Document and Entity Information
Document and Entity Information | 12 Months Ended |
Sep. 30, 2015shares | |
Document And Entity Information | |
Entity Registrant Name | UMeWorld Ltd |
Entity Central Index Key | 1,114,936 |
Document Type | 20-F |
Document Period End Date | Sep. 30, 2015 |
Amendment Flag | false |
Current Fiscal Year End Date | --09-30 |
Is Entity a Well-known Seasoned Issuer? | No |
Is Entity a Voluntary Filer? | No |
Is Entity's Reporting Status Current? | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 89,036,000 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,015 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
CURRENT ASSETS | |||
Cash and Cash Equivalents | $ 351,058 | $ 845,084 | $ 1,249,984 |
Accounts Receivable (Note 3) | 262 | 440 | 162,539 |
Deposit | $ 9,357 | $ 10,286 | $ 9,735 |
Deferred Financing Cost | |||
Prepayment | $ 30,842 | $ 1,428 | $ 16,179 |
TOTAL CURRENT ASSETS | 391,519 | 857,238 | 1,438,437 |
NON-CURRENT ASSETS | |||
Property, Plant and Equipment, net (Note 4) | $ 10,874 | 15,706 | $ 20,518 |
Loan Receivable | 1,016 | ||
Deferred Charges | $ 423,380 | 496,166 | $ 544,080 |
TOTAL NON-CURRENT ASSETS | 434,254 | 512,888 | 564,598 |
TOTAL ASSETS | 825,773 | 1,370,126 | 2,003,035 |
CURRENT LIABILITIES | |||
Accounts Payable and Accrued Liabilities (Note 5) | 598,229 | 490,433 | 335,901 |
Unearned Revenue | 394,724 | 407,580 | 407,937 |
TOTAL CURRENT LIABILITIES | 992,953 | 898,013 | 743,838 |
NON-CURRENT LIABILITIES | |||
Notes Payable (Note 6) | 1,556,318 | 1,328,516 | 941,616 |
TOTAL LIABILITIES | $ 2,549,271 | $ 2,226,529 | $ 1,685,454 |
Going Concern (Note 1) | |||
Commitments (Note 8) | |||
Related Party Transactions (Note 13) | |||
STOCKHOLDERS' DEFICIENCY | |||
Common Stock: $ 0.0001 par value, Authorized: 250,000,000 shares; Issued and outstanding September 30, 2015, 2014 and 2013: 89,036,000 (Notes 9,11,12) | $ 8,904 | $ 8,904 | $ 8,904 |
Additional Paid-in Capital | 25,213,365 | 24,727,453 | 22,043,516 |
Deficit | (27,147,910) | (25,777,160) | (21,904,789) |
Accumulated Other Comprehensive Loss | (1,286) | (2,980) | (2,041) |
Non-Controlling Interest (Note 7) | 203,429 | 187,380 | 171,991 |
TOTAL STOCKHOLDERS' EQUITY/ (DEFICIENCY) | (1,723,498) | (856,403) | 317,581 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY/DEFICIENCY | $ 825,773 | $ 1,370,126 | $ 2,003,035 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
STOCKHOLDERS' DEFICIENCY | |||
Common Stock, Par Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 | 250,000,000 |
Common Stock, Shares, Issued | 89,036,000 | 89,036,000 | 89,036,000 |
Common Stock, Shares, Outstanding | 89,036,000 | 89,036,000 | 89,036,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Consolidated Statements Of Operations And Comprehensive Loss | |||
License Fees and Royalties | $ 760,329 | ||
TOTAL REVENUES | 760,329 | ||
General and Administrative Expenses | $ 765,691 | $ 1,076,086 | 994,931 |
Goodwill impairment (Note 15) | $ 19,425,346 | ||
Stock-based Compensation | $ 485,912 | $ 2,692,960 | |
Depreciation | 4,793 | 4,804 | $ 3,452 |
LOSS FROM OPERATIONS | (1,256,396) | (3,773,850) | (19,663,400) |
OTHER INCOME | |||
Other income | 20,227 | 13,364 | 106,377 |
Interest income | 146 | 409 | 2,704 |
OTHER EXPENSES | |||
Interest Expense, net | (119,102) | (96,670) | (88,348) |
LOSS BEFORE INCOME TAXES | $ (1,355,125) | $ (3,856,747) | $ (19,642,667) |
INCOME TAX (Note 10) | |||
Net Loss | $ (1,355,125) | $ (3,856,747) | $ (19,642,667) |
Net (Income)/Loss attributable to Non-Controlling interests | (15,625) | (15,624) | (15,620) |
Net Gain/(Loss) attributable to UMeWorld Limited Stockholders | (1,370,750) | (3,872,371) | (19,658,287) |
Comprehensive Loss | |||
Net Gain/(Loss) | (1,370,750) | (3,872,371) | (19,658,287) |
Translation Adjustment | (2,118) | 1,174 | 4,346 |
Comprehensive Gain/(Loss) | (1,372,868) | (3,871,197) | (19,653,941) |
Comprehensive Income Attributable to Non-Controlling Interests | (424) | 235 | (869) |
Comprehensive Gain/(Loss) Attributable to UMeWorld Limited Stockholders | $ (1,373,292) | $ (3,870,962) | $ (19,654,810) |
Per Share Data | |||
Net Loss Per Share, basic and diluted | $ (0.0154) | $ (0.0435) | $ (0.2208) |
Weighted Average Number of Common Shares Outstanding | 89,036,000 | 89,036,000 | 89,036,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY DEFICIENCY - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | (Deficiency) | Total UMeWorld Limited Stockholders Deficiency | Noncontrolling Interest | Total |
Beginning Balance, Amount at Sep. 30, 2013 | $ 8,904 | $ 22,043,516 | $ (2,041) | $ (21,904,789) | $ 145,590 | $ 171,991 | $ 317,581 |
Beginning Balance, Shares at Sep. 30, 2013 | 89,036,000 | ||||||
Warrants issued | 2,652,990 | 2,652,990 | 2,652,990 | ||||
Options issued | 39,969 | 39,969 | 39,969 | ||||
Foreign Currency Translation | (939) | (939) | (235) | (1,174) | |||
Non-Controlling Interest | 15,624 | 15,624 | |||||
Net Loss for the period | (3,872,371) | (3,872,371) | (3,872,371) | ||||
Adjustment to Re-domiciled to BVI | (9,022) | (9,022) | (9,022) | ||||
Ending Balance, Amount at Sep. 30, 2014 | $ 8,904 | 24,727,453 | (2,980) | (25,777,160) | (1,043,783) | 187,380 | (856,403) |
Ending Balance, Shares at Sep. 30, 2014 | 89,036,000 | ||||||
Warrants issued | 485,912 | 485,912 | 485,912 | ||||
Foreign Currency Translation | 1,694 | 1,694 | 424 | 2,118 | |||
Non-Controlling Interest | 15,625 | 15,625 | |||||
Net Loss for the period | (1,370,750) | (1,370,750) | (1,370,750) | ||||
Ending Balance, Amount at Sep. 30, 2015 | $ 8,904 | $ 25,213,365 | $ (1,286) | $ (27,147,910) | $ (1,926,927) | $ 203,429 | $ (1,723,498) |
Ending Balance, Shares at Sep. 30, 2015 | 89,036,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Loss | $ (1,355,125) | $ (3,856,747) | $ (19,642,667) |
Noncash item: | |||
Goodwill impairment | 19,425,346 | ||
Non-Controlling Interest | $ 16,049 | $ 15,389 | 19,966 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Depreciation and amortization | 4,793 | 66,668 | $ 3,452 |
Stock based compensation | 485,912 | 2,692,960 | |
Changes in assets and liabilities: | |||
Decrease/(Increase) in Prepayment | (29,414) | 14,751 | $ (13,675) |
Decrease/(Increase) in Deferred Charges | 72,786 | 47,914 | (524,080) |
Decrease/(Increase) in Accounts Receivable | 178 | 162,099 | (53,557) |
Decrease/(Increase) in Loan Receivable | 1,016 | (1,016) | 1,574,654 |
(Decrease) Increase in Accounts Payable and Accruals Liabilities | 107,796 | 154,532 | 208,244 |
(Decrease) Increase in Accrued Interest on Notes Payable | 48,290 | 67,977 | 47,004 |
Decrease/(Increase) in Deposit | $ 929 | $ (551) | $ (9,735) |
Machinery & Equipment written off | |||
NET CASH USED IN OPERATING ACTIVITIES | $ (646,790) | $ (636,024) | $ 1,034,952 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
(Purchase)/Sale of Machinery and Equipment | (307) | (14,291) | (20,518) |
NET CASH USED IN INVESTING ACTIVITIES | $ (307) | $ (14,291) | $ (20,518) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Issuance/(Cancellation) of Common Stock | |||
Additional Paid-In Capital | $ (79,029) | $ 327,844 | |
Issuance (repayment) of Notes Payable, net | $ 276,349 | 318,923 | (101,299) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 276,349 | 239,894 | 226,545 |
Effect of exchange rate changes on cash and cash equivalents | (123,278) | 5,521 | 4,663 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (494,026) | (404,900) | 1,245,642 |
CASH and cash equivalents, beginning of year | 845,084 | 1,249,984 | 4,342 |
CASH and cash equivalents, end of year | $ 351,058 | $ 845,084 | $ 1,249,984 |
SUPPLEMENTARY DISCLOSURE: | |||
Income Tax Paid | |||
Interest Paid | $ 13,175 | ||
SUPPLEMENTARY NON-CASH ITEM DISCLOSURE: | |||
Written off of stock acquisition goodwill | $ 19,425,346 |
NATURE OF BUSINESS AND GOING CO
NATURE OF BUSINESS AND GOING CONCERN | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
NOTE 1. NATURE OF BUSINESS AND GOING CONCERN | UMeWorld (the "Company") was incorporated under the laws of the State of Delaware on August 8, 1997 under its prior name AlphaRx Inc. The Company was re-domiciled to the British Virgin Islands ("BVI") and continued as a BVI registered company in January 7, 2013. On March 8, 2013, AlphaRx Inc. changed its name to UMeWorld Limited. AlphaRx Inc. was a pharmaceutical company specializing in the formulation of therapeutic products using proprietary drug delivery technologies. On November 4, 2011, the Company ceased all operations on its drug development business and adopted a new corporate development strategy that changed the business operation of the Company to digital media and digital education. Effective June 30, 2006, AlphaRx International Holdings Limited (a British Virgin Islands company and an 80% owned subsidiary of AlphaRx Inc.) ("AIH") acquired 100% of Alpha Life Sciences Ltd. ("ALS") for a nominal amount and the assumption of approximately $63,000 of related party liabilities. ALS is primarily involved in research and development of drugs in the Asian market. Effective June 22, 2006, New Super Limited, an independent Hong Kong based corporation, subscribed for 1,500 shares of Common Stock of AIH, previously a wholly-owned subsidiary of the Company. On August 30, 2012, the Company acquired all of the issued and outstanding shares of UMeLook Holdings Limited ("UMeLook"), a digital media startup with an intense focus on China. The acquisition of UMeLook was completed as a share exchange through the issuance of 70,000,000 common shares of AlphaRx Inc. to the shareholders of UMeLook at a deemed price of $0.30 per share in exchange for all of the issued and outstanding shares in the capital of UMeLook. The consolidated financial statements reflect the activities of the Company, 100% of AlphaRx Canada Limited, 80% of AIH and ALS (AIH's wholly-owned subsidiary), and 100% of UMeLook accounted for on a self-sustained basis. All material inter-company accounts and transactions have been eliminated. Where the Company owns less than 100% of a consolidated entity the net assets belonging to the minority owners are accounted for as a non-controlling interest. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Accordingly, they do not include any adjustments relating to the realization of the carrying value of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Factors relating to going concern issues include working capital deficiency, operating losses, stockholders' deficit, and continued reliance on external funding sources. Continuance of the Company as a going concern is dependent on its future profitability and on the on-going support of its stockholders, affiliates and creditors. In order to mitigate the going concern issues, the Company is constantly pursuing new business arrangements and striving to achieve profitability, and seeking capital funding on an ongoing basis via the issuance of Promissory Notes, and private placements. