FonU2 (FONU) 10-K 6 Jan 14 2013 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Sep. 30, 2013	Dec. 23, 2013	Dec. 05, 2013
Document and Entity Information:	'	'	'
Entity Registrant Name	'FONU2 Inc.	'	'
Document Type	'10-K	'	'
Document Period End Date	30-Sep-13	'	'
Amendment Flag	'false	'	'
Entity Central Index Key	'0001168325	'	'
Current Fiscal Year End Date	'--09-30	'	'
Entity Common Stock, Shares Outstanding	'	75,514,919	'
Public Float	'	'	$3,002,649
Entity Filer Category	'Smaller Reporting Company	'	'
Entity Current Reporting Status	'No	'	'
Entity Voluntary Filers	'No	'	'
Entity Well-known Seasoned Issuer	'No	'	'
Document Fiscal Year Focus	'2013	'	'
Document Fiscal Period Focus	'FY	'	'

Balance_Sheets

Balance Sheets (USD $)	Sep. 30, 2013	Sep. 30, 2012
CURRENT ASSETS	'	'
Cash	$54,197	$3,038
Inventory	7,520	7,276
Prepaid expenses	218,384	220,548
Total Current Assets	280,101	230,862
PROPERTY AND EQUIPMENT, net	13,714	12,855
OTHER ASSETS	'	'
Security deposits	2,285	2,285
TOTAL ASSETS	296,100	246,002
CURRENT LIABILITIES	'	'
Accounts payable and accrued expenses	29,685	81,926
Accrued interest payable	26,683	7,154
Payroll liabilities	86,000	136,424
Derivative liability	969,675	0
Notes payable	72,000	19,000
Convertible notes payable, net	61,439	133,000
Related party payable	188,300	0
Total Current Liabilities	1,433,782	377,504
TOTAL LIABILITIES	1,433,782	377,504
STOCKHOLDERS' (DEFICIT)	'	'
Common stock; 2,000,000,000 shares authorized, at $0.001 par value, 67,052,502 and 66,676,182 shares issued and outstanding, respectively	67,052	66,676
Additional paid-in capital	37,840,793	37,144,409
Deficit accumulated during the development stage	-39,045,527	-37,342,587
Total Stockholders' Deficit	-1,137,682	-131,502
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT)	296,100	246,002
Preferred stock series A	'	'
STOCKHOLDERS' (DEFICIT)	'	'
Preferred stock: Preferred stock series A; 20,000,000 shares authorized, at $0.01 par value, -0- and  -0- shares issued and outstanding, respectively; Preferred stock series B; 20,000,000 shares authorized, at $0.01 par value, -0- and -0- shares issued and outstanding, respectively	0	0
Preferred stock series B	'	'
STOCKHOLDERS' (DEFICIT)	'	'
Preferred stock: Preferred stock series A; 20,000,000 shares authorized, at $0.01 par value, -0- and  -0- shares issued and outstanding, respectively; Preferred stock series B; 20,000,000 shares authorized, at $0.01 par value, -0- and -0- shares issued and outstanding, respectively	$0	$0

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Common stock shares authorized	2,000,000,000	2,000,000,000
Common stock par value	$0.00	$0.00
Common stock shares issued	67,052,502	66,676,182
Common stock shares outstanding	67,052,502	66,676,182
Preferred stock series A	'	'
Preferred stock shares authorized	20,000,000	20,000,000
Preferred stock par value	$0.01	$0.01
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0
Preferred stock series B	'	'
Preferred stock shares authorized	20,000,000	20,000,000
Preferred stock par value	$0.01	$0.01
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0

Statement_of_Operations

Statement of Operations (USD $)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Revenues [Abstract]	'	'
REVENUES	$282,009	$81,455
COST OF SALES	117,283	47,018
GROSS PROFIT	164,726	34,437
OPERATING EXPENSES	'	'
Depreciation	2,141	0
Compensation	551,648	34,388,907
Professional fees	494,318	437,422
General and administrative	442,284	82,186
Total Operating Expenses	1,490,391	34,908,515
LOSS FROM OPERATIONS	-1,325,665	-34,874,078
OTHER EXPENSES	'	'
Interest expense	-191,853	-20,652
Gain on settlement of debt	118,551	0
Loss on derivative liability	-303,973	0
Total Other Expenses	-377,275	-20,652
INCOME (LOSS) BEFORE INCOME TAXES	-1,702,940	-34,894,730
PROVISION FOR INCOME TAXES	0	0
NET INCOME (LOSS)	($1,702,940)	($34,894,730)
BASIC AND DILUTED INCOME (LOSS) PER SHARE	($0.03)	($0.70)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING	58,648,828	49,941,022

