Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Mar. 31, 2018 | |
Document and Entity Information: | ||
Entity Registrant Name | Mastermind, Inc. | |
Document Type | 10-K | |
Document Period End Date | Sep. 30, 2018 | |
Trading Symbol | mmnd | |
Amendment Flag | false | |
Entity Central Index Key | 1,088,638 | |
Current Fiscal Year End Date | --09-30 | |
Entity Common Stock, Shares Outstanding | 33,870,520 | |
Entity Public Float | $ 25,486,000 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | FY |
Balance Sheets
Balance Sheets - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 | ||
Current assets | ||||
Cash and cash equivalents | $ 861,371 | $ 545,904 | ||
Accounts receivable | 1,146,312 | 905,245 | ||
Advance to related party | 6,589 | |||
Prepaid expenses and other current assets | 23,611 | 50,000 | ||
Total current assets | 2,037,883 | 1,501,149 | ||
Property and equipment, net | 92,685 | 97,812 | ||
Total assets | 2,130,568 | 1,598,961 | ||
Current liabilities | ||||
Accounts payable and accrued expenses | 123,862 | 134,018 | ||
Unearned revenues | 109,363 | 266,473 | ||
Deferred tax liabilities | 109,724 | |||
Related party note payable | 212,290 | |||
Advance from related party | 13,486 | |||
Total current liabilities | 342,949 | 626,267 | ||
Total liabilities | 342,949 | 626,267 | ||
Stockholders' equity | ||||
Preferred stock | [1] | [2] | ||
Common stock | 33,871 | [3] | 29,237 | [4] |
Retained earnings | 1,753,748 | 943,457 | ||
Total stockholders' equity | 1,787,619 | 972,694 | ||
Total liabilities and stockholders' equity | $ 2,130,568 | $ 1,598,961 | ||
[1] | $.001 par value, 1,000,000 shares authorized; 0 shares issued and outstanding as of 9/30/2018. | |||
[2] | $.001 par value, 1,000,000 shares authorized; 0 shares issued and outstanding as of 9/30/2017. | |||
[3] | $.001 par value, 125,000,000 shares authorized; 33,870,520 shares issued and outstanding as of 9/30/2018. | |||
[4] | $.001 par value, 4,999,000,000 shares authorized; 29,236,759 shares issued and outstanding as of 9/30/2017. |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement | ||
Revenues | $ 5,229,465 | $ 4,264,922 |
Cost of revenues | 744,787 | 981,455 |
Gross profit | 4,484,678 | 3,283,467 |
Expenses | ||
General and administrative | 3,234,450 | 2,267,213 |
Total expenses | 3,234,450 | 2,267,213 |
Income (loss) from operations | 1,250,228 | 1,016,254 |
Other expenses: | ||
Merger costs | 50,000 | |
Interest expense to related party | 11,566 | 24,648 |
Interest income | (3,010) | (2,061) |
Other income, net | (1,727) | (357) |
Total other expense | 56,829 | 22,230 |
Income (loss) before provision for taxes | 1,193,399 | 994,024 |
Provision for income taxes | 278,474 | |
Net income (loss) | $ 914,925 | $ 994,024 |
Shares used in computing netincome (loss) per common share, basic | 32,139,225 | 29,236,759 |
Shares used in computing net income (loss) per common share, diluted | 32,139,225 | 29,236,759 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - 12 months ended Sep. 30, 2018 - USD ($) | Total | Common Stock | Retained Earnings | Total Stockholders' Equity | |
Effect of reverse merger, Value at Sep. 30, 2017 | $ 29,237 | [1] | $ 29,237 | $ 249,433 | $ 278,670 |
Effect of reverse merger, Shares at Sep. 30, 2017 | 29,236,759 | ||||
Stockholders' equity, start of period, Value at Sep. 30, 2017 | 972,694 | $ 29,237 | 943,457 | 972,694 | |
Stockholders' equity, start of period, Shares at Sep. 30, 2017 | 29,236,759 | ||||
Effect of reverse merger, Value at Sep. 30, 2018 | 33,871 | [2] | $ 4,634 | (4,634) | |
Effect of reverse merger, Shares at Sep. 30, 2018 | 4,633,761 | ||||
Distributions | (100,000) | (100,000) | (100,000) | ||
Net income | 914,925 | 914,925 | 914,925 | ||
Stockholders' equity, end of period, Value at Sep. 30, 2018 | $ 1,787,619 | $ 33,871 | $ 1,753,748 | $ 1,787,619 | |
Stockholders' equity, end of period, Shares at Sep. 30, 2018 | 33,870,520 | ||||
[1] | $.001 par value, 4,999,000,000 shares authorized; 29,236,759 shares issued and outstanding as of 9/30/2017. | ||||
[2] | $.001 par value, 125,000,000 shares authorized; 33,870,520 shares issued and outstanding as of 9/30/2018. |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities | ||
Net income | $ 914,925 | $ 994,024 |
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities: | ||
Depreciation | 29,062 | 27,945 |
Changes in assets and liabilities: | ||
Increase (decrease) in accounts receivable | (241,067) | (108,102) |
Increase (decrease) in prepaids and other current assets | 26,389 | (50,000) |
Increase (decrease) in accounts payable and accrued expenses | (10,156) | 19,281 |
Increase (decrease) in unearned revenues | (157,110) | (284,275) |
Increase (decrease) in deferred tax liabilities | 109,724 | |
Net cash flows provided by (used in) operating activities | 671,767 | 598,873 |
Cash flows from investing activities | ||
Purchase of equipment | (23,935) | (7,638) |
Net cash flows provided by (used in) investing activities | (23,935) | (7,638) |
Cash flows from financing activities | ||
Distributions | (100,000) | (300,000) |
Proceeds from (repayment of) related party note | (212,290) | (121,222) |
Repayment of related party advance | (13,486) | (64) |
Advance to related party | (6,589) | |
Net cash flows provided by (used in) financing activities | (332,365) | (421,286) |
Net change in cash | 315,467 | 169,949 |
Cash at beginning of period | 545,904 | 375,955 |
Cash at end of period | 861,371 | 545,904 |
Supplemental disclosures of cash flow information | ||
Income taxes paid | 168,750 | |
Interest expense to related party | $ 11,566 | $ 24,648 |
Business
Business | 12 Months Ended |
Sep. 30, 2018 | |
Notes | |
Business | 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 digital content, designing websites, social media and sharing campaigns, mobile merchandising, and communications and branding. On February 14, 2018, we consummated a transactions pursuant to a Joint Venture Interest Contribution Agreement (the Contribution Agreement) made and entered into as of February 14, 2018 by and among (i) us, (ii) Mastermind Involvement Marketing, a Georgia joint venture (MIM), and (iii) Mastermind Marketing, Inc, a Georgia Corporation (MM Inc.), Digital Advize, LLC, a Georgia limited liability company (Advize), and Villanta Corporation, a Georgia Corporation (Villanta, together with Advize and MM Inc., the Sellers or Majority Stockholders). Pursuant to the Contribution Agreement the Sellers contributed, transferred, assigned and conveyed to us all right, title and interest in and to one hundred percent (100%) of such joint venture interest in MIM (the Contributed Joint Venture Interest), together with any and all rights, privileges, benefits, obligations and liabilities appertaining thereto, reserving unto such Seller no rights or interests therein whatsoever, and (ii) we accepted the contribution of the Contributed Joint Venture Interest, and in consideration for such contribution the Sellers collectively were entitled to receive from us 29,236,759 shares of our common stock, $.001 par value (the Common Stock) representing 85% of our total outstanding Common Stock after the issuance of the Contribution Consideration (the Contribution Consideration) with each Seller receiving for its respective percentage of Contributed Joint Venture Interest that same percentage of the Contribution Consideration (such transaction, the Business Combination). As a result of the