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | This summary of significant accounting policies is presented to assist in understanding the Company's consolidated financial statements. The consolidated financial statements and notes are representations of the Company's management who is responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles in the United States of America and have been consistently applied in the preparation of the consolidated financial statements. Cash and Cash Equivalents Cash includes cash on hand, and amounts on deposit with banks. Cash equivalents include any other highly liquid cash investments purchased with maturity of three months or less which are readily convertible to cash. The carrying amount approximates fair value because of the immediate liquidity or short maturity of these instruments. As at September 30, 2015, 2014 and 2013 the Company had only cash on deposit and petty cash on hand. Accounts Receivable The Company segregates trade receivables resulting from revenues generated from non-trade or other receivables. An allowance for bad debts is estimated for each type of receivable on a periodic basis based on experience with the respective parties. Financial Instruments a) Fair Value Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of judgment, they cannot be determined with complete accuracy. Changes in assumptions can significantly affect estimated fair values. The carrying values of cash, accounts receivable, notes payable, accounts payable, and accrued liabilities approximate their fair values because of the short-term nature of these instruments. b) Interest rate, currency and credit risk The Company is not subject to significant credit and interest risks arising from these financial instruments. The Company may be subject to significant currency risk as some of the external promissory notes are denominated in Canadian dollars or Hong Kong dollars. Long-Term Financial Instruments The fair value of each of the Company's long-term financial assets is based on the amount of future cash flows associated with each instrument discounted using an estimate of what the Company's current borrowing rate for similar instruments of comparable maturity would be. It is of the management's opinion that the Company is not exposed to significant interest rate risk, credit risk or currency risks arising from these financial instruments. Foreign Currency Translation The Company maintains the books and records of AlphaRx Canada Ltd. in Canadian dollars, and the books and records of Alpha Life Sciences Ltd. and AlphaRx International Holdings Ltd. in Hong Kong dollars, their respective functional currencies. The records of these companies are converted to US dollars, the reporting currency. The translation method used is the current rate method. Under the current rate method all assets and liabilities are translated at the current rate, stockholders' equity accounts are translated at historical rates and revenues and expenses are translated at average rates for the year. Cumulative net translation adjustments related to equity accounts are included as a separate component of stockholders' deficiency. September 30, 2015 September 30, 2014 September 30, 2013 Year-end CAD: USD exchange rate 0.7458 0.8964 0.9705 Average Yearly CAD: USD exchange rate 0.8145 0.9239 0.8747 Year end RMB: USD exchange rate 0.1574 0.1625 0.1626 Average Yearly RMB: USD exchange rate 0.1625 0.1629 0.1616 Earnings or Loss Per Share Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the year. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding plus Common Stock equivalents (if dilutive) related to stock options and warrants for each year. Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statement or tax returns. Deferred income taxes are provided using the liability method. Under the liability method, deferred income taxes are recognized for all significant temporary differences between the tax and financial statement bases of assets and liabilities. Effects of changes in enacted tax laws on deferred tax assets and liabilities are reflected as adjustments to tax expense in the period of enactment. Deferred tax assets may be reduced, if deemed necessary based on a judgmental assessment of available evidence, by a valuation allowance for the amount of any tax benefits which are more likely, based on current circumstances, not expected to be realized. Property Plant and Equipment Property plant and equipment are stated at cost. Depreciation is calculated by using the Modified Accelerated Cost Recovery System Method for financial reporting as well as for income tax purposes at rates based on the following estimated useful lives: Furniture and Fixtures 5 - 7 years Machinery and Equipment 3 - 7 years The Company capitalizes expenditures that materially increase assets' lives and expenses ordinary repairs and maintenance to operations as incurred. When assets are sold or disposed or otherwise fully depreciated, the cost and related accumulated depreciation is removed from the accounts and any gain or loss is included in the statement of income and retained earnings. Research and Development All research and development costs are charged to expense as incurred. These costs include in house and contracted research and development, travel to explore and evaluate new product candidates, raw materials, lab supplies and other costs related directly to research and development of new and existing drug product candidates. Revenue Recognition Revenues related to license fees and royalties are recognized when persuasive evidence of an arrangement exists, the fee is fixed or determinable, and collectability is probable. Should there be any future obligations or deliverables related to the license fees, revenue is deferred and recognized only when those obligations and or deliverables have been satisfied. Any advance payments or deposits received in relation to license fees and other fees are deferred until those obligations or deliverables have been satisfied. Royalty payments are not received in advance but rather, are paid to the Company based on previous period sales by licensees. Royalty revenue is accrued in the period earned based on estimates or actual licensed sales during the period in question. Consulting revenues are recognized as the services are rendered to the customer, and invoiced on a periodic basis or upon completion of the consulting services depending on contract terms and conditions. Sales represent the invoiced value of goods supplied to customers. Revenues are recognized upon the passage of title to the customers, provided that the collection of the proceeds from sales is reasonably assured. A reserve for returns is considered periodically based on actual or anticipated returns from customers. The Company no longer sells any products directly to end-users. Use of Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates in amounts than may be material to the consolidated financial statements. Management believes that these estimates and assumptions used are reasonable. These estimates are reviewed periodically and as adjustments become necessary, they are reported in earnings in the period in which they become known. Estimates were used in determining the amounts of accrued liabilities, useful lives of property plant and equipment, stock based compensation, and valuation allowances. Long-Lived Assets The Company reviews long-lived assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. During the year management determined that an impairment test was necessary and used its best estimate of the undiscounted cash flows to evaluate the carrying amount and have determined that no impairment has occurred. Concentrations of Credit Risks and Revenues The Company's receivables are unsecured and are generally due in 30 Days. Reserves for uncollectible receivables are determined by the Company periodically based on best estimates available and historical data, as well as the economic and financial status of its debtors. Investment in marketable securities carry normal market risk of fluctuation in the price of securities traded on recognized stock exchanges as well as liquidity and foreign exchange risks. Currently, the Company does not have a diverse customer base. The Company relies on one licensee for all of its royalty revenues and has another licensee attempting to commercialize one of its product candidates. Should these licensees discontinue sales of our products, or should commercialization efforts of our product candidates be curtailed, our revenues could be adversely impacted. Stock Based Compensation The Company recognizes compensation cost for third party and employee services rendered in exchange for an equityinstrument award based on the fair value of the award on the date of grant. The Company uses the Black-Sholes option-pricing model in determining the fair value of options and warrants. In determining the expected volatility, the Company bases this assumption on the historical volatilities of the Company's common stock over the expected life of the stock acquisition rights. Comprehensive Income Comprehensive income is net income plus certain items that are recorded directly to stockholders' equity, bypassing net income. With the exception of foreign exchange gains and losses, the Company has no other components in its comprehensive income (loss) accounts. Recent Issued Standards The FASB has issued Accounting Standards Update (ASU) No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The FASB issued this ASU as part of its initiative to reduce complexity in accounting standards. The objective of the simplification initiative is to identify, evaluate, and improve areas of U.S. GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statements. This ASU eliminates from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. The FASB heard from stakeholders that the concept of extraordinary items causes uncertainty because it is unclear when an item should be considered both unusual and infrequent. Additionally, some stakeholders said that although users find information about unusual or infrequent events and transactions useful, they do not find the extraordinary item classification and presentation necessary to identify those events and transactions. Other stakeholders noted that it is extremely rare in current practice for a transaction or event to meet the requirements to be presented as an extraordinary item. This ASU will also align more closely U.S. GAAP income statement presentation guidance with IAS 1, Presentation of Financial Statements, which prohibits the presentation and disclosure of extraordinary items. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The effective date is the same for both public business entities and all other entities. The FASB has issued an Accounting Standards Update (ASU) No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which is intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). The ASU focuses on the consolidation evaluation for reporting organizations (public and private companies and not-for-profit organizations) that are required to evaluate whether they should consolidate certain legal entities. In addition to reducing the number of consolidation models from four to two, the new standard simplifies the FASB Accounting Standards Codification™ and improves current GAAP by: - Placing more emphasis on risk of loss when determining a controlling financial interest. A reporting organization may no longer have to consolidate a legal entity in certain circumstances based solely on its fee arrangement, when certain criteria are met. - Reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (VIE). - Changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. The ASU will be effective for periods beginning after December 15, 2015, for public companies. For private companies and not-for-profit organizations, the ASU will be effective for annual periods beginning after December 15, 2016; and for interim periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The FASB has issued Accounting Standards Update (ASU) No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. For public business entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. Early adoption of the amendments is permitted for financial statements that have not been previously issued. The amendments should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, an entity is required to comply with the applicable disclosures for a change in an accounting principle. These disclosures include the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that has been retrospectively adjusted, and the effect of the change on the financial statement line items (i.e., debt issuance cost asset and the debt liability). The FASB has issued Accounting Standards Update (ASU) No. 2015-04, Compensation - Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets. For an entity with a fiscal year-end that does not coincide with a month-end, the amendments in this ASU provide a practical expedient that permits the entity to measure defined benefit plan assets and obligations using the month-end that is closest to the entity's fiscal year-end and apply that practical expedient consistently from year to year. The practical expedient should be applied consistently to all plans if an entity has more than one plan. Employee benefit plans are not within the scope of the amendments. If a contribution or significant event (such as a plan amendment, settlement, or curtailment that calls for a remeasurement in accordance with existing requirements) occurs between the month-end date used to measure defined benefit plan assets and obligations and an entity's fiscal year-end, the entity should adjust the measurement of defined benefit plan assets and obligations to reflect the effects of those contributions or significant events. However, an entity should not adjust the measurement of defined benefit plan assets and obligations for other events that occur between the month-end measurement and the entity's fiscal year-end that are not caused by the entity (e.g., changes in market prices or interest rates). If an entity applies the practical expedient and a contribution is made between the month-end date used to measure defined benefit plan assets and obligations and the entity's fiscal year-end, the entity should not adjust the fair value of each class of plan assets for the effects of the contribution. Instead, the entity should disclose the amount of the contribution to permit reconciliation of the total fair value of all the classes of plan assets in the fair value hierarchy to the ending balance of the fair value of plan assets. An entity is required to disclose the accounting policy election and the date used to measure defined benefit plan assets and obligations in accordance with the amendments in this ASU. The amendments are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. Earlier application is permitted. The amendments should be applied prospectively. IFRS does not have a practical expedient that permits an entity to measure defined benefit plan assets and obligations as of the month-end that is closest to the entity's fiscal year-end (or the month-end that is closest to the date of a significant event that occurred in an interim period), whereas the amendments in this Update provide that practical expedient. The FASB has issued Accounting Standards Update No. 