Statements_of_Stockholders_Def

Statements of Stockholders' Deficit (USD $)	Preferred Series A	Preferred Series B	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning balance, Amount at Dec. 31, 2011	$8,682	$16,394	$16,003	$2,372,400	($2,447,857)	($34,378)
Beginning balance, Shares at Dec. 31, 2011	868,239	1,639,368	16,003,175	'	'	'
Conversion of preferred stock to common stock, Shares	-868,239	-1,639,368	2,507,607	'	'	'
Conversion of preferred stock to common stock, Amount	-8,682	-16,394	2,507,607	2,508	22,568	'
Common stock issued for cash, Shares	'	'	129,125	'	'	'
Common stock issued for cash, Amount	'	'	129	95,271	'	95,400
Common stock issued for services, Shares	'	'	7,020,341	'	'	'
Common stock issued for services, Amount	'	'	7,020	5,376,204	'	5,383,224
Common stock issued for services pursuant to non-dilution clauses, Shares	'	'	29,441,014	'	'	'
Common stock issued for services pursuant to non-dilution clauses, Amount	'	'	29,441	28,822,753	'	28,852,194
Shares issued to acquire Zaldiva.com, Shares	500,000	'	9,374,920	'	'	'
Shares issued to acquire Zaldiva.com, Amount	500	'	9,375	336,613	'	346,488
Common stock cancelled, Shares	'	'	-100,000	'	'	'
Common stock cancelled, Amount	'	'	-100	100	'	'
Settlement of preferred stock for property, Shares	-500,000	'	'	'	'	'
Settlement of preferred stock for property, Amount	-500	'	'	-320,200	'	-320,700
Common stock issued for prepaid services, Shares	'	'	2,250,000	'	'	'
Common stock issued for prepaid services, Amount	'	'	2,250	425,250	'	427,500
Common stock issued for interest on note, Shares	'	'	50,000	'	'	'
Common stock issued for interest on note, Amount	'	'	50	13,450	'	13,500
Net loss	'	'	'	'	-34,894,730	-34,894,730
Ending balance, Amount at Sep. 30, 2012	0	0	66,676	37,144,409	-37,342,587	-131,502
Ending balance, Shares at Sep. 30, 2012	0	0	66,676,182	'	'	'
Common stock issued for cash, Shares	'	'	6,250,000	'	'	'
Common stock issued for cash, Amount	'	'	6,250	243,750	'	250,000
Common stock issued for services, Shares	'	'	10,581,515	'	'	'
Common stock issued for services, Amount	'	'	10,582	463,719	'	474,301
Shares issued to acquire Zaldiva.com, Amount	'	'	'	'	'	0
Common stock cancelled, Shares	'	'	-27,958,306	'	'	'
Common stock cancelled, Amount	'	'	-27,959	27,959	'	'
Common stock issued for prepaid services, Shares	'	'	1,500,000	'	'	'
Common stock issued for prepaid services, Amount	'	'	1,500	253,500	'	255,000
Common stock issued for conversion of notes payable and other debts	'	'	10,003,111	'	'	'
Common stock issued for conversion of notes payable and other debts	'	'	10,003	204,256	'	214,259
Reclassification of derivative liabilities on conversions of debt	'	'	'	221,200	'	221,200
Derivative recognized on warrants granted	'	'	'	-718,000	'	-718,000
Net loss	'	'	'	'	-1,702,940	-1,702,940
Ending balance, Amount at Sep. 30, 2013	'	'	$67,052	$37,840,793	($39,045,527)	($1,137,682)
Ending balance, Shares at Sep. 30, 2013	'	'	67,052,502	'	'	'

Statements_of_Cash_Flows

Statements of Cash Flows (USD $)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Net Cash Provided by (Used in) Operating Activities [Abstract]	'	'
Net loss	($1,702,940)	($34,894,730)
Adjustments to reconcile loss to cash flows from operating activities:	'	'
Depreciation	2,141	0
Amortization of debt discount	136,841	13,500
Loss on derivative liability	303,973	0
Stock-based compensation	474,301	34,235,418
Gain on settlement of debt	-130,704	0
Default provision on convertible note payable	29,000	'
Changes in operating assets and liabilities	'	'
Inventory	-244	10,768
Prepaid expenses	257,164	206,952
Other assets	0	2,285
Accounts payable & accrued liabilities	141,327	199,089
Net Cash Used in Operating Activities	-489,141	-226,718
INVESTING ACTIVITIES	'	'
Purchase of fixed assets	-3,000	0
Cash received in acquisition of subsidiary	0	8,249
Net Cash Used in Investing Activities	-3,000	8,249
FINANCING ACTIVITIES	'	'
Bank overdraft	0	-893
Cash received on convertible notes payable	0	50,000
Cash received on notes payable	105,000	98,000
Repayment of notes payable	0	-21,000
Proceeds from related party payables	201,300	0
Repayments of related party payables	-13,000	0
Common and preferred stock issued for cash	250,000	95,400
Net Cash Provided by Financing Activities	543,300	221,507
NET INCREASE (DECREASE) IN CASH	51,159	3,038
CASH AT BEGINNING OF YEAR	3,038	0
CASH AT END OF YEAR	54,197	3,038
SUPPLEMENTAL CASH FLOW INFORMATION:	'	'
CASH PAID FOR: Interest	0	0
CASH PAID FOR: Income taxes	0	0
NON-CASH INVESTING ACTIVITY	'	'
Shares issued to acquire Zaldiva.com	0	338,239
Settlement of preferred stock for property	0	320,700
Conversion of preferred stock to common stock	0	25,076
Stock issued for prepaid expenses	0	427,500
Conversion of accounts payable to notes payable	23,500	0
Common stock issued for convertible notes payable and other debts	214,259	0
Cancellation of common stock	27,959	100
Debt discount from derivative liability	189,500	13,500
Write off of derivative liability into additional paid in capital	221,200	0
Common stock issued for prepaid expenses	255,000	0
Derivative liability on warrants granted	$718,000	$0