Business Combination, the Sellers became our controlling shareholders of and we became a wholly-owned subsidiary. The Business Combination was treated as a reverse acquisition for accounting purposes, whereby MIM is considered the acquirer for accounting purposes, and our historical financial statements before the Business Combination will be replaced with the historical financial statements of MIM and its consolidated entities before the Business Combination in all future filings. On April 19, 2018, our Board of Directors took action by written consent to approve an amendment to our certificate of incorporation (the Amended Certificate) to change of our name from CoConnect, Inc. to Mastermind, Inc. (the Name Change), subject to stockholder approval. On April 27, 2018, in lieu of a meeting of our stockholders, and pursuant to Section 78.320 of the Nevada Revised Statutes of the State of Nevada, the Majority Stockholders, who represent 85% of our voting securities, approved the Amended Certificate, by written consent. On May 24, 2018, we filed the Certificate of Amendment with the Secretary of State of the State of Nevada to change our name to Mastermind, Inc. Fiscal Year Our fiscal year ends on September 30. References herein to fiscal 2018 and/or fiscal 2017 refer to the fiscal years ended September 30, 2018 and/or 2017, respectively. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2018 | |
Notes | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Accounting Principles The financial statements and accompanying notes are prepared in accordance with U.S. generally accepted accounting principles (GAAP). Use of Accounting Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash includes cash on hand. Cash equivalents include short-term, highly liquid investments, with a remaining maturity at the date of purchase of three months or less for which the risk of changes in value is considered to be insignificant. Accounts Receivable We perform various analyses to evaluate accounts receivable balances and specifically identify those accounts which may present them as a risk with respect to collectability of the accounts such that the amounts would reflect estimated net realizable value. Account balances are charged off after significant collection efforts have been made and potential for recovery is not considered probable. During the fiscal years ended September 30, 2018 and 2017, we did not record any bad debts. As of September 30, 2018 and 2017, we evaluated our accounts receivables and determined that an allowance for doubtful accounts was not required. Property and Equipment Property and equipment are stated at cost. Equipment is depreciated using the straight-line method over the estimated useful lives of the assets, ranging from three to seven years. Leasehold improvements are amortized using the straight-line method over the remaining estimated life of the lease at the time the improvement is put into service. Expenditures for repairs and maintenance are charged to expense as incurred. Revenue Recognition Our revenue recognition policy follows the guidance from Accounting Standards Codification (ASC) 605, Revenue Recognition, and Accounting Standards Update (ASU) 2009-13, Multiple-Deliverable Revenue Arrangements, which provides guidance on the recognition, presentation, and disclosure of revenue in financial statements. The Company recognizes revenues when all of the following criteria are satisfied: (i) persuasive evidence of an arrangement exists; (ii) the price is fixed or determinable; (iii) collectability is reasonably assured; and (iv) the service has been performed or the product has been delivered. Reimbursements related to travel and out-of-pocket expenses are also included revenues. Revenue from our involvement marketing services and contracts are typically billed based on time and materials or at a fixed price. If billed at a fixed price, revenue is recognized on a proportional performance basis as the services specified in the arrangement are performed. The determination of proportional performance revenue recognition is dependent on the nature of the services specified in the arrangement. Advanced payments on services and contracts are deferred and recorded as unearned revenues on our balance sheet until the earnings process has been completed and revenue is then recognized. Fair Value of Financial Instruments We follow Accounting Standards Codification 820-10 (ASC 820-10), Fair Value Measurements and Disclosures, for fair value measurements. ASC 820-10 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The standard provides a consistent definition of fair value, which focuses on an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard also prioritizes, within the measurement of fair value, the use of market-based information over entity specific information and establishes a three-level hierarchy for fair value measurement based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. The hierarchy established under ASC 820-10 gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under ASC 820-10 are described below: Level 1 - Pricing inputs are quoted prices available in active markets for identical investments as of the reporting date. As required by ASC 820-10, we do not adjust the quoted price for these investments, even in situations where we hold a large position and a sale could reasonably impact the quoted price. Level 2 - Pricing inputs are quoted prices for similar investments, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data. Level 2 includes investments valued at quoted prices adjusted for legal or contractual restrictions specific to these investments. Level 3 - Pricing inputs are unobservable for the investment, that is, inputs that reflect the reporting entitys own assumptions about the assumptions market participants would use in pricing the asset or liability. Level 3 includes investments that are supported by little or no market activity. Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable in accordance with ASC 360, Property, Plant and Equipment. For assets that are to be held and used, impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable. Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value. For the fiscal years ended September 30, 2018 and 2017 there has not been any impairment of long-lived assets. Income Taxes Prior to February 14, 2018, the effective date of the Business Combination, no provision for income taxes was recorded since we were treated as a partnership for income tax purposes and the income or loss was passed through to our members. 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 disagree with respect to the income tax positions taken by us (uncertain tax positions) and, therefore, may require us to pay additional taxes. As required under applicable accounting rules, we accrue an amount for our estimate of additional income tax liability, including interest and penalties, which we could incur as a result of the ultimate or effective resolution of the uncertain tax positions. We account for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carry-forwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to amounts expected to be realized. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Stock-Based Compensation Stock-based compensation is measured at the grant date based on the estimated fair value of the award and is recognized as an expense over the requisite service period. The valuation of employee stock options is an inherently subjective process, since market values are generally not available for long-term, non-transferable employee stock options. Accordingly, the Black-Scholes option pricing model is utilized to derive an estimated fair value. The Black-Scholes pricing model requires the consideration of the following six variables for purposes of estimating fair value: · · · · · · Expected Dividends. Expected Volatility. Risk-Free Interest Rate. Expected Term. Stock Option Exercise Price and Grant Date Price of Common Stock. We are required to estimate the level of award forfeitures expected to occur and record compensation expense only for those awards that are ultimately expected to vest. This requirement applies to all awards that are not yet vested. Due to the limited number of unvested options outstanding, the majority of which are held by executives and members of our Board of Directors, we have estimated a zero forfeiture rate. We will revisit this assumption periodically and as changes in the composition of the option pool dictate. Recent Accounting Pronouncements We have evaluated all issued but not yet effective accounting pronouncements and determined that, other than the following, they are either immaterial or not relevant to us. In February 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) ASU 2016 - 02 Leases intended to improve financial reporting about leasing transactions. The ASU affects all companies and other organizations that lease assets such as real estate, office equipment and manufacturing equipment. The ASU will require organizations that lease assets - referred to as lessees - to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current Generally Accepted Accounting Principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP - which requires only capital leases to be recognized on the balance sheet - the new ASU will require both types of leases to be recognized on the balance sheet. The ASU also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The accounting by organizations that own the assets leased by the lessee - also known as lessor accounting - will remain largely unchanged from current GAAP. However, the ASU contains some targeted improvements that are intended to align, where necessary, lessor accounting with the lessee accounting model and with the updated revenue recognition guidance issued in 2014. The ASU on leases will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other organizations, the ASU on leases will take effect for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020. We are currently evaluating the impact upon adoption on our results of operations, cash flows and financial condition. In March 2016, the FASB issued ASU 2016 - 09 Improvements to Employee Share-Based Payment Accounting which is intended to improve the accounting for employee share-based payments. The ASU affects all organizations that issue share-based payment awards to their employees. The ASU, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, simplifies several aspects of the accounting for share-based payment award transactions, including; the income tax consequences, classification of awards as either equity or liabilities, and the classification on the statement of cash flows. The ASU simplifies two areas specific to private companies, with regards to the expected term and intrinsic value measurements. The ASU simplifies the following areas to private and public companies; (a) tax benefits and tax deficiencies with regards to the differences between book and tax deductions, (b) changes in the excess tax benefits classification in the statement of cash flows, (c) make an entity wide accounting policy election for accrual of vested awards verses individual awards, (d) changes in the amount qualifying as an equity award classification subject to statutory tax withholdings, (e) clarification in the classification of shares withheld for statutory tax withholdings on the statement of cash flows. For public companies, the amendments in this ASU are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For private companies, the amendments are effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted for any organization in any interim or annual period. It is not anticipated that this guidance will have a material impact on our results of operations, cash flows or financial condition. In January 2016, the FASB issued ASU 2016 - 01 Recognition and Measurement of Financial Assets and Financial Liabilities, intended to improve the recognition and measurement of financial instruments. The ASU affects public and private companies, not-for-profit organizations, and employee benefit plans that hold financial assets or owe financial liabilities. The new guidance makes targeted improvements to existing GAAP by: Requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; Requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; Requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; Eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for organizations that are not public business entities; Eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and Requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as own credit) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The ASU on recognition and measurement will take effect for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For private companies, not-for-profit organizations, and employee benefit plans, the standard becomes effective for fiscal years beginning after December 15, 2018, and for interim periods within fiscal years beginning after December 15, 2019. The ASU permits early adoption of the own credit provision (referenced above). Additionally, it permits early adoption of the provision that exempts private companies and not-for-profit organizations from having to disclose fair value information about financial instruments measured at amortized cost. It is not anticipated that this guidance will have a material impact on our results of operations, cash flows or financial condition. In April 2016, the FASB issued ASU 2016 - 10 Revenue from Contract with Customers (Topic 606): identifying Performance Obligations and Licensing. The amendments in this Update do not change the core principle of the guidance in Topic 606. Rather, the amendments in this Update clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. Topic 606 includes implementation guidance on (a) contracts with customers to transfer goods and services in exchange for consideration and (b) determining whether an entitys promise to grant a license provides a customer with either a right to use the entitys intellectual property (which is satisfied at a point in time) or a right to access the entitys intellectual property (which is satisfied over time). The amendments in this Update are intended to render more detailed implementation guidance with the expectation to reduce the degree of judgement necessary to comply with Topic 606. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update2014-09 by one year. It is not anticipated that this updated guidance will have a material impact on our results of operations, cash flows or financial condition. In November 2016, the FASB issued ASU 2016-20, an amendment to ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU addressed several areas related to contracts with customers. This topic is not yet effective and will become effective with Topic 606. We are currently evaluating the impact this topic will have on our financial statements. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2018 | |
