Cover
Cover - shares | 6 Months Ended | |
Mar. 31, 2023 | May 10, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --09-30 | |
Entity File Number | 000-51638 | |
Entity Registrant Name | GULFSLOPE ENERGY, INC. | |
Entity Central Index Key | 0001341726 | |
Entity Tax Identification Number | 16-1689008 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 1000 Main St. | |
Entity Address, Address Line Two | Suite 2300 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | (281) | |
Local Phone Number | 918-4100 | |
Title of 12(b) Security | Common stock, par value $0.001 per share | |
Trading Symbol | GSPE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,286,248,588 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2023 | Sep. 30, 2022 |
Current Assets | ||
Cash | $ 24,764 | $ 135,381 |
Accounts Receivable, Net | 12,925 | |
Prepaid Expenses and Other Current Assets | 61,626 | 33,004 |
Total Current Assets | 86,390 | 181,310 |
Property and Equipment, net | 485 | 848 |
Oil and Natural Gas Properties, Full Cost Method of Accounting, Unproved Properties | 5,306,415 | 5,288,915 |
Total Non-Current Assets | 5,306,900 | 5,289,763 |
Total Assets | 5,393,290 | 5,471,073 |
Current Liabilities | ||
Accounts Payable | 218,933 | 135,391 |
Related Party Payable | 404,469 | 404,469 |
Related Party Accrued Interest Payable | 3,622,128 | 3,401,489 |
Loans from Related Parties | 8,725,500 | 8,725,500 |
Related Party Short Term Loan Payable | 193,000 | |
Accrued Interest Payable | 152,281 | 138,020 |
Convertible Notes Payable, net of Debt Discount | 273,248 | 227,000 |
Derivative Financial Instruments | 1,084,182 | 959,222 |
Total Current Liabilities | 14,673,741 | 13,991,091 |
Total Liabilities | 14,673,741 | 13,991,091 |
Stockholders’ (Deficit) Equity | ||
Preferred Stock; par value ($0.001); Authorized 50,000,000 shares none issued or outstanding | ||
Common Stock; par value ($0.001); Authorized 1,500,000,000 shares; issued and outstanding 1,268,240,346 and 1,268,240,346 as of March 31, 2023 and September 30, 2022, respectively | 1,268,240 | 1,268,240 |
Additional Paid-in-Capital | 59,116,487 | 59,116,487 |
Accumulated Deficit | (69,665,178) | (68,904,745) |
Total Stockholders’ (Deficit) Equity | (9,280,451) | (8,520,018) |
Total Liabilities and Stockholders’ (Deficit) Equity | $ 5,393,290 | $ 5,471,073 |
Condensed Balance Sheets (Una_2
Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2023 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 50,000,000 | 50,000,000 |
Preferred stock, outstanding | 0 | 0 |
Preferred stock, issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, outstanding | 1,268,240,346 | 1,268,240,346 |
Common stock, issued | 1,268,240,346 | 1,268,240,346 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||||
Revenues | ||||
Impairment of Oil and Natural Gas Properties | 0 | 3,093,693 | 0 | 3,093,693 |
General and Administrative Expenses | 191,120 | 358,445 | 445,825 | 805,406 |
Net Loss from Operations | (191,120) | (3,452,138) | (445,825) | (3,899,099) |
Other Income/(Expenses): | ||||
Interest Expense | (139,287) | (135,353) | (270,327) | (273,590) |
Loss on Derivative Financial Instrument | (65,659) | (264,545) | (44,281) | (184,231) |
Net Loss Before Income Taxes | (396,066) | (3,852,036) | (760,433) | (4,356,920) |
Provision for Income Taxes | ||||
Net Loss | $ (396,066) | $ (3,852,036) | $ (760,433) | $ (4,356,920) |
Loss Per Share - Diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Loss Per Share - Basic | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted Average Shares Outstanding - Basic | 1,268,240,346 | 1,268,240,346 | 1,268,240,346 | 1,268,240,346 |
Weighted Average Shares Outstanding - Diluted | 1,268,240,346 | 1,268,240,346 | 1,268,240,346 | 1,268,240,346 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' (Deficit) Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Sep. 30, 2021 | $ 1,268,240 | $ 58,999,585 | $ (60,207,991) | $ 59,834 |
Balance at beginning (in shares) at Sep. 30, 2021 | 1,268,240,346 | |||
Stock based compensation | 31,775 | 31,775 | ||
Net Loss | (4,356,920) | (4,356,920) | ||
Ending balance, value at Mar. 31, 2022 | $ 1,268,240 | 59,031,360 | (64,564,911) | (4,265,311) |
Balance at Ending (in shares) at Mar. 31, 2022 | 1,268,240,346 | |||
Beginning balance, value at Dec. 31, 2021 | $ 1,268,240 | 59,031,360 | (60,712,875) | (413,275) |
Balance at beginning (in shares) at Dec. 31, 2021 | 1,268,240,346 | |||
Net Loss | (3,852,036) | (3,852,036) | ||
Ending balance, value at Mar. 31, 2022 | $ 1,268,240 | 59,031,360 | (64,564,911) | (4,265,311) |
Balance at Ending (in shares) at Mar. 31, 2022 | 1,268,240,346 | |||
Beginning balance, value at Sep. 30, 2022 | $ 1,268,240 | 59,116,487 | (68,904,745) | $ (8,520,018) |
Balance at beginning (in shares) at Sep. 30, 2022 | 1,268,240,346 | 1,268,240,346 | ||
Net Loss | (760,433) | $ (760,433) | ||
Ending balance, value at Mar. 31, 2023 | $ 1,268,240 | 59,116,487 | (69,665,178) | $ (9,280,451) |
Balance at Ending (in shares) at Mar. 31, 2023 | 1,268,240,346 | 1,268,240,346 | ||
Beginning balance, value at Dec. 31, 2022 | $ 1,268,240 | 59,116,487 | (69,269,112) | $ (8,884,385) |
Balance at beginning (in shares) at Dec. 31, 2022 | 1,268,240,346 | |||
Net Loss | (396,066) | (396,066) | ||
Ending balance, value at Mar. 31, 2023 | $ 1,268,240 | $ 59,116,487 | $ (69,665,178) | $ (9,280,451) |
Balance at Ending (in shares) at Mar. 31, 2023 | 1,268,240,346 | 1,268,240,346 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
OPERATING ACTIVITIES | ||
Net Loss | $ (760,433) | $ (4,356,920) |
Adjustments to Reconcile Net Loss to Net Cash Used In Operating Activities: | ||
Impairment of Oil and Natural Gas Properties | 3,093,693 | |
Depreciation | 364 | 633 |
Stock Based Compensation | 31,775 | |
Loss on Derivative Financial Instruments | 44,281 | 184,231 |
Debt Discount Amortization | 35,427 | 43,213 |
Changes in Operating Assets and Liabilities: | ||
Accounts Receivable | 12,925 | |
Increase in Prepaid Expenses and Other Current Assets | (28,622) | (154,134) |
Accounts Payable | 83,541 | (23,737) |
Accrued Interest Payable | 234,900 | 230,378 |
Net Cash Used In Operating Activities | (377,617) | (950,868) |
INVESTING ACTIVITIES | ||
Investments in Oil and Gas Properties | (17,500) | (25,461) |
Net Cash Used In Investing Activities | (17,500) | (25,461) |