1_SUMMARY_OF_SIGNIFICANT_ACCOU

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Summary of significant accounting policies	'
	Nature of Business
	FONU2, Inc. (“the Company”) was organized on August 26, 2009, under the laws of the State of Florida, as Cygnus Internet, Inc.
	Reverse-Merger Transaction
	On December 2, 2011, the stockholders of Zaldiva, Inc., a Florida corporation (“Zaldiva”) approved Zaldiva’s change of domicile from the state of Florida to the state of Nevada.  The change of domicile was effectuated by merging Zaldiva into its newly-formed wholly-owned subsidiary, FONU2 Inc., a Nevada corporation formerly known as Zaldiva, Inc. (“FONU2”), with every share of Zaldiva’s common and preferred stock automatically being converted into one-half of one corresponding share of FONU2, and with all fractional shares that would otherwise result from such conversion being rounded up to the nearest whole share.  Zaldiva and FONU2 filed Articles of Merger in the States of Florida and Nevada on December 2, 2011.  The change of domicile and de facto reverse-split were effectuated on January 9, 2012.
	On March 6, 2012, the Company executed an Agreement and Plan of Reorganization (the “Agreement”) with FONU2, and Jeffrey M. Pollitt, who is the Company’s Chief Executive Officer and the holder of approximately 37% of the Company’s outstanding shares of common stock.  Under the Agreement, FONU2 acquired all of the material assets of the Company in exchange for 53,411,262 “unregistered” and “restricted” shares of FONU2’s common stock, which represented approximately 85% of FONU2’s issued and outstanding common stock upon issuance, with such shares to be issued pro rata to the Company’s common stockholders.
	The Agreement was accounted for as a reverse-merger recapitalization transaction, with FONU2 as the accounting acquirer, and Zaldiva as the legal acquirer.  The historical financial statements presented herein for the period prior to the merger date are those of FONU2.
	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
	Basic (Loss) per Common Share
	The Company computes net income (loss) per share in accordance with ASC 260 which requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.  For the years ended September 30, 2013 and 2012, the Company’s 6,250,000 and -0- warrants are excluded from the computation of diluted earnings per share as they are anti-dilutive. In addition, the 1,045,661 and 750,000 shares issuable upon conversion of convertible debt at September 30, 2013 and 2012, respectively, are also excluded from the computation of diluted earnings per share as they are anti-dilutive.
	Cash and Cash Equivalents
	For purposes of the Statement of Cash Flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.
	Property and Equipment
	Property and equipment is recorded at cost.  Major additions and improvements are capitalized and depreciated over their estimated useful lives.  Depreciation of property and equipment is determined using the straight-line method over their useful lives, which ranges from three to five years.  Gains or losses on the sale or disposal of property and equipment are included in the statements of operations. Maintenance and repairs that do not extend the useful life of the assets are expensed as incurred.
	Inventory
	The Company’s inventory consists of various comic books, toys, and other collectible items.  These items are purchased from external suppliers.  The inventory items are recorded and valued at cost. Management performs periodic reviews of its slow-moving inventory for possible impairment.  When slow-moving inventory is identified, its cost is also adjusted so as to represent the lower of cost or market at all times.
	Revenue Recognition
	The Company's revenues are generated from the sales of various comic books, toys, and other collectible items.  Sales are transacted primarily through the Company’s website, via credit card order; or through eBay, via Paypal or e-check transaction.  The Company follows guidance found in ASC 605, which provides guidance on the recognition, presentation and disclosure of revenue in financial statements.
	ASC 605 outlines the basic criteria that must be met to recognize revenue and provides guidance for disclosure related to revenue recognition policies. In general, the Company recognizes revenue related to merchandise sales when the following conditions are met:
	a)    Persuasive evidence of an arrangement exists,
	b)    Delivery has occurred or services have been rendered,
	c)    The fee is fixed or determinable,
	d)    Collectability is reasonably assured.
	Cost of Sales
	When an inventory item is sold, the Company recognizes cost of sales expense for the value of the inventory item sold.  This value includes the purchase price of the inventory item, plus any expenditures on improvements to the inventory items.  Shipping costs are not included in cost of sales calculations.
	Accounting Basis
	The basis is accounting principles generally accepted in the United States of America. The Company has adopted a September 30 fiscal year end.
	Stock-Based Compensation.
	The Company accounts for share-based compensation in accordance with Accounting Standards Codification subtopic 718-10, Stock Compensation (“ASC 718-10”). This requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors, including employee stock options and employee stock purchases related to an Employee Stock Purchase Plan based on the estimated fair values.
	Recent Accounting Pronouncements
	The Company has evaluated recent accounting pronouncements and their adoption has not had nor is not expected to have a material impact on the Company’s financial position or statements.