Notes | |
Related Party Transactions | 3. Related Party Transactions On January 3, 2012, we entered into a perpetual license agreement (the Perpetual License) with Mastermind Marketing, Inc. (the Licensor), which provides for licenses of trademarks, internet domains, and certain intellectual property as defined in the Perpetual License. The Licensor is one of our members and its chief executive officer is also our chief executive officer. The Perpetual License, which may be terminated at any time by either party, is effective January 3, 2012 and provides for aggregate payments of $2,170,000 over the calendar years from 2019 through 2039 with no further payments required after December 31, 2039. During the fiscal year ended and as of September 30, 2018 and 2017, there were no license fee payments required or payable. On January 3, 2014, we entered into a commercial lease agreement (the Lease) with 1450 West Peachtree, LLC, a Georgia limited liability company (the Landlord), for the lease of our corporate facility in Atlanta, Georgia. In connection with the Lease, we have entered into a sublease agreement which provides for the sublease of 9,000 square feet of the total 15,000 of the demised property. The sublessor is not a related party. The manager of the Landlord is also our chief executive officer. The term of the lease is 10 years from the date of the agreement and provides for monthly rent and payment of operating expenses on a triple-net basis. During the fiscal year ended September 30, 2018 and 2017, we made lease payments of $120,000 and $120,000, respectively, to the Landlord in satisfaction of our obligation pursuant to the Lease, net of payments made by the sublessee. During the fiscal year ended September 30, 2017, the sublessee to the Lease remitted $13,486 to us for the benefit of the Landlord. In December 2017, we remitted this payment in full to the Landlord. As of September 30, 2018 and 2017, we recorded $6,589 as a receivable associated with the lease and $13,486 as a related party payable in our balance sheet, respectively. On December 12, 2016, we executed a promissory note (the Note), in the principal amount of $500,000, with Mastermind Marketing, Inc. The principal of the Note, including all accrued interest, is due and payable on December 12, 2018. During the term of the Note, interest is payable monthly at a rate equal to the greater of 3.75% per annum or the prime rate published in the Wall Street Journal on the last day of the month plus one-half percent (1/2%), however the interest rate will not exceed 5.5% per annum. During the fiscal year ended September 30, 2018 and 2017, we recorded interest expense of $11,566 and $24,648, respectively. As of September 30, 2018 and 2017, we recorded no accrued interest. As of September 30, 2018 and 2017, the principal balance outstanding was $0 and $212,290, respectively. During the fiscal years ended September 30, 2018 and 2017, we made payments to our three members pursuant to the terms of our operating agreement, as amended, for services rendered to us. The total payments made to our three members during the fiscal years ended September 30, 2018 and 2017 aggregated $751,240 and $451,914, respectively. As of September 30, 2018 and 2017, we had no obligations payable to our three members for consulting services. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Sep. 30, 2018 | |
Notes | |
Property, Plant and Equipment | 4. Property, Plant and Equipment Property, plant and equipment consist of the following: September 30, (in thousands) 2018 2017 Furniture, fixtures and office equipment $ 131,487 $ 107,552 Leasehold improvements 73,795 73,795 205,282 181,347 Less: accumulated depreciation (112,597) (83,535) $ 92,685 $ 97,812 Depreciation expense for the fiscal years ended September 30, 2018 and 2017 was $29,062 and $27,945, respectively. |
Licensing Agreements
Licensing Agreements | 12 Months Ended |
Sep. 30, 2018 | |
Notes | |
Licensing Agreements | 5. Licensing Agreements On January 3, 2012, we entered into a perpetual license agreement (the Perpetual License) with Mastermind Marketing, Inc. (the Licensor), which provides for licenses of trademarks, internet domains, and certain intellectual property as defined in the Perpetual License. The Licensor is one of our members and its chief executive officer is also our chief executive officer. The Perpetual License, which may be terminated at any time by either party, is effective January 3, 2012 and provides for aggregate payments of $2,170,000 over the calendar years from 2019 through 2039 with no further payments required after December 31, 2039. During the fiscal year ended and as of September 30, 2018 and 2017, there were no license fee payments required or payable. In consideration for the Perpetual License, we agreed to pay the following fees through calendar year 2039: Fiscal Years Ending September 30, 2019 $ 45,000 2020 60,000 2021 60,000 2022 60,000 2023 60,000 Thereafter 1,885,000 $ 2,170,000 |
Commitments
Commitments | 12 Months Ended |
Sep. 30, 2018 | |
Notes | |
Commitments | <tr align="left"> <td valign="bottom" style='border:none;border-bottom:solid windowtext 1.0pt;padding:.7pt .7pt 0in .7pt'> <p style='margin:0in;margin-bottom:.0001pt'>Fiscal Years Ending September 30,</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:.7pt .7pt 0in .7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b><font style='font-weight:bold'>Total Lease Commitment</font></b></p> </td> <td width="10" valign="bottom" style='width:.1in;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b><font style='font-weight:bold'>Lease Commitment Net of Sublease</font></b></p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:.7pt .7pt 0in 6.1pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-6.1pt'> 2019</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:.7pt .7pt 0in .7pt'> <p style='margin:0in;margin-bottom:.0001pt'> $ 302,550</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="top" style='width:1.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> $ 120,000</p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:.7pt .7pt 0in 6.1pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-6.1pt'> 2020</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:.7pt .7pt 0in .7pt'> <p style='margin:0in;margin-bottom:.0001pt'> 324,000</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="top" style='width:1.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> 120,000</p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:.7pt .7pt 0in 6.1pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-6.1pt'> 2021</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:.7pt .7pt 0in .7pt'> <p style='margin:0in;margin-bottom:.0001pt'> 348,000</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="top" style='width:1.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> 120,000</p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:.7pt .7pt 0in 6.1pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-6.1pt'> 2022</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:.7pt .7pt 0in .7pt'> <p style='margin:0in;margin-bottom:.0001pt'> 363,000</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="top" style='width:1.