FINANCING ACTIVITIES | ||
Proceeds From Short Term Note | 193,000 | |
Proceeds From Convertible Promissory Notes | 91,500 | |
Net Cash Provided By Financing Activities | 284,500 | |
Net Decrease in Cash | (110,617) | (976,329) |
Beginning Cash Balance | 135,381 | 1,517,522 |
Ending Cash Balance | 24,764 | 541,193 |
Non-Cash Financing and Investing Activities: | ||
Capital Expenditures in Accounts Payable | 31,960 | |
Debt Discount Related to Issuance of Convertible Promissory Notes | $ 89,179 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 6 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF BUSINESS | NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS GulfSlope Energy, Inc. (the “Company” or “GulfSlope”) is an independent oil and natural gas exploration company whose interests are concentrated in the United States Gulf of Mexico federal waters offshore Louisiana. The Company currently has under lease one |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES The condensed financial statements included herein are unaudited. However, these condensed financial statements include all adjustments (consisting of normal recurring adjustments), which, in the opinion of management are necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods. The results of operations for interim periods are not necessarily indicative of the results to be expected for an entire year. The preparation of financial statements in accordance with generally accepted accounting principles in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed financial statements and accompanying notes. Actual results could differ materially from those estimates. Certain information, accounting policies, and footnote disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been omitted pursuant to certain rules and regulations of the Securities and Exchange Commission (“SEC”). The condensed financial statements should be read in conjunction with the audited financial statements for the year ended September 30, 2022, which were included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2022 and filed with the Securities and Exchange Commission on December 29, 2022. Cash GulfSlope considers highly liquid investments with original maturities to the Company of three months or less to be cash equivalents. There were no cash equivalents at March 31, 2023 and September 30, 2022. Liquidity / Going Concern The Company has incurred accumulated losses as of March 31, 2023 of $ 69.7 14.6 million 0.76 0.025 10 10 13 Accounts Receivable The Company records an accounts receivable for operations expense reimbursements due from joint interest partners and also from normal operations. The Company estimates allowances for doubtful accounts based on the aged receivable balances and historical losses. If the Company determines any account to be uncollectible based on significant delinquency or other factors, the receivable and the underlying asset are assessed for recovery. As of March 31, 2023 and September 30, 2022, there was no allowance for doubtful accounts receivable. Gross accounts receivable was nil 13,000 Full Cost Method The Company uses the full cost method of accounting for its oil and gas exploration and development activities. Under the full cost method of accounting, all costs associated with successful and unsuccessful exploration and development activities are capitalized on a country-by-country basis into a single cost center (“full cost pool”). Such costs include property acquisition costs, geological and geophysical (“G&G”) costs, carrying charges on non-producing properties, costs of drilling both productive and non-productive wells. Overhead costs, which includes employee compensation and benefits including stock-based compensation, incurred that are directly related to acquisition, exploration and development activities are capitalized. Interest expense is capitalized related to unevaluated properties and wells in process during the period in which the Company is incurring costs and expending resources to get the properties ready for their intended purpose. For significant investments in unproved properties and major development projects that are not being currently depreciated, depleted, or amortized and on which exploration or development activities are in progress, interest costs are capitalized. Proceeds from property sales will generally be credited to the full cost pool, with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. A significant alteration would typically involve a sale of 25 Proved properties are amortized on a country-by-country basis using the units of production method (“UOP”), whereby capitalized costs are amortized over total proved reserves. The amortization base in the UOP calculation includes the sum of proved property, net of accumulated depreciation, depletion and amortization (“DD&A”), estimated future development costs (future costs to access and develop proved reserves), and asset retirement costs, less related salvage value. The costs of unproved properties and related capitalized costs (such as G&G costs) are withheld from the amortization calculation until such time as they are either developed or abandoned. Unproved properties and properties under development are reviewed for impairment at least quarterly and are determined through an evaluation that considers, among other factors, seismic data, requirements to relinquish acreage, drilling results, remaining time in the commitment period, remaining capital plan, and political, economic, and market conditions. In countries where proved reserves exist, exploratory drilling costs associated with dry holes are transferred to proved properties immediately upon determination that a well is dry and amortized accordingly. In countries where a reserve base has not yet been established, impairments are charged to earnings. Companies that use the full cost method of accounting for oil and natural gas exploration and development activities are required to perform a ceiling test calculation each quarter. The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X Rule 4-10. The ceiling test is performed quarterly, on a country-by-country basis, utilizing the average of prices in effect on the first day of the month for the preceding twelve-month period. The cost