2_GOING_CONCERN

2. GOING CONCERN	12 Months Ended
	Sep. 30, 2013
Disclosure Text Block [Abstract]	'
Going Concern	'
	The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern.  However, the Company has accumulated deficit of $39,045,527 as of September 30, 2013, and negative working capital of $1,153,681.  During the year ended September 30, 2013 the Company realized negative cash flows from operations totaling $489,141.  The Company currently has limited liquidity, and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time.
	Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light of management’s efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.

3_CONVERTIBLE_NOTES_PAYABLE

3. CONVERTIBLE NOTES PAYABLE	12 Months Ended
	Sep. 30, 2013
Disclosure Text Block [Abstract]	'
Convertible Notes Payable	'
	During 2011, the Company entered into two debt agreements for a total of $75,000.  The notes carry interest at 10% and are convertible into shares of the Company’ common stock at a discount of 30% to the market price of the Company’s common stock, however the conversion price can be no lower than $0.10 or higher than $0.50.  During the year ended September 30, 2013 the Company converted $25,000 of this debt into 243,055 shares of the Company’s common stock.  As of September 30, 2013 and 2012, the Company owed $50,000 and $75,000, respectively, on these notes.  Accrued interest on these notes totaled $$8,317 and $5,102, respectively.
	During 2013, $58,000 of notes payable that were previously not convertible became convertible.  The embedded conversion options in these notes are required to be classified as liabilities.  See Note 7. The note payable was due on February 2, 2013, and the Company incurred an additional $29,000 owed as part of the principal of the note due to being in default. During the year ended September 30, 2013, the lender converted $87,000 of the note payable. As of September 30, 2013, the note had an outstanding principal of zero.
	On March 11, 2013 the Company entered into a convertible promissory note with an unrelated third party, wherein the Company borrowed $78,500.  $23,500 of the proceeds were paid directly to the Company’s vendors by the lender. The principal accrues interest at a rate of eight percent per annum and is due in full on December 16, 2013.  The note is convertible at the option of the holder at any point at least 180 days from the note date at a 42 percent discount to the average of the three lowest closing prices during the ten day period prior to conversion.  The note will accrue interest at a rate of 22 percent per annum should the Company default. The Company analyzed the conversion option for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that the instrument should be classified as liabilities once the conversion option becomes effective after 180 days due to there being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options.  During the year ended September 30, 2013 the lender converted $35,000 of the note principal into 417,224 shares of the Company’s common stock.  As of September 30, 2013 the note had an outstanding principal balance of $43,500.
	On June 12, 2013 the Company entered into a convertible promissory note with an unrelated third party, wherein the Company borrowed $53,000.  $3,000 of the proceeds were paid directly to the Company’s vendors by the lender.  The principal accrues interest at a rate of eight percent per annum and is due in full on March 14, 2014.  The note is convertible at the option of the holder at any point at least 180 days from the note date at a 42 percent discount to the average of the three lowest closing prices during the ten day period prior to conversion.  The note will accrue interest at a rate of 22 percent per annum should the Company default. The Company analyzed the conversion option for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that the instrument should be classified as liabilities once the conversion option becomes effective after 180 days due to there being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options.  As of September 30, 2013 the principal balance on this note remained at $53,000.
	During the year ended September 30, 2013 the Company recorded a debt discount totaling $168,902 relating to the derivative features of the convertible debts listed above (see Note 7). $136,841 of this amount was amortized to interest expense during the year ended September 30, 2013, leaving total unamortized debt discounts of $32,061 as of September 30, 2013.

4_NOTES_PAYABLE

4. NOTES PAYABLE	12 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]	'
Notes Payable	'
	On June 12, 2013 the Company borrowed $53,000 from an unrelated third party entity in the form of a note payable. The note accrues interest at a rate of eight percent per annum and is convertible into shares of the Company's common stock at a 58 percent of the lowest three trading prices in ten day period prior to conversion. The note becomes convertible 180 days after the date of the note. As of September 30, 2013 and 2012, the Company had $72,000 and $19,000 in outstanding notes payable, respectively.