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> 120,000</p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:.7pt .7pt 0in 6.1pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-6.1pt'> 2023</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:.7pt .7pt 0in .7pt'> <p style='margin:0in;margin-bottom:.0001pt'> 384,000</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="top" style='width:1.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> 120,000</p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:.7pt .7pt 0in 6.1pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-6.1pt'> Thereafter</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:.7pt .7pt 0in .7pt'> <p style='margin:0in;margin-bottom:.0001pt'> 97,500</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="top" style='width:1.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> 30,000</p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'></td> <td width="10" valign="top" style='width:.1in;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;padding:.7pt .7pt 0in .7pt'> <p style='margin:0in;margin-bottom:.0001pt'> $ 1,819,050</p> </td> <td width="10" valign="top" style='width:.1in;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="top" style='width:1.0in;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> $ 630,000</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'> </p>" id="sjs-B4"><!--egx--><p style='margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:.25in;text-align:justify;text-indent:-.25in'><b><font style='font-weight:bold'>6. </font></b><b><font style='font-weight:bold'>Commitments</font></b></p> <p style='margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-align:justify;text-indent:.25in'>On January 3, 2014, we entered into a commercial lease agreement (the “Lease”) with 1450 West Peachtree, LLC, a Georgia limited liability company (the “Landlord”), for the lease of our corporate facility in Atlanta, Georgia. In connection with the Lease, we have entered into a sublease agreement which provides for the sublease of 9,000 square feet of the total 15,000 of the demised property. The sublessor is not a related party. The manager of the Landlord is also our chief executive officer. The term of the lease is 10 years from the date of the agreement and provides for monthly rent and payment of operating expenses on a triple-net basis. During the fiscal year ended September 30, 2018 and 2017, we made lease payments of $120,000 and $120,000, respectively, in satisfaction of our obligation pursuant to the Lease, net of payments made by the sublessee.</p> <p style='margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-align:justify;text-indent:.25in'>The Lease provides for the following total lease commitments pursuant to the Lease and our portion of the lease commitments net of the sublease:</p> <table border="0" cellspacing="0" cellpadding="0" width="600" style='width:6.25in;margin-left:18.7pt;border-collapse:collapse'> <tr align="left"> <td valign="bottom" style='border:none;border-bottom:solid windowtext 1.0pt;padding:.7pt .7pt 0in .7pt'> <p style='margin:0in;margin-bottom:.0001pt'>Fiscal Years Ending September 30,</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:.7pt .7pt 0in .7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b><font style='font-weight:bold'>Total Lease Commitment</font></b></p> </td> <td width="10" valign="bottom" style='width:.1in;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b><font style='font-weight:bold'>Lease Commitment Net of Sublease</font></b></p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:.7pt .7pt 0in 6.1pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-6.1pt'>  2019</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:.7pt .7pt 0in .7pt'> <p style='margin:0in;margin-bottom:.0001pt'>   $        302,550</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="top" style='width:1.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>   $        120,000</p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:.7pt .7pt 0in 6.1pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-6.1pt'>  2020</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:.7pt .7pt 0in .7pt'> <p style='margin:0in;margin-bottom:.0001pt'>             324,000</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="top" style='width:1.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>             120,000</p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:.7pt .7pt 0in 6.1pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-6.1pt'>  2021</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:.7pt .7pt 0in .7pt'> <p style='margin:0in;margin-bottom:.0001pt'>             348,000</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="top" style='width:1.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>             120,000</p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:.7pt .7pt 0in 6.1pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-6.1pt'>  2022</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:.7pt .7pt 0in .7pt'> <p style='margin:0in;margin-bottom:.0001pt'>             363,000</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="top" style='width:1.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>             120,000</p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:.7pt .7pt 0in 6.1pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-6.1pt'>  2023</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:.7pt .7pt 0in .7pt'> <p style='margin:0in;margin-bottom:.0001pt'>             384,000</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="top" style='width:1.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>             120,000</p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:.7pt .7pt 0in 6.1pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-6.1pt'>    Thereafter</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;padding:.7pt .7pt 0in .7pt'> <p style='margin:0in;margin-bottom:.0001pt'>               97,500</p> </td> <td width="10" valign="top" style='width:.1in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="top" style='width:1.0in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>                30,000</p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'></td> <td width="10" valign="top" style='width:.1in;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="bottom" style='width:1.0in;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;padding:.7pt .7pt 0in .7pt'> <p style='margin:0in;margin-bottom:.0001pt'>   $     1,819,050</p> </td> <td width="10" valign="top" style='width:.1in;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'> </p> </td> <td width="96" valign="top" style='width:1.0in;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>   $        630,000</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'> </p> |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2018 | |
Notes | |