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. Existing GAAP does not include explicit guidance about a customer's accounting for fees paid in a cloud computing arrangement. Examples of cloud computing arrangements include: (a) software as a service; (b) platform as a service; (c) infrastructure as a service; and (d) other similar hosting arrangements. The amendments add guidance to Subtopic 350-40, Intangibles - Goodwill and Other - Internal-Use Software, which will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The guidance already exists in the FASB Accounting Standards Codification™ in paragraphs 985-605-55-121 through 55-123, but it is included in a Subtopic applied by cloud service providers to determine whether an arrangement includes the sale or license of software. The amendments provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments do not change the accounting for a customer's accounting for service contracts. As a result of the amendments, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. For public business entities, the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. For all other entities, the amendments will be effective for annual periods beginning after December 15, 2015, and interim periods in annual periods beginning after December 15, 2016. Early adoption is permitted for all entities. An entity can elect to adopt the amendments either: (1) prospectively to all arrangements entered into or materially modified after the effective date; or (2) retrospectively. For prospective transition, the only disclosure requirements at transition are the nature of and reason for the change in accounting principle, the transition method, and a qualitative description of the financial statement line items affected by the change. For retrospective transition, the disclosure requirements at transition include the requirements for prospective transition and quantitative information about the effects of the accounting change. The FASB has issued ASU No. 2015-06, Earnings Per Share (Topic 260): Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions (a consensus of the FASB Emerging Issues Task Force). The amendments apply to master limited partnerships subject to the Master Limited Partnerships Subsections of Topic 260, Earnings per Share, that receive net assets through a dropdown transaction. The amendments specify that for purposes of calculating historical earnings per unit under the two-class method, the earnings (losses) of a transferred business before the date of a dropdown transaction should be allocated entirely to the general partner. In that circumstance, the previously reported earnings per unit of the limited partners (which is typically the earnings per unit measure presented in the financial statements) would not change as a result of the dropdown transaction. Qualitative disclosures about how the rights to the earnings (losses) differ before and after the dropdown transaction occurs for purposes of computing earnings per unit under the two-class method also are required. Current GAAP does not contain guidance for master limited partnerships that specifies how historical earnings per unit should be affected when a dropdown transaction occurs that is accounted for as a transaction between entities under common control. The amendments are effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Earlier application is permitted. The amendments should be applied retrospectively for all financial statements presented. The FASB has issued Accounting Standards Update 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). The amendments apply to reporting entities that elect to measure the fair value of an investment using the net asset value per share (or its equivalent) practical expedient. Topic 820, Fair Value Measurement, permits a reporting entity, as a practical expedient, to measure the fair value of certain investments using the net asset value per share of the investment. Currently, investments valued using the practical expedient are categorized within the fair value hierarchy on the basis of whether the investment is redeemable with the investee at net asset value on the measurement date, never redeemable with the investee at net asset value, or redeemable with the investee at net asset value at a future date. For investments that are redeemable with the investee at a future date, a reporting entity must consider the length of time until those investments become redeemable to determine the classification within the fair value hierarchy. The amendments remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The amendments are effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. A reporting entity should apply the amendments retrospectively to all periods presented. The retrospective approach requires that an investment for which fair value is measured using the net asset value per share practical expedient be removed from the fair value hierarchy in all periods presented in an entity's financial statements. Earlier application is permitted. The FASB has issued ASU No. 2015-08, Business Combinations (Topic 805): Pushdown Accounting-Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115. This ASU amends various SEC paragraphs of the FASB Accounting Standards CodificationTM pursuant to the issuance of SEC Staff Accounting Bulletin No. 115. The FASB has issued Accounting Standards Update (ASU) No. 2015-10, Technical Corrections and Improvements. The amendments cover a wide range of Topics in the FASB Accounting Standards Codification™ (Codification). The amendments generally fall into one of the types of amendments listed below. 1. Amendments Related to Differences between Original Guidance and the Codification. These amendments arose because of differences between original guidance (e.g., FASB Statements, EITF Issues, and so forth) and the Codification. These amendments principally carry forward pre-Codification guidance or subsequent amendments into the Codification. Many times, either the writing style or phrasing of the original guidance did not directly translate into the Codification format and style. As a result, the meaning of the guidance might have been unintentionally altered. Alternatively, amendments in this section may relate to guidance that was codified without some text, references, or phrasing that, upon review, was deemed important to the guidance. 2. Guidance Clarification and Reference Corrections. These amendments provide clarification through updating wording, correcting references, or a combination of both. In most cases, the feedback suggested that, without these enhancements, guidance may be misapplied or misinterpreted. 3. Simplification. These amendments streamline or simplify the Codification through minor structural changes to headings or minor editing of text to improve the usefulness and understandability of the Codification. 4. Minor Improvements. These amendments improve the guidance and are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments represent changes to clarify the Codification, correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. In addition, some of the amendments will make the Codification easier to understand and easier to apply by eliminating inconsistencies, providing needed clarifications, and improving the presentation of guidance in the Codification. Transition guidance varies based on the amendments. The amendments that require transition guidance are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. All other amendments will be effective upon issuance. The FASB has issued Accounting Standards Update (ASU) No, 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. Topic 330, Inventory, currently requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The amendments do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The FASB has issued Accounting Standards Update (ASU) No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. All other entities may apply the guidance in ASU 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, including interim reporting periods within that reporting period. All other entities also may apply the guidance in ASU 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, and interim reporting periods within annual reporting periods beginning one year after the annual reporting period in which the entity first applies the guidance in ASU 2014-09. The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements tha |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
NOTE 3. ACCOUNTS RECEIVABLE | 2015 2014 2013 Trade Accounts Receivable $ - $ - $ 1,741 Other Accounts Receivable 262 440 160,798 $ 262 $ 440 $ 162,539 The Company carries accounts receivable at the amounts it deems to be collectible. Accordingly, the Company provides allowances for accounts receivable it deems to be uncollectible based on management's best estimates. Recoveries are recognized in the period they are received. The ultimate amount of accounts receivable that becomes uncollectible could differ from those estimated. No reserve for bad debts was established as at September 30, 2015, 2014 and 2013 as all amounts were deemed collectible. |
PROPERTY, PLANT & EQUIPMENT
PROPERTY, PLANT & EQUIPMENT | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
NOTE 4. PROPERTY, PLANT & EQUIPMENT | 2015 2014 2013 Furniture and Fixtures $ 6,404 $ 6,612 $ 6,619 Machinery and Equipment 17,117 17,357 17,372 COST 23,521 23,969 23,991 Less: Accumulated depreciation/amortization Furniture and Fixtures 3,096 1,873 552 Machinery and Equipment 9,551 6,390 2,921 12,647 8,263 3,473 NET $ 10,874 $ 15,706 $ 20,518 |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
NOTE 5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | Accounts payable and accrued liabilities are comprised of the following: 2015 2014 2013 Accounts Payable $ 417,866 $ 404,986 $ 252,749 Professional services (legal, audit, financial) 16,500 15,000 14,000 Other 135,363 70,447 69,152 $ 569,729 $ 490,433 $ 355,901 |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