5_RELATED_PARTY_NOTES_PAYABLE

5. RELATED PARTY NOTES PAYABLE	12 Months Ended
	Sep. 30, 2013
Disclosure Text Block [Abstract]	'
Related Party Notes Payable	'
	During the period ended September 30, 2013 the Company borrowed an aggregate amount of $188,300 from its former CEO, Jeff Pollitt. The note is unsecured, bears no interest and is due on demand.
	During the period ended September 30, 2013 the Company borrowed an aggregate amount of $13,000 from its CMO, Niccole Leigh. The Company repaid this amount in full during the period.
	As of September 30, 2013 and 2012, the Company had $188,300 and $-0-, respectively, in outstanding related party payables.

6_FAIR_VALUE_MEASUREMENTS

6. FAIR VALUE MEASUREMENTS	12 Months Ended
	Sep. 30, 2013
Disclosure Text Block [Abstract]	'
Fair Value Measurements	'
	As defined in FASB ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilized the market data of similar entities in its industry or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. FASB ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement).
	The three levels of the fair value hierarchy are as follows:
	Level 1    –    Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities.
	Level 2    –    Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date and includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars.
	Level 3    –    Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.
	The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value as September 30, 2013.
	Recurring Fair Value Measures	Level 1	Level 2	Level 3	Total
	LIABILITIES:
	Derivative liability	-	--	969,675	969,675

7_DERIVATIVE_INSTRUMENTS

7. DERIVATIVE INSTRUMENTS	12 Months Ended
	Sep. 30, 2013
Disclosure Text Block [Abstract]	'
Derivative instruments	'
	During 2013, the Company issued debt instruments that were convertible into common stock at a 42 percent discount to the average of the three lowest closing prices during the ten day period prior to conversion. See Note 6. The conversion options embedded in these instruments contain no explicit limit to the number of shares to be issued upon settlement and as a result are classified as liabilities under ASC 815. Additionally, because the number of shares to be issued upon settlement is indeterminate, all other share settle-able instruments must also be classified as liabilities. A debt discount of $168,902 was recorded as a result of this derivative liability, $136,841 of which was amortized into interest expense for the year ended September 30, 2013.
	During 2013, certain notes payable were converted resulting in settlement of the related derivative liabilities.  The Company re-measured the embedded conversion options at fair value on the date of settlement and recorded these amounts to additional paid-in capital.
	The following table summarizes the changes in the derivative liabilities during the period ended September 30, 2013:
	Ending balance as of September 30, 2012	$	-
	Additions due to new convertible debt and warrants issued		900,933
	Reclassification of derivative liabilities to additional paid-in capital due to conversion of debt		(221,200	)
	Change in fair value		289,942
	Ending balance as of September 30, 2013	$	969,675
	During the period ended September 30, 2013, the loss on derivatives of $303,973 in the statement of operations consisted of a loss on the change in fair value of $289,942 noted above and a loss of $14,031, which was the amount by which the derivative liabilities exceeded the principal of the related notes payable on the date the notes were issued.
	The Company uses the Black Scholes Option Pricing Model to value its derivatives based upon the following assumptions: dividend yield of -0-%, volatility of 86-693%, risk free rate of 0.12-0.18% and an expected term of 0.25 to one year.