Income Taxes | 7. Income Taxes Prior to February 14, 2018, the effective date of the Business Combination, no provision for income taxes was made since we were treated as a partnership for income tax purposes and the income or loss was passed through to our members. 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 disagree with respect to the income tax positions taken by us (uncertain tax positions) and, therefore, may require us to pay additional taxes. As required under applicable accounting rules, we accrue an amount for our estimate of additional income tax liability, including interest and penalties, which we could incur as a result of the ultimate or effective resolution of the uncertain tax positions. We account for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carry-forwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to amounts expected to be realized. As of September 30, 2018, we had no material unrecognized tax benefits and no adjustments to liabilities or operations were required. Tax years 2016 through 2018 are subject to examination by the federal and state taxing authorities. There are no income tax examinations currently in process. Reconciliation between our effective tax rate and the United States statutory rate is as follows for the period from the date of the business combination to September 30, 2018: Expected federal tax rate 21.0% State income taxes, net of federal benefit 6.0% Utilization of net operating loss (3.7%) Effective tax rate 23.3% In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Significant components of our deferred tax assets and deferred tax liabilities consist of the following: September 30, 2018 Deferred Tax Assets: Current assets 28,718 Deferred tax liabilities 28,718 Deferred Tax Liabilities: Current liabilities 138,442 Deferred tax assets 138,442 Net deferred tax liabilities $ 109,724 On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the Tax Act) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a federal corporate tax rate decrease from 35% to 21% for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of foreign earnings. We have estimated our provision for income taxes in accordance with the Tax Act and guidance available as of the date of this filing but have kept the full valuation allowance. On December 22, 2017, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The deferred tax expense recorded in connection with the remeasurement of deferred tax assets is a provisional amount and a reasonable estimate at December 31, 2017 based upon the best information currently available. The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Act. Any subsequent adjustment to these amounts will be recorded to current tax expense in the quarter of 2018 when the analysis is complete. The accounting is expected to be complete when the 2018 U.S. corporate income tax return is filed in 2019. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2018 | |
Notes | |
Stockholders' Equity | 8. Stockholders Equity Preferred Stock We are authorized to issue 1,000,000 shares of preferred stock and we have designated among that preferred stock 100,000 shares of Series A Preferred Stock and 100,000 shares of Series B Preferred Stock. There are no shares of Series A or Series B Preferred Stock issued or outstanding as of September 30, 2018 and 2017. Common Stock Pursuant to the Contribution Agreement, we issued 29,236,759 shares of our common stock, in the aggregate, to Mastermind Marketing, Inc, a Georgia Corporation, Digital Advize, LLC, a Georgia limited liability company, and Villanta Corporation, a Georgia Corporation. These three entities are controlled by Daniel A. Dodson, Ricardo Rios, and Michael Gelfond; respectively. Messrs, Dodson, Rios and Gelfond were appointed as our executive officers upon the consummation of the Business Consummation. Distributions During the fiscal years ended September 30, 2018 and 2017, we made cash distributions, in the aggregate, of $100,000 and $300,000, respectively, to our members prior to the Business Combination. Common Stock Options As of September 30, 2018, there were fully-vested, non-qualified stock options exercisable by Mr. Bennett Yankowitz, our former chief executive officer and sole director into 525,667 shares of our common stock at an exercise price of $0.15 per share. There were no stock options exercised during the fiscal year ended September 30, 2018. |
Contingencies
Contingencies | 12 Months Ended |
Sep. 30, 2018 | |
Notes | |
Contingencies | 9. Contingencies We are not a party to any legal proceedings, other than ordinary routine litigation incidental to our business, which we believe will not have a material effect on our financial position or results of operations. |
Concentration of Credit Risk an
Concentration of Credit Risk and Major Customers | 12 Months Ended |
Sep. 30, 2018 | |
Notes | |
Concentration of Credit Risk and Major Customers | 10. Concentration of Credit Risk and Major Customers and Suppliers For the fiscal year ended September 30, 2018, there were no clients individually representing 10% or more of our total revenues. For the fiscal year ended September 30, 2017, three clients represented approximately 47% of our total revenues. As of September 30, 2018 and 2017, we had accounts receivable of $507,031, or approximately 62%, due from four customers; and $578,066, or 64%, due from two customers, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2018 | |
Notes | |
Subsequent Events | 11. 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 have any material recognizable or disclosable subsequent events. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies: Accounting Principles (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Policies | |
Accounting Principles | Accounting Principles The financial statements and accompanying notes are prepared in accordance with U.S. generally accepted accounting principles (GAAP). |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies: Use of Accounting Estimates (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Policies | |
Use of Accounting Estimates | Use of Accounting Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Policies | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash includes cash on hand. Cash equivalents include short-term, highly liquid investments, with a remaining maturity at the date of purchase of three months or less for which the risk of changes in value is considered to be insignificant. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies: Accounts Receivable (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Policies | |
Accounts Receivable | Accounts Receivable We perform various analyses to evaluate accounts receivable balances and specifically identify those accounts which may present them as a risk with respect to collectability of the accounts such that the amounts would reflect estimated net realizable value. Account balances are charged off after significant collection efforts have been made and potential for recovery is not considered probable. During the fiscal years ended September 30, 2018 and 2017, we did not record any bad debts. As of September 30, 2018 and 2017, we evaluated our accounts receivables and determined that an allowance for doubtful accounts was not required. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies: Property and Equipment (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Policies | |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Equipment is depreciated using the straight-line method over the estimated useful lives of the assets, ranging from three to seven years. Leasehold improvements are amortized using the straight-line method over the remaining estimated life of the lease at the time the improvement is put into service. Expenditures for repairs and maintenance are charged to expense as incurred. |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies: Revenue Recognition (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Policies | |