NOTE 6. NOTES PAYABLE | The Company and its subsidiaries issued $276,349, $318,923, $0 and repaid $0, $15,607, $101,299 in promissory notes, net of repayments during the years ended September 30, 2015, 2014 and 2013 respectively. The newly issued and existing promissory notes bear interest at rates of 8% - 12% per annum and are repayable on or before the first anniversary date of issuance. Included in Promissory Notes payable is $67,154 including accrued interest of $29,866 to Michael Lee – CEO at September 30, 2015. (As at September 30, 2014 Notes Payable plus accrued interest of $30,398 owing to Mr. Lee totaled $79,699. As at September 30, 2013 Notes Payable plus accrued interest of $27,731 owing to Mr. Lee totaled $70,922.). See also Related Party Transactions Note 14. September 30, 2015 2014 2013 Promissory Notes Issued and outstanding, net of repayments and conversions: $ 1,096,523 $ 916,750 $ 597,827 Interest accrued 459,795 411,766 343,789 Promissory Notes Payable $ 1,556,318 $ 1,328,516 $ 941,616 |
NON-CONTROLLING INTEREST
NON-CONTROLLING INTEREST | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
NOTE 7. NON-CONTROLLING INTEREST | On June 22, 2006, AlphaRx International Holdings Ltd. ("AIH"), previously a wholly-owned subsidiary of the Company issued 1,500 shares of its Common Stock to New Super Limited ("NSL"), an independent Hong Kong based corporation, at a price of approximately HK$ 6,667 per share or HK$ 10 million in cash (US$1,288,826). As a result, AIH's issued and outstanding shares were increased to 10,000 and the Company's interest in AIH was reduced to 80%. With the consolidation of only 80% of AIH, a non-controlling interest was established, representing amounts owing to the minority shareholder. The capital infusion into AIH is accounted for as additional paid in capital on the consolidated financial statements of the Company. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
NOTE 8. COMMITMENTS | The Company leases an automobile all on an operating lease basis. The aggregate minimum annual and total payments due under these operating leases are as follows: As of September 30, 2015 2014 2013 Car Lease $ 28,900 4,534 10,288 TOTAL $ 28,900 4,534 10,288 |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
NOTE 9. COMMON STOCK | The Company is authorized to issue up to 250,000,000 shares of Common Stock. As of September 30, 2015, there were 89,036,000 shares of Common Stock issued and outstanding, with a stated par value of $0.0001 per share. For the year ended September 30, 2012, the Company issued 300,000 shares of Common Stock to Dr. William Gannon under a private placement subscription, 1,060,000 shares of Common Stock were cancelled pursuant to an out of court settlement agreement with 2 former scientists. The Company also issued 70,000,000 shares of Common Stock for the acquisition of UMeLook Holdings Limited. During the year ended September 30, 2011, the Company issued 1,300,000 shares of Common Stock to Dr. Ford Moore, Dr. David Milroy, and Mr. Paul Dowell as private placement subscription. Net loss per share of Common Stock is not based on diluted shares since the effect would be anti-dilutive. The Company has warrants outstanding to purchase 1,674,655 shares of Common Stock and 14,750,000 options outstanding to purchase shares of Common Stock as at September 30, 2015. On a fully diluted basis there would be 105,460,655 shares of Common Stock issued and outstanding if all warrants and all options were to be exercised. Refer to Notes 11 and 12 respectively for more details on options and warrants. (As at September 30, 2014 and 2013 there would have been 104,734,030 and 90,544,030 shares outstanding on a diluted basis respectively if all outstanding warrants and options were exercised). |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
NOTE 10. INCOME TAXES | The regional sources of tax losses for the years ended September 30, 2015, 2014 and 2013 were as follows: 2015 2014 2013 North America $ (813,409 ) $ (3,141,208 ) $ (127,369 ) Outside North America (527,184 ) (716,713 ) (631,107 ) $ (1,340,593 ) $ (3,857,921 ) $ (758,476 ) Tax losses by year of origin and year of expiry are as follows: Year of United Year of Year of Outside Year of Origin States Expiry Canada Expiry North America Expiry 1998 212,899 2018 1999 795,878 2019 2000 6,179 2020 2001 292,351 2021 2002 1,017,792 2022 2003 1,189,476 2023 2004 790,108 2024 2005 2,166,634 2025 $ 732,448 2015 2006 1,764,202 2026 682,619 2016 2007 1,530,976 2027 293,528 2014 2008 1,266,180 2028 99,852 2015 2009 208,940 2029 97,040 2019 78,953 2016 2010 477,350 2030 54,697 2020 27,267 2017 2011 77,922 2031 184,138 2021 2012 38,979 2032 90,950 2022 2013 3,502 2033 123,867 2023 631,107 2020 2014 3,060,847 2034 80,361 2024 716,713 2021 2015 813,409 2035 527,184 2022 TOTAL $ 15,713,624 $ 2,046,120 $ 2,374,604 CONSOLIDATED TAX LOSSES $ 20,134,348 The tax effect of material temporary differences representing deferred tax assets is estimated as follows: 2015 2014 2013 Deferred tax assets: North America $ 5,874,417 $ 5,846,486 $ 4,762,769 Outside North America 297,184 232,634 169,606 Sub-total 6,171,601 6,079,120 4,932,375 Less Valuation allowance (6,171,601 ) (6,079,120 ) (4,932,375 ) Net deferred tax assets - - - The valuation allowance as of September 30, 2015, 2014 and 2013 totaled $6,171,601, $6,079,120 and $4,932,375 respectively which consisted primarily of established reserves for deferred tax assets on non-capital operating loss carry forwards for our entities in United States and our foreign entities. The tax rates being used to determine deferred tax assets are estimated at 34.5% for North America and 15% for outside North America. The consolidated effective tax (benefit) rate as a percentage of income (loss) before income taxes is as follows. 2015 2014 2013 Combined Statutory Rates 31.3 % 31.3 % 31.3 % Non-deductible expenses (9 ) (9 ) (9 ) Change in valuation allowance (22.3 ) (22.3 ) (22.3 ) Effective tax rate 0 % 0 % 0 % As of September 30, 2015, 2014 and 2013 the Company had no unrecognized tax benefits and as such required no adjustments to the financial statements. The Company records any interest and penalties related to tax matters within general and administrative expenses on the accompanying consolidated statements of operations and comprehensive loss. These amounts are not material to the consolidated financial statements for the periods presented. The Company's US and Canadian tax returns are subject to examination by respective tax authorities. Generally, tax years 2007 – 2015 remain open to examination by those respective tax authorities. (IRS in the United States and Canada Customs and Revenue Agency in Canada). |
STOCK OPTION PLANS
STOCK OPTION PLANS | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
NOTE 11. STOCK OPTION PLANS | Zero options were granted during the years ended September 30, 2015. There were 14,750,000 options outstanding to purchase shares of Common Stock as of September 30, 2015. The board of directors adopted the 2013 Share Incentive Plan, or the 2013 Plan, which became effective in July 2013. A total of 17,000,000 common shares of our company are reserved for issuance under the 2013 Plan. Issue Date No. of Options Issued Exercise Price ($) Share Price on Grant Date ($) Expiry Date Remaining Contractual Life (Years) 5/29/2014 12,750,000 0.15 0.18 5/29/2024 8.67 5/29/2014 2,000,000 0.20 0.18 5/29/2019 3.67 Balance as at September 30, 2015 14,750,000 Weighted Average Contractual Life (Years 7.99 |
WARRANTS
WARRANTS | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
NOTE 12. WARRANTS | On January 9, 2012, the Company issued 30,000 warrants to purchase 30,000 shares of Common Stock at $0.075 per share expiring on June 30, 2014. On September 13, 2011, the Company issued 50,000 warrants to purchase 50,000 shares of Common Stock at $0.075 per share expiring on June 30, 2014. On April 12, 2010, the Company issued 748,030 warrants to purchase 748,030 shares of Common Stock at $0.085 per share expiring on April 11, 2015. The warrants were issued in exchange for financial advisory services to be provided from the period from April 11, 2010 until Sep 30, 2010. The total fair value of the warrants has been estimated to be $262,090 using Black-Scholes option pricing model based on the following assumptions: dividend yield of 0%, expected volatility of 103.86%, risk-free interest rate of 3%, and an expected life of 5 years. The company recorded $262,090 in stock based compensation for the year ended September 30, 2010 (2009- $73,725). No income tax benefit has been realized as a result of warrant amortization expenses during 2010 and 2009. Stock based compensation is included in general and administrative expenses seen on the consolidated statement of operations and comprehensive loss. As at September 30, 2013 there were 1,508,030 (were 7,540,150 before 1 for 5 reverse split) warrants issued and outstanding. On September 24, 2014 and September 25 2014, the Company issued 200,000 warrants to purchase 200,000 shares of Common Stock at $0.25 per share expiring on September 24 and 25, 2016 respectively. The total fair value of the warrants has been estimated to be $39,969 using Black-Scholes option pricing model based on the following assumptions: dividend yield of 0%, expected volatility of 479.35%, risk-free interest rate of 1.08% and 1.03% respectively, and an expected life of 2 years. Stock based compensation is included in general and administrative expenses seen on the consolidated statement of operations and comprehensive loss. On October 7, 2014 the Company issued 100,000 warrants to purchase 100,000 shares of Common Stock at $0.25 per share expiring on October 7, 2016. The total fair value of the warrants has been estimated to be $19,984 using Black-Scholes option pricing model based on the following assumptions: dividend yield of 0%, expected volatility of 479.35%, risk-free interest rate of 0.98%, and an expected life of 2 years. Stock based compensation is included in general and administrative expenses seen on the consolidated statement of operations and comprehensive loss. On January 20, 2015, January 29, 2015 and February 3, 2015, the Company issued 335,850 warrants to purchase 335,850 shares of Common Stock at $0.25 per share expiring on January 20, 29 and February 3, 2018 respectively. The total fair value of the warrants has been estimated to be $101,694 using Black-Scholes option pricing model based on the following assumptions: dividend yield of 0%, expected volatility of 392.60%, risk-free interest rate of 0.85%, 0.84% and 0.85% respectively, and an expected life of 3 years. Stock based compensation is included in general and administrative expenses seen on the consolidated statement of operations and comprehensive loss. On April 21, 2015 the Company issued 629,030 warrants to purchase 629,030 shares of Common Stock at $0.25 per share expiring on April 21, 2018. The total fair value of the warrants has been estimated to be $220,058 using Black-Scholes option pricing model based on the following assumptions: dividend yield of 0%, expected volatility of 398.43%, risk-free interest rate of 0.86%, and an expected life of 3 years. Stock based compensation is included in general and administrative expenses seen on the consolidated statement of operations and comprehensive loss. On August 4, 2015, September 17, 2015, September 25, 2015 and September 29, 2015, the Company issued 409,775 warrants to purchase 409,775 shares of Common Stock at $0.30 per share expiring on August 4, September 17, 25 and 29, 2018 respectively. The total fair value of the warrants has been estimated to be $144,176 using Black-Scholes option pricing model based on the following assumptions: dividend yield of 0%, expected volatility of 393.93%, 334.50%, 333.91%, 332.95%, risk-free interest rate of 1.08%, 1.00%, 1.00% and 0.92% respectively, and an expected life of 3 years. Stock based compensation is included in general and administrative expenses seen on the consolidated statement of operations and comprehensive loss. Additional details regarding warrant activity and warrants outstanding as of September 30, 2014, 2013 and 2012 are seen in the table below. Issue Date No. of Warrants Issued Exercise Price ($) Share Price on Grant Date ($) Expiry Date Remaining Contractual Life (Years) 4/1/2009 600,000 0.03 0.02 3/31/2014 0 4/12/2010 748,030 0.085 0.05 4/11/2015 0.53 8/03/2011 80,000 0.075 0.04 6/30/2014 0 9/13/2011 50,000 0.075 0.05 6/30/2014 0 1/9/2012 30,000 0.075 0.05 6/30/2014 0 Balance as at September 30, 2012 and 2013 1,508,030 Weighted Average Contractual Life (Years) 0.53 9/24/2014 100,000 0.25 0.2 9/24/2016 1.98 9/25/2014 100,000 0.25 0.2 9/25/2016 1.98 Balance as at September 30, 2014 948,030 Weighted Average Contractual Life (Years) 0.84 10/07/2014 100,000 0.25 0.2 10/07/2016 1.02 1/20/2015 50,000 0.25 0.32 1/20/2018 2.30 1/29/2015 160,850 0.25 0.30 1/29/2018 2.33 2/3/2015 125,000 0.25 0.30 2/3/2018 2.34 4/21/2015 629,030 0.25 0.35 4/21/2018 2.55 8/4/2015 9,775 0.30 0.35 8/4/2018 2.83 9/17/2015 125,000 0.30 0.30 9/17/2018 2.96 9/25/2015 125,000 0.30 0.35 9/25/2015 2.98 9/29/2015 150,000 0.30 0.40 9/29/2018 3.00 Balance as at September 30, 2015 1,674,655 Weighted Average Contractual Life (Years) 2.33 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