8_COMMON_STOCK

8. COMMON STOCK	12 Months Ended
	Sep. 30, 2013
Disclosure Text Block [Abstract]	'
Common Stock	'
	During the period ended September 30, 2012 the Company converted 868,239 shares of Series A preferred stock and an additional 1,639,368 shares of Series B preferred stock into 2,507,607 shares of common stock.  The preferred shares were converted into common shares on a one preferred share for one common share basis, pursuant to the conversion terms of the preferred stock.
	During the period ended September 30, 2012 the Company issued 129,125 shares of common stock for cash proceeds of $95,400, at an average of $0.74 per share.  Additionally, the Company issued 7,020,341 shares of common stock for services rendered.  The shares issued for services were valued at the value of the most recent cash issuances, resulting in an aggregate value of $5,383,224.  The Company issued an additional 29,441,014 shares of common stock to various parties pursuant to certain non-dilution clauses in various service agreements.  These shares were valued at an aggregate of $28,852,194, or $0.98 per share.  The Company also issued 2,250,000 shares of common stock as a prepayment on certain professional services.  These shares were valued at an aggregate of $427,500.  Additionally, the Company issued 50,000 shares of common stock as payment of interest on a note payable.  These shares were valued at $13,500.
	On March 6, 2012, the Company executed an Agreement and Plan of Reorganization (the “Agreement”) with FONU2, and Jeffrey M. Pollitt, who is the Company’s Chief Executive Officer and the holder of approximately 37% of the Company’s outstanding shares of common stock.  Under the Agreement, FONU2 acquired all of the material assets of the Company in exchange for 53,411,262 “unregistered” and “restricted” shares of FONU2’s common stock, which represented approximately 85% of FONU2’s issued and outstanding common stock upon issuance, with such shares to be issued pro rata to the Company’s common stockholders.
	On October 22, 2012 the Company
	entered into a Redemption Agreement with HMBL Trust, William Lavenia, and SLP-DZ-NTZ, LLC (collectively, the “Stockholders”), by which the Company agreed to purchase a total of 8,102,736 shares of its common stock from the Stockholders for total aggregate consideration of one dollar.  The Company further agreed to release the Stockholders from any and all liability relating to any claims that it may have as of the date of the Redemption Agreement.  The 8,102,736 repurchased shares of common stock were cancelled immediately upon receipt.
	During the year ended September 30, 2013 the Company issued 10,581,515 shares of common stock for services valued at $474,301.
	On February 27, 2013, Jeff Pollitt, the Company’s CEO, resigned his position with the Company.  Pursuant to this resignation, Mr. Pollitt returned 15,000,000 of his 22,796,962 shares of the Company’s common back to the Company.  The 15,000,000 shares were cancelled by the Company immediately upon receipt.
	During the year ended September 30, 2013 the Company issued 10,003,111 for the conversion of notes payable and other debts in the amount of $214,259.
	During the year ended September 30, 2013 the Company issued 6,250,000 shares of common stock for cash proceeds of $250,000. 6,250,000 warrants were issued with the common shares, which can be exercised at a price of $0.04 per share. These warrants qualify for derivative accounting, see note 7.
	During the year ended September 30, 2013 the Company issued 1,500,000 shares of common stock for prepaid services valued at fair market value of $255,000. The consulting services will be provided for one year commencing 8/1/2013.

9_WARRANTS

9. WARRANTS	12 Months Ended
	Sep. 30, 2013
Equity [Abstract]	'
Warrants	'
	A summary of the status of the Company’s options and warrants as of September 30, 2013 and 2012 and changes during the periods ended September 30, 2013 and 2012 is presented below:
	Description	Warrant Shares		Exercise Price		Value if Exercised
	Outstanding at 9/30/11		-		-		-
	Granted		-		-		-
	Exercised		-		-		-
	Cancelled		-		-		-
	Expired		-		-		-
	Outstanding at 9/30/12		-		-		-
	Granted		6,250,000	$	0.04	$	1,062,500
	Exercised		-		-		-
	Cancelled		-		-		-
	Expired		-		-		-
	Outstanding at 9/30/13		6,250,000	$	0.04	$	1,062,500
	The warrants granted during the year ended September 30, 2013 were granted in connection with the a private placement offering whereby the Company is authorized to issue up to 6,500,000 units, with each unit consisting of one share of the Company’s common stock and one warrant to purchase one share of the Company’s common stock at an exercise price of $0.04 per share.  The units were sold for $0.04 per unit, resulting in total cash proceeds of $250,000.  The warrants were valued using the Black-Scholes Options Pricing Model using the following assumptions: dividend yield of -0-%, volatility of 86-693%, risk free rate of 0.12-0.18% and an expected term of 0.25 to one year.

10_INCOME_TAXES

10. INCOME TAXES	12 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Income taxes	'
	The Company provides for income taxes under ASC 740, Accounting for Income Taxes. ASC 740 requires the use of an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse. The Company’s predecessor operated as entity exempt from Federal and State income taxes.
	ASC 740 requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.
	Net deferred tax assets consist of the following components as of:
		30-Sep-13			30-Sep-12
	NOL carryover	$	(416,000	)	$	(140,000	)
	Valuation allowance		416,000			140,000
	Net deferred tax asset	$	-		$	-
	Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $1,496,155 for federal income tax reporting purposes are subject to annual limitations and will begin to expire in 2032. When a change in ownership occurs, net operating loss carry forwards may be limited as to use in future years.

11_SUBSEQUENT_EVENTS

11. SUBSEQUENT EVENTS	12 Months Ended
	Sep. 30, 2013
Disclosure Text Block [Abstract]	'
Subsequent Events	'
	On October 22, 2013 the Company issued 442,260 shares of common stock for conversion of $18,000 of debt.
	On October 14, 2013 the Company issued 2,400,000 shares upon conversion of $188,300 of convertible notes payable. The conversion also included accrued interest totaling $6,841.  Pursuant to this conversion the Company recognized a loss on conversion debt in the amount of $80,859.

