30,000 three June 30, 2020 2019, $90,000 $90,000 nine June 30, 2020 2019, During the three June 30, 2020 2019, $246,113 $250,225, nine June 30, 2020 2019, three $656,563 $750,675, June 30, 2020 September 30, 2019, no three

Note 4 - Property and Equipment

Note 4 - Property and Equipment	9 Months Ended
	Jun. 30, 2020
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, 2020 2019 Furniture, fixtures and office equipment $ 121,239 $ 146,932 Leasehold improvements 73,795 73,795 Property and equipment, gross 195,034 220,727 Less: accumulated depreciation (132,073 ) (141,787 ) Property and equipment, net $ 62,961 $ 78,940 Depreciation expense for the three June 30, 2020 2019 $6,695 $7,169, nine June 30, 2020 2019 $20,560 $21,974,

Note 5 - Income Taxes

Note 5 - Income Taxes	9 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Income Tax Disclosure [Text Block]	5 . Income Taxes 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 There were no June 30, 2020 September 30, 2019. no no

Note 6 - Notes Payable

Note 6 - Notes Payable	9 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Long-term Debt [Text Block]	6 . Notes Payable In April 2020, $301,750 The PPP Loan matures on the two 1.00% six not may All or a portion of the PPP Loan may eight twenty-four $100,000, Not 40% may $100,000 25%.

Note 7 - Stockholders' Equity

Note 7 - Stockholders' Equity	9 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	7 . Stockholders' Equity Preferred Stock As of June 30, 2020 September 30, 2019, 1,000,000 no March 31, 2020 September 30, 2019. Common Stock As of June 30, 2020 September 30, 2019, 125,000,000 33,870,520 Pursuant to the Contribution Agreement in 2018, 29,236,759 three Common Stock Options As of June 30, 2020 September 30, 2019, 525,667 $0.15 no nine June 30, 2020 June 30, 2019. A 2018 four million 4,000,000 85% No June 30, 2020 September 30, 2019.

Note 8 - Concentration of Credi

Note 8 - Concentration of Credit Risk and Major Customers	9 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	8 . Concentration of Credit Risk and Major Customers For the nine June 30, 2020, four 16%, 15%, 13% 10% nine June 30, 2019, one 15% As of June 30, 2020 September 30, 2019, $427,935, 82%, three $347,085, 83%, four

Note 9 - Subsequent Events

Note 9 - Subsequent Events	9 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Subsequent Events [Text Block]	9 . Subsequent Events We evaluated all events or transactions that occurred after the balance sheet date through the date when these financial statements were 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, 2020
Notes Tables
Property, Plant and Equipment [Table Text Block]	June 30, September 30, 2020 2019 Furniture, fixtures and office equipment $ 121,239 $ 146,932 Leasehold improvements 73,795 73,795 Property and equipment, gross 195,034 220,727 Less: accumulated depreciation (132,073 ) (141,787 ) Property and equipment, net $ 62,961 $ 78,940

Note 1 - Business (Details Text

Note 1 - Business (Details Textual) - $ / shares	Feb. 14, 2018	Jun. 30, 2020	Sep. 30, 2019	Apr. 27, 2018
Common Stock, Par or Stated Value Per Share (in dollars 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 (in shares)	29,236,759
Business Acquisition, Consideration Transferred, Owned Percentage of Common Stock Outstanding	85.00%

Note 2 - Interim Financial St_2

Note 2 - Interim Financial Statements and Basis of Presentation (Details Textual) - USD ($)	Jun. 30, 2020	Oct. 01, 2019	Sep. 30, 2019
Operating Lease, Right-of-Use Asset	$ 389,472
Accounting Standards Update 2016-02 [Member]
Operating Lease, Right-of-Use Asset		$ 461,740
Operating Lease, Liability, Total		$ 461,740