NOTE 13. RELATED PARTY TRANSACTIONS | The Company sourced some of its funding from its CEO and director - Mr. Lee, CEO and Dr. Ford Moore. Interest accrued on all loans outstanding to Mr. Lee and Dr. Moore totaled $34,346 as of September 30, 2015. The total loan amounts including accrued interest owing to Mr. Lee as of September 30, 2015, 2014, and 2013 were $67,154 $79,699, and $70,922 and owing to Dr. Moore as of September 30, 2015 were $74,480. |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
NOTE 14. SEGMENTED INFORMATION | On November 4, 2011, the Company ceased all operations on its drug development business and adopted a new corporate development strategy that changed the business operation of the Company to digital media and digital education with an intense focus on China. Results of operations are reported on a consolidated basis for segment reporting purposes. Consolidated disclosures about revenue streams and long-lived assets by geographic area are seen below. Revenues The Company did not generate revenue for the year 2015. The Company derived revenues from royalties and from consulting services for the year ended September 30, 2014 and 2013. Years ended September 30, Revenue Stream 2015 2014 2013 Disposal of Indaflex rights (Mexico Only) $ 0 $ 0 $ 760,329 Consulting Fees (North America) - - - Gross Operating Revenue 0 0 760,329 Other non-operating revenue: Forgone Accounts Payable 20,227 13,364 106,377 Gain from disposal of fixed assets - - - Legal Settlement - - - Interest Income 416 409 2,704 Total Revenues and Non-Operating Revenues $ 20,373 $ 13,773 $ 869,410 Years ended September 30, Long Lived Assets 2015 2014 2013 North America $ - $ - $ - Asia 10,874 15,706 20,518 Total Long Lived Assets $ 10,874 $ 15,706 $ 20,518 |
GOODWILL
GOODWILL | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
NOTE 15. GOODWILL | During the fourth quarter of fiscal 2013, the Company completed its annual impairment review of goodwill and indefinite-lived intangible assets. As a result of the impairment review performed, the Company recorded a non-cash impairment charge of approximately $19,425,346 for the fiscal year ended September 30, 2013 mainly consisted of a write-down of goodwill against the acquisition of UMeLook Holdings Limited. |
RECLASSIFICATIONS
RECLASSIFICATIONS | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
NOTE 16. RECLASSIFICATIONS | Certain amounts from prior year have been reclassified to conform to current year's presentation. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
NOTE 17. SUBSEQUENT EVENTS | The Company signed a revenue sharing agreement with China Mobile Guizhou Branch for the commercial use of UMFun by China Mobile in Guizhou Province in January 2016. Previously, UMFun was made available free of charge to China Mobile's users in the Guizhou Province. UMFun was the only value-added K-12 learning and assessment product selected by China Mobile Guizhou Branch for commercial use and as such, became the only subscription-based, value-added K-12 learning and assessment product available to China Mobile's student and teacher users in Guizhou Province. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2015 | |
Summary Of Significant Accounting Policies Policies | |
Cash and Cash Equivalents | Cash includes cash on hand, and amounts on deposit with banks. Cash equivalents include any other highly liquid cash investments purchased with maturity of three months or less which are readily convertible to cash. The carrying amount approximates fair value because of the immediate liquidity or short maturity of these instruments. As at September 30, 2015, 2014 and 2013 the Company had only cash on deposit and petty cash on hand. |
Accounts Receivable | The Company segregates trade receivables resulting from revenues generated from non-trade or other receivables. An allowance for bad debts is estimated for each type of receivable on a periodic basis based on experience with the respective parties. |
Financial Instruments | a) Fair Value Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of judgment, they cannot be determined with complete accuracy. Changes in assumptions can significantly affect estimated fair values. The carrying values of cash, accounts receivable, notes payable, accounts payable, and accrued liabilities approximate their fair values because of the short-term nature of these instruments. b) Interest rate, currency and credit risk The Company is not subject to significant credit and interest risks arising from these financial instruments. The Company may be subject to significant currency risk as some of the external promissory notes are denominated in Canadian dollars or Hong Kong dollars. |
Long-Term Financial Instruments | The fair value of each of the Company's long-term financial assets is based on the amount of future cash flows associated with each instrument discounted using an estimate of what the Company's current borrowing rate for similar instruments of comparable maturity would be. It is of the management's opinion that the Company is not exposed to significant interest rate risk, credit risk or currency risks arising from these financial instruments. |
Foreign Currency Translation | The Company maintains the books and records of AlphaRx Canada Ltd. in Canadian dollars, and the books and records of Alpha Life Sciences Ltd. and AlphaRx International Holdings Ltd. in Hong Kong dollars, their respective functional currencies. The records of these companies are converted to US dollars, the reporting currency. The translation method used is the current rate method. Under the current rate method all assets and liabilities are translated at the current rate, stockholders' equity accounts are translated at historical rates and revenues and expenses are translated at average rates for the year. Cumulative net translation adjustments related to equity accounts are included as a separate component of stockholders' deficiency. September 30, 2015 September 30, 2014 September 30, 2013 Year-end CAD: USD exchange rate 0.7458 0.8964 0.9705 Average Yearly CAD: USD exchange rate 0.8145 0.9239 0.8747 Year end RMB: USD exchange rate 0.1574 0.1625 0.1626 Average Yearly RMB: USD exchange rate 0.1625 0.1629 0.1616 |
Earnings or Loss Per Share | Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the year. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding plus Common Stock equivalents (if dilutive) related to stock options and warrants for each year. |
Income Taxes | The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statement or tax returns. Deferred income taxes are provided using the liability method. Under the liability method, deferred income taxes are recognized for all significant temporary differences between the tax and financial statement bases of assets and liabilities. Effects of changes in enacted tax laws on deferred tax assets and liabilities are reflected as adjustments to tax expense in the period of enactment. Deferred tax assets may be reduced, if deemed necessary based on a judgmental assessment of available evidence, by a valuation allowance for the amount of any tax benefits which are more likely, based on current circumstances, not expected to be realized. |
Property Plant and Equipment | Property plant and equipment are stated at cost. Depreciation is calculated by using the Modified Accelerated Cost Recovery System Method for financial reporting as well as for income tax purposes at rates based on the following estimated useful lives: Furniture and Fixtures 5 - 7 years Machinery and Equipment 3 - 7 years The Company capitalizes expenditures that materially increase assets' lives and expenses ordinary repairs and maintenance to operations as incurred. When assets are sold or disposed or otherwise fully depreciated, the cost and related accumulated depreciation is removed from the accounts and any gain or loss is included in the statement of income and retained earnings. |
Research and Development | All research and development costs are charged to expense as incurred. These costs include in house and contracted research and development, travel to explore and evaluate new product candidates, raw materials, lab supplies and other costs related directly to research and development of new and existing drug product candidates. |
Revenue Recognition | Revenues related to license fees and royalties are recognized when persuasive evidence of an arrangement exists, the fee is fixed or determinable, and collectability is probable. Should there be any future obligations or deliverables related to the license fees, revenue is deferred and recognized only when those obligations and or deliverables have been satisfied. Any advance payments or deposits received in relation to license fees and other fees are deferred until those obligations or deliverables have been satisfied. Royalty payments are not received in advance but rather, are paid to the Company based on previous period sales by licensees. Royalty revenue is accrued in the period earned based on estimates or actual licensed sales during the period in question. Consulting revenues are recognized as the services are rendered to the customer, and invoiced on a periodic basis or upon completion of the consulting services depending on contract terms and conditions. Sales represent the invoiced value of goods supplied to customers. Revenues are recognized upon the passage of title to the customers, provided that the collection of the proceeds from sales is reasonably assured. A reserve for returns is considered periodically based on actual or anticipated returns from customers. The Company no longer sells any products directly to end-users. |
Use of Estimates | The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates in amounts than may be material to the consolidated financial statements. Management believes that these estimates and assumptions used are reasonable. These estimates are reviewed periodically and as adjustments become necessary, they are reported in earnings in the period in which they become known. Estimates were used in determining the amounts of accrued liabilities, useful lives of property plant and equipment, stock based compensation, and valuation allowances. |
Long-Lived Assets | The Company reviews long-lived assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. During the year management determined that an impairment test was necessary and used its best estimate of the undiscounted cash flows to evaluate the carrying amount and have determined that no impairment has occurred. |
Concentrations of Credit Risks and Revenues | The Company's receivables are unsecured and are generally due in 30 Days. Reserves for uncollectible receivables are determined by the Company periodically based on best estimates available and historical data, as well as the economic and financial status of its debtors. Investment in marketable securities carry normal market risk of fluctuation in the price of securities traded on recognized stock exchanges as well as liquidity and foreign exchange risks. Currently, the Company does not have a diverse customer base. The Company relies on one licensee for all of its royalty revenues and has another licensee attempting to commercialize one of its product candidates. Should these licensees discontinue sales of our products, or should commercialization efforts of our product candidates be curtailed, our revenues could be adversely impacted. |
Stock Based Compensation | The Company recognizes compensation cost for third party and employee services rendered in exchange for an equity instrument award based on the fair value of the award on the date of grant. The Company uses the Black-Sholes option-pricing model in determining the fair value of options and warrants. In determining the expected volatility, the Company bases this assumption on the historical volatilities of the Company's common stock over the expected life of the stock acquisition rights. |