center ceiling is defined as the sum of (a) estimated future net revenues, discounted at 10 The Company capitalizes exploratory well costs into oil and gas properties until a determination is made that the well has either found proved reserves or is impaired. If proved reserves are found, the capitalized exploratory well costs are reclassified to proved properties. The well costs are charged to expense if the exploratory well is determined to be impaired. As of March 31, 2023, the Company’s oil and gas properties consisted of unproved properties, capitalized costs and no proved reserves. Asset Retirement Obligations The Company’s asset retirement obligations will represent the present value of the estimated future costs associated with plugging and abandoning oil and natural gas wells, removing production equipment and facilities and restoring the seabed in accordance with the terms of oil and gas leases and applicable state and federal laws. Determining asset retirement obligations requires estimates of the costs of plugging and abandoning oil and natural gas wells, removing production equipment and facilities and restoring the sea bed as well as estimates of the economic lives of the oil and gas wells and future inflation rates. The resulting estimate of future cash outflows will be discounted using a credit-adjusted risk-free interest rate that corresponds with the timing of the cash outflows. Cost estimates will consider historical experience, third party estimates, the requirements of oil and natural gas leases and applicable local, state and federal laws, but do not consider estimated salvage values. Asset retirement obligations will be recognized when the wells drilled reach total depth or when the production equipment and facilities are installed or acquired with an associated increase in proved oil and gas property costs. Asset retirement obligations will be accreted each period through depreciation, depletion and amortization to their expected settlement values with any difference between the actual cost of settling the asset retirement obligations and recorded amount being recognized as an adjustment to proved oil and gas property costs. Cash paid to settle asset retirement obligations will be included in net cash provided by operating activities from continuing operations in the statements of cash flows. On a quarterly basis, when indicators suggest there have been material changes in the estimates underlying the obligation, the Company reassesses its asset retirement obligations to determine whether any revisions to the obligations are necessary. At least annually, the Company will assess all of its asset retirement obligations to determine whether any revisions to the obligations are necessary. Future revisions could occur due to changes in estimated costs or well economic lives, or if federal or state regulators enact new requirements regarding plugging and abandoning oil and natural gas wells. Derivative Financial Instruments The accounting treatment of derivative financial instruments requires that the Company record certain embedded conversion options and warrants as liabilities at their fair value as of the inception date of the agreement and at fair value as of each subsequent balance sheet date with any change in fair value recorded as income or expense. As a result of entering into certain note agreements, for which such instruments contained a variable conversion feature with no floor, the Company has adopted a sequencing policy in accordance with ASC 815-40-35-12 whereby all future instruments issued after such variable conversion feature instruments may be classified as a derivative liability with the exception of instruments related to share-based compensation issued to employees or directors, as long as the certain variable convertible instruments exist. Basic and Dilutive Earnings Per Share Basic income (loss) per share (“EPS”) is computed by dividing net income (loss) (the numerator) by the weighted average number of common shares outstanding for the period (denominator). Diluted EPS is computed by dividing net income (loss) by the weighted average number of common shares and potential common shares outstanding (if dilutive) during each period. Potential common shares include stock options, warrants, and convertible notes payable. The number of potential common shares outstanding relating to stock options and warrants, is computed using the treasury stock method. The number of potential common shares related to convertible notes payable is determined using the if-converted method. As the Company has incurred losses for the three and six months ended March 31, 2023, and 2022, the potentially dilutive shares are anti-dilutive and are not added into the loss per share calculations. As of March 31, 2023, and 2022, there were 343,090,759 288,070,151 Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Recent Accounting Pronouncements Not Yet Adopted In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share (EPS), which is consistent with the Company’s accounting treatment under the current standard. This standard is effective for small reporting companies who adopt the private Company rules for fiscal years beginning after December 15, 2023. The adoption of ASU 2020-06 is not expected to have a material impact on the Company’s financial statements or disclosures. The Company has evaluated all other recent accounting pronouncements and believes either they are not applicable or that none of them will have a significant effect on the Company’s financial statements. |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES | 6 Months Ended |
Mar. 31, 2023 | |
Extractive Industries [Abstract] | |