Revenue Recognition | Revenue Recognition Our revenue recognition policy follows the guidance from Accounting Standards Codification (ASC) 605, Revenue Recognition, and Accounting Standards Update (ASU) 2009-13, Multiple-Deliverable Revenue Arrangements, which provides guidance on the recognition, presentation, and disclosure of revenue in financial statements. The Company recognizes revenues when all of the following criteria are satisfied: (i) persuasive evidence of an arrangement exists; (ii) the price is fixed or determinable; (iii) collectability is reasonably assured; and (iv) the service has been performed or the product has been delivered. Reimbursements related to travel and out-of-pocket expenses are also included revenues. Revenue from our involvement marketing services and contracts are typically billed based on time and materials or at a fixed price. If billed at a fixed price, revenue is recognized on a proportional performance basis as the services specified in the arrangement are performed. The determination of proportional performance revenue recognition is dependent on the nature of the services specified in the arrangement. Advanced payments on services and contracts are deferred and recorded as unearned revenues on our balance sheet until the earnings process has been completed and revenue is then recognized. |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Policies | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We follow Accounting Standards Codification 820-10 (ASC 820-10), Fair Value Measurements and Disclosures, for fair value measurements. ASC 820-10 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The standard provides a consistent definition of fair value, which focuses on an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard also prioritizes, within the measurement of fair value, the use of market-based information over entity specific information and establishes a three-level hierarchy for fair value measurement based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. The hierarchy established under ASC 820-10 gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under ASC 820-10 are described below: Level 1 - Pricing inputs are quoted prices available in active markets for identical investments as of the reporting date. As required by ASC 820-10, we do not adjust the quoted price for these investments, even in situations where we hold a large position and a sale could reasonably impact the quoted price. Level 2 - Pricing inputs are quoted prices for similar investments, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data. Level 2 includes investments valued at quoted prices adjusted for legal or contractual restrictions specific to these investments. Level 3 - Pricing inputs are unobservable for the investment, that is, inputs that reflect the reporting entitys own assumptions about the assumptions market participants would use in pricing the asset or liability. Level 3 includes investments that are supported by little or no market activity. |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies: Impairment of Long-lived Assets (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Policies | |
Impairment of Long-lived Assets | Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable in accordance with ASC 360, Property, Plant and Equipment. For assets that are to be held and used, impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable. Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value. For the fiscal years ended September 30, 2018 and 2017 there has not been any impairment of long-lived assets. |
Summary of Significant Accou_10
Summary of Significant Accounting Policies: Income Taxes (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Policies | |
Income Taxes | Income Taxes Prior to February 14, 2018, the effective date of the Business Combination, no provision for income taxes was recorded since we were treated as a partnership for income tax purposes and the income or loss was passed through to our members. 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 disagree with respect to the income tax positions taken by us (uncertain tax positions) and, therefore, may require us to pay additional taxes. As required under applicable accounting rules, we accrue an amount for our estimate of additional income tax liability, including interest and penalties, which we could incur as a result of the ultimate or effective resolution of the uncertain tax positions. We account for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carry-forwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to amounts expected to be realized. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. |
Summary of Significant Accou_11
Summary of Significant Accounting Policies: Stock-based Compensation (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Policies | |
Stock-based Compensation | Stock-Based Compensation Stock-based compensation is measured at the grant date based on the estimated fair value of the award and is recognized as an expense over the requisite service period. The valuation of employee stock options is an inherently subjective process, since market values are generally not available for long-term, non-transferable employee stock options. Accordingly, the Black-Scholes option pricing model is utilized to derive an estimated fair value. The Black-Scholes pricing model requires the consideration of the following six variables for purposes of estimating fair value: · · · · · · Expected Dividends. Expected Volatility. Risk-Free Interest Rate. Expected Term. Stock Option Exercise Price and Grant Date Price of Common Stock. We are required to estimate the level of award forfeitures expected to occur and record compensation expense only for those awards that are ultimately expected to vest. This requirement applies to all awards that are not yet vested. Due to the limited number of unvested options outstanding, the majority of which are held by executives and members of our Board of Directors, we have estimated a zero forfeiture rate. We will revisit this assumption periodically and as changes in the composition of the option pool dictate. |
Summary of Significant Accou_12
Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements We have evaluated all issued but not yet effective accounting pronouncements and determined that, other than the following, they are either immaterial or not relevant to us. In February 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) ASU 2016 - 02 Leases intended to improve financial reporting about leasing transactions. The ASU affects all companies and other organizations that lease assets such as real estate, office equipment and manufacturing equipment. The ASU will require organizations that lease assets - referred to as lessees - to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current Generally Accepted Accounting Principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP - which requires only capital leases to be recognized on the balance sheet - the new ASU will require both types of leases to be recognized on the balance sheet. The ASU also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The accounting by organizations that own the assets leased by the lessee - also known as lessor accounting - will remain largely unchanged from current GAAP. However, the ASU contains some targeted improvements that are intended to