Comprehensive Income | Comprehensive income is net income plus certain items that are recorded directly to stockholders' equity, bypassing net income. With the exception of foreign exchange gains and losses, the Company has no other components in its comprehensive income (loss) accounts. |
Recent Issued Standards | The FASB has issued Accounting Standards Update (ASU) No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The FASB issued this ASU as part of its initiative to reduce complexity in accounting standards. The objective of the simplification initiative is to identify, evaluate, and improve areas of U.S. GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statements. This ASU eliminates from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. The FASB heard from stakeholders that the concept of extraordinary items causes uncertainty because it is unclear when an item should be considered both unusual and infrequent. Additionally, some stakeholders said that although users find information about unusual or infrequent events and transactions useful, they do not find the extraordinary item classification and presentation necessary to identify those events and transactions. Other stakeholders noted that it is extremely rare in current practice for a transaction or event to meet the requirements to be presented as an extraordinary item. This ASU will also align more closely U.S. GAAP income statement presentation guidance with IAS 1, Presentation of Financial Statements, which prohibits the presentation and disclosure of extraordinary items. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The effective date is the same for both public business entities and all other entities. The FASB has issued an Accounting Standards Update (ASU) No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which is intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). The ASU focuses on the consolidation evaluation for reporting organizations (public and private companies and not-for-profit organizations) that are required to evaluate whether they should consolidate certain legal entities. In addition to reducing the number of consolidation models from four to two, the new standard simplifies the FASB Accounting Standards Codification™ and improves current GAAP by: - Placing more emphasis on risk of loss when determining a controlling financial interest. A reporting organization may no longer have to consolidate a legal entity in certain circumstances based solely on its fee arrangement, when certain criteria are met. - Reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (VIE). - Changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. The ASU will be effective for periods beginning after December 15, 2015, for public companies. For private companies and not-for-profit organizations, the ASU will be effective for annual periods beginning after December 15, 2016; and for interim periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The FASB has issued Accounting Standards Update (ASU) No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. For public business entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. Early adoption of the amendments is permitted for financial statements that have not been previously issued. The amendments should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, an entity is required to comply with the applicable disclosures for a change in an accounting principle. These disclosures include the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that has been retrospectively adjusted, and the effect of the change on the financial statement line items (i.e., debt issuance cost asset and the debt liability). The FASB has issued Accounting Standards Update (ASU) No. 2015-04, Compensation - Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets. For an entity with a fiscal year-end that does not coincide with a month-end, the amendments in this ASU provide a practical expedient that permits the entity to measure defined benefit plan assets and obligations using the month-end that is closest to the entity's fiscal year-end and apply that practical expedient consistently from year to year. The practical expedient should be applied consistently to all plans if an entity has more than one plan. Employee benefit plans are not within the scope of the amendments. If a contribution or significant event (such as a plan amendment, settlement, or curtailment that calls for a remeasurement in accordance with existing requirements) occurs between the month-end date used to measure defined benefit plan assets and obligations and an entity's fiscal year-end, the entity should adjust the measurement of defined benefit plan assets and obligations to reflect the effects of those contributions or significant events. However, an entity should not adjust the measurement of defined benefit plan assets and obligations for other events that occur between the month-end measurement and the entity's fiscal year-end that are not caused by the entity (e.g., changes in market prices or interest rates). If an entity applies the practical expedient and a contribution is made between the month-end date used to measure defined benefit plan assets and obligations and the entity's fiscal year-end, the entity should not adjust the fair value of each class of plan assets for the effects of the contribution. Instead, the entity should disclose the amount of the contribution to permit reconciliation of the total fair value of all the classes of plan assets in the fair value hierarchy to the ending balance of the fair value of plan assets. An entity is required to disclose the accounting policy election and the date used to measure defined benefit plan assets and obligations in accordance with the amendments in this ASU. The amendments are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. Earlier application is permitted. The amendments should be applied prospectively. IFRS does not have a practical expedient that permits an entity to measure defined benefit plan assets and obligations as of the month-end that is closest to the entity's fiscal year-end (or the month-end that is closest to the date of a significant event that occurred in an interim period), whereas the amendments in this Update provide that practical expedient. The FASB has issued Accounting Standards Update No. 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. Existing GAAP does not include explicit guidance about a customer's accounting for fees paid in a cloud computing arrangement. Examples of cloud computing arrangements include: (a) software as a service; (b) platform as a service; (c) infrastructure as a service; and (d) other similar hosting arrangements. The amendments add guidance to Subtopic 350-40, Intangibles - Goodwill and Other - Internal-Use Software, which will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The guidance already exists in the FASB Accounting Standards Codification™ in paragraphs 985-605-55-121 through 55-123, but it is included in a Subtopic applied by cloud service providers to determine whether an arrangement includes the sale or license of software. The amendments provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments do not change the accounting for a customer's accounting for service contracts. As a result of the amendments, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. For public business entities, the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. For all other entities, the amendments will be effective for annual periods beginning after December 15, 2015, and interim periods in annual periods beginning after December 15, 2016. Early adoption is permitted for all entities. An entity can elect to adopt the amendments either: (1) prospectively to all arrangements entered into or materially modified after the effective date; or (2) retrospectively. For prospective transition, the only disclosure requirements at transition are the nature of and reason for the change in accounting principle, the transition method, and a qualitative description of the financial statement line items affected by the change. For retrospective transition, the disclosure requirements at transition include the requirements for prospective transition and quantitative information about the effects of the accounting change. The FASB has issued ASU No. 2015-06, Earnings Per Share (Topic 260): Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions (a consensus of the FASB Emerging Issues Task Force). The amendments apply to master limited partnerships subject to the Master Limited Partnerships Subsections of Topic 260, Earnings per Share, that receive net assets through a dropdown transaction. The amendments specify that for purposes of calculating historical earnings per unit under the two-class method, the earnings (losses) of a transferred business before the date of a dropdown transaction should be allocated entirely to the general partner. In that circumstance, the previously reported earnings per unit of the limited partners (which is typically the earnings per unit measure presented in the financial statements) would not change as a result of the dropdown transaction. Qualitative disclosures about how the rights to the earnings (losses) differ before and after the dropdown transaction occurs for purposes of computing earnings per unit under the two-class method also are required. Current GAAP does not contain guidance for master limited partnerships that specifies how historical earnings per unit should be affected when a dropdown transaction occurs that is accounted for as a transaction between entities under common control. The amendments are effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Earlier application is permitted. The amendments should be applied retrospectively for all financial statements presented. The FASB has issued Accounting Standards Update 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). The amendments apply to reporting entities that elect to measure the fair value of an investment using the net asset value per share (or its equivalent) practical expedient. Topic 820, Fair Value Measurement, permits a reporting entity, as a practical expedient, to measure the fair value of certain investments using the net asset value per share of the investment. Currently, investments valued using the practical expedient are categorized within the fair value hierarchy on the basis of whether the investment is redeemable with the investee at net asset value on the measurement date, never redeemable with the investee at net asset value, or redeemable with the investee at net asset value at a future date. For investments that are redeemable with the investee at a future date, a reporting entity must consider the length of time until those investments become redeemable to determine the classification within the fair value hierarchy. The amendments remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The amendments are effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. A reporting entity should apply the amendments retrospectively to all periods presented. The retrospective approach requires that an investment for which fair value is measured using the net asset value per share practical expedient be removed from the fair value hierarchy in all periods presented in an entity's financial statements. Earlier application is permitted. The FASB has issued ASU No. 2015-08, Business Combinations (Topic 805): Pushdown Accounting-Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115. This ASU amends various SEC paragraphs of the FASB Accounting Standards CodificationTM pursuant to the issuance of SEC Staff Accounting Bulletin No. 115. The FASB has issued Accounting Standards Update (ASU) No. 2015-10, Technical Corrections and Improvements. The amendments cover a wide range of Topics in the FASB Accounting Standards Codification™ (Codification). The amendments generally fall into one of the types of amendments listed below. 