1_SUMMARY_OF_SIGNIFICANT_ACCOU1

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Reverse-Merger Transaction	'
	Reverse-Merger Transaction
	On December 2, 2011, the stockholders of Zaldiva, Inc., a Florida corporation (“Zaldiva”) approved Zaldiva’s change of domicile from the state of Florida to the state of Nevada.  The change of domicile was effectuated by merging Zaldiva into its newly-formed wholly-owned subsidiary, FONU2 Inc., a Nevada corporation formerly known as Zaldiva, Inc. (“FONU2”), with every share of Zaldiva’s common and preferred stock automatically being converted into one-half of one corresponding share of FONU2, and with all fractional shares that would otherwise result from such conversion being rounded up to the nearest whole share.  Zaldiva and FONU2 filed Articles of Merger in the States of Florida and Nevada on December 2, 2011.  The change of domicile and de facto reverse-split were effectuated on January 9, 2012.
	On March 6, 2012, the Company executed an Agreement and Plan of Reorganization (the “Agreement”) with FONU2, and Jeffrey M. Pollitt, who is the Company’s Chief Executive Officer and the holder of approximately 37% of the Company’s outstanding shares of common stock.  Under the Agreement, FONU2 acquired all of the material assets of the Company in exchange for 53,411,262 “unregistered” and “restricted” shares of FONU2’s common stock, which represented approximately 85% of FONU2’s issued and outstanding common stock upon issuance, with such shares to be issued pro rata to the Company’s common stockholders.
	The Agreement was accounted for as a reverse-merger recapitalization transaction, with FONU2 as the accounting acquirer, and Zaldiva as the legal acquirer.  The historical financial statements presented herein for the period prior to the merger date are those of FONU2.
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Basic (Loss) per Common Share	'
	Basic (Loss) per Common Share
	The Company computes net income (loss) per share in accordance with ASC 260 which requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.  For the years ended September 30, 2013 and 2012, the Company’s 6,250,000 and -0- warrants are excluded from the computation of diluted earnings per share as they are anti-dilutive. In addition, the 1,045,661 and 750,000 shares issuable upon conversion of convertible debt at September 30, 2013 and 2012, respectively, are also excluded from the computation of diluted earnings per share as they are anti-dilutive.
Cash and Cash Equivalents	'
	Cash and Cash Equivalents
	For purposes of the Statement of Cash Flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.
Property and Equipment	'
	Property and Equipment
	Property and equipment is recorded at cost.  Major additions and improvements are capitalized and depreciated over their estimated useful lives.  Depreciation of property and equipment is determined using the straight-line method over their useful lives, which ranges from three to five years.  Gains or losses on the sale or disposal of property and equipment are included in the statements of operations. Maintenance and repairs that do not extend the useful life of the assets are expensed as incurred.
Inventory	'
	Inventory
	The Company’s inventory consists of various comic books, toys, and other collectible items.  These items are purchased from external suppliers.  The inventory items are recorded and valued at cost. Management performs periodic reviews of its slow-moving inventory for possible impairment.  When slow-moving inventory is identified, its cost is also adjusted so as to represent the lower of cost or market at all times.
Revenue Recognition	'
	Revenue Recognition
	The Company's revenues are generated from the sales of various comic books, toys, and other collectible items.  Sales are transacted primarily through the Company’s website, via credit card order; or through eBay, via Paypal or e-check transaction.  The Company follows guidance found in ASC 605, which provides guidance on the recognition, presentation and disclosure of revenue in financial statements.
	ASC 605 outlines the basic criteria that must be met to recognize revenue and provides guidance for disclosure related to revenue recognition policies. In general, the Company recognizes revenue related to merchandise sales when the following conditions are met:
	a)    Persuasive evidence of an arrangement exists,
	b)    Delivery has occurred or services have been rendered,
	c)    The fee is fixed or determinable,
	d)    Collectability is reasonably assured.
Cost of Sales	'
	Cost of Sales
	When an inventory item is sold, the Company recognizes cost of sales expense for the value of the inventory item sold.  This value includes the purchase price of the inventory item, plus any expenditures on improvements to the inventory items.  Shipping costs are not included in cost of sales calculations.
Accounting Basis	'
	Accounting Basis
	The basis is accounting principles generally accepted in the United States of America. The Company has adopted a September 30 fiscal year end.
Stock-Based Compensation.	'
	Stock-Based Compensation.
	The Company accounts for share-based compensation in accordance with Accounting Standards Codification subtopic 718-10, Stock Compensation (“ASC 718-10”). This requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors, including employee stock options and employee stock purchases related to an Employee Stock Purchase Plan based on the estimated fair values.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	The Company has evaluated recent accounting pronouncements and their adoption has not had nor is not expected to have a material impact on the Company’s financial position or statements.