align, where necessary, lessor accounting with the lessee accounting model and with the updated revenue recognition guidance issued in 2014. The ASU on leases will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other organizations, the ASU on leases will take effect for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020. We are currently evaluating the impact upon adoption on our results of operations, cash flows and financial condition. In March 2016, the FASB issued ASU 2016 - 09 Improvements to Employee Share-Based Payment Accounting which is intended to improve the accounting for employee share-based payments. The ASU affects all organizations that issue share-based payment awards to their employees. The ASU, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, simplifies several aspects of the accounting for share-based payment award transactions, including; the income tax consequences, classification of awards as either equity or liabilities, and the classification on the statement of cash flows. The ASU simplifies two areas specific to private companies, with regards to the expected term and intrinsic value measurements. The ASU simplifies the following areas to private and public companies; (a) tax benefits and tax deficiencies with regards to the differences between book and tax deductions, (b) changes in the excess tax benefits classification in the statement of cash flows, (c) make an entity wide accounting policy election for accrual of vested awards verses individual awards, (d) changes in the amount qualifying as an equity award classification subject to statutory tax withholdings, (e) clarification in the classification of shares withheld for statutory tax withholdings on the statement of cash flows. For public companies, the amendments in this ASU are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For private companies, the amendments are effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted for any organization in any interim or annual period. It is not anticipated that this guidance will have a material impact on our results of operations, cash flows or financial condition. In January 2016, the FASB issued ASU 2016 - 01 Recognition and Measurement of Financial Assets and Financial Liabilities, intended to improve the recognition and measurement of financial instruments. The ASU affects public and private companies, not-for-profit organizations, and employee benefit plans that hold financial assets or owe financial liabilities. The new guidance makes targeted improvements to existing GAAP by: Requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; Requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; Requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; Eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for organizations that are not public business entities; Eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and Requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as own credit) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The ASU on recognition and measurement will take effect for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For private companies, not-for-profit organizations, and employee benefit plans, the standard becomes effective for fiscal years beginning after December 15, 2018, and for interim periods within fiscal years beginning after December 15, 2019. The ASU permits early adoption of the own credit provision (referenced above). Additionally, it permits early adoption of the provision that exempts private companies and not-for-profit organizations from having to disclose fair value information about financial instruments measured at amortized cost. It is not anticipated that this guidance will have a material impact on our results of operations, cash flows or financial condition. In April 2016, the FASB issued ASU 2016 - 10 Revenue from Contract with Customers (Topic 606): identifying Performance Obligations and Licensing. The amendments in this Update do not change the core principle of the guidance in Topic 606. Rather, the amendments in this Update clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. Topic 606 includes implementation guidance on (a) contracts with customers to transfer goods and services in exchange for consideration and (b) determining whether an entitys promise to grant a license provides a customer with either a right to use the entitys intellectual property (which is satisfied at a point in time) or a right to access the entitys intellectual property (which is satisfied over time). The amendments in this Update are intended to render more detailed implementation guidance with the expectation to reduce the degree of judgement necessary to comply with Topic 606. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update2014-09 by one year. It is not anticipated that this updated guidance will have a material impact on our results of operations, cash flows or financial condition. In November 2016, the FASB issued ASU 2016-20, an amendment to ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU addressed several areas related to contracts with customers. This topic is not yet effective and will become effective with Topic 606. We are currently evaluating the impact this topic will have on our financial statements. |
Property, Plant and Equipment_
Property, Plant and Equipment: Schedule of Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Property and Equipment | September 30, (in thousands) 2018 2017 Furniture, fixtures and office equipment $ 131,487 $ 107,552 Leasehold improvements 73,795 73,795 205,282 181,347 Less: accumulated depreciation (112,597) (83,535) $ 92,685 $ 97,812 |
Commitments_ Schedule of Future
Commitments: Schedule of Future Minimum Rental Payments for Operating Leases (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Future Minimum Rental Payments for Operating Leases | Fiscal Years Ending September 30, Total Lease Commitment Lease Commitment Net of Sublease 2019 $ 302,550 $ 120,000 2020 324,000 120,000 2021 348,000 120,000 2022 363,000 120,000 2023 384,000 120,000 Thereafter 97,500 30,000 $ 1,819,050 $ 630,000 |
Income Taxes_ Schedule of Effec
Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | Expected federal tax rate 21.0% State income taxes, net of federal benefit 6.0% Utilization of net operating loss (3.7%) Effective tax rate 23.3% |
Income Taxes_ Schedule of Defer
Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | September 30, 2018 Deferred Tax Assets: Current assets 28,718 Deferred tax liabilities 28,718 Deferred Tax Liabilities: Current liabilities 138,442 Deferred tax assets 138,442 Net deferred tax liabilities $ 109,724 |
Property, Plant and Equipment (
Property, Plant and Equipment (Details) - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Details | ||||
Depreciation | $ 29,062 | $ 27,945 | $ 29,062 | $ 27,945 |
Concentration of Credit Risk _2
Concentration of Credit Risk and Major Customers (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2018 | |
Details | ||
Concentration Risk, Percentage | 47.00% | |
Fair Value, Concentration of Risk, Accounts Receivable | $ 578,066 | $ 507,031 |
Uncategorized Items - mmnd-2018
Label | Element | Value |
Total Stockholders' Equity | ||
Net income | us-gaap_NetIncomeLoss | $ 994,024 |
Distributions | us-gaap_Dividends | (300,000) |
Retained Earnings | ||
Net income | us-gaap_NetIncomeLoss | 994,024 |
Distributions | us-gaap_Dividends | $ (300,000) |