1. Amendments Related to Differences between Original Guidance and the Codification. These amendments arose because of differences between original guidance (e.g., FASB Statements, EITF Issues, and so forth) and the Codification. These amendments principally carry forward pre-Codification guidance or subsequent amendments into the Codification. Many times, either the writing style or phrasing of the original guidance did not directly translate into the Codification format and style. As a result, the meaning of the guidance might have been unintentionally altered. Alternatively, amendments in this section may relate to guidance that was codified without some text, references, or phrasing that, upon review, was deemed important to the guidance. 2. Guidance Clarification and Reference Corrections. These amendments provide clarification through updating wording, correcting references, or a combination of both. In most cases, the feedback suggested that, without these enhancements, guidance may be misapplied or misinterpreted. 3. Simplification. These amendments streamline or simplify the Codification through minor structural changes to headings or minor editing of text to improve the usefulness and understandability of the Codification. 4. Minor Improvements. These amendments improve the guidance and are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments represent changes to clarify the Codification, correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. In addition, some of the amendments will make the Codification easier to understand and easier to apply by eliminating inconsistencies, providing needed clarifications, and improving the presentation of guidance in the Codification. Transition guidance varies based on the amendments. The amendments that require transition guidance are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. All other amendments will be effective upon issuance. The FASB has issued Accounting Standards Update (ASU) No, 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. Topic 330, Inventory, currently requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The amendments do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The FASB has issued Accounting Standards Update (ASU) No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. All other entities may apply the guidance in ASU 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, including interim reporting periods within that reporting period. All other entities also may apply the guidance in ASU 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, and interim reporting periods within annual reporting periods beginning one year after the annual reporting period in which the entity first applies the guidance in ASU 2014-09. The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information. |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Summary Of Significant Accounting Policies Tables | |
Foreign currency translation | September 30, 2015 September 30, 2014 September 30, 2013 Year-end CAD: USD exchange rate 0.7458 0.8964 0.9705 Average Yearly CAD: USD exchange rate 0.8145 0.9239 0.8747 Year end RMB: USD exchange rate 0.1574 0.1625 0.1626 Average Yearly RMB: USD exchange rate 0.1625 0.1629 0.1616 |
Property plant and equipment | Furniture and Fixtures 5 - 7 years Machinery and Equipment 3 - 7 years |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Accounts Receivable Tables | |
ACCOUNTS RECEIVABLE | 2015 2014 2013 Trade Accounts Receivable $ - $ - $ 1,741 Other Accounts Receivable 262 440 160,798 $ 262 $ 440 $ 162,539 |
PROPERTY, PLANT & EQUIPMENT (Ta
PROPERTY, PLANT & EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
TwoThousandTwelve [Member] | |
PROPERTY, PLANT & EQUIPMENT | 2015 2014 2013 Furniture and Fixtures $ 6,404 $ 6,612 $ 6,619 Machinery and Equipment 17,117 17,357 17,372 COST 23,521 23,969 23,991 Less: Accumulated depreciation/amortization Furniture and Fixtures 3,096 1,873 552 Machinery and Equipment 9,551 6,390 2,921 12,647 8,263 3,473 NET $ 10,874 $ 15,706 $ 20,518 |
ACCOUNTS PAYABLE AND ACCRUED 28
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Accounts Payable And Accrued Liabilities Tables | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 2015 2014 2013 Accounts Payable $ 417,866 $ 404,986 $ 252,749 Professional services (legal, audit, financial) 16,500 15,000 14,000 Other 135,363 70,447 69,152 $ 569,729 $ 490,433 $ 355,901 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Notes Payable Tables | |
NOTES PAYABLE | September 30, 2015 2014 2013 Promissory Notes Issued and outstanding, net of repayments and conversions: $ 1,096,523 $ 916,750 $ 597,827 Interest accrued 459,795 411,766 343,789 Promissory Notes Payable $ 1,556,318 $ 1,328,516 $ 941,616 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Commitments Tables | |
Aggregate minimum annual and total payments due under these operating leases | As of September 30, 2015 2014 2013 Car Lease $ 28,900 4,534 10,288 TOTAL $ 28,900 4,534 10,288 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Income Taxes Tables | |
Regional sources of tax losses | 2015 2014 2013 North America $ (813,409 ) $ (3,141,208 ) $ (127,369 ) Outside North America (527,184 ) (716,713 ) (631,107 ) $ (1,340,593 ) $ (3,857,921 ) $ (758,476 ) |
Tax losses by year of origin and year of expiry | Year of United Year of Year of Outside Year of Origin States Expiry Canada Expiry North America Expiry 1998 212,899 2018 1999 795,878 2019 2000 6,179 2020 2001 292,351 2021 2002 1,017,792 2022 2003 1,189,476 2023 2004 790,108 2024 2005 2,166,634 2025 $ 732,448 2015 2006 1,764,202 2026 682,619 2016 2007 1,530,976 2027 293,528 2014 2008 1,266,180 2028 99,852 2015 2009 208,940 2029 97,040 2019 78,953 2016 2010 477,350 2030 54,697 2020 27,267 2017 2011 77,922 2031 184,138 2021 2012 38,979 2032 90,950 2022 2013 3,502 2033 123,867 2023 631,107 2020 2014 3,060,847 2034 80,361 2024 716,713 2021 2015 813,409 2035 527,184 2022 TOTAL $ 15,713,624 $ 2,046,120 $ 2,374,604 CONSOLIDATED TAX LOSSES $ 20,134,348 |
Deferred tax assets | 2015 2014 2013 Deferred tax assets: North America $ 5,874,417 $ 5,846,486 $ 4,762,769 Outside North America 297,184 232,634 169,606 Sub-total 6,171,601 6,079,120 4,932,375 Less Valuation allowance (6,171,601 ) (6,079,120 ) (4,932,375 ) Net deferred tax assets - - - |
Consolidated effective tax (benefit) rate | 2015 2014 2013 Combined Statutory Rates 31.3 % 31.3 % 31.3 % Non-deductible expenses (9 ) (9 ) (9 ) Change in valuation allowance (22.3 ) (22.3 ) (22.3 ) Effective tax rate 0 % 0 % 0 % |
STOCK OPTION PLANS (Tables)
STOCK OPTION PLANS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Stock Option Plans Tables | |
Stock option plan | Issue Date No. of Options Issued Exercise Price ($) Share Price on Grant Date ($) Expiry Date Remaining Contractual Life (Years) 5/29/2014 12,750,000 0.15 0.18 5/29/2024 8.67 5/29/2014 2,000,000 0.20 0.18 5/29/2019 3.67 Balance as at September 30, 2015 14,750,000 Weighted Average Contractual Life (Years 7.99 |
WARRANTS (Tables)
WARRANTS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Warrants Tables | |
Warrants outstanding to purchase shares of Common Stock | Issue Date No. of Warrants Issued Exercise Price ($) Share Price on Grant Date ($) Expiry Date Remaining Contractual Life (Years) 4/1/2009 600,000 0.03 0.02 3/31/2014 0 4/12/2010 748,030 0.085 0.05 4/11/2015 0.53 8/03/2011 80,000 0.075 0.04 6/30/2014 0 9/13/2011 50,000 0.075 0.05 6/30/2014 0 1/9/2012 30,000 0.075 0.05 6/30/2014 0 Balance as at September 30, 2012 and 2013 1,508,030 Weighted Average Contractual Life (Years) 0.53 9/24/2014 100,000 0.25 0.2 9/24/2016 1.98 9/25/2014 100,000 0.25 0.2 9/25/2016 1.98 Balance as at September 30, 2014 948,030 Weighted Average Contractual Life (Years) 0.84 10/07/2014 100,000 0.25 0.2 10/07/2016 1.02 1/20/2015 50,000 0.25 0.32 1/20/2018 2.30 1/29/2015 160,850 0.25 0.30 1/29/2018 2.33 2/3/2015 125,000 0.25 0.30 2/3/2018 2.34 4/21/2015 629,030 0.25 0.35 4/21/2018 2.55 8/4/2015 9,775 0.30 0.35 8/4/2018 2.83 9/17/2015 125,000 0.30 0.30 9/17/2018 2.96 9/25/2015 125,000 0.30 0.35 9/25/2015 2.98 9/29/2015 150,000 0.30 0.40 9/29/2018 3.00 Balance as at September 30, 2015 1,674,655 Weighted Average Contractual Life (Years) 2.33 |
SEGMENTED INFORMATION (Tables)
SEGMENTED INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Segmented Information Tables | |
Summary of revenues and non-operating revenues | Years ended September 30, Revenue Stream 2015 2014 2013 Disposal of Indaflex rights (Mexico Only) $ 0 $ 0 $ 760,329 Consulting Fees (North America) - - - Gross Operating Revenue 0 0 760,329 Other non-operating revenue: Forgone Accounts Payable 20,227 13,364 106,377 Gain from disposal of fixed assets - - - Legal Settlement - - - Interest Income 416 409 2,704 Total Revenues and Non-Operating Revenues $ 20,373 $ 13,773 $ 869,410 |
Summary of long lived assets | Years ended September 30, Long Lived Assets 2015 2014 2013 North America $ - $ - $ - Asia 10,874 15,706 20,518 Total Long Lived Assets $ 10,874 $ 15,706 $ 20,518 |
NATURE OF BUSINESS AND GOING 35
NATURE OF BUSINESS AND GOING CONCERN (Details Narrative) | Sep. 30, 2015 |
AlphaRx International Holdings Limited [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 80.00% |
AlphaRx Canada Limited [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Year end | CAD : USD | |||
Exchange rate to USD | 0.7458 | 0.8964 | 0.9705 |
Year end | RMB : USD | |||
Exchange rate to USD | 0.1574 | 0.1625 | 0.1626 |
Average Yearly | CAD : USD | |||
Exchange rate to USD | 0.8145 | 0.9239 | 0.8747 |
Average Yearly | RMB : USD | |||
Exchange rate to USD | 0.1625 | 0.1629 | 0.1616 |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Sep. 30, 2015 | |
Furniture and Fixtures [Member] | Minimum [Member] | |
Estimated useful lives | 5 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Estimated useful lives | 7 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Estimated useful lives | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Estimated useful lives | 7 years |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Accounts Receivable Details | |||
Trade Accounts Receivable | $ 1,741 | ||
Other Accounts Receivable | $ 262 | $ 440 | 160,798 |
Account Receivable, Net | $ 262 | $ 440 | $ 162,539 |
PROPERTY, PLANT & EQUIPMENT (De
PROPERTY, PLANT & EQUIPMENT (Details) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Property, Plant and Equipment [Line Items] | |||
Property Plant and Equipment Gross | $ 23,521 | $ 23,969 | $ 23,991 |
Less: Accumulated depreciation/amortization | 12,647 | 8,263 | 3,473 |
Property Plant and Equipment Net | 10,874 | 15,706 | 20,518 |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property Plant and Equipment Gross | 6,404 | 6,612 | 6,619 |
Less: Accumulated depreciation/amortization | 3,096 | 1,873 | 552 |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property Plant and Equipment Gross | 17,117 | 17,357 | 17,372 |
Less: Accumulated depreciation/amortization | $ 9,551 | $ 6,390 | $ 2,921 |
ACCOUNTS PAYABLE AND ACCRUED 40
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Accounts Payable And Accrued Liabilities Details | |||
Accounts Payable | $ 417,866 | $ 404,986 | $ 252,749 |
Professional services (legal, audit, financial) | 16,500 | 15,000 | 14,000 |
Other | 135,363 | 70,447 | 69,152 |
Accounts Payable, Net | $ 569,729 | $ 490,433 | $ 355,901 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Notes Payable Details | |||
Promissory Notes Issued and outstanding, net of repayments and conversions: | $ 1,096,523 | $ 916,750 | $ 597,827 |
Interest accrued | 459,795 | 411,766 | 343,789 |
Promissory Notes Payable | $ 1,556,318 | $ 1,328,516 | $ 941,616 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Minimum interest rate on promissory notes | 8.00% | ||
Maximum interest rate on promissory notes | 12.00% | ||
Michael Lee CEO [Member] | |||
Note Payable | $ 67,154 | $ 27,731 | |
Accrued interest | 29,866 | 70,922 | |
Promissory Notes [Member] | |||
Promissory notes, repaid | 0 | 15,607 | $ 101,299 |
Promissory notes, issued | $ 276,349 | $ 318,923 | $ 0 |
COMMITMENTS (Details)
COMMITMENTS (Details) | Sep. 30, 2015USD ($) |
2,013 | $ 10,288 |
2,014 | 4,534 |
2,015 | 28,900 |
CarLeaseMember | |
2,013 | 10,288 |
2,014 | 4,534 |
2,015 | $ 28,900 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) - $ / shares | 12 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 | 250,000,000 | ||