OIL AND NATURAL GAS PROPERTIES | NOTE 3 – OIL AND NATURAL GAS PROPERTIES The Company currently has under lease one 2.2 As of March 31, 2023, the Company’s oil and natural gas properties consisted of unproved properties, capitalized exploration costs and no proved reserves. During the six months ended March 31, 2023, and 2022, the Company capitalized nil 0.06 nil |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 4 – RELATED PARTY TRANSACTIONS During April 2013 through September 2017, the Company entered into convertible promissory notes whereby it borrowed a total of $ 8,675,500 5 5,300,000 0.12 8,675,500 3.6 3.2 During the quarter ended March 31, 2023 the Company entered into a short term note payable in the amount of $ 193,000 5 On November 15, 2016, a family member of the CEO entered into a $ 50,000 Domenica Seitz, CPA, related to John Seitz, has provided accounting services to the Company through September 2020 as a consultant and beginning October 2020 as an employee. The total amount payable to Domenica Seitz is approximately $ 346,000 7,410 19,000 |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 6 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES PAYABLE | NOTE 5 – CONVERTIBLE NOTES PAYABLE The Company’s convertible promissory notes consisted of the following as of September 30, 2022 and March 31, 2023. 35,000 September 30, 2022 March 31, 2023 Notes Discount Notes, Net of Discount Notes Discount Notes, Net of Discount Bridge Financing Notes $ 227,000 $ — $ 227,000 $ 227,000 $ — $ 227,000 2022 Convertible Debenture — — — 100,000 (53,752) 46,248 Total $ 227,000 $ — $ 227,000 $ 327,000 $ (53,752) $ 273,248 Bridge Financing Notes Between June and November 2016, the Company issued eleven 837,000 222,000 one year April 30, 2024 8 0.025 3 277,000 April 30, 2024 April 30, 2024 85,000 10 2022 Convertible Debenture In October 2022, the Company entered into a Securities Purchase Agreement (“SPA”) under the terms of which the Company will issue and sell to Buyers up to an aggregate of $ 650,000 55,000 45,000 3,000 54,000 The Convertible Debentures accrue interest at eight 65 The Company evaluated the conversion feature and concluded that it should be bifurcated and accounted for as a derivative liability due to the variable conversion feature which does not contain an explicit limit on the number of shares that are required to be issued. Accordingly, the embedded conversion feature was recorded at fair value at issuance and will be subsequently remeasured to fair value at each reporting period. The fair value of the embedded conversion feature was determined utilizing a Geometric Brownian Motion Stock Path Based Monte Carlo Simulation that utilized the following key assumptions: Tranche 1 Tranche 2 Tranche 1 Tranche 2 Tranche 1 Tranche 2 Stock Price $ 0.0052 $ 0.0041 $ 0.0045 $ 0.0045 $ 0.0055 $ 0.0055 Volatility 158.12 % 156.37 % 168.03 % 159.49 % 186.22 % 180.35 % Remaining Term 0.98 0.98 0.77 0.91 0.52 0.67 Risk Free Rate 4.46 % 4.77 % 4.73 % 4.73 % 4.64 % 4.64 % In addition to the fixed exercise price noted above, the model incorporates the variable conversion price which is simulated as 65 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 6 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | NOTE 6 – FAIR VALUE MEASUREMENT Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified and disclosed in one of the following categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that the Company values using observable market data. Substantially all of these inputs are observable in the marketplace throughout the term of the derivative 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 include non-exchange traded derivative financial instruments as well as warrants to purchase common stock and long-term incentive plan liabilities calculated using the Black-Scholes model to estimate the fair value as of the measurement date. Level 3: Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e. supported by little or no market activity). As required by ASC 820-10, financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. Fair Value on a Recurring Basis The following table sets forth by level within the fair value hierarchy the Company’s derivative financial instruments that were accounted for at fair value on a recurring basis as of September 30, 2022 and March 31, 2023, respectively: Description Quoted Prices in Active Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Fair Value as of Derivative Financial Instrument at September 30, 2022 $ — $ (959,222) $ — $ (959,222) Derivative Financial Instrument at March 31, 2023 $ — $ (1,084,182) $ — $ (1,084,182) The change in derivative financial instruments for the six months ended March 31, 2023 is as follows: September 30, 2022 balance $ (959,222 ) New derivative instruments issued (80,679 Derivative instruments extinguished — Change in fair value (44,281 ) March 31, 2023 balance $ (1,084,182 ) Non-recurring fair value assessments include impaired oil and natural gas property assessments and stock-based compensation. There was no 3.1 nil 32,000 |
COMMON STOCK_PAID IN CAPITAL
COMMON STOCK/PAID IN CAPITAL | 6 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
COMMON STOCK/PAID IN CAPITAL | NOTE 7 – COMMON STOCK/PAID IN CAPITAL The following table summarizes the Company’s outstanding warrants at September 30, 2022 and March 31, 2023, respectively: Warrants Number of Options Weighted Average Weighted Average Outstanding at September 30, 2022 64,665,000 $ 0.040 2.8 Granted — — — Exercised — — — Expired 2,200,000 $ 0.100 — Outstanding at March 31, 2023 62,465,000 $ 0.023 1.2 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 8 – STOCK-BASED COMPENSATION Stock-based compensation cost is measured at the grant date, based on the estimated fair value of the award using the Black Scholes option pricing model, and is recognized over the vesting period. The Company recognized stock-based compensation of nil 32,000 32,000 The following table summarizes the Company’s stock option activity at September 30, 2022 and for the six months ended March 31, 2023: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In years) Outstanding at September 30, 2022 146,000,000 $ 0.044 2.8 Granted — — — Exercised — — — Cancelled — — — Outstanding at March 31, 2023 146,000,000 $ 0.044 2.3 Exercisable at March 31, 2023 146,000,000 $ 0.044 2.3 As of March 31, 2023, there was no unrecognized stock-based compensation expense. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 9 – COMMITMENTS AND CONTINGENCIES From time to time, the Company may become involved in litigation relating to claims arising out of its operations in the normal course of business. No legal proceedings, government actions, administrative actions, investigations, or claims are currently pending against us or involve the Company. The Company reached an agreement in August 2018 for the settlement of approximately $ 1 158,000 10 1.3 0.8 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 10 – SUBSEQUENT EVENTS Through the date of this filing an additional amount of $ 52,000 has been borrowed from a related party. A convertible debenture holder converted $ 42,000 18 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Cash | Cash GulfSlope considers highly liquid investments with original maturities to the Company of three months or less to be cash equivalents. There were no cash equivalents at March 31, 2023 and September 30, 2022. |