6_FAIR_VALUE_MEASUREMENTS_Tabl

6. FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Sep. 30, 2013
Fair Value Measurements Tables	'
Recurring Fair Value Measures	'
	Recurring Fair Value Measures	Level 1	Level 2	Level 3	Total
	LIABILITIES:
	Derivative liability	-	--	969,675	969,675

7_DERIVATIVE_INSTRUMENTS_Table

7. DERIVATIVE INSTRUMENTS (Tables)	12 Months Ended
	Sep. 30, 2013
Derivative Instruments Tables	'
Schedule derivative liabilities	'
	Ending balance as of September 30, 2012	$	-
	Additions due to new convertible debt and warrants issued		900,933
	Reclassification of derivative liabilities to additional paid-in capital due to conversion of debt		(221,200	)
	Change in fair value		(289,942	)
	Ending balance as of September 30, 2013	$	969,675

9_WARRANTS_Tables

9. WARRANTS (Tables)	12 Months Ended
	Sep. 30, 2013
Equity [Abstract]	'
Schedule of warrant and option activity	'
	Description	Warrant Shares		Exercise Price		Value if Exercised
	Outstanding at 9/30/11		-		-		-
	Granted		-		-		-
	Exercised		-		-		-
	Cancelled		-		-		-
	Expired		-		-		-
	Outstanding at 9/30/12		-		-		-
	Granted		6,250,000	$	0.04	$	1,062,500
	Exercised		-		-		-
	Cancelled		-		-		-
	Expired		-		-		-
	Outstanding at 9/30/13		6,250,000	$	0.04	$	1,062,500

10_INCOME_TAXES_Tables

10. INCOME TAXES (Tables)	12 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Net deferred tax assets	'
		30-Sep-13			30-Sep-12
	NOL carryover	$	(416,000	)	$	(140,000	)
	Valuation allowance		416,000			140,000
	Net deferred tax asset	$	-		$	-

1_SUMMARY_OF_SIGNIFICANT_ACCOU2

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Summary Of Significant Accounting Policies Details Narrative	'	'
Anti-dilutive securities excluded from earnings	1,045,661	750,000

2_GOING_CONCERN_Details_Narrat

2. GOING CONCERN (Details Narrative) (USD $)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Going Concern Details Narrative	'	'
Deficit accumulated during the development stage	($39,045,527)	($37,342,587)
Negative working capital	1,153,681	'
Net Cash Used in Operating Activities	($489,141)	($226,718)

5_RELATED_PARTY_NOTES_PAYABLE_

5. RELATED PARTY NOTES PAYABLE (Details Narrative) (USD $)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Amount borrow from related parties	$201,300	$0
Amount repaid	13,000	0
Related party payable	188,300	0
Former CEO	'	'
Amount borrow from related parties	188,300	'
CMO, Niccole Leigh	'	'
Amount borrow from related parties	13,000	'
Amount repaid	$13,000	'

6_FAIR_VALUE_MEASUREMENTS_Recu

6. FAIR VALUE MEASUREMENTS - Recurring Fair Value Measures (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012
LIABILITIES:	'	'
Derivative liability	$969,675	$0
Level 1	'	'
LIABILITIES:	'	'
Derivative liability	0	'
Level 2	'	'
LIABILITIES:	'	'
Derivative liability	0	'
Level 3	'	'
LIABILITIES:	'	'
Derivative liability	$969,675	'

7_DERIVATIVE_INSTRUMENTS_Sched

7. DERIVATIVE INSTRUMENTS - Schedule derivative liabilities (Details) (USD $)	12 Months Ended
	Sep. 30, 2013
Derivative Instruments Tables	'
Ending balance as of September 30, 2012	$0
Additions due to new convertible debt and warrants issued	900,933
Reclassification of derivative liabilities to additional paid-in capital due to conversion of debt	-221,200
Change in fair value	-289,942
Ending balance as of September 30, 2013	$969,675

9_WARRANTS_Details

9. WARRANTS (Details) (Warrant Shares, USD $)	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Warrant Shares	'	'
Warrant Shares Outstanding at beginning of period	0	0
Granted	6,250,000	0
Exercised	0	0
Cancelled	0	0
Expired	0	0
Outstanding at end of period	6,250,000	0
Exercise Price Outstanding at beginning of period	$0	$0
Granted	$0.04	$0
Exercised	$0	$0
Cancelled	$0	$0
Expired	$0	$0
Exercise Price Outstanding at end of period	$0.04	$0
Value if Exercised Outstanding at beginning of period	$0	$0
Granted	$1,062,500	$0
Exercised	0	0
Cancelled	$0	$0
Expired	$0	$0
Value if Exercised Outstanding at end of period	$1,062,500	$0

10_INCOME_TAXES_Details

10. INCOME TAXES (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Income Tax Disclosure [Abstract]	'	'
NOL carryover	($416,000)	($140,000)
Valuation allowance	416,000	140,000
Net deferred tax asset	$0	$0