Common Stock, Shares, Issued | 89,036,000 | 89,036,000 | 89,036,000 | ||
Common Stock, Par Value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Common Stock, Shares, Outstanding | 89,036,000 | 89,036,000 | 89,036,000 | ||
Common Stock, Shares | 1,674,655 | ||||
Common Stock cancelled for settlement | 1,060,000 | ||||
Common Stock issued for acquisition | 70,000,000 | ||||
Warrant outstanding to purchase common stock | 1,674,655 | ||||
Option outstanding to purchase common stock | 14,750,000 | ||||
Capital Stock issued on diluted basis | 104,734,030 | 90,544,030 | |||
Common Stock outstanding on diluted basis | 105,460,655 | ||||
Private Placement [Member] | |||||
Common Stock, Shares, Issued | 300,000 | 1,300,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Tax Losses | $ (1,340,593) | $ (3,857,921) | $ (758,476) |
North America [Member] | |||
Tax Losses | (813,409) | (3,141,208) | (127,369) |
Outside North America [Member] | |||
Tax Losses | $ (527,184) | $ (716,713) | $ (631,107) |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) | 12 Months Ended |
Sep. 30, 2015USD ($) | |
Tax losses by year of Origin | $ 20,134,348 |
United States [Member] | |
Tax losses by year of Origin | 15,713,624 |
Canada [Member] | |
Tax losses by year of Origin | 2,046,120 |
Outside North America [Member] | |
Tax losses by year of Origin | 2,374,604 |
1998 [Member] | United States [Member] | |
Tax losses by year of Origin | $ 212,899 |
Year Of Expiry | 2,018 |
1999 [Member] | United States [Member] | |
Tax losses by year of Origin | $ 795,878 |
Year Of Expiry | 2,019 |
2000 [Member] | United States [Member] | |
Tax losses by year of Origin | $ 6,179 |
Year Of Expiry | 2,020 |
2001 [Member] | United States [Member] | |
Tax losses by year of Origin | $ 292,351 |
Year Of Expiry | 2,021 |
2002 [Member] | United States [Member] | |
Tax losses by year of Origin | $ 1,017,792 |
Year Of Expiry | 2,022 |
2003 [Member] | United States [Member] | |
Tax losses by year of Origin | $ 1,189,476 |
Year Of Expiry | 2,023 |
2004 [Member] | United States [Member] | |
Tax losses by year of Origin | $ 790,108 |
Year Of Expiry | 2,024 |
2005 [Member] | United States [Member] | |
Tax losses by year of Origin | $ 2,166,634 |
Year Of Expiry | 2,025 |
2005 [Member] | Canada [Member] | |
Tax losses by year of Origin | $ 732,448 |
Year Of Expiry | 2,015 |
2006 [Member] | United States [Member] | |
Tax losses by year of Origin | $ 1,764,202 |
Year Of Expiry | 2,026 |
2006 [Member] | Canada [Member] | |
Tax losses by year of Origin | $ 682,619 |
Year Of Expiry | 2,016 |
2007 [Member] | United States [Member] | |
Tax losses by year of Origin | $ 1,530,976 |
Year Of Expiry | 2,027 |
2007 [Member] | Outside North America [Member] | |
Tax losses by year of Origin | $ 293,528 |
Year Of Expiry | 2,014 |
2008 [Member] | United States [Member] | |
Tax losses by year of Origin | $ 1,266,180 |
Year Of Expiry | 2,028 |
2008 [Member] | Outside North America [Member] | |
Tax losses by year of Origin | $ 99,852 |
Year Of Expiry | 2,015 |
2009 [Member] | United States [Member] | |
Tax losses by year of Origin | $ 208,940 |
Year Of Expiry | 2,029 |
2009 [Member] | Canada [Member] | |
Tax losses by year of Origin | $ 97,040 |
Year Of Expiry | 2,019 |
2009 [Member] | Outside North America [Member] | |
Tax losses by year of Origin | $ 78,953 |
Year Of Expiry | 2,016 |
2010 [Member] | United States [Member] | |
Tax losses by year of Origin | $ 477,350 |
Year Of Expiry | 2,030 |
2010 [Member] | Canada [Member] | |
Tax losses by year of Origin | $ 54,697 |
Year Of Expiry | 2,020 |
2010 [Member] | Outside North America [Member] | |
Tax losses by year of Origin | $ 27,267 |
Year Of Expiry | 2,017 |
2011 [Member] | United States [Member] | |
Tax losses by year of Origin | $ 77,922 |
Year Of Expiry | 2,031 |
2011 [Member] | Canada [Member] | |
Tax losses by year of Origin | $ 184,138 |
Year Of Expiry | 2,021 |
2012 [Member] | United States [Member] | |
Tax losses by year of Origin | $ 38,979 |
Year Of Expiry | 2,032 |
2012 [Member] | Canada [Member] | |
Tax losses by year of Origin | $ 90,950 |
Year Of Expiry | 2,022 |
2013 [Member] | United States [Member] | |
Tax losses by year of Origin | $ 3,502 |
Year Of Expiry | 2,033 |
2013 [Member] | Canada [Member] | |
Tax losses by year of Origin | $ 123,867 |
Year Of Expiry | 2,023 |
2013 [Member] | Outside North America [Member] | |
Tax losses by year of Origin | $ 631,107 |
Year Of Expiry | 2,020 |
2014 [Member] | United States [Member] | |
Tax losses by year of Origin | $ 3,060,847 |
Year Of Expiry | 2,034 |
2014 [Member] | Canada [Member] | |
Tax losses by year of Origin | $ 80,361 |
Year Of Expiry | 2,024 |
2014 [Member] | Outside North America [Member] | |
Tax losses by year of Origin | $ 716,713 |
Year Of Expiry | 2,021 |
2015 [Member] | United States [Member] | |
Tax losses by year of Origin | $ 813,409 |
Year Of Expiry | 2,035 |
2015 [Member] | Outside North America [Member] | |
Tax losses by year of Origin | $ 527,184 |
Year Of Expiry | 2,022 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Deferred tax assets | $ 6,171,601 | $ 6,079,120 | $ 4,932,375 |
Less Valuation allowance | $ (6,171,601) | $ (6,079,120) | $ (4,932,375) |
Net deferred tax assets | |||
North America [Member] | |||
Deferred tax assets | $ 5,874,417 | $ 5,846,486 | $ 4,762,769 |
Outside North America [Member] | |||
Deferred tax assets | $ 297,184 | $ 232,634 | $ 169,606 |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Taxes Details 3 | |||
Combined Statutory Rates | 31.30% | 31.30% | 31.30% |
Non-deductible expenses | (9.00%) | (9.00%) | (9.00%) |
Change in valuation allowance | (22.30%) | (22.30%) | (22.30%) |
Effective tax rate | 0.00% | 0.00% | 0.00% |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Valuation Allowance | $ (6,171,601) | $ (6,079,120) | $ (4,932,375) |
North America [Member] | |||
Deferred Tax Assets | 34.50% | ||
Outside North America [Member] | |||
Deferred Tax Assets | 15.00% |
STOCK OPTION PLANS (Details)
STOCK OPTION PLANS (Details) | 12 Months Ended |
Sep. 30, 2015$ / sharesshares | |
No. of Options Issued | shares | 14,750,000 |
Remaining Contractual Life(Years) | 7 years 11 months 27 days |
2013 Share Incentive Plan [Member] | |
Issued Date | May 29, 2014 |
No. of Options Issued | shares | 12,750,000 |
Exercise Price | $ 0.15 |
Share Price on Grant Date | $ 0.18 |
Expiry Date | May 29, 2024 |
Remaining Contractual Life(Years) | 8 years 8 months 1 day |
2013 Plan [Member] | |
Issued Date | May 29, 2014 |
No. of Options Issued | shares | 2,000,000 |
Exercise Price | $ 0.20 |
Share Price on Grant Date | $ 0.18 |
Expiry Date | May 29, 2019 |
Remaining Contractual Life(Years) | 3 years 8 months 1 day |
STOCK OPTION PLANS (Details Nar
STOCK OPTION PLANS (Details Narrative) | 12 Months Ended |
Sep. 30, 2015shares | |
Stock Option Plans Details Narrative | |
Stock options granted | 0 |
Stock options outstanding | 14,750,000 |
WARRANTS (Details)
WARRANTS (Details) - $ / shares | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
No. of Warrants Issued | 0 | |
4/1/2009 [Member] | ||
No. of Warrants Issued | 600,000 | |
Exercise Price | $ 0.03 | |
Share Price on Grant Date | $ 0.02 | |
Expiry Date | Mar. 31, 2014 | |
Remaining Contractual Life (Years) | 0 years | |
4/12/2010 [Member] | ||
No. of Warrants Issued | 748,030 | |
Exercise Price | $ 0.085 | |
Share Price on Grant Date | $ 0.05 | |
Expiry Date | Apr. 11, 2015 | |
Remaining Contractual Life (Years) | 6 months 11 days | |
8/03/2011 [Member] | ||
No. of Warrants Issued | 80,000 | |
Exercise Price | $ 0.075 | |
Share Price on Grant Date | $ 0.04 | |
Expiry Date | Jun. 30, 2014 | |
Remaining Contractual Life (Years) | 0 years | |
9/13/2011 [Member] | ||
No. of Warrants Issued | 50,000 | |
Exercise Price | $ 0.075 | |
Share Price on Grant Date | $ 0.05 | |
Expiry Date | Jun. 30, 2014 | |
Remaining Contractual Life (Years) | 0 years | |
1/9/2012 [Member] | ||
No. of Warrants Issued | 30,000 | |
Exercise Price | $ 0.075 | |
Share Price on Grant Date | $ 0.05 | |
Expiry Date | Jun. 30, 2014 | |
Remaining Contractual Life (Years) | 0 years | |
Balance as at September 30, 2012 and 2013 [Member] | ||
No. of Warrants Issued | 1,508,030 | |
Remaining Contractual Life (Years) | 6 months 11 days | |
9/24/2014 [Member] | ||
No. of Warrants Issued | 100,000 | |
Exercise Price | $ 0.25 | |
Share Price on Grant Date | $ 0.2 | |
Expiry Date | Sep. 24, 2016 | |
Remaining Contractual Life (Years) | 1 year 11 months 23 days | |
9/25/2014 [Member] | ||
No. of Warrants Issued | 100,000 | |
Exercise Price | $ 0.25 | |
Share Price on Grant Date | $ 0.2 | |
Expiry Date | Sep. 25, 2016 | |
Remaining Contractual Life (Years) | 1 year 11 months 23 days | |
Balance as at September 30, 2014 [Member] | ||
No. of Warrants Issued | 948,030 | |
Remaining Contractual Life (Years) | 10 months 2 days | |
10/07/2014 [Member] | ||
No. of Warrants Issued | 100,000 | |
Exercise Price | $ 0.25 | |
Share Price on Grant Date | $ 0.2 | |
Expiry Date | Oct. 7, 2016 | |
Remaining Contractual Life (Years) | 1 year 7 days | |
1/20/2015 [Member] | ||
No. of Warrants Issued | 50,000 | |
Exercise Price | $ 0.25 | |
Share Price on Grant Date | $ 0.32 | |
Expiry Date | Jan. 20, 2018 | |
Remaining Contractual Life (Years) | 2 years 3 months 18 days | |
1/29/2015 [Member] | ||
No. of Warrants Issued | 160,850 | |
Exercise Price | $ 0.25 | |
Share Price on Grant Date | $ 0.3 | |
Expiry Date | Jan. 29, 2018 | |
Remaining Contractual Life (Years) | 2 years 3 months 29 days | |
2/3/2015 [Member] | ||
No. of Warrants Issued | 125,000 | |
Exercise Price | $ 0.25 | |
Share Price on Grant Date | $ 0.3 | |
Expiry Date | Feb. 3, 2018 | |
Remaining Contractual Life (Years) | 2 years 4 months 2 days | |
4/21/2015 [Member] | ||
No. of Warrants Issued | 629,030 | |
Exercise Price | $ 0.25 | |
Share Price on Grant Date | $ 0.35 | |
Expiry Date | Apr. 21, 2018 | |
Remaining Contractual Life (Years) | 2 years 6 months 18 days | |
8/4/2015 [Member] | ||
No. of Warrants Issued | 9,775 | |
Exercise Price | $ 0.3 | |
Share Price on Grant Date | $ 0.35 | |
Expiry Date | Aug. 4, 2018 | |
Remaining Contractual Life (Years) | 2 years 9 months 29 days | |
9/17/2015 [Member] | ||
No. of Warrants Issued | 125,000 | |
Exercise Price | $ 0.3 | |
Share Price on Grant Date | $ 0.3 | |
Expiry Date | Sep. 17, 2018 | |
Remaining Contractual Life (Years) | 2 years 11 months 16 days | |
9/25/2015 [Member] | ||
No. of Warrants Issued | 125,000 | |
Exercise Price | $ 0.3 | |
Share Price on Grant Date | $ 0.35 | |
Expiry Date | Sep. 25, 2015 | |
Remaining Contractual Life (Years) | 2 years 11 months 23 days | |
9/29/2015 [Member] | ||
No. of Warrants Issued | 150,000 | |
Exercise Price | $ 0.3 | |
Share Price on Grant Date | $ 0.4 | |
Expiry Date | Sep. 29, 2018 | |
Remaining Contractual Life (Years) | 3 years | |
Balance as at September 30, 2015 [Member] | ||
No. of Warrants Issued | 1,674,655 | |
Remaining Contractual Life (Years) | 2 years 3 months 29 days |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Mr. Lee [Member] | |||
Accured Interest | $ 34,346 | ||
Loan amounts including accrued interest | 67,154 | $ 79,699 | $ 70,922 |
Dr. Moore [Member] | |||
Accured Interest | 34,346 | ||
Loan amounts including accrued interest | $ 70,922 |
SEGMENTED INFORMATION (Details)
SEGMENTED INFORMATION (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Revenue Stream | |||
Disposal of Indaflex rights (Mexico Only) | $ 0 | $ 0 | $ 760,329 |
Consulting Fees (North America) | |||
Gross Operating Revenue | $ 0 | $ 0 | $ 760,329 |
Other non-operating revenue: | |||
Forgone Accounts Payable | $ 20,227 | $ 13,364 | $ 106,377 |
Gain from disposal of fixed assets | |||
Legal Settlement | |||
Interest Income | $ 416 | $ 409 | $ 2,704 |
Total Revenues and Non-Operating Revenues | $ 20,373 | $ 13,773 | $ 869,410 |
SEGMENTED INFORMATION (Details
SEGMENTED INFORMATION (Details 1) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Total Long Lived Assets | $ 10,874 | $ 15,706 | $ 20,518 |
North America [Member] | |||
Total Long Lived Assets | |||
Asia [Member] | |||
Total Long Lived Assets | $ 10,874 | $ 15,706 | $ 20,518 |
GOODWILL (Details Narrative)
GOODWILL (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Goodwill Details Narrative | |||
Write-down of goodwill | $ 19,425,346 |