Liquidity / Going Concern | Liquidity / Going Concern The Company has incurred accumulated losses as of March 31, 2023 of $ 69.7 14.6 million 0.76 0.025 10 10 13 |
Accounts Receivable | Accounts Receivable The Company records an accounts receivable for operations expense reimbursements due from joint interest partners and also from normal operations. The Company estimates allowances for doubtful accounts based on the aged receivable balances and historical losses. If the Company determines any account to be uncollectible based on significant delinquency or other factors, the receivable and the underlying asset are assessed for recovery. As of March 31, 2023 and September 30, 2022, there was no allowance for doubtful accounts receivable. Gross accounts receivable was nil 13,000 |
Full Cost Method | Full Cost Method The Company uses the full cost method of accounting for its oil and gas exploration and development activities. Under the full cost method of accounting, all costs associated with successful and unsuccessful exploration and development activities are capitalized on a country-by-country basis into a single cost center (“full cost pool”). Such costs include property acquisition costs, geological and geophysical (“G&G”) costs, carrying charges on non-producing properties, costs of drilling both productive and non-productive wells. Overhead costs, which includes employee compensation and benefits including stock-based compensation, incurred that are directly related to acquisition, exploration and development activities are capitalized. Interest expense is capitalized related to unevaluated properties and wells in process during the period in which the Company is incurring costs and expending resources to get the properties ready for their intended purpose. For significant investments in unproved properties and major development projects that are not being currently depreciated, depleted, or amortized and on which exploration or development activities are in progress, interest costs are capitalized. Proceeds from property sales will generally be credited to the full cost pool, with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. A significant alteration would typically involve a sale of 25 Proved properties are amortized on a country-by-country basis using the units of production method (“UOP”), whereby capitalized costs are amortized over total proved reserves. The amortization base in the UOP calculation includes the sum of proved property, net of accumulated depreciation, depletion and amortization (“DD&A”), estimated future development costs (future costs to access and develop proved reserves), and asset retirement costs, less related salvage value. The costs of unproved properties and related capitalized costs (such as G&G costs) are withheld from the amortization calculation until such time as they are either developed or abandoned. Unproved properties and properties under development are reviewed for impairment at least quarterly and are determined through an evaluation that considers, among other factors, seismic data, requirements to relinquish acreage, drilling results, remaining time in the commitment period, remaining capital plan, and political, economic, and market conditions. In countries where proved reserves exist, exploratory drilling costs associated with dry holes are transferred to proved properties immediately upon determination that a well is dry and amortized accordingly. In countries where a reserve base has not yet been established, impairments are charged to earnings. Companies that use the full cost method of accounting for oil and natural gas exploration and development activities are required to perform a ceiling test calculation each quarter. The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X Rule 4-10. The ceiling test is performed quarterly, on a country-by-country basis, utilizing the average of prices in effect on the first day of the month for the preceding twelve-month period. The cost center ceiling is defined as the sum of (a) estimated future net revenues, discounted at 10 The Company capitalizes exploratory well costs into oil and gas properties until a determination is made that the well has either found proved reserves or is impaired. If proved reserves are found, the capitalized exploratory well costs are reclassified to proved properties. The well costs are charged to expense if the exploratory well is determined to be impaired. As of March 31, 2023, the Company’s oil and gas properties consisted of unproved properties, capitalized costs and no proved reserves. |
Asset Retirement Obligations | Asset Retirement Obligations The Company’s asset retirement obligations will represent the present value of the estimated future costs associated with plugging and abandoning oil and natural gas wells, removing production equipment and facilities and restoring the seabed in accordance with the terms of oil and gas leases and applicable state and federal laws. Determining asset retirement obligations requires estimates of the costs of plugging and abandoning oil and natural gas wells, removing production equipment and facilities and restoring the sea bed as well as estimates of the economic lives of the oil and gas wells and future inflation rates. The resulting estimate of future cash outflows will be discounted using a credit-adjusted risk-free interest rate that corresponds with the timing of the cash outflows. Cost estimates will consider historical experience, third party estimates, the requirements of oil and natural gas leases and applicable local, state and federal laws, but do not consider estimated salvage values. Asset retirement obligations will be recognized when the wells drilled reach total depth or when the production equipment and facilities are installed or acquired with