Note 3 - Related Party Transa_2

Note 3 - Related Party Transactions (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019	Jan. 03, 2014	Jan. 03, 2012
Finite-Lived License Agreements, Gross							$ 2,170,000
Licensor [Member]
Due to Related Parties, Total	$ 0		$ 0		$ 0
Licensor [Member] | License Payments [Member]
Related Party Transaction, Amounts of Transaction	15,000	$ 0	30,000	$ 0
Landlord [Member]
Lessee, Operating Lease, Term of Contract (Year)						10 years
Payments for Rent	30,000	30,000	90,000	90,000
Majority Shareholder [Member]
Due to Related Parties, Total	0		0		$ 0
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party	$ 246,113	$ 250,225	$ 656,563	$ 750,675

Note 4 - Property and Equipme_3

Note 4 - Property and Equipment (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Depreciation, Total	$ 6,695	$ 7,169	$ 20,560	$ 21,974

Note 4 - Property and Equipme_4

Note 4 - Property and Equipment- Schedule of Property and Equipment (Details) - USD ($)	Jun. 30, 2020	Sep. 30, 2019
Furniture, fixtures and office equipment	$ 121,239	$ 146,932
Leasehold improvements	73,795	73,795
Property and equipment, gross	195,034	220,727
Less: accumulated depreciation	(132,073)	(141,787)
Property and equipment, net	$ 62,961	$ 78,940

Note 5 - Income Taxes (Details

Note 5 - Income Taxes (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total	$ 0	$ 0
Unrecognized Tax Benefits, Ending Balance	$ 0	$ 0

Note 6 - Notes Payable (Details

Note 6 - Notes Payable (Details Textual) - USD ($)	Jun. 30, 2020	Apr. 30, 2020	Sep. 30, 2019
Notes Payable, Noncurrent, Total	$ 301,750
Paycheck Protection Program CARES Act [Member]
Notes Payable, Noncurrent, Total		$ 301,750

Note 7 - Stockholders' Equity (

Note 7 - Stockholders' Equity (Details Textual) - $ / shares	Feb. 14, 2018	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019	Mar. 31, 2020
Preferred Stock, Shares Authorized (in shares)		1,000,000		1,000,000
Preferred Stock, Shares Issued, Total (in shares)		0		0	0
Preferred Stock, Shares Outstanding, Ending Balance (in shares)		0		0	0
Common Stock, Shares Authorized (in shares)		125,000,000		125,000,000
Common Stock, Shares, Issued, Total (in shares)		33,870,520		33,870,520
Common Stock, Shares, Issued, Total (in shares)		33,870,520		33,870,520
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares)		525,667		525,667
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share)		$ 0.15		$ 0.15
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares)		0	0
Percentage of Voting Securities		85.00%
The 2018 Equity Incentive Plan [Member]
Common Stock, Capital Shares Reserved for Future Issuance (in shares)		4,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)		0		0
Reverse Acquisition [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)	29,236,759

Note 8 - Concentration of Cre_2

Note 8 - Concentration of Credit Risk and Major Customers (Details Textual) - Customer Concentration Risk [Member]	9 Months Ended		12 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2019	Sep. 30, 2019USD ($)
Revenue from Contract with Customer Benchmark [Member]
Number of Major Customers	4	1
Revenue from Contract with Customer Benchmark [Member] | Customer 1 [Member]
Concentration Risk, Percentage	16.00%	15.00%
Revenue from Contract with Customer Benchmark [Member] | Customer 2 [Member]
Concentration Risk, Percentage	15.00%
Revenue from Contract with Customer Benchmark [Member] | Customer 3 [Member]
Concentration Risk, Percentage	13.00%
Revenue from Contract with Customer Benchmark [Member] | Customer 4 [Member]
Concentration Risk, Percentage	10.00%
Accounts Receivable [Member]
Number of Customers	3		4
Accounts Receivable [Member] | Three Customers [Member]
Concentration Risk, Percentage	82.00%
Accounts Receivable, after Allowance for Credit Loss, Total	$ 427,935
Accounts Receivable [Member] | Four Customers [Member]
Concentration Risk, Percentage			83.00%
Accounts Receivable, after Allowance for Credit Loss, Total			$ 347,085