an associated increase in proved oil and gas property costs. Asset retirement obligations will be accreted each period through depreciation, depletion and amortization to their expected settlement values with any difference between the actual cost of settling the asset retirement obligations and recorded amount being recognized as an adjustment to proved oil and gas property costs. Cash paid to settle asset retirement obligations will be included in net cash provided by operating activities from continuing operations in the statements of cash flows. On a quarterly basis, when indicators suggest there have been material changes in the estimates underlying the obligation, the Company reassesses its asset retirement obligations to determine whether any revisions to the obligations are necessary. At least annually, the Company will assess all of its asset retirement obligations to determine whether any revisions to the obligations are necessary. Future revisions could occur due to changes in estimated costs or well economic lives, or if federal or state regulators enact new requirements regarding plugging and abandoning oil and natural gas wells. |
Derivative Financial Instruments | Derivative Financial Instruments The accounting treatment of derivative financial instruments requires that the Company record certain embedded conversion options and warrants as liabilities at their fair value as of the inception date of the agreement and at fair value as of each subsequent balance sheet date with any change in fair value recorded as income or expense. As a result of entering into certain note agreements, for which such instruments contained a variable conversion feature with no floor, the Company has adopted a sequencing policy in accordance with ASC 815-40-35-12 whereby all future instruments issued after such variable conversion feature instruments may be classified as a derivative liability with the exception of instruments related to share-based compensation issued to employees or directors, as long as the certain variable convertible instruments exist. |
Basic and Dilutive Earnings Per Share | Basic and Dilutive Earnings Per Share Basic income (loss) per share (“EPS”) is computed by dividing net income (loss) (the numerator) by the weighted average number of common shares outstanding for the period (denominator). Diluted EPS is computed by dividing net income (loss) by the weighted average number of common shares and potential common shares outstanding (if dilutive) during each period. Potential common shares include stock options, warrants, and convertible notes payable. The number of potential common shares outstanding relating to stock options and warrants, is computed using the treasury stock method. The number of potential common shares related to convertible notes payable is determined using the if-converted method. As the Company has incurred losses for the three and six months ended March 31, 2023, and 2022, the potentially dilutive shares are anti-dilutive and are not added into the loss per share calculations. As of March 31, 2023, and 2022, there were 343,090,759 288,070,151 |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share (EPS), which is consistent with the Company’s accounting treatment under the current standard. This standard is effective for small reporting companies who adopt the private Company rules for fiscal years beginning after December 15, 2023. The adoption of ASU 2020-06 is not expected to have a material impact on the Company’s financial statements or disclosures. The Company has evaluated all other recent accounting pronouncements and believes either they are not applicable or that none of them will have a significant effect on the Company’s financial statements. |
CONVERTIBLE NOTES PAYABLE (Tabl
CONVERTIBLE NOTES PAYABLE (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
The Company’s convertible promissory notes consisted of the following as of September 30, 2022 and March 31, 2023. | The Company’s convertible promissory notes consisted of the following as of September 30, 2022 and March 31, 2023. 35,000 September 30, 2022 March 31, 2023 Notes Discount Notes, Net of Discount Notes Discount Notes, Net of Discount Bridge Financing Notes $ 227,000 $ — $ 227,000 $ 227,000 $ — $ 227,000 2022 Convertible Debenture — — — 100,000 (53,752) 46,248 Total $ 227,000 $ — $ 227,000 $ 327,000 $ (53,752) $ 273,248 |
The fair value of the embedded conversion feature was determined utilizing a Geometric Brownian Motion Stock Path Based Monte Carlo Simulation that utilized the following key assumptions: | The fair value of the embedded conversion feature was determined utilizing a Geometric Brownian Motion Stock Path Based Monte Carlo Simulation that utilized the following key assumptions: Tranche 1 Tranche 2 Tranche 1 Tranche 2 Tranche 1 Tranche 2 Stock Price $ 0.0052 $ 0.0041 $ 0.0045 $ 0.0045 $ 0.0055 $ 0.0055 Volatility 158.12 % 156.37 % 168.03 % 159.49 % 186.22 % 180.35 % Remaining Term 0.98 0.98 0.77 0.91 0.52 0.67 Risk Free Rate 4.46 % 4.77 % 4.73 % 4.73 % 4.64 % 4.64 % |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
The following table sets forth by level within the fair value hierarchy the Company’s derivative financial instruments that were accounted for at fair value on a recurring basis as of September 30, 2022 and March 31, 2023, respectively: | The following table sets forth by level within the fair value hierarchy the Company’s derivative financial instruments that were accounted for at fair value on a recurring basis as of September 30, 2022 and March 31, 2023, respectively: Description Quoted Prices in Active Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Fair Value as of Derivative Financial Instrument at September 30, 2022 $ — $ (959,222) $ — $ (959,222) Derivative Financial Instrument at March 31, 2023 $ — $ (1,084,182) $ — $ (1,084,182) |
The change in derivative financial instruments for the six months ended March 31, 2023 is as follows: | The change in derivative financial instruments for the six months ended March 31, 2023 is as follows: September 30, 2022 balance $ (959,222 ) New derivative instruments issued (80,679 Derivative instruments extinguished — Change in fair value (44,281 ) March 31, 2023 balance $ (1,084,182 ) |
COMMON STOCK_PAID IN CAPITAL (T
COMMON STOCK/PAID IN CAPITAL (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
The following table summarizes the Company’s outstanding warrants at September 30, 2022 and March 31, 2023, respectively: | The following table summarizes the Company’s outstanding warrants at September 30, 2022 and March 31, 2023, respectively: Warrants Number of Options Weighted Average Weighted Average Outstanding at September 30, 2022 64,665,000 $ 0.040 2.8 Granted — — — Exercised — — — Expired 2,200,000 $ 0.100 — Outstanding at March 31, 2023 62,465,000 $ 0.023 1.2 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
The following table summarizes the Company’s stock option activity at September 30, 2022 and for the six months ended March 31, 2023: | The following table summarizes the Company’s stock option activity at September 30, 2022 and for the six months ended March 31, 2023: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In years) Outstanding at September 30, 2022 146,000,000 $ 0.044 2.8 Granted — — — Exercised — — — Cancelled — — — Outstanding at March 31, 2023 146,000,000 $ 0.044 2.3 Exercisable at March 31, 2023 146,000,000 $ 0.044 2.3 |
ORGANIZATION AND NATURE OF BU_2
ORGANIZATION AND NATURE OF BUSINESS (Details Narrative) | Mar. 31, 2023 Number |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of leased federal outer continental shelf blocks | 1 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Sep. 30, 2022 | |
Accounting Policies [Abstract] | |||||
Accumulated losses | $ 69,665,178 | $ 69,665,178 | $ 68,904,745 | ||
Amount of negative working capital | 14,600,000 | 14,600,000 | |||
Generated losses | (396,066) | $ (3,852,036) | (760,433) | $ (4,356,920) | |
Unrestricted cash | 24,764 | 24,764 | 135,381 | ||
Minimum capital which company estimated to raise to meet its obligations and planned expenditures | 10,000,000 | ||||
Outstanding debt obligations | 13,000,000 | 13,000,000 | |||
Gross accounts receivable | $ 0 | $ 0 | $ 13,000 | ||
Percentage of sale of proved reserves representing significant alteration | 25% | ||||
Cost ceiling discount rate | 10% | ||||
Antidilutive securities excluded from EPS calculation | 343,090,759 | 288,070,151 |
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES (Details Narrative) a in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 USD ($) Number | Mar. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) a Number | Mar. 31, 2022 USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Number of leased federal outer continental shelf blocks | Number | 1 | 1 | ||
Acres of three-dimensional (3-D) seismic data | a | 2.2 | |||
Oil and Gas Properties [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities | $ | $ 0 | $ 0 | $ 0 | $ 60,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 6 Months Ended | 54 Months Ended | |||
Nov. 15, 2016 | Mar. 31, 2023 | Mar. 31, 2022 | Sep. 30, 2017 | Sep. 30, 2022 | |
Related Party Transaction [Line Items] | |||||
Debt Instrument, Face Amount | $ 327,000 | $ 227,000 | |||
Accrued interest payable | 152,281 | 138,020 | |||
Proceeds from issuance of convertible notes and warrants | 91,500 | ||||
Related party accounting services payable | 404,469 | 404,469 | |||
Accounting Service [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party accounting services payable | 346,000 | $ 346,000 | |||
Related party salary paid | 7,410 | 19,000 | |||
Convertible Notes Payable [Member] | Chief Executive Officer [Member] | |||||
Related Party Transaction [Line Items] | |||||
Debt Instrument, Face Amount | $ 8,675,500 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5% | ||||
Debt Conversion, Converted Instrument, Amount | $ 5,300,000 | ||||
Debt Instrument, Convertible, Conversion Price | $ 0.12 | ||||
Amount owed to related party | 8,675,500 | ||||
Accrued interest payable | 3,600,000 | $ 3,200,000 | |||
Notes Payable, Other Payables [Member] | Chief Executive Officer [Member] | |||||
Related Party Transaction [Line Items] | |||||
Debt Instrument, Face Amount | $ 193,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5% | ||||
Promissory Notes [Member] | Related Party [Member] | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from issuance of convertible notes and warrants | $ 50,000 |
The Company_s convertible promi
The Company’s convertible promissory notes consisted of the following as of September 30, 2022 and March 31, 2023. (Details) - USD ($) | Mar. 31, 2023 | Sep. 30, 2022 |
Short-Term Debt [Line Items] | ||
Notes | $ 327,000 | $ 227,000 |
Discount | (53,752) | |
Notes, Net of Discount | 273,248 | 227,000 |
Bridge Financing Notes [Member] | ||
Short-Term Debt [Line Items] | ||
Notes | 227,000 | 227,000 |
Notes, Net of Discount | 227,000 | $ 227,000 |
Convertible Debenture 2022 [Member] | ||
Short-Term Debt [Line Items] | ||
Notes | 100,000 | |
Discount | (53,752) | |
Notes, Net of Discount | $ 46,248 |
The fair value of the embedded
The fair value of the embedded conversion feature was determined utilizing a Geometric Brownian Motion Stock Path Based Monte Carlo Simulation that utilized the following key assumptions: (Details) | Mar. 31, 2023 $ / shares yr | Dec. 31, 2022 $ / shares yr | Dec. 05, 2022 $ / shares yr | Oct. 13, 2022 $ / shares yr |
Measurement Input, Share Price [Member] | Tranche 1 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Derivative Liability, Measurement Input | $ / shares | 0.0055 | 0.0045 | 0.0052 | |
Measurement Input, Share Price [Member] | Tranche 2 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Derivative Liability, Measurement Input | $ / shares | 0.0055 | 0.0045 | 0.0041 | |
Measurement Input, Price Volatility [Member] | Tranche 1 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Derivative Liability, Measurement Input | 1.8622 | 1.6803 | 1.5812 | |
Measurement Input, Price Volatility [Member] | Tranche 2 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Derivative Liability, Measurement Input | 1.8035 | 1.5949 | 1.5637 | |
Measurement Input, Expected Term [Member] | Tranche 1 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Derivative Liability, Measurement Input | yr | 0.52 | 0.77 | 0.98 | |
Measurement Input, Expected Term [Member] | Tranche 2 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Derivative Liability, Measurement Input | yr | 0.67 | 0.91 | 0.98 | |
Measurement Input, Risk Free Interest Rate [Member] | Tranche 1 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Derivative Liability, Measurement Input | 0.0464 | 0.0473 | 0.0446 | |
Measurement Input, Risk Free Interest Rate [Member] | Tranche 2 [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Derivative Liability, Measurement Input | 0.0464 | 0.0473 | 0.0477 |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details Narrative) | 1 Months Ended | 6 Months Ended | |||||
Dec. 05, 2022 USD ($) | Oct. 13, 2022 USD ($) | Apr. 30, 2022 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Nov. 30, 2016 USD ($) Number $ / shares | Sep. 30, 2022 USD ($) | |
Short-Term Debt [Line Items] | |||||||
Amortization of debt discount | $ 35,427 | $ 43,213 | |||||
Proceeds from notes payable | 91,500 | ||||||
Debt face amount | 327,000 | $ 227,000 | |||||
Bridge Financing Notes [Member] | |||||||
Short-Term Debt [Line Items] | |||||||
Number of convertible promissory notes issued | Number | 11 | ||||||
Proceeds from notes payable | $ 837,000 | ||||||
Maturity term | 1 year | ||||||
Debt maturity date | Apr. 30, 2024 | ||||||
Interest rate | 8% | ||||||
Conversion price (in dollars per share) | $ / shares | $ 0.025 | ||||||
Qualified equity financing amount | $ 3,000,000 | ||||||
Debt amount | 277,000 | $ 277,000 | |||||
Warrants maturity date | Apr. 30, 2024 | ||||||
Loss on extinguishment of debt | $ 85,000 | ||||||
Percentage of modified warrants incremental fair value | 10% | ||||||
Bridge Financing Notes [Member] | Related Parties [Member] | |||||||
Short-Term Debt [Line Items] | |||||||
Proceeds from notes payable | $ 222,000 | ||||||
Convertible Debentures [Member] | Securities Purchase Agreement [Member] | |||||||
Short-Term Debt [Line Items] | |||||||
Proceeds from notes payable | $ 45,000 | $ 55,000 | |||||
Interest rate | 8% | ||||||
Accrued interest payable | 3,000 | ||||||
Debt discount | $ 54,000 | ||||||
Percentage of variable conversion price | 65% | ||||||
Convertible Debentures [Member] | Securities Purchase Agreement [Member] | Maximum [Member] | |||||||
Short-Term Debt [Line Items] | |||||||
Debt face amount | $ 650,000 |
The following table sets forth
The following table sets forth by level within the fair value hierarchy the Company’s derivative financial instruments that were accounted for at fair value on a recurring basis as of September 30, 2022 and March 31, 2023, respectively: (Details) - Fair Value, Recurring [Member] - USD ($) | Mar. 31, 2023 | Sep. 30, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instrument | $ (1,084,182) | $ (959,222) |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instrument | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instrument | (1,084,182) | (959,222) |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instrument |
The change in derivative financ
The change in derivative financial instruments for the six months ended March 31, 2023 is as follows: (Details) - Fair Value, Recurring [Member] | 6 Months Ended |
Mar. 31, 2023 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Beginning balance | $ (959,222) |
Issuance of derivative financial instruments | (80,679) |
Derivative instruments converted/extinguished | |
Change in fair value | (44,281) |
Ending balance | $ (1,084,182) |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||||
Impairment charge of oil and natural gas property | $ 0 | $ 3,093,693 | $ 0 | $ 3,093,693 |
Stock-based compensation expense | $ 0 | $ 32,000 | $ 0 | $ 32,000 |
The following table summarizes
The following table summarizes the Company’s outstanding warrants at September 30, 2022 and March 31, 2023, respectively: (Details) - Warrant [Member] | 6 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Class of Warrant or Right [Line Items] | |
Warrants outstanding, beginning | shares | 64,665,000 |
Weighted average exercise price, beginning | $ / shares | $ 0.040 |
Warrants outstanding, beginning contractual term | 2 years 9 months 18 days |
Warrants expired | shares | 2,200,000 |
Warrants expired, weighted average exercise price | $ / shares | $ 0.100 |
Warrants outstanding, ending | shares | 62,465,000 |
Weighted average exercise price, ending | $ / shares | $ 0.023 |
Warrants outstanding, ending contractual term | 1 year 2 months 12 days |
The following table summarize_2
The following table summarizes the Company’s stock option activity at September 30, 2022 and for the six months ended March 31, 2023: (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Outstanding at beginning of period | 146,000,000 | |
Outstanding, weighted average exercise price, beginning | $ 0.044 | |
Outstanding, weighted average remaining contractual term | 2 years 3 months 18 days | 2 years 9 months 18 days |
Granted | ||
Granted, weighted average exercise price | ||
Exercised | ||
Exercised, weighted average exercise price | ||
Cancelled | ||
Cancelled, weighted average exercise price | ||
Outstanding at end of period | 146,000,000 | 146,000,000 |
Outstanding, weighted average exercise price, ending | $ 0.044 | $ 0.044 |
Exercisable at end of period | 146,000,000 | |
Exercisable at end of period, weighted average exercise price | $ 0.044 | |
Exercisable at end of period, weighted average remaining contractual term | 2 years 3 months 18 days |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Stock-based compensation expense | $ 0 | $ 32,000 | $ 0 | $ 32,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 1 Months Ended | ||
Aug. 31, 2018 | Mar. 31, 2023 | Sep. 30, 2022 | |
Loss Contingencies [Line Items] | |||
Debt face amount | $ 327,000 | $ 227,000 | |
Fair value liability | $ 800,000 | $ 800,000 | |
Vendor [Member] | |||
Loss Contingencies [Line Items] | |||
Debt face amount | $ 1,000,000 | ||
Repayment of debt | $ 158,000 | ||
Common Stock issued in settlement of debt (in shares) | 10,000,000 | ||
Vendor [Member] | Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Gain on sale of stock by vendor in excess | $ 1,300,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] shares in Millions | 1 Months Ended |
May 15, 2023 USD ($) shares | |
Convertible Debentures [Member] | |
Subsequent Event [Line Items] | |
Debt converted | $ 42,000 |
Shares issued upon conversion | shares | 18 |
Related Party [Member] | |
Subsequent Event [Line Items] | |
Proceeds from notes